0000950123-14-010821.txt : 20141103 0000950123-14-010821.hdr.sgml : 20141103 20141103135932 ACCESSION NUMBER: 0000950123-14-010821 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 29 CONFORMED PERIOD OF REPORT: 20140831 FILED AS OF DATE: 20141103 DATE AS OF CHANGE: 20141103 EFFECTIVENESS DATE: 20141103 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB STRATEGIC TRUST CENTRAL INDEX KEY: 0001454889 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-22311 FILM NUMBER: 141188855 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 800-648-5300 MAIL ADDRESS: STREET 1: 211 MAIN STREET STREET 2: CHARLES SCHWAB INVESTMENT MANAGEMENT,INC CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: Schwab Strategic Trust DATE OF NAME CHANGE: 20090127 0001454889 S000026631 Schwab U.S. Broad Market ETF C000079978 Schwab U.S. Broad Market ETF SCHB 0001454889 S000026632 Schwab U.S. Large-Cap ETF C000079979 Schwab U.S. Large-Cap ETF SCHX 0001454889 S000026633 Schwab U.S. Large-Cap Growth ETF C000079980 Schwab U.S. Large-Cap Growth ETF SCHG 0001454889 S000026634 Schwab U.S. Large-Cap Value ETF C000079981 Schwab U.S. Large-Cap Value ETF SCHV 0001454889 S000026635 Schwab U.S. Mid-Cap ETF C000079982 Schwab U.S. Mid-Cap ETF SCHM 0001454889 S000026636 Schwab U.S. Small-Cap ETF C000079983 Schwab U.S. Small-Cap ETF SCHA 0001454889 S000026637 Schwab International Equity ETF C000079984 Schwab International Equity ETF SCHF 0001454889 S000026638 Schwab International Small-Cap Equity ETF C000079985 Schwab International Small-Cap Equity ETF SCHC 0001454889 S000026639 Schwab Emerging Markets Equity ETF C000079986 Schwab Emerging Markets Equity ETF SCHE 0001454889 S000034163 Schwab U.S. Dividend Equity ETF C000105320 Schwab U.S. Dividend Equity ETF SCHD N-CSR 1 f30270nvcsr.htm FORM N-CSR nvcsr
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22311
Schwab Strategic Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Marie Chandoha
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: August 31
Date of reporting period: August 31, 2014
 
 
Item 1: Report(s) to Shareholders.

 

Table of Contents

Annual report dated August 31, 2014, enclosed.
 
 
Schwab International Equity ETFs
 
Schwab International
Equity ETFtm
 
Schwab International Small-Cap
Equity ETFtm
 
Schwab Emerging Markets
Equity ETFtm
 
 
Go paperless today.
 
Simplify your financial life
by viewing these documents online.
Sign up at schwab.com/paperless
 
(SCHWAB ETF LOGO)

Table of Contents

 
This wrapper is not part of the shareholder report.

Table of Contents

 
Schwab International Equity ETFs
 
Annual Report
August 31, 2014
 
 
Schwab International
Equity ETFtm
 
Schwab International Small-Cap
Equity ETFtm
 
Schwab Emerging Markets
Equity ETFtm
 
 
(SCHWAB ETF LOGO)
 

Table of Contents

 
This page is intentionally left blank.
 

 

 
 
In This Report
 
 
 
 
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co.
 
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co, Inc.
 

Table of Contents

 
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 Returns for the 12 Months Ended August 31, 2014   
   
Schwab International Equity ETFtm (Ticker Symbol: SCHF)        
 
 
Market Price Return1
    17.07%  
NAV Return1
    16.86% **
FTSE Developed ex-US Index (Net)*     16.84%  
ETF Category: Morningstar Foreign Large Blend2     18.60%  
 
 
Performance Details     pages 6-7  
 
 
 
Schwab International Small-Cap Equity ETFtm (Ticker Symbol: SCHC)        
 
 
Market Price Return1
    19.50%  
NAV Return1
    19.84%  
FTSE Developed Small Cap ex-US Liquid Index (Net)*     20.65%  
ETF Category: Morningstar Foreign Small/Mid Blend2     19.24%  
 
 
Performance Details     pages 8-9  
 
 
 
Schwab Emerging Markets Equity ETFtm (Ticker Symbol: SCHE)        
 
 
Market Price Return1
    24.21%  
NAV Return1
    22.31%  
FTSE Emerging Index (Net)*     22.29%  
ETF Category: Morningstar Diversified Emerging Markets2     18.29%  
 
 
Performance Details     pages 10-11  
 
 
 
 
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.
 
For index definitions, please see the Glossary.
 
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
 
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 — “FTSE®” is a trademark owned by the London Stock Exchange Group companies and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.
 
* The total returns cited are for the FTSE Developed ex-US Index (Net), the FTSE Developed Small Cap ex-US Liquid Index (Net), and the FTSE Emerging Index (Net), which are calculated net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
** Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
1 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
2 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
 
 
 
2 Schwab International Equity ETFs

Table of Contents

 
From the President
 

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

 
Dear Shareholder,
 
I’d like to thank you for trusting us to help you meet your investment goals, and for reading this annual report regarding the Schwab International Equity ETFs. These funds are part of our line-up of products that is designed to serve as the foundation of an investor’s portfolio. The funds track international stock indices constructed by industry-leading index providers, and offer the benefits of ETF investing, including transparency, intraday trading, and potential tax efficiency, at some of the lowest operating expense ratios in the industry.
 
For the 12-month reporting period ended August 31, 2014, the funds generated double-digit returns that generally tracked their respective indices. Efforts by many of the world’s central banks to stimulate economic growth by keeping short-term interest rates low supported these results, making financing more affordable for businesses and households. This was particularly true in Europe and Japan, where the European Central Bank and Bank of Japan kept interest rates at extremely low levels.
 
Stocks in emerging markets outperformed developed international markets overall, but both markets performed well in U.S. dollar terms. Some signs of stabilizing economic conditions among select emerging markets helped, as did relatively attractive stock valuations, and the continuation of low U.S. interest rates. By comparison, Russian stocks

 Asset Class Performance Comparison % returns during the 12 months ended 8/31/2014
 
This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.
         
         
(LEGEND)   25.25%   S&P 500® Index: measures U.S. large-cap stocks
         
(LEGEND)   17.68%   Russell 2000® Index: measures U.S. small-cap stocks
         
(LEGEND)   16.43%   MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
         
(LEGEND)   5.66%   Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
         
(LEGEND)   0.03%   Barclays U.S. Treasury Bills 1—3 Months Index: measures short-term U.S. Treasury obligations
 
(LINE GRAPH)
 
For index definitions, please see the Glossary.
 
Data source: Index provider websites and Charles Schwab Investment Management, Inc.
 
Nothing in this report represents a recommendation of a security by the investment adviser.
 
Management views and portfolio holdings may have changed since the report date.

 
 
 
Schwab International Equity ETFs 3

Table of Contents

 
From the President continued
 

For the 12-month reporting period ended August 31, 2014, the funds generated double-digit returns that generally tracked their respective indices.

struggled amid geopolitical tensions in the region, increasing market volatility and reducing returns.1 Reflecting these conditions, the FTSE Emerging Index returned 22.3%, and the FTSE Developed ex-U.S. Index returned 16.8%.2 Currency fluctuations played a role in these results, with emerging market currencies in particular generally strengthening versus the U.S. dollar, enhancing returns in U.S. dollar terms.
 
For more information about the Schwab International Equity 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, or by contacting us at 1-800-435-4000.
 
Sincerely,
 
-s- Marie Chandoha

1 To find out more information, please read “Investments in Russian Securities” in the “News & Events” section on www.schwabetfs.com.
2 The total returns cited for the FTSE Developed ex-U.S. Index and the FTSE Emerging Index are net of foreign withholding taxes.

 
Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested. Past performance is not an indication of future results.

 
 
 
4 Schwab International Equity ETFs

Table of Contents

 
Fund Management
 
     
     
(PHOTO)   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.
     
(PHOTO)   Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.
     
(PHOTO)   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.
 
 
 
Schwab International Equity ETFs 5

Table of Contents

 
Schwab International Equity ETF™
 
 
The Schwab International Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed ex-US Index (the index). The index is comprised of large and mid capitalization companies in developed countries outside the U.S., as defined by the index provider. The index defines the large and mid capitalization universe as approximately the top 90% of the eligible universe. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 17.07% and its NAV return was 16.86% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 16.84%* during the same period.
 
Market Highlights. Large-cap international stocks generated positive returns for the 12-month reporting period, despite a hesitant recovery in the euro zone and heightened geopolitical tensions. Efforts by the European Central Bank to stimulate economic growth helped, with some pockets of improvement emerging. In addition, many foreign currencies appreciated versus the U.S. dollar, increasing the returns of overseas equities in U.S. dollar terms.
 
Contributors and Detractors. Stocks from the United Kingdom were among the biggest contributors to the returns of both the index and the fund. United Kingdom companies represented an average weight of approximately 17% of the fund and returned roughly 17% in U.S. dollar terms. One example from this market is AstraZeneca plc, a company that researches, manufactures, and sells pharmaceutical and medical products. The fund’s holdings of AstraZeneca plc represented one of the fund’s largest positions in the United Kingdom and returned approximately 61%.
 
Japanese stocks also provided meaningful contributions to the returns of the index and the fund. Stocks from Japan represented an average weight of 19% of the fund and returned roughly 11% in U.S. dollar terms. One example from this market is Astellas Pharma, Inc., a pharmaceutical company committed to the therapeutic fields of urology, immunology, oncology, neuroscience and diabetes complications, and metabolic diseases. The fund’s holdings of Astellas Pharma, Inc. returned approximately 44%.
 
Austrian stocks were among the biggest detractors from the returns generated by the index and the fund. Austrian companies represented an average weight of less than 1% of the fund and returned roughly -5% in U.S. dollar terms. One example from this market is Erste Group Bank AG, a universal bank. The fund’s holdings of Erste Group Bank AG returned approximately -19%.
 
Stocks from Portugal also detracted from the performance of the index and the fund. Portuguese stocks represented an average weight of less than 1% of the fund and returned roughly -1% in U.S. dollar terms. Banco Espirito Santo, S.A., a company that provides commercial and investment banking services, is one example from this market. The fund’s holdings of Banco Espirito Santo, S.A. detracted from performance and returned approximately -83%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    1,170  
Weighted Average Market Cap ($ x 1,000,000)
    $61,775  
Price/Earnings Ratio (P/E)
    18.0  
Price/Book Ratio (P/B)
    1.6  
Portfolio Turnover Rate1
    7%  
 
 Sector Weightings % of Investments
         
Financials
    26.1%  
Industrials
    12.6%  
Consumer Discretionary
    11.4%  
Consumer Staples
    10.1%  
Health Care
    9.6%  
Materials
    8.6%  
Energy
    8.2%  
Information Technology
    5.4%  
Telecommunication Services
    4.3%  
Utilities
    3.4%  
Other
    0.3%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Nestle S.A. – Reg’d
    1.5%  
Novartis AG – Reg’d
    1.3%  
HSBC Holdings plc
    1.3%  
Roche Holding AG
    1.3%  
Royal Dutch Shell plc, A Shares
    1.0%  
Toyota Motor Corp.
    0.9%  
BP plc
    0.9%  
Total S.A.
    0.8%  
Samsung Electronics Co., Ltd. GDR – Reg’d
    0.8%  
Sanofi
    0.8%  
Total
    10.6%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
* The total return cited for the FTSE Developed ex-US Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
6 Schwab International Equity ETFs

Table of Contents

 
 Schwab International Equity ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
November 3, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception**
 
 
Fund: Schwab International Equity ETFtm (11/3/09)
                        
Market Price Return2
    17.07 %       10.58 %     8.04%
NAV Return2
    16.86 % *     10.57 %     8.02%
FTSE Developed ex-US Index (Net)3
    16.84 %       10.55 %     8.12%
ETF Category: Morningstar Foreign Large Blend4
    18.60 %       10.10 %     8.22%
 
Fund Expense Ratio5: 0.08%
 
 Country Weightings % of Investments
         
Japan
    18.9%  
United Kingdom
    18.5%  
Canada
    8.5%  
France
    7.9%  
Switzerland
    7.7%  
Germany
    7.4%  
Australia
    7.2%  
Republic of Korea
    4.0%  
Hong Kong
    3.1%  
Spain
    3.0%  
Other Countries
    13.8%  
Total
    100.0%  
 
 
 
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.
 
For index definitions, please see the Glossary.
 
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.
 
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 — “FTSE®” is a trademark owned by the London Stock Exchange Group companies and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.
 
* Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the NAV at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semi-annual reports.
** Inception (11/3/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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 The total return cited for the FTSE Developed ex-US Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
4 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.
5 As stated in the prospectus.
 
 
 
Schwab International Equity ETFs 7

Table of Contents

 
Schwab International Small-Cap Equity ETF™
 
 
The Schwab International Small-Cap Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex-US Liquid Index (the index). The index is comprised of small capitalization companies in developed countries outside the U.S., as defined by the index provider. The index defines the small capitalization universe as approximately the bottom 10% of the eligible universe with a minimum free-float capitalization of $150 million. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund generally tracked the index. The fund’s market price return was 19.50% and its NAV return was 19.84% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 20.65%* during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the operational and transactional costs incurred by the fund and not the index. The additional performance difference is attributable primarily to optimization of the fund’s holdings and cash drag from the fund’s cash and accruals.
 
Market Highlights. Small-cap international stocks generated positive returns for the 12-month reporting period, despite a hesitant recovery in the euro zone and heightened geopolitical tensions. Efforts by the European Central Bank to stimulate economic growth helped, with some pockets of improvement emerging. In addition, many foreign currencies appreciated versus the U.S. dollar, increasing the returns of overseas equities in U.S. dollar terms.
 
Contributors and Detractors. United Kingdom stocks were the top contributors to the performances of the index and the fund. Shares of United Kingdom companies represented an average weight of approximately 21% and returned roughly 20% for the fund in U.S. dollar terms. One example from this market is Ashtead Group plc, an international equipment rental company servicing customers in the U.S. and United Kingdom. The fund’s holdings of Ashtead Group plc returned approximately 53%.
 
Canadian stocks also provided meaningful contributions to the returns of the index and the fund. Stocks from Canada represented an average weight of 17% of the fund and returned roughly 24% in U.S. dollar terms. One example from this market is Keyera Corp., an independent natural gas and natural gas liquids midstream company that operates in western Canada. The fund’s holdings of Keyera Corp. returned approximately 67%.
 
Stocks from Israel also generated positive returns for the 12-month reporting period, but represented the smallest contribution to the overall returns of the index and the fund. Israeli stocks represented an average weight of less than 1% of the fund and returned approximately 2% in U.S. dollar terms. One example from this market is Mazor Robotics Ltd., a developer of surgical robots and complementing products. Despite this market’s positive returns, the fund’s holdings of Mazor Robotics Ltd. detracted from performance and returned approximately -44%.
 
Hong Kong stocks generated positive returns for the index and the fund, but were also among the smallest contributors to performance. Stocks from Hong Kong represented an average weight of almost 2% of the fund and returned roughly 4% in U.S. dollar terms. Sa Sa International Holdings Ltd., a cosmetic retailer and wholesaler, is one example from this market. The fund’s holdings of Sa Sa International Holdings Ltd. detracted from performance and returned approximately -17%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    1,413  
Weighted Average Market Cap ($ x 1,000,000)
    $2,491  
Price/Earnings Ratio (P/E)
    25.0  
Price/Book Ratio (P/B)
    1.6  
Portfolio Turnover Rate1
    16%  
 
 Sector Weightings % of Investments
         
Financials
    20.6%  
Industrials
    20.3%  
Consumer Discretionary
    16.2%  
Materials
    9.6%  
Energy
    9.5%  
Information Technology
    8.5%  
Health Care
    5.8%  
Consumer Staples
    4.8%  
Utilities
    2.5%  
Telecommunication Services
    1.4%  
Other
    0.8%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Tourmaline Oil Corp.
    0.5%  
Keyera Corp.
    0.4%  
Gildan Activewear, Inc.
    0.4%  
Methanex Corp.
    0.4%  
Open Text Corp.
    0.4%  
Baytex Energy Corp.
    0.4%  
Vermillion Energy, Inc.
    0.4%  
Banca Monte dei Paschi di Siena S.p.A.
    0.4%  
Onex Corp.
    0.3%  
AltaGas Ltd.
    0.3%  
Total
    3.9%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
* The total return cited for the FTSE Developed Small Cap ex-US Liquid Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
8 Schwab International Equity ETFs

Table of Contents

 
 Schwab International Small-Cap Equity ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
January 14, 2010 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab International Small-Cap Equity ETFtm (1/14/10)
                        
Market Price Return2
    19.50 %       10.33 %     9.21%
NAV Return2
    19.84 %       10.06 %     9.15%
FTSE Developed Small Cap ex-US Liquid Index (Net)3
    20.65 %       10.20 %     9.42%
ETF Category: Morningstar Foreign Small/Mid Blend4
    19.24 %       10.78 %     9.15%
 
Fund Expense Ratio5: 0.19%
 
 Country Weightings % of Investments
         
United Kingdom
    19.7%  
Canada
    18.0%  
Japan
    15.0%  
Australia
    5.3%  
Republic of Korea
    4.8%  
Germany
    4.5%  
Italy
    3.7%  
Switzerland
    3.5%  
Sweden
    3.4%  
France
    3.2%  
Other Countries
    18.9%  
Total
    100.0%  
 
 
 
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.
 
For index definitions, please see the Glossary.
 
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.
 
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.
 
Investments in smaller companies typically exhibit higher volatility.
 
Index ownership — “FTSE®” is a trademark owned by the London Stock Exchange Group companies and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.
 
* Inception (1/14/10) 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 ETF performance must be shown based on both a market price and NAV basis. 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 The total return cited for the FTSE Developed Small Cap ex-US Liquid Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
4 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.
5 As stated in the prospectus.
 
 
 
Schwab International Equity ETFs 9

Table of Contents

 
Schwab Emerging Markets Equity ETF™
 
 
The Schwab Emerging Markets Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the FTSE Emerging Index (the index). The index is comprised of the large and mid capitalization companies in emerging market countries, as defined by the index provider. The index defines the large and mid capitalization universe as approximately the top 90% of the eligible universe. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities included in the index.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 24.21% and its NAV return was 22.31% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 22.29%* during the same period.
 
Market Highlights. Emerging markets generated positive overall returns for the 12-month reporting period. Unexpectedly steady economic growth and an acceleration in manufacturing activity in many countries helped select markets overcome geopolitical tensions. In addition, high-profile elections in countries such as India and Indonesia helped to generate confidence in some emerging market economies, contributing positively to returns, as did the U.S. Federal Reserve’s decision to keep short-term interest rates low for the time being.
 
Contributors and Detractors. Stocks from India contributed the most to the returns generated by both the index and the fund. Indian stocks represented approximately 10% of the fund and returned roughly 59% in U.S. dollar terms. One example from this market is India’s Housing Development Finance Corp. (HDFC), which provides long-term housing loans to low and middle income individuals, and to corporations. The fund’s holdings of HDFC returned approximately 65%.
 
Brazilian stocks also provided meaningful contributions to the returns of the index and the fund. Stocks from Brazil represented an average weight of 13% of the fund and returned roughly 32% in U.S. dollar terms. One example from this market is Itaú Unibanco Holding S.A., a company that attracts deposits and offers retail, commercial, corporate, and private banking services. The fund’s holdings of sponsored American depositary receipts representing preferred stock of Itaú Unibanco Holding S.A. returned approximately 68%.
 
Russian stocks were among the few detractors from the returns of the index and the fund. Stocks from Russia represented an average weight of approximately 6% of the fund and returned roughly -4% in U.S. dollar terms. One example from this market is sponsored American depositary receipts of Sberbank Russia, a Russian commercial banking and financial services provider. The fund’s holdings of Sberbank Russia returned approximately -20%.
 
Stocks from Chile also detracted from the performance of the index and the fund. Chilean stocks represented an average weight of almost 2% of the fund and returned roughly -4% in U.S. dollar terms. Cencosud S.A., a multi-brand retailer in South America, is one example from this market. The fund’s holdings of Cencosud S.A. detracted more from performance for the 12-month reporting period than any other position within this market and returned approximately -25%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    669  
Weighted Average Market Cap ($ x 1,000,000)
    $43,935  
Price/Earnings Ratio (P/E)
    14.0  
Price/Book Ratio (P/B)
    1.7  
Portfolio Turnover Rate1
    9%  
 
 Sector Weightings % of Investments
         
Financials
    29.3%  
Information Technology
    12.4%  
Energy
    12.5%  
Materials
    8.9%  
Consumer Staples
    8.4%  
Telecommunication Services
    8.3%  
Consumer Discretionary
    7.2%  
Industrials
    6.0%  
Utilities
    3.8%  
Health Care
    2.1%  
Other
    1.1%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Taiwan Semiconductor Manufacturing Co., Ltd. ADR
    2.7%  
Tencent Holdings Ltd.
    2.0%  
China Mobile Ltd.
    1.7%  
China Construction Bank Corp., H Shares
    1.4%  
Naspers Ltd., N Shares
    1.3%  
Itau Unibanco Holding S.A. ADR
    1.3%  
Industrial & Commercial Bank of China Ltd., H Shares
    1.3%  
Petroleo Brasileiro S.A., Preferred Stock
    1.2%  
Hon Hai Precision Industry, Co., Ltd.
    1.1%  
Gazprom OAO ADR
    1.1%  
Total
    15.1%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
* The total return cited for the FTSE Emerging Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
10 Schwab International Equity ETFs

Table of Contents

 
 Schwab Emerging Markets Equity ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
January 14, 2010 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab Emerging Markets Equity ETFtm (1/14/10)
                        
Market Price Return2
    24.21 %       4.07 %     3.86%
NAV Return2
    22.31 %       4.06 %     3.79%
FTSE Emerging Index (Net)3
    22.29 %       4.31 %     4.12%
ETF Category: Morningstar Diversified Emerging Markets4
    18.29 %       2.92 %     2.85%
 
Fund Expense Ratio5: 0.14%
 
 Country Weightings % of Investments
         
China
    20.9%  
Brazil
    14.1%  
Taiwan
    13.3%  
India
    10.4%  
South Africa
    9.3%  
Mexico
    5.9%  
Malaysia
    4.8%  
Russia
    4.5%  
Thailand
    3.1%  
Indonesia
    2.7%  
Other Countries
    11.0%  
Total
    100.0%  
 
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.
 
For index definitions, please see the Glossary.
 
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.
 
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.
 
Emerging markets involve heightened risks related to the same factors as international investing, as well as increased volatility and lower trading volume.
 
Index ownership — “FTSE®” is a trademark owned by the London Stock Exchange Group companies and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.
 
* Inception (1/14/10) 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 ETF performance must be shown based on both a market price and NAV basis. 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 The total return cited for the FTSE Emerging Index is net of foreign withholding taxes; the underlying tax rate information is available from FTSE.
4 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.
5 As stated in the prospectus.
 
 
 
Schwab International Equity ETFs 11

Table of Contents

 
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. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2014 and held through August 31, 2014.
 
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 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 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 3/1/14   at 8/31/14   3/1/14–8/31/14
 
Schwab International Equity ETFtm                                
Actual Return
    0.08%     $ 1,000.00     $ 1,027.30     $ 0.41  
Hypothetical 5% Return
    0.08%     $ 1,000.00     $ 1,024.80     $ 0.41  
 
Schwab International Small-Cap Equity ETFtm                                
Actual Return
    0.19%     $ 1,000.00     $ 1,006.30     $ 0.96  
Hypothetical 5% Return
    0.19%     $ 1,000.00     $ 1,024.25     $ 0.97  
 
Schwab Emerging Markets Equity ETFtm                                
Actual Return
    0.14%     $ 1,000.00     $ 1,172.40     $ 0.77  
Hypothetical 5% Return
    0.14%     $ 1,000.00     $ 1,024.50     $ 0.71  
 
 
1 Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights which covers a 12-month period.
2 Expenses for each 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.
 
 
 
12 Schwab International Equity ETFs

Table of Contents

Schwab International Equity ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  10/30/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    28.32       24.96       25.99       23.82       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.88       0.66       0.76       0.68       0.38      
Net realized and unrealized gains (losses)
    3.87       3.42       (1.04 )     1.96 2     (1.52 )    
   
Total from investment operations
    4.75       4.08       (0.28 )     2.64       (1.14 )    
Less distributions:
                                           
Distributions from net investment income
    (0.70 )     (0.72 )     (0.75 )     (0.47 )     (0.04 )    
   
Net asset value at end of period
    32.37       28.32       24.96       25.99       23.82      
   
Total return (%)
    16.90       16.55       (0.75 )     11.04       (4.57 )3    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.09 4     0.09       0.13       0.13       0.14 5,6    
Net investment income (loss)
    3.44       3.03       3.40       3.10       2.94 5    
Portfolio turnover rate7
    7       9       8       6       6 3    
Net assets, end of period ($ x 1,000)
    2,654,016       1,464,105       768,666       634,208       285,869      

1 Commencement of operations.
2 The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3 Not annualized.
4 Effective April 18, 2014, the annual operating expense ratio was reduced to 0.08%. The ratio presented for period ended 8/31/14 is a blended ratio.
5 Annualized.
6 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
7 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 13

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .1%   Common Stock     2,325,188,864       2,631,180,543  
  0 .3%   Other Investment Companies     7,427,616       7,427,616  
  0 .4%   Preferred Stock     9,451,515       10,886,677  
  0 .0%   Rights     —       85,210  
  0 .0%   Short-Term Investments     307,998       307,998  
 
 
  99 .8%   Total Investments     2,342,375,993       2,649,888,044  
  0 .2%   Other Assets andLiabilities, Net             4,127,948  
 
 
  100 .0%   Net Assets             2,654,015,992  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.1% of net assets
 
Australia 7.2%
Australia & New Zealand Banking Group Ltd.
    447,720       0.5       13,998,892  
BHP Billiton Ltd.
    512,500       0.7       17,577,438  
Commonwealth Bank of Australia
    268,163       0.8       20,396,095  
National Australia Bank Ltd.
    373,920       0.5       12,310,400  
Westpac Banking Corp.
    518,721       0.6       16,999,992  
Other Securities
            4.1       109,531,961  
                         
              7.2       190,814,778  
 
Austria 0.2%
Other Securities
            0.2       5,731,430  
 
Belgium 1.0%
Anheuser-Busch InBev N.V.
    126,523       0.5       14,090,776  
Other Securities
            0.5       12,989,411  
                         
              1.0       27,080,187  
 
Canada 8.5%
Royal Bank of Canada
    239,480       0.7       17,831,574  
The Bank of Nova Scotia
    199,260       0.5       13,233,179  
The Toronto-Dominion Bank
    328,000       0.7       17,310,901  
Other Securities
            6.6       176,116,837  
                         
              8.5       224,492,491  
 
Denmark 1.3%
Novo Nordisk A/S, B Shares
    319,825       0.6       14,645,711  
Other Securities
            0.7       19,908,186  
                         
              1.3       34,553,897  
 
Finland 0.7%
Other Securities
            0.7       19,573,392  
 
France 7.9%
BNP Paribas S.A.
    164,820       0.4       11,154,646  
Sanofi
    187,780       0.8       20,653,213  
Total S.A.
    333,740       0.8       22,063,645  
Other Securities
            5.9       156,721,485  
                         
              7.9       210,592,989  
 
Germany 7.0%
Allianz SE - Reg’d
    73,800       0.5       12,617,777  
BASF SE
    153,340       0.6       15,812,974  
Bayer AG - Reg’d
    135,340       0.7       18,192,442  
Daimler AG - Reg’d
    164,040       0.5       13,448,417  
SAP SE
    146,994       0.4       11,462,336  
Siemens AG - Reg’d
    127,920       0.6       16,064,433  
Other Securities
            3.7       97,044,343  
                         
              7.0       184,642,722  
 
Greece 0.1%
Other Securities
            0.1       2,291,196  
 
Hong Kong 3.1%
AIA Group Ltd.
    1,992,200       0.4       10,873,346  
Other Securities
            2.7       72,437,606  
                         
              3.1       83,310,952  
 
Ireland 0.2%
Other Securities
            0.2       5,293,614  
 
Israel 0.5%
Other Securities
            0.5       14,240,715  
 
Italy 2.1%
Eni S.p.A.
    403,440       0.4       10,086,186  
Other Securities
            1.7       44,979,016  
                         
              2.1       55,065,202  
 
Japan 18.9%
Honda Motor Co., Ltd.
    286,900       0.4       9,701,879  
Mitsubishi UFJ Financial Group, Inc.
    2,386,500       0.5       13,742,160  
SoftBank Corp.
    152,400       0.4       11,011,353  
Toyota Motor Corp.
    436,970       0.9       24,934,862  
Other Securities
            16.7       442,035,369  
                         
              18.9       501,425,623  
 
 
 
14 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
Netherlands 2.4%
Unilever N.V. CVA
    264,905       0.4       11,038,494  
Other Securities
            2.0       52,492,993  
                         
              2.4       63,531,487  
 
New Zealand 0.2%
Other Securities
            0.2       4,407,819  
 
Norway 0.7%
Other Securities
            0.7       19,204,019  
 
Portugal 0.1%
Other Securities
            0.1       3,948,133  
 
Republic of Korea 4.0%
Samsung Electronics Co., Ltd. GDR - Reg’d
    34,879       0.8       21,241,311  
Other Securities
            3.2       84,204,731  
                         
              4.0       105,446,042  
 
Singapore 1.3%
Other Securities
            1.3       34,362,523  
 
Spain 3.0%
Banco Bilbao Vizcaya Argentaria S.A.
    927,420       0.4       11,250,916  
Banco Santander S.A.
    1,951,600       0.7       19,511,219  
Telefonica S.A.
    657,797       0.4       10,458,056  
Other Securities
            1.5       39,384,850  
                         
              3.0       80,605,041  
 
Sweden 2.5%
Other Securities
            2.5       67,051,506  
 
Switzerland 7.7%
Nestle S.A. - Reg’d
    521,520       1.5       40,572,474  
Novartis AG - Reg’d
    389,500       1.3       35,022,465  
Roche Holding AG
    114,800       1.3       33,555,670  
UBS AG - Reg’d *
    625,830       0.4       11,247,652  
Other Securities
            3.2       83,148,577  
                         
              7.7       203,546,838  
 
United Kingdom 18.5%
AstraZeneca plc
    205,965       0.6       15,621,704  
BG Group plc
    549,485       0.4       10,964,367  
BHP Billiton plc
    357,520       0.4       11,325,799  
BP plc
    3,094,680       0.9       24,754,336  
British American Tobacco plc
    295,282       0.7       17,425,982  
Diageo plc
    410,000       0.5       12,089,504  
GlaxoSmithKline plc
    778,535       0.7       19,064,564  
Glencore plc *
    1,636,733       0.4       9,850,766  
HSBC Holdings plc
    3,163,560       1.3       34,255,289  
Lloyds Banking Group plc *
    8,849,440       0.4       11,209,171  
Prudential plc
    464,220       0.4       11,178,816  
Reckitt Benckiser Group plc
    114,800       0.4       10,009,333  
Rio Tinto plc
    213,552       0.4       11,396,878  
Royal Dutch Shell plc, A Shares
    630,981       1.0       25,547,826  
Royal Dutch Shell plc, B Shares
    404,370       0.6       17,094,484  
Vodafone Group plc
    4,404,710       0.6       15,124,005  
Other Securities
            8.8       233,055,123  
                         
              18.5       489,967,947  
                         
Total Common Stock
(Cost $2,325,188,864)     2,631,180,543  
         
                         
                         
 
 Other Investment Companies 0.3% of net assets
 
United States 0.3%
Money Market Fund 0.3%
Other Securities
            0.3       6,727,585  
 
Securities Lending Collateral 0.0%
Other Securities
            0.0       700,031  
                         
Total Other Investment Companies
(Cost $7,427,616)     7,427,616  
         
                         
                         
 
 Preferred Stock 0.4% of net assets
 
Germany 0.4%
Other Securities
            0.4       10,886,677  
                         
Total Preferred Stock
(Cost $9,451,515)     10,886,677  
         
                         
                         
 
 Rights 0.0% of net assets
 
Singapore 0.0%
Other Securities
            0.0       85,210  
                         
Total Rights
(Cost $—)     85,210  
         
                         
                         
Security
  Face Amount
 		  % of Net
 		  Value
Rate, Maturity Date   ($)   Assets   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
Other Securities
            0.0       307,998  
                         
Total Short-Term Investment
(Cost $307,998)     307,998  
         
 
End of Investments.
 
 
 
See financial notes 15

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,350,253,453 and the unrealized appreciation and depreciation were $359,525,332 and ($59,890,741), respectively, with a net unrealized appreciation of $299,634,591.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $658,392.
(b) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c) Illiquid security. At the period end, the value of these amounted to $302,948 or 0.0% of net assets.
(d) The rate shown is the 7-day yield.
(e) The rate shown is the purchase yield.
(f) All or a portion of this security is held as collateral for open futures contracts.
 
     
ADR —
  American Depositary Receipt
CDI —
  CHESS Depositary Interest
CVA —
  Dutch Certificate
ETF —
  Exchange Traded Fund
GDR —
  Global Depositary Receipt
Reg’d —
  Registered
REIT —
  Real Estate Investment Trust
RSP —
  Risparmio (Convertible Savings Shares)
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
MSCI EAFE, e-mini, Long, expires 09/19/14
    20       1,920,800       45,664  
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $2,547,869,591       $—       $—       $2,547,869,591  
Hong Kong1
    67,960,280       —       —       67,960,280  
Banks
    6,448,443       —       217,738       6,666,181  
Capital Goods
    8,570,938       —       113,553       8,684,491  
Other Investment Companies1
    7,427,616       —       —       7,427,616  
Preferred Stock1
    10,886,677       —       —       10,886,677  
Rights1
                               
Singapore1
    —       —       85,210       85,210  
Short-Term Investments1
    —       307,998       —       307,998  
                                 
Total
    $2,649,163,545       $307,998       $416,501       $2,649,888,044  
                                 
Other Financial Instruments
                               
Futures Contracts2
    $45,664       $—       $—       $45,664  
 
     
1
  As categorized in the complete schedule of portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    August 31,
 		  Gains
 		  Appreciation
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  August 31,
Investments in Securities
 
2013
 
(Losses)
 
(Depreciation)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Common Stock
                                                               
Hong Kong
    $467       ($9 )     ($36,531 )     $370,484       ($3,120 )     $—       $—       $331,291  
Portgual
    —       —       (732,419 )     617,020       —       115,399       —       —  
Rights
                                                               
Italy
    44       —       (44 )     —       —       —       —       —  
Singapore
    —       —       85,210       —       —       —       —       85,210  
                                                                 
Total
    $511       ($9 )     ($683,784 )     $987,504       ($3,120 )     $115,399       $—       $416,501  
                                                                 
 
 
 
16 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
All net realized and change in unrealized gains (losses) in the tables above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 investments held by the fund at August 31, 2014 was ($486,307).
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were transfers out of Level 1 to Level 3 due to the result of fair valued securities for which no quoted value was available. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2014.
 
 
 
See financial notes 17

Table of Contents

 
 Schwab International Equity ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $2,341,675,962) including securities on loan of $658,392
        $2,649,188,013  
Collateral invested for securities on loan, at value (cost $700,031)
  +     700,031  
   
Total investments, at value (cost $2,342,375,993)
        2,649,888,044  
Foreign currency, at value (cost $3,804,260)
        3,807,909  
Receivables:
           
Fund shares sold
        18,576,387  
Dividends
        6,000,199  
Foreign tax reclaims
        1,492,439  
Income from securities on loan
  +     2,573  
   
Total assets
        2,679,767,551  
 
Liabilities
Collateral held for securities on loan
        700,031  
Payables:
           
Investments bought
        23,684,636  
Investment adviser fees
        34,646  
Due to custodian
        1,331,746  
Variation margin on futures contracts
  +     500  
   
Total liabilities
        25,751,559  
 
Net Assets
Total assets
        2,679,767,551  
Total liabilities
  −     25,751,559  
   
Net assets
        $2,654,015,992  
 
Net Assets by Source
Capital received from investors
        2,339,089,534  
Net investment income not yet distributed
        55,410,148  
Net realized capital losses
        (47,994,462 )
Net unrealized capital appreciation
        307,510,772  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$2,654,015,992
      82,000,000         $32.37      
 
 
 
18 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends (net of foreign withholding tax of $5,543,069)
        $72,728,251  
Interest
        125,404  
Securities on loan
  +     505,357  
   
Total investment income
        73,359,012  
 
Expenses
Investment adviser fees
        1,784,166  
   
Total expenses
  −     1,784,166  
   
Net investment income
        71,574,846  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments
        (9,169,600 )
Net realized gains on futures contracts
        4,519  
Net realized gains on foreign currency transactions
  +     56,450  
   
Net realized losses
        (9,108,631 )
Net change in unrealized appreciation (depreciation) on investments
        217,566,568  
Net change in unrealized appreciation (depreciation) on futures contracts
        45,664  
Net change in unrealized appreciation (depreciation) on foreign currency translations
  +     (12,996 )
   
Net change in unrealized appreciation (depreciation)
  +     217,599,236  
   
Net realized and unrealized gains
        208,490,605  
             
Increase in net assets resulting from operations
        $280,065,451  
 
 
 
See financial notes 19

Table of Contents

 
 Schwab International Equity ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $71,574,846       $34,368,378  
Net realized losses
        (9,108,631 )     (10,635,508 )
Net change in unrealized appreciation (depreciation)
  +     217,599,236       116,473,721  
   
Increase in net assets resulting from operations
        280,065,451       140,206,591  
 
Distributions to Shareholders
Distributions from net investment income
        ($41,541,200 )     ($26,201,560 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        30,300,000       $951,386,985       21,400,000       $595,025,541  
Shares redeemed
  +     —       —       (500,000 )     (13,592,136 )
   
Net transactions in fund shares
        30,300,000       $951,386,985       20,900,000       $581,433,405  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        51,700,000       $1,464,104,756       30,800,000       $768,666,320  
Total increase
  +     30,300,000       1,189,911,236       20,900,000       695,438,436  
   
End of period
        82,000,000       $2,654,015,992       51,700,000       $1,464,104,756  
   
                                     
Net investment income not yet distributed
                $55,410,148               $25,144,598  
 
 
 
20 See financial notes

Table of Contents

Schwab International Small-Cap Equity ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  1/13/101–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    28.61       24.94       27.48       23.54       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.71       0.76       0.67       0.72       0.21      
Net realized and unrealized gains (losses)
    4.90       3.72       (2.39 )     3.88       (1.67 )    
   
Total from investment operations
    5.61       4.48       (1.72 )     4.60       (1.46 )    
Less distributions:
                                           
Distributions from net investment income
    (0.90 )     (0.81 )     (0.82 )     (0.66 )     —      
   
Net asset value at end of period
    33.32       28.61       24.94       27.48       23.54      
   
Total return (%)
    19.84       18.23       (5.91 )     19.52       (5.84 )2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.19       0.21 3     0.35       0.35       0.35 4    
Net investment income (loss)
    2.21       2.86       2.65       2.46       2.18 4    
Portfolio turnover rate5
    16       20       25       18       7 2    
Net assets, end of period ($ x 1,000)
    403,229       280,422       159,610       162,139       58,848      

1 Commencement of operations.
2 Not annualized.
3 Effective September 20, 2012, the annual operating expense ratio was reduced. The ratio presented for the period ended 8/31/13 is a blended ratio.
4 Annualized.
5 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 21

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .2%   Common Stock     339,185,692       399,996,838  
  1 .0%   Other Investment Companies     3,927,865       4,297,156  
  0 .3%   Preferred Stock     967,782       1,134,218  
 
 
  100 .5%   Total Investments     344,081,339       405,428,212  
  (0 .5)%   Other Assets andLiabilities, Net             (2,198,756 )
 
 
  100 .0%   Net Assets             403,229,456  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.2% of net assets
 
Australia 5.3%
Other Securities
            5.3       21,558,989  
 
Austria 0.7%
Other Securities
            0.7       3,009,752  
 
Belgium 1.5%
Other Securities
            1.5       6,185,150  
 
Canada 18.1%
AltaGas Ltd.
    28,258       0.3       1,369,982  
Atco Ltd., Class I
    21,738       0.2       937,655  
Baytex Energy Corp.
    33,120       0.4       1,484,484  
CCL Industries, Inc., Class B
    9,448       0.2       987,173  
Dollarama, Inc.
    14,293       0.3       1,219,731  
Enerplus Corp.
    42,392       0.2       972,700  
Gibson Energy, Inc.
    28,258       0.2       949,531  
Gildan Activewear, Inc.
    28,258       0.4       1,623,972  
Home Capital Group, Inc.
    19,549       0.2       977,134  
Industrial Alliance Insurance & Financial Services, Inc.
    23,540       0.3       1,018,638  
Keyera Corp.
    18,703       0.4       1,649,347  
Methanex Corp.
    23,794       0.4       1,594,675  
Onex Corp.
    23,510       0.3       1,372,130  
Open Text Corp.
    28,258       0.4       1,591,149  
Peyto Exploration & Development Corp.
    28,258       0.2       1,003,716  
Precision Drilling Corp.
    70,650       0.2       902,705  
Stantec, Inc.
    12,643       0.2       863,652  
Tourmaline Oil Corp. *
    40,975       0.5       2,080,197  
Vermilion Energy, Inc.
    21,684       0.4       1,413,883  
Other Securities
            12.4       48,785,941  
                         
              18.1       72,798,395  
 
Denmark 1.3%
GN Store Nord A/S
    44,961       0.3       1,024,677  
Jyske Bank A/S *
    18,637       0.3       1,018,199  
Other Securities
            0.7       3,287,550  
                         
              1.3       5,330,426  
 
Finland 1.9%
Elisa Oyj
    39,240       0.3       1,070,953  
Other Securities
            1.6       6,624,418  
                         
              1.9       7,695,371  
 
France 3.2%
Ingenico
    9,150       0.2       881,270  
Teleperformance
    14,189       0.2       923,087  
Other Securities
            2.8       11,155,656  
                         
              3.2       12,960,013  
 
Germany 4.4%
Wirecard AG
    27,898       0.3       1,044,908  
Other Securities
            4.1       16,528,990  
                         
              4.4       17,573,898  
 
Greece 0.8%
Other Securities
            0.8       3,062,140  
 
Hong Kong 2.0%
Other Securities
            2.0       8,016,443  
 
Ireland 0.6%
Other Securities
            0.6       2,467,191  
 
Israel 0.4%
Other Securities
            0.4       1,600,313  
 
Italy 3.6%
Banca Monte dei Paschi di Siena S.p.A. *
    929,955       0.3       1,393,978  
Other Securities
            3.3       13,326,031  
                         
              3.6       14,720,009  
 
Japan 15.1%
Other Securities
            15.1       60,832,479  
 
Netherlands 1.8%
Delta Lloyd N.V.
    39,822       0.2       961,736  
Other Securities
            1.6       6,182,980  
                         
              1.8       7,144,716  
 
 
 
22 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
New Zealand 0.6%
Other Securities
            0.6       2,599,514  
 
Norway 1.9%
Marine Harvest A.S.A.
    63,593       0.2       863,218  
Other Securities
            1.7       6,809,420  
                         
              1.9       7,672,638  
 
Portugal 0.7%
Banco Comercial Portugues S.A. - Reg’d *
    8,029,047       0.3       1,094,602  
Other Securities
            0.4       1,592,243  
                         
              0.7       2,686,845  
 
Republic of Korea 4.8%
Hotel Shilla Co., Ltd.
    7,420       0.2       870,832  
Other Securities
            4.6       18,414,487  
                         
              4.8       19,285,319  
 
Singapore 2.1%
Other Securities
            2.1       8,534,234  
 
Spain 1.8%
Other Securities
            1.8       7,240,379  
 
Sweden 3.4%
Trelleborg AB, B Shares
    63,479       0.3       1,218,360  
Other Securities
            3.1       12,378,596  
                         
              3.4       13,596,956  
 
Switzerland 3.4%
Dufry AG - Reg’d *
    7,260       0.3       1,240,585  
Other Securities
            3.1       12,417,382  
                         
              3.4       13,657,967  
 
United Kingdom 19.8%
Amlin plc
    116,478       0.2       870,290  
BTG plc *
    92,378       0.2       982,634  
Capital & Counties Properties plc
    165,242       0.2       917,679  
DCC plc
    19,676       0.3       1,168,526  
Derwent London plc
    22,784       0.3       1,056,073  
Dixons Carphone plc
    193,716       0.3       1,108,625  
DS Smith plc
    240,203       0.3       1,132,924  
Great Portland Estates plc
    83,579       0.2       911,246  
Hikma Pharmaceuticals plc
    34,688       0.2       994,891  
Hiscox Ltd.
    80,954       0.2       872,543  
Howden Joinery Group plc
    152,344       0.2       894,120  
IG Group Holdings plc
    86,073       0.2       867,680  
Inchcape plc
    108,793       0.3       1,219,576  
Pennon Group plc
    77,717       0.3       1,049,972  
Provident Financial plc
    32,597       0.3       1,157,957  
Rightmove plc
    22,576       0.2       944,825  
Rotork plc
    19,079       0.2       873,250  
Spirax-Sarco Engineering plc
    18,626       0.2       915,620  
Other Securities
            15.5       61,829,270  
                         
              19.8       79,767,701  
                         
Total Common Stock
(Cost $339,185,692)     399,996,838  
         
                         
                         
 
 Other Investment Companies 1.0% of net assets
 
Australia 0.0%
Other Securities
            0.0       88,881  
 
Switzerland 0.1%
Other Securities
            0.1       670,993  
 
United Kingdom 0.1%
Other Securities
            0.1       316,116  
 
United States 0.8%
Equity Fund 0.1%
Other Securities
            0.1       256,350  
 
Money Market Fund 0.0%
Other Securities
            0.0       49,859  
 
Securities Lending Collateral 0.7%
Other Securities
            0.7       2,914,957  
                         
              0.8       3,221,166  
                         
Total Other Investment Companies
(Cost $3,927,865)     4,297,156  
         
                         
                         
 
 Preferred Stock 0.3% of net assets
 
Germany 0.2%
Other Securities
            0.2       740,157  
 
Italy 0.1%
Other Securities
            0.1       394,061  
                         
Total Preferred Stock
(Cost $967,782)     1,134,218  
         
 
End of Investments.
 
 
 
See financial notes 23

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
At 08/31/14, the tax basis cost of the fund’s investments was $350,858,079 and the unrealized appreciation and depreciation were $72,065,938 and ($17,495,805), respectively, with a net unrealized appreciation of $54,570,133.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b) Illiquid security. At the period end, the value of these amounted to $27,964 or 0.0% of net assets.
(c) All or a portion of this security is on loan. Securities on loan were valued at $2,703,109.
(d) The rate shown is the 7-day yield.
(e) 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 $153,692 or 0.0% of net assets.
 
     
ETF —
  Exchange Traded Fund
Reg’d —
  Registered
REIT —
  Real Estate Investment Trust
RSP —
  Risparmio (Convertible Savings Shares)
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $363,181,027       $—       $—       $363,181,027  
Australia
    21,465,701       —       93,288       21,558,989  
Hong Kong
    7,908,574       —       107,869       8,016,443  
Spain
    7,212,415       —       27,964       7,240,379  
Other Investment Companies1
    4,297,156       —       —       4,297,156  
Preferred Stock1
    1,134,218       —       —       1,134,218  
                                 
Total
    $405,199,091       $—       $229,121       $405,428,212  
                                 
 
     
1
  As categorized in the complete schedule of portfolio holdings.
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    August 31,
 		  Gains
 		  Appreciation
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  August 31,
Investments in Securities
 
2013
 
(Losses)
 
(Depreciation)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Common Stock
                                                               
Australia
    $—       $137       ($8,882 )     $103,014       ($981 )     $—       $—       $93,288  
Hong Kong
    —       —       (11,762 )     119,631       —       —       —       107,869  
Spain
    —       —       (125,141 )     153,105       —       —       —       27,964  
Rights
                                                               
Australia
    13,988       8,461       (13,988 )     —       (8,461 )     —       —       —  
                                                                 
Total
    $13,988       $8,598       ($159,773 )     $375,750       ($9,442 )     $—       $—       $229,121  
                                                                 
 
All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized appreciation (depreciation) for Level 3 Investments held by the fund at August 31, 2014 was ($159,773).
 
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, 2014.
 
 
 
24 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $341,166,382) including securities on loan of $2,703,109
        $402,513,255  
Collateral invested for securities on loan, at value (cost $2,914,957)
  +     2,914,957  
   
Total investments, at value (cost $344,081,339)
        405,428,212  
Foreign currency, at value (cost $208,155)
        207,208  
Receivables:
           
Investments sold
        784,232  
Dividends
        507,718  
Foreign tax reclaims
        84,587  
Income from securities on loan
  +     6,762  
   
Total assets
        407,018,719  
 
Liabilities
Collateral held for securities on loan
        2,914,957  
Payables:
           
Investments bought
        631,699  
Investment adviser fees
        12,607  
Due to custodian
  +     230,000  
   
Total liabilities
        3,789,263  
 
Net Assets
Total assets
        407,018,719  
Total liabilities
  −     3,789,263  
   
Net assets
        $403,229,456  
 
Net Assets by Source
Capital received from investors
        363,004,634  
Net investment income not yet distributed
        1,843,057  
Net realized capital losses
        (22,960,046 )
Net unrealized capital appreciation
        61,341,811  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$403,229,456
      12,100,000         $33.32      
 
 
 
See financial notes 25

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends (net of foreign withholding tax of $871,839)
        $8,342,201  
Interest
        3  
Securities on loan
  +     239,898  
   
Total investment income
        8,582,102  
 
Expenses
Investment adviser fees
        695,136  
   
Total expenses
  −     695,136  
   
Net investment income
        7,886,966  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments
        (5,185,596 )
Net realized gains on in-kind redemptions
        14,142,786  
Net realized losses on futures contracts
        (22,327 )
Net realized losses on foreign currency transactions
  +     (4,647 )
   
Net realized gains
        8,930,216  
Net change in unrealized appreciation (depreciation) on investments
        41,049,829  
Net change in unrealized appreciation (depreciation) on foreign currency translations
  +     1,929  
   
Net change in unrealized appreciation (depreciation)
  +     41,051,758  
   
Net realized and unrealized gains
        49,981,974  
             
Increase in net assets resulting from operations
        $57,868,940  
 
 
 
26 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $7,886,966       $6,497,603  
Net realized gains (losses)
        8,930,216       (1,029,360 )
Net change in unrealized appreciation (depreciation)
  +     41,051,758       28,483,543  
   
Increase in net assets resulting from operations
        57,868,940       33,951,786  
 
Distributions to Shareholders
Distributions from net investment income
        ($9,580,780 )     ($6,079,500 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        3,400,000       $110,086,847       4,100,000       $112,716,098  
Shares redeemed
  +     (1,100,000 )     (35,567,269 )     (700,000 )     (19,776,267 )
   
Net transactions in fund shares
        2,300,000       $74,519,578       3,400,000       $92,939,831  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        9,800,000       $280,421,718       6,400,000       $159,609,601  
Total increase
  +     2,300,000       122,807,738       3,400,000       120,812,117  
   
End of period
        12,100,000       $403,229,456       9,800,000       $280,421,718  
   
                                     
Net investment income not yet distributed
                $1,843,057               $2,553,743  
 
 
 
See financial notes 27

Table of Contents

Schwab Emerging Markets Equity ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  1/13/101–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    22.94       23.65       26.10       24.30       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.63       0.50       0.63       0.62       0.27      
Net realized and unrealized gains (losses)
    4.40       (0.65 )     (2.51 )     1.41 2     (0.97 )    
   
Total from investment operations
    5.03       (0.15 )     (1.88 )     2.03       (0.70 )    
Less distributions:
                                           
Distributions from net investment income
    (0.63 )     (0.56 )     (0.57 )     (0.23 )     —      
   
Net asset value at end of period
    27.34       22.94       23.65       26.10       24.30      
   
Total return (%)
    22.31       (0.89 )     (7.04 )     8.31       (2.80 )3    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.14       0.15       0.25       0.25       0.30 4,5    
Net investment income (loss)
    2.89       2.63       2.96       2.78       2.94 4    
Portfolio turnover rate6
    9       15       9       9       23 3    
Net assets, end of period ($ x 1,000)
    1,273,840       811,915       515,595       396,661       148,222      

1 Commencement of operations.
2 The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3 Not annualized.
4 Annualized.
5 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
6 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
28 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  95 .4%   Common Stock     1,097,678,142       1,215,693,628  
  1 .1%   Other Investment Companies     13,893,281       13,965,671  
  4 .2%   Preferred Stock     45,754,735       53,222,010  
  0 .0%   Warrants     —       —  
  0 .0%   Short-Term Investments     57,999       57,999  
 
 
  100 .7%   Total Investments     1,157,384,157       1,282,939,308  
  (0 .7)%   Other Assets andLiabilities, Net             (9,099,606 )
 
 
  100 .0%   Net Assets             1,273,839,702  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 95.4% of net assets
 
Brazil 10.2%
AMBEV S.A. ADR
    1,592,270       0.9       11,607,648  
Banco do Brasil S.A.
    308,445       0.4       4,823,352  
BRF S.A. ADR
    299,638       0.6       7,988,349  
Cielo S.A.
    261,629       0.4       4,906,238  
Itau Unibanco Holding S.A. ADR
    949,708       1.3       17,094,744  
Petroleo Brasileiro S.A.
    1,258,200       1.0       12,449,576  
Vale S.A.
    457,249       0.5       5,950,746  
Vale S.A. ADR
    693,874       0.6       8,083,632  
Other Securities
            4.5       57,266,363  
                         
              10.2       130,170,648  
 
Chile 1.5%
Other Securities
            1.5       19,010,016  
 
China 21.0%
Bank of China Ltd., H Shares
    25,164,000       0.9       11,688,858  
China Construction Bank Corp., H Shares
    23,951,000       1.4       17,800,657  
China Life Insurance Co., Ltd., H Shares
    2,622,000       0.6       7,527,532  
China Mobile Ltd.
    1,743,500       1.7       21,686,471  
China Petroleum & Chemical Corp., H Shares
    8,456,000       0.7       8,575,855  
CNOOC Ltd.
    5,592,000       0.9       11,241,506  
Industrial & Commercial Bank of China Ltd., H Shares
    24,209,336       1.3       16,055,946  
PetroChina Co., Ltd., H Shares
    7,456,000       0.8       10,582,505  
Ping An Insurance Group Co. of China Ltd., H Shares
    699,000       0.4       5,691,103  
Tencent Holdings Ltd.
    1,568,200       2.0       25,596,576  
Other Securities
            10.3       131,358,315  
                         
              21.0       267,805,324  
 
Colombia 1.0%
Other Securities
            1.0       12,410,414  
 
Czech Republic 0.3%
Other Securities
            0.3       3,670,971  
 
Egypt 0.3%
Other Securities
            0.3       4,260,595  
 
Hungary 0.3%
Other Securities
            0.3       3,348,556  
 
India 10.5%
HDFC Bank Ltd.
    389,652       0.4       5,416,792  
Housing Development Finance Corp.
    531,240       0.7       9,407,010  
ICICI Bank Ltd.
    190,128       0.4       4,877,905  
Infosys Ltd.
    166,828       0.8       9,894,209  
Oil & Natural Gas Corp., Ltd.
    695,738       0.4       4,987,575  
Reliance Industries Ltd.
    540,022       0.7       8,887,936  
Tata Consultancy Services Ltd.
    145,392       0.5       6,043,664  
Other Securities
            6.6       84,158,826  
                         
              10.5       133,673,917  
 
Indonesia 2.7%
Other Securities
            2.7       34,806,765  
 
Malaysia 4.8%
Malayan Banking Berhad
    1,491,200       0.4       4,778,274  
Public Bank Berhad
    971,330       0.5       5,941,384  
Other Securities
            3.9       50,804,817  
                         
              4.8       61,524,475  
 
Mexico 5.9%
America Movil S.A.B. de C.V., Series L
    10,578,200       1.0       12,936,057  
Cemex S.A.B. de C.V., Series CPO *
    4,020,464       0.4       5,340,940  
Fomento Economico Mexicano S.A.B. de C.V.
    745,600       0.6       7,237,888  
Grupo Financiero Banorte S.A.B. de C.V., O Shares
    803,200       0.4       5,654,434  
Grupo Mexico S.A.B. de C.V., Series B
    1,351,400       0.4       4,909,296  
Grupo Televisa S.A.B., Series CPO
    978,600       0.6       7,281,404  
Wal-Mart de Mexico S.A.B. de C.V., Series V
    2,050,400       0.4       5,582,520  
 
 
 
See financial notes 29

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
Other Securities
            2.1       26,776,519  
                         
              5.9       75,719,058  
 
Pakistan 0.0%
Other Securities
            0.0       239,616  
 
Peru 0.4%
Other Securities
            0.4       4,493,796  
 
Philippines 1.6%
Other Securities
            1.6       20,975,879  
 
Poland 1.6%
Other Securities
            1.6       20,773,274  
 
Russia 4.5%
Gazprom OAO ADR
    1,978,276       1.1       14,144,673  
Lukoil OAO ADR
    173,352       0.8       9,664,374  
Magnit OJSC GDR - Reg’d
    101,860       0.5       5,928,252  
Sberbank of Russia ADR
    826,382       0.5       6,735,013  
Other Securities
            1.6       20,884,722  
                         
              4.5       57,357,034  
 
South Africa 9.4%
MTN Group Ltd.
    604,868       1.1       13,708,688  
Naspers Ltd., N Shares
    134,208       1.3       17,105,293  
Sasol Ltd.
    191,530       0.9       11,134,435  
Standard Bank Group Ltd.
    418,468       0.4       5,429,846  
Other Securities
            5.7       72,455,711  
                         
              9.4       119,833,973  
 
Taiwan 13.4%
Formosa Plastics Corp.
    1,917,120       0.4       4,970,703  
Hon Hai Precision Industry Co., Ltd.
    4,246,444       1.1       14,490,801  
MediaTek, Inc.
    503,469       0.7       8,413,468  
Nan Ya Plastics Corp.
    2,076,060       0.4       4,896,614  
Taiwan Semiconductor Manufacturing Co., Ltd. ADR
    1,633,330       2.7       34,201,930  
Other Securities
            8.1       103,414,033  
                         
              13.4       170,387,549  
 
Thailand 3.2%
Other Securities
            3.2       40,134,842  
 
Turkey 1.9%
Other Securities
            1.9       23,649,520  
 
United Arab Emirates 0.9%
Other Securities
            0.9       11,447,406  
                         
Total Common Stock
(Cost $1,097,678,142)     1,215,693,628  
         
                         
                         
 
 Other Investment Companies 1.1% of net assets
 
United States 1.1%
Equity Fund 0.1%
Other Securities
            0.1       1,362,000  
 
Money Market Fund 0.0%
Other Securities
            0.0       335,698  
 
Securities Lending Collateral 1.0%
Other Securities
            1.0       12,267,973  
                         
Total Other Investment Companies
(Cost $13,893,281)     13,965,671  
         
                         
                         
 
 Preferred Stock 4.2% of net assets
 
Brazil 4.0%
Banco Bradesco S.A.
    715,145       1.0       13,052,902  
Itausa - Investimentos Itau S.A.
    1,127,720       0.4       5,493,575  
Petroleo Brasileiro S.A.
    1,491,200       1.2       15,561,449  
Other Securities
            1.4       17,060,409  
                         
              4.0       51,168,335  
 
Chile 0.0%
Other Securities
            0.0       343,697  
 
Colombia 0.2%
Other Securities
            0.2       1,709,978  
                         
Total Preferred Stock
(Cost $45,754,735)     53,222,010  
         
                         
                         
 
 Warrants 0.0% of net assets
 
Thailand 0.0%
Other Securities
            0.0       —  
                         
Total Warrants
(Cost $—)     —  
         
                         
                         
Security
  Face Amount
 		  % of Net
 		  Value
Rate, Maturity Date   ($)   Assets   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
Other Securities
            0.0       57,999  
                         
Total Short-Term Investment
(Cost $57,999)     57,999  
         
 
End of Investments.
 
 
 
30 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,166,632,356 and the unrealized appreciation and depreciation were $186,323,546 and ($70,016,594), respectively, with a net unrealized appreciation of $116,306,952.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $11,724,865.
(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 $154,564 or 0.0% of net assets.
(c) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d) Illiquid security. At the period end, the value of these amounted to $394,180 or 0.0% of net assets.
(e) The rate shown is the 7-day yield.
(f) The rate shown is the purchase yield.
(g) All or a portion of this security is held as collateral for open futures contracts.
 
     
ADR —
  American Depositary Receipt
ETF —
  Exchange Traded Fund
GDR —
  Global Depositary Receipt
NVDR —
  Non-Voting Depositary Receipt
Reg’d —
  Registered
 
In addition to the above, the fund held the following at 8/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Depreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
MSCI EAFE, e-mini, Long, expires 09/19/14
    15       814,350       (1,629 )
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $1,215,454,012       $—       $—       $1,215,454,012  
Pakistan1
    —       —       239,616       239,616  
Other Investment Companies1
    13,965,671       —       —       13,965,671  
Preferred Stock1
    53,222,010       —       —       53,222,010  
Warrants1
    —       —       —       —  
Short-Term Investments1
    —       57,999       —       57,999  
                                 
Total
    $1,282,641,693       $57,999       $239,616       $1,282,939,308  
                                 
                                 
                                 
Liabilities Valuation Input
                 
 
Other Financial Instruments
                               
Futures Contracts2
    ($1,629 )     $—       $—       ($1,629 )
 
     
1
  As categorized in the complete schedule of portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
 
 
See financial notes 31

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    August 31,
 		  Gains
 		  Appreciation
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  August 31,
Investments in Securities
 
2013
 
(Losses)
 
(Depreciation)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Common Stock
                                                               
China
    $242,410       $—       $—       $—       $—       $—       ($242,410 )     $—  
Pakistan
    209,664       —       29,952       —       —       —       —       239,616  
Rights
                                                               
China
    39,538       —       (39,538 )     —       —       —       —       —  
                                                                 
Total
    $491,612       $—       ($9,586 )     $—       $—       $—       ($242,410 )     $239,616  
                                                                 
 
All net realized and change in unrealized gains (losses) in the table above are reflected on the accompanying Statement of Operations. The change in net unrealized gains (losses) for Level 3 Investments held by the fund at August 31, 2014 was $29,952.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were transfers out of Level 3 to Level 1. Transfers from Level 3 to Level 1 are a result of the availability of current and reliable market-based data provided by third-party pricing services or other valuation techniques which utilize significant observable inputs. There were no transfers between Level 1 and Level 2 for the period ended August 31, 2014.
 
 
 
32 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $1,145,116,184) including securities on loan of $11,724,865
        $1,270,671,335  
Collateral invested for securities on loan, at value (cost $12,267,973)
  +     12,267,973  
   
Total investments, at value (cost $1,157,384,157)
        1,282,939,308  
Foreign currency, at value (cost $1,113,108)
        1,111,444  
Receivables:
           
Dividends
        2,817,516  
Fund shares sold
        576,726  
Income from securities on loan
        21,557  
Foreign tax reclaims
  +     13,648  
   
Total assets
        1,287,480,199  
 
Liabilities
Collateral held for securities on loan
        12,267,973  
Payables:
           
Investments bought
        588,752  
Investment adviser fees
        29,262  
Foreign capital gains tax
        753,160  
Variation margin on futures contracts
  +     1,350  
   
Total liabilities
        13,640,497  
 
Net Assets
Total assets
        1,287,480,199  
Total liabilities
  −     13,640,497  
   
Net assets
        $1,273,839,702  
 
Net Assets by Source
Capital received from investors
        1,206,755,582  
Net investment income not yet distributed
        21,366,306  
Net realized capital losses
        (79,083,239 )
Net unrealized capital appreciation
        124,801,053  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$1,273,839,702
      46,600,000         $27.34      
 
 
 
See financial notes 33

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends (net of foreign withholding tax of $3,728,960)
        $29,463,768  
Interest (net of foreign withholding tax of $24)
        2,348  
Securities on loan
  +     245,843  
   
Total investment income
        29,711,959  
 
Expenses
Investment adviser fees
        1,413,989  
   
Total expenses
  −     1,413,989  
   
Net investment income
        28,297,970  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments (net of foreign capital gains tax of $48,980)
        (22,554,022 )
Net realized losses on futures contracts
        (8,534 )
Net realized losses on foreign currency transactions
  +     (64,183 )
   
Net realized losses
        (22,626,739 )
Net change in unrealized appreciation (depreciation) on investments (net of foreign capital gains tax of ($753,160))
        194,866,044  
Net change in unrealized appreciation (depreciation) on futures contracts
        (1,629 )
Net change in unrealized appreciation (depreciation) on foreign currency translations
  +     26,705  
   
Net change in unrealized appreciation (depreciation)
  +     194,891,120  
   
Net realized and unrealized gains
        172,264,381  
             
Increase in net assets resulting from operations
        $200,562,351  
 
 
 
34 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $28,297,970       $19,909,084  
Net realized losses
        (22,626,739 )     (35,145,718 )
Net change in unrealized appreciation (depreciation)
  +     194,891,120       (24,210,404 )
   
Increase (Decrease) in net assets resulting from operations
        200,562,351       (39,447,038 )
 
Distributions to Shareholders
Distributions from net investment income
        ($23,217,480 )     ($14,760,500 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        11,200,000       $284,579,691       14,400,000       $368,497,242  
Shares redeemed
  +     —       —       (800,000 )     (17,970,050 )
   
Net transactions in fund shares
        11,200,000       $284,579,691       13,600,000       $350,527,192  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        35,400,000       $811,915,140       21,800,000       $515,595,486  
Total increase
  +     11,200,000       461,924,562       13,600,000       296,319,654  
   
End of period
        46,600,000       $1,273,839,702       35,400,000       $811,915,140  
   
                                     
Net investment income not yet distributed
                $21,366,306               $16,348,414  
 
 
 
See financial notes 35

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes
 
 
1. Business Structure of the Funds
 
Each of the funds 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 operational funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:
 
         
 
Schwab Strategic Trust (organized January 27, 2009)
  Schwab U.S. REIT ETF    
Schwab International Equity ETF
  Schwab U.S. TIPS ETF    
Schwab International Small-Cap Equity ETF
  Schwab Short-Term U.S. Treasury ETF    
Schwab Emerging Markets Equity ETF
  Schwab Intermediate-Term U.S. Treasury ETF    
Schwab U.S. Broad Market ETF
  Schwab U.S. Aggregate Bond ETF    
Schwab U.S. Large-Cap ETF
  Schwab Fundamental U.S. Broad Market Index ETF    
Schwab U.S. Large-Cap Growth ETF
  Schwab Fundamental U.S. Large Company Index ETF    
Schwab U.S. Large-Cap Value ETF
  Schwab Fundamental U.S. Small Company Index ETF    
Schwab U.S. Mid-Cap ETF
  Schwab Fundamental International Large Company Index ETF    
Schwab U.S. Small-Cap ETF
  Schwab Fundamental International Small Company Index ETF    
Schwab U.S. Dividend Equity ETF
  Schwab Fundamental Emerging Markets Large Company Index ETF    
 
 
The funds issue and redeem shares at their net assets value per share (“NAV”) only in large blocks of shares, typically 50,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.
 
Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
 
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
 
2. Significant Accounting Policies:
 
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services - Investment Companies. 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 U.S. Securities and 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.
 
 
 
36 

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
  •  Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing 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.
 
  •  Bonds and notes: Bonds and notes are valued at halfway between the most recent bid and ask quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by independent bond-pricing services.
 
  •  Futures contracts (“futures”): Futures are valued at their settlement prices as of the close of their exchanges.
 
  •  Short-term securities (60 days or less to maturity): Short-term securities may be 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, ETFs and futures contracts. 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
 
 
 
 37

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
  markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The levels associated with valuing the funds’ investments as of August 31, 2014 are disclosed in the Portfolio Holdings.
 
(b) Accounting Policies for certain Portfolio Investments (if held):
 
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures are traded publicly on exchanges, and their market value may change daily.
 
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 be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds to terminate any loans at any given time. 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 and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the loan). Total costs and expenses, including agent fees, associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.
 
The values of the securities on loan and the related cash collateral are disclosed in the funds’ Portfolio Holdings and the Statement of Assets and Liabilities. The following table presents the non-cash collateral as of August 31, 2014.
 
         
    Non-Cash
   
Collateral Received
 
Schwab Emerging Markets Equity ETF
    $236,059  
 
(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
 
 
 
38 

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
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.
 
When a fund closes out a futures position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
 
(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 rate 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.
 
(e) Expenses:
 
Pursuant to the Investment Advisory Agreement (“Advisory 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 and 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, 2014, if any, are reflected in the funds’ Statements of Assets and Liabilities.
 
 
 
 39

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
(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.
 
Market Risk. 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.
 
Investment Style Risk. 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.
 
Equity Risk. 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.
 
Large-Cap and Mid-Cap Risk. Certain funds invest in large- and mid-cap stocks. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large-and mid-cap stocks fall behind other types of investments — small-cap stocks, for instance — a fund’s large- and mid-cap holdings could reduce performance.
 
Small-Cap Risk. 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.
 
Foreign Investment Risk. 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); the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. 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.
 
Emerging Markets Risk. Certain funds invest in emerging markets. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial
 
 
 
40 

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
3. Risk Factors (continued):
 
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.
 
Sampling Index Tracking Risk. Each fund uses statistical sampling techniques, and as a result, a fund may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the Adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because each fund uses a sampling approach, it may not track the return of the index as well as it would if a fund purchased all of the securities in its benchmark index.
 
Tracking Error Risk. 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.
 
Derivatives Risk. 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.
 
Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell a security at an advantageous time or price.
 
Securities Lending Risk. 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.
 
Concentration Risk. 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.
 
Market Trading Risk. 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.
 
Shares of the Fund May Trade at Prices Other Than NAV. 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 (See Frequency Distribution of Discounts and Premiums in Other Information for an overview showing the frequency at which the daily closing price was at a discount or a premium to a fund’s daily NAV).
 
Lack of Government Insurance or Guarantee. 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.
 
 
 
 41

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
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
 		  Schwab
Schwab
 		  International
 		  Emerging
International
 		  Small-Cap
 		  Markets
Equity ETF
 
Equity ETF
 
Equity ETF
 
  0.08%       0.19%       0.14%  
 
Prior to March 5, 2014, the management fee of the Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF were 0.20% and 0.15%, respectively. Prior to April 18, 2014, the management fee of the Schwab International Equity ETF was 0.09%.
 
Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab funds as of August 31, 2014, as applicable:
 
                         
    Underlying Funds
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
Schwab VIT Balanced Portfolio
    0.2%       0.2%       0.2%  
Schwab VIT Balanced with Growth Portfolio
    0.6%       0.7%       0.5%  
Schwab VIT Growth Portfolio
    0.8%       1.3%       0.7%  
 
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 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 CSIM 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 the 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.
 
 
 
42 

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
7. Borrowing from Banks (continued):
 
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 funds’ Statements of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
 
8. Derivatives: 
 
Certain funds entered into equity index futures contracts during the report period. The funds invested in futures to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2014 are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized/unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period, the month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:
 
                 
   
Contract Values
 
Number of Contracts
 
Schwab International Equity ETF
    $607,215       6  
Schwab International Small-Cap Equity ETF
    7,896       1  
Schwab Emerging Markets Equity ETF
    67,863       1  
 
9. Purchases and Sales/Maturities of Investment Securities:
 
For the period ended August 31, 2014, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:
 
                 
   
Purchases of Securities
 
Sales/Maturities of Securities
 
Schwab International Equity ETF
    $284,999,517       $137,537,690  
Schwab International Small-Cap Equity ETF
    71,148,164       57,783,759  
Schwab Emerging Markets Equity ETF
    213,519,487       87,947,932  
 
10. 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 to or out of the fund. From time to time, CSIM may cover the cost of any transaction fees when believed to be in the best interests of a fund.
 
The in-kind transactions for the period ended August 31, 2014 were as follows:
 
                 
   
In-Kind Purchases of Securities
 
In-Kind Sales of Securities
 
Schwab International Equity ETF
    $820,866,943       $—  
Schwab International Small-Cap Equity ETF
    94,562,918       33,815,501  
Schwab Emerging Markets Equity ETF
    163,508,951       —  
 
For the period ended August 31, 2014, the funds realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended August 31, 2014 are disclosed in the funds’ Statements of Operations.
 
 
 
 43

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
11. Federal Income Taxes
 
As of August 31, 2014, the components of distributable earnings on a tax-basis were as follows:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
Undistributed ordinary income
    $62,392,070       $8,584,421       $24,994,068  
Undistributed long-term capital gains
    —       —       —  
Unrealized appreciation
    359,525,332       72,065,938       186,323,546  
Unrealized depreciation
    (59,890,741 )     (17,495,805 )     (70,016,594 )
Other unrealized appreciation (depreciation)
    (46,943 )     (5,062 )     (752,469 )
                         
Net unrealized appreciation (depreciation)
    299,587,648       54,565,071       115,554,483  
                         
 
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales and Real Estate Investment Trusts (REITs).
 
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
Expiration Date
 
Equity ETF
 
Equity ETF
 
Equity ETF
 
August 31, 2019
    $2,345,874       $215,545       $1,091,404  
No expiration*
    35,975,895       17,727,427       51,588,021  
                         
Total
    $38,321,769       $17,942,972       $52,679,425  
                         
 
     
*
  As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital losses, which may increase the likelihood that the pre-enactment capital losses may expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, irrespective of the character of the original loss.
 
For tax purposes, realized net capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2014, the funds had capital losses deferred as follows:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
Deferred capital losses
    $8,731,491       $4,981,697       $20,785,006  
 
The tax-basis components of distributions paid during the current and prior fiscal years were:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
Current period distributions
                       
Ordinary income
    $41,541,200       $9,580,780       $23,217,480  
Long-term capital gains
    —       —       —  
                         
Prior period distributions
                       
Ordinary income
    26,201,560       6,079,500       14,760,500  
Long-term capital gains
    —       —       —  
 
 
 
44 

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
11. Federal Income Taxes (continued):
 
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses, in-kind transactions, capital losses related to wash sales, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
 
The permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2014, the funds made the following reclassifications:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
Capital shares
    $—       $13,847,596       $—  
Undistributed net investment income
    231,904       983,128       (62,598 )
Net realized gains and losses
    (231,904 )     (14,830,724 )     62,598  
 
For the period ended August 31, 2014, the following funds reclassified non-taxable security gains and losses realized on the in-kind redemption of Creation Units (Note 10) as an increase or decrease to capital received from investors in the Statement of Assets and Liabilities as follows:
 
                         
        Schwab
 		  Schwab
    Schwab
 		  International
 		  Emerging
    International
 		  Small-Cap
 		  Markets
   
Equity ETF
 
Equity ETF
 
Equity ETF
 
      $—       $14,142,786       $—  
 
As of August 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2014, the funds did not incur any interest or penalties.
 
12. Other:
 
As a result of recent political and military actions undertaken by the Russian Federation, the U.S. and the European Union have instituted various economic sanctions against Russian individuals and entities. The U.S. and/or the European Union may impose additional economic sanctions, or take other actions, against individuals and/or companies in specific sectors of the Russian economy, including, but not limited to, the financial services, energy, metals and mining, engineering, and defense and defense related materials sectors. These sanctions, and the threat of additional sanctions, could have adverse consequences for the Russian economy, including continued weakening of the Russian currency, downgrades in Russia’s credit rating, and a significant decline in the value and liquidity of securities issued by Russian companies or the Russian government. Any of these events could negatively impact the investments of the Schwab Emerging Markets Equity ETF in Russian securities. These sanctions have the possibility of impairing a fund’s ability to invest in accordance with its investment strategy and/or to meet its investment objective.
 
In addition, as index based products, the funds will generally maintain exposure to Russian securities to the extent the indexes which they track include such securities. For this reason, the sanction instituted against Russia, and any continued disruption of the Russian economy, could negatively impact a fund’s performance to the extent its index and its portfolio contain securities of Russian issuers, and, depending on the fund’s exposure to Russian issuers, the impact could be significant.
 
 
 
 45

Table of Contents

 
 Schwab International Equity ETFs
 

 
Financial Notes (continued)
 
13. 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.
 
 
 
46 

Table of Contents

 
Report of Independent Registered Public Accounting Firm
 
 
To the Board of Trustees and Shareholders of:
Schwab International Equity ETF
Schwab International Small-Cap Equity ETF
Schwab Emerging Markets Equity ETF
 
In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (three of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2014, the results of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
 
PricewaterhouseCoopers LLP
San Francisco, California
October 17, 2014
 
 
 
 47

Table of Contents

 
Other Federal Tax Information (unaudited)
 
 
The funds may elect to pass on the benefits of the foreign tax credit to its shareholders for the period ended August 31, 2014, and the respective foreign source income on the funds as follows:
 
                 
   
Foreign Tax Credit
 
Foreign Source Income
 
Schwab International Equity ETF
    $4,451,945       $70,042,118  
Schwab International Small-Cap Equity ETF
    684,838       9,193,532  
Schwab Emerging Markets Equity ETF
    3,592,644       33,158,433  
 
For the period ended August 31, 2014, the funds designated the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2015 via IRS form 1099 of the amount for use in preparing their 2014 income tax return.
 
         
Schwab International Equity ETF
    $40,243,445  
Schwab International Small-Cap Equity ETF
    5,442,726  
Schwab Emerging Markets Equity ETF
    18,436,838  
 
 
 
48 

Table of Contents

 
Other Information (unaudited)
 
 
Frequency Distribution of Discounts and Premiums
Market Price vs. NAV as of August 31, 2014
 
The following charts are provided to show the frequency at which the daily closing market price on the NYSE Arca, Inc. (“Exchange”), the secondary market for shares of each fund, was at a discount or premium to such fund’s daily NAV. The “Market Price” of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund’s NAV is calculated. Each fund’s Market Price may at times be at, above or below its NAV. The discount or premium is the percentage difference between the NAV and the Market Price of a fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand. The data presented below represents past performance and can not be used to predict future results.
 
                                                                 
    Number of Days
  Number of Days
    Market Price Above NAV   Market Price Below NAV
    1-49
 		  50-99
 		  100-199
 		  >200
 		  1-49
 		  50-99
 		  100-199
 		  >200
    Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
   
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Schwab International Equity ETF
                                                               
Commencement of trading
11/3/09 through 8/31/14
    424       441       117       11       129       57       21       2  
                                                                 
Schwab International Small-Cap Equity ETF
                                                               
Commencement of trading
1/14/10 through 8/31/14
    344       458       160       2       114       49       26       5  
                                                                 
Schwab Emerging Markets Equity ETF
                                                               
Commencement of trading
1/14/10 through 8/31/14
    312       359       195       15       168       72       29       8  
 
 
 
 49

Table of Contents

 
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 96 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); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.   21   Director, PS Business Parks, Inc. (2005 – 2012).
 
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).   21   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).   21   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 II2
1960
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.   96   None
 
 
 
 
50 

Table of Contents

 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).
 
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.
 
 
 
 51

Table of Contents

 
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.
 
Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value
 
Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.
 
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.
 
FTSE Developed ex-US Index An index comprised of approximately 85% large-cap stocks and 15% mid-cap stocks from more than 20 developed markets, excluding the US. This index defines the large- and mid-cap stocks as approximately the top 90% of the eligible universe. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
 
FTSE Developed Small Cap ex-US Liquid Index An index comprised of small-cap companies in developed countries excluding the United States, as defined by the index provider. The index defines the small-cap universe as approximately the bottom 10% of the eligible universe with a minimum free float capitalization of $150 million. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
 
FTSE Emerging Index An index comprised of large- and mid-cap companies in emerging countries, as defined by the index provider. The index defines the large and mid-cap universe as approximately the top 90% of the eligible universe. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes.
 
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. Free-float market capitalization is a variation of market capitalization that only includes shares generally available to the public, and excludes shares of a company held by entities such as the government. Modified market capitalization weighting represents a mix between conventional market capitalization weighting and equal weighting.
 
 
 
52 

Table of Contents

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. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
 
MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.
 
net asset value (NAV) The value of one share of a fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.
 
NAV return The return based on the change in NAV of the fund over a given time period. NAV returns assume that dividends and capital gain distributions have been reinvested in the fund.
 
offer (ask) The lowest price at which an individual is willing to sell a security.
 
open The price at which a security opened for trading on a given day.
 
outstanding shares, shares outstanding When speaking of the fund, indicates all shares currently held by investors.
 
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.
 
Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
 
S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.
 
sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.
 
secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.
 
spread The gap between bid and ask prices of a security.
 
stock A share of ownership, or equity, in the issuing company.
 
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
 
tracking error The difference between the performance of the fund and its benchmark index, positive or negative.
 
 
 
 
 53

Table of Contents

 
PRIVACY NOTICE
 THIS IS NOT PART OF THE SHAREHOLDER REPORT
 
A Commitment to Your Privacy
 
Your Privacy Is Not for Sale
 
We do not and will not sell your personal information to anyone, for any reason.
 
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
 
How We Collect Information About You
 
We collect personal information about you in a number of ways.
 
•  APPLICATION AND REGISTRATION INFORMATION.
 
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
 
•  TRANSACTION AND EXPERIENCE INFORMATION.
 
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
 
•  WEBSITE USAGE.
 
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
 
How We Share and Use Your Information
 
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
 
•  to help us process transactions for your account;
 
•  when we use other companies to provide services for us, such as printing and mailing your account statements;
 
•  when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
 
State Laws
 
We will comply with state laws that apply to the disclosure or use of information about you.
 
Safeguarding Your Information — Security Is a Partnership
 
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
 
Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.
 
We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.
 
We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
 
Contact Us
 
To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.
 
Schwab ETFtm direct investors:  1-800-435-4000
 
 
© 2014 Schwab ETFs. All rights reserved.
 
 
 
54 

Table of Contents

 
Notes

Table of Contents

 
Notes

Table of Contents

 
Schwab ETFstm are designed to be low-cost, diversified investments. The funds follow broad market indices and provide 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 ETFstm
 
U.S. ETFs
Schwab U.S. Broad Market ETFtm
Schwab U.S. Large-Cap ETFtm
Schwab U.S. Large-Cap Growth ETFtm
Schwab U.S. Large-Cap Value ETFtm
Schwab U.S. Mid-Cap ETFtm
Schwab U.S. Small-Cap ETFtm
Schwab U.S. Dividend Equity ETFtm
Schwab U.S. REIT ETFtm
 
International ETFs
Schwab International Equity ETFtm
Schwab International Small-Cap Equity ETFtm
Schwab Emerging Markets Equity ETFtm
 
Fixed Income ETFs
Schwab U.S. Aggregate Bond ETFtm
Schwab Short-Term U.S. Treasury ETFtm
Schwab Intermediate-Term U.S. Treasury ETFtm
Schwab U.S. TIPS ETFtm
 
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.

Table of Contents

(SCHWAB ETF LOGO)
 
 
 
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
 
Schwab ETFstm
1-800-435-4000
 
 
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.
© 2014 Charles Schwab Investment Management, Inc. All rights reserved.
Printed on recycled paper.
MFR57933-04
00125305

Table of Contents

  

Table of Contents

(SCHWAB ETF LOGO)

Table of Contents

Annual report dated August 31, 2014, enclosed.
 
 
Schwab U.S. Equity ETFs
 
Schwab U.S. Broad Market ETFtm
 
Schwab U.S. Large-Cap ETFtm
 
Schwab U.S. Large-Cap
Growth ETFtm
 
Schwab U.S. Large-Cap
Value ETFtm
 
Schwab U.S. Mid-Cap ETFtm
 
Schwab U.S. Small-Cap ETFtm
 
Schwab U.S. Dividend
Equity ETFtm
 
 
Go paperless today.
 
Simplify your financial life
by viewing these documents online.
Sign up at schwab.com/paperless
 
(SCHWAB ETF LOGO)

Table of Contents

 
This wrapper is not part of the shareholder report.

Table of Contents

 
Schwab U.S. Equity ETFs
 
Annual Report
August 31, 2014
 
 
Schwab U.S. Broad Market ETFtm
 
Schwab U.S. Large-Cap ETFtm
 
Schwab U.S. Large-Cap
Growth ETFtm
 
Schwab U.S. Large-Cap
Value ETFtm
 
Schwab U.S. Mid-Cap ETFtm
 
Schwab U.S. Small-Cap ETFtm
 
Schwab U.S. Dividend
Equity ETFtm
 
 
(SCHWAB ETF LOGO)
 

Table of Contents

 
This page is intentionally left blank.
 

 

 
 
In This Report
 
     
  2
  3
  5
Performance and Fund Facts
   
  6
  8
  10
  12
  14
  16
  18
  20
   
  21
  28
  35
  42
  49
  56
  63
  69
  79
  80
  81
  82
  84
 
 
 
Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co.
 
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS), which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.
 

Table of Contents

 
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 Returns for the 12 Months Ended August 31, 2014   
Schwab U.S. Broad Market ETFtm
(Ticker Symbol: SCHB) 		       
 
 
Market Price Return1
    24.80%  
NAV Return1
    24.77%  
Dow Jones U.S. Broad Stock Market Index     24.74%  
ETF Category: Morningstar Large Blend2     23.09%  
 
 
Performance Details     pages 6-7  
 
 
 
Schwab U.S. Large-Cap ETFtm
(Ticker Symbol: SCHX) 		       
 
 
Market Price Return1
    25.14%  
NAV Return1
    25.16%  
Dow Jones U.S. Large-Cap Total Stock Market Index     25.26%  
ETF Category: Morningstar Large Blend2     23.09%  
 
 
Performance Details     pages 8-9  
 
 
 
Schwab U.S. Large-Cap Growth ETFtm
(Ticker Symbol: SCHG) 		       
 
 
Market Price Return1
    28.20%  
NAV Return1
    28.11%  
Dow Jones U.S. Large-Cap Growth Total Stock Market Index     28.23%  
ETF Category: Morningstar Large Growth2     27.42%  
 
 
Performance Details     pages 10-11  
 
 
 
Schwab U.S. Large-Cap Value ETFtm
(Ticker Symbol: SCHV) 		       
 
 
Market Price Return1
    22.19%  
NAV Return1
    22.25%  
Dow Jones U.S. Large-Cap Value Total Stock Market Index     22.40%  
ETF Category: Morningstar Large Value2     22.79%  
 
 
Performance Details     pages 12-13  
 
 
 
Schwab U.S. Mid-Cap ETFtm
(Ticker Symbol: SCHM) 		       
 
 
Market Price Return1
    24.97%  
NAV Return1
    24.97%  
Dow Jones U.S. Mid-Cap Total Stock Market Index     25.01%  
ETF Category: Morningstar Mid-Cap Blend2     24.42%  
 
 
Performance Details     pages 14-15  
 
 
 
Schwab U.S. Small-Cap ETFtm
(Ticker Symbol: SCHA) 		       
 
 
Market Price Return1
    20.96%  
NAV Return1
    21.01%  
Dow Jones U.S. Small-Cap Total Stock Market Index     20.92%  
ETF Category: Morningstar Small Blend2     19.44%  
 
 
Performance Details     pages 16-17  
 
 
 
Schwab U.S. Dividend Equity ETFtm
(Ticker Symbol: SCHD) 		       
 
 
Market Price Return1
    21.18%  
NAV Return1
    21.15%  
Dow Jones U.S. Dividend 100tm Index     21.32%  
ETF Category: Morningstar Large Blend2     23.09%  
 
 
Performance Details     pages 18-19  
 
 
         
 
 
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.
 
For index definitions, please see the Glossary.
 
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The Dow Jones Indexes are a product of S&P Dow Jones Indices LLC or its affiliates, and have been licensed for use by CSIM. The Schwab U.S. Equity ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
1 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
2 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
 
 
 
2 Schwab U.S. Equity ETFs

Table of Contents

 
From the President
 

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

 
Dear Shareholder,
 
I’d like to thank you for trusting us to help you meet your investment goals, and for reading this annual report regarding the Schwab U.S. Equity ETFs. These funds are part of our line-up of products that is designed to serve as the foundation of an investor’s portfolio. The funds track U.S. stock indices constructed by industry-leading index providers, and offer the benefits of ETF investing, including transparency, intraday trading, and potential tax efficiency, at some of the lowest operating expense ratios in the industry.
 
For the 12-month reporting period ended August 31, 2014, the funds generated double-digit returns that closely tracked their respective indices. Repeatedly reaching record highs during the reporting period, U.S. equities benefited from a rebound in economic growth late in the reporting period combined with assurances from the Federal Reserve that short-term interest rates would remain low. Favorable earnings reports by select companies also helped. These positive factors allowed stocks to overcome geopolitical tensions, soft economic growth early in 2014, and the Fed’s decision to reduce its policies aimed at holding down long-term interest rates.
 
The Dow Jones U.S. Broad Stock Market Index returned 24.7% for the reporting period. However, these results gloss over market volatility and Fed comments about stock valuations that caused the market’s

 Asset Class Performance Comparison % returns during the 12 months ended 8/31/2014
 
This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.
         
         
(LEGEND)   25.25%   S&P 500® Index: measures U.S. large-cap stocks
         
(LEGEND)   17.68%   Russell 2000® Index: measures U.S. small-cap stocks
         
(LEGEND)   16.43%   MSCI EAFE® Index (Net): measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East
         
(LEGEND)   5.66%   Barclays U.S. Aggregate Bond Index: measures the U.S. bond market
         
(LEGEND)   0.03%   Barclays U.S. Treasury Bills 1—3 Months Index: measures short-term U.S. Treasury obligations
 
(LINE GRAPH)
 
For index definitions, please see the Glossary.
 
Data source: Index provider websites and Charles Schwab Investment Management, Inc.
 
Nothing in this report represents a recommendation of a security by the investment adviser.
 
Management views and portfolio holdings may have changed since the report date.

 
 
 
Schwab U.S. Equity ETFs 3

Table of Contents

 
From the President continued
 

For the 12-month reporting period ended August 31, 2014, the funds generated double-digit returns that closely tracked their respective indices.

performance to fluctuate late in the reporting period. Amid this backdrop, large-cap stocks outperformed small-cap stocks, and growth stocks generally outperformed value stocks. In addition, individual sectors of the market had divergent performance. For instance, Health Care and Information Technology generally outperformed, while Telecommunication Services and Consumer Staples generally underperformed by comparison.
 
For more information about the Schwab U.S. Equity 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, or by contacting us at 1-800-435-4000.
 
Sincerely,
 
-s- Marie Chandoha

 
Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested. Past performance is not an indication of future results.

 
 
 
4 Schwab U.S. Equity ETFs

Table of Contents

 
Fund Management
 
     
     
(PHOTO)   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.
     
(PHOTO)   Ferian Juwono, CFA, Managing Director and Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining CSIM in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors), where he spent over three years as a portfolio manager, managing equity index funds for institutional clients, and nearly two years as a senior business analyst. Prior to that, Mr. Juwono worked for over four years as a senior financial analyst with Union Bank of California.
     
(PHOTO)   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.
 
 
 
Schwab U.S. Equity ETFs 5

Table of Contents

 
Schwab U.S. Broad Market ETF™
 
 
The Schwab U.S. Broad Market ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Broad Stock Market Index (the index). The index includes the largest 2,500 publicly traded U.S. companies for which pricing information is readily available. The index is a float-adjusted market capitalization-weighted index that reflects the shares of securities actually available to investors in the marketplace. The fund invests in a representative sample of securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of representative sampling, the fund may not hold all of the securities in the index.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 24.80% and its NAV return was 24.77% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 24.74% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Health Care and Information Technology sectors were among the better performers, while stocks in the Telecommunication Services and Consumer Staples sectors underperformed by comparison.
 
Contributors and Detractors. The Information Technology sector contributed the most to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks representing approximately 18% of the fund. The fund’s Information Technology stocks returned roughly 32% for the 12-month reporting period. One example from this sector is Apple, Inc., a company that designs, manufactures, and markets personal computers and related computing, mobile communication, and media devices, as well as a variety of related software and services. The fund’s holdings of Apple, Inc. represented the fund’s largest position within this sector and returned approximately 51%.
 
Health Care stocks also provided meaningful contributions to the returns of the index and the fund. The Health Care sector represented an average weight of almost 13% of the fund and returned roughly 32%. One example from this sector is Gilead Sciences, Inc., a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases. The fund’s holdings of Gilead Sciences, Inc. returned approximately 78%.
 
The Telecommunication Services sector generated positive returns for the index and the fund, but contributed the least to the fund’s performance. The Telecommunication Services sector represented an average weight of roughly 2% of the fund and returned approximately 14%. One example from this sector is Sprint Corp., a company that offers wireless and wireline communications to consumers, businesses, and government customers. The fund’s holdings of Sprint Corp. returned approximately -16%.
 
The Utilities sector also generated positive returns for the index and the fund, but was another weak overall contributor to performance. The Utilities sector represented an average weight of approximately 3% of the fund and returned roughly 21%. FirstEnergy Corp., a public utility holding company, is one example from this sector. The fund’s holdings of FirstEnergy Corp. detracted more from performance for the 12-month reporting period than any other position within this sector, and returned approximately -4%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    2,024  
Weighted Average Market Cap ($ x 1,000,000)
    $107,676  
Price/Earnings Ratio (P/E)
    21.2  
Price/Book Ratio (P/B)
    2.6  
Portfolio Turnover Rate1
    4%  
 
 Sector Weightings % of Investments
         
Information Technology
    18.5%  
Financials
    17.2%  
Health Care
    13.2%  
Consumer Discretionary
    12.6%  
Industrials
    11.2%  
Energy
    9.6%  
Consumer Staples
    8.1%  
Materials
    3.9%  
Utilities
    3.0%  
Telecommunication Services
    2.2%  
Other
    0.5%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Apple, Inc.
    2.8%  
Exxon Mobil Corp.
    1.9%  
Microsoft Corp.
    1.6%  
Johnson & Johnson
    1.3%  
General Electric Co.
    1.2%  
Wells Fargo & Co.
    1.1%  
Chevron Corp.
    1.1%  
Berkshire Hathaway, Inc., Class B
    1.1%  
JPMorgan Chase & Co.
    1.0%  
The Procter & Gamble Co.
    1.0%  
Total
    14.1%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
6 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Broad Market ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
November 3, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Broad Market ETFtm (11/3/09)
                        
Market Price Return2
    24.80 %       20.67 %     17.45%
NAV Return2
    24.77 %       20.61 %     17.45%
Dow Jones U.S. Broad Stock Market Index
    24.74 %       20.61 %     17.48%
ETF Category: Morningstar Large Blend3
    23.09 %       19.68 %     16.20%
 
Fund Expense Ratio4: 0.04%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Broad Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Broad Market ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (11/3/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 7

Table of Contents

 
Schwab U.S. Large-Cap ETF™
 
 
The Schwab U.S. Large-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index (the index). The index includes the large-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 1-750 by full market capitalization. The fund will generally give the same weight to a given stock as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 25.14% and its NAV return was 25.16% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 25.26% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Information Technology and Health Care sectors were among the better performers, while stocks in the Telecommunication Services and Consumer Staples sectors underperformed by comparison.
 
Contributors and Detractors. The Information Technology sector contributed the most to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks representing approximately 18% of the fund. The fund’s Information Technology stocks returned roughly 33% for the 12-month reporting period. One example from this sector is Apple, Inc., a company that designs, manufactures, and markets personal computers and related computing, mobile communication, and media devices, as well as a variety of related software and services. The fund’s holdings of Apple, Inc. represented the fund’s largest position within this sector and returned approximately 51%.
 
Health Care stocks also provided meaningful contributions to the index’s return, and to the return of the fund. The Health Care sector represented an average weight of roughly 13% of the fund and returned approximately 32%. One example from this sector is Gilead Sciences, Inc., a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases. The fund’s holdings of Gilead Sciences, Inc. returned approximately 78%.
 
The Telecommunication Services sector generated positive returns for the index and the fund, but contributed the least to the fund’s performance. The Telecommunication Services sector represented an average weight of roughly 2% of the fund, and underperformed all other sectors, returning approximately 14%. One example from this sector is Sprint Corp., a company that offers wireless and wireline communications to consumers, businesses, and government customers. The fund’s holdings of Sprint Corp. returned approximately -16%.
 
The Utilities sector also generated positive returns for the index and the fund, but was another weak overall contributor to performance. The Utilities sector represented an average weight of approximately 3% of the fund and returned roughly 21%. FirstEnergy Corp., a public utility holding company, is one example from this sector. The fund’s holdings of FirstEnergy Corp. were the only detractors from performance within the sector, and returned approximately -4%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    765  
Weighted Average Market Cap ($ x 1,000,000)
    $121,196  
Price/Earnings Ratio (P/E)
    20.0  
Price/Book Ratio (P/B)
    2.7  
Portfolio Turnover Rate1
    5%  
 
 Sector Weightings % of Investments
         
Information Technology
    18.9%  
Financials
    16.4%  
Health Care
    13.4%  
Consumer Discretionary
    12.6%  
Industrials
    10.5%  
Energy
    10.1%  
Consumer Staples
    8.8%  
Materials
    3.6%  
Utilities
    3.0%  
Telecommunication Services
    2.4%  
Other
    0.3%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Apple, Inc.
    3.2%  
Exxon Mobil Corp.
    2.2%  
Microsoft Corp.
    1.7%  
Johnson & Johnson
    1.5%  
General Electric Co.
    1.3%  
Berkshire Hathaway, Inc., Class B
    1.3%  
Wells Fargo & Co.
    1.3%  
Chevron Corp.
    1.3%  
JPMorgan Chase & Co.
    1.2%  
The Procter & Gamble Co.
    1.2%  
Total
    16.2%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
8 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Large-Cap ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
November 3, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Large-Cap ETFtm (11/3/09)
                        
Market Price Return2
    25.14 %       20.49 %     17.05%
NAV Return2
    25.16 %       20.52 %     17.07%
Dow Jones U.S. Large-Cap Total Stock Market Index
    25.26 %       20.60 %     17.18%
ETF Category: Morningstar Large Blend3
    23.09 %       19.68 %     16.20%
 
Fund Expense Ratio4: 0.04%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (11/3/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 9

Table of Contents

 
Schwab U.S. Large-Cap Growth ETF™
 
 
The Schwab U.S. Large-Cap Growth ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index (the index). The index includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 1-750 by full market capitalization and that are classified as “growth” based on a number of factors. The fund will generally give the same weight to a given stock as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 28.20% and its NAV return was 28.11% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 28.23% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Utilities and Health Care sectors were among the better performers, while stocks in the Consumer Staples and Consumer Discretionary sectors underperformed by comparison.
 
Contributors and Detractors. The Information Technology sector was the biggest contributor to the index’s return, and to the return of the fund. The large average weight of this sector reflected part of the reason for this contribution, with Information Technology stocks representing approximately 28% of the fund. In addition, the fund’s Information Technology stocks returned roughly 32%. One example from this sector is Apple, Inc., a company that designs, manufactures, and markets personal computers and related computing, mobile communication, and media devices, as well as a variety of related software and services. The fund’s holdings of Apple, Inc. represented the fund’s largest position within this sector and returned approximately 51%.
 
Health Care stocks also provided meaningful contributions to the index’s return, and to the return of the fund. The Health Care sector represented an average weight of approximately 17% of the fund and returned roughly 36%. One example from this sector is Gilead Sciences, Inc., a research-based biopharmaceutical company that discovers, develops, and commercializes therapeutics to advance the care of patients suffering from life-threatening diseases. The fund’s holdings of Gilead Sciences, Inc. returned approximately 78%.
 
The Utilities sector generated double-digit returns for the index and the fund, but was one of the weakest contributors to the fund’s performance. The Utilities sector represented an average weight of less than 1% of the fund and returned roughly 36%. One example from this sector is ONE Gas, Inc., a provider of oil and gas services to customers in Oklahoma, Kansas, and Texas. The fund’s holdings of ONE Gas, Inc. returned approximately 6% (please note this position was sold prior to the end of the reporting period).
 
The Telecommunication Services sector also generated positive results for the index and the fund, but was another comparatively weak contributor to the fund’s overall return. The Telecommunication Services sector represented an average weight of less than 1% of the fund, while returning approximately 33%. One example from this sector is T-Mobile US, Inc., a national wireless carrier. The fund’s holdings of T-Mobile US, Inc. returned approximately 29%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    405  
Weighted Average Market Cap ($ x 1,000,000)
    $131,451  
Price/Earnings Ratio (P/E)
    23.9  
Price/Book Ratio (P/B)
    3.8  
Portfolio Turnover Rate1
    7%  
 
 Sector Weightings % of Investments
         
Information Technology
    28.5%  
Health Care
    17.8%  
Consumer Discretionary
    14.0%  
Industrials
    10.8%  
Financials
    9.8%  
Energy
    8.4%  
Consumer Staples
    6.6%  
Materials
    3.1%  
Telecommunication Services
    0.4%  
Utilities
    0.2%  
Other
    0.4%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Apple, Inc.
    6.3%  
Microsoft Corp.
    3.5%  
Johnson & Johnson
    3.0%  
Berkshire Hathaway, Inc., Class B
    2.5%  
Gilead Sciences, Inc.
    1.7%  
Google, Inc., Class A
    1.7%  
Google, Inc., Class C
    1.7%  
Schlumberger Ltd.
    1.5%  
Oracle Corp.
    1.5%  
Comcast Corp., Class A
    1.5%  
Total
    24.9%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
10 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
December 11, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Large-Cap Growth ETFtm (12/11/09)
                        
Market Price Return2
    28.20 %       20.92 %     16.80%
NAV Return2
    28.11 %       20.93 %     16.80%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index
    28.23 %       21.05 %     16.94%
ETF Category: Morningstar Large Growth3
    27.42 %       21.02 %     17.36%
 
Fund Expense Ratio4: 0.07%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Growth Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Growth ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (12/11/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 11

Table of Contents

 
Schwab U.S. Large-Cap Value ETF™
 
 
The Schwab U.S. Large-Cap Value ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Value Total Stock Market Index (the index). The index includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 1-750 by full market capitalization and that are classified as “value” based on a number of factors. The fund will generally give the same weight to a given stock as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 22.19% and its NAV return was 22.25% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 22.40% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. »Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Information Technology and Materials sectors were among the better performers, while stocks in the Telecommunication Services and Consumer Staples sectors underperformed by comparison.
 
Contributors and Detractors. The Financials sector was the biggest contributor to the index’s return, and to the return of the fund. Financials stocks represented an average weight of approximately 23% of the fund, more than twice the size of any other sector. The fund’s Financials stocks returned roughly 21% for the 12-month reporting period. One example from this sector is Wells Fargo & Co., a diversified financial services company. The fund’s holdings of Wells Fargo & Co. represented the fund’s largest position within this sector and returned approximately 29%.
 
Information Technology stocks also provided meaningful contributions to the index’s return, and to the return of the fund. The Information Technology sector represented an average weight of almost 9% of the fund and returned roughly 36%. One example from this sector is Intel Corporation, a company that designs, manufactures, and sells computer components and related products. The fund’s holdings of Intel Corporation returned approximately 64%.
 
The Telecommunication Services sector generated positive results for the index and the fund, but was the weakest contributor to the fund’s performance. The Telecommunication Services sector represented an average weight of approximately 4% of the fund, while returning roughly 11% and underperforming other sectors. One example among the fund’s Telecommunication Services holdings is Sprint Corp., a company that offers wireless and wireline communications to consumers, businesses, and government customers. The fund’s holdings of Sprint Corp. returned approximately -16%.
 
The Materials sector also generated positive returns for the index and the fund, but was another comparatively weak contributor to the fund’s overall performance. The fund’s Materials sector represented an average weight of roughly 4% and returned approximately 27%, reflecting the overall performance of companies that manufacture chemicals, construction materials, glass, paper, forest products and related packaging products, and metals, minerals and mining companies, including producers of steel. One example from this sector is Newmont Mining Corporation, a company that acquires, explores, and develops mineral properties. The fund’s holdings of Newmont Mining Corporation were some of the only stocks within this sector to detract from performance, and returned approximately -13%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    361  
Weighted Average Market Cap ($ x 1,000,000)
    $110,889  
Price/Earnings Ratio (P/E)
    17.1  
Price/Book Ratio (P/B)
    2.1  
Portfolio Turnover Rate1
    9%  
 
 Sector Weightings % of Investments
         
Financials
    23.0%  
Energy
    11.9%  
Consumer Discretionary
    11.1%  
Consumer Staples
    11.0%  
Industrials
    10.2%  
Information Technology
    9.2%  
Health Care
    8.9%  
Utilities
    6.0%  
Telecommunication Services
    4.4%  
Materials
    4.2%  
Other
    0.1%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Exxon Mobil Corp.
    4.4%  
General Electric Co.
    2.7%  
Wells Fargo & Co.
    2.5%  
Chevron Corp.
    2.5%  
JPMorgan Chase & Co.
    2.3%  
The Procter & Gamble Co.
    2.3%  
Verizon Communications, Inc.
    2.1%  
Pfizer, Inc.
    1.9%  
International Business Machines Corp.
    1.9%  
AT&T, Inc.
    1.9%  
Total
    24.5%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
12 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Large-Cap Value ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
December 11, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Large-Cap Value ETFtm (12/11/09)
                        
Market Price Return2
    22.19 %       19.96 %     15.13%
NAV Return2
    22.25 %       19.93 %     15.14%
Dow Jones U.S. Large-Cap Value Total Stock Market Index
    22.40 %       20.10 %     15.34%
ETF Category: Morningstar Large Value3
    22.79 %       19.70 %     15.55%
 
Fund Expense Ratio4: 0.07%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Large-Cap Value Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Large-Cap Value ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (12/11/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 13

Table of Contents

 
Schwab U.S. Mid-Cap ETF™
 
 
The Schwab U.S. Mid-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Mid-Cap Total Stock Market Index (the index). The index includes the mid-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 501–1,000 by full market capitalization. The fund will generally give the same weight to a given security as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 24.97% and its NAV return was 24.97% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 25.01% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Telecommunication Services and Energy sectors were among the better performers, while stocks in the Consumer Staples and Consumer Discretionary sectors underperformed by comparison.
 
Contributors and Detractors. The Industrials sector was the biggest contributor to the index’s return, and to the return of the fund. Industrials stocks represented an average weight of roughly 17% of the fund and returned approximately 29%, reflecting the overall performance of companies involved in commercial services and supplies, transportation, and in the production of capital goods for industries like aerospace and defense. One example from this sector is United Rentals, Inc., an equipment rental provider. The fund’s holdings of United Rentals, Inc. contributed more than any other stock in this sector and returned approximately 115%.
 
The Financials sector also provided a meaningful contribution to the index’s return, and to the return of the fund. Financials stocks represented an average weight of approximately 22% of the fund and returned roughly 22%. One example from this sector is Fidelity National Financial, Inc. - FNF Group, a provider of title insurance, mortgage services, and diversified services. The fund’s holdings of Fidelity National Financial, Inc. - FNF Group returned approximately 47%.
 
The Telecommunication Services sector generated impressive results for the index and the fund, but was one of the smallest contributors to the fund’s overall performance. The Telecommunication Services sector represented an average weight of approximately 1% of the fund and returned roughly 54%. One example of the fund’s Telecommunication Services holdings is Telephone and Data Systems, Inc., a diversified telecommunications company. The fund’s holdings of Telephone and Data Systems, Inc. returned approximately -3%.
 
The Consumer Staples sector also performed well, but was another comparatively weak contributor to the overall returns of the index and the fund. The Consumer Staples sector represented an average weight of roughly 3% of the fund and returned approximately 22%, reflecting the overall performance of manufacturers and distributors of food, beverages and tobacco, producers of non-durable household goods and personal products, food & drug retailing companies, hypermarkets, and consumer super centers. Nu Skin Enterprises, Inc. (Class A), a global direct selling company that distributes premium personal care products and nutritional supplements, is one example from this sector. The fund’s holdings of Nu Skin Enterprises, Inc. (Class A) detracted from performance and returned approximately -46%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    515  
Weighted Average Market Cap ($ x 1,000,000)
    $6,774  
Price/Earnings Ratio (P/E)
    26.5  
Price/Book Ratio (P/B)
    2.5  
Portfolio Turnover Rate1
    9%  
 
 Sector Weightings % of Investments
         
Financials
    21.1%  
Industrials
    17.7%  
Consumer Discretionary
    15.0%  
Information Technology
    13.0%  
Health Care
    9.2%  
Materials
    7.6%  
Energy
    7.1%  
Utilities
    5.1%  
Consumer Staples
    2.2%  
Telecommunication Services
    1.2%  
Other
    0.8%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
American Airlines Group, Inc.
    1.1%  
Cheniere Energy, Inc.
    0.7%  
Cimarex Energy Co.
    0.5%  
Essex Property Trust, Inc.
    0.5%  
Electronic Arts, Inc.
    0.5%  
Lam Research Corp.
    0.5%  
United Rentals, Inc.
    0.4%  
Helmerich & Payne, Inc.
    0.4%  
Under Armour, Inc., Class A
    0.4%  
Whiting Petroleum Corp.
    0.4%  
Total
    5.4%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
14 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Mid-Cap ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
January 13, 2011 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Mid-Cap ETFtm (1/13/11)
                        
Market Price Return2
    24.97 %       21.35 %     15.64%
NAV Return2
    24.97 %       21.38 %     15.64%
Dow Jones U.S. Mid-Cap Total Stock Market Index
    25.01 %       21.47 %     15.73%
ETF Category: Morningstar Mid-Cap Blend3
    24.42 %       20.72 %     15.35%
 
Fund Expense Ratio4: 0.07%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Mid-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Mid-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (1/13/11) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 15

Table of Contents

 
Schwab U.S. Small-Cap ETF™
 
 
The Schwab U.S. Small-Cap ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Small-Cap Total Stock Market Index (the index). The index includes the small-cap portion of the Dow Jones U.S. Total Stock Market Index actually available to investors in the marketplace. The index includes the components ranked 751-2,500 by full market capitalization. The fund will generally give the same weight to a given stock as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 20.96% and its NAV return was 21.01% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 20.92% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these returns. Within the index, stocks in the Health Care and Materials sectors were among the better performers, while stocks in the Telecommunication Services and Consumer Discretionary sectors underperformed by comparison.
 
Contributors and Detractors. The Financials sector contributed the most to the index’s return, and to the return of the fund. Financials stocks represented an average weight of approximately 23% of the fund and returned roughly 19%. One example of the performance of the Financials sector is NorthStar Realty Finance Corp., an internally managed real estate company. The fund’s holdings of NorthStar Realty Finance Corp. returned approximately 135%.
 
The Industrials sector was the next biggest contributor to the index’s return, and to the return of the fund. Industrials stocks represented an average weight of approximately 16% of the fund and returned roughly 25%, reflecting the overall performance of companies involved in commercial services and supplies, transportation, and in the production of capital goods for industries like aerospace and defense. One example from this sector is Avis Budget Group, Inc., an automobile and truck rental company. The fund’s holdings of Avis Budget Group, Inc. had triple-digit returns of approximately 152%.
 
The Telecommunication Services sector generated positive results for the index and the fund, but contributed the least to performance. Telecommunication Services stocks represented an average weight of less than 1% of the fund, well below the size of other sectors, and returned approximately 4%. One example among the fund’s Telecommunication Services holdings is NII Holdings, Inc. (Class B), a provider of mobile communications for business customers in Latin America. The fund’s holdings of NII Holdings, Inc. (Class B) returned approximately -89%.
 
The Consumer Staples sector also performed well, but was another comparatively weak contributor to the overall returns of the index and the fund. Consumer Staples stocks represented an average weight of roughly 3% of the fund and returned approximately 14%, reflecting the overall performance of manufacturers and distributors of food, beverages and tobacco, producers of non-durable household goods and personal products, food & drug retailing companies, hypermarkets, and consumer super centers. Nu Skin Enterprises, Inc. (Class A), a global direct selling company that distributes premium personal care products and nutritional supplements, is one example from this sector. The fund’s holdings of Nu Skin Enterprises, Inc. (Class A) returned approximately -46%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    1,796  
Weighted Average Market Cap ($ x 1,000,000)
    $3,186  
Price/Earnings Ratio (P/E)
    48.9  
Price/Book Ratio (P/B)
    2.2  
Portfolio Turnover Rate1
    13%  
 
 Sector Weightings % of Investments
         
Financials
    23.0%  
Industrials
    16.5%  
Information Technology
    15.7%  
Consumer Discretionary
    12.7%  
Health Care
    11.7%  
Energy
    6.0%  
Materials
    5.6%  
Consumer Staples
    2.9%  
Utilities
    2.6%  
Telecommunication Services
    0.5%  
Other
    2.8%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
American Airlines Group, Inc.
    1.1%  
American Realty Capital Properties, Inc.
    0.5%  
Salix Pharmaceuticals Ltd.
    0.4%  
Mallinckrodt plc
    0.3%  
Jazz Pharmaceuticals plc
    0.3%  
Harman International Industries, Inc.
    0.3%  
InterMune, Inc.
    0.3%  
Trinity Industries, Inc.
    0.3%  
The Goodyear Tire & Rubber Co.
    0.3%  
Avis Budget Group, Inc.
    0.3%  
Total
    4.1%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
16 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Small-Cap ETFtm

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
November 3, 2009 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
                         
Fund and Inception Date   1 Year   3 Years   Since Inception*
 
 
Fund: Schwab U.S. Small-Cap ETFtm (11/3/09)
                        
Market Price Return2
    20.96 %       20.81 %     19.89%
NAV Return2
    21.01 %       20.88 %     19.92%
Dow Jones U.S. Small-Cap Total Stock Market Index
    20.92 %       20.87 %     20.01%
ETF Category: Morningstar Small Blend3
    19.44 %       20.11 %     18.32%
 
Fund Expense Ratio4: 0.08%
 
 
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.
 
For index definitions, please see the Glossary.
 
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.
 
Investments in smaller companies typically exhibit higher volatility.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Small-Cap Total Stock Market Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Small-Cap ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (11/3/09) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 17

Table of Contents

 
Schwab U.S. Dividend Equity ETF™
 
 
The Schwab U.S. Dividend Equity ETF (the fund) seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100TM Index (the index). The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding REITs, master limited partnerships, preferred stocks, and convertibles. The index is modified market-capitalization weighted. The fund will generally give the same weight to a given stock as the index does.
 
Performance. During the 12-month reporting period ended August 31, 2014, the fund closely tracked the index. The fund’s market price return was 21.18% and its NAV return was 21.15% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 21.32% during the same period.
 
Market Highlights. U.S. stocks generated positive returns for the 12-month reporting period, despite increased geopolitical tensions and the Federal Reserve’s (the Fed’s) measured reduction of policies aimed at holding down long-term interest rates. Supporting these results were the Fed’s reassurances that low short-term interest rates remained necessary for the time being, combined with a rebound in U.S. economic growth toward the end of the reporting period. Forecasts for stronger earnings by select companies late in the reporting period also played an important role in these results. Within the index, stocks in the Information Technology and Materials sectors were among the better performers, while stocks in the Telecommunication Services and Consumer Staples sectors underperformed by comparison.
 
Contributors and Detractors. The Industrials sector contributed the most to the return of the fund. Industrials stocks represented an average weight of approximately 18% of the fund and returned roughly 25%, reflecting the performance of companies involved in commercial services and supplies, transportation, and in the production of capital goods for industries like aerospace and defense. One example of the performance of the Industrials sector is the 3M Company, a conductor of operations in electronics, telecommunications, industrial, consumer and office, health care, safety, and other markets. The fund’s holdings of 3M Company returned approximately 30%.
 
Information Technology stocks, which represented approximately 13% of the fund, provided the next biggest contribution to performance. The fund’s Information Technology holdings returned roughly 38%. Intel Corporation— a company that designs, manufactures, and sells computer components and related products —is one example of this sector’s performance. The fund’s holdings of Intel Corporation returned approximately 64%.
 
The Utilities sector was the smallest contributor to the fund’s performance. The Utilities sector represented an average weight of roughly 1% of the fund and returned approximately 13%. One example from this sector is WGL Holdings, Inc., a company that sells and delivers natural gas and other energy-related products and services. The fund’s holdings of WGL Holdings, Inc. returned approximately -4%.
 
The Financials sector also performed well, but was another comparatively weak contributor to the overall returns of the index and the fund. The Financials sector represented an average weight of roughly 2% of the fund and returned approximately 17%. The fund’s holdings of Erie Indemnity Company (Class A), a company that sells auto, home, life, and business insurance in the U.S., is one example from this sector. The fund’s holdings of Erie Indemnity Company (Class A) detracted from performance, and returned approximately -8%.
 
As of 08/31/14:
 
 Statistics
         
Number of Holdings
    102  
Weighted Average Market Cap ($ x 1,000,000)
    $154,800  
Price/Earnings Ratio (P/E)
    16.9  
Price/Book Ratio (P/B)
    3.6  
Portfolio Turnover Rate1
    26%  
 
 Sector Weightings % of Investments
         
Consumer Staples
    22.0%  
Industrials
    16.2%  
Information Technology
    13.3%  
Energy
    12.7%  
Health Care
    11.6%  
Telecommunication Services
    8.8%  
Consumer Discretionary
    8.7%  
Materials
    4.3%  
Financials
    1.8%  
Utilities
    0.5%  
Other
    0.1%  
Total
    100.0%  
 
 Top Equity Holdings % of Net Assets2
         
Microsoft Corp.
    4.9%  
The Procter & Gamble Co.
    4.6%  
Chevron Corp.
    4.6%  
Verizon Communications, Inc.
    4.4%  
Johnson & Johnson
    4.4%  
Pfizer, Inc.
    4.4%  
AT&T, Inc.
    4.3%  
Exxon Mobil Corp.
    4.3%  
Intel Corp.
    4.1%  
The Coca-Cola Co.
    3.7%  
Total
    43.7%  
 
Management views and 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 trading and management costs incurred by the fund.
 
Source of Sector Classification: S&P and MSCI.
 
1 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
2 This list is not a recommendation of any security by the investment adviser.
 
 
 
18 Schwab U.S. Equity ETFs

Table of Contents

 
 Schwab U.S. Dividend Equity ETF™

 
Performance and Fund Facts as of 08/31/14
 
 
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.
 
October 20, 2011 – August 31, 2014
Performance of Hypothetical
$10,000 Investment1
 
(LINE GRAPH)
 
 Average Annual Total Returns1
 
               
Fund and Inception Date   1 Year   Since Inception*
 
 
Fund: Schwab U.S. Dividend Equity ETFtm (10/20/11)
              
Market Price Return2
    21.18 %     19.92%
NAV Return2
    21.15 %     19.93%
Dow Jones U.S. Dividend 100tm Index
     21.32 %     20.12%
ETF Category: Morningstar Large Blend3
    23.09 %     20.63%
 
Fund Expense Ratio4: 0.07%
 
 
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.
 
For index definitions, please see the Glossary.
 
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
 
Index ownership—“Standard & Poor’s” and “S&P” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and “Dow Jones” is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. (CSIM). The “Dow Jones U.S. Dividend 100 Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by CSIM. The Schwab U.S. Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product.
 
* Inception (10/20/11) 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 ETF performance must be shown based on both a market price and NAV basis. 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.
 
 
 
Schwab U.S. Equity ETFs 19

Table of Contents

 
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. These examples are based on an investment of $1,000 invested for six months beginning March 1, 2014 and held through August 31, 2014.
 
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 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 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 3/1/14   at 8/31/14   3/1/14–8/31/14
 
Schwab U.S. Broad Market ETFtm                                
Actual Return
    0.04%     $ 1,000.00     $ 1,078.00     $ 0.21  
Hypothetical 5% Return
    0.04%     $ 1,000.00     $ 1,025.00     $ 0.20  
 
Schwab U.S. Large-Cap ETFtm                                
Actual Return
    0.04%     $ 1,000.00     $ 1,085.30     $ 0.21  
Hypothetical 5% Return
    0.04%     $ 1,000.00     $ 1,025.00     $ 0.20  
 
Schwab U.S. Large-Cap Growth ETFtm                                
Actual Return
    0.07%     $ 1,000.00     $ 1,086.50     $ 0.37  
Hypothetical 5% Return
    0.07%     $ 1,000.00     $ 1,024.85     $ 0.36  
 
Schwab U.S. Large-Cap Value ETFtm                                
Actual Return
    0.07%     $ 1,000.00     $ 1,083.60     $ 0.37  
Hypothetical 5% Return
    0.07%     $ 1,000.00     $ 1,024.85     $ 0.36  
 
Schwab U.S. Mid-Cap ETFtm                                
Actual Return
    0.07%     $ 1,000.00     $ 1,052.70     $ 0.36  
Hypothetical 5% Return
    0.07%     $ 1,000.00     $ 1,024.85     $ 0.36  
 
Schwab U.S. Small-Cap ETFtm                                
Actual Return
    0.08%     $ 1,000.00     $ 1,017.40     $ 0.41  
Hypothetical 5% Return
    0.08%     $ 1,000.00     $ 1,024.80     $ 0.41  
 
Schwab U.S. Dividend Equity ETFtm                                
Actual Return
    0.07%     $ 1,000.00     $ 1,083.80     $ 0.37  
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 which covers a 12-month period.
2 Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 184 days of the period, and divided by the 365 days of the fiscal year.
 
 
 
20 Schwab U.S. Equity ETFs

Table of Contents

Schwab U.S. Broad Market ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  10/30/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    39.79       33.84       29.47       25.11       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.85 2     0.80 2     0.65 2     0.56 2     0.42 2    
Net realized and unrealized gains (losses)
    8.93       5.92       4.32       4.32       (0.05 )    
   
Total from investment operations
    9.78       6.72       4.97       4.88       0.37      
Less distributions:
                                           
Distributions from net investment income
    (0.82 )     (0.77 )     (0.60 )     (0.52 )     (0.26 )    
   
Net asset value at end of period
    48.75       39.79       33.84       29.47       25.11      
   
Total return (%)
    24.77       20.12       17.07       19.41       1.42 3    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.04       0.04       0.06       0.06       0.07 4,5    
Net investment income (loss)
    1.90       2.15       2.06       1.83       1.92 4    
Portfolio turnover rate6
    4       4       5       3       2 3    
Net assets, end of period ($ x 1,000)
    3,654,037       2,182,671       1,072,825       742,651       272,490      

1 Commencement of operations.
2 Calculated based on the average shares outstanding during the period.
3 Not annualized.
4 Annualized.
5 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
6 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 21

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .8%   Common Stock     2,788,904,595       3,644,576,745  
  0 .5%   Other Investment Companies     18,910,547       18,910,547  
  0 .0%   Rights     21,491       21,491  
  0 .0%   Short-Term Investments     174,998       174,998  
 
 
  100 .3%   Total Investments     2,808,011,631       3,663,683,781  
  (0 .3)%   Other Assets and
Liabilities, Net 		            (9,646,983 )
 
 
  100 .0%   Net Assets             3,654,036,798  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.8% of net assets
 
Automobiles & Components 1.3%
Other Securities
            1.3       46,750,836  
 
Banks 5.8%
Bank of America Corp.
    1,741,956       0.8       28,028,072  
Citigroup, Inc.
    504,812       0.7       26,073,540  
JPMorgan Chase & Co.
    627,750       1.0       37,319,737  
Wells Fargo & Co.
    793,453       1.1       40,815,222  
Other Securities
            2.2       80,277,554  
                         
              5.8       212,514,125  
 
Capital Goods 7.9%
3M Co.
    103,771       0.4       14,943,024  
General Electric Co.
    1,657,205       1.2       43,054,186  
The Boeing Co.
    110,926       0.4       14,065,417  
United Technologies Corp.
    139,731       0.4       15,088,153  
Other Securities
            5.5       201,803,913  
                         
              7.9       288,954,693  
 
Commercial & Professional Services 1.1%
Other Securities
            1.1       38,922,636  
 
Consumer Durables & Apparel 1.5%
Other Securities
            1.5       54,732,207  
 
Consumer Services 2.1%
McDonald’s Corp.
    163,666       0.4       15,338,778  
Other Securities
            1.7       60,662,201  
                         
              2.1       76,000,979  
 
Diversified Financials 4.6%
American Express Co.
    151,021       0.4       13,523,931  
Berkshire Hathaway, Inc., Class B *
    297,282       1.1       40,801,954  
The Charles Schwab Corp. (b)
    192,519       0.2       5,488,717  
Other Securities
            2.9       108,118,996  
                         
              4.6       167,933,598  
 
Energy 9.7%
Chevron Corp.
    315,282       1.1       40,813,255  
ConocoPhillips
    202,777       0.5       16,469,548  
Exxon Mobil Corp.
    711,206       1.9       70,736,549  
Occidental Petroleum Corp.
    129,845       0.4       13,468,822  
Schlumberger Ltd.
    215,890       0.6       23,670,180  
Other Securities
            5.2       188,201,893  
                         
              9.7       353,360,247  
 
Food & Staples Retailing 1.9%
CVS Caremark Corp.
    193,190       0.4       15,348,945  
Wal-Mart Stores, Inc.
    265,904       0.5       20,075,752  
Other Securities
            1.0       33,137,845  
                         
              1.9       68,562,542  
 
Food, Beverage & Tobacco 4.5%
Altria Group, Inc.
    331,932       0.4       14,299,631  
PepsiCo, Inc.
    250,909       0.6       23,206,573  
Philip Morris International, Inc.
    261,417       0.6       22,372,067  
The Coca-Cola Co.
    624,512       0.7       26,054,641  
Other Securities
            2.2       77,643,899  
                         
              4.5       163,576,811  
 
Health Care Equipment & Services 4.5%
UnitedHealth Group, Inc.
    163,068       0.4       14,134,734  
Other Securities
            4.1       152,405,618  
                         
              4.5       166,540,352  
 
Household & Personal Products 1.8%
The Procter & Gamble Co.
    448,467       1.0       37,272,092  
Other Securities
            0.8       27,260,825  
                         
              1.8       64,532,917  
 
Insurance 3.1%
American International Group, Inc.
    239,045       0.4       13,400,863  
Other Securities
            2.7       99,366,701  
                         
              3.1       112,767,564  
 
Materials 3.9%
Other Securities
            3.9       142,047,984  
 
 
 
22 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
Media 3.5%
Comcast Corp., Class A
    430,482       0.6       23,560,280  
The Walt Disney Co.
    266,321       0.7       23,936,932  
Other Securities
            2.2       80,834,883  
                         
              3.5       128,332,095  
 
Pharmaceuticals, Biotechnology & Life Sciences 8.7%
AbbVie, Inc.
    264,533       0.4       14,623,384  
Amgen, Inc.
    125,268       0.5       17,459,854  
Bristol-Myers Squibb Co.
    274,139       0.4       13,885,140  
Gilead Sciences, Inc. *
    253,610       0.7       27,283,364  
Johnson & Johnson
    467,276       1.3       48,470,539  
Merck & Co., Inc.
    487,642       0.8       29,312,161  
Pfizer, Inc.
    1,056,558       0.8       31,052,240  
Other Securities
            3.8       134,722,055  
                         
              8.7       316,808,737  
 
Real Estate 3.7%
Other Securities
            3.7       136,120,040  
 
Retailing 4.2%
Amazon.com, Inc. *
    61,548       0.6       20,867,234  
The Home Depot, Inc.
    226,227       0.6       21,152,225  
Other Securities
            3.0       113,101,693  
                         
              4.2       155,121,152  
 
Semiconductors & Semiconductor Equipment 2.5%
Intel Corp.
    825,949       0.8       28,842,139  
Other Securities
            1.7       61,875,075  
                         
              2.5       90,717,214  
 
Software & Services 9.9%
Facebook, Inc., Class A *
    284,400       0.6       21,278,808  
Google, Inc., Class A *
    46,741       0.7       27,220,089  
Google, Inc., Class C *
    46,941       0.7       26,831,476  
International Business Machines Corp.
    157,475       0.8       30,282,442  
Microsoft Corp.
    1,248,510       1.6       56,719,809  
Oracle Corp.
    571,843       0.6       23,748,640  
Visa, Inc., Class A
    83,115       0.5       17,663,600  
Other Securities
            4.4       157,010,799  
                         
              9.9       360,755,663  
 
Technology Hardware & Equipment 6.2%
Apple, Inc.
    998,095       2.8       102,304,737  
Cisco Systems, Inc.
    848,800       0.6       21,211,512  
QUALCOMM, Inc.
    278,047       0.6       21,159,377  
Other Securities
            2.2       81,768,722  
                         
              6.2       226,444,348  
 
Telecommunication Services 2.2%
AT&T, Inc.
    858,408       0.8       30,009,944  
Verizon Communications, Inc.
    684,790       0.9       34,116,238  
Other Securities
            0.5       15,130,710  
                         
              2.2       79,256,892  
 
Transportation 2.2%
Union Pacific Corp.
    150,094       0.4       15,800,395  
Other Securities
            1.8       66,281,738  
                         
              2.2       82,082,133  
 
Utilities 3.0%
Other Securities
            3.0       111,740,980  
                         
Total Common Stock
(Cost $2,788,904,595)     3,644,576,745  
         
                         
                         
 
 Other Investment Companies 0.5% of net assets
 
Money Market Fund 0.1%
Other Securities
            0.1       2,472,527  
 
Securities Lending Collateral 0.4%
Other Securities
            0.4       16,438,020  
                         
Total Other Investment Companies
(Cost $18,910,547)     18,910,547  
         
                         
                         
 
 Rights 0.0% of net assets
 
Telecommunication Services 0.0%
Other Securities
            0.0       21,491  
                         
Total Rights
(Cost $21,491)     21,491  
         
                         
                         
Security
  Face Amount
 		  % of Net
 		  Value
Rate, Maturity Date   ($)   Assets   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
Other Securities
            0.0       174,998  
                         
Total Short-Term Investment
(Cost $174,998)     174,998  
         
 
End of Investments.
 
 
 
See financial notes 23

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,808,455,447 and the unrealized appreciation and depreciation were $871,220,916 and ($15,992,582), respectively, with a net unrealized appreciation of $855,228,334.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $17,065,535.
(b) Issuer is affiliated with the fund’s adviser.
(c) Illiquid security. At the period end, the value of these amounted to $21,491 or 0.0% of net assets.
(d) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(e) The rate shown is the 7-day yield.
(f) The rate shown is the purchase yield.
(g) All or a portion of this security is held as collateral for open futures contracts.
 
     
CVR —
  Contingent Value Rights
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
S&P 500 Index, e-mini, Long, expires 09/19/14
    35       3,502,450       19,758  
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $3,644,576,745       $—       $—       $3,644,576,745  
Other Investment Companies1
    18,910,547       —       —       18,910,547  
Rights1
    —       —       21,491       21,491  
Short-Term Investments
    —       174,998       —       174,998  
                                 
Total
    $3,663,487,292       $174,998       $21,491       $3,663,683,781  
                                 
Other Financial Instruments
                               
Futures Contracts2
    $19,758       $—       $—       $19,758  
 
     
1
  As categorized in the complete schedule of portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    August 31,
 		  Gains
 		  Gains
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  August 31,
Investments in Securities
 
2013
 
(Losses)
 
(Losses)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Rights
    $—       $—       $—       $21,491       $—       $—       $—       $21,491  
                                                                 
Total
    $—       $—       $—       $21,491       $—       $—       $—       $21,491  
                                                                 
 
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, 2014.
 
 
 
24 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments in affiliated issuers, at value (cost $3,807,513)
        $5,488,717  
Investments in unaffiliated issuers, at value (cost $2,787,766,098) including securities on loan of $17,065,535
        3,641,757,044  
Collateral invested for securities on loan, at value (cost $16,438,020)
  +     16,438,020  
   
Total investments, at value (cost $2,808,011,631)
        3,663,683,781  
Receivables:
           
Investments sold
        3,246  
Dividends
        6,753,738  
Income from securities on loan
        41,249  
Foreign tax reclaims
        8,528  
Variation margin on futures contracts
  +     8,225  
   
Total assets
        3,670,498,767  
 
Liabilities
Collateral held for securities on loan
        16,438,020  
Payables:
           
Investment adviser fees
  +     23,949  
   
Total liabilities
        16,461,969  
 
Net Assets
Total assets
        3,670,498,767  
Total liabilities
  −     16,461,969  
   
Net assets
        $3,654,036,798  
 
Net Assets by Source
Capital received from investors
        2,794,018,981  
Net investment income not yet distributed
        9,607,306  
Net realized capital losses
        (5,281,397 )
Net unrealized capital appreciation
        855,691,908  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$3,654,036,798
      74,950,000         $48.75      
 
 
 
See financial notes 25

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends received from affiliated issuer
        $41,304  
Dividends received from unaffiliated issuers (net of foreign withholding tax of $11,121)
        57,445,930  
Interest
        1  
Securities on loan
  +     409,322  
   
Total investment income
        57,896,557  
 
Expenses
Investment adviser fees
        1,196,492  
   
Total expenses
  −     1,196,492  
   
Net investment income
        56,700,065  
 
Realized and Unrealized Gains (Losses)
Net realized gains on affiliated issuer
        75,620  
Net realized gains on unaffiliated investments
        1,187,566  
Net realized gains on in-kind redemptions
  +     43,180,599  
   
Net realized gains
        44,443,785  
Net change in unrealized appreciation (depreciation) on affiliated issuer
        1,136,377  
Net change in unrealized appreciation (depreciation) on unaffiliated investments
        524,578,161  
Net change in unrealized appreciation (depreciation) on futures contracts
  +     19,758  
   
Net change in unrealized appreciation (depreciation)
  +     525,734,296  
   
Net realized and unrealized gains
        570,178,081  
             
Increase in net assets resulting from operations
        $626,878,146  
 
 
 
26 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $56,700,065       $35,059,379  
Net realized gains
        44,443,785       21,299,132  
Net change in unrealized appreciation (depreciation)
  +     525,734,296       228,484,344  
   
Increase in net assets resulting from operations
        626,878,146       284,842,855  
 
Distributions to Shareholders
Distributions from net investment income
        ($53,302,780 )     ($32,174,430 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        22,550,000       $1,006,196,263       25,500,000       $945,290,050  
Shares redeemed
  +     (2,450,000 )     (108,405,676 )     (2,350,000 )     (88,113,025 )
   
Net transactions in fund shares
        20,100,000       $897,790,587       23,150,000       $857,177,025  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        54,850,000       $2,182,670,845       31,700,000       $1,072,825,395  
Total increase
  +     20,100,000       1,471,365,953       23,150,000       1,109,845,450  
   
End of period
        74,950,000       $3,654,036,798       54,850,000       $2,182,670,845  
   
                                     
Net investment income not yet distributed
                $9,607,306               $6,683,670  
 
 
 
See financial notes 27

Table of Contents

Schwab U.S. Large-Cap ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  10/30/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    39.06       33.49       29.11       24.98       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.83       0.77       0.64       0.53       0.34      
Net realized and unrealized gains (losses)
    8.92       5.56       4.35       4.13       (0.12 )    
   
Total from investment operations
    9.75       6.33       4.99       4.66       0.22      
Less distributions:
                                           
Distributions from net investment income
    (0.82 )     (0.76 )     (0.61 )     (0.53 )     (0.24 )    
   
Net asset value at end of period
    47.99       39.06       33.49       29.11       24.98      
   
Total return (%)
    25.16       19.17       17.36       18.66       0.83 2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.04       0.04       0.08       0.08       0.08 3    
Net investment income (loss)
    1.95       2.18       2.10       1.88       2.01 3    
Portfolio turnover rate4
    5       5       4       5       3 2    
Net assets, end of period ($ x 1,000)
    3,191,644       1,781,282       890,808       615,781       273,503      

1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
28 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .7%   Common Stock     2,468,449,443       3,183,461,956  
  0 .3%   Other Investment Companies     8,789,999       8,859,615  
  0 .0%   Short-Term Investment     100,000       100,000  
 
 
  100 .0%   Total Investments     2,477,339,442       3,192,421,571  
  (0 .0)%   Other Assets and
Liabilities, Net 		            (777,093 )
 
 
  100 .0%   Net Assets             3,191,644,478  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.7% of net assets
 
Automobiles & Components 1.3%
Other Securities
            1.3       40,175,710  
 
Banks 5.6%
Bank of America Corp.
    1,722,056       0.9       27,707,881  
Citigroup, Inc.
    495,497       0.8       25,592,420  
JPMorgan Chase & Co.
    620,892       1.2       36,912,029  
Wells Fargo & Co.
    786,353       1.3       40,449,998  
Other Securities
            1.4       47,781,685  
                         
              5.6       178,444,013  
 
Capital Goods 7.6%
3M Co.
    102,512       0.5       14,761,728  
General Electric Co.
    1,638,419       1.3       42,566,126  
The Boeing Co.
    109,171       0.4       13,842,883  
United Technologies Corp.
    137,164       0.5       14,810,969  
Other Securities
            4.9       155,904,721  
                         
              7.6       241,886,427  
 
Commercial & Professional Services 0.8%
Other Securities
            0.8       25,889,249  
 
Consumer Durables & Apparel 1.4%
Other Securities
            1.4       43,938,482  
 
Consumer Services 1.9%
McDonald’s Corp.
    160,942       0.5       15,083,484  
Other Securities
            1.4       45,448,432  
                         
              1.9       60,531,916  
 
Diversified Financials 4.9%
American Express Co.
    149,053       0.4       13,347,696  
Berkshire Hathaway, Inc., Class B *
    295,102       1.3       40,502,750  
The Charles Schwab Corp. (b)
    191,618       0.2       5,463,029  
Other Securities
            3.0       96,199,339  
                         
              4.9       155,512,814  
 
Energy 10.1%
Chevron Corp.
    310,477       1.3       40,191,248  
ConocoPhillips
    200,455       0.5       16,280,955  
Exxon Mobil Corp.
    701,747       2.2       69,795,757  
Occidental Petroleum Corp.
    128,663       0.4       13,346,213  
Schlumberger Ltd.
    212,617       0.7       23,311,328  
Other Securities
            5.0       160,667,812  
                         
              10.1       323,593,313  
 
Food & Staples Retailing 2.0%
CVS Caremark Corp.
    192,415       0.5       15,287,372  
Wal-Mart Stores, Inc.
    263,458       0.6       19,891,079  
Other Securities
            0.9       29,178,964  
                         
              2.0       64,357,415  
 
Food, Beverage & Tobacco 4.8%
Altria Group, Inc.
    325,385       0.4       14,017,586  
PepsiCo, Inc.
    248,275       0.7       22,962,955  
Philip Morris International, Inc.
    256,054       0.7       21,913,101  
The Coca-Cola Co.
    621,679       0.8       25,936,448  
Other Securities
            2.2       69,262,018  
                         
              4.8       154,092,108  
 
Health Care Equipment & Services 4.4%
UnitedHealth Group, Inc.
    160,494       0.4       13,911,620  
Other Securities
            4.0       128,030,307  
                         
              4.4       141,941,927  
 
Household & Personal Products 1.9%
The Procter & Gamble Co.
    442,782       1.2       36,799,612  
Other Securities
            0.7       25,718,221  
                         
              1.9       62,517,833  
 
Insurance 3.1%
American International Group, Inc.
    238,512       0.4       13,370,983  
Other Securities
            2.7       84,784,209  
                         
              3.1       98,155,192  
 
Materials 3.6%
Other Securities
            3.6       115,960,462  
 
 
 
See financial notes 29

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
Media 3.8%
Comcast Corp., Class A
    423,911       0.7       23,200,649  
The Walt Disney Co.
    264,363       0.7       23,760,947  
Other Securities
            2.4       73,222,915  
                         
              3.8       120,184,511  
 
Pharmaceuticals, Biotechnology & Life Sciences 8.9%
AbbVie, Inc.
    260,588       0.5       14,405,305  
Amgen, Inc.
    123,567       0.5       17,222,768  
Bristol-Myers Squibb Co.
    270,765       0.4       13,714,247  
Gilead Sciences, Inc. *
    250,305       0.8       26,927,812  
Johnson & Johnson
    461,801       1.5       47,902,618  
Merck & Co., Inc.
    479,112       0.9       28,799,422  
Pfizer, Inc.
    1,043,959       1.0       30,681,955  
Other Securities
            3.3       105,368,031  
                         
              8.9       285,022,158  
 
Real Estate 2.9%
Other Securities
            2.9       91,377,751  
 
Retailing 4.3%
Amazon.com, Inc. *
    60,727       0.6       20,588,882  
The Home Depot, Inc.
    223,047       0.7       20,854,895  
Other Securities
            3.0       94,882,372  
                         
              4.3       136,326,149  
 
Semiconductors & Semiconductor Equipment 2.3%
Intel Corp.
    812,355       0.9       28,367,437  
Other Securities
            1.4       46,636,066  
                         
              2.3       75,003,503  
 
Software & Services 10.2%
Facebook, Inc., Class A *
    282,578       0.7       21,142,486  
Google, Inc., Class A *
    46,277       0.8       26,949,874  
Google, Inc., Class C *
    46,277       0.8       26,451,933  
International Business Machines Corp.
    155,137       0.9       29,832,845  
Microsoft Corp.
    1,228,676       1.7       55,818,751  
Oracle Corp.
    559,210       0.7       23,223,991  
Visa, Inc., Class A
    82,223       0.5       17,474,032  
Other Securities
            4.1       123,748,772  
                         
              10.2       324,642,684  
 
Technology Hardware & Equipment 6.3%
Apple, Inc.
    985,323       3.2       100,995,607  
Cisco Systems, Inc.
    839,945       0.7       20,990,226  
QUALCOMM, Inc.
    275,057       0.7       20,931,838  
Other Securities
            1.7       59,749,602  
                         
              6.3       202,667,273  
 
Telecommunication Services 2.4%
AT&T, Inc.
    847,853       0.9       29,640,941  
Verizon Communications, Inc.
    676,584       1.1       33,707,415  
Other Securities
            0.4       12,756,523  
                         
              2.4       76,104,879  
 
Transportation 2.1%
Union Pacific Corp.
    148,669       0.5       15,650,386  
Other Securities
            1.6       50,710,837  
                         
              2.1       66,361,223  
 
Utilities 3.1%
Other Securities
            3.1       98,774,964  
                         
Total Common Stock
(Cost $2,468,449,443)     3,183,461,956  
         
                         
                         
 
 Other Investment Companies 0.3% of net assets
 
Equity Fund 0.0%
Other Securities
            0.0       336,690  
 
Money Market Fund 0.1%
Other Securities
            0.1       1,336,150  
 
Securities Lending Collateral 0.2%
Other Securities
            0.2       7,186,775  
                         
Total Other Investment Companies
(Cost $8,789,999)     8,859,615  
         
                         
                         
Security
  Face Amount
 		  % of Net
 		  Value
Rate, Maturity Date   ($)   Assets   ($)
 
 Short-Term Investment 0.0% of net assets
 
U.S. Treasury Obligation 0.0%
Other Securities
            0.0       100,000  
                         
Total Short-Term Investment
(Cost $100,000)     100,000  
         
 
End of Investments.
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,477,597,346 and the unrealized appreciation and depreciation were $725,352,043 and ($10,527,818), respectively, with a net unrealized appreciation of $714,824,225.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $7,441,350.
(b) Issuer is affiliated with the fund’s adviser.
(c) The rate shown is the 7-day yield.
(d) The rate shown is the purchase yield.
(e) All or a portion of this security is held as collateral for open futures contracts.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
 
 
30 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
S&P 500 Index, e-mini, Long, expires 09/19/14
    20       2,001,400       5,862  
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $3,183,461,956       $—       $—       $3,183,461,956  
Other Investment Companies1
    8,859,615       —       —       8,859,615  
Short-Term Investment
    —       100,000       —       100,000  
                                 
Total
    $3,192,321,571       $100,000       $—       $3,192,421,571  
                                 
Other Financial Instruments
                               
Futures Contracts2
    5,862       —       —       5,862  
 
     
1
  As categorized in the complete schedule of portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
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, 2014.
 
 
 
See financial notes 31

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments in affiliated issuers, at value (cost $3,899,461)
        $5,463,029  
Investments in unaffiliated issuers, at value (cost $2,466,253,206) including securities on loan of $7,441,350
        3,179,771,767  
Collateral invested for securities on loan, at value (cost $7,186,775)
  +     7,186,775  
   
Total investments, at value (cost $2,477,339,442)
        3,192,421,571  
Receivables:
           
Fund shares sold
        14,370,564  
Dividends
        6,230,002  
Income from securities on loan
        18,245  
Foreign tax reclaims
        8,092  
Variation margin on futures contracts
  +     4,700  
   
Total assets
        3,213,053,174  
 
Liabilities
Collateral held for securities on loan
        7,186,775  
Payables:
           
Investments bought
        14,201,072  
Investment adviser fees
  +     20,849  
   
Total liabilities
        21,408,696  
 
Net Assets
Total assets
        3,213,053,174  
Total liabilities
  −     21,408,696  
   
Net assets
        $3,191,644,478  
 
Net Assets by Source
Capital received from investors
        2,472,681,731  
Net investment income not yet distributed
        9,252,242  
Net realized capital losses
        (5,377,486 )
Net unrealized capital appreciation
        715,087,991  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$3,191,644,478
      66,500,000         $47.99      
 
 
 
32 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends received from affiliated issuer
        $38,915  
Dividends received from unaffiliated issuers (net of foreign withholding tax of $10,005)
        49,117,759  
Interest
        1  
Securities on loan
  +     136,436  
   
Total investment income
        49,293,111  
 
Expenses
Investment adviser fees
        988,735  
   
Total expenses
  −     988,735  
   
Net investment income
        48,304,376  
 
Realized and Unrealized Gains (Losses)
Net realized gains on affiliated issuer
        43,440  
Net realized gains on unaffiliated investments
        1,719,182  
Net realized gains on in-kind redemptions
  +     23,901,558  
   
Net realized gains
        25,664,180  
Net change in unrealized appreciation (depreciation) on affiliated issuer
        1,089,717  
Net change in unrealized appreciation (depreciation) on unaffiliated investments
        450,826,814  
Net change in unrealized appreciation (depreciation) on futures contracts
  +     5,862  
   
Net change in unrealized appreciation (depreciation)
  +     451,922,393  
   
Net realized and unrealized gains
        477,586,573  
             
Increase in net assets resulting from operations
        $525,890,949  
 
 
 
See financial notes 33

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $48,304,376       $28,040,996  
Net realized gains
        25,664,180       17,040,438  
Net change in unrealized appreciation (depreciation)
  +     451,922,393       167,106,932  
   
Increase in net assets resulting from operations
        525,890,949       212,188,366  
 
Distributions to Shareholders
Distributions from net investment income
        ($44,577,680 )     ($25,323,080 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        22,650,000       $1,002,867,160       20,800,000       $771,113,187  
Shares redeemed
  +     (1,750,000 )     (73,817,744 )     (1,800,000 )     (67,504,590 )
   
Net transactions in fund shares
        20,900,000       $929,049,416       19,000,000       $703,608,597  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        45,600,000       $1,781,281,793       26,600,000       $890,807,910  
Total increase
  +     20,900,000       1,410,362,685       19,000,000       890,473,883  
   
End of period
        66,500,000       $3,191,644,478       45,600,000       $1,781,281,793  
   
                                     
Net investment income not yet distributed
                $9,252,242               $5,860,258  
 
 
 
34 See financial notes

Table of Contents

Schwab U.S. Large-Cap Growth ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  12/9/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    39.60       34.05       29.44       24.21       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.56       0.55       0.36       0.27       0.15      
Net realized and unrealized gains (losses)
    10.50       5.52       4.59       5.20       (0.83 )    
   
Total from investment operations
    11.06       6.07       4.95       5.47       (0.68 )    
Less distributions:
                                           
Distributions from net investment income
    (0.55 )     (0.52 )     (0.34 )     (0.24 )     (0.11 )    
   
Net asset value at end of period
    50.11       39.60       34.05       29.44       24.21      
   
Total return (%)
    28.11       18.02       16.96       22.57       (2.75 )2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.07       0.07       0.13       0.13       0.14 3,4    
Net investment income (loss)
    1.29       1.55       1.17       0.93       0.86 3    
Portfolio turnover rate5
    7       11       8       10       6 2    
Net assets, end of period ($ x 1,000)
    1,485,805       827,613       475,062       309,155       108,946      

1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
5 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 35

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .8%   Common Stock     1,093,683,669       1,482,757,384  
  0 .4%   Other Investment Companies     5,962,623       5,996,132  
 
 
  100 .2%   Total Investments     1,099,646,292       1,488,753,516  
  (0 .2)%   Other Assets and
Liabilities, Net 		            (2,948,893 )
 
 
  100 .0%   Net Assets             1,485,804,623  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.8% of net assets
 
Automobiles & Components 0.4%
Other Securities
            0.4       5,559,720  
 
Banks 0.1%
Other Securities
            0.1       2,011,461  
 
Capital Goods 6.1%
Caterpillar, Inc.
    94,464       0.7       10,303,188  
Danaher Corp.
    90,729       0.5       6,950,749  
The Boeing Co.
    101,528       0.9       12,873,750  
Other Securities
            4.0       60,750,938  
                         
              6.1       90,878,625  
 
Commercial & Professional Services 0.8%
Other Securities
            0.8       12,453,945  
 
Consumer Durables & Apparel 2.0%
NIKE, Inc., Class B
    112,092       0.6       8,804,827  
Other Securities
            1.4       21,308,097  
                         
              2.0       30,112,924  
 
Consumer Services 2.2%
Starbucks Corp.
    114,267       0.6       8,891,115  
Other Securities
            1.6       23,321,327  
                         
              2.2       32,212,442  
 
Diversified Financials 6.2%
American Express Co.
    138,196       0.8       12,375,452  
Berkshire Hathaway, Inc., Class B *
    273,073       2.5       37,479,269  
The Charles Schwab Corp. (b)
    175,888       0.3       5,014,567  
Other Securities
            2.6       37,062,699  
                         
              6.2       91,931,987  
 
Energy 8.4%
Anadarko Petroleum Corp.
    76,607       0.6       8,632,843  
EOG Resources, Inc.
    82,807       0.6       9,098,833  
Halliburton Co.
    127,909       0.6       8,647,927  
Schlumberger Ltd.
    197,687       1.5       21,674,403  
Other Securities
            5.1       76,518,458  
                         
              8.4       124,572,464  
 
Food & Staples Retailing 3.4%
Costco Wholesale Corp.
    66,445       0.5       8,045,161  
CVS Caremark Corp.
    176,939       0.9       14,057,804  
Wal-Mart Stores, Inc.
    244,316       1.2       18,445,858  
Walgreen Co.
    132,866       0.5       8,041,050  
Other Securities
            0.3       2,184,364  
                         
              3.4       50,774,237  
 
Food, Beverage & Tobacco 2.3%
PepsiCo, Inc.
    229,912       1.4       21,264,561  
Other Securities
            0.9       12,161,747  
                         
              2.3       33,426,308  
 
Health Care Equipment & Services 6.5%
Express Scripts Holding Co. *
    116,823       0.6       8,636,724  
Medtronic, Inc.
    151,873       0.7       9,697,091  
UnitedHealth Group, Inc.
    148,290       0.9       12,853,777  
Other Securities
            4.3       65,174,368  
                         
              6.5       96,361,960  
 
Household & Personal Products 1.0%
Colgate-Palmolive Co.
    131,973       0.6       8,542,612  
Other Securities
            0.4       6,084,783  
                         
              1.0       14,627,395  
 
Insurance 0.4%
Other Securities
            0.4       5,858,077  
 
Materials 3.1%
LyondellBasell Industries N.V., Class A
    63,564       0.5       7,268,543  
Monsanto Co.
    79,429       0.6       9,185,964  
Other Securities
            2.0       30,250,415  
                         
              3.1       46,704,922  
 
Media 3.8%
Comcast Corp., Class A
    393,879       1.5       21,556,998  
Other Securities
            2.3       34,880,763  
                         
              3.8       56,437,761  
 
 
 
36 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
Pharmaceuticals, Biotechnology & Life Sciences 11.3%
Actavis plc *
    39,973       0.6       9,073,072  
Allergan, Inc.
    44,954       0.5       7,358,071  
Amgen, Inc.
    114,556       1.1       15,966,815  
Biogen Idec, Inc. *
    35,876       0.8       12,306,903  
Celgene Corp. *
    122,230       0.8       11,614,295  
Gilead Sciences, Inc. *
    232,338       1.7       24,994,922  
Johnson & Johnson
    428,706       3.0       44,469,673  
Thermo Fisher Scientific, Inc.
    60,339       0.5       7,253,351  
Other Securities
            2.3       35,490,027  
                         
              11.3       168,527,129  
 
Real Estate 3.1%
Simon Property Group, Inc.
    47,005       0.5       7,992,260  
Other Securities
            2.6       38,408,485  
                         
              3.1       46,400,745  
 
Retailing 5.7%
Amazon.com, Inc. *
    56,402       1.3       19,122,534  
Lowe’s Cos., Inc.
    150,933       0.5       7,925,492  
The Priceline Group, Inc. *
    7,919       0.7       9,853,691  
Other Securities
            3.2       47,813,907  
                         
              5.7       84,715,624  
 
Semiconductors & Semiconductor Equipment 0.8%
Other Securities
            0.8       11,197,969  
 
Software & Services 17.3%
Accenture plc, Class A
    96,495       0.5       7,821,885  
eBay, Inc. *
    172,624       0.6       9,580,632  
Facebook, Inc., Class A *
    260,180       1.3       19,466,668  
Google, Inc., Class A *
    42,858       1.7       24,958,785  
Google, Inc., Class C *
    43,008       1.7       24,583,373  
MasterCard, Inc., Class A
    152,056       0.8       11,527,365  
Microsoft Corp.
    1,138,414       3.5       51,718,148  
Oracle Corp.
    519,597       1.5       21,578,863  
Visa, Inc., Class A
    76,068       1.1       16,165,971  
Other Securities
            4.6       68,897,741  
                         
              17.3       256,299,431  
 
Technology Hardware & Equipment 10.5%
Apple, Inc.
    914,177       6.3       93,703,143  
Cisco Systems, Inc.
    775,394       1.3       19,377,096  
EMC Corp.
    309,799       0.6       9,148,364  
QUALCOMM, Inc.
    255,407       1.3       19,436,473  
Other Securities
            1.0       14,417,181  
                         
              10.5       156,082,257  
 
Telecommunication Services 0.4%
Other Securities
            0.4       5,332,061  
 
Transportation 3.8%
Union Pacific Corp.
    137,045       1.0       14,426,727  
United Parcel Service, Inc., Class B
    107,134       0.7       10,427,352  
Other Securities
            2.1       31,800,269  
                         
              3.8       56,654,348  
 
Utilities 0.2%
Other Securities
            0.2       3,623,592  
                         
Total Common Stock
(Cost $1,093,683,669)     1,482,757,384  
         
                         
                         
 
 Other Investment Companies 0.4% of net assets
 
Equity Fund 0.0%
Other Securities
            0.0       466,250  
 
Money Market Fund 0.1%
Other Securities
            0.1       624,118  
 
Securities Lending Collateral 0.3%
Other Securities
            0.3       4,905,764  
                         
Total Other Investment Companies
(Cost $5,962,623)     5,996,132  
         
 
End of Investments.
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,099,755,291 and the unrealized appreciation and depreciation were $394,453,955 and ($5,455,730), respectively, with a net unrealized appreciation of $388,998,225.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $4,777,840.
(b) Issuer is affiliated with the fund’s adviser.
(c) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
 
 
 
 
See financial notes 37

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $1,482,757,384       $—       $—       $1,482,757,384  
Other Investment Companies1
    5,996,132       —       —       5,996,132  
                                 
Total
    $1,488,753,516       $—       $—       $1,488,753,516  
                                 
 
     
1
  As categorized in the complete schedule of 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, 2014.
 
 
 
38 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments in affiliated issuers, at value (cost $3,478,204)
        $5,014,567  
Investments in unaffiliated issuers, at value (cost $1,091,262,324) including securities on loan of $4,777,840
        1,478,833,185  
Collateral invested for securities on loan, at value (cost $4,905,764)
  +     4,905,764  
   
Total investments, at value (cost $1,099,646,292)
        1,488,753,516  
Receivables:
           
Dividends
        1,951,489  
Income from securities on loan
        14,642  
Foreign tax reclaims
  +     7,730  
   
Total assets
        1,490,727,377  
 
Liabilities
Collateral held for securities on loan
        4,905,764  
Payables:
           
Investment adviser fees
  +     16,990  
   
Total liabilities
        4,922,754  
 
Net Assets
Total assets
        1,490,727,377  
Total liabilities
  −     4,922,754  
   
Net assets
        $1,485,804,623  
 
Net Assets by Source
Capital received from investors
        1,102,123,090  
Net investment income not yet distributed
        2,968,776  
Net realized capital losses
        (8,394,467 )
Net unrealized capital appreciation
        389,107,224  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$1,485,804,623
      29,650,000         $50.11      
 
 
 
See financial notes 39

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends received from affiliated issuer
        $36,785  
Dividends received from unaffiliated issuers (net of foreign withholding tax of $9,599)
        15,652,746  
Securities on loan
  +     98,235  
   
Total investment income
        15,787,766  
 
Expenses
Investment adviser fees
        815,131  
   
Total expenses
  −     815,131  
   
Net investment income
        14,972,635  
 
Realized and Unrealized Gains (Losses)
Net realized gains on affiliated issuer
        39,548  
Net realized gains on unaffiliated investments
        657,368  
Net realized gains on in-kind redemptions
  +     10,337,832  
   
Net realized gains
        11,034,748  
Net change in unrealized appreciation (depreciation) on affiliated issuer
        1,050,626  
Net change in unrealized appreciation (depreciation) on unaffiliated investments
  +     247,339,768  
   
Net change in unrealized appreciation (depreciation)
  +     248,390,394  
   
Net realized and unrealized gains
        259,425,142  
             
Increase in net assets resulting from operations
        $274,397,777  
 
 
 
40 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $14,972,635       $9,674,413  
Net realized gains
        11,034,748       372,254  
Net change in unrealized appreciation (depreciation)
  +     248,390,394       91,118,212  
   
Increase in net assets resulting from operations
        274,397,777       101,164,879  
 
Distributions to Shareholders
Distributions from net investment income
        ($13,914,310 )     ($8,617,825 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        9,250,000       $420,385,407       7,700,000       $287,234,792  
Shares redeemed
  +     (500,000 )     (22,677,152 )     (750,000 )     (27,230,664 )
   
Net transactions in fund shares
        8,750,000       $397,708,255       6,950,000       $260,004,128  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        20,900,000       $827,612,901       13,950,000       $475,061,719  
Total increase
  +     8,750,000       658,191,722       6,950,000       352,551,182  
   
End of period
        29,650,000       $1,485,804,623       20,900,000       $827,612,901  
   
                                     
Net investment income not yet distributed
                $2,968,776               $2,061,801  
 
 
 
See financial notes 41

Table of Contents

Schwab U.S. Large-Cap Value ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  12/9/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    36.49       31.24       27.34       24.36       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    1.00       0.93       0.82       0.70       0.47      
Net realized and unrealized gains (losses)
    7.03       5.24       3.89       2.99       (0.78 )    
   
Total from investment operations
    8.03       6.17       4.71       3.69       (0.31 )    
Less distributions:
                                           
Distributions from net investment income
    (0.98 )     (0.92 )     (0.81 )     (0.71 )     (0.33 )    
   
Net asset value at end of period
    43.54       36.49       31.24       27.34       24.36      
   
Total return (%)
    22.25       20.06       17.53       15.12       (1.29 )2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.07       0.07       0.13       0.13       0.14 3,4    
Net investment income (loss)
    2.54       2.73       2.89       2.68       2.98 3    
Portfolio turnover rate5
    9       9       8       7       5 2    
Net assets, end of period ($ x 1,000)
    1,162,576       700,693       385,791       241,994       84,052      

1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
5 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
42 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .7%   Common Stock     939,758,277       1,158,924,925  
  0 .1%   Other Investment Companies     1,548,517       1,587,326  
 
 
  99 .8%   Total Investments     941,306,794       1,160,512,251  
  0 .2%   Other Assets and
Liabilities, Net 		            2,063,901  
 
 
  100 .0%   Net Assets             1,162,576,152  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.7% of net assets
 
Automobiles & Components 2.2%
Ford Motor Co.
    472,501       0.7       8,226,242  
General Motors Co.
    156,713       0.5       5,453,612  
Other Securities
            1.0       11,301,388  
                         
              2.2       24,981,242  
 
Banks 11.1%
Bank of America Corp.
    1,256,679       1.7       20,219,965  
Citigroup, Inc.
    363,012       1.6       18,749,570  
JPMorgan Chase & Co.
    453,863       2.3       26,982,155  
The PNC Financial Services Group, Inc.
    63,778       0.5       5,405,185  
U.S. Bancorp
    217,150       0.8       9,181,102  
Wells Fargo & Co.
    573,579       2.5       29,504,904  
Other Securities
            1.7       18,901,961  
                         
              11.1       128,944,842  
 
Capital Goods 9.0%
3M Co.
    74,424       0.9       10,717,056  
Emerson Electric Co.
    84,117       0.5       5,385,170  
General Electric Co.
    1,200,123       2.7       31,179,196  
Honeywell International, Inc.
    93,812       0.8       8,933,717  
Lockheed Martin Corp.
    31,755       0.5       5,525,370  
United Technologies Corp.
    100,685       0.9       10,871,966  
Other Securities
            2.7       32,429,548  
                         
              9.0       105,042,023  
 
Commercial & Professional Services 0.8%
Other Securities
            0.8       9,200,745  
 
Consumer Durables & Apparel 0.7%
Other Securities
            0.7       8,545,382  
 
Consumer Services 1.6%
McDonald’s Corp.
    118,121       1.0       11,070,300  
Other Securities
            0.6       7,886,805  
                         
              1.6       18,957,105  
 
Diversified Financials 3.5%
Capital One Financial Corp.
    68,081       0.5       5,586,727  
Morgan Stanley
    167,951       0.5       5,762,399  
The Bank of New York Mellon Corp.
    136,024       0.5       5,329,420  
The Goldman Sachs Group, Inc.
    50,038       0.8       8,962,306  
Other Securities
            1.2       15,368,411  
                         
              3.5       41,009,263  
 
Energy 11.9%
Chevron Corp.
    227,925       2.5       29,504,891  
ConocoPhillips
    146,792       1.0       11,922,446  
Exxon Mobil Corp.
    513,949       4.4       51,117,368  
Occidental Petroleum Corp.
    94,529       0.8       9,805,493  
Phillips 66
    67,428       0.5       5,867,585  
Other Securities
            2.7       30,223,826  
                         
              11.9       138,441,609  
 
Food & Staples Retailing 0.6%
Other Securities
            0.6       7,132,890  
 
Food, Beverage & Tobacco 7.5%
Altria Group, Inc.
    237,723       0.9       10,241,107  
Mondelez International, Inc., Class A
    201,783       0.6       7,302,527  
Philip Morris International, Inc.
    188,071       1.4       16,095,116  
The Coca-Cola Co.
    451,786       1.6       18,848,512  
Other Securities
            3.0       34,069,024  
                         
              7.5       86,556,286  
 
Health Care Equipment & Services 2.4%
Abbott Laboratories
    180,295       0.7       7,615,661  
Other Securities
            1.7       19,981,145  
                         
              2.4       27,596,806  
 
Household & Personal Products 2.9%
The Procter & Gamble Co.
    323,910       2.3       26,920,160  
Other Securities
            0.6       7,052,305  
                         
              2.9       33,972,465  
 
Insurance 5.8%
American International Group, Inc.
    174,103       0.8       9,760,214  
MetLife, Inc.
    134,842       0.6       7,381,251  
 
 
 
See financial notes 43

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
Other Securities
            4.4       49,933,574  
                         
              5.8       67,075,039  
 
Materials 4.1%
E.I. du Pont de Nemours & Co.
    109,327       0.6       7,227,608  
The Dow Chemical Co.
    144,311       0.7       7,727,854  
Other Securities
            2.8       33,110,667  
                         
              4.1       48,066,129  
 
Media 3.7%
The Walt Disney Co.
    192,551       1.5       17,306,484  
Time Warner, Inc.
    105,097       0.7       8,095,622  
Twenty-First Century Fox, Inc., Class A
    228,185       0.7       8,082,313  
Other Securities
            0.8       9,509,662  
                         
              3.7       42,994,081  
 
Pharmaceuticals, Biotechnology & Life Sciences 6.5%
AbbVie, Inc.
    190,037       0.9       10,505,245  
Bristol-Myers Squibb Co.
    199,295       0.9       10,094,292  
Eli Lilly & Co.
    117,557       0.6       7,471,923  
Merck & Co., Inc.
    349,905       1.8       21,032,789  
Pfizer, Inc.
    762,922       1.9       22,422,278  
Other Securities
            0.4       4,229,143  
                         
              6.5       75,755,670  
 
Real Estate 2.6%
Other Securities
            2.6       30,457,866  
 
Retailing 2.9%
The Home Depot, Inc.
    163,684       1.3       15,304,454  
Other Securities
            1.6       17,738,168  
                         
              2.9       33,042,622  
 
Semiconductors & Semiconductor Equipment 4.0%
Intel Corp.
    595,242       1.8       20,785,851  
Texas Instruments, Inc.
    129,341       0.5       6,231,649  
Other Securities
            1.7       18,995,717  
                         
              4.0       46,013,217  
 
Software & Services 3.0%
International Business Machines Corp.
    114,186       1.9       21,957,968  
Other Securities
            1.1       13,346,947  
                         
              3.0       35,304,915  
 
Technology Hardware & Equipment 2.2%
Hewlett-Packard Co.
    225,434       0.7       8,566,492  
Other Securities
            1.5       16,450,533  
                         
              2.2       25,017,025  
 
Telecommunication Services 4.4%
AT&T, Inc.
    621,386       1.9       21,723,655  
Verizon Communications, Inc.
    495,738       2.1       24,697,667  
Other Securities
            0.4       4,986,063  
                         
              4.4       51,407,385  
 
Transportation 0.3%
Other Securities
            0.3       3,966,169  
 
Utilities 6.0%
Duke Energy Corp.
    84,414       0.5       6,245,792  
Other Securities
            5.5       63,198,357  
                         
              6.0       69,444,149  
                         
Total Common Stock
(Cost $939,758,277)     1,158,924,925  
         
                         
                         
 
 Other Investment Companies 0.1% of net assets
 
Equity Fund 0.1%
Other Securities
            0.1       1,129,040  
 
Money Market Fund 0.0%
Other Securities
            0.0       458,084  
 
Securities Lending Collateral 0.0%
Other Securities
            0.0       202  
                         
Total Other Investment Companies
(Cost $1,548,517)     1,587,326  
         
 
End of Investments.

 
At 08/31/14, the tax basis cost of the fund’s investments was $941,769,305 and the unrealized appreciation and depreciation were $220,956,500 and ($2,213,554), respectively, with a net unrealized appreciation of $218,742,946.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $122,158.
(b) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
 
 
 
44 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $1,158,924,925       $—       $—       $1,158,924,925  
Other Investment Companies1
    1,587,326       —       —       1,587,326  
                                 
Total
    $1,160,512,251       $—       $—       $1,160,512,251  
                                 
 
     
1
  As categorized in the complete schedule of 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, 2014.
 
 
 
See financial notes 45

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $941,306,592) including securities on loan of $122,158
        $1,160,512,049  
Collateral invested for securities on loan, at value (cost $202)
  +     202  
   
Total investments, at value (cost $941,306,794)
        1,160,512,251  
Receivables:
           
Dividends
        2,998,500  
Income from securities on loan
  +     87  
   
Total assets
        1,163,510,838  
 
Liabilities
Collateral held for securities on loan
        202  
Payables:
           
Investments bought
        921,152  
Investment adviser fees
  +     13,332  
   
Total liabilities
        934,686  
 
Net Assets
Total assets
        1,163,510,838  
Total liabilities
  −     934,686  
   
Net assets
        $1,162,576,152  
 
Net Assets by Source
Capital received from investors
        942,384,846  
Net investment income not yet distributed
        4,194,771  
Net realized capital losses
        (3,208,922 )
Net unrealized capital appreciation
        219,205,457  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$1,162,576,152
      26,700,000         $43.54      
 
 
 
46 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends
        $23,412,270  
Securities on loan
  +     16,445  
   
Total investment income
        23,428,715  
 
Expenses
Investment adviser fees
        627,219  
   
Total expenses
  −     627,219  
   
Net investment income
        22,801,496  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments
        (711,100 )
Net realized gains on in-kind redemptions
  +     16,450,241  
   
Net realized gains
        15,739,141  
Net change in unrealized appreciation (depreciation) on investments
  +     135,710,697  
   
Net realized and unrealized gains
        151,449,838  
             
Increase in net assets resulting from operations
        $174,251,334  
 
 
 
See financial notes 47

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $22,801,496       $14,394,685  
Net realized gains
        15,739,141       16,349,174  
Net change in unrealized appreciation (depreciation)
  +     135,710,697       52,823,018  
   
Increase in net assets resulting from operations
        174,251,334       83,566,877  
 
Distributions to Shareholders
Distributions from net investment income
        ($21,232,840 )     ($13,282,460 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        8,900,000       $364,173,324       9,400,000       $328,362,220  
Shares redeemed
  +     (1,400,000 )     (55,308,685 )     (2,550,000 )     (83,744,269 )
   
Net transactions in fund shares
        7,500,000       $308,864,639       6,850,000       $244,617,951  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        19,200,000       $700,693,019       12,350,000       $385,790,651  
Total increase
  +     7,500,000       461,883,133       6,850,000       314,902,368  
   
End of period
        26,700,000       $1,162,576,152       19,200,000       $700,693,019  
   
                                     
Net investment income not yet distributed
                $4,194,771               $2,758,069  
 
 
 
48 See financial notes

Table of Contents

Schwab U.S. Mid-Cap ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                     
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  1/12/111–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    32.94       26.56       23.75       25.00      
   
Income (loss) from investment operations:
                                   
Net investment income (loss)
    0.56       0.51       0.37       0.18      
Net realized and unrealized gains (losses)
    7.62       6.40       2.77       (1.29 )    
   
Total from investment operations
    8.18       6.91       3.14       (1.11 )    
Less distributions:
                                   
Distributions from net investment income
    (0.56 )     (0.53 )     (0.33 )     (0.14 )    
   
Net asset value at end of period
    40.56       32.94       26.56       23.75      
   
Total return (%)
    24.97       26.27       13.32       (4.49 )2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                   
Total expenses
    0.07       0.07       0.13       0.13 3    
Net investment income (loss)
    1.53       1.70       1.53       1.18 3    
Portfolio turnover rate4
    9       25       19       9 2    
Net assets, end of period ($ x 1,000)
    1,190,517       611,081       205,840       79,550      

1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 49

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .9%   Common Stock     985,694,317       1,189,455,202  
  0 .9%   Other Investment Companies     10,125,970       10,126,276  
 
 
  100 .8%   Total Investments     995,820,287       1,199,581,478  
  (0 .8)%   Other Assets and
Liabilities, Net 		            (9,064,556 )
 
 
  100 .0%   Net Assets             1,190,516,922  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.9% of net assets
 
Automobiles & Components 1.5%
TRW Automotive Holdings Corp. *
    51,749       0.4       4,982,911  
Other Securities
            1.1       13,143,768  
                         
              1.5       18,126,679  
 
Banks 3.6%
Other Securities
            3.6       43,149,682  
 
Capital Goods 12.0%
B/E Aerospace, Inc. *
    46,453       0.3       3,936,427  
Masco Corp.
    166,409       0.3       3,905,619  
Pall Corp.
    51,157       0.4       4,316,116  
TransDigm Group, Inc.
    22,933       0.4       4,311,175  
United Rentals, Inc. *
    45,277       0.4       5,326,839  
Other Securities
            10.2       121,395,432  
                         
              12.0       143,191,608  
 
Commercial & Professional Services 2.9%
Equifax, Inc.
    57,037       0.4       4,492,234  
Other Securities
            2.5       30,212,881  
                         
              2.9       34,705,115  
 
Consumer Durables & Apparel 4.8%
Hanesbrands, Inc.
    46,453       0.4       4,769,794  
Mohawk Industries, Inc. *
    28,225       0.3       4,121,414  
Newell Rubbermaid, Inc.
    129,365       0.4       4,336,315  
Polaris Industries, Inc.
    30,576       0.4       4,445,139  
Under Armour, Inc., Class A *
    75,696       0.4       5,174,579  
Other Securities
            2.9       34,312,670  
                         
              4.8       57,159,911  
 
Consumer Services 2.8%
H&R Block, Inc.
    128,188       0.4       4,298,144  
Other Securities
            2.4       29,472,241  
                         
              2.8       33,770,385  
 
Diversified Financials 2.7%
Other Securities
            2.7       32,677,087  
 
Energy 7.2%
Cheniere Energy, Inc. *
    102,316       0.7       8,211,882  
Cimarex Energy Co.
    40,573       0.5       5,889,577  
Helmerich & Payne, Inc.
    50,568       0.4       5,312,168  
Tesoro Corp.
    60,567       0.3       3,921,108  
Whiting Petroleum Corp. *
    55,274       0.4       5,121,689  
Other Securities
            4.9       57,026,644  
                         
              7.2       85,483,068  
 
Food & Staples Retailing 0.6%
Other Securities
            0.6       7,341,752  
 
Food, Beverage & Tobacco 1.0%
Other Securities
            1.0       11,555,241  
 
Health Care Equipment & Services 4.5%
Universal Health Services, Inc., Class B
    41,749       0.4       4,777,756  
Other Securities
            4.1       48,570,030  
                         
              4.5       53,347,786  
 
Household & Personal Products 0.7%
Other Securities
            0.7       7,850,152  
 
Insurance 5.6%
Markel Corp. *
    6,468       0.4       4,267,587  
Other Securities
            5.2       62,933,262  
                         
              5.6       67,200,849  
 
Materials 7.6%
International Flavors & Fragrances, Inc.
    38,221       0.3       3,882,871  
Vulcan Materials Co.
    61,154       0.3       3,875,941  
Other Securities
            7.0       83,096,068  
                         
              7.6       90,854,880  
 
Media 1.7%
The Interpublic Group of Cos., Inc.
    197,575       0.3       3,858,640  
Other Securities
            1.4       15,844,723  
                         
              1.7       19,703,363  
 
Pharmaceuticals, Biotechnology & Life Sciences 4.8%
BioMarin Pharmaceutical, Inc. *
    67,621       0.4       4,815,968  
Endo International plc *
    65,423       0.4       4,168,099  
 
 
 
50 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
Hospira, Inc. *
    77,617       0.4       4,171,138  
Jazz Pharmaceuticals plc *
    25,063       0.3       4,083,264  
Pharmacyclics, Inc. *
    31,752       0.3       3,949,631  
Salix Pharmaceuticals Ltd. *
    29,400       0.4       4,677,834  
Other Securities
            2.6       31,160,523  
                         
              4.8       57,026,457  
 
Real Estate 9.2%
CBRE Group, Inc., Class A *
    129,955       0.3       4,129,970  
Essex Property Trust, Inc.
    28,812       0.5       5,573,681  
Federal Realty Investment Trust
    31,272       0.3       3,902,120  
Realty Income Corp.
    102,901       0.4       4,601,733  
SL Green Realty Corp.
    44,689       0.4       4,886,742  
Other Securities
            7.3       86,470,794  
                         
              9.2       109,565,040  
 
Retailing 4.3%
Advance Auto Parts, Inc.
    34,106       0.4       4,652,740  
Foot Locker, Inc.
    68,210       0.3       3,827,263  
LKQ Corp. *
    141,124       0.3       4,007,922  
Signet Jewelers Ltd.
    37,172       0.4       4,381,464  
Tractor Supply Co.
    64,683       0.4       4,330,527  
Other Securities
            2.5       29,549,748  
                         
              4.3       50,749,664  
 
Semiconductors & Semiconductor Equipment 2.1%
Lam Research Corp.
    75,854       0.5       5,454,661  
Skyworks Solutions, Inc.
    88,204       0.4       4,997,639  
Other Securities
            1.2       14,214,742  
                         
              2.1       24,667,042  
 
Software & Services 7.7%
Akamai Technologies, Inc. *
    82,911       0.4       5,009,483  
Computer Sciences Corp.
    67,622       0.3       4,043,119  
Electronic Arts, Inc. *
    145,826       0.5       5,518,056  
FleetCor Technologies, Inc. *
    34,104       0.4       4,900,404  
Other Securities
            6.1       71,884,048  
                         
              7.7       91,355,110  
 
Technology Hardware & Equipment 3.3%
Trimble Navigation Ltd. *
    121,720       0.3       4,048,407  
Other Securities
            3.0       35,798,561  
                         
              3.3       39,846,968  
 
Telecommunication Services 1.2%
Other Securities
            1.2       14,024,566  
 
Transportation 2.9%
American Airlines Group, Inc.
    334,355       1.1       13,009,753  
Other Securities
            1.8       21,626,607  
                         
              2.9       34,636,360  
 
Utilities 5.2%
American Water Works Co., Inc.
    83,499       0.4       4,225,884  
CMS Energy Corp.
    125,246       0.3       3,825,013  
NRG Energy, Inc.
    159,348       0.4       4,904,731  
Other Securities
            4.1       48,510,809  
                         
              5.2       61,466,437  
                         
Total Common Stock
(Cost $985,694,317)     1,189,455,202  
         
                         
                         
 
 Other Investment Companies 0.9% of net assets
 
Equity Fund 0.0%
Other Securities
            0.0       1,309  
 
Money Market Fund 0.0%
Other Securities
            0.0       289,119  
 
Securities Lending Collateral 0.9%
Other Securities
            0.9       9,835,848  
                         
Total Other Investment Companies
(Cost $10,125,970)     10,126,276  
         
 
End of Investments.
 
At 08/31/14, the tax basis cost of the fund’s investments was $996,149,937 and the unrealized appreciation and depreciation were $217,040,653 and ($13,609,112), respectively, with a net unrealized appreciation of $203,431,541.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $12,592,961.
(b) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
 
 
 
See financial notes 51

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $1,189,455,202       $—       $—       $1,189,455,202  
Other Investment Companies1
    10,126,276       —       —       10,126,276  
                                 
Total
    $1,199,581,478       $—       $—       $1,199,581,478  
                                 
 
     
1
  As categorized in the complete schedule of 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, 2014.
 
 
 
52 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $985,984,439) including securities on loan of $12,592,961
        $1,189,745,630  
Collateral invested for securities on loan, at value (cost $9,835,848)
  +     9,835,848  
   
Total investments, at value (cost $995,820,287)
        1,199,581,478  
Receivables:
           
Dividends
        1,106,089  
Income from securities on loan
  +     45,775  
   
Total assets
        1,200,733,342  
 
Liabilities
Collateral held for securities on loan
        9,835,848  
Payables:
           
Investments bought
        366,952  
Investment adviser fees
  +     13,620  
   
Total liabilities
        10,216,420  
 
Net Assets
Total assets
        1,200,733,342  
Total liabilities
  −     10,216,420  
   
Net assets
        $1,190,516,922  
 
Net Assets by Source
Capital received from investors
        993,473,080  
Net investment income not yet distributed
        1,026,552  
Net realized capital losses
        (7,743,901 )
Net unrealized capital appreciation
        203,761,191  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$1,190,516,922
      29,350,000         $40.56      
 
 
 
See financial notes 53

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends (net of foreign withholding tax of $7,254)
        $14,870,319  
Securities on loan
  +     372,840  
   
Total investment income
        15,243,159  
 
Expenses
Investment adviser fees
        667,772  
   
Total expenses
  −     667,772  
   
Net investment income
        14,575,387  
 
Realized and Unrealized Gains (Losses)
Net realized gains on investments
        651,744  
Net realized gains on in-kind redemptions
  +     32,656,810  
   
Net realized gains
        33,308,554  
Net change in unrealized appreciation (depreciation) on investments
  +     142,865,701  
   
Net realized and unrealized gains
        176,174,255  
             
Increase in net assets resulting from operations
        $190,749,642  
 
 
 
54 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $14,575,387       $6,975,894  
Net realized gains
        33,308,554       20,516,426  
Net change in unrealized appreciation (depreciation)
  +     142,865,701       59,061,955  
   
Increase in net assets resulting from operations
        190,749,642       86,554,275  
 
Distributions to Shareholders
Distributions from net investment income
        ($14,140,400 )     ($6,489,136 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        13,850,000       $515,129,958       14,550,000       $441,831,535  
Shares redeemed
  +     (3,050,000 )     (112,303,454 )     (3,750,001 )     (116,655,372 )
   
Net transactions in fund shares
        10,800,000       $402,826,504       10,799,999       $325,176,163  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        18,550,000       $611,081,176       7,750,001       $205,839,874  
Total increase
  +     10,800,000       579,435,746       10,799,999       405,241,302  
   
End of period
        29,350,000       $1,190,516,922       18,550,000       $611,081,176  
   
                                     
Net investment income not yet distributed
                $1,026,552               $986,406  
 
 
 
See financial notes 55

Table of Contents

Schwab U.S. Small-Cap ETF™
 
 
Financial Statements
 
Financial Highlights
 
                                             
    9/1/13–
 		  9/1/12–
 		  9/1/11–
 		  9/1/10–
 		  10/30/091–
 		   
    8/31/14   8/31/13   8/31/12   8/31/11   8/31/10    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    45.71       36.55       32.34       26.48       25.00      
   
Income (loss) from investment operations:
                                           
Net investment income (loss)
    0.73       0.74       0.49       0.39       0.23      
Net realized and unrealized gains (losses)
    8.84       9.18       4.16       5.86       1.45 2    
   
Total from investment operations
    9.57       9.92       4.65       6.25       1.68      
Less distributions:
                                           
Distributions from net investment income
    (0.75 )     (0.76 )     (0.44 )     (0.39 )     (0.20 )    
   
Net asset value at end of period
    54.53       45.71       36.55       32.34       26.48      
   
Total return (%)
    21.01       27.47       14.52       23.55       6.67 3    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                                           
Total expenses
    0.08       0.09 4     0.13       0.13       0.14 5,6    
Net investment income (loss)
    1.41       1.74       1.44       1.17       1.05 5    
Portfolio turnover rate7
    13       22       12       11       8 3    
Net assets, end of period ($ x 1,000)
    2,104,717       1,446,857       641,516       462,523       193,310      

1 Commencement of operations.
2 The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
3 Not annualized.
4 Effective September 20, 2012, the annual operating expense ratio was reduced to 0.10%. On March 11, 2013, the rate was further reduced to 0.08%. The ratio presented for the period ended 8/31/13 is a blended ratio.
5 Annualized.
6 Effective June 14, 2010, the annual operating expense ratio was reduced. The ratio presented for period ended 8/31/10 is a blended ratio.
7 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
56 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .9%   Common Stock     1,697,595,459       2,101,639,329  
  2 .9%   Other Investment Companies     61,610,828       61,610,828  
  0 .0%   Rights     115,419       115,419  
  0 .0%   Short-Term Investment     99,999       99,999  
  0 .0%   Warrants     —       —  
 
 
  102 .8%   Total Investments     1,759,421,705       2,163,465,575  
  (2 .8)%   Other Assets and
Liabilities, Net 		            (58,748,908 )
 
 
  100 .0%   Net Assets             2,104,716,667  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.9% of net assets
 
Automobiles & Components 1.5%
The Goodyear Tire & Rubber Co.
    227,026       0.3       5,895,865  
Visteon Corp. *
    39,817       0.2       4,029,082  
Other Securities
            1.0       21,524,470  
                         
              1.5       31,449,417  
 
Banks 7.5%
East West Bancorp, Inc.
    117,927       0.2       4,108,577  
Signature Bank *
    40,940       0.2       4,849,752  
SVB Financial Group *
    40,881       0.2       4,550,873  
Other Securities
            6.9       143,969,716  
                         
              7.5       157,478,918  
 
Capital Goods 10.5%
Acuity Brands, Inc.
    35,489       0.2       4,396,377  
Huntington Ingalls Industries, Inc.
    40,293       0.2       4,114,318  
Spirit AeroSystems Holdings, Inc., Class A *
    105,245       0.2       4,036,146  
The Middleby Corp. *
    47,102       0.2       4,061,605  
Trinity Industries, Inc.
    127,393       0.3       6,163,273  
Other Securities
            9.4       197,592,481  
                         
              10.5       220,364,200  
 
Commercial & Professional Services 3.0%
Pitney Bowes, Inc.
    166,657       0.2       4,509,738  
Other Securities
            2.8       57,783,566  
                         
              3.0       62,293,304  
 
Consumer Durables & Apparel 2.5%
Harman International Industries, Inc.
    56,004       0.3       6,444,940  
Other Securities
            2.2       45,061,414  
                         
              2.5       51,506,354  
 
Consumer Services 3.5%
Other Securities
            3.5       74,489,309  
 
Diversified Financials 2.6%
E*TRADE Financial Corp. *
    237,180       0.3       5,279,627  
Other Securities
            2.3       48,932,407  
                         
              2.6       54,212,034  
 
Energy 6.2%
Energen Corp.
    59,855       0.2       4,817,130  
Gulfport Energy Corp. *
    69,716       0.2       4,078,386  
Newfield Exploration Co. *
    112,134       0.2       5,025,846  
Patterson-UTI Energy, Inc.
    118,834       0.2       4,104,526  
WPX Energy, Inc. *
    166,784       0.2       4,439,790  
Other Securities
            5.2       107,375,535  
                         
              6.2       129,841,213  
 
Food & Staples Retailing 0.8%
Rite Aid Corp. *
    731,695       0.2       4,551,143  
Other Securities
            0.6       12,840,809  
                         
              0.8       17,391,952  
 
Food, Beverage & Tobacco 1.8%
The Hain Celestial Group, Inc. *
    41,449       0.2       4,076,924  
The WhiteWave Foods Co. *
    141,384       0.2       4,951,268  
Other Securities
            1.4       28,082,586  
                         
              1.8       37,110,778  
 
Health Care Equipment & Services 5.4%
athenahealth, Inc. *
    31,309       0.2       4,522,272  
Brookdale Senior Living, Inc. *
    139,735       0.2       4,883,738  
Other Securities
            5.0       104,391,191  
                         
              5.4       113,797,201  
 
Household & Personal Products 0.4%
Other Securities
            0.4       7,455,568  
 
Insurance 3.2%
Protective Life Corp.
    64,670       0.2       4,488,098  
Other Securities
            3.0       62,797,183  
                         
              3.2       67,285,281  
 
 
 
See financial notes 57

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
Materials 5.7%
Eagle Materials, Inc.
    41,787       0.2       4,258,513  
Steel Dynamics, Inc.
    196,860       0.2       4,575,026  
United States Steel Corp.
    119,013       0.2       4,599,852  
Other Securities
            5.1       107,195,117  
                         
              5.7       120,628,508  
 
Media 1.6%
Other Securities
            1.6       32,852,229  
 
Pharmaceuticals, Biotechnology & Life Sciences 6.6%
Alkermes plc *
    120,136       0.3       5,373,683  
Cubist Pharmaceuticals, Inc. *
    61,429       0.2       4,240,444  
InterMune, Inc. *
    86,551       0.3       6,357,171  
Isis Pharmaceuticals, Inc. *
    98,511       0.2       4,015,308  
Jazz Pharmaceuticals plc *
    44,330       0.3       7,222,244  
Mallinckrodt plc *
    90,092       0.3       7,341,604  
Puma Biotechnology, Inc. *
    16,544       0.2       4,309,877  
Salix Pharmaceuticals Ltd. *
    52,377       0.4       8,333,704  
United Therapeutics Corp. *
    36,297       0.2       4,276,876  
Other Securities
            4.2       87,329,097  
                         
              6.6       138,800,008  
 
Real Estate 10.3%
American Realty Capital Properties, Inc.
    741,721       0.5       9,761,048  
Mid-America Apartment Communities, Inc.
    61,611       0.2       4,455,708  
Starwood Property Trust, Inc.
    181,311       0.2       4,324,267  
The Howard Hughes Corp. *
    25,716       0.2       4,072,643  
Other Securities
            9.2       195,155,483  
                         
              10.3       217,769,149  
 
Retailing 4.0%
Other Securities
            4.0       83,651,820  
 
Semiconductors & Semiconductor Equipment 3.5%
First Solar, Inc. *
    58,460       0.2       4,073,493  
SunEdison, Inc. *
    202,997       0.2       4,472,024  
Other Securities
            3.1       65,761,451  
                         
              3.5       74,306,968  
 
Software & Services 7.6%
Broadridge Financial Solutions, Inc.
    99,242       0.2       4,221,755  
Splunk, Inc. *
    74,642       0.2       4,026,936  
Yelp, Inc. *
    48,128       0.2       3,966,710  
Other Securities
            7.0       148,416,647  
                         
              7.6       160,632,048  
 
Technology Hardware & Equipment 5.0%
Other Securities
            5.0       105,698,578  
 
Telecommunication Services 0.5%
Other Securities
            0.5       11,236,033  
 
Transportation 3.5%
Alaska Air Group, Inc.
    113,036       0.2       5,238,088  
American Airlines Group, Inc.
    592,339       1.1       23,047,910  
Avis Budget Group, Inc. *
    86,684       0.3       5,852,037  
Spirit Airlines, Inc. *
    59,824       0.2       4,211,011  
Other Securities
            1.7       35,635,717  
                         
              3.5       73,984,763  
 
Utilities 2.7%
Atmos Energy Corp.
    82,392       0.2       4,165,740  
Other Securities
            2.5       53,237,956  
                         
              2.7       57,403,696  
                         
Total Common Stock
(Cost $1,697,595,459)     2,101,639,329  
         
                         
                         
 
 Other Investment Companies 2.9% of net assets
 
Money Market Fund 0.1%
Other Securities
            0.1       1,475,661  
 
Securities Lending Collateral 2.8%
Other Securities
            2.8       60,135,167  
                         
Total Other Investment Companies
(Cost $61,610,828)     61,610,828  
         
                         
                         
 
 Rights 0.0% of net assets
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Other Securities
            0.0       —  
 
Telecommunication Services 0.0%
Other Securities
            0.0       115,419  
                         
Total Rights
(Cost $115,419)     115,419  
         
                         
                         
 
 Warrants 0.0% of net assets
 
Energy 0.0%
Other Securities
            0.0       —  
                         
Total Warrants
(Cost $—)     —  
         
                         
                         
Security
  Face Amount
 		  % of Net
 		  Value
Rate, Maturity Date   ($)   Assets   ($)
 
 Short-Term Investment 0.0% of net assets
 
U.S. Treasury Obligation 0.0%
Other Securities
            0.0       99,999  
                         
Total Short-Term Investment
(Cost $99,999)     99,999  
         
 
End of Investments.

 
 
 
58 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
At 08/31/14, the tax basis cost of the fund’s investments was $1,761,255,152 and the unrealized appreciation and depreciation were $458,520,773 and ($56,310,350), respectively, with a net unrealized appreciation of $402,210,423.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $59,854,274.
(b) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c) Illiquid security. At the period end, the value of these amounted to $115,419 or 0.0% of net assets.
(d) The rate shown is the 7-day yield.
(e) The rate shown is the purchase yield.
(f) All or a portion of this security is held as collateral for open futures contracts.
 
     
CVR —
  Contingent Value Rights
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 8/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
Russell 2000 Index, e-mini, Long, expires 09/19/14
    5       586,700       21,390  
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $2,101,639,329       $—       $—       $2,101,639,329  
Other Investment Companies1
    61,610,828       —       —       61,610,828  
Rights1
    —       —       115,419       115,419  
Warrants1
    —       —       —       —  
Short-Term Investment
    —       99,999       —       99,999  
                                 
Total
    $2,163,250,157       $99,999       $115,419       $2,163,465,575  
                                 
Other Financial Instruments
                               
Futures Contracts2
    $21,390       $—       $—       $21,390  
 
     
1
  As categorized in the complete schedule of portfolio holdings.
2
  Futures contracts are not included in Investments in the schedule of portfolio holdings and are valued at unrealized appreciation or depreciation.
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    August 31,
 		  Gains
 		  Gains
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  August 31,
Investments in Securities
 
2013
 
(Losses)
 
(Losses)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Rights
    $—       $—       $—       $115,419       $—       $—       $—       $115,419  
                                                                 
Total
    $—       $—       $—       $115,419       $—       $—       $—       $115,419  
                                                                 
 
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, 2014.
 
 
 
See financial notes 59

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $1,699,286,538) including securities on loan of $59,854,274
        $2,103,330,408  
Collateral invested for securities on loan, at value (cost $60,135,167)
  +     60,135,167  
   
Total investments, at value (cost $1,759,421,705)
        2,163,465,575  
Receivables:
           
Investments sold
        21,311  
Dividends
        1,766,049  
Income from securities on loan
        198,288  
Variation margin on futures contracts
  +     3,550  
   
Total assets
        2,165,454,773  
 
Liabilities
Collateral held for securities on loan
        60,135,167  
Payables:
           
Investments bought
        575,400  
Investment adviser fees
  +     27,539  
   
Total liabilities
        60,738,106  
 
Net Assets
Total assets
        2,165,454,773  
Total liabilities
  −     60,738,106  
   
Net assets
        $2,104,716,667  
 
Net Assets by Source
Capital received from investors
        1,717,223,257  
Net investment income not yet distributed
        428,607  
Net realized capital losses
        (17,000,457 )
Net unrealized capital appreciation
        404,065,260  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$2,104,716,667
      38,600,000         $54.53      
 
 
 
60 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends (net of foreign withholding tax of $2,943)
        $26,005,183  
Interest
        1  
Securities on loan
  +     2,203,991  
   
Total investment income
        28,209,175  
 
Expenses
Investment adviser fees
        1,516,864  
   
Total expenses
  −     1,516,864  
   
Net investment income
        26,692,311  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments
        (696,183 )
Net realized gains on in-kind redemptions
        77,126,790  
Net realized gains on futures contracts
  +     9,402  
   
Net realized gains
        76,440,009  
Net change in unrealized appreciation (depreciation) on investments
        218,350,756  
Net change in unrealized appreciation (depreciation) on futures contracts
  +     21,390  
   
Net change in unrealized appreciation (depreciation)
  +     218,372,146  
   
Net realized and unrealized gains
        294,812,155  
             
Increase in net assets resulting from operations
        $321,504,466  
 
 
 
See financial notes 61

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $26,692,311       $17,041,896  
Net realized gains
        76,440,009       39,537,428  
Net change in unrealized appreciation (depreciation)
  +     218,372,146       163,291,817  
   
Increase in net assets resulting from operations
        321,504,466       219,871,141  
 
Distributions to Shareholders
Distributions from net investment income
        ($27,201,420 )     ($16,364,820 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        10,900,000       $564,215,091       19,050,000       $801,652,843  
Shares redeemed
  +     (3,950,000 )     (200,658,054 )     (4,950,000 )     (199,818,780 )
   
Net transactions in fund shares
        6,950,000       $363,557,037       14,100,000       $601,834,063  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        31,650,000       $1,446,856,584       17,550,000       $641,516,200  
Total increase
  +     6,950,000       657,860,083       14,100,000       805,340,384  
   
End of period
        38,600,000       $2,104,716,667       31,650,000       $1,446,856,584  
   
                                     
Net investment income not yet distributed
                $428,607               $1,480,574  
 
 
 
62 See financial notes

Table of Contents

Schwab U.S. Dividend Equity ETF™
 
 
Financial Statements
 
Financial Highlights
 
                             
    9/1/13–
 		  9/1/12–
 		  10/19/111–
 		   
    8/31/14   8/31/13   8/31/12    
 
 
Per-Share Data ($)
Net asset value at beginning of period
    33.00       28.58       25.00      
   
Income (loss) from investment operations:
                           
Net investment income (loss)
    1.04       0.91       0.62      
Net realized and unrealized gains (losses)
    5.86       4.40       3.43      
   
Total from investment operations
    6.90       5.31       4.05      
Less distributions:
                           
Distributions from net investment income
    (1.00 )     (0.89 )     (0.47 )    
   
Net asset value at end of period
    38.90       33.00       28.58      
   
Total return (%)
    21.15       18.93       16.31 2    
 
Ratios/Supplemental Data (%)
Ratios to average net assets:
                           
Total expenses
    0.07       0.07       0.17 3    
Net investment income (loss)
    3.01       3.09       3.19 3    
Portfolio turnover rate4
    26       13       17 2    
Net assets, end of period ($ x 1,000)
    2,075,331       1,141,690       504,464      

1 Commencement of operations.
2 Not annualized.
3 Annualized.
4 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
 
 
 
See financial notes 63

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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 ETFsTM 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   ($)   ($)
 
  99 .7%   Common Stock     1,779,216,306       2,069,141,410  
  0 .1%   Other Investment Companies     1,052,105       1,078,492  
 
 
  99 .8%   Total Investments     1,780,268,411       2,070,219,902  
  0 .2%   Other Assets and
Liabilities, Net 		            5,111,170  
 
 
  100 .0%   Net Assets             2,075,331,072  
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
 
 Common Stock 99.7% of net assets
 
Banks 0.1%
Other Securities
            0.1       1,976,804  
 
Capital Goods 12.7%
3M Co.
    306,360       2.1       44,115,840  
Eaton Corp. plc
    234,544       0.8       16,373,517  
Emerson Electric Co.
    345,710       1.1       22,132,354  
General Dynamics Corp.
    160,589       1.0       19,792,594  
Illinois Tool Works, Inc.
    187,197       0.8       16,512,647  
Lockheed Martin Corp.
    131,311       1.1       22,848,114  
Northrop Grumman Corp.
    105,780       0.6       13,457,332  
Raytheon Co.
    154,410       0.7       14,875,859  
The Boeing Co.
    330,314       2.0       41,883,815  
United Technologies Corp.
    416,214       2.2       44,942,788  
Other Securities
            0.3       6,066,343  
                         
              12.7       263,001,203  
 
Commercial & Professional Services 0.1%
Other Securities
            0.1       1,738,728  
 
Consumer Durables & Apparel 0.8%
Other Securities
            0.8       16,230,287  
 
Consumer Services 2.7%
McDonald’s Corp.
    487,968       2.2       45,732,361  
Other Securities
            0.5       10,800,333  
                         
              2.7       56,532,694  
 
Diversified Financials 0.7%
T. Rowe Price Group, Inc.
    128,705       0.5       10,424,461  
Other Securities
            0.2       3,768,217  
                         
              0.7       14,192,678  
 
Energy 12.7%
Chevron Corp.
    729,725       4.6       94,462,901  
ConocoPhillips
    605,466       2.4       49,175,949  
Exxon Mobil Corp.
    895,146       4.3       89,031,221  
The Williams Cos., Inc.
    338,094       1.0       20,096,307  
Other Securities
            0.4       11,150,840  
                         
              12.7       263,917,218  
 
Food & Staples Retailing 3.4%
Sysco Corp.
    287,428       0.5       10,873,401  
Wal-Mart Stores, Inc.
    794,852       2.9       60,011,326  
                         
              3.4       70,884,727  
 
Food, Beverage & Tobacco 11.4%
Altria Group, Inc.
    978,865       2.0       42,169,504  
ConAgra Foods, Inc.
    206,564       0.3       6,651,361  
General Mills, Inc.
    303,336       0.8       16,192,076  
Kellogg Co.
    126,258       0.4       8,202,982  
PepsiCo, Inc.
    747,394       3.3       69,126,471  
Reynolds American, Inc.
    152,975       0.4       8,944,448  
The Coca-Cola Co.
    1,863,369       3.7       77,739,755  
Other Securities
            0.5       6,988,829  
                         
              11.4       236,015,426  
 
Health Care Equipment & Services 1.3%
Baxter International, Inc.
    267,533       1.0       20,059,624  
Other Securities
            0.3       6,330,659  
                         
              1.3       26,390,283  
 
Household & Personal Products 7.1%
Colgate-Palmolive Co.
    429,621       1.3       27,809,368  
Kimberly-Clark Corp.
    185,829       1.0       20,069,532  
The Procter & Gamble Co.
    1,141,112       4.6       94,837,818  
Other Securities
            0.2       5,643,820  
                         
              7.1       148,360,538  
 
Insurance 1.0%
Aflac, Inc.
    223,941       0.7       13,714,147  
Other Securities
            0.3       7,319,015  
                         
              1.0       21,033,162  
 
Materials 4.3%
Air Products & Chemicals, Inc.
    104,804       0.7       13,960,941  
E.I. du Pont de Nemours & Co.
    452,028       1.4       29,883,571  
International Paper Co.
    214,061       0.5       10,371,255  
The Dow Chemical Co.
    594,424       1.5       31,831,405  
Other Securities
            0.2       4,143,803  
                         
              4.3       90,190,975  
 
Media 0.7%
Omnicom Group, Inc.
    127,112       0.4       9,153,335  
 
 
 
64 See financial notes

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

 
Portfolio Holdings continued
 
                         
    Number
 		  % of Net
 		  Value
Security   of Shares   Assets   ($)
Other Securities
            0.3       4,613,778  
                         
              0.7       13,767,113  
 
Pharmaceuticals, Biotechnology & Life Sciences 10.3%
Eli Lilly & Co.
    484,651       1.5       30,804,418  
Johnson & Johnson
    884,011       4.4       91,698,461  
Pfizer, Inc.
    3,103,411       4.4       91,209,249  
                         
              10.3       213,712,128  
 
Retailing 4.5%
Target Corp.
    312,660       0.9       18,781,486  
The Home Depot, Inc.
    674,758       3.0       63,089,873  
Other Securities
            0.6       11,530,189  
                         
              4.5       93,401,548  
 
Semiconductors & Semiconductor Equipment 6.7%
Analog Devices, Inc.
    155,437       0.4       7,945,940  
Intel Corp.
    2,453,936       4.1       85,691,445  
Texas Instruments, Inc.
    531,631       1.2       25,613,982  
Other Securities
            1.0       19,946,089  
                         
              6.7       139,197,456  
 
Software & Services 6.4%
Automatic Data Processing, Inc.
    237,591       1.0       19,834,097  
Microsoft Corp.
    2,235,438       4.9       101,555,948  
Other Securities
            0.5       11,105,239  
                         
              6.4       132,495,284  
 
Technology Hardware & Equipment 0.2%
Other Securities
            0.2       3,743,406  
 
Telecommunication Services 8.7%
AT&T, Inc.
    2,558,468       4.3       89,444,041  
Verizon Communications, Inc.
    1,850,447       4.4       92,189,270  
                         
              8.7       181,633,311  
 
Transportation 3.4%
CSX Corp.
    495,235       0.7       15,307,714  
Norfolk Southern Corp.
    153,073       0.8       16,378,811  
United Parcel Service, Inc., Class B
    347,646       1.6       33,836,385  
Other Securities
            0.3       4,973,765  
                         
              3.4       70,496,675  
 
Utilities 0.5%
Other Securities
            0.5       10,229,766  
                         
Total Common Stock
(Cost $1,779,216,306)     2,069,141,410  
         
                         
                         
 
 Other Investment Companies 0.1% of net assets
 
Equity Fund 0.0%
Other Securities
            0.0       390,600  
 
Money Market Fund 0.1%
Other Securities
            0.1       687,892  
                         
Total Other Investment Companies
(Cost $1,052,105)     1,078,492  
         
 
End of Investments.
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,780,166,224 and the unrealized appreciation and depreciation were $300,887,352 and ($10,833,674), respectively, with a net unrealized appreciation of $290,053,678.
 
For the following notes, please refer to the complete schedule of portfolio holdings.
 
(a) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
 
 
The following is a summary of the inputs used to value the fund’s investments as of August 31, 2014 (see financial note 2(a) for additional information):
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $2,069,141,410       $—       $—       $2,069,141,410  
Other Investment Companies1
    1,078,492       —       —       1,078,492  
                                 
Total
    $2,070,219,902       $—       $—       $2,070,219,902  
                                 
 
     
1
  As categorized in the complete schedule of 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 year ended August 31, 2014.
 
 
 
See financial notes 65

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

Statement of
Assets and Liabilities
As of August 31, 2014
 
             
 
Assets
Investments, at value (cost $1,780,268,411)
        $2,070,219,902  
Receivables:
           
Investments sold
        1,559,900  
Dividends
        7,855,255  
Fund shares sold
  +     5,818,176  
   
Total assets
        2,085,453,233  
 
Liabilities
Payables:
           
Investments bought
        10,098,448  
Investment adviser fees
  +     23,713  
   
Total liabilities
        10,122,161  
 
Net Assets
Total assets
        2,085,453,233  
Total liabilities
  −     10,122,161  
   
Net assets
        $2,075,331,072  
 
Net Assets by Source
Capital received from investors
        1,784,157,487  
Net investment income not yet distributed
        11,194,378  
Net realized capital losses
        (9,972,284 )
Net unrealized capital appreciation
        289,951,491  
 
Net Asset Value (NAV)
 
                         
        Shares
 		             
Net Assets   ÷   Outstanding   =   NAV      
$2,075,331,072
      53,350,001         $38.90      
 
 
 
66 See financial notes

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

Statement of
Operations
For the period September 1, 2013 through August 31, 2014
 
             
 
Investment Income
Dividends
        $49,565,224  
Interest
  +     1  
   
Total investment income
        49,565,225  
 
Expenses
Investment adviser fees
        1,125,634  
   
Total expenses
  −     1,125,634  
   
Net investment income
        48,439,591  
 
Realized and Unrealized Gains (Losses)
Net realized losses on investments
        (6,965,556 )
Net realized gains on in-kind redemptions
        58,899,162  
Net realized gains on futures contracts
  +     2,441  
   
Net realized gains
        51,936,047  
Net change in unrealized appreciation (depreciation) on investments
  +     188,477,636  
   
Net realized and unrealized gains
        240,413,683  
             
Increase in net assets resulting from operations
        $288,853,274  
 
 
 
See financial notes 67

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

Statements of
Changes in Net Assets
For the current and prior report periods
 
                     
 
Operations
                     
9/1/13-8/31/14     9/1/12-8/31/13  
Net investment income
        $48,439,591       $24,058,072  
Net realized gains
        51,936,047       16,571,413  
Net change in unrealized appreciation (depreciation)
  +     188,477,636       79,098,606  
   
Increase in net assets resulting from operations
        288,853,274       119,728,091  
 
Distributions to Shareholders
Distributions from net investment income
        ($42,886,221 )     ($20,742,506 )
 
Transactions in Fund Shares
                                     
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       VALUE       SHARES       VALUE  
Shares sold
        27,100,000       $991,701,989       22,050,000       $691,326,939  
Shares redeemed
  +     (8,350,000 )     (304,028,292 )     (5,100,000 )     (153,085,998 )
   
Net transactions in fund shares
        18,750,000       $687,673,697       16,950,000       $538,240,941  
 
Shares Outstanding and Net Assets
        9/1/13-8/31/14     9/1/12-8/31/13  
          SHARES       NET ASSETS       SHARES       NET ASSETS  
Beginning of period
        34,600,001       $1,141,690,322       17,650,001       $504,463,796  
Total increase
  +     18,750,000       933,640,750       16,950,000       637,226,526  
   
End of period
        53,350,001       $2,075,331,072       34,600,001       $1,141,690,322  
   
                                     
Net investment income not yet distributed
                $11,194,378               $6,027,574  
 
 
 
68 See financial notes

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes
 
 
1. Business Structure of the Funds
 
Each of the funds 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 operational 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 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    
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    
 
 
The funds issue and redeem shares at their net assets value per share (“NAV”) only in large blocks of shares, typically 50,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.
 
Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
 
Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.
 
2. Significant Accounting Policies:
 
The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services - Investment Companies. 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 U.S. Securities and 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.
 
 
 
 69

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
  •  Securities for which no quoted value is available: The Board has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing 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.
 
  •  Futures contracts (“futures”): Futures are valued at their settlement prices as of the close of their exchanges.
 
  •  Short-term securities (60 days or less to maturity): Short-term securities may be 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, ETFs and futures contracts. 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
 
 
 
70 

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
  due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
The levels associated with valuing the funds’ investments as of August 31, 2014 are disclosed in the Portfolio Holdings.
 
(b) Accounting Policies for certain Portfolio Investments (if held):
 
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures are traded publicly on exchanges, and their market value may change daily.
 
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 be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating under Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds to terminate any loans at any given time. 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 and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. A fund retains the right to recall a security on loan. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan (at market value computed at the time of the loan). Total costs and expenses, including agent fees, associated with securities lending activities under the trust’s Securities Lending Program paid to the unaffiliated lending agent are approximately 15% of the gross lending revenues.
 
The values of the securities on loan and the related cash collateral are disclosed in the funds’ Portfolio Holdings and the Statement of Assets and Liabilities. The following table presents the non-cash collateral as of August 31, 2014.
 
         
    Non-Cash
   
Collateral Received
 
Schwab U.S. Broad Market ETF
    $971,651  
Schwab U.S. Large-Cap ETF
    410,034  
Schwab U.S. Large-Cap Growth ETF
    311,639  
Schwab U.S. Large-Cap Value ETF
    123,942  
Schwab U.S. Mid-Cap ETF
    3,066,899  
Schwab U.S. Small-Cap ETF
    1,087,133  
 
(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.
 
When a fund closes out a futures position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
 
 
 
 71

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
2. Significant Accounting Policies (continued):
 
(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.
 
(e) Expenses:
 
Pursuant to the Investment Advisory Agreement (“Advisory 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, if any, 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) 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.
 
Market Risk. 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.
 
Investment Style Risk. The funds are not actively managed. Therefore, a fund follows the securities included in an index during upturns as well as downturns. Because of their indexing strategies, the funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, the fund’s performance is normally below that of the index.
 
Certain funds primarily invest in dividend paying stocks. As a result, fund performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and a fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, a fund’s ability to generate income may be affected.
 
 
 
72 

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
3. Risk Factors (continued):
 
Equity Risk. 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.
 
Large-Cap Risk. 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.
 
Mid-Cap Risk. Certain funds invest in mid-cap stocks. Historically, mid-cap stocks have been riskier than large-cap stocks. Mid-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of mid-sized companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — a fund’s mid-cap holdings could reduce performance.
 
Small-Cap Risk. 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.
 
Growth Investing Risk. Certain funds invest in growth stocks. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
 
Value Investing Risk. Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.
 
Sampling Index Tracking Risk. 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.
 
Tracking Error Risk. 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.
 
Derivatives Risk. 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.
 
 
 
 73

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
3. Risk Factors (continued):
 
Liquidity Risk. A particular investment may be difficult to purchase or sell. A fund may be unable to sell a security at an advantageous time or price.
 
Securities Lending Risk. 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.
 
Concentration Risk. 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.
 
Market Trading Risk. 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.
 
Shares of the Fund May Trade at Prices Other Than NAV. 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 (See Frequency Distribution of Discounts and Premiums in Other Information for an overview showing the frequency at which the daily closing price was at a discount or a premium to a fund’s daily NAV).
 
Lack of Government Insurance or Guarantee. 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 U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
  0.04%       0.04%       0.07%       0.07%       0.07%       0.08%       0.07%  
 
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
 		          Balance
 		      Realized
 		  Dividends
    of Shares
 		          of Shares
 		  Market
 		  Gains (Losses)
 		  Received
    Held at
 		  Gross
 		  Gross
 		  Held at
 		  Value at
 		  9/1/13 to
 		  9/1/13 to
Fund
 
8/31/13
 
Purchases
 
Sales
 
8/31/14
 
8/31/14
 
8/31/14
 
8/31/14
 
Schwab U.S. Broad Market ETF
    131,904       71,489       (10,874 )     192,519       $5,488,717       $75,620       $41,304  
Schwab U.S. Large-Cap ETF
    120,748       74,814       (3,944 )     191,618       5,463,029       43,440       38,915  
Schwab U.S. Large-Cap Growth ETF
    111,623       67,221       (2,956 )     175,888       5,014,567       39,548       36,785  
 
 
 
74 

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
4. Affiliates and Affiliated Transactions (continued):
 
Certain Schwab funds may own shares of other Schwab funds. The table below reflects the percentages of shares of each fund in this report that are owned by other Schwab funds as of August 31, 2014, as applicable:
 
                 
    Underlying Funds
    Schwab U.S.
 		  Schwab U.S.
    Large-Cap
 		  Small-Cap
   
ETF
 
ETF
 
Schwab VIT Balanced Portfolio
    0.2%       0.1%  
Schwab VIT Balanced with Growth Portfolio
    0.7%       0.3%  
Schwab VIT Growth Portfolio
    1.0%       0.3%  
 
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 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 CSIM 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 the 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 funds’ Statements of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
 
8. Derivatives: 
 
Certain funds entered into equity index futures contracts during the report period. The fund invested in futures to equitize available cash. The fair value and variation margin for futures contracts held at August 31, 2014 are presented on the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized/unrealized gains (losses) on futures contracts are presented on the Statement of Operations. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period, the
 
 
 
 75

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
month-end average contract values of futures contracts held by the funds and the month-end average number of contracts held were as follows:
 
                 
   
Contract Values
 
Number of Contracts
 
Schwab U.S. Broad Market ETF
    $291,871       3  
Schwab U.S. Large-Cap ETF
    166,783       2  
Schwab U.S. Small-Cap ETF
    48,892       1  
Schwab U.S. Dividend Equity ETF
    7,769       1  
 
9. Purchases and Sales/Maturities of Investment Securities:
 
For the period ended August 31, 2014, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:
 
                 
   
Purchases of Securities
 
Sales/Maturities of Securities
 
Schwab U.S. Broad Market ETF
    $147,800,041       $128,332,126  
Schwab U.S. Large-Cap ETF
    129,226,532       113,042,793  
Schwab U.S. Large-Cap Growth ETF
    83,760,914       79,300,678  
Schwab U.S. Large-Cap Value ETF
    82,890,518       78,255,135  
Schwab U.S. Mid-Cap ETF
    101,279,674       85,894,305  
Schwab U.S. Small-Cap ETF
    269,931,591       242,649,799  
Schwab U.S. Dividend Equity ETF
    415,502,016       420,415,900  
 
10. 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 to or out of the fund. From time to time, CSIM may cover the cost of any transaction fees when believed to be in the best interests of a fund.
 
The in-kind transactions for the period ended August 31, 2014 were as follows:
 
                 
   
In-Kind Purchases of Securities
 
In-Kind Sales of Securities
 
Schwab U.S. Broad Market ETF
    $987,683,338       $102,541,859  
Schwab U.S. Large-Cap ETF
    974,890,237       58,089,050  
Schwab U.S. Large-Cap Growth ETF
    416,892,635       22,483,969  
Schwab U.S. Large-Cap Value ETF
    355,446,819       48,751,111  
Schwab U.S. Mid-Cap ETF
    499,729,048       104,957,874  
Schwab U.S. Small-Cap ETF
    556,767,700       197,705,991  
Schwab U.S. Dividend Equity ETF
    986,878,805       290,012,694  
 
For the period ended August 31, 2014, the funds realized net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended August 31, 2014 are disclosed in the funds’ Statements of Operations.
 
 
 
76 

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
11. Federal Income Taxes
 
As of August 31, 2014, the components of distributable earnings on a tax-basis were as follows:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
   
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
Undistributed ordinary income
    $9,699,078       $9,252,242       $2,968,776       $4,194,771       $1,026,552       $819,384       $11,194,378  
Undistributed long-term capital gains
    —       —       —       —       —       —       —  
Unrealized appreciation
    871,220,916       725,352,043       394,453,955       220,956,500       217,040,653       458,520,773       300,887,352  
Unrealized depreciation
    (15,992,582 )     (10,527,818 )     (5,455,730 )     (2,213,554 )     (13,609,112 )     (56,310,350 )     (10,833,674 )
Other unrealized appreciation (depreciation)
    —       —       —       —       —       —       1  
                                                         
Net unrealized appreciation (depreciation)
    855,228,334       714,824,225       388,998,225       218,742,946       203,431,541       402,210,423       290,053,679  
                                                         
 
The primary difference between book-basis and tax-basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales and Real Estate Investment Trusts (REITs).
 
Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of August 31, 2014, the funds had capital loss carryforwards available to offset future net capital gains before the expiration dates as follows:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
Expiration Date
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
August 31, 2019
    $—       $721,062       $691,441       $295,384       $218,695       $927,631       $—  
No expiration*
    4,860,368       4,392,658       7,594,027       2,451,027       7,195,556       14,608,766       3,568,931  
                                                         
Total
    $4,860,368       $5,113,720       $8,285,468       $2,746,411       $7,414,251       $15,536,397       $3,568,931  
                                                         
 
     
*
  As a result of the passage of the Regulated Investment Company Modernization Act of 2010, capital losses incurred after December 31, 2010 may now be carried forward indefinitely, but must retain the character of the original loss. However, such losses must be utilized prior to the pre-enactment capital losses, which may increase the likelihood that the pre-enactment capital losses may expire unused. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital loss, irrespective of the character of the original loss.
 
For tax purposes, realized net capital losses and late-year ordinary losses incurred after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2014, the funds had capital losses deferred and capital loss carryforwards utilized as follows:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
   
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
Deferred capital losses
    $49,227       $—       $—       $—       $—       $—       $6,505,541  
Capital loss carryforwards utilized
    —       1,136,819       —       —       —       —       —  
 
 
 
 77

Table of Contents

 
 Schwab U.S. Equity ETFs
 

 
Financial Notes (continued)
 
11. Federal Income Taxes (continued):
 
The tax-basis components of distributions paid during the current and prior fiscal years were:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
   
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
Current period distributions
                                                       
Ordinary income
    $53,302,780       $44,577,680       $13,914,310       $21,232,840       $14,140,400       $27,201,420       $42,886,221  
Long-term capital gains
    —       —       —       —       —       —       —  
                                                         
Prior period distributions
                                                       
Ordinary income
    32,174,430       25,323,080       8,617,825       13,282,460       6,489,136       16,364,820       20,742,506  
Long-term capital gains
    —       —       —       —       —       —       —  
 
Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses, in-kind transactions, capital losses related to wash sales, and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
 
The permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments have no impact on net assets or the results of operations. As of August 31, 2014, the funds made the following reclassifications:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
   
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
Capital shares
    $43,253,224       $23,926,452       $10,334,874       $16,433,579       $32,735,900       $77,264,225       $58,904,022  
Undistributed net investment income
    (473,649 )     (334,712 )     (151,350 )     (131,954 )     (394,841 )     (542,858 )     (386,566 )
Net realized gains and losses
    (42,779,575 )     (23,591,740 )     (10,183,524 )     (16,301,625 )     (32,341,059 )     (76,721,367 )     (58,517,456 )
 
For the period ended August 31, 2014, the following funds reclassified non-taxable security gains and losses realized on the in-kind redemption of Creation Units (Note 10) as an increase or decrease to capital received from investors in the Statement of Assets and Liabilities as follows:
 
                                                         
    Schwab U.S.
 		      Schwab U.S.
 		  Schwab U.S.
 		          Schwab U.S.
    Broad
 		  Schwab U.S.
 		  Large-Cap
 		  Large-Cap
 		  Schwab U.S.
 		  Schwab U.S.
 		  Dividend
    Market
 		  Large-Cap
 		  Growth
 		  Value
 		  Mid-Cap
 		  Small-Cap
 		  Equity
   
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
ETF
 
      $43,180,599       $23,901,558       $10,337,832       $16,450,241       $32,656,810       $77,126,790       $58,899,162  
 
As of August 31, 2014, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period ended August 31, 2014, the funds did not incur any interest or penalties.
 
12. 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.
 
 
 
78 

Table of Contents

 
Report of Independent Registered Public Accounting Firm
 
 
To the Board of Trustees and Shareholders of:
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap Growth ETF
Schwab U.S. Large-Cap Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend Equity ETF
 
In our opinion, the accompanying statements of assets and liabilities, including the portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF and Schwab U.S. Dividend Equity ETF (seven of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
 
PricewaterhouseCoopers LLP
San Francisco, California
October 17, 2014
 
 
 
 79

Table of Contents

 
Other Federal Tax Information (unaudited)
 
 
For corporate shareholders, the following percentage of the funds’ dividend distributions paid during the period ended August 31, 2014 qualify for the corporate dividends received deduction:
 
           
Schwab U.S. Broad Market ETF
    91.03 %  
Schwab U.S. Large-Cap ETF
    93.73 %  
Schwab U.S. Large-Cap Growth ETF
    93.64 %  
Schwab U.S. Large-Cap Value ETF
    96.79 %  
Schwab U.S. Mid-Cap ETF
    73.17 %  
Schwab U.S. Small-Cap ETF
    61.89 %  
Schwab U.S. Dividend Equity ETF
    100.00 %  
 
For the period ended August 31, 2014, the funds designated the following amounts of the dividend distributions as qualified dividends for the purpose of the maximum rate under section 1(h)(ii) of the Internal Revenue Code. Shareholders will be notified in January 2015 via IRS form 1099 of the amount for use in preparing their 2014 income tax return.
 
         
Schwab U.S. Broad Market ETF
    $50,731,528  
Schwab U.S. Large-Cap ETF
    43,594,980  
Schwab U.S. Large-Cap Growth ETF
    13,832,214  
Schwab U.S. Large-Cap Value ETF
    21,083,310  
Schwab U.S. Mid-Cap ETF
    10,831,397  
Schwab U.S. Small-Cap ETF
    17,387,138  
Schwab U.S. Dividend Equity ETF
    42,886,221  
 
 
 
80 

Table of Contents

 
Other Information (unaudited)
 
 
Frequency Distribution of Discounts and Premiums
Market Price vs. NAV as of August 31, 2014
 
The following charts are provided to show the frequency at which the daily closing market price on the NYSE Arca, Inc. (“Exchange”), the secondary market for shares of each fund, was at a discount or premium to such fund’s daily NAV. The “Market Price” of each fund generally is determined using the midpoint between the highest bid and lowest offer on the Exchange, as of the time that the fund’s NAV is calculated. Each fund’s Market Price may at times be at, above or below its NAV. The discount or premium is the percentage difference between the NAV and the Market Price of a fund. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of NAV. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each fund will fluctuate in accordance with changes in its NAV, as well as supply and demand. The data presented below represents past performance and can not be used to predict future results.
 
                                                                 
    Number of Days
  Number of Days
    Market Price Above NAV   Market Price Below NAV
    1-49
 		  50-99
 		  100-199
 		  >200
 		  1-49
 		  50-99
 		  100-199
 		  >200
    Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
 		  Basis
   
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Points
 
Schwab U.S. Broad Market ETF
                                                               
Commencement of trading
11/3/09 through 8/31/14
    887       1       —       —       190       —       —       —  
                                                                 
Schwab U.S. Large-Cap ETF
                                                               
Commencement of trading
11/3/09 through 8/31/14
    846       —       —       —       229       —       —       —  
                                                                 
Schwab U.S. Large-Cap Growth ETF
                                                               
Commencement of trading
12/11/09 through 8/31/14
    787       —       —       —       223       —       —       —  
                                                                 
Schwab U.S. Large-Cap Value ETF
                                                               
Commencement of trading
12/11/09 through 8/31/14
    791       —       —       —       170       —       —       —  
                                                                 
Schwab U.S. Mid-Cap ETF
                                                               
Commencement of trading
1/13/11 through 8/31/14
    679       —       —       —       140       —       —       —  
                                                                 
Schwab U.S. Small-Cap ETF
                                                               
Commencement of trading
11/3/09 through 8/31/14
    770       1       —       —       342       —       —       —  
                                                                 
Schwab U.S. Dividend Equity ETF
                                                               
Commencement of trading
10/20/11 through 8/31/14
    415       —       —       —       125       —       —       —  
 
 
 
 81

Table of Contents

 
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 96 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); Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) and President, PIMCO Funds.   21   Director, PS Business Parks, Inc. (2005 – 2012).
 
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).   21   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).   21   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 II2
1960
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.   96   None
 
 
 
 
82 

Table of Contents

 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).
 
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.
 
 
 
 83

Table of Contents

 
Glossary
 
 
ask See “offer.”
 
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage to help offset risks and rewards, based on your goals, time horizon and risk tolerance.
 
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
 
authorized participant (AP) A large institutional investor that places orders for creation units with the funds’ distributor.
 
Barclays U.S. Treasury Bills 1 − 3 Months Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value
 
Barclays U.S. Aggregate Bond Index A broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid ARM passthroughs), asset-backed securities, and commercial mortgage-backed securities.
 
beta A historical measure of an investment’s volatility relative to a market index (usually the S&P 500®). The index is defined as having a beta of 1.00. Investments with a beta higher than 1.00 have been more volatile than the index; those with a beta of less than 1.00 have been less volatile.
 
bid The highest price at which someone is willing to buy a security.
 
cap, capitalization See “market cap.”
 
capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.
 
commencement of operations The date that the first NAV was calculated.
 
creation unit (C.U.) A basket of securities that is delivered by an authorized participant (AP) to the fund equal to the current holdings of the ETF, plus a designated cash component. In return, the APs receive a large block of ETF shares (typically 50,000 shares), which investors can then buy and sell in the secondary market.
 
dividend yield A stock’s indicated annual dividend divided by current price. At the portfolio level, it is the value-weighted average of the dividend yield of the securities in the portfolio.
 
Dow Jones U.S. Broad Stock Market Index An index that is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes approximately 2,500 stocks and is float-adjusted market cap weighted.
 
Dow Jones U.S. Dividend 100 Index An index that is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The 100-component index is a subset of the Dow Jones U.S. Broad Market Index, excluding REITs, master limited partnerships, preferred stocks and convertibles. All index eligible stocks must have sustained at least 10 consecutive years of dividend payments, have aminimum float-adjusted market capitalization of $500 million and meet minimum liquidity criteria. The index is modified market capitalization weighted.
 
Dow Jones U.S. Large-Cap Growth Total Stock Market Index An index that includes the large-cap growth portion of the Dow Jones U.S. Total Stock Market Index. The index is float-adjusted market capitalization weighted and includes components ranked 1-750 by full market capitalization and that are classified as “growth” based on a number of factors.
 
Dow Jones U.S. Large-Cap Total Stock Market Index An index that is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index represents the largest 750 stocks and is float-adjusted market cap weighted.
 
Dow Jones U.S. Large-Cap Value Total Stock Market Index An index that includes the large-cap value portion of the Dow Jones U.S. Total Stock Market Index. The index is float-adjusted market capitalization weighted and includes the components ranked 1-750 by full market capitalization and that are classified as “value” based on a number of factors.
 
Dow Jones U.S. Mid-Cap Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes the components ranked 501-1,000 by full market capitalization and is float-adjusted market capweighted.
 
Dow Jones U.S. Small-Cap Total Stock Market Index is a subset of the Dow Jones U.S. Total Stock Market Index, which measures all U.S. equity securities with readily available prices. The index includes components ranked 751-2,500 by full market capitalization and is float-adjusted market capweighted.
 
Dow Jones U.S. Total Stock Market Index An index that measures all U.S. equity securities with readily available prices.
 
exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.
 
expense ratio The amount that is taken from the fund’s assets each year to cover the operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.
 
gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.
 
 
 
84 

Table of Contents

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. Free-float market capitalization is a variation of market capitalization that only includes shares generally available to the public, and excludes shares of a company held by entities such as the government. Modified market capitalization weighting represents a mix between conventional market capitalization weighting and equal weighting.
 
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. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
 
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.
 
Russell 2000 Index An index that measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
 
S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.
 
SEC yield A standard yield calculation developed by the Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund’s filings with the SEC. The yield figure reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. This is also referred to as the “standardized yield.”
 
sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.
 
secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.
 
spread The gap between bid and ask prices of a security.
 
stock A share of ownership, or equity, in the issuing company.
 
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
 
tracking error The difference between the performance of the fund and its benchmark index, positive or negative.
 
 
 
 
 85

Table of Contents

 
PRIVACY NOTICE
 THIS IS NOT PART OF THE SHAREHOLDER REPORT
 
A Commitment to Your Privacy
 
Your Privacy Is Not for Sale
 
We do not and will not sell your personal information to anyone, for any reason.
 
We are committed to protecting the privacy of information we maintain about you. Below are details about our commitment, including the types of information we collect and how we use and share that information. This Privacy Notice applies to you only if you are an individual who invests directly in the funds by placing orders through the funds’ transfer agent. If you place orders through your brokerage account at Charles Schwab & Co., Inc. or an account with another broker-dealer, investment advisor, 401(k) plan, employee benefit plan, administrator, bank or other financial intermediary, you are covered by the privacy policies of that financial institution and should consult those policies.
 
How We Collect Information About You
 
We collect personal information about you in a number of ways.
 
•  APPLICATION AND REGISTRATION INFORMATION.
 
We collect personal information from you when you open an account or utilize one of our services. We may also collect information about you from third parties such as consumer reporting agencies to verify your identity. The information we collect may include personal information, including your Social Security number, as well as details about your interests, investments and investment experience.
 
•  TRANSACTION AND EXPERIENCE INFORMATION.
 
Once your account has been opened, we collect and maintain personal information about your account activity, including your transactions, balances, positions and history. This information allows us to administer your account and provide the services you have requested.
 
•  WEBSITE USAGE.
 
When you visit our websites, we may use devices known as “cookies,” graphic interchange format files (GIFs), or other similar web tools to enhance your web experience. These tools help us to recognize you, maintain your web session, and provide a more personalized experience. To learn more, please go to www.schwab.com/privacy.
 
How We Share and Use Your Information
 
We provide access to information about you to our affiliated companies, outside companies and other third parties in certain limited circumstances, including:
 
•  to help us process transactions for your account;
 
•  when we use other companies to provide services for us, such as printing and mailing your account statements;
 
•  when we believe that disclosure is required or permitted under law (for example, to cooperate with regulators or law enforcement, resolve consumer disputes, perform credit/authentication checks, or for risk control).
 
State Laws
 
We will comply with state laws that apply to the disclosure or use of information about you.
 
Safeguarding Your Information — Security Is a Partnership
 
We take precautions to ensure the information we collect about you is protected and is accessed only by authorized individuals or organizations.
 
Companies we use to provide support services are not allowed to use information about our shareholders for their own purposes and are contractually obligated to maintain strict confidentiality. We limit their use of information to the performance of the specific services we have requested.
 
We restrict access to personal information by our employees and agents. Our employees are trained about privacy and are required to safeguard personal information.
 
We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.
 
Contact Us
 
To provide us with updated information, report suspected fraud or identity theft, or for any other questions, please call the number below.
 
Schwab ETFtm direct investors:  1-800-435-4000
 
 
© 2014 Schwab ETFs. All rights reserved.
 
 
 
86 

Table of Contents

 
Notes

Table of Contents

 
Notes

Table of Contents

 
Schwab ETFstm are designed to be low-cost, diversified investments. The funds follow broad market indices and provide 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 ETFstm
 
U.S. ETFs
Schwab U.S. Broad Market ETFtm
Schwab U.S. Large-Cap ETFtm
Schwab U.S. Large-Cap Growth ETFtm
Schwab U.S. Large-Cap Value ETFtm
Schwab U.S. Mid-Cap ETFtm
Schwab U.S. Small-Cap ETFtm
Schwab U.S. Dividend Equity ETFtm
Schwab U.S. REIT ETFtm
 
International ETFs
Schwab International Equity ETFtm
Schwab International Small-Cap Equity ETFtm
Schwab Emerging Markets Equity ETFtm
 
Fixed Income ETFs
Schwab U.S. Aggregate Bond ETFtm
Schwab Short-Term U.S. Treasury ETFtm
Schwab Intermediate-Term U.S. Treasury ETFtm
Schwab U.S. TIPS ETFtm
 
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.

Table of Contents

(SCHWAB ETF LOGO)
 
 
 
Investment Adviser
Charles Schwab Investment Management, Inc.
211 Main Street, San Francisco, CA 94105
 
Schwab ETFstm
1-800-435-4000
 
 
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.
© 2014 Charles Schwab Investment Management, Inc. All rights reserved.
Printed on recycled paper.
MFR57932-04
00125304

Table of Contents

  

Table of Contents

(SCHWAB ETF LOGO)

Table of Contents

Item 2: Code of Ethics.
(a)   Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party.
(c)   During the period covered by the report, no amendments were made to the provisions of this code of ethics.
(d)   During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics.
(f)(1)   Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR.
Item 3: Audit Committee Financial Expert.
Registrant’s Board of Trustees has determined that Robert W. Burns, currently serving on its audit committee, is an “audit committee financial expert,” as such term is defined in Item 3 of Form N-CSR. Each member of Registrant’s audit committee is “independent” under the standards set forth in Item 3 of Form N-CSR.
The designation of Mr. Burns as an “audit committee financial expert” pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant’s audit committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant’s audit committee or Board of Trustees.
Item 4: Principal Accountant Fees and Services.
Registrant is composed of twenty-one series. Ten series have a fiscal year-end of August 31, whose annual financial statements are reported in Item 1, seven series have a fiscal year-end of February 28 and four series have a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the twenty-one series, based on their respective 2013 and 2012 fiscal years, as applicable.
(a) Below are the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements.

 

Table of Contents

Audit Fees
2014: $325,414     2013: $244,849
(b) Below are the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of Registrant’s financial statements and are not reported under paragraph (a) above.
Audit-Related Fees
For services rendered to Registrant:
2014: $45,626     2013: $33,615
Nature of these services: tax provision review.
      In each of the last two fiscal years there were no “Audit-Related Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Below are the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.
Tax Fees
For services rendered to Registrant:
2014: $151,099     2013: $115,718
Nature of these services: preparation and review of tax returns.
      In each of the last two fiscal years there were no “Tax Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X
(d) Below are the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
All Other Fees
For services rendered to Registrant:
2014: None     2013: None

 

Table of Contents

      In each of the last two fiscal years there were no “All Other Fees” required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e)(1) Registrant’s audit committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) There were no services described in each of paragraphs (b) through (d) above (including services required to be approved by Registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by Registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant’s principal accountant for services rendered to Registrant, to Registrant’s investment adviser, and to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant.
2014: $196,725     2013: $149,333
(h) During the past fiscal year, all non-audit services provided by Registrant’s principal accountant to either Registrant’s investment adviser or to any entity controlling, controlled by, or under common control with Registrant’s investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has separately-designated standing audit committee established in accordance with Section 3(a)58)(A) of the Exchange Act. The Registrant’s audit committee members are Robert W. Burns, Stephen Timothy Kochis, and Charles A. Ruffel.
Item 6: Schedule of Investments.
The schedules of investments for the Schwab International Equity ETF, Schwab International Small-Cap Equity ETF, Schwab Emerging Markets Equity ETF, Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, and Schwab U.S. Dividend Equity ETF are filed under this Item.

 

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .1%   Common Stock     2,325,188,864       2,631,180,543  
  0 .3%   Other Investment Companies     7,427,616       7,427,616  
  0 .4%   Preferred Stock     9,451,515       10,886,677  
  0 .0%   Rights     —       85,210  
  0 .0%   Short-Term Investments     307,998       307,998  
 
 
  99 .8%   Total Investments     2,342,375,993       2,649,888,044  
  0 .2%   Other Assets and
Liabilities, Net 		            4,127,948  
 
 
  100 .0%   Net Assets             2,654,015,992  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.1% of net assets
 
Australia 7.2%
                 
 
Banks 2.4%
Australia & New Zealand Banking Group Ltd.
    447,720       13,998,892  
Bank of Queensland Ltd.
    50,181       590,433  
Commonwealth Bank of Australia
    268,163       20,396,095  
National Australia Bank Ltd.
    373,920       12,310,400  
Westpac Banking Corp.
    518,721       16,999,992  
                 
              64,295,812  
                 
 
Capital Goods 0.0%
GWA Group Ltd.
    143,500       409,357  
Leighton Holdings Ltd.
    13,120       275,364  
                 
              684,721  
                 
 
Commercial & Professional Services 0.2%
ALS Ltd.
    39,360       273,892  
Brambles Ltd.
    300,256       2,667,879  
Downer EDI Ltd.
    113,980       519,168  
Recall Holdings Ltd. *
    60,004       267,701  
Seek Ltd.
    46,740       763,717  
                 
              4,492,357  
                 
 
Consumer Services 0.2%
Aristocrat Leisure Ltd.
    50,020       258,714  
Bendigo & Adelaide Bank Ltd.
    77,080       897,557  
Crown Resorts Ltd.
    111,520       1,648,013  
Echo Entertainment Group Ltd.
    132,840       392,615  
Flight Centre Travel Group Ltd.
    11,480       503,576  
Tabcorp Holdings Ltd.
    65,175       218,840  
Tatts Group Ltd.
    222,220       690,036  
                 
              4,609,351  
                 
 
Diversified Financials 0.2%
ASX Ltd.
    40,535       1,421,335  
Challenger Ltd.
    77,080       565,929  
IOOF Holdings Ltd.
    69,700       614,746  
Macquarie Group Ltd.
    54,158       2,953,126  
Perpetual Ltd.
    4,100       189,934  
                 
              5,745,070  
                 
 
Energy 0.5%
Caltex Australia Ltd.
    9,840       262,204  
Oil Search Ltd.
    213,455       1,934,554  
Origin Energy Ltd.
    189,566       2,753,485  
Santos Ltd.
    147,600       2,047,285  
Whitehaven Coal Ltd. *
    211,110       389,966  
Woodside Petroleum Ltd.
    100,040       3,995,327  
WorleyParsons Ltd.
    43,460       668,255  
                 
              12,051,076  
                 
 
Food & Staples Retailing 0.6%
Wesfarmers Ltd.
    186,215       7,543,166  
Woolworths Ltd.
    217,300       7,349,181  
                 
              14,892,347  
                 
 
Food, Beverage & Tobacco 0.0%
Coca-Cola Amatil Ltd.
    98,400       828,301  
Treasury Wine Estates Ltd.
    76,362       364,963  
                 
              1,193,264  
                 
 
Health Care Equipment & Services 0.1%
Ansell Ltd.
    16,400       305,245  
Cochlear Ltd.
    5,740       389,493  
Ramsay Health Care Ltd.
    24,600       1,195,515  
Sonic Healthcare Ltd.
    77,900       1,284,519  
                 
              3,174,772  
                 
 
Insurance 0.4%
AMP Ltd.
    467,445       2,570,743  
Insurance Australia Group Ltd.
    421,480       2,550,539  
QBE Insurance Group Ltd.
    158,260       1,705,197  
Suncorp Group Ltd.
    208,421       2,812,928  
                 
              9,639,407  
                 
 
Materials 1.3%
Adelaide Brighton Ltd.
    92,660       307,660  
Alumina Ltd. *
    323,080       468,374  
Amcor Ltd.
    279,620       2,986,656  
Atlas Iron Ltd.
    252,275       134,493  
BHP Billiton Ltd.
    512,500       17,577,438  
BlueScope Steel Ltd. *
    99,220       511,330  
Boral Ltd.
    122,255       630,041  
CSR Ltd.
    193,520       633,497  
DuluxGroup Ltd.
    56,580       303,757  
Fortescue Metals Group Ltd.
    306,680       1,196,113  
Gunns Ltd. *(b)(c)
    346,320       —  
Iluka Resources Ltd.
    99,220       825,924  
Incitec Pivot Ltd.
    318,160       922,482  
James Hardie Industries plc CDI
    40,250       482,243  
Newcrest Mining Ltd. *
    113,160       1,198,092  
Orica Ltd.
    56,580       1,084,845  
Orora Ltd.
    293,223       452,515  
OZ Minerals Ltd.
    82,820       332,310  
Rio Tinto Ltd.
    85,609       5,014,789  
 
 
 
See financial notes 1

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Sims Metal Management Ltd. *
    31,160       350,893  
                 
              35,413,452  
                 
 
Media 0.0%
Fairfax Media Ltd.
    462,743       374,375  
REA Group Ltd.
    5,740       257,264  
                 
              631,639  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.
    85,280       5,892,045  
                 
 
Real Estate 0.5%
CFS Retail Property Trust Group
    487,080       979,466  
Dexus Property Group
    1,416,184       1,596,091  
Goodman Group
    147,779       771,255  
Lend Lease Group
    115,661       1,546,941  
Mirvac Group
    530,540       910,552  
Scentre Group *
    793,364       2,545,174  
Stockland
    479,700       1,906,819  
The GPT Group
    348,572       1,300,817  
Westfield Corp.
    331,280       2,361,027  
                 
              13,918,142  
                 
 
Retailing 0.0%
Harvey Norman Holdings Ltd.
    110,700       367,559  
                 
 
Software & Services 0.1%
Computershare Ltd.
    104,960       1,209,443  
                 
 
Telecommunication Services 0.2%
Telstra Corp., Ltd.
    714,220       3,714,134  
TPG Telecom Ltd.
    29,520       166,489  
                 
              3,880,623  
                 
 
Transportation 0.2%
Asciano Ltd.
    165,640       972,917  
Aurizon Holdings Ltd.
    295,584       1,318,713  
Macquarie Atlas Roads Group
    152,520       467,898  
Qantas Airways Ltd. *
    2,460       3,382  
Sydney Airport
    64,810       268,532  
Toll Holdings Ltd.
    59,860       334,243  
Transurban Group
    368,627       2,778,900  
                 
              6,144,585  
                 
 
Utilities 0.1%
AGL Energy Ltd.
    144,642       1,907,499  
APA Group
    58,220       422,012  
AusNet Services
    188,600       249,602  
                 
              2,579,113  
                 
              190,814,778  
 
Austria 0.2%
                 
 
Banks 0.1%
Erste Group Bank AG
    47,940       1,233,253  
Raiffeisen Bank International AG
    9,070       232,966  
                 
              1,466,219  
                 
 
Capital Goods 0.0%
Andritz AG
    7,675       411,659  
Strabag SE
    9,020       247,544  
                 
              659,203  
                 
 
Energy 0.0%
OMV AG
    29,520       1,143,182  
                 
 
Insurance 0.0%
Vienna Insurance Group AG Wiener Versicherung Gruppe
    7,380       358,557  
                 
 
Materials 0.1%
Voestalpine AG
    30,340       1,304,820  
                 
 
Real Estate 0.0%
BUWOG AG *
    7,478       146,273  
IMMOFINANZ AG *
    150,936       474,169  
                 
              620,442  
                 
 
Telecommunication Services 0.0%
Telekom Austria AG
    19,087       179,007  
                 
              5,731,430  
 
Belgium 1.0%
                 
 
Banks 0.1%
KBC Groep N.V. *
    47,807       2,731,384  
                 
 
Diversified Financials 0.1%
Groupe Bruxelles Lambert S.A.
    14,760       1,454,641  
                 
 
Food & Staples Retailing 0.0%
Colruyt S.A.
    16,400       784,155  
Delhaize Group S.A.
    7,380       515,696  
                 
              1,299,851  
                 
 
Food, Beverage & Tobacco 0.5%
Anheuser-Busch InBev N.V.
    126,523       14,090,776  
                 
 
Insurance 0.1%
Ageas
    46,104       1,551,302  
                 
 
Materials 0.1%
Solvay S.A.
    5,740       905,397  
Umicore S.A.
    18,040       874,809  
                 
              1,780,206  
                 
 
Media 0.0%
Telenet Group Holding N.V. *
    12,300       720,484  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
UCB S.A.
    23,780       2,308,507  
                 
 
Telecommunication Services 0.0%
Belgacom S.A.
    31,980       1,143,036  
                 
              27,080,187  
 
Canada 8.5%
                 
 
Automobiles & Components 0.1%
Magna International, Inc.
    36,920       4,195,895  
                 
 
Banks 2.4%
Bank of Montreal
    100,040       7,715,461  
Canadian Imperial Bank of Commerce
    70,590       6,761,933  
National Bank of Canada
    34,440       1,660,803  
Royal Bank of Canada
    239,480       17,831,574  
The Bank of Nova Scotia
    199,260       13,233,179  
The Toronto-Dominion Bank
    328,000       17,310,901  
                 
              64,513,851  
                 
 
Capital Goods 0.1%
Bombardier, Inc., B Shares
    287,000       968,352  
Finning International, Inc.
    41,150       1,285,997  
 
 
 
2 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
SNC-Lavalin Group, Inc.
    9,845       505,342  
                 
              2,759,691  
                 
 
Consumer Services 0.1%
Tim Hortons, Inc.
    18,090       1,457,540  
                 
 
Diversified Financials 0.1%
CI Financial Corp.
    32,800       1,078,870  
IGM Financial, Inc.
    22,968       1,098,483  
                 
              2,177,353  
                 
 
Energy 2.1%
ARC Resources Ltd.
    26,240       760,289  
Cameco Corp.
    46,785       916,939  
Canadian Natural Resources Ltd.
    177,196       7,741,248  
Canadian Oil Sands Ltd.
    82,000       1,770,399  
Cenovus Energy, Inc.
    112,587       3,599,463  
Crescent Point Energy Corp.
    64,347       2,669,385  
Enbridge, Inc.
    159,080       7,952,900  
Encana Corp.
    125,743       2,906,086  
Husky Energy, Inc.
    75,440       2,301,972  
Imperial Oil Ltd.
    62,320       3,324,116  
MEG Energy Corp. *
    13,120       468,437  
Pacific Rubiales Energy Corp.
    36,935       770,536  
Pembina Pipeline Corp.
    43,092       1,985,072  
Penn West Petroleum Ltd.
    82,000       638,765  
Suncor Energy, Inc.
    228,313       9,393,509  
Talisman Energy, Inc.
    164,000       1,652,473  
TransCanada Corp.
    116,602       6,280,760  
                 
              55,132,349  
                 
 
Food & Staples Retailing 0.2%
Alimentation Couche-Tard, Inc., B Shares
    37,395       1,124,177  
George Weston Ltd.
    6,648       528,101  
Loblaw Cos. Ltd.
    42,228       2,109,940  
Metro, Inc.
    14,015       910,733  
                 
              4,672,951  
                 
 
Food, Beverage & Tobacco 0.1%
Saputo, Inc.
    25,561       1,558,520  
                 
 
Health Care Equipment & Services 0.1%
Catamaran Corp. *
    30,355       1,433,590  
                 
 
Insurance 0.6%
Fairfax Financial Holdings Ltd.
    1,495       690,491  
Great-West Lifeco, Inc.
    76,260       2,237,007  
Intact Financial Corp.
    13,940       949,809  
Manulife Financial Corp.
    292,772       5,924,264  
Power Corp. of Canada
    82,000       2,422,014  
Power Financial Corp.
    61,500       1,992,833  
Sun Life Financial, Inc.
    82,000       3,056,243  
                 
              17,272,661  
                 
 
Materials 1.0%
Agnico Eagle Mines Ltd.
    32,009       1,226,950  
Agrium, Inc.
    21,606       2,047,964  
Barrick Gold Corp.
    203,360       3,747,561  
Eldorado Gold Corp.
    123,000       1,019,378  
First Quantum Minerals Ltd.
    96,015       2,160,614  
Franco-Nevada Corp.
    29,520       1,667,108  
Goldcorp, Inc.
    130,973       3,686,200  
Kinross Gold Corp. *
    191,371       758,604  
Potash Corp. of Saskatchewan, Inc.
    139,670       4,917,260  
Silver Wheaton Corp.
    56,639       1,418,129  
Teck Resources Ltd., Class B
    89,671       2,041,002  
Turquoise Hill Resources Ltd. *
    107,420       362,440  
Yamana Gold, Inc.
    142,226       1,214,116  
                 
              26,267,326  
                 
 
Media 0.2%
Shaw Communications, Inc., B Shares
    82,000       2,070,505  
Thomson Reuters Corp.
    82,000       3,114,450  
                 
              5,184,955  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Valeant Pharmaceuticals International, Inc. *
    50,574       5,938,803  
                 
 
Real Estate 0.2%
Brookfield Asset Management, Inc., Class A
    98,111       4,698,655  
                 
 
Retailing 0.1%
Canadian Tire Corp. Ltd., Class A
    13,120       1,358,505  
                 
 
Software & Services 0.1%
CGI Group, Inc., Class A *
    53,415       1,894,823  
                 
 
Technology Hardware & Equipment 0.0%
BlackBerry Ltd. *
    86,409       880,221  
                 
 
Telecommunication Services 0.2%
BCE, Inc.
    65,700       2,964,752  
Rogers Communications, Inc., B Shares
    71,022       2,901,770  
                 
              5,866,522  
                 
 
Transportation 0.5%
Canadian National Railway Co.
    127,920       9,208,825  
Canadian Pacific Railway Ltd.
    27,333       5,487,766  
                 
              14,696,591  
                 
 
Utilities 0.1%
Canadian Utilities Ltd., Class A
    36,900       1,331,427  
Fortis, Inc.
    38,842       1,200,262  
                 
              2,531,689  
                 
              224,492,491  
 
Denmark 1.3%
                 
 
Banks 0.2%
Danske Bank A/S
    149,240       4,206,025  
                 
 
Capital Goods 0.1%
FLSmidth & Co. A/S
    6,723       359,811  
Rockwool International A/S, B Shares
    2,460       387,535  
Vestas Wind Systems A/S *
    36,080       1,522,072  
                 
              2,269,418  
                 
 
Consumer Durables & Apparel 0.0%
Pandora A/S
    16,400       1,228,862  
                 
 
Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares
    22,140       2,023,794  
                 
 
Health Care Equipment & Services 0.1%
Coloplast A/S, Class B
    20,525       1,707,786  
William Demant Holding A/S *
    4,920       381,011  
                 
              2,088,797  
                 
 
Materials 0.1%
Chr Hansen Holding A/S
    14,760       601,789  
 
 
 
See financial notes 3

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Novozymes A/S, B Shares
    47,560       2,213,227  
                 
              2,815,016  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Novo Nordisk A/S, B Shares
    319,825       14,645,711  
                 
 
Telecommunication Services 0.0%
TDC A/S
    62,700       539,433  
                 
 
Transportation 0.2%
AP Moller - Maersk A/S, A Shares
    500       1,206,704  
AP Moller - Maersk A/S, B Shares
    914       2,294,736  
DSV A/S
    40,180       1,235,401  
                 
              4,736,841  
                 
              34,553,897  
 
Finland 0.7%
                 
 
Automobiles & Components 0.0%
Nokian Renkaat Oyj
    22,960       733,391  
                 
 
Capital Goods 0.2%
Kone Oyj, B Shares
    67,494       2,862,680  
Metso Oyj
    7,425       291,842  
Valmet Oyj
    23,780       252,620  
Wartsila Oyj Abp
    36,080       1,818,291  
                 
              5,225,433  
                 
 
Energy 0.0%
Neste Oil Oyj
    12,375       242,875  
                 
 
Food & Staples Retailing 0.0%
Kesko Oyj, B Shares
    9,840       360,971  
                 
 
Insurance 0.1%
Sampo Oyj, A Shares
    75,475       3,721,129  
                 
 
Materials 0.1%
Stora Enso Oyj, R Shares
    126,280       1,101,976  
UPM-Kymmene Oyj
    97,580       1,469,126  
                 
              2,571,102  
                 
 
Technology Hardware & Equipment 0.2%
Nokia Oyj
    613,653       5,169,103  
                 
 
Utilities 0.1%
Fortum Oyj
    61,585       1,549,388  
                 
              19,573,392  
 
France 7.9%
                 
 
Automobiles & Components 0.3%
Cie Generale des Etablissements Michelin
    33,620       3,726,522  
Peugeot S.A. *
    66,123       931,069  
Renault S.A.
    30,667       2,406,709  
Valeo S.A.
    13,120       1,589,395  
                 
              8,653,695  
                 
 
Banks 0.8%
BNP Paribas S.A.
    164,820       11,154,646  
Credit Agricole S.A.
    177,940       2,645,008  
Natixis
    55,760       392,942  
Societe Generale S.A.
    115,620       5,871,722  
                 
              20,064,318  
                 
 
Capital Goods 1.3%
Airbus Group N.V.
    92,660       5,712,633  
Alstom S.A. *
    41,000       1,454,630  
Bouygues S.A.
    22,140       814,663  
Compagnie de Saint-Gobain
    75,440       3,838,647  
Eiffage S.A.
    3,280       212,997  
Legrand S.A.
    46,269       2,563,979  
Rexel S.A.
    34,440       687,270  
Safran S.A.
    50,840       3,340,622  
Schneider Electric SE
    89,509       7,583,410  
Thales S.A.
    12,300       688,485  
Vallourec S.A.
    19,680       881,106  
Vinci S.A.
    72,980       4,782,432  
Zodiac Aerospace
    32,800       1,072,544  
                 
              33,633,418  
                 
 
Commercial & Professional Services 0.1%
Bureau Veritas S.A.
    49,200       1,171,697  
Edenred
    32,800       975,118  
Societe BIC S.A.
    6,788       924,516  
                 
              3,071,331  
                 
 
Consumer Durables & Apparel 0.4%
Christian Dior S.A.
    9,840       1,754,305  
Hermes International
    1,640       565,650  
Kering
    13,140       2,790,917  
LVMH Moet Hennessy Louis Vuitton S.A.
    39,375       6,848,742  
                 
              11,959,614  
                 
 
Consumer Services 0.1%
Accor S.A.
    36,900       1,797,401  
Sodexo
    14,780       1,459,533  
                 
              3,256,934  
                 
 
Diversified Financials 0.0%
Eurazeo S.A.
    7,432       566,123  
Wendel S.A.
    5,740       694,604  
                 
              1,260,727  
                 
 
Energy 0.9%
CGG S.A. *
    28,402       254,957  
Technip S.A.
    18,040       1,675,242  
Total S.A.
    333,740       22,063,645  
                 
              23,993,844  
                 
 
Food & Staples Retailing 0.2%
Carrefour S.A.
    101,680       3,533,820  
Casino Guichard Perrachon S.A.
    10,660       1,275,376  
                 
              4,809,196  
                 
 
Food, Beverage & Tobacco 0.4%
Danone S.A.
    88,560       6,198,848  
Pernod-Ricard S.A.
    34,475       4,075,136  
                 
              10,273,984  
                 
 
Health Care Equipment & Services 0.2%
BioMerieux
    3,280       344,769  
Essilor International S.A.
    35,389       3,762,715  
                 
              4,107,484  
                 
 
Household & Personal Products 0.2%
L’Oreal S.A.
    36,080       5,988,098  
                 
 
Insurance 0.3%
AXA S.A.
    315,700       7,838,586  
CNP Assurances
    21,320       421,662  
 
 
 
4 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
SCOR SE
    22,960       704,660  
                 
              8,964,908  
                 
 
Materials 0.4%
Air Liquide S.A.
    57,694       7,389,710  
Arkema S.A.
    8,200       616,847  
Imerys S.A.
    5,740       459,844  
Lafarge S.A.
    31,980       2,455,833  
                 
              10,922,234  
                 
 
Media 0.2%
Eutelsat Communications S.A.
    20,500       685,461  
JCDecaux S.A.
    9,020       319,128  
Lagardere S.C.A.
    21,320       588,473  
Numericable Group S.A. *
    8,916       529,074  
Publicis Groupe S.A.
    22,140       1,653,532  
SES S.A.
    54,940       2,037,854  
Societe Television Francaise 1
    26,240       395,750  
                 
              6,209,272  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Ipsen S.A.
    9,840       471,206  
Sanofi
    187,780       20,653,213  
                 
              21,124,419  
                 
 
Real Estate 0.1%
Fonciere Des Regions
    5,740       582,176  
Gecina S.A.
    4,100       580,556  
Klepierre
    14,760       704,768  
                 
              1,867,500  
                 
 
Semiconductors & Semiconductor Equipment 0.0%
STMicroelectronics N.V.
    117,260       984,496  
                 
 
Software & Services 0.2%
AtoS
    10,660       815,241  
Cap Gemini S.A.
    23,780       1,694,889  
Dassault Systemes S.A.
    24,660       1,637,101  
                 
              4,147,231  
                 
 
Technology Hardware & Equipment 0.1%
Alcatel-Lucent *
    479,700       1,663,058  
                 
 
Telecommunication Services 0.4%
Iliad S.A.
    3,280       722,373  
Orange S.A.
    309,140       4,690,936  
Vivendi S.A. *
    216,640       5,648,667  
                 
              11,061,976  
                 
 
Transportation 0.1%
Aeroports de Paris
    6,560       874,020  
Air France-KLM *
    27,483       288,229  
Bollore S.A.
    1,640       1,036,900  
Groupe Eurotunnel S.A. - Reg’d
    69,700       898,993  
                 
              3,098,142  
                 
 
Utilities 0.4%
Electricite de France S.A.
    48,380       1,576,904  
GDF Suez
    214,020       5,284,350  
Suez Environnement Co.
    62,320       1,151,694  
Veolia Environnement S.A.
    79,540       1,464,162  
                 
              9,477,110  
                 
              210,592,989  
 
Germany 7.0%
                 
 
Automobiles & Components 0.9%
Bayerische Motoren Werke AG
    50,492       5,892,615  
Continental AG
    14,956       3,201,258  
Daimler AG - Reg’d
    164,040       13,448,417  
Volkswagen AG
    4,100       920,789  
                 
              23,463,079  
                 
 
Banks 0.1%
Commerzbank AG *
    179,580       2,724,973  
                 
 
Capital Goods 0.8%
Brenntag AG
    10,660       565,516  
GEA Group AG
    35,260       1,599,083  
Hochtief AG
    10,660       844,728  
MAN SE
    12,355       1,468,729  
OSRAM Licht AG *
    13,940       584,272  
Siemens AG - Reg’d
    127,920       16,064,433  
                 
              21,126,761  
                 
 
Commercial & Professional Services 0.0%
Bilfinger SE
    5,740       437,615  
                 
 
Consumer Durables & Apparel 0.1%
adidas AG
    39,360       2,957,239  
Puma SE
    1,640       408,279  
                 
              3,365,518  
                 
 
Diversified Financials 0.4%
Deutsche Bank AG - Reg’d
    236,160       8,100,263  
Deutsche Boerse AG
    32,010       2,281,472  
                 
              10,381,735  
                 
 
Food & Staples Retailing 0.1%
Metro AG *
    32,800       1,154,847  
                 
 
Health Care Equipment & Services 0.3%
Celesio AG
    13,940       474,652  
Fresenius Medical Care AG & Co. KGaA
    38,540       2,724,552  
Fresenius SE & Co. KGaA
    68,880       3,368,759  
                 
              6,567,963  
                 
 
Household & Personal Products 0.1%
Beiersdorf AG
    13,120       1,157,699  
Henkel AG & Co. KGaA
    23,780       2,267,473  
                 
              3,425,172  
                 
 
Insurance 0.7%
Allianz SE - Reg’d
    73,800       12,617,777  
Hannover Rueck SE
    10,660       887,554  
Muenchener Rueckversicherungs AG - Reg’d
    30,360       6,102,505  
                 
              19,607,836  
                 
 
Materials 1.1%
BASF SE
    153,340       15,812,974  
Fuchs Petrolub SE
    8,200       329,702  
HeidelbergCement AG
    34,440       2,604,823  
K+S AG
    32,808       1,022,460  
LANXESS AG
    13,120       814,226  
Linde AG
    31,980       6,345,990  
ThyssenKrupp AG *
    77,720       2,162,626  
Wacker Chemie AG
    3,280       390,522  
                 
              29,483,323  
 
 
 
See financial notes 5

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Media 0.1%
Axel Springer SE
    9,840       584,423  
Kabel Deutschland Holding AG
    6,595       932,977  
ProSiebenSat.1 Media AG - Reg’d
    21,320       856,944  
Sky Deutschland AG *
    58,220       515,569  
                 
              2,889,913  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Bayer AG - Reg’d
    135,340       18,192,442  
Merck KGaA
    21,320       1,859,918  
QIAGEN N.V. *
    38,540       935,597  
                 
              20,987,957  
                 
 
Real Estate 0.0%
Deutsche Wohnen AG
    37,447       846,914  
                 
 
Retailing 0.0%
Fielmann AG
    4,920       318,069  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG
    191,060       2,225,971  
                 
 
Software & Services 0.5%
SAP SE
    146,994       11,462,336  
Software AG
    13,940       360,625  
United Internet AG - Reg’d
    15,822       681,388  
                 
              12,504,349  
                 
 
Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d
    528,900       7,928,073  
Telefonica Deutschland Holding AG *
    32,175       245,258  
                 
              8,173,331  
                 
 
Transportation 0.2%
Deutsche Lufthansa AG - Reg’d
    36,900       640,367  
Deutsche Post AG - Reg’d
    144,320       4,730,597  
Fraport AG Frankfurt Airport Services Worldwide
    7,380       501,600  
                 
              5,872,564  
                 
 
Utilities 0.4%
E.ON SE
    323,900       5,900,447  
RWE AG
    81,180       3,184,385  
                 
              9,084,832  
                 
              184,642,722  
 
Greece 0.1%
                 
 
Banks 0.1%
Alpha Bank AE *
    579,607       508,463  
National Bank of Greece S.A. *
    189,191       650,419  
Piraeus Bank S.A. *
    292,888       578,688  
                 
              1,737,570  
                 
 
Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A. *
    38,631       553,626  
                 
              2,291,196  
 
Hong Kong 3.1%
                 
 
Automobiles & Components 0.0%
Xinyi Glass Holdings Ltd.
    456,000       287,716  
                 
 
Banks 0.3%
Bank of East Asia Ltd.
    216,600       922,279  
BOC Hong Kong Holdings Ltd.
    820,000       2,756,205  
Hang Seng Bank Ltd.
    164,000       2,769,959  
Wing Hang Bank Ltd. (b)(c)
    13,500       217,738  
                 
              6,666,181  
                 
 
Capital Goods 0.3%
China Rongsheng Heavy Industries Group Holdings Ltd. *(b)
    719,000       113,553  
Hopewell Holdings Ltd.
    410,000       1,473,326  
Hutchison Whampoa Ltd.
    278,000       3,615,724  
Jardine Matheson Holdings Ltd.
    32,600       1,964,476  
Jardine Strategic Holdings Ltd.
    20,000       728,000  
Johnson Electric Holdings Ltd.
    202,250       789,412  
                 
              8,684,491  
                 
 
Consumer Durables & Apparel 0.1%
Global Brands Group Holding Ltd. *
    694,000       160,288  
Li & Fung Ltd.
    694,000       861,439  
Prada S.p.A.
    31,200       221,214  
Samsonite International S.A.
    247,500       854,258  
Techtronic Industries Co.
    410,000       1,251,137  
Yue Yuen Industrial Holdings Ltd.
    40,000       124,126  
                 
              3,472,462  
                 
 
Consumer Services 0.3%
China Travel International Investment Hong Kong Ltd.
    1,640,000       518,442  
Galaxy Entertainment Group Ltd.
    305,000       2,298,278  
Melco International Development Ltd.
    81,000       215,822  
MGM China Holdings Ltd.
    154,000       509,680  
Sands China Ltd.
    377,100       2,457,185  
SJM Holdings Ltd.
    228,000       573,666  
Wynn Macau Ltd.
    328,000       1,256,956  
                 
              7,830,029  
                 
 
Diversified Financials 0.2%
Hong Kong Exchanges & Clearing Ltd.
    246,000       5,653,129  
                 
 
Energy 0.0%
Brightoil Petroleum Holdings Ltd. *(a)
    1,944,000       724,910  
                 
 
Food, Beverage & Tobacco 0.1%
China Mengniu Dairy Co., Ltd.
    174,000       807,120  
Tingyi Cayman Islands Holding Corp.
    226,000       634,246  
Want Want China Holdings Ltd.
    1,039,000       1,288,335  
                 
              2,729,701  
                 
 
Insurance 0.4%
AIA Group Ltd.
    1,992,200       10,873,346  
                 
 
Materials 0.0%
Huabao International Holdings Ltd.
    364,000       264,423  
Shougang Fushan Resources Group Ltd.
    516,000       141,814  
                 
              406,237  
                 
 
Media 0.0%
Television Broadcasts Ltd.
    82,000       516,855  
                 
 
Real Estate 0.8%
Cheung Kong (Holdings) Ltd.
    212,000       3,865,164  
Great Eagle Holdings Ltd.
    50,000       183,867  
Hang Lung Properties Ltd.
    325,000       1,073,528  
 
 
 
6 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Henderson Land Development Co., Ltd.
    194,700       1,290,020  
Hongkong Land Holdings Ltd.
    194,000       1,328,900  
Hysan Development Co., Ltd.
    106,000       519,732  
New World China Land Ltd.
    318,000       194,899  
New World Development Co., Ltd.
    820,000       1,036,883  
Shui On Land Ltd.
    1,230,000       322,174  
Sino Land Co., Ltd.
    476,000       841,429  
Sun Hung Kai Properties Ltd.
    248,000       3,763,127  
Swire Pacific Ltd., Class A
    91,000       1,224,660  
Swire Properties Ltd.
    328,000       1,100,366  
The Link REIT
    410,000       2,433,501  
The Wharf Holdings Ltd.
    273,000       2,134,643  
Wheelock & Co., Ltd.
    120,000       628,633  
                 
              21,941,526  
                 
 
Retailing 0.1%
Chow Tai Fook Jewellery Group Ltd.
    332,000       478,071  
Esprit Holdings Ltd.
    410,000       665,510  
Parkson Retail Group Ltd.
    1,640,000       541,718  
Sa Sa International Holdings Ltd. (a)
    396,000       309,129  
                 
              1,994,428  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
ASM Pacific Technology Ltd.
    38,300       398,559  
Semiconductor Manufacturing International Corp. *
    6,560,000       617,898  
Xinyi Solar Holdings Ltd.
    456,000       135,327  
                 
              1,151,784  
                 
 
Technology Hardware & Equipment 0.0%
AAC Technologies Holdings, Inc.
    68,000       443,527  
FIH Mobile Ltd. *
    309,000       174,233  
VTech Holdings Ltd.
    38,900       476,829  
                 
              1,094,589  
                 
 
Telecommunication Services 0.0%
PCCW Ltd.
    820,000       521,616  
                 
 
Transportation 0.1%
Kerry Logistics Network Ltd.
    32,750       54,089  
MTR Corp., Ltd.
    410,000       1,626,743  
                 
              1,680,832  
                 
 
Utilities 0.3%
Cheung Kong Infrastructure Holdings Ltd.
    72,000       519,783  
CLP Holdings Ltd.
    249,500       2,111,856  
Hong Kong & China Gas Co., Ltd.
    1,148,330       2,604,807  
Power Assets Holdings Ltd.
    202,500       1,844,674  
                 
              7,081,120  
                 
              83,310,952  
 
Ireland 0.2%
                 
 
Banks 0.1%
Bank of Ireland *
    5,289,000       2,110,902  
                 
 
Food, Beverage & Tobacco 0.1%
Kerry Group plc, A Shares
    25,420       1,916,915  
                 
 
Materials 0.0%
Smurfit Kappa Group plc
    32,177       731,752  
                 
 
Transportation 0.0%
Ryanair Holdings plc *
    56,689       534,045  
                 
              5,293,614  
 
Israel 0.5%
                 
 
Banks 0.1%
Bank Hapoalim B.M.
    186,960       1,060,963  
Bank Leumi Le-Israel *
    159,900       625,099  
First International Bank of Israel Ltd.
    22,140       347,450  
Israel Discount Bank Ltd., A Shares *
    150,066       252,324  
Mizrahi Tefahot Bank Ltd. *
    18,040       221,683  
                 
              2,507,519  
                 
 
Energy 0.0%
Delek Group Ltd.
    820       298,733  
                 
 
Food, Beverage & Tobacco 0.0%
Osem Investments Ltd.
    10,660       235,492  
                 
 
Materials 0.0%
Israel Chemicals Ltd.
    83,640       646,918  
The Israel Corp., Ltd. *
    820       462,807  
                 
              1,109,725  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.
    155,130       8,094,722  
                 
 
Real Estate 0.0%
Azrieli Group
    6,560       213,250  
Gazit-Globe Ltd.
    12,300       154,629  
                 
              367,879  
                 
 
Software & Services 0.0%
NICE Systems Ltd.
    8,200       317,347  
                 
 
Telecommunication Services 0.1%
Bezeq The Israeli Telecommunication Corp., Ltd.
    433,152       820,081  
Cellcom Israel Ltd.
    20,500       240,308  
Partner Communications Co., Ltd. *
    34,440       248,909  
                 
              1,309,298  
                 
              14,240,715  
 
Italy 2.1%
                 
 
Automobiles & Components 0.1%
Fiat S.p.A. *
    133,993       1,313,127  
Pirelli & C. S.p.A.
    74,620       1,143,107  
                 
              2,456,234  
                 
 
Banks 0.5%
Banco Popolare SC *
    64,354       1,006,186  
Intesa Sanpaolo S.p.A.
    1,990,960       5,937,324  
UniCredit S.p.A.
    713,603       5,536,353  
Unione di Banche Italiane S.C.p.A.
    123,820       969,604  
                 
              13,449,467  
                 
 
Capital Goods 0.1%
CNH Industrial N.V.
    145,140       1,263,689  
Finmeccanica S.p.A. *
    50,020       469,111  
Prysmian S.p.A.
    22,312       454,360  
                 
              2,187,160  
 
 
 
See financial notes 7

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Consumer Durables & Apparel 0.1%
Luxottica Group S.p.A.
    34,191       1,830,729  
                 
 
Diversified Financials 0.1%
Exor S.p.A.
    22,960       915,756  
Mediobanca S.p.A. *
    95,940       840,375  
                 
              1,756,131  
                 
 
Energy 0.5%
Eni S.p.A.
    403,440       10,086,186  
Saipem S.p.A. *
    49,200       1,170,401  
Tenaris S.A.
    75,440       1,668,415  
                 
              12,925,002  
                 
 
Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.
    192,700       647,252  
                 
 
Insurance 0.1%
Assicurazioni Generali S.p.A.
    201,720       4,134,380  
Mediolanum S.p.A.
    20,500       152,700  
                 
              4,287,080  
                 
 
Materials 0.0%
Buzzi Unicem S.p.A.
    13,120       199,258  
                 
 
Media 0.0%
Mediaset S.p.A. *
    136,120       562,635  
                 
 
Telecommunication Services 0.1%
Telecom Italia S.p.A. *
    1,798,720       2,074,300  
Telecom Italia S.p.A. - RSP
    1,062,720       979,870  
                 
              3,054,170  
                 
 
Transportation 0.1%
Atlantia S.p.A.
    82,974       2,111,548  
                 
 
Utilities 0.4%
Enel Green Power S.p.A.
    82,820       229,090  
Enel S.p.A.
    1,209,500       6,414,037  
Snam S.p.A.
    279,620       1,630,164  
Terna-Rete Elettrica Nazionale S.p.A.
    256,660       1,325,245  
                 
              9,598,536  
                 
              55,065,202  
 
Japan 18.9%
                 
 
Automobiles & Components 2.6%
Aisin Seiki Co., Ltd.
    25,900       958,613  
Bridgestone Corp.
    105,000       3,607,306  
Daihatsu Motor Co., Ltd.
    82,000       1,408,962  
Denso Corp.
    82,000       3,562,266  
Fuji Heavy Industries Ltd.
    94,200       2,679,964  
Honda Motor Co., Ltd.
    286,900       9,701,879  
Isuzu Motors Ltd.
    152,000       1,051,863  
Koito Manufacturing Co., Ltd.
    7,000       191,500  
KYB Co., Ltd.
    77,000       363,190  
Mazda Motor Corp.
    74,800       1,766,946  
Mitsubishi Motors Corp.
    82,500       939,476  
NGK Spark Plug Co., Ltd.
    44,000       1,285,460  
Nissan Motor Co., Ltd.
    410,000       3,942,725  
NOK Corp.
    82,000       1,774,424  
Stanley Electric Co., Ltd.
    34,700       822,699  
Sumitomo Electric Industries Ltd.
    164,000       2,404,313  
Sumitomo Rubber Industries Ltd.
    82,000       1,172,951  
Suzuki Motor Corp.
    82,000       2,668,740  
Toyota Industries Corp.
    27,800       1,336,680  
Toyota Motor Corp.
    436,970       24,934,862  
Yamaha Motor Co., Ltd.
    82,000       1,519,469  
                 
              68,094,288  
                 
 
Banks 1.8%
Aozora Bank Ltd.
    297,000       1,014,920  
Fukuoka Financial Group, Inc.
    107,000       519,113  
Hokuhoku Financial Group, Inc.
    493,000       982,346  
Mitsubishi UFJ Financial Group, Inc.
    2,386,500       13,742,160  
Mizuho Financial Group, Inc.
    4,100,000       7,810,464  
North Pacific Bank Ltd.
    164,000       666,198  
Resona Holdings, Inc.
    410,000       2,226,712  
Seven Bank Ltd.
    82,000       333,099  
Shinsei Bank Ltd.
    351,000       739,943  
Sumitomo Mitsui Financial Group, Inc.
    231,200       9,348,372  
Sumitomo Mitsui Trust Holdings, Inc.
    557,000       2,288,909  
Suruga Bank Ltd.
    40,000       760,841  
The 77 Bank Ltd.
    48,000       259,210  
The Bank of Kyoto Ltd.
    83,000       731,049  
The Bank of Yokohama Ltd.
    162,000       894,637  
The Chiba Bank Ltd.
    130,000       917,264  
The Chugoku Bank Ltd.
    34,000       515,147  
The Gunma Bank Ltd.
    29,000       171,122  
The Hachijuni Bank Ltd.
    131,000       791,914  
The Hiroshima Bank Ltd.
    38,000       183,626  
The Iyo Bank Ltd.
    82,000       832,748  
The Joyo Bank Ltd.
    137,000       712,134  
The Juroku Bank Ltd.
    104,000       397,439  
The Shiga Bank Ltd.
    58,000       336,102  
The Shizuoka Bank Ltd.
    110,000       1,142,513  
Yamaguchi Financial Group, Inc.
    16,000       157,559  
                 
              48,475,541  
                 
 
Capital Goods 2.8%
Amada Co., Ltd.
    77,400       730,153  
Asahi Glass Co., Ltd.
    143,000       775,533  
Chiyoda Corp.
    13,000       142,407  
COMSYS Holdings Corp.
    82,000       1,567,618  
Daikin Industries Ltd.
    49,700       3,430,226  
Ebara Corp.
    31,000       175,165  
FANUC Corp.
    30,690       5,140,357  
Fuji Electric Co., Ltd.
    49,000       237,253  
Hino Motors Ltd.
    22,000       312,365  
Hoshizaki Electric Co., Ltd.
    4,400       215,161  
IHI Corp.
    277,000       1,306,541  
ITOCHU Corp.
    273,100       3,476,678  
JGC Corp.
    48,000       1,391,231  
JTEKT Corp.
    50,100       797,665  
Kajima Corp.
    174,000       891,062  
Kawasaki Heavy Industries Ltd.
    302,000       1,125,032  
Keihan Electric Railway Co., Ltd.
    80,000       355,008  
Komatsu Ltd.
    164,500       3,729,099  
Kubota Corp.
    207,000       2,960,986  
Kurita Water Industries Ltd.
    11,600       260,731  
LIXIL Group Corp.
    58,200       1,289,661  
Makita Corp.
    20,400       1,140,915  
Marubeni Corp.
    243,000       1,756,683  
Minebea Co., Ltd.
    38,000       476,257  
MISUMI Group, Inc.
    5,000       155,701  
Mitsubishi Corp.
    246,000       5,094,759  
Mitsubishi Electric Corp.
    303,000       3,797,526  
 
 
 
8 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Mitsubishi Heavy Industries Ltd.
    556,000       3,426,932  
Mitsui & Co., Ltd.
    330,400       5,394,026  
Mitsui Engineering & Shipbuilding Co., Ltd.
    92,000       201,030  
Nabtesco Corp.
    7,500       172,908  
NGK Insulators Ltd.
    39,000       983,588  
Nidec Corp.
    41,800       2,668,907  
Nippon Sheet Glass Co., Ltd. *
    200,000       238,725  
NSK Ltd.
    70,000       931,222  
NTN Corp.
    56,000       235,568  
Obayashi Corp.
    91,000       695,519  
Shimizu Corp.
    137,000       1,134,139  
SMC Corp.
    11,000       2,879,578  
Sojitz Corp.
    410,000       678,828  
Sumitomo Corp.
    246,000       3,180,228  
Taisei Corp.
    145,000       865,380  
THK Co., Ltd.
    51,300       1,216,267  
Toshiba Corp.
    820,000       3,619,887  
TOTO Ltd.
    67,000       815,854  
Toyota Tsusho Corp.
    82,000       2,166,723  
                 
              74,237,082  
                 
 
Commercial & Professional Services 0.2%
Dai Nippon Printing Co., Ltd.
    68,000       714,463  
Park24 Co., Ltd.
    25,000       435,578  
Secom Co., Ltd.
    34,700       2,124,053  
Toppan Printing Co., Ltd.
    125,000       919,286  
                 
              4,193,380  
                 
 
Consumer Durables & Apparel 0.7%
Asics Corp.
    12,100       248,208  
Bandai Namco Holdings, Inc.
    50,300       1,407,054  
Casio Computer Co., Ltd.
    47,000       819,791  
Haseko Corp.
    84,000       696,193  
Iida Group Holdings Co., Ltd.
    13,500       193,628  
Nikon Corp.
    82,000       1,192,290  
Panasonic Corp.
    357,500       4,373,899  
Rinnai Corp.
    3,600       319,854  
Sega Sammy Holdings, Inc.
    37,700       719,633  
Sekisui Chemical Co., Ltd.
    81,000       959,041  
Sekisui House Ltd.
    100,200       1,261,603  
Sharp Corp. *
    284,000       896,684  
Shimano, Inc.
    9,900       1,182,644  
Sony Corp.
    164,000       3,141,551  
Sumitomo Forestry Co., Ltd.
    82,000       917,206  
Wacoal Holdings Corp.
    21,000       208,817  
Yamaha Corp.
    17,200       247,027  
                 
              18,785,123  
                 
 
Consumer Services 0.1%
Benesse Holdings, Inc.
    8,600       305,059  
Oriental Land Co., Ltd.
    10,100       1,968,277  
                 
              2,273,336  
                 
 
Diversified Financials 0.5%
Aiful Corp. *
    68,300       302,431  
Credit Saison Co., Ltd.
    47,300       941,128  
Daiwa Securities Group, Inc.
    255,000       2,076,869  
Japan Exchange Group, Inc.
    50,000       1,187,852  
Mitsubishi UFJ Lease & Finance Co., Ltd.
    164,000       876,161  
Nomura Holdings, Inc.
    574,000       3,687,612  
Okasan Securities Group, Inc.
    17,000       129,605  
Orient Corp. *
    68,300       157,790  
ORIX Corp.
    212,300       3,208,461  
SBI Holdings, Inc.
    82,000       972,460  
Tokai Tokyo Financial Holdings, Inc.
    19,400       141,926  
                 
              13,682,295  
                 
 
Energy 0.2%
Cosmo Oil Co., Ltd.
    125,000       234,635  
Idemitsu Kosan Co., Ltd.
    8,400       184,520  
Inpex Corp.
    164,000       2,352,216  
Japan Petroleum Exploration Co.
    6,900       268,999  
JX Holdings, Inc.
    492,000       2,532,816  
Showa Shell Sekiyu K.K.
    82,000       880,897  
                 
              6,454,083  
                 
 
Food & Staples Retailing 0.3%
Aeon Co., Ltd.
    164,000       1,774,424  
Lawson, Inc.
    10,600       762,208  
Seven & i Holdings Co., Ltd.
    164,000       6,586,995  
                 
              9,123,627  
                 
 
Food, Beverage & Tobacco 0.8%
Ajinomoto Co., Inc.
    82,000       1,335,159  
Asahi Group Holdings Ltd.
    82,000       2,589,806  
Calbee, Inc.
    6,300       217,712  
Japan Tobacco, Inc.
    182,000       6,243,904  
Kewpie Corp.
    82,000       1,406,594  
Kikkoman Corp.
    46,000       1,008,692  
Kirin Holdings Co., Ltd.
    164,000       2,201,454  
MEIJI Holdings Co., Ltd.
    13,100       1,080,685  
NH Foods Ltd.
    35,000       741,878  
Nisshin Seifun Group, Inc.
    72,400       835,613  
Nissin Foods Holdings Co., Ltd.
    17,000       975,309  
Sapporo Holdings Ltd.
    52,000       222,746  
Suntory Beverage & Food Ltd.
    20,000       734,466  
Toyo Suisan Kaisha Ltd.
    7,000       219,329  
Yakult Honsha Co., Ltd.
    13,000       714,540  
Yamazaki Baking Co., Ltd.
    20,000       263,561  
                 
              20,791,448  
                 
 
Health Care Equipment & Services 0.3%
Alfresa Holdings Corp.
    3,600       214,160  
M3, Inc.
    19,200       336,187  
Medipal Holdings Corp.
    82,000       1,062,444  
Miraca Holdings, Inc.
    7,200       335,448  
Nipro Corp.
    42,200       372,909  
Olympus Corp. *
    42,300       1,512,677  
Suzuken Co., Ltd.
    16,600       553,680  
Sysmex Corp.
    20,000       774,895  
Terumo Corp.
    82,000       2,066,477  
                 
              7,228,877  
                 
 
Household & Personal Products 0.3%
Kao Corp.
    93,900       4,053,920  
Kobayashi Pharmaceutical Co., Ltd.
    3,800       243,981  
Lion Corp.
    48,000       279,078  
Pigeon Corp.
    4,300       254,560  
Shiseido Co., Ltd.
    82,000       1,515,522  
Unicharm Corp.
    18,600       1,223,051  
                 
              7,570,112  
                 
 
Insurance 0.4%
MS&AD Insurance Group Holdings, Inc.
    82,000       1,852,173  
NKSJ Holdings, Inc.
    82,000       1,983,597  
Sony Financial Holdings, Inc.
    31,300       501,957  
 
 
 
See financial notes 9

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
T&D Holdings, Inc.
    164,000       2,037,272  
The Dai-ichi Life Insurance Co., Ltd.
    164,000       2,353,006  
Tokio Marine Holdings, Inc.
    107,200       3,272,703  
                 
              12,000,708  
                 
 
Materials 1.3%
Air Water, Inc.
    49,000       771,661  
Asahi Kasei Corp.
    175,000       1,405,593  
Daicel Corp.
    69,000       766,482  
Denki Kagaku Kogyo K.K.
    38,000       128,758  
DIC Corp.
    45,000       102,662  
Dowa Holdings Co., Ltd.
    16,000       143,697  
Hitachi Chemical Co., Ltd.
    22,000       409,992  
Hitachi Metals Ltd.
    50,000       852,866  
JFE Holdings, Inc.
    85,100       1,723,544  
JSR Corp.
    82,000       1,427,117  
Kaneka Corp.
    31,000       183,520  
Kansai Paint Co., Ltd.
    44,000       699,697  
Kobe Steel Ltd.
    820,000       1,333,975  
Kuraray Co. Ltd.
    82,000       1,021,399  
Maruichi Steel Tube Ltd.
    4,600       122,389  
Mitsubishi Chemical Holdings Corp.
    410,000       2,047,928  
Mitsubishi Materials Corp.
    136,000       459,508  
Mitsui Chemicals, Inc.
    91,000       268,922  
Mitsui Mining & Smelting Co., Ltd.
    67,000       206,382  
Nippon Kayaku Co., Ltd.
    14,000       172,229  
Nippon Paint Co., Ltd.
    48,000       1,189,315  
Nippon Paper Industries Co., Ltd.
    12,100       195,445  
Nippon Shokubai Co., Ltd.
    15,000       182,221  
Nippon Steel & Sumitomo Metal Corp.
    1,282,000       3,633,063  
Nissan Chemical Industries Ltd.
    11,200       202,254  
Nitto Denko Corp.
    20,100       1,054,483  
Oji Holdings Corp.
    121,000       492,689  
Shin-Etsu Chemical Co., Ltd.
    82,000       5,095,943  
Sumitomo Chemical Co., Ltd.
    247,000       886,856  
Sumitomo Metal Mining Co., Ltd.
    105,000       1,595,442  
Sumitomo Osaka Cement Co., Ltd.
    50,000       176,638  
Taiheiyo Cement Corp.
    194,000       812,341  
Taiyo Nippon Sanso Corp.
    18,000       162,179  
Teijin Ltd.
    131,000       321,558  
Toray Industries, Inc.
    265,000       1,810,882  
Tosoh Corp.
    37,000       153,150  
Toyo Seikan Group Holdings Ltd.
    82,000       1,122,433  
Toyobo Co., Ltd.
    109,000       172,075  
Ube Industries Ltd.
    122,000       206,690  
Zeon Corp.
    28,000       283,814  
                 
              33,997,792  
                 
 
Media 0.1%
Dentsu, Inc.
    28,400       1,155,027  
Hakuhodo DY Holdings, Inc.
    164,000       1,698,648  
Shochiku Co., Ltd.
    28,000       260,904  
Toho Co., Ltd.
    21,800       505,522  
                 
              3,620,101  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 1.0%
Astellas Pharma, Inc.
    410,000       5,912,115  
Chugai Pharmaceutical Co., Ltd.
    45,100       1,430,471  
Daiichi Sankyo Co., Ltd.
    105,000       1,857,727  
Eisai Co., Ltd.
    49,100       2,053,849  
Kaken Pharmaceutical Co., Ltd.
    10,000       252,298  
KYORIN Holdings, Inc.
    7,400       166,328  
Mitsubishi Tanabe Pharma Corp.
    82,000       1,256,620  
Ono Pharmaceutical Co., Ltd.
    13,200       1,179,150  
Otsuka Holdings Co., Ltd.
    82,000       2,985,263  
Rohto Pharmaceutical Co., Ltd.
    20,000       283,583  
Santen Pharmaceutical Co., Ltd.
    8,300       479,376  
Sawai Pharmaceutical Co., Ltd.
    3,800       216,913  
Shionogi & Co., Ltd.
    59,400       1,400,876  
Sumitomo Dainippon Pharma Co., Ltd.
    36,300       493,737  
Taisho Pharmaceutical Holdings Co., Ltd.
    2,600       197,468  
Takeda Pharmaceutical Co., Ltd.
    131,200       5,998,941  
Tsumura & Co.
    8,400       215,003  
                 
              26,379,718  
                 
 
Real Estate 0.7%
Aeon Mall Co., Ltd.
    8,200       178,942  
Daito Trust Construction Co., Ltd.
    11,900       1,473,682  
Daiwa House Industry Co., Ltd.
    111,000       2,102,253  
Hulic Co., Ltd.
    45,500       516,821  
Mitsubishi Estate Co., Ltd.
    209,711       4,847,870  
Mitsui Fudosan Co., Ltd.
    167,000       5,329,018  
Nomura Real Estate Holdings, Inc.
    6,500       117,442  
NTT Urban Development Corp.
    82,000       940,887  
Sumitomo Real Estate Sales Co., Ltd.
    10,700       277,890  
Sumitomo Realty & Development Co., Ltd.
    57,000       2,210,646  
Tokyo Tatemono Co., Ltd.
    67,000       574,000  
Tokyu Fudosan Holdings Corp.
    82,000       629,889  
                 
              19,199,340  
                 
 
Retailing 0.4%
Aoyama Trading Co., Ltd.
    19,100       473,065  
Don Quijote Holdings Co., Ltd.
    11,100       588,738  
Fast Retailing Co., Ltd.
    8,700       2,725,947  
Isetan Mitsukoshi Holdings Ltd.
    121,700       1,464,360  
J Front Retailing Co., Ltd.
    37,000       469,423  
Marui Group Co., Ltd.
    82,000       689,878  
Nitori Holdings Co., Ltd.
    13,000       780,864  
Ryohin Keikaku Co., Ltd.
    2,800       314,810  
Sanrio Co., Ltd.
    11,900       340,327  
Shimamura Co., Ltd.
    2,900       261,847  
Start Today Co., Ltd.
    5,300       126,269  
Takashimaya Co., Ltd.
    65,000       556,240  
USS Co., Ltd.
    82,000       1,353,708  
Yamada Denki Co., Ltd.
    84,300       271,032  
                 
              10,416,508  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Advantest Corp.
    72,400       841,885  
Disco Corp.
    4,400       281,658  
Rohm Co., Ltd.
    13,500       862,877  
Sumco Corp.
    18,400       158,699  
Tokyo Electron Ltd.
    24,400       1,674,894  
                 
              3,820,013  
                 
 
Software & Services 0.4%
Fujitsu Ltd.
    290,000       1,992,328  
Gree, Inc. (a)
    13,200       103,684  
Kakaku.com, Inc.
    17,900       281,031  
Konami Corp.
    24,500       568,133  
Nexon Co., Ltd.
    24,900       217,637  
Nintendo Co., Ltd.
    20,800       2,308,553  
 
 
 
10 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Nomura Research Institute Ltd.
    23,700       749,430  
NTT Data Corp.
    17,300       621,158  
Obic Co., Ltd.
    19,400       665,746  
Otsuka Corp.
    14,500       615,536  
Square Enix Holdings Co., Ltd.
    6,700       154,142  
Trend Micro, Inc.
    17,000       548,202  
Yahoo Japan Corp.
    246,000       992,193  
                 
              9,817,773  
                 
 
Technology Hardware & Equipment 1.5%
Alps Electric Co., Ltd.
    34,300       552,379  
Anritsu Corp.
    14,500       123,666  
Azbil Corp.
    7,200       182,556  
Brother Industries Ltd.
    82,000       1,592,087  
Canon, Inc.
    182,300       5,964,650  
Citizen Holdings Co., Ltd.
    32,700       232,616  
FUJIFILM Holdings Corp.
    82,000       2,474,958  
Hirose Electric Co., Ltd.
    4,200       542,966  
Hitachi Ltd.
    820,000       6,208,115  
Hoya Corp.
    82,000       2,654,137  
Ibiden Co., Ltd.
    6,600       129,795  
Keyence Corp.
    8,500       3,643,091  
Konica Minolta, Inc.
    70,000       770,179  
Kyocera Corp.
    45,000       2,107,162  
Murata Manufacturing Co., Ltd.
    34,700       3,318,186  
NEC Corp.
    446,000       1,588,487  
Omron Corp.
    32,700       1,418,044  
Ricoh Co., Ltd.
    108,000       1,170,082  
Seiko Epson Corp.
    29,200       1,481,292  
Shimadzu Corp.
    29,000       254,310  
Taiyo Yuden Co., Ltd.
    17,700       178,900  
TDK Corp.
    20,800       1,037,147  
Yaskawa Electric Corp.
    44,000       566,280  
Yokogawa Electric Corp.
    83,000       961,149  
                 
              39,152,234  
                 
 
Telecommunication Services 0.9%
KDDI Corp.
    86,900       5,018,175  
Nippon Telegraph & Telephone Corp.
    57,100       3,836,531  
NTT DOCOMO, Inc.
    246,000       4,258,853  
SoftBank Corp.
    152,400       11,011,353  
                 
              24,124,912  
                 
 
Transportation 1.0%
Central Japan Railway Co.
    31,200       4,378,842  
East Japan Railway Co.
    82,000       6,380,190  
Hankyu Hanshin Holdings, Inc.
    169,000       997,228  
Japan Airlines Co., Ltd.
    4,670       262,978  
Kawasaki Kisen Kaisha Ltd.
    135,000       324,878  
Keikyu Corp.
    100,000       880,782  
Keio Corp.
    145,000       1,120,807  
Kintetsu Corp.
    332,000       1,166,482  
Mitsui OSK Lines Ltd.
    211,000       773,846  
Nagoya Railroad Co., Ltd.
    100,000       413,919  
Nippon Express Co., Ltd.
    108,000       494,855  
Nippon Yusen K.K.
    320,000       942,581  
Odakyu Electric Railway Co., Ltd.
    90,000       888,867  
Tobu Railway Co., Ltd.
    229,000       1,201,376  
Tokyu Corp.
    192,000       1,334,399  
West Japan Railway Co.
    47,400       2,245,095  
Yamato Holdings Co., Ltd.
    82,000       1,696,674  
                 
              25,503,799  
                 
 
Utilities 0.5%
Chubu Electric Power Co., Inc. *
    164,000       1,896,771  
Electric Power Development Co., Ltd.
    11,000       361,072  
Hokuriku Electric Power Co.
    82,000       1,063,234  
Kyushu Electric Power Co., Inc. *
    82,000       833,537  
Osaka Gas Co., Ltd.
    281,000       1,157,703  
The Chugoku Electric Power Co., Inc.
    82,600       1,090,891  
The Kansai Electric Power Co., Inc. *
    164,000       1,502,419  
Toho Gas Co., Ltd.
    135,000       778,409  
Tohoku Electric Power Co., Inc.
    82,000       906,945  
Tokyo Electric Power Co., Inc. *
    246,000       890,369  
Tokyo Gas Co., Ltd.
    352,000       2,002,183  
                 
              12,483,533  
                 
              501,425,623  
 
Netherlands 2.4%
                 
 
Banks 0.3%
ING Groep N.V. CVA *
    596,140       8,217,492  
                 
 
Capital Goods 0.2%
Koninklijke Boskalis Westminster N.V.
    6,560       378,425  
Koninklijke Philips N.V.
    182,040       5,560,571  
                 
              5,938,996  
                 
 
Commercial & Professional Services 0.0%
Randstad Holding N.V.
    23,780       1,157,229  
                 
 
Energy 0.1%
Fugro N.V. CVA
    13,940       506,877  
Koninklijke Vopak N.V.
    17,539       901,455  
SBM Offshore N.V. *
    28,402       436,026  
                 
              1,844,358  
                 
 
Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.
    107,924       1,848,048  
                 
 
Food, Beverage & Tobacco 0.6%
Heineken Holding N.V.
    18,040       1,248,233  
Heineken N.V.
    45,100       3,439,592  
Unilever N.V. CVA
    264,905       11,038,494  
                 
              15,726,319  
                 
 
Insurance 0.1%
Aegon N.V.
    330,460       2,618,656  
                 
 
Materials 0.3%
Akzo Nobel N.V.
    37,720       2,672,545  
ArcelorMittal
    162,360       2,368,507  
Koninklijke DSM N.V.
    30,340       2,030,963  
                 
              7,072,015  
                 
 
Media 0.2%
Altice S.A. *
    6,723       430,379  
Reed Elsevier N.V.
    113,980       2,604,833  
Wolters Kluwer N.V.
    49,200       1,366,116  
                 
              4,401,328  
                 
 
Real Estate 0.2%
Unibail-Rodamco SE
    18,040       4,857,013  
                 
 
Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.
    59,040       5,662,252  
 
 
 
See financial notes 11

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Software & Services 0.0%
Gemalto N.V.
    12,300       1,207,178  
                 
 
Telecommunication Services 0.1%
Koninklijke KPN N.V. *
    494,803       1,645,681  
Ziggo N.V.
    16,400       781,995  
                 
              2,427,676  
                 
 
Transportation 0.0%
TNT Express N.V.
    73,800       552,927  
                 
              63,531,487  
 
New Zealand 0.2%
                 
 
Consumer Services 0.0%
SKYCITY Entertainment Group Ltd.
    152,520       482,610  
                 
 
Health Care Equipment & Services 0.0%
Ryman Healthcare Ltd.
    31,980       215,770  
                 
 
Materials 0.0%
Fletcher Building Ltd.
    85,280       656,769  
                 
 
Real Estate 0.0%
Kiwi Income Property Trust
    418,200       418,340  
                 
 
Telecommunication Services 0.1%
Spark New Zealand Ltd.
    326,360       801,830  
                 
 
Transportation 0.1%
Auckland International Airport Ltd.
    428,040       1,315,006  
                 
 
Utilities 0.0%
Contact Energy Ltd.
    111,387       517,494  
                 
              4,407,819  
 
Norway 0.7%
                 
 
Banks 0.1%
DNB A.S.A.
    190,240       3,560,148  
                 
 
Energy 0.3%
Aker Solutions A.S.A.
    22,995       349,176  
Seadrill Ltd.
    57,400       2,120,488  
Statoil A.S.A.
    160,720       4,527,177  
Subsea 7 S.A.
    56,580       944,344  
                 
              7,941,185  
                 
 
Food, Beverage & Tobacco 0.1%
Orkla A.S.A.
    164,000       1,486,758  
                 
 
Insurance 0.0%
Gjensidige Forsikring A.S.A.
    36,080       752,884  
                 
 
Materials 0.1%
Norsk Hydro A.S.A.
    137,760       811,770  
Yara International A.S.A.
    29,127       1,466,440  
                 
              2,278,210  
                 
 
Media 0.0%
Schibsted A.S.A.
    14,760       751,476  
                 
 
Telecommunication Services 0.1%
Telenor A.S.A.
    105,780       2,433,358  
                 
              19,204,019  
 
Portugal 0.1%
                 
 
Banks 0.0%
Banco Espirito Santo S.A. - Reg’d *(b)(c)
    505,213       —  
                 
 
Energy 0.0%
Galp Energia, SGPS, S.A.
    62,320       1,108,187  
                 
 
Food & Staples Retailing 0.0%
Jeronimo Martins, SGPS, S.A.
    55,760       757,239  
                 
 
Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d
    31,160       65,301  
                 
 
Utilities 0.1%
EDP - Energias de Portugal S.A.
    415,740       2,017,406  
                 
              3,948,133  
 
Republic of Korea 4.0%
                 
 
Automobiles & Components 0.5%
Hankook Tire Co., Ltd.
    7,937       411,742  
Hyundai Mobis Co., Ltd.
    10,316       2,991,177  
Hyundai Motor Co.
    25,146       5,778,409  
Hyundai Wia Corp.
    2,062       453,500  
Kia Motors Corp.
    44,164       2,665,651  
                 
              12,300,479  
                 
 
Banks 0.4%
BS Financial Group, Inc.
    24,800       410,908  
Hana Financial Group, Inc.
    45,828       1,923,153  
KB Financial Group, Inc. ADR
    82,000       3,336,580  
Kwangju Bank *
    1,977       22,130  
Kyongnam Bank *
    3,021       40,520  
Shinhan Financial Group Co., Ltd. ADR
    96,888       5,010,079  
                 
              10,743,370  
                 
 
Capital Goods 0.4%
CJ Corp.
    1,000       176,537  
Daelim Industrial Co., Ltd.
    3,415       294,365  
Daewoo Engineering & Construction Co., Ltd. *
    75,000       630,209  
Daewoo International Corp.
    5,027       184,679  
Daewoo Shipbuilding & Marine Engineering Co., Ltd.
    15,280       374,484  
Doosan Corp.
    1,746       207,498  
Doosan Heavy Industries & Construction Co., Ltd.
    14,480       412,001  
GS Engineering & Construction Corp. *
    5,464       198,578  
Hyundai Development Co-Engineering & Construction
    6,700       272,242  
Hyundai Engineering & Construction Co., Ltd.
    20,409       1,286,193  
Hyundai Heavy Industries Co., Ltd.
    7,964       1,131,038  
Hyundai Mipo Dockyard
    1,366       173,790  
KCC Corp.
    1,332       897,239  
KEPCO Engineering & Construction Co., Inc.
    2,732       161,665  
LG Corp.
    13,525       945,730  
LG Hausys Ltd.
    1,709       348,896  
Neo Holdings Co., Ltd. *(b)(c)
    1,746       —  
 
 
 
12 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Samsung C&T Corp.
    17,316       1,274,001  
Samsung Engineering Co., Ltd. *
    6,147       387,389  
Samsung Heavy Industries Co., Ltd.
    28,686       770,939  
Samsung Techwin Co., Ltd.
    4,690       197,276  
SK Holdings Co., Ltd.
    3,220       509,700  
                 
              10,834,449  
                 
 
Commercial & Professional Services 0.0%
S-1 Corp.
    6,932       505,911  
                 
 
Consumer Durables & Apparel 0.1%
Coway Co., Ltd.
    10,500       881,256  
LG Electronics, Inc.
    14,304       1,066,505  
                 
              1,947,761  
                 
 
Consumer Services 0.0%
Kangwon Land, Inc.
    24,840       883,162  
                 
 
Diversified Financials 0.1%
Daewoo Securities Co., Ltd. *
    53,600       623,778  
Korea Investment Holdings Co., Ltd.
    13,000       652,596  
Samsung Card Co., Ltd.
    6,960       334,632  
Samsung Securities Co., Ltd.
    14,820       724,228  
                 
              2,335,234  
                 
 
Energy 0.1%
GS Holdings
    14,877       631,643  
S-Oil Corp.
    3,415       157,792  
SK Innovation Co., Ltd.
    9,562       887,405  
                 
              1,676,840  
                 
 
Food & Staples Retailing 0.0%
E-Mart Co., Ltd.
    3,079       740,940  
                 
 
Food, Beverage & Tobacco 0.1%
CJ CheilJedang Corp.
    1,700       633,759  
KT&G Corp.
    18,630       1,743,663  
Lotte Confectionery Co., Ltd.
    300       642,043  
Orion Corp.
    464       399,499  
                 
              3,418,964  
                 
 
Household & Personal Products 0.1%
Amorepacific Corp.
    704       1,465,003  
AMOREPACIFIC Group
    700       730,411  
LG Household & Health Care Ltd.
    1,120       566,655  
                 
              2,762,069  
                 
 
Insurance 0.2%
Dongbu Insurance Co., Ltd.
    12,977       783,266  
Hanwha Life Insurance Co., Ltd.
    20,000       137,285  
Hyundai Marine & Fire Insurance Co., Ltd.
    6,000       184,329  
Samsung Fire & Marine Insurance Co., Ltd.
    6,700       1,833,670  
Samsung Life Insurance Co., Ltd.
    13,416       1,409,146  
                 
              4,347,696  
                 
 
Materials 0.4%
Hanwha Chemical Corp.
    9,562       154,659  
Hyosung Corp.
    7,728       597,540  
Korea Zinc Co., Ltd.
    1,524       632,025  
Kumho Petro Chemical Co., Ltd.
    4,781       383,348  
LG Chem Ltd.
    7,620       2,025,337  
OCI Co., Ltd. *
    3,415       490,046  
POSCO ADR
    64,148       5,311,454  
Samsung Fine Chemicals Co., Ltd.
    4,781       188,609  
                 
              9,783,018  
                 
 
Media 0.0%
Cheil Worldwide, Inc. *
    10,000       226,343  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Celltrion, Inc. *
    12,586       516,995  
Yuhan Corp.
    1,366       233,067  
                 
              750,062  
                 
 
Retailing 0.0%
Hyundai Department Store Co., Ltd.
    2,016       315,140  
Lotte Shopping Co., Ltd.
    2,388       781,908  
                 
              1,097,048  
                 
 
Semiconductors & Semiconductor Equipment 1.0%
Samsung Electronics Co., Ltd. GDR - Reg’d
    34,879       21,241,311  
SK Hynix, Inc. *
    92,560       4,144,410  
                 
              25,385,721  
                 
 
Software & Services 0.2%
Daum Communications Corp.
    3,350       545,475  
NAVER Corp.
    4,748       3,596,296  
NCSoft Corp.
    2,010       287,440  
SK C&C Co., Ltd.
    2,800       586,814  
                 
              5,016,025  
                 
 
Technology Hardware & Equipment 0.1%
LG Display Co., Ltd. ADR *
    82,000       1,415,320  
Samsung Electro-Mechanics Co., Ltd.
    10,245       554,712  
Samsung SDI Co., Ltd.
    11,303       1,688,845  
                 
              3,658,877  
                 
 
Telecommunication Services 0.1%
KT Corp. ADR
    56,580       967,518  
LG Uplus Corp.
    37,570       405,732  
SK Telecom Co., Ltd. ADR
    82,000       2,453,440  
                 
              3,826,690  
                 
 
Transportation 0.1%
CJ Korea Express Co., Ltd. *
    3,145       482,319  
Hyundai Glovis Co., Ltd.
    2,135       636,952  
Korean Air Lines Co., Ltd. *
    4,781       171,870  
                 
              1,291,141  
                 
 
Utilities 0.1%
Korea Electric Power Corp. ADR
    82,000       1,712,160  
Korea Gas Corp. *
    3,633       202,082  
                 
              1,914,242  
                 
              105,446,042  
 
Singapore 1.3%
                 
 
Banks 0.4%
DBS Group Holdings Ltd.
    258,000       3,704,764  
Oversea-Chinese Banking Corp., Ltd.
    362,000       2,900,757  
United Overseas Bank Ltd.
    188,000       3,454,337  
                 
              10,059,858  
                 
 
Capital Goods 0.1%
COSCO Corp. Singapore Ltd. (a)
    217,000       126,066  
Keppel Corp., Ltd.
    185,000       1,615,850  
Noble Group Ltd.
    820,181       893,823  
 
 
 
See financial notes 13

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Singapore Technologies Engineering Ltd.
    432,000       1,266,974  
                 
              3,902,713  
                 
 
Consumer Services 0.0%
Genting Singapore plc
    1,020,000       997,155  
                 
 
Diversified Financials 0.0%
Singapore Exchange Ltd.
    32,000       186,674  
                 
 
Food & Staples Retailing 0.1%
Olam International Ltd.
    820,000       1,741,256  
                 
 
Food, Beverage & Tobacco 0.1%
Golden Agri-Resources Ltd.
    1,640,000       670,219  
Indofood Agri Resources Ltd.
    820,000       568,372  
Wilmar International Ltd.
    266,000       673,553  
                 
              1,912,144  
                 
 
Media 0.0%
Singapore Press Holdings Ltd. (a)
    270,000       897,873  
                 
 
Real Estate 0.3%
CapitaCommercial Trust
    820,000       1,117,032  
CapitaLand Ltd.
    820,000       2,181,498  
CapitaMall Trust
    820,000       1,314,155  
City Developments Ltd.
    84,000       675,123  
Global Logistic Properties Ltd.
    65,000       148,443  
Wing Tai Holdings Ltd.
    892,000       1,336,624  
                 
              6,772,875  
                 
 
Technology Hardware & Equipment 0.0%
Venture Corp., Ltd.
    73,000       469,722  
                 
 
Telecommunication Services 0.2%
Singapore Telecommunications Ltd.
    1,299,000       4,049,129  
                 
 
Transportation 0.1%
ComfortDelGro Corp., Ltd.
    820,000       1,649,265  
Hutchison Port Holdings Trust
    820,000       590,400  
Singapore Post Ltd.
    820,000       1,133,459  
                 
              3,373,124  
                 
              34,362,523  
 
Spain 3.0%
                 
 
Banks 1.4%
Banco Bilbao Vizcaya Argentaria S.A.
    927,420       11,250,916  
Banco de Sabadell S.A.
    606,438       1,913,925  
Banco Popular Espanol S.A.
    259,473       1,623,787  
Banco Santander S.A.
    1,951,600       19,511,219  
Bankia S.A. *
    737,483       1,429,920  
Bankinter S.A.
    95,120       789,465  
CaixaBank S.A.
    305,040       1,839,435  
                 
              38,358,667  
                 
 
Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A.
    32,800       1,384,910  
Ferrovial S.A.
    82,820       1,689,812  
Zardoya Otis S.A.
    24,646       358,399  
                 
              3,433,121  
                 
 
Diversified Financials 0.0%
Corporacion Financiera Alba S.A.
    6,560       390,393  
                 
 
Energy 0.2%
Repsol S.A.
    177,120       4,407,084  
                 
 
Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A.
    90,200       761,344  
                 
 
Insurance 0.0%
Mapfre S.A.
    121,360       456,068  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Grifols S.A.
    39,360       1,836,868  
                 
 
Retailing 0.2%
Inditex S.A.
    192,800       5,599,735  
                 
 
Software & Services 0.1%
Amadeus IT Holding S.A., A Shares
    63,960       2,384,222  
                 
 
Telecommunication Services 0.4%
Telefonica S.A.
    657,797       10,458,056  
                 
 
Transportation 0.1%
Abertis Infraestructuras S.A.
    61,500       1,296,935  
                 
 
Utilities 0.4%
Acciona S.A. *
    5,381       431,509  
Enagas S.A.
    36,900       1,233,101  
Gas Natural SDG S.A.
    87,740       2,696,853  
Iberdrola S.A.
    781,460       5,748,860  
Red Electrica Corp. S.A.
    13,175       1,112,225  
                 
              11,222,548  
                 
              80,605,041  
 
Sweden 2.5%
                 
 
Banks 0.7%
Nordea Bank AB
    514,960       6,729,475  
Skandinaviska Enskilda Banken AB, A Shares
    268,140       3,509,812  
Svenska Handelsbanken AB, A Shares
    97,580       4,585,578  
Swedbank AB, A Shares
    143,500       3,664,049  
                 
              18,488,914  
                 
 
Capital Goods 0.6%
Alfa Laval AB
    58,220       1,332,890  
Assa Abloy AB, B Shares
    47,890       2,425,671  
Atlas Copco AB, A Shares
    110,700       3,231,479  
Atlas Copco AB, B Shares
    71,340       1,906,494  
Sandvik AB
    152,520       1,906,705  
Skanska AB, B Shares
    71,340       1,479,758  
SKF AB, B Shares
    77,080       1,782,363  
Volvo AB, B Shares
    241,080       2,885,871  
                 
              16,951,231  
                 
 
Commercial & Professional Services 0.0%
Securitas AB, B Shares
    81,180       889,093  
                 
 
Consumer Durables & Apparel 0.1%
Electrolux AB, Series B
    50,020       1,272,160  
Husqvarna AB, B Shares
    23,076       175,108  
                 
              1,447,268  
                 
 
Diversified Financials 0.2%
Industrivarden AB, A Shares
    47,560       922,376  
Investment AB Kinnevik, B Shares
    22,960       934,044  
Investor AB, B Shares
    88,560       3,290,233  
                 
              5,146,653  
                 
 
Energy 0.0%
Lundin Petroleum AB *
    32,825       613,063  
 
 
 
14 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Food, Beverage & Tobacco 0.1%
Swedish Match AB
    54,232       1,815,707  
                 
 
Health Care Equipment & Services 0.0%
Elekta AB, B Shares
    22,960       262,330  
Getinge AB, B Shares
    34,440       902,591  
                 
              1,164,921  
                 
 
Household & Personal Products 0.1%
Svenska Cellulosa AB SCA, B Shares
    94,300       2,272,534  
                 
 
Materials 0.0%
Boliden AB
    31,160       494,805  
Holmen AB, B Shares
    9,020       288,407  
                 
              783,212  
                 
 
Media 0.0%
Modern Times Group AB, B Shares
    7,385       279,033  
                 
 
Retailing 0.3%
Hennes & Mauritz AB, B Shares
    154,536       6,590,433  
                 
 
Technology Hardware & Equipment 0.3%
Hexagon AB, B Shares
    40,180       1,317,575  
Telefonaktiebolaget LM Ericsson, B Shares
    462,480       5,781,622  
                 
              7,099,197  
                 
 
Telecommunication Services 0.1%
Tele2 AB, B Shares
    74,620       930,710  
TeliaSonera AB
    352,600       2,579,537  
                 
              3,510,247  
                 
              67,051,506  
 
Switzerland 7.7%
                 
 
Banks 0.0%
Banque Cantonale Vaudoise - Reg’d
    820       447,224  
                 
 
Capital Goods 0.6%
ABB Ltd. - Reg’d *
    420,660       9,567,449  
Geberit AG - Reg’d
    8,200       2,788,994  
Schindler Holding AG
    9,840       1,425,744  
Schindler Holding AG - Reg’d
    7,420       1,081,586  
Sulzer AG - Reg’d
    2,460       327,158  
                 
              15,190,931  
                 
 
Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d *
    27,880       2,115,696  
DKSH Holding AG
    6,560       515,717  
SGS S.A. - Reg’d
    820       1,823,814  
                 
              4,455,227  
                 
 
Consumer Durables & Apparel 0.5%
Cie Financiere Richemont S.A. - Reg’d
    82,820       7,917,116  
The Swatch Group AG
    5,740       3,119,913  
The Swatch Group AG - Reg’d
    11,936       1,225,074  
                 
              12,262,103  
                 
 
Diversified Financials 0.8%
Credit Suisse Group AG - Reg’d *
    211,414       5,974,116  
GAM Holding AG *
    31,160       607,311  
Julius Baer Group Ltd. *
    48,568       2,212,964  
Pargesa Holding S.A.
    4,100       352,989  
UBS AG - Reg’d *
    625,830       11,247,652  
                 
              20,395,032  
                 
 
Energy 0.1%
Transocean Ltd.
    56,580       2,182,023  
                 
 
Food, Beverage & Tobacco 1.6%
Aryzta AG *
    15,580       1,426,416  
Lindt & Spruengli AG - Reg’d
    14       879,347  
Nestle S.A. - Reg’d
    521,520       40,572,474  
                 
              42,878,237  
                 
 
Health Care Equipment & Services 0.1%
Sonova Holding AG - Reg’d
    9,020       1,445,800  
                 
 
Insurance 0.5%
Baloise Holding AG - Reg’d
    7,380       964,553  
Swiss Life Holding AG - Reg’d *
    2,959       747,625  
Swiss Re AG *
    62,320       5,120,467  
Zurich Insurance Group AG *
    24,600       7,440,302  
                 
              14,272,947  
                 
 
Materials 0.5%
Clariant AG - Reg’d *
    13,140       231,853  
Givaudan S.A. - Reg’d *
    2,460       4,093,509  
Holcim Ltd. - Reg’d *
    35,260       2,810,482  
Sika AG
    48       181,864  
Syngenta AG - Reg’d
    16,400       5,900,311  
                 
              13,218,019  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 2.7%
Actelion Ltd. - Reg’d *
    18,860       2,320,819  
Galenica AG - Reg’d
    445       422,722  
Lonza Group AG - Reg’d *
    6,560       752,804  
Novartis AG - Reg’d
    389,500       35,022,465  
Roche Holding AG
    114,800       33,555,670  
                 
              72,074,480  
                 
 
Real Estate 0.0%
Swiss Prime Site AG - Reg’d *
    12,300       984,430  
                 
 
Telecommunication Services 0.1%
Swisscom AG - Reg’d
    4,524       2,632,846  
                 
 
Transportation 0.0%
Kuehne & Nagel International AG - Reg’d
    8,200       1,107,539  
                 
              203,546,838  
 
United Kingdom 18.5%
                 
 
Automobiles & Components 0.1%
GKN plc
    269,780       1,572,161  
                 
 
Banks 2.4%
Barclays plc
    2,557,163       9,531,955  
HSBC Holdings plc
    3,163,560       34,255,289  
Lloyds Banking Group plc *
    8,849,440       11,209,171  
Royal Bank of Scotland Group plc *
    323,140       1,946,982  
Standard Chartered plc
    341,440       6,878,269  
                 
              63,821,666  
                 
 
Capital Goods 0.8%
Ashtead Group plc
    84,460       1,373,914  
BAE Systems plc
    553,500       4,091,468  
Bunzl plc
    44,280       1,210,435  
Cobham plc
    159,900       788,960  
IMI plc
    53,751       1,210,459  
 
 
 
See financial notes 15

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Meggitt plc
    104,960       822,056  
Melrose Industries plc
    242,720       1,099,246  
Rolls-Royce Holdings plc *
    289,460       4,908,155  
Smiths Group plc
    75,440       1,648,776  
The Weir Group plc
    29,520       1,296,719  
Travis Perkins plc
    40,180       1,163,085  
Wolseley plc
    49,259       2,648,905  
                 
              22,262,178  
                 
 
Commercial & Professional Services 0.4%
Aggreko plc
    42,111       1,190,307  
Babcock International Group plc
    56,741       1,056,347  
Capita plc
    102,500       2,088,683  
Experian plc
    161,540       2,811,547  
G4S plc
    232,880       1,024,901  
Intertek Group plc
    20,500       953,610  
Rentokil Initial plc
    365,720       770,144  
Serco Group plc
    59,141       304,870  
                 
              10,200,409  
                 
 
Consumer Durables & Apparel 0.2%
Barratt Developments plc
    69,567       427,358  
Berkeley Group Holdings plc
    41,820       1,665,471  
Burberry Group plc
    98,915       2,334,319  
Persimmon plc *
    19,414       426,881  
Taylor Wimpey plc
    574,000       1,092,447  
                 
              5,946,476  
                 
 
Consumer Services 0.4%
Carnival plc
    21,647       807,442  
Compass Group plc
    257,147       4,183,019  
InterContinental Hotels Group plc
    36,472       1,398,581  
Merlin Entertainments plc
    41,920       239,488  
TUI Travel plc
    161,540       999,333  
Whitbread plc
    33,620       2,450,571  
William Hill plc
    232,296       1,350,249  
                 
              11,428,683  
                 
 
Diversified Financials 0.3%
3i Group plc
    176,300       1,151,250  
Aberdeen Asset Management plc
    226,634       1,635,004  
Ashmore Group plc
    56,580       330,757  
Hargreaves Lansdown plc
    37,720       702,860  
ICAP plc
    136,940       862,388  
Investec plc
    64,780       590,095  
London Stock Exchange Group plc
    16,400       556,437  
Schroders plc
    25,420       1,028,388  
Schroders plc, Non-Voting Shares
    16,400       525,660  
                 
              7,382,839  
                 
 
Energy 3.1%
AMEC plc
    54,120       1,011,147  
BG Group plc
    549,485       10,964,367  
BP plc
    3,094,680       24,754,336  
John Wood Group plc
    82,820       1,079,026  
Petrofac Ltd.
    42,640       799,494  
Royal Dutch Shell plc, A Shares
    630,981       25,547,826  
Royal Dutch Shell plc, B Shares
    404,370       17,094,484  
Tullow Oil plc
    162,360       1,968,366  
                 
              83,219,046  
                 
 
Food & Staples Retailing 0.3%
J Sainsbury plc
    259,500       1,251,089  
Tesco plc
    1,295,600       4,947,757  
William Morrison Supermarkets plc
    432,960       1,276,292  
                 
              7,475,138  
                 
 
Food, Beverage & Tobacco 2.3%
Associated British Foods plc
    60,680       2,885,167  
British American Tobacco plc
    295,282       17,425,982  
Coca-Cola HBC AG CDI *
    32,800       770,242  
Diageo plc
    410,000       12,089,504  
Imperial Tobacco Group plc
    162,360       7,083,422  
SABMiller plc
    172,340       9,510,873  
Tate & Lyle plc
    90,200       1,013,394  
Unilever plc
    206,690       9,127,288  
                 
              59,905,872  
                 
 
Health Care Equipment & Services 0.1%
Smith & Nephew plc
    139,400       2,414,633  
                 
 
Household & Personal Products 0.4%
Reckitt Benckiser Group plc
    114,800       10,009,333  
                 
 
Insurance 1.1%
Admiral Group plc
    11,480       254,523  
Aviva plc
    460,020       3,980,324  
Direct Line Insurance Group plc
    240,260       1,192,645  
Friends Life Group Ltd.
    325,044       1,655,617  
Legal & General Group plc
    1,078,300       4,328,329  
Old Mutual plc
    846,391       2,795,824  
Prudential plc
    464,220       11,178,816  
RSA Insurance Group plc
    126,038       959,093  
St. James’s Place plc
    56,580       673,730  
Standard Life plc
    349,320       2,230,030  
                 
              29,248,931  
                 
 
Materials 1.8%
Anglo American plc
    227,140       5,771,504  
Antofagasta plc
    42,640       556,247  
BHP Billiton plc
    357,520       11,325,799  
CRH plc
    119,720       2,777,583  
Croda International plc
    26,765       969,898  
Fresnillo plc
    20,500       327,516  
Glencore plc *
    1,636,733       9,850,766  
Johnson Matthey plc
    32,022       1,679,440  
Mondi plc
    47,560       815,917  
Randgold Resources Ltd.
    13,940       1,177,220  
Rexam plc
    135,653       1,142,198  
Rio Tinto plc
    213,552       11,396,878  
Vedanta Resources plc
    15,580       261,591  
                 
              48,052,557  
                 
 
Media 0.6%
British Sky Broadcasting Group plc
    165,785       2,404,984  
Daily Mail & General Trust plc, A Shares
    36,080       520,104  
Informa plc
    63,960       548,103  
ITV plc
    749,480       2,628,802  
Pearson plc
    116,440       2,148,425  
Reed Elsevier plc
    171,380       2,796,383  
WPP plc
    200,080       4,196,730  
                 
              15,243,531  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 1.6%
AstraZeneca plc
    205,965       15,621,704  
GlaxoSmithKline plc
    778,535       19,064,564  
Shire plc
    103,320       8,447,306  
                 
              43,133,574  
 
 
 
16 See financial notes

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Real Estate 0.3%
Hammerson plc
    173,840       1,753,880  
Intu Properties plc
    177,120       1,005,999  
Land Securities Group plc
    128,740       2,313,368  
SEGRO plc
    161,540       992,895  
The British Land Co. plc
    224,680       2,725,766  
                 
              8,791,908  
                 
 
Retailing 0.3%
Kingfisher plc
    437,060       2,204,397  
Marks & Spencer Group plc
    267,320       1,908,547  
Next plc
    26,240       3,091,863  
Sports Direct International plc *
    17,221       207,491  
                 
              7,412,298  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc
    226,420       3,651,220  
                 
 
Software & Services 0.1%
The Sage Group plc
    200,228       1,309,164  
                 
 
Telecommunication Services 0.9%
BT Group plc
    1,225,080       7,873,709  
Inmarsat plc
    71,340       829,937  
Vodafone Group plc
    4,404,710       15,124,005  
                 
              23,827,651  
                 
 
Transportation 0.1%
easyJet plc
    30,340       672,668  
International Consolidated Airlines Group S.A. *
    188,600       1,131,341  
Royal Mail plc
    87,543       649,007  
                 
              2,453,016  
                 
 
Utilities 0.8%
Centrica plc
    808,945       4,290,994  
Drax Group plc
    59,860       623,813  
National Grid plc
    607,718       9,073,310  
Severn Trent plc
    41,820       1,350,851  
SSE plc
    173,020       4,361,863  
United Utilities Group plc
    103,320       1,504,832  
                 
              21,205,663  
                 
              489,967,947  
                 
Total Common Stock
(Cost $2,325,188,864)     2,631,180,543  
         
                 
                 
 
 Other Investment Companies 0.3% of net assets
 
United States 0.3%
                 
 
Money Market Fund 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    6,727,585       6,727,585  
                 
 
Securities Lending Collateral 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    700,031       700,031  
                 
Total Other Investment Companies
(Cost $7,427,616)     7,427,616  
         
                 
                 
 
 Preferred Stock 0.4% of net assets
 
Germany 0.4%
                 
 
Automobiles & Components 0.3%
Porsche Automobil Holding SE
    26,240       2,393,511  
Volkswagen AG
    26,250       5,907,396  
                 
              8,300,907  
                 
 
Household & Personal Products 0.1%
Henkel AG & Co. KGaA
    24,600       2,585,770  
                 
Total Preferred Stock
(Cost $9,451,515)     10,886,677  
         
                 
                 
 
 Rights 0.0% of net assets
 
Singapore 0.0%
                 
 
Banks 0.0%
Oversea-Chinese Banking Corp., Ltd. *(b)(c)
    45,250       85,210  
                 
Total Rights
(Cost $—)     85,210  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
Rate, Maturity Date   ($)   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
                 
 
U.S. Treasury Bills
0.00%, 09/18/14 (e)(f)
    22,000       22,000  
0.01%, 09/18/14 (e)(f)
    200,000       199,999  
0.02%, 09/18/14 (e)(f)
    86,000       85,999  
                 
Total Short-Term Investments
(Cost $307,998)     307,998  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,350,253,453 and the unrealized appreciation and depreciation were $359,525,332 and ($59,890,741), respectively, with a net unrealized appreciation of $299,634,591.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $658,392.
(b) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c) Illiquid security. At the period end, the value of these amounted to $302,948 or 0.0% of net assets.
(d) The rate shown is the 7-day yield.
(e) The rate shown is the purchase yield.
(f) All or a portion of this security is held as collateral for open futures contracts.
 
 
 
 
See financial notes 17

Table of Contents

 
 Schwab International Equity ETF
 

 
Portfolio Holdings continued
 
     
ADR —
  American Depositary Receipt
CDI —
  CHESS Depositary Interest
CVA —
  Dutch Certificate
ETF —
  Exchange Traded Fund
GDR —
  Global Depositary Receipt
Reg’d —
  Registered
REIT —
  Real Estate Investment Trust
RSP —
  Risparmio (Convertible Savings Shares)
 
In addition to the above, the fund held the following at 8/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
MSCI EAFE, e-mini, Long, expires 09/19/14
    20       1,920,800       45,664  
 
 
 
18 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .2%   Common Stock     339,185,692       399,996,838  
  1 .0%   Other Investment Companies     3,927,865       4,297,156  
  0 .3%   Preferred Stock     967,782       1,134,218  
 
 
  100 .5%   Total Investments     344,081,339       405,428,212  
  (0 .5)%   Other Assets and
Liabilities, Net 		            (2,198,756 )
 
 
  100 .0%   Net Assets             403,229,456  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.2% of net assets
 
Australia 5.3%
                 
 
Automobiles & Components 0.0%
ARB Corp., Ltd.
    13,080       162,831  
                 
 
Capital Goods 0.3%
Bradken Ltd.
    50,112       220,288  
Cardno Ltd. (c)
    28,258       173,907  
Hills Ltd.
    41,672       63,141  
Monadelphous Group Ltd. (c)
    25,422       372,351  
Seven Group Holdings Ltd.
    28,258       204,037  
UGL Ltd. *
    39,149       238,004  
                 
              1,271,728  
                 
 
Commercial & Professional Services 0.4%
Cabcharge Australia Ltd.
    59,815       302,103  
McMillan Shakespeare Ltd.
    13,080       142,645  
Mineral Resources Ltd.
    30,080       299,062  
SAI Global Ltd.
    56,526       247,954  
Transfield Services Ltd. *
    133,100       217,855  
Transpacific Industries Group Ltd.
    261,620       220,224  
                 
              1,429,843  
                 
 
Consumer Durables & Apparel 0.1%
Billabong International Ltd. *
    101,269       53,515  
G.U.D. Holdings Ltd. (c)
    35,824       263,024  
                 
              316,539  
                 
 
Consumer Services 0.5%
Ainsworth Game Technology Ltd.
    33,156       104,196  
Ardent Leisure Group
    70,650       206,827  
Domino’s Pizza Enterprises Ltd.
    11,277       270,329  
G8 Education Ltd.
    87,200       438,783  
Invocare Ltd.
    46,628       496,731  
Navitas Ltd.
    75,393       378,666  
Retail Food Group Ltd.
    19,781       87,696  
Vocation Ltd.
    36,300       106,268  
                 
              2,089,496  
                 
 
Diversified Financials 0.2%
BT Investment Management Ltd.
    21,800       133,959  
FlexiGroup Ltd.
    70,650       259,030  
Magellan Financial Group Ltd.
    17,109       214,427  
OzForex Group Ltd.
    52,604       122,017  
                 
              729,433  
                 
 
Energy 0.4%
AWE Ltd. *
    150,270       244,553  
Beach Energy Ltd.
    296,450       450,563  
Drillsearch Energy Ltd. *(c)
    86,772       118,085  
Horizon Oil Ltd. *(c)
    224,600       71,423  
Karoon Gas Australia Ltd. *
    61,624       218,444  
Paladin Energy Ltd. *
    186,128       73,986  
Roc Oil Co., Ltd. *
    114,177       73,151  
Senex Energy Ltd. *
    195,629       107,039  
Sundance Energy Australia Ltd. *
    104,884       133,413  
                 
              1,490,657  
                 
 
Food, Beverage & Tobacco 0.2%
Australian Agricultural Co., Ltd. *
    65,400       76,155  
GrainCorp Ltd., Class A
    65,795       557,534  
Tassal Group Ltd.
    27,250       101,693  
                 
              735,382  
                 
 
Health Care Equipment & Services 0.2%
Australian Pharmaceutical Industries Ltd.
    145,587       79,658  
Primary Health Care Ltd.
    150,594       636,645  
Sigma Pharmaceuticals Ltd.
    354,018       273,168  
                 
              989,471  
                 
 
Insurance 0.1%
Cover-More Group Ltd.
    47,346       102,736  
NIB Holdings Ltd.
    109,000       345,602  
Steadfast Group Ltd.
    59,082       86,481  
                 
              534,819  
                 
 
Materials 0.6%
Beadell Resources Ltd. *
    193,314       92,211  
Evolution Mining Ltd. (c)
    113,052       79,832  
Independence Group NL
    70,010       305,793  
Lynas Corp., Ltd. *
    631,302       94,473  
Mount Gibson Iron Ltd.
    196,210       126,626  
Northern Star Resources Ltd.
    111,304       182,700  
PanAust Ltd.
    178,200       381,675  
Papillon Resources Ltd. *
    108,084       178,426  
Regis Resources Ltd.
    60,500       100,722  
Sandfire Resources NL *
    33,517       198,749  
Saracen Mineral Holdings Ltd. *
    155,099       55,850  
Sirius Resources NL *
    41,462       146,974  
Sundance Resources Ltd. *
    1,199,090       95,328  
Syrah Resources Ltd. *
    27,250       128,709  
Tiger Resources Ltd. *(a)
    332,470       93,288  
Western Areas Ltd.
    51,680       237,331  
                 
              2,498,687  
                 
 
Media 0.2%
APN News & Media Ltd. *
    148,883       103,045  
Nine Entertainment Co. Holdings Ltd. *
    121,000       233,133  
Southern Cross Media Group Ltd.
    152,410       152,527  
 
 
 
See financial notes 19

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
STW Communications Group Ltd.
    58,836       71,538  
Village Roadshow Ltd.
    27,250       189,623  
                 
              749,866  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Mayne Pharma Group Ltd. *
    108,034       79,825  
Mesoblast Ltd. *(c)
    51,572       242,623  
Sirtex Medical Ltd.
    9,819       200,205  
                 
              522,653  
                 
 
Real Estate 0.6%
Abacus Property Group
    121,295       306,307  
Aveo Group
    102,746       221,026  
BWP Trust
    167,794       414,316  
Charter Hall Group
    79,952       338,001  
Charter Hall Retail REIT
    69,413       257,740  
Cromwell Property Group
    327,020       307,391  
Investa Office Fund
    123,148       422,712  
                 
              2,267,493  
                 
 
Retailing 0.5%
Automotive Holdings Group Ltd.
    94,789       358,171  
Breville Group Ltd.
    23,577       160,315  
JB Hi-Fi Ltd.
    24,476       386,195  
Myer Holdings Ltd.
    181,067       409,832  
Pacific Brands Ltd.
    328,480       162,830  
Premier Investments Ltd.
    28,258       255,046  
Super Retail Group Ltd.
    35,320       312,179  
The Reject Shop Ltd. (c)
    7,062       63,805  
Wotif.com Holdings Ltd.
    24,415       75,357  
                 
              2,183,730  
                 
 
Software & Services 0.3%
carsales.com Ltd.
    56,281       585,878  
Iress Ltd.
    39,344       377,920  
SMS Management & Technology Ltd.
    26,160       104,476  
UXC Ltd.
    75,634       60,837  
                 
              1,129,111  
                 
 
Telecommunication Services 0.1%
Amcom Telecommunications Ltd.
    25,274       46,450  
iiNET Ltd.
    26,160       188,889  
M2 Group Ltd. (c)
    36,816       253,778  
                 
              489,117  
                 
 
Transportation 0.2%
Mermaid Marine Australia Ltd.
    63,009       136,134  
Qube Holdings Ltd.
    121,000       273,874  
Virgin Australia Holdings Ltd. *
    566,241       219,786  
Virgin Australia International Holdings Ltd. (a)(b)
    424,000       —  
                 
              629,794  
                 
 
Utilities 0.3%
DUET Group
    274,700       626,902  
Energy World Corp. Ltd. *
    325,065       112,492  
Spark Infrastructure Group
    325,065       598,945  
                 
              1,338,339  
                 
              21,558,989  
 
Austria 0.7%
                 
 
Capital Goods 0.1%
Wienerberger AG
    30,544       457,847  
Zumtobel AG
    5,639       117,877  
                 
              575,724  
                 
 
Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG
    3,066       323,083  
                 
 
Materials 0.1%
Mayr Melnhof Karton AG
    1,463       171,046  
RHI AG
    6,122       183,938  
                 
              354,984  
                 
 
Real Estate 0.3%
Atrium European Real Estate Ltd. *
    60,820       333,267  
CA Immobilien Anlagen AG *
    17,358       359,650  
Conwert Immobilien Invest SE *
    18,234       227,881  
S IMMO AG *
    14,124       108,927  
                 
              1,029,725  
                 
 
Technology Hardware & Equipment 0.0%
Kapsch TrafficCom AG
    1,960       57,185  
                 
 
Transportation 0.1%
Flughafen Wien AG
    1,048       94,159  
Oesterreichische Post AG
    10,084       473,260  
                 
              567,419  
                 
 
Utilities 0.0%
EVN AG
    7,491       101,632  
                 
              3,009,752  
 
Belgium 1.5%
                 
 
Consumer Durables & Apparel 0.0%
Van de Velde N.V.
    1,834       92,294  
                 
 
Diversified Financials 0.5%
Ackermans & van Haaren N.V.
    6,630       804,226  
Gimv N.V.
    3,267       160,061  
KBC Ancora *
    3,736       122,780  
RHJ International S.A. *
    46,492       237,608  
Sofina S.A.
    4,889       558,459  
                 
              1,883,134  
                 
 
Energy 0.0%
Euronav S.A. *
    7,892       96,407  
                 
 
Health Care Equipment & Services 0.1%
AGFA-Gevaert N.V. *
    41,141       118,624  
Arseus N.V.
    6,050       330,198  
                 
              448,822  
                 
 
Materials 0.1%
NV Bekaert S.A.
    7,212       268,650  
Tessenderlo Chemie N.V. *
    9,896       297,133  
                 
              565,783  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
ThromboGenics N.V. *(c)
    7,840       85,919  
                 
 
Real Estate 0.3%
Befimmo S.A.
    5,112       414,045  
Cofinimmo
    3,668       453,774  
Warehouses De Pauw S.C.A.
    2,220       167,409  
                 
              1,035,228  
                 
 
Retailing 0.1%
D’Ieteren S.A. N.V.
    9,865       410,551  
 
 
 
20 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Melexis N.V.
    5,812       267,179  
                 
 
Technology Hardware & Equipment 0.1%
Barco N.V.
    2,382       169,240  
EVS Broadcast Equipment S.A.
    4,176       180,751  
                 
              349,991  
                 
 
Telecommunication Services 0.0%
Mobistar S.A. *
    5,929       117,497  
                 
 
Transportation 0.1%
bpost S.A.
    22,836       563,842  
                 
 
Utilities 0.1%
Elia System Operator S.A. N.V.
    5,490       268,503  
                 
              6,185,150  
 
Canada 18.1%
                 
 
Automobiles & Components 0.2%
Linamar Corp.
    13,166       761,741  
Martinrea International, Inc.
    6,231       82,084  
                 
              843,825  
                 
 
Banks 0.6%
Canadian Western Bank
    15,577       584,021  
Genworth MI Canada, Inc.
    14,927       529,790  
Home Capital Group, Inc.
    19,549       977,134  
Laurentian Bank of Canada
    4,739       217,432  
                 
              2,308,377  
                 
 
Capital Goods 0.9%
Aecon Group, Inc.
    15,577       237,801  
ATS Automation Tooling Systems, Inc. *
    25,305       310,962  
CAE, Inc.
    66,746       826,980  
MacDonald, Dettwiler & Associates Ltd.
    9,341       714,902  
Russel Metals, Inc.
    15,577       523,852  
Toromont Industries Ltd.
    18,695       468,603  
Westport Innovations, Inc. *
    14,124       203,771  
WSP Global, Inc.
    8,470       284,845  
                 
              3,571,716  
                 
 
Commercial & Professional Services 0.6%
Black Diamond Group Ltd.
    3,630       100,459  
Progressive Waste Solutions Ltd.
    30,421       788,324  
Ritchie Bros. Auctioneers, Inc.
    25,946       617,824  
Stantec, Inc.
    12,643       863,652  
Transcontinental, Inc., Class A
    14,124       196,740  
                 
              2,566,999  
                 
 
Consumer Durables & Apparel 0.5%
Dorel Industries, Inc., Class B
    7,216       244,469  
Gildan Activewear, Inc.
    28,258       1,623,972  
                 
              1,868,441  
                 
 
Consumer Services 0.1%
Great Canadian Gaming Corp. *
    11,770       214,296  
                 
 
Diversified Financials 0.7%
AGF Management Ltd., Class B
    15,577       178,638  
Canaccord Genuity Group, Inc.
    14,992       166,677  
Dundee Corp., Class A *
    13,579       236,592  
Element Financial Corp. *
    41,503       539,855  
GMP Capital, Inc.
    7,632       58,537  
Onex Corp.
    23,510       1,372,130  
TMX Group Ltd.
    7,282       366,668  
                 
              2,919,097  
                 
 
Energy 6.3%
Advantage Oil & Gas Ltd. *
    46,768       289,727  
AltaGas Ltd.
    28,258       1,369,982  
Athabasca Oil Corp. *
    89,829       655,861  
Bankers Petroleum Ltd. *
    74,309       452,122  
Baytex Energy Corp.
    33,120       1,484,484  
Bellatrix Exploration Ltd. *
    27,206       211,177  
Birchcliff Energy Ltd. *
    28,258       330,838  
BlackPearl Resources, Inc. *
    84,784       174,297  
Bonavista Energy Corp.
    42,392       579,165  
Bonterra Energy Corp.
    5,002       303,601  
Calfrac Well Services Ltd.
    19,622       371,005  
Canadian Energy Services & Technology Corp.
    27,234       271,650  
Crew Energy, Inc. *
    28,566       293,626  
Denison Mines Corp. *
    141,310       191,496  
Enerflex Ltd.
    15,577       301,273  
Enerplus Corp.
    42,392       972,700  
Ensign Energy Services, Inc.
    32,472       488,240  
Gibson Energy, Inc.
    28,258       949,531  
Gran Tierra Energy, Inc. *
    49,279       331,177  
Kelt Exploration Ltd. *
    24,200       304,745  
Keyera Corp.
    18,703       1,649,347  
Legacy Oil & Gas, Inc. *
    30,421       219,586  
Lightstream Resources Ltd.
    51,873       300,311  
Mullen Group Ltd.
    15,577       416,727  
NuVista Energy Ltd. *
    31,164       334,695  
Paramount Resources Ltd., A Shares *
    12,893       716,707  
Parkland Fuel Corp.
    14,992       285,674  
Pason Systems, Inc.
    15,577       497,574  
Pengrowth Energy Corp.
    130,810       835,689  
Peyto Exploration & Development Corp.
    28,258       1,003,716  
Precision Drilling Corp.
    70,650       902,705  
Savanna Energy Services Corp.
    26,779       194,285  
Secure Energy Services, Inc.
    21,138       522,434  
ShawCor Ltd.
    14,534       789,572  
Tourmaline Oil Corp. *
    40,975       2,080,197  
Trican Well Service Ltd.
    39,711       575,118  
Trilogy Energy Corp.
    17,030       453,401  
Trinidad Drilling Ltd.
    38,580       355,658  
Veresen, Inc.
    42,392       727,669  
Vermilion Energy, Inc.
    21,684       1,413,883  
Whitecap Resources, Inc.
    43,560       739,285  
                 
              25,340,930  
                 
 
Food & Staples Retailing 0.3%
Empire Co., Ltd., A Shares
    10,793       752,102  
The Jean Coutu Group PJC, Inc., A Shares
    22,613       470,292  
The North West Co., Inc.
    3,270       74,278  
                 
              1,296,672  
                 
 
Food, Beverage & Tobacco 0.2%
Cott Corp.
    31,164       233,856  
Maple Leaf Foods, Inc.
    22,829       426,169  
                 
              660,025  
 
 
 
See financial notes 21

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Health Care Equipment & Services 0.1%
Extendicare, Inc.
    31,164       246,497  
                 
 
Insurance 0.2%
Industrial Alliance Insurance & Financial Services, Inc.
    23,540       1,018,638  
                 
 
Materials 3.2%
Alamos Gold, Inc.
    32,254       297,340  
Argonaut Gold, Inc. *
    27,955       114,681  
AuRico Gold, Inc.
    69,788       318,461  
B2Gold Corp. *
    138,612       357,791  
Canexus Corp.
    40,976       202,094  
Canfor Corp. *
    25,997       604,420  
Capstone Mining Corp. *
    79,564       198,772  
CCL Industries, Inc., Class B
    9,448       987,173  
Centerra Gold, Inc.
    30,250       182,936  
China Gold International Resources Corp. Ltd. *
    64,825       184,062  
Continental Gold Ltd. *
    19,296       62,260  
Detour Gold Corp. *
    35,816       452,013  
Dominion Diamond Corp. *
    15,577       211,523  
Dundee Precious Metals, Inc. *
    30,421       156,767  
Endeavour Silver Corp. *
    14,124       78,904  
First Majestic Silver Corp. *
    28,258       290,200  
HudBay Minerals, Inc.
    48,804       494,901  
IAMGOLD Corp. *
    86,126       346,965  
Imperial Metals Corp. *
    15,264       126,643  
Lundin Mining Corp. *
    122,136       655,295  
Major Drilling Group International, Inc.
    29,711       223,500  
Methanex Corp.
    23,794       1,594,675  
Nevsun Resources Ltd.
    42,392       175,860  
New Gold, Inc. *
    106,420       689,682  
Novagold Resources, Inc. *
    70,650       279,409  
OceanaGold Corp. *
    59,432       163,270  
Pan American Silver Corp.
    38,238       549,908  
Pretium Resources, Inc. *
    14,124       105,206  
SEMAFO, Inc. *
    50,678       226,118  
Sherritt International Corp.
    64,771       254,964  
Silver Standard Resources, Inc. *
    15,577       146,615  
Stella-Jones, Inc.
    7,332       201,693  
Tahoe Resources, Inc. *
    23,033       591,140  
Taseko Mines Ltd. *
    46,768       102,612  
Thompson Creek Metals Co., Inc. *
    33,222       95,861  
Torex Gold Resources, Inc. *
    148,243       241,890  
West Fraser Timber Co., Ltd.
    16,490       836,851  
                 
              12,802,455  
                 
 
Media 0.7%
Aimia, Inc.
    45,957       730,821  
Cineplex, Inc.
    14,124       533,320  
Cogeco Cable, Inc.
    4,087       236,234  
Corus Entertainment, Inc., B Shares
    14,124       318,352  
Imax Corp. *
    14,834       411,619  
Quebecor, Inc., Class B
    23,130       591,497  
Torstar Corp., Class B
    14,834       108,306  
                 
              2,930,149  
                 
 
Real Estate 1.2%
Allied Properties Real Estate Investment Trust
    3,920       129,010  
Artis Real Estate Investment Trust
    16,232       238,224  
Boardwalk Real Estate Investment Trust
    4,133       262,363  
Calloway Real Estate Investment Trust
    16,578       407,592  
Canadian Apartment Properties Real Estate Investment Trust
    15,577       341,768  
Canadian Real Estate Investment Trust
    11,052       492,819  
Chartwell Retirement Residences
    34,549       357,035  
Cominar Real Estate Investment Trust
    14,644       260,683  
Dream Office Real Estate Investment Trust
    14,266       382,312  
Dream Unlimited Corp., Class A *
    15,577       196,157  
First Capital Realty, Inc.
    23,806       423,998  
FirstService Corp.
    4,536       249,851  
Granite Real Estate Investment Trust
    4,840       181,018  
H&R Real Estate Investment Trust
    30,452       649,324  
InnVest Real Estate Investment Trust
    13,080       69,093  
Morguard Real Estate Investment Trust
    8,801       156,183  
                 
              4,797,430  
                 
 
Retailing 0.5%
Dollarama, Inc.
    14,293       1,219,731  
Hudson’s Bay Co.
    15,936       241,225  
RONA, Inc.
    28,258       372,258  
                 
              1,833,214  
                 
 
Software & Services 0.7%
Constellation Software, Inc.
    3,244       805,894  
DH Corp.
    15,514       465,098  
Open Text Corp.
    28,258       1,591,149  
                 
              2,862,141  
                 
 
Technology Hardware & Equipment 0.1%
Avigilon Corp. *
    6,259       107,034  
Celestica, Inc. *
    32,254       355,619  
Wi-Lan, Inc.
    27,225       105,662  
                 
              568,315  
                 
 
Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.
    11,709       333,325  
                 
 
Transportation 0.2%
TransForce, Inc.
    15,577       401,936  
Westshore Terminals Investment Corp.
    11,411       380,490  
                 
              782,426  
                 
 
Utilities 0.7%
Algonquin Power & Utilities Corp.
    37,571       313,453  
Atco Ltd., Class I
    21,738       937,655  
Atlantic Power Corp.
    15,534       61,434  
Capital Power Corp.
    14,124       365,876  
Emera, Inc.
    14,749       467,454  
Innergex Renewable Energy, Inc.
    14,124       139,189  
Just Energy Group, Inc.
    21,176       126,109  
Northland Power, Inc.
    14,124       235,671  
Superior Plus Corp.
    28,258       386,586  
                 
              3,033,427  
                 
              72,798,395  
 
Denmark 1.3%
                 
 
Banks 0.4%
Jyske Bank A/S *
    18,637       1,018,199  
 
 
 
22 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Sydbank A/S *
    18,960       584,298  
                 
              1,602,497  
                 
 
Capital Goods 0.1%
NKT Holding A/S
    6,431       379,772  
                 
 
Consumer Durables & Apparel 0.0%
Bang & Olufsen A/S *
    7,062       81,159  
                 
 
Food, Beverage & Tobacco 0.0%
Royal UNIBREW *
    1,040       184,982  
                 
 
Health Care Equipment & Services 0.3%
GN Store Nord A/S
    44,961       1,024,677  
                 
 
Insurance 0.2%
Topdanmark A/S *
    23,665       731,804  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Alk-Abello A/S
    2,189       292,594  
Bavarian Nordic A/S *
    3,929       77,804  
Genmab A/S *
    10,507       420,399  
                 
              790,797  
                 
 
Retailing 0.0%
Matas A/S
    8,446       200,850  
                 
 
Software & Services 0.1%
SimCorp A/S
    11,308       333,888  
                 
              5,330,426  
 
Finland 1.9%
                 
 
Capital Goods 0.5%
Cargotec Oyj, B Shares
    10,912       396,559  
Cramo Oyj
    3,957       70,990  
Konecranes Oyj
    13,280       422,442  
Outotec Oyj (c)
    45,195       408,679  
Ramirent Oyj
    17,043       152,205  
Uponor Oyj
    14,124       217,854  
YIT Oyj
    30,936       284,835  
                 
              1,953,564  
                 
 
Commercial & Professional Services 0.1%
Caverion Corp.
    30,936       249,791  
Lassila & Tikanoja Oyj
    13,079       235,502  
                 
              485,293  
                 
 
Consumer Durables & Apparel 0.2%
Amer Sports Oyj
    30,590       612,456  
                 
 
Food, Beverage & Tobacco 0.0%
Raisio plc, V Shares
    19,620       99,239  
                 
 
Materials 0.4%
Huhtamaki Oyj
    25,626       688,593  
Kemira Oyj
    21,643       302,472  
Metsa Board Oyj
    64,580       296,026  
Outokumpu Oyj *
    46,259       358,282  
                 
              1,645,373  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Orion Oyj, Class B
    17,722       696,801  
                 
 
Real Estate 0.1%
Citycon Oyj
    62,941       232,137  
Sponda Oyj
    50,067       262,474  
                 
              494,611  
                 
 
Retailing 0.0%
Stockmann Oyj Abp, B Shares
    7,422       94,194  
                 
 
Software & Services 0.1%
Tieto Oyj
    16,457       448,717  
                 
 
Telecommunication Services 0.3%
Elisa Oyj
    39,240       1,070,953  
                 
 
Transportation 0.0%
Finnair Oyj *
    28,258       94,170  
                 
              7,695,371  
 
France 3.2%
                 
 
Automobiles & Components 0.2%
Burelle S.A.
    60       50,580  
Faurecia
    12,003       404,903  
Plastic Omnium S.A.
    11,770       311,232  
                 
              766,715  
                 
 
Capital Goods 0.2%
Mersen
    4,911       135,844  
Nexans S.A. *
    8,634       364,609  
Saft Groupe S.A.
    7,232       265,204  
Tarkett S.A.
    2,115       65,468  
                 
              831,125  
                 
 
Commercial & Professional Services 0.2%
Derichebourg S.A.
    13,252       39,100  
Teleperformance
    14,189       923,087  
                 
              962,187  
                 
 
Consumer Durables & Apparel 0.0%
Beneteau S.A. *
    3,951       67,447  
                 
 
Energy 0.2%
Bourbon S.A.
    13,929       398,136  
Etablissements Maurel et Prom *
    18,207       284,910  
MPI
    26,687       150,451  
                 
              833,497  
                 
 
Food & Staples Retailing 0.1%
Rallye S.A.
    7,325       350,723  
                 
 
Food, Beverage & Tobacco 0.1%
Bonduelle S.C.A.
    3,920       110,859  
Vilmorin & Cie S.A.
    1,430       162,667  
                 
              273,526  
                 
 
Health Care Equipment & Services 0.3%
Korian-Medica
    11,950       419,013  
Orpea
    9,865       652,178  
                 
              1,071,191  
                 
 
Materials 0.1%
Eramet *
    1,815       199,912  
Vicat
    4,500       328,022  
                 
              527,934  
                 
 
Media 0.5%
Havas S.A.
    74,160       607,787  
IPSOS
    9,224       276,166  
Metropole Television S.A.
    15,171       287,559  
Societe d’Edition de Canal
    33,438       261,625  
Solocal Group *
    107,448       84,918  
Technicolor S.A. - Reg’d *
    59,221       455,633  
                 
              1,973,688  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Eurofins Scientific SE
    1,560       444,152  
 
 
 
See financial notes 23

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Virbac S.A.
    1,598       319,522  
                 
              763,674  
                 
 
Real Estate 0.2%
Mercialys S.A.
    14,124       350,688  
Nexity S.A.
    8,924       365,630  
                 
              716,318  
                 
 
Retailing 0.0%
Groupe Fnac *
    1,864       82,914  
                 
 
Semiconductors & Semiconductor Equipment 0.0%
SOITEC *
    31,604       84,507  
                 
 
Software & Services 0.4%
Alten S.A.
    8,180       368,172  
Altran Technologies S.A.
    40,037       417,200  
Bull *
    11,423       73,727  
GameLoft SE *
    13,080       83,388  
Groupe Steria S.C.A.
    9,079       217,651  
Sopra Group S.A.
    563       53,587  
UBISOFT Entertainment *
    26,996       449,112  
                 
              1,662,837  
                 
 
Technology Hardware & Equipment 0.4%
Ingenico
    9,150       881,270  
Neopost S.A.
    7,905       529,266  
                 
              1,410,536  
                 
 
Utilities 0.1%
ALBIOMA
    2,112       53,691  
Rubis S.C.A.
    8,723       527,503  
                 
              581,194  
                 
              12,960,013  
 
Germany 4.4%
                 
 
Automobiles & Components 0.2%
ElringKlinger AG
    8,503       288,404  
Leoni AG
    9,123       563,649  
                 
              852,053  
                 
 
Banks 0.2%
Aareal Bank AG
    12,880       577,761  
                 
 
Capital Goods 1.2%
Bauer AG *
    1,181       22,868  
BayWa AG
    4,216       199,031  
Deutz AG
    32,951       194,880  
DMG MORI SEIKI AG
    17,672       508,964  
Duerr AG
    3,270       252,534  
Heidelberger Druckmaschinen AG *
    31,345       97,810  
Indus Holding AG
    726       38,055  
KION Group AG
    6,050       248,356  
Kloeckner & Co. SE *
    23,633       324,057  
Krones AG
    3,345       307,057  
KUKA AG
    10,102       609,697  
Nordex SE *
    14,715       266,511  
Norma Group SE
    7,840       377,498  
Pfeiffer Vacuum Technology AG
    3,432       310,115  
Rational AG
    1,312       410,872  
Rheinmetall AG
    3,722       201,767  
SGL Carbon SE *(c)
    10,593       310,805  
                 
              4,680,877  
                 
 
Consumer Durables & Apparel 0.1%
Gerry Weber International AG
    6,597       298,226  
                 
 
Diversified Financials 0.1%
Aurelius AG
    3,270       123,833  
Deutsche Beteiligungs AG
    2,740       78,318  
Grenkeleasing AG
    1,300       130,191  
                 
              332,342  
                 
 
Energy 0.0%
C.A.T. oil AG
    3,002       64,415  
                 
 
Food, Beverage & Tobacco 0.0%
KWS Saat AG
    411       146,332  
                 
 
Health Care Equipment & Services 0.2%
Carl Zeiss Meditec AG
    2,797       85,474  
Rhoen Klinikum AG
    17,650       553,781  
                 
              639,255  
                 
 
Materials 0.3%
Aurubis AG
    13,539       666,798  
Salzgitter AG
    9,680       362,369  
                 
              1,029,167  
                 
 
Media 0.0%
CTS Eventim AG & Co., KGaA
    5,594       156,063  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Gerresheimer AG
    5,393       390,701  
MorphoSys AG *
    7,144       660,682  
Stada Arzneimittel AG
    16,305       652,255  
                 
              1,703,638  
                 
 
Real Estate 0.8%
alstria Office REIT-AG *
    18,974       254,299  
Deutsche Euroshop AG
    13,280       630,252  
DIC Asset AG
    14,124       127,308  
GAGFAH S.A. *
    43,560       854,921  
LEG Immobilien AG *
    9,680       721,933  
Patrizia Immobilien AG *
    8,516       109,903  
TAG Immobilien AG
    31,390       363,274  
                 
              3,061,890  
                 
 
Semiconductors & Semiconductor Equipment 0.2%
Aixtron SE *
    22,686       298,372  
Dialog Semiconductor plc *
    17,753       524,626  
SMA Solar Technology AG *
    1,651       53,062  
                 
              876,060  
                 
 
Software & Services 0.3%
Bechtle AG
    3,488       276,950  
Wirecard AG
    27,898       1,044,908  
                 
              1,321,858  
                 
 
Technology Hardware & Equipment 0.1%
Jenoptik AG
    10,851       143,573  
Wincor Nixdorf AG
    7,873       420,101  
                 
              563,674  
                 
 
Telecommunication Services 0.3%
Drillisch AG
    8,720       334,127  
Freenet AG
    30,542       818,277  
QSC AG
    7,192       22,850  
                 
              1,175,254  
 
 
 
24 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Transportation 0.0%
Hamburger Hafen und Logistik AG
    3,920       95,033  
                 
              17,573,898  
 
Greece 0.8%
                 
 
Capital Goods 0.1%
Ellaktor S.A. *
    23,370       107,125  
Metka S.A.
    5,700       85,817  
                 
              192,942  
                 
 
Consumer Services 0.2%
Intralot S.A. Integrated Lottery Systems & Services *
    19,200       44,764  
OPAP S.A.
    44,577       709,886  
                 
              754,650  
                 
 
Diversified Financials 0.1%
Hellenic Exchanges - Athens Stock Exchange S.A. Holding *
    13,680       127,937  
Marfin Investment Group Holdings S.A. *
    171,000       89,871  
                 
              217,808  
                 
 
Energy 0.0%
Motor Oil Hellas Corinth Refineries S.A.
    10,005       107,933  
                 
 
Materials 0.1%
Mytilineos Holdings S.A. *
    19,651       159,965  
Titan Cement Co. S.A.
    10,048       268,675  
                 
              428,640  
                 
 
Real Estate 0.0%
Eurobank Properties Real Estate Investment Co.
    9,800       119,275  
                 
 
Retailing 0.2%
FF Group *
    11,800       489,603  
JUMBO S.A. *
    23,600       348,163  
                 
              837,766  
                 
 
Utilities 0.1%
Public Power Corp. S.A. *
    22,470       327,052  
The Athens Water Supply & Sewage Co. S.A.
    6,118       76,074  
                 
              403,126  
                 
              3,062,140  
 
Hong Kong 2.0%
                 
 
Automobiles & Components 0.1%
Minth Group Ltd.
    156,000       332,123  
Nexteer Automotive Group Ltd.
    108,000       92,808  
Xinchen China Power Holdings Ltd. *
    179,000       98,852  
                 
              523,783  
                 
 
Capital Goods 0.1%
FDG Electric Vehicles Ltd. *(a)
    1,520,000       107,869  
Louis XIII Holdings Ltd. *
    68,000       50,451  
Singamas Container Holdings Ltd.
    548,000       108,184  
Summit Ascent Holdings Ltd. *
    144,000       88,070  
                 
              354,574  
                 
 
Consumer Durables & Apparel 0.2%
Goodbaby International Holdings Ltd.
    174,000       86,437  
Lung Cheong International Holdings Ltd. *
    678,000       96,230  
Man Wah Holdings Ltd.
    96,800       155,377  
Pacific Textiles Holdings Ltd.
    130,000       155,661  
Stella International Holdings Ltd.
    68,500       188,261  
                 
              681,966  
                 
 
Consumer Services 0.1%
NagaCorp Ltd.
    269,343       210,257  
Regal Hotels International Holdings Ltd.
    64,000       38,565  
REXLot Holdings Ltd. (c)
    2,000,000       229,673  
                 
              478,495  
                 
 
Diversified Financials 0.1%
Value Partners Group Ltd.
    274,000       211,771  
                 
 
Energy 0.1%
Anton Oilfield Services Group (c)
    260,041       111,732  
Honghua Group Ltd. (c)
    521,677       138,663  
Newocean Energy Holdings Ltd. (c)
    160,626       91,814  
Sino Oil & Gas Holdings Ltd. *
    4,925,000       152,513  
SPT Energy Group, Inc. (c)
    144,000       73,206  
Sunshine Oilsands Ltd. *
    308,500       36,223  
                 
              604,151  
                 
 
Food, Beverage & Tobacco 0.1%
Vitasoy International Holdings Ltd.
    242,000       305,382  
                 
 
Materials 0.2%
G-Resources Group Ltd. *
    7,890,000       212,771  
TCC International Holdings Ltd.
    420,000       186,422  
Yingde Gases Group Co., Ltd.
    205,500       219,815  
                 
              619,008  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
The United Laboratories International Holdings Ltd. *
    202,000       155,342  
                 
 
Real Estate 0.3%
COFCO Land Holdings Ltd. *
    588,000       147,946  
Fortune Real Estate Investment Trust
    62,000       57,999  
K Wah International Holdings Ltd.
    274,000       179,246  
Lai Sun Development Co., Ltd. *
    3,081,000       80,303  
Liu Chong Hing Investment Ltd.
    24,000       31,586  
Midland Holdings Ltd. *(c)
    260,000       128,488  
Sunlight Real Estate Investment Trust
    274,000       114,901  
Yuexiu Real Estate Investment Trust
    548,000       282,833  
                 
              1,023,302  
                 
 
Retailing 0.2%
Chow Sang Sang Holdings International Ltd.
    74,000       185,808  
Emperor Watch & Jewellery Ltd.
    1,560,000       93,598  
Giordano International Ltd.
    274,000       162,629  
Luk Fook Holdings International Ltd.
    80,000       250,834  
New World Department Store China Ltd.
    274,000       117,376  
Springland International Holdings Ltd.
    242,000       95,237  
                 
              905,482  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Landing International Development Ltd. *
    1,815,000       111,240  
United Photovoltaics Group Ltd. *
    538,000       64,558  
 
 
 
See financial notes 25

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Varitronix International Ltd.
    153,000       133,453  
                 
              309,251  
                 
 
Technology Hardware & Equipment 0.1%
Ju Teng International Holdings Ltd.
    274,000       158,740  
TCL Communication Technology Holdings Ltd.
    185,000       229,396  
Truly International Holdings Ltd.
    390,000       211,854  
                 
              599,990  
                 
 
Telecommunication Services 0.2%
APT Satellite Holdings Ltd.
    39,000       57,367  
Citic 21CN Co., Ltd. *
    496,000       390,392  
CITIC Telecom International Holdings Ltd.
    189,000       75,842  
SmarTone Telecommunications Holding Ltd.
    137,000       202,226  
                 
              725,827  
                 
 
Transportation 0.1%
Pacific Basin Shipping Ltd.
    708,000       434,841  
SITC International Holdings Co., Ltd.
    186,000       83,278  
                 
              518,119  
                 
              8,016,443  
 
Ireland 0.6%
                 
 
Capital Goods 0.2%
Kingspan Group plc
    48,041       838,139  
                 
 
Consumer Services 0.1%
Paddy Power plc
    7,840       502,401  
                 
 
Food, Beverage & Tobacco 0.3%
C&C Group plc
    92,540       526,581  
Glanbia plc
    32,670       499,182  
                 
              1,025,763  
                 
 
Transportation 0.0%
Aer Lingus Group plc
    56,526       100,888  
                 
              2,467,191  
 
Israel 0.4%
                 
 
Capital Goods 0.0%
Discount Investment Corp. - Reg’d *
    10,900       89,744  
                 
 
Food & Staples Retailing 0.1%
Rami Levi Chain Stores Hashikma Marketing 2006 Ltd.
    3,270       162,840  
                 
 
Health Care Equipment & Services 0.0%
Mazor Robotics Ltd. *
    16,350       111,752  
                 
 
Insurance 0.0%
Menorah Mivtachim Holdings Ltd.
    13,080       148,087  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Evogene Ltd. *
    6,540       85,077  
Kamada Ltd. *
    4,656       31,993  
                 
              117,070  
                 
 
Real Estate 0.1%
Africa Israel Investments Ltd. *
    34,880       57,671  
Africa Israel Properties Ltd. *
    3,969       70,128  
Alony Hetz Properties & Investments Ltd.
    16,350       122,199  
Jerusalem Economy Ltd.
    8,412       70,933  
Jerusalem Oil Exploration *
    2,420       103,896  
Nitsba Holdings 1995 Ltd. *
    6,050       99,302  
                 
              524,129  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Nova Measuring Instruments Ltd. *
    14,124       156,898  
                 
 
Software & Services 0.0%
Allot Communications Ltd. *
    7,062       73,501  
                 
 
Technology Hardware & Equipment 0.1%
AudioCodes Ltd. *
    8,447       46,089  
Gilat Satellite Networks Ltd. *
    10,009       47,543  
Ituran Location and Control Ltd.
    5,639       122,660  
                 
              216,292  
                 
              1,600,313  
 
Italy 3.6%
                 
 
Automobiles & Components 0.1%
Brembo S.p.A.
    4,346       154,391  
Piaggio & C S.p.A. *(c)
    49,454       150,085  
                 
              304,476  
                 
 
Banks 1.1%
Banca Carige S.p.A. *
    1,209,904       193,155  
Banca Monte dei Paschi di Siena S.p.A. *
    929,955       1,393,978  
Banca Popolare dell’Emilia Romagna SC *
    93,775       788,678  
Banca Popolare di Milano Scarl *
    1,028,500       820,295  
Banca Popolare di Sondrio Scarl
    109,429       499,301  
Credito Emiliano S.p.A.
    32,264       298,762  
Credito Valtellinese Scarl *
    295,281       341,299  
                 
              4,335,468  
                 
 
Capital Goods 0.2%
C.I.R. - Compagnie Industriali Riunite S.p.A *
    48,612       70,691  
Danieli & C Officine Meccaniche S.p.A.
    17,734       386,595  
Industria Macchine Automatiche S.p.A.
    1,311       49,785  
Interpump Group S.p.A.
    19,620       262,570  
Trevi Finanziaria Industriale S.p.A.
    5,857       41,892  
                 
              811,533  
                 
 
Consumer Durables & Apparel 0.3%
Brunello Cucinelli S.p.A.
    3,920       98,105  
De’Longhi S.p.A.
    7,062       150,600  
Indesit Co. S.p.A. *
    3,829       54,723  
Moncler S.p.A.
    21,780       342,255  
Safilo Group S.p.A. *(c)
    3,435       71,398  
Tod’s S.p.A. (c)
    4,042       448,824  
                 
              1,165,905  
                 
 
Consumer Services 0.1%
Autogrill S.p.A. *
    24,200       203,530  
                 
 
Diversified Financials 0.3%
Azimut Holding S.p.A.
    27,810       725,667  
Banca Generali S.p.A.
    18,787       511,752  
                 
              1,237,419  
                 
 
Energy 0.1%
ERG S.p.A.
    19,704       276,671  
 
 
 
26 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Saras S.p.A. *
    78,480       93,967  
                 
              370,638  
                 
 
Health Care Equipment & Services 0.2%
DiaSorin S.p.A.
    9,865       389,955  
Sorin S.p.A. *
    155,824       394,083  
                 
              784,038  
                 
 
Insurance 0.4%
Societa Cattolica di Assicurazioni Scarl
    11,949       260,956  
Unipol Gruppo Finanziario S.p.A.
    59,591       325,747  
UnipolSai S.p.A
    233,187       734,098  
UnipolSai S.p.A. RSP
    84,700       258,166  
                 
              1,578,967  
                 
 
Materials 0.1%
Cementir Holding S.p.A.
    9,538       64,827  
Italcementi S.p.A.
    38,312       277,555  
Italmobiliare S.p.A.
    4,079       100,419  
                 
              442,801  
                 
 
Media 0.0%
Gruppo Editoriale L’Espresso S.p.A. *
    20,778       32,459  
RCS MediaGroup S.p.A. *
    40,717       62,643  
                 
              95,102  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.
    30,554       499,047  
                 
 
Real Estate 0.0%
Beni Stabili S.p.A. (c)
    226,325       184,235  
                 
 
Retailing 0.1%
World Duty Free S.p.A. *
    16,799       193,175  
Yoox S.p.A. *
    11,338       293,461  
                 
              486,636  
                 
 
Technology Hardware & Equipment 0.0%
Ei Towers S.p.A. *
    1,404       74,066  
                 
 
Transportation 0.1%
Ansaldo STS S.p.A.
    48,456       513,163  
ASTM S.p.A.
    4,986       68,171  
Societa Iniziative Autostradali e Servizi S.p.A.
    7,260       82,002  
                 
              663,336  
                 
 
Utilities 0.4%
A2A S.p.A.
    355,196       389,965  
ACEA S.p.A.
    26,160       355,606  
Hera S.p.A.
    196,650       553,801  
Iren S.p.A.
    129,549       183,440  
                 
              1,482,812  
                 
              14,720,009  
 
Japan 15.1%
                 
 
Automobiles & Components 0.7%
Akebono Brake Industry Co., Ltd.
    27,400       121,854  
Daido Metal Co., Ltd.
    10,000       127,064  
HI-LEX Corp.
    4,300       115,525  
Keihin Corp.
    13,700       193,727  
Mitsuba Corp.
    6,300       104,186  
Musashi Seimitsu Industry Co., Ltd.
    11,100       251,202  
Nifco, Inc.
    13,700       463,546  
Nippon Seiki Co., Ltd.
    8,000       178,505  
Nissin Kogyo Co., Ltd.
    17,400       314,552  
Pacific Industrial Co., Ltd.
    12,100       90,850  
Press Kogyo Co., Ltd.
    28,000       112,393  
Sanden Corp.
    13,000       79,087  
Showa Corp.
    13,700       153,900  
Toyo Tire & Rubber Co., Ltd.
    13,600       222,423  
TPR Co., Ltd.
    9,600       251,817  
Unipres Corp.
    8,000       158,252  
                 
              2,938,883  
                 
 
Banks 0.9%
Ashikaga Holdings Co., Ltd.
    24,400       97,003  
Bank of the Ryukyus Ltd.
    13,700       221,948  
FIDEA Holdings Co., Ltd.
    90,200       190,151  
Jimoto Holdings, Inc.
    45,100       93,773  
The Bank of Iwate Ltd.
    3,200       149,704  
The Bank of Nagoya Ltd.
    27,000       106,820  
The Bank of Okinawa Ltd.
    3,200       135,381  
The Chiba Kogyo Bank Ltd.
    18,900       139,724  
The Fukui Bank Ltd.
    124,000       293,632  
The Kiyo Bank Ltd.
    24,800       358,088  
The Miyazaki Bank Ltd.
    45,000       144,246  
The Ogaki Kyoritsu Bank Ltd.
    59,000       163,566  
The Oita Bank Ltd.
    48,000       180,661  
The Toho Bank Ltd.
    98,000       349,040  
The Tokyo Tomin Bank Ltd. (c)
    24,200       284,898  
The Towa Bank Ltd.
    189,000       178,293  
The Yachiyo Bank Ltd.
    4,700       149,074  
The Yamagata Bank Ltd.
    22,000       103,980  
TOMONY Holdings, Inc.
    48,400       204,530  
Tsukuba Bank Ltd.
    32,800       118,716  
                 
              3,663,228  
                 
 
Capital Goods 3.9%
Aica Kogyo Co., Ltd.
    18,600       445,104  
Aida Engineering Ltd.
    13,700       131,085  
Asahi Diamond Industrial Co., Ltd.
    13,000       182,702  
Central Glass Co., Ltd.
    93,000       346,450  
CKD Corp.
    6,900       65,423  
Daifuku Co., Ltd.
    15,100       179,220  
Daihen Corp.
    10,000       40,429  
Denyo Co., Ltd.
    13,700       197,683  
Fudo Tetra Corp.
    36,300       87,007  
Fuji Machine Manufacturing Co., Ltd.
    24,200       230,620  
Fujitec Co., Ltd.
    12,100       141,750  
Furukawa Co., Ltd.
    35,000       80,859  
Futaba Corp.
    13,000       200,472  
Hanwa Co., Ltd.
    91,000       359,147  
Hazama Ando Corp.
    42,100       310,831  
Hibiya Engineering Ltd.
    6,300       98,183  
Hitachi Zosen Corp.
    68,500       336,285  
Inaba Denki Sangyo Co., Ltd.
    12,600       431,785  
Iwatani Corp.
    32,000       250,123  
Kanamoto Co., Ltd.
    11,200       512,105  
Kanematsu Corp.
    76,000       127,295  
Kato Works Co., Ltd.
    6,000       43,375  
Kitz Corp.
    41,100       219,970  
Komori Corp.
    13,000       151,042  
Kumagai Gumi Co., Ltd. *
    48,000       170,958  
Kyowa Exeo Corp.
    31,800       434,367  
Kyudenko Corp.
    8,000       93,257  
Maeda Corp.
    32,000       292,323  
Makino Milling Machine Co., Ltd.
    14,000       104,038  
 
 
 
See financial notes 27

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Meidensha Corp.
    44,000       177,042  
Mirait Holdings Corp.
    27,400       312,548  
Miura Co., Ltd.
    12,600       435,424  
MonotaRO Co., Ltd.
    4,800       133,902  
Nachi-Fujikoshi Corp.
    26,000       173,192  
Namura Shipbuilding Co., Ltd.
    8,100       75,398  
Nichias Corp.
    19,000       126,929  
Nihon Trim Co., Ltd.
    1,000       31,044  
Nippon Densetsu Kogyo Co., Ltd.
    8,300       139,179  
Nippon Steel & Sumikin Bussan Corp.
    23,000       90,109  
Nishimatsu Construction Co., Ltd.
    75,000       400,683  
Nishio Rent All Co., Ltd.
    2,000       91,640  
Nitto Boseki Co., Ltd.
    67,000       277,971  
Nitto Kogyo Corp.
    12,100       250,305  
Noritz Corp.
    17,700       304,811  
Obara Group, Inc.
    2,000       76,238  
Oiles Corp.
    12,800       324,297  
Okabe Co., Ltd.
    13,700       164,186  
Okumura Corp.
    96,000       561,852  
OSG Corp.
    13,000       222,121  
Penta-Ocean Construction Co., Ltd.
    68,500       251,884  
Raito Kogyo Co., Ltd.
    8,400       75,360  
Ryobi Ltd.
    21,000       62,665  
Sankyo Tateyama, Inc.
    8,500       164,461  
Sanwa Holdings Corp.
    45,000       329,643  
Shima Seiki Manufacturing Ltd.
    13,000       209,857  
Shinmaywa Industries Ltd.
    13,000       127,766  
SHO-BOND Holdings Co., Ltd.
    5,100       212,081  
Showa Aircraft Industry Co., Ltd.
    5,000       53,761  
Sintokogio Ltd.
    33,400       223,771  
Sodick Co., Ltd.
    28,100       459,565  
Star Micronics Co., Ltd.
    13,700       193,199  
Sumitomo Densetsu Co., Ltd.
    2,800       39,109  
Sumitomo Mitsui Construction Co., Ltd. *
    158,400       193,645  
Tadano Ltd.
    25,000       450,017  
Taikisha Ltd.
    13,700       325,340  
Takasago Thermal Engineering Co., Ltd.
    27,400       346,044  
Takuma Co., Ltd.
    10,000       63,917  
Tekken Corp.
    23,000       109,371  
The Nippon Road Co., Ltd.
    6,000       33,787  
Toa Corp.
    16,000       29,725  
Tokyu Construction Co., Ltd.
    20,900       107,633  
Totetsu Kogyo Co., Ltd.
    13,000       322,607  
Tsubakimoto Chain Co.
    35,000       298,503  
Tsugami Corp.
    5,000       26,520  
Wakita & Co., Ltd.
    10,000       116,090  
YAMABIKO Corp.
    1,800       59,171  
Yokogawa Bridge Holdings Corp.
    7,000       102,623  
                 
              15,620,874  
                 
 
Commercial & Professional Services 0.5%
Daiseki Co., Ltd.
    14,500       260,172  
Duskin Co., Ltd.
    15,300       271,876  
Kokuyo Co., Ltd.
    24,200       193,348  
Meitec Corp.
    10,900       351,495  
Mitsubishi Pencil Co., Ltd.
    10,700       339,380  
Nihon M&A Center, Inc.
    4,800       151,783  
Nissha Printing Co., Ltd.
    6,800       88,367  
Okamura Corp.
    14,000       114,550  
Pilot Corp.
    3,200       175,579  
Sanix, Inc. *
    6,400       54,953  
                 
              2,001,503  
                 
 
Consumer Durables & Apparel 0.7%
Alpine Electronics, Inc.
    13,700       218,651  
Foster Electric Co., Ltd.
    5,500       80,156  
Fujibo Holdings, Inc.
    22,000       71,367  
Fujitsu General Ltd.
    7,000       97,435  
Gunze Ltd.
    101,000       285,835  
JVC Kenwood Corp. *
    41,100       110,381  
Mizuno Corp.
    39,000       226,751  
Pioneer Corp. *
    78,000       242,518  
Sangetsu Co., Ltd.
    13,000       353,391  
Seiko Holdings Corp.
    28,000       122,366  
Seiren Co., Ltd.
    13,000       117,004  
Tamron Co., Ltd.
    7,800       163,981  
Token Corp.
    1,300       59,253  
Tomy Co., Ltd.
    52,000       283,313  
TSI Holdings Co., Ltd.
    39,000       269,173  
Yondoshi Holdings, Inc.
    4,600       93,032  
                 
              2,794,607  
                 
 
Consumer Services 0.6%
Accordia Golf Co., Ltd.
    35,200       421,512  
Colowide Co., Ltd. (c)
    12,100       158,988  
Doutor Nichires Holdings Co., Ltd.
    17,400       285,241  
Fuji Kyuko Co., Ltd.
    4,000       43,048  
HIS Co., Ltd.
    8,200       245,088  
MOS Food Services, Inc.
    12,100       258,574  
Round One Corp.
    17,000       110,786  
Saizeriya Co., Ltd.
    6,400       87,543  
Tokyo Dome Corp.
    54,000       250,546  
Tokyotokeiba Co., Ltd.
    27,000       85,248  
Yoshinoya Holdings Co., Ltd. (c)
    13,200       163,150  
Zensho Holdings Co., Ltd. (c)
    24,200       225,962  
                 
              2,335,686  
                 
 
Diversified Financials 0.6%
Fuyo General Lease Co., Ltd.
    9,100       364,841  
IBJ Leasing Co., Ltd.
    13,000       319,478  
Ichiyoshi Securities Co., Ltd.
    6,300       76,108  
J Trust Co., Ltd.
    27,000       297,849  
Jaccs Co., Ltd.
    19,000       110,834  
Japan Securities Finance Co., Ltd.
    27,400       171,176  
kabu.com Securities Co., Ltd.
    34,300       162,115  
Kyokuto Securities Co., Ltd.
    4,400       75,349  
Marusan Securities Co., Ltd.
    12,800       95,860  
Mito Securities Co., Ltd.
    16,700       63,980  
Monex Group, Inc.
    21,100       66,417  
Ricoh Leasing Co., Ltd.
    3,100       89,671  
Toyo Securities Co., Ltd.
    9,000       25,730  
Zenkoku Hosho Co., Ltd.
    17,900       480,044  
                 
              2,399,452  
                 
 
Energy 0.2%
Itochu Enex Co., Ltd.
    13,700       98,776  
Modec, Inc.
    3,200       87,512  
Nippon Coke & Engineering Co., Ltd.
    65,000       71,329  
Nippon Gas Co., Ltd.
    9,100       274,616  
San-Ai Oil Co., Ltd.
    15,000       115,079  
Shinko Plantech Co., Ltd.
    13,700       106,424  
Toyo Kanetsu KK
    24,000       60,298  
                 
              814,034  
 
 
 
28 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Food & Staples Retailing 0.3%
Ain Pharmaciez, Inc.
    1,900       91,996  
Arcs Co., Ltd.
    13,000       275,304  
Cocokara fine, Inc.
    11,000       291,505  
Kasumi Co., Ltd.
    17,800       144,271  
Valor Co., Ltd.
    13,000       208,606  
Welcia Holdings Co., Ltd.
    3,000       88,222  
Yaoko Co., Ltd.
    1,700       102,277  
Yokohama Reito Co., Ltd.
    16,900       134,374  
                 
              1,336,555  
                 
 
Food, Beverage & Tobacco 0.4%
Fuji Oil Co., Ltd.
    26,000       427,973  
Fujiya Co., Ltd.
    130,000       247,774  
Hokuto Corp.
    13,700       259,269  
Maruha Nichiro Corp.
    13,000       202,724  
Megmilk Snow Brand Co., Ltd.
    13,700       180,144  
Morinaga Milk Industry Co., Ltd.
    85,000       297,011  
Nippon Suisan Kaisha Ltd. *
    52,000       151,167  
                 
              1,766,062  
                 
 
Health Care Equipment & Services 0.5%
Asahi Intecc Co., Ltd.
    2,500       116,956  
Jeol Ltd.
    7,000       29,850  
Mani, Inc.
    1,400       78,837  
Nagaileben Co., Ltd.
    13,700       267,182  
Nihon Kohden Corp.
    10,300       571,093  
Nikkiso Co., Ltd.
    5,000       59,393  
Ship Healthcare Holdings, Inc.
    10,000       319,584  
Toho Holdings Co., Ltd.
    24,400       473,039  
                 
              1,915,934  
                 
 
Household & Personal Products 0.2%
Aderans Co., Ltd.
    12,400       183,699  
Dr Ci:Labo Co., Ltd.
    2,000       70,944  
Fancl Corp.
    13,000       162,430  
Mandom Corp.
    9,600       370,563  
                 
              787,636  
                 
 
Materials 1.8%
ADEKA Corp.
    41,100       549,134  
Asahi Holdings, Inc.
    13,700       242,389  
Daio Paper Corp.
    15,000       133,706  
Earth Chemical Co., Ltd.
    8,700       336,242  
Fuji Seal International, Inc.
    2,900       97,844  
Fujimi, Inc.
    13,700       209,552  
Fujimori Kogyo Co., Ltd.
    1,200       37,080  
Hokuetsu Kishu Paper Co., Ltd.
    36,300       161,434  
Ihara Chemical Industry Co., Ltd.
    12,100       114,728  
Ishihara Sangyo Kaisha Ltd. *
    130,000       115,127  
Kureha Corp.
    37,000       182,712  
Kyoei Steel Ltd.
    13,700       254,126  
Nihon Nohyaku Co., Ltd.
    24,200       254,148  
Nihon Parkerizing Co., Ltd.
    12,100       278,492  
Nippon Light Metal Holdings Co., Ltd.
    243,000       388,295  
Nippon Soda Co., Ltd.
    33,000       174,395  
Nippon Yakin Kogyo Co., Ltd. *(c)
    31,900       92,428  
NOF Corp.
    32,000       219,319  
Pacific Metals Co., Ltd. *
    32,000       135,227  
Sanyo Special Steel Co., Ltd.
    30,000       123,598  
Sumitomo Bakelite Co., Ltd.
    40,000       162,872  
Sumitomo Seika Chemicals Co., Ltd.
    9,000       56,572  
Takasago International Corp.
    22,000       119,016  
Toagosei Co., Ltd.
    58,000       242,306  
Toho Titanium Co., Ltd. *
    12,100       89,336  
Toho Zinc Co., Ltd.
    30,000       127,641  
Tokai Carbon Co., Ltd.
    44,000       124,099  
Tokuyama Corp.
    130,000       430,476  
Tokyo Ohka Kogyo Co., Ltd.
    13,700       370,837  
Tokyo Rope Manufacturing Co., Ltd. *
    17,000       29,128  
Tokyo Steel Manufacturing Co., Ltd.
    27,500       157,771  
Topy Industries Ltd.
    83,000       160,591  
Toyo Ink SC Holdings Co., Ltd.
    50,000       234,394  
UACJ Corp.
    110,000       466,959  
Yodogawa Steel Works Ltd.
    40,000       172,498  
                 
              7,044,472  
                 
 
Media 0.1%
Avex Group Holdings, Inc.
    8,400       137,702  
Kadokawa Corp.
    9,900       257,399  
Next Co., Ltd. (c)
    6,400       48,793  
                 
              443,894  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
ASKA Pharmaceutical Co., Ltd.
    5,000       67,141  
JCR Pharmaceuticals Co., Ltd.
    3,400       82,378  
Nichi-iko Pharmaceutical Co., Ltd.
    14,500       225,976  
Nippon Shinyaku Co., Ltd.
    10,000       318,140  
Seikagaku Corp.
    16,800       306,616  
Torii Pharmaceutical Co., Ltd.
    1,900       61,727  
ZERIA Pharmaceutical Co., Ltd.
    4,600       112,648  
                 
              1,174,626  
                 
 
Real Estate 0.4%
Daibiru Corp.
    13,700       137,283  
Daikyo, Inc.
    85,000       162,824  
Goldcrest Co., Ltd.
    1,900       39,011  
Heiwa Real Estate Co., Ltd.
    13,700       208,892  
Jowa Holdings Co., Ltd.
    1,900       70,506  
Keihanshin Building Co., Ltd.
    39,000       206,854  
Kenedix, Inc. *
    62,000       276,922  
Leopalace21 Corp. *
    51,800       298,180  
Relo Holdings, Inc.
    1,200       81,667  
Takara Leben Co., Ltd.
    27,000       91,746  
TOC Co., Ltd.
    27,400       186,210  
                 
              1,760,095  
                 
 
Retailing 0.7%
AOKI Holdings, Inc.
    5,200       62,269  
Arcland Sakamoto Co., Ltd.
    13,700       317,559  
ASKUL Corp. (c)
    8,300       199,740  
Bic Camera, Inc.
    13,700       125,546  
DCM Holdings Co., Ltd.
    27,400       186,210  
EDION Corp.
    26,000       164,682  
Geo Holdings Corp.
    13,000       114,251  
Gulliver International Co., Ltd.
    20,900       188,711  
Jin Co., Ltd. (c)
    3,100       89,671  
Matsuya Co., Ltd.
    13,000       149,415  
Nishimatsuya Chain Co., Ltd.
    12,100       95,626  
The Daiei, Inc. *
    51,100       64,438  
Tsutsumi Jewelry Co., Ltd.
    4,000       97,377  
United Arrows Ltd.
    10,100       370,419  
Xebio Co., Ltd.
    13,700       224,718  
Yellow Hat Ltd.
    9,600       208,846  
                 
              2,659,478  
                 
 
Semiconductors & Semiconductor Equipment 0.2%
Sanken Electric Co., Ltd.
    22,000       183,183  
 
 
 
See financial notes 29

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Shindengen Electric Manufacturing Co., Ltd.
    9,000       59,258  
Tokyo Seimitsu Co., Ltd.
    13,700       230,125  
Ulvac, Inc. *
    13,000       175,319  
                 
              647,885  
                 
 
Software & Services 0.6%
Ateam, Inc.
    1,000       64,109  
Broadleaf Co., Ltd.
    5,200       87,947  
Dwango Co., Ltd.
    3,200       71,186  
Fuji Soft, Inc.
    13,000       312,220  
GMO internet, Inc.
    18,300       172,986  
GMO Payment Gateway, Inc.
    1,500       72,340  
Gurunavi, Inc.
    6,700       106,158  
Ines Corp.
    13,000       107,369  
Internet Initiative Japan, Inc.
    5,900       123,412  
IT Holdings Corp.
    13,000       240,015  
Marvelous, Inc.
    6,300       80,293  
NET One Systems Co., Ltd.
    26,000       162,179  
Nihon Unisys Ltd.
    21,700       200,530  
NSD Co., Ltd.
    13,000       203,600  
SMS Co., Ltd.
    3,500       90,697  
Transcosmos, Inc.
    13,000       264,167  
                 
              2,359,208  
                 
 
Technology Hardware & Equipment 1.1%
Ai Holdings Corp.
    13,000       264,042  
Amano Corp.
    14,100       152,422  
Canon Electronics, Inc.
    13,700       261,116  
Daiwabo Holdings Co., Ltd.
    137,000       275,622  
Eizo Corp.
    3,800       98,763  
Enplas Corp.
    2,500       141,262  
Hitachi Kokusai Electric, Inc.
    10,000       154,979  
Horiba Ltd.
    13,500       507,460  
Hosiden Corp.
    47,400       258,707  
Japan Aviation Electronics Industry Ltd.
    8,000       184,281  
Japan Cash Machine Co., Ltd. (c)
    2,500       50,633  
Mitsumi Electric Co., Ltd.
    24,200       198,473  
Nichicon Corp.
    26,900       196,536  
Nippon Chemi-Con Corp. *
    30,000       88,656  
Oki Electric Industry Co., Ltd.
    137,000       309,910  
Riso Kagaku Corp.
    2,600       84,343  
Ryosan Co., Ltd.
    14,500       319,074  
The Nippon Signal Co., Ltd.
    24,200       249,256  
Topcon Corp.
    18,100       423,207  
Wacom Co., Ltd.
    49,600       223,447  
                 
              4,442,189  
                 
 
Transportation 0.4%
Hamakyorex Co., Ltd.
    3,100       105,338  
Iino Kaiun Kaisha Ltd.
    39,900       252,339  
Maruzen Showa Unyu Co., Ltd.
    31,000       100,861  
Nankai Electric Railway Co., Ltd.
    130,000       639,457  
Nippon Konpo Unyu Soko Co., Ltd.
    13,700       242,785  
Nissin Corp.
    37,000       101,863  
Sankyu, Inc.
    35,000       175,531  
The Sumitomo Warehouse Co., Ltd.
    32,000       172,806  
                 
              1,790,980  
                 
 
Utilities 0.0%
Saibu Gas Co., Ltd.
    53,000       135,198  
                 
              60,832,479  
 
Netherlands 1.8%
                 
 
Capital Goods 0.4%
Aalberts Industries N.V.
    23,025       639,781  
Arcadis N.V.
    15,576       515,790  
Grontmij *
    10,932       54,416  
Koninklijke BAM Groep N.V.
    62,812       148,842  
Royal Imtech N.V. *(c)
    62,327       31,525  
TKH Group N.V.
    9,280       314,147  
                 
              1,704,501  
                 
 
Commercial & Professional Services 0.0%
USG People N.V.
    11,474       148,128  
                 
 
Consumer Durables & Apparel 0.0%
TomTom N.V. *
    16,927       130,166  
                 
 
Diversified Financials 0.1%
BinckBank N.V.
    24,331       266,870  
                 
 
Food, Beverage & Tobacco 0.2%
Corbion N.V.
    17,119       287,276  
Nutreco N.V.
    17,074       658,391  
                 
              945,667  
                 
 
Insurance 0.3%
Delta Lloyd N.V.
    39,822       961,736  
                 
 
Materials 0.2%
APERAM *
    11,160       360,369  
Koninklijke Ten Cate N.V.
    9,471       234,721  
                 
              595,090  
                 
 
Real Estate 0.4%
Eurocommercial Properties N.V.
    12,714       626,166  
Vastned Retail N.V.
    6,609       322,360  
Wereldhave N.V.
    5,391       497,427  
                 
              1,445,953  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
ASM International N.V.
    10,225       397,990  
                 
 
Transportation 0.1%
PostNL N.V. *
    109,289       548,615  
                 
              7,144,716  
 
New Zealand 0.6%
                 
 
Energy 0.1%
New Zealand Oil & Gas Ltd.
    150,337       97,532  
Z Energy Ltd.
    49,050       163,828  
                 
              261,360  
                 
 
Food, Beverage & Tobacco 0.0%
a2 Milk Co., Ltd. *
    87,200       46,717  
Synlait Milk Ltd. *
    21,800       62,046  
                 
              108,763  
                 
 
Health Care Equipment & Services 0.0%
Metlifecare Ltd.
    27,250       106,071  
                 
 
Insurance 0.0%
Tower Ltd.
    48,920       80,673  
                 
 
Materials 0.0%
Nuplex Industries Ltd.
    65,557       167,377  
                 
 
Real Estate 0.1%
Goodman Property Trust
    341,883       321,964  
 
 
 
30 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Precinct Properties New Zealand Ltd.
    141,310       133,669  
                 
              455,633  
                 
 
Retailing 0.1%
Kathmandu Holdings Ltd.
    51,309       141,308  
Trade Me Group Ltd.
    65,155       201,803  
                 
              343,111  
                 
 
Telecommunication Services 0.0%
Chorus Ltd.
    88,290       129,708  
                 
 
Transportation 0.1%
Freightways Ltd.
    42,392       183,110  
Mainfreight Ltd.
    14,124       178,885  
                 
              361,995  
                 
 
Utilities 0.2%
Infratil Ltd.
    155,206       313,764  
Mighty River Power Ltd.
    134,360       271,059  
                 
              584,823  
                 
              2,599,514  
 
Norway 1.9%
                 
 
Banks 0.2%
SpareBank 1 SR Bank A.S.A.
    24,200       238,976  
Sparebanken 1 SMN
    43,247       406,062  
                 
              645,038  
                 
 
Commercial & Professional Services 0.1%
Tomra Systems A.S.A.
    43,654       369,248  
                 
 
Diversified Financials 0.0%
Aker A.S.A., A Shares
    3,920       144,687  
                 
 
Energy 0.8%
Archer Ltd. *
    59,411       102,429  
BW LPG Ltd. (e)
    11,143       153,692  
BW Offshore Ltd.
    121,000       168,067  
Det Norske Oljeselskap A.S.A. *
    24,200       249,749  
DNO A.S.A. *
    253,136       765,489  
Fred. Olsen Energy A.S.A.
    7,518       176,838  
Kvaerner A.S.A.
    27,811       47,949  
Petroleum Geo-Services A.S.A.
    52,985       400,055  
Prosafe SE
    44,538       272,108  
TGS Nopec Geophysical Co. A.S.A.
    24,266       683,527  
                 
              3,019,903  
                 
 
Food, Beverage & Tobacco 0.3%
Austevoll Seafood A.S.A.
    21,196       135,194  
Cermaq A.S.A.
    16,055       211,825  
Marine Harvest A.S.A.
    63,593       863,218  
                 
              1,210,237  
                 
 
Insurance 0.1%
Storebrand A.S.A. *
    101,370       564,516  
                 
 
Real Estate 0.1%
Norwegian Property A.S.A. *
    166,803       267,330  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
Nordic Semiconductor A.S.A. *(c)
    45,660       277,189  
REC Silicon A.S.A. *
    465,536       251,563  
                 
              528,752  
                 
 
Software & Services 0.1%
Atea A.S.A.
    22,940       279,453  
Opera Software A.S.A.
    16,538       239,213  
                 
              518,666  
                 
 
Transportation 0.1%
Golden Ocean Group Ltd.
    67,242       111,032  
Norwegian Air Shuttle A.S. *
    1,914       63,674  
Stolt-Nielsen Ltd.
    3,270       71,465  
Wilh Wilhelmsen A.S.A.
    18,001       158,090  
                 
              404,261  
                 
              7,672,638  
 
Portugal 0.7%
                 
 
Banks 0.3%
Banco BPI S.A. - Reg’d *
    59,950       115,606  
Banco Comercial Portugues S.A. - Reg’d *
    8,029,047       1,094,602  
                 
              1,210,208  
                 
 
Capital Goods 0.0%
Mota-Engil, SGPS, S.A.
    18,815       116,282  
                 
 
Food & Staples Retailing 0.1%
Sonae, SGPS, S.A.
    266,475       406,459  
                 
 
Materials 0.1%
Altri, SGPS, S.A.
    37,940       113,143  
Portucel S.A.
    52,764       228,171  
Semapa-Sociedade de Investimento e Gestao
    9,680       131,521  
                 
              472,835  
                 
 
Media 0.1%
NOS, SGPS
    59,840       349,966  
                 
 
Transportation 0.1%
CTT-Correios de Portugal S.A.
    12,727       131,095  
                 
              2,686,845  
 
Republic of Korea 4.8%
                 
 
Automobiles & Components 0.2%
Hanil E-Hwa Co., Ltd. *
    3,908       90,189  
Kumho Tire Co., Inc. *
    34,200       349,100  
Nexen Tire Corp.
    9,130       129,213  
Seoyeon Co., Ltd.
    1,791       34,804  
Ssangyong Motor Co. *
    20,300       151,156  
Sungwoo Hitech Co., Ltd.
    6,000       100,893  
                 
              855,355  
                 
 
Banks 0.0%
JB Financial Group Co., Ltd.
    18,054       132,118  
                 
 
Capital Goods 0.4%
Doosan Engine Co., Ltd. *
    10,000       76,828  
Hanjin Heavy Industries & Construction Co., Ltd. *
    9,500       58,183  
iMarketKorea, Inc.
    6,000       193,796  
Korea Aerospace Industries Ltd.
    10,000       354,554  
Korea Electric Terminal Co., Ltd.
    2,000       92,214  
LG International Corp.
    9,293       255,708  
LS Industrial Systems Co., Ltd.
    3,426       211,517  
S&T Dynamics Co., Ltd.
    3,200       30,897  
Sung Kwang Bend Co., Ltd.
    3,300       57,118  
Taewoong Co., Ltd. *
    2,500       55,230  
 
 
 
See financial notes 31

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
TK Corp. *
    3,501       52,483  
                 
              1,438,528  
                 
 
Commercial & Professional Services 0.1%
KEPCO Plant Service & Engineer Co., Ltd.
    2,850       219,804  
                 
 
Consumer Durables & Apparel 0.4%
Fila Korea Ltd.
    1,500       149,416  
Handsome Co., Ltd.
    2,000       61,147  
Hansae Co., Ltd.
    5,900       180,093  
Hanssem Co., Ltd.
    5,000       584,348  
LF Corp.
    5,800       174,466  
Youngone Corp.
    6,060       338,277  
Youngone Holdings Co., Ltd.
    1,780       143,074  
                 
              1,630,821  
                 
 
Consumer Services 0.5%
Grand Korea Leisure Co., Ltd.
    4,500       200,601  
Hana Tour Service, Inc.
    2,970       208,262  
Hotel Shilla Co., Ltd.
    7,420       870,832  
MegaStudy Co., Ltd.
    1,800       116,278  
Paradise Co., Ltd.
    11,400       441,856  
                 
              1,837,829  
                 
 
Diversified Financials 0.1%
Hankook Tire Worldwide Co., Ltd.
    5,650       121,754  
KIWOOM Securities Co., Ltd.
    2,840       146,488  
Meritz Securities Co., Ltd.
    40,000       134,721  
                 
              402,963  
                 
 
Energy 0.1%
Hankook Shell Oil Co., Ltd.
    200       110,262  
SK Gas Ltd.
    1,463       163,044  
                 
              273,306  
                 
 
Food & Staples Retailing 0.1%
Dongsuh Co., Inc.
    12,099       240,441  
GS Retail Co., Ltd.
    4,520       107,433  
                 
              347,874  
                 
 
Food, Beverage & Tobacco 0.3%
Binggrae Co., Ltd.
    960       86,063  
Daesang Corp.
    7,130       388,864  
Lotte Food Co., Ltd.
    160       122,610  
Maeil Dairy Industry Co., Ltd.
    2,000       70,418  
Namyang Dairy Products Co., Ltd.
    80       65,329  
Ottogi Corp.
    763       465,799  
Samyang Holdings Corp.
    1,310       108,009  
                 
              1,307,092  
                 
 
Health Care Equipment & Services 0.0%
Chabiotech Co., Ltd. *
    4,647       58,663  
Medipost Co., Ltd. *
    1,901       106,492  
                 
              165,155  
                 
 
Household & Personal Products 0.0%
Cosmax, Inc. *
    1,496       156,394  
                 
 
Insurance 0.2%
Korean Reinsurance Co.
    24,174       281,329  
LIG Insurance Co., Ltd.
    10,300       307,288  
Meritz Fire & Marine Insurance Co., Ltd.
    17,092       230,939  
                 
              819,556  
                 
 
Materials 0.5%
Foosung Co., Ltd. *
    20,000       62,035  
Hanil Cement Co., Ltd.
    1,330       185,606  
Hansol Paper Co.
    7,690       88,356  
Huchems Fine Chemical Corp.
    4,000       92,904  
Kolon Industries, Inc.
    4,420       261,987  
OCI Materials Co., Ltd.
    2,000       89,551  
Poongsan Corp.
    5,250       163,100  
Seah Besteel Corp.
    5,000       176,537  
SK Chemicals Co., Ltd.
    5,070       338,517  
Soulbrain Co., Ltd.
    1,540       44,425  
Ssangyong Cement Industrial Co., Ltd. *
    7,030       72,799  
Taekwang Industrial Co., Ltd.
    240       308,181  
Young Poong Corp.
    186       255,533  
                 
              2,139,531  
                 
 
Media 0.3%
CJ CGV Co., Ltd.
    4,500       229,005  
CJ E&M Corp. *
    5,700       266,182  
CJ Hellovision Co., Ltd.
    7,500       107,254  
KT Skylife Co., Ltd.
    2,500       55,599  
SM Entertainment Co. *
    5,350       219,498  
YG Entertainment, Inc.
    3,256       156,386  
                 
              1,033,924  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.4%
Chong Kun Dang Pharmaceutical Corp.
    3,444       238,443  
Daewoong Pharmaceutical Co., Ltd.
    1,946       126,477  
Dong-A Socio Holdings Co., Ltd.
    1,113       132,820  
Dong-A ST Co., Ltd.
    1,254       124,293  
Green Cross Corp.
    1,070       125,578  
Hanmi Pharm Co., Ltd. *
    966       88,507  
Ilyang Pharmaceutical Co., Ltd.
    1,500       34,839  
LG Life Sciences Ltd. *
    3,920       130,480  
Medy-Tox, Inc.
    808       160,970  
Naturalendo Tech Co., Ltd. *
    2,953       139,794  
Seegene, Inc. *
    1,250       70,886  
ViroMed Co., Ltd. *
    3,507       208,563  
                 
              1,581,650  
                 
 
Retailing 0.3%
CJ O Shopping Co., Ltd.
    618       219,358  
GS Home Shopping, Inc.
    705       196,770  
Hyundai Greenfood Co. Ltd.
    13,170       259,127  
Hyundai Home Shopping Network Corp.
    1,540       247,566  
Interpark Corp.
    7,700       87,332  
Kolao Holdings
    6,780       127,382  
LOTTE Himart Co., Ltd.
    2,950       218,206  
                 
              1,355,741  
                 
 
Semiconductors & Semiconductor Equipment 0.3%
Duksan Hi-Metal Co., Ltd. *
    3,430       54,125  
Eo Technics Co., Ltd.
    4,000       322,304  
GemVax & Kael Co., Ltd. *
    4,302       103,949  
Hansol Technics Co., Ltd. *
    1,340       20,617  
Lumens Co., Ltd. *
    15,000       122,195  
Seoul Semiconductor Co., Ltd.
    9,780       281,647  
Wonik IPS Co., Ltd. *
    9,800       125,647  
                 
              1,030,484  
 
 
 
32 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Software & Services 0.2%
Ahnlab, Inc.
    1,335       49,505  
Com2uSCorp *
    1,691       209,634  
Daou Technology, Inc.
    4,100       50,141  
Gamevil, Inc. *
    1,891       234,056  
Hancom, Inc.
    5,000       124,020  
                 
              667,356  
                 
 
Technology Hardware & Equipment 0.2%
Daeduck Electronics Co.
    9,350       77,828  
Daeduck GDS Co., Ltd.
    3,200       42,290  
Humax Co., Ltd.
    9,800       106,317  
LG Innotek Co., Ltd. *
    3,550       470,906  
Partron Co., Ltd.
    11,480       107,333  
SFA Engineering Corp.
    3,081       133,699  
Sindoh Co., Ltd.
    750       50,298  
                 
              988,671  
                 
 
Telecommunication Services 0.0%
SK Broadband Co., Ltd. *
    46,851       167,729  
                 
 
Transportation 0.1%
Asiana Airlines, Inc. *
    23,700       112,779  
Hanjin Kal Corp. *
    3,188       81,747  
Hanjin Transportation Co., Ltd.
    3,950       146,477  
Pan Ocean Co., Ltd. *
    19,950       85,097  
                 
              426,100  
                 
 
Utilities 0.1%
E1 Corp.
    1,395       95,619  
Samchully Co., Ltd.
    1,305       211,719  
                 
              307,338  
                 
              19,285,319  
 
Singapore 2.1%
                 
 
Capital Goods 0.1%
Tat Hong Holdings Ltd. (c)
    137,000       91,666  
United Engineers Ltd.
    28,000       63,945  
Vard Holdings Ltd. *
    137,000       111,976  
                 
              267,587  
                 
 
Commercial & Professional Services 0.0%
United Envirotech Ltd.
    81,000       90,220  
                 
 
Consumer Services 0.1%
GuocoLeisure Ltd.
    260,000       214,592  
Raffles Education Corp., Ltd. *
    520,000       147,922  
                 
              362,514  
                 
 
Diversified Financials 0.0%
ARA Asset Management Ltd.
    100,000       142,634  
                 
 
Energy 0.2%
Ezion Holdings Ltd.
    205,400       362,098  
Ezra Holdings Ltd.
    257,000       230,650  
Swiber Holdings Ltd.
    260,000       102,088  
                 
              694,836  
                 
 
Food, Beverage & Tobacco 0.1%
First Resources Ltd.
    130,000       210,425  
GMG Global Ltd.
    2,666,000       170,904  
Super Group Ltd. (c)
    80,000       86,222  
                 
              467,551  
                 
 
Health Care Equipment & Services 0.2%
Biosensors International Group Ltd. *(c)
    274,000       161,377  
Raffles Medical Group Ltd.
    131,000       417,789  
Religare Health Trust
    137,000       100,449  
                 
              679,615  
                 
 
Materials 0.0%
Midas Holdings Ltd.
    274,000       85,628  
                 
 
Media 0.0%
Asian Pay Television Trust
    242,000       173,557  
                 
 
Real Estate 1.2%
AIMS AMP Capital Industrial REIT
    130,000       152,610  
Ascendas India Trust
    137,000       88,373  
Ascott Residence Trust
    137,000       135,578  
Cache Logistics Trust
    130,000       121,880  
Cambridge Industrial Trust
    130,000       73,441  
CDL Hospitality Trusts
    260,000       343,764  
Far East Hospitality Trust
    130,000       88,545  
Frasers Centrepoint Trust
    137,000       219,560  
Frasers Commercial Trust
    260,000       291,678  
Ho Bee Land Ltd.
    130,000       228,134  
Keppel REIT Management Ltd.
    390,000       390,641  
Lippo Malls Indonesia Retail Trust
    411,000       133,383  
Mapletree Commercial Trust
    390,000       454,706  
Mapletree Greater China Commercial Trust
    390,000       295,324  
Mapletree Industrial Trust
    390,000       450,018  
Mapletree Logistics Trust
    544,000       512,200  
Parkway Life Real Estate Investment Trust
    137,000       257,983  
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (c)
    137,000       110,329  
Starhill Global REIT
    411,000       268,412  
Ying Li International Real Estate Ltd. *
    260,000       53,127  
Yoma Strategic Holdings Ltd. *(c)
    216,813       123,352  
                 
              4,793,038  
                 
 
Software & Services 0.0%
CSE Global Ltd.
    137,000       75,199  
                 
 
Transportation 0.1%
SATS Ltd.
    157,000       381,193  
                 
 
Utilities 0.1%
CitySpring Infrastructure Trust
    390,000       156,256  
HanKore Environment Tech Group Ltd. *
    64,000       45,130  
Hyflux Ltd. (c)
    130,000       119,276  
                 
              320,662  
                 
              8,534,234  
 
Spain 1.8%
                 
 
Automobiles & Components 0.0%
Cie Automotive S.A.
    6,050       85,070  
                 
 
Banks 0.0%
Liberbank S.A. *
    121,000       112,523  
                 
 
Capital Goods 0.6%
Abengoa S.A. B Shares
    149,037       857,882  
Construcciones y Auxiliar de Ferrocarriles S.A.
    848       336,045  
 
 
 
See financial notes 33

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Fomento de Construcciones y Contratas S.A. *
    5,528       103,616  
Gamesa Corp. Tecnologica S.A. *
    43,384       547,110  
Obrascon Huarte Lain S.A.
    10,095       370,392  
Sacyr S.A. *
    40,989       230,216  
                 
              2,445,261  
                 
 
Commercial & Professional Services 0.1%
Prosegur Cia de Seguridad S.A.
    48,000       326,244  
                 
 
Consumer Services 0.1%
Melia Hotels International S.A.
    14,686       163,654  
NH Hotel Group S.A. *
    32,645       175,655  
                 
              339,309  
                 
 
Diversified Financials 0.2%
Bolsas y Mercados Espanoles S.A.
    14,124       585,751  
                 
 
Energy 0.1%
Tecnicas Reunidas S.A.
    6,237       341,883  
                 
 
Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.
    23,623       479,190  
Viscofan S.A.
    8,266       461,977  
                 
              941,167  
                 
 
Insurance 0.1%
Grupo Catalana Occidente S.A.
    15,528       527,086  
                 
 
Materials 0.0%
Ence Energia y Celulosa S.A.
    74,751       169,847  
                 
 
Media 0.1%
Atresmedia Corp de Medios de Comunicaion S.A.
    21,054       308,106  
Promotora de Informaciones S.A., Class A *
    106,999       42,987  
                 
              351,093  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Almirall S.A. *
    16,790       263,841  
Faes Farma S.A.
    56,526       151,146  
Zeltia S.A. *
    56,370       207,530  
                 
              622,517  
                 
 
Software & Services 0.1%
Indra Sistemas S.A.
    24,200       364,664  
                 
 
Telecommunication Services 0.0%
Let’s GOWEX S.A. *(a)(b)(c)
    5,361       27,964  
                 
              7,240,379  
 
Sweden 3.4%
                 
 
Capital Goods 0.8%
Concentric AB
    4,245       54,652  
Haldex AB
    7,124       91,972  
Indutrade AB
    2,420       104,489  
Lindab International AB *
    16,646       159,983  
NCC AB, B Shares
    22,042       704,459  
Nibe Industrier AB, B Shares
    8,349       231,143  
Peab AB
    59,670       427,972  
Saab AB, Class B
    5,230       141,417  
Trelleborg AB, B Shares
    63,479       1,218,360  
                 
              3,134,447  
                 
 
Commercial & Professional Services 0.2%
AF AB, B Shares
    6,050       99,369  
Intrum Justitia AB
    7,062       219,521  
Loomis AB, B Shares
    18,247       541,815  
                 
              860,705  
                 
 
Consumer Durables & Apparel 0.1%
JM AB
    14,124       460,923  
Nobia AB
    8,578       64,600  
                 
              525,523  
                 
 
Consumer Services 0.2%
Betsson AB *
    10,018       346,328  
Rezidor Hotel Group AB *
    44,019       246,260  
                 
              592,588  
                 
 
Diversified Financials 0.2%
Avanza Bank Holding AB
    10,635       394,355  
Investment AB Oresund *
    9,865       220,755  
Lundbergforetagen AB, B Shares
    7,797       339,226  
                 
              954,336  
                 
 
Food & Staples Retailing 0.2%
Axfood AB
    7,213       359,757  
ICA Gruppen AB
    15,072       506,346  
                 
              866,103  
                 
 
Food, Beverage & Tobacco 0.1%
AAK AB
    8,021       471,509  
                 
 
Materials 0.4%
BillerudKorsnas AB
    33,921       491,937  
Hexpol AB
    4,649       393,794  
SSAB AB, A Shares *
    42,350       392,745  
SSAB AB, B Shares *
    30,250       252,110  
                 
              1,530,586  
                 
 
Media 0.0%
Eniro AB *
    21,104       59,123  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Meda AB, A Shares
    50,582       682,408  
Swedish Orphan Biovitrum AB *
    30,649       384,692  
                 
              1,067,100  
                 
 
Real Estate 0.7%
Castellum AB
    48,250       789,026  
Fabege AB
    43,361       571,616  
Fastighets AB Balder, B Shares *
    11,110       154,189  
Hufvudstaden AB, A Shares
    31,129       414,607  
Kungsleden AB
    34,790       236,550  
Wallenstam AB, B Shares
    28,258       465,748  
Wihlborgs Fastigheter AB
    17,558       324,903  
                 
              2,956,639  
                 
 
Retailing 0.1%
CDON Group AB *(c)
    16,413       56,270  
KappAhl AB *
    8,036       44,150  
Mekonomen AB
    5,913       137,408  
                 
              237,828  
                 
 
Technology Hardware & Equipment 0.1%
Axis Communications AB (c)
    9,861       292,241  
                 
 
Transportation 0.0%
SAS AB *
    29,753       48,228  
                 
              13,596,956  
 
 
 
34 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
Switzerland 3.4%
                 
 
Automobiles & Components 0.0%
Autoneum Holding AG *
    1,056       182,178  
                 
 
Banks 0.2%
Basler Kantonalbank
    1,463       105,190  
Liechtensteinische Landesbank AG
    2,420       103,184  
St. Galler Kantonalbank AG - Reg’d
    453       175,096  
Valiant Holding AG - Reg’d
    4,502       422,009  
                 
              805,479  
                 
 
Capital Goods 0.9%
AFG Arbonia-Forster Holding AG - Reg’d *
    2,610       68,111  
Belimo Holding AG - Reg’d
    106       277,659  
Bucher Industries AG - Reg’d
    1,523       453,982  
Burckhardt Compression Holding AG
    466       243,596  
Georg Fischer AG - Reg’d *
    1,217       806,594  
Huber & Suhner AG - Reg’d
    5,790       313,571  
Implenia AG - Reg’d *
    1,720       108,738  
Meyer Burger Technology AG *
    17,963       195,743  
OC Oerlikon Corp. AG - Reg’d *
    43,064       611,270  
Rieter Holding AG - Reg’d *
    1,604       359,733  
Schweiter Technologies AG
    298       219,469  
                 
              3,658,466  
                 
 
Commercial & Professional Services 0.1%
Gategroup Holding AG *
    3,531       88,868  
Kaba Holding AG, B Shares - Reg’d *
    820       404,023  
                 
              492,891  
                 
 
Consumer Durables & Apparel 0.1%
China Hongxing Sports Ltd. *(a)(b)
    884,000       —  
Forbo Holding AG - Reg’d *
    435       449,083  
                 
              449,083  
                 
 
Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *
    856       252,823  
                 
 
Diversified Financials 0.1%
Cembra Money Bank AG
    1,794       105,875  
Vontobel Holding AG - Reg’d
    10,916       405,246  
                 
              511,121  
                 
 
Food, Beverage & Tobacco 0.0%
Emmi AG - Reg’d *
    548       198,952  
                 
 
Health Care Equipment & Services 0.2%
Nobel Biocare Holding AG - Reg’d *
    22,536       410,931  
Straumann Holding AG - Reg’d
    1,210       296,869  
                 
              707,800  
                 
 
Insurance 0.2%
Helvetia Holding AG - Reg’d
    1,475       735,205  
                 
 
Materials 0.1%
Schmolz + Bickenbach AG - Reg’d *
    246,947       355,921  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Basilea Pharmaceutica - Reg’d *
    525       59,044  
Tecan Group AG - Reg’d
    2,885       324,458  
                 
              383,502  
                 
 
Real Estate 0.2%
Allreal Holding AG - Reg’d *
    2,704       371,713  
Mobimo Holding AG - Reg’d *
    1,968       407,202  
                 
              778,915  
                 
 
Retailing 0.4%
Dufry AG - Reg’d *
    7,260       1,240,585  
Valora Holding AG - Reg’d *
    856       198,146  
                 
              1,438,731  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
ams AG
    12,705       453,626  
                 
 
Software & Services 0.1%
Temenos Group AG - Reg’d *
    10,553       409,053  
                 
 
Technology Hardware & Equipment 0.1%
Kudelski S.A.
    6,025       90,127  
Logitech International S.A. - Reg’d
    28,355       390,100  
                 
              480,227  
                 
 
Transportation 0.3%
Flughafen Zuerich AG - Reg’d
    789       516,897  
Panalpina Welttransport Holding AG - Reg’d
    4,407       626,993  
                 
              1,143,890  
                 
 
Utilities 0.1%
Alpiq Holding AG - Reg’d *
    525       57,267  
BKW AG
    4,492       162,837  
                 
              220,104  
                 
              13,657,967  
 
United Kingdom 19.8%
                 
 
Banks 0.2%
Bank of Georgia Holdings plc
    3,107       127,915  
The Paragon Group of Cos. plc
    81,986       469,610  
                 
              597,525  
                 
 
Capital Goods 2.7%
Balfour Beatty plc
    154,793       624,686  
Bodycote plc
    49,690       573,532  
Carillion plc
    110,807       619,420  
Chemring Group plc
    35,962       136,917  
DCC plc
    19,676       1,168,526  
Diploma plc
    18,150       207,080  
Fenner plc
    48,863       295,221  
Galliford Try plc
    19,620       421,961  
Grafton Group plc
    56,713       607,500  
Interserve plc
    38,499       423,264  
Keller Group plc
    14,124       215,682  
Kier Group plc
    9,865       279,335  
Morgan Advanced Materials plc
    69,237       365,768  
Morgan Sindall Group plc
    13,080       182,470  
QinetiQ Group plc
    174,170       626,521  
Rotork plc
    19,079       873,250  
Senior plc
    120,315       571,265  
SIG plc
    149,544       463,679  
Speedy Hire plc
    64,439       68,223  
Spirax-Sarco Engineering plc
    18,626       915,620  
Ultra Electronics Holdings plc
    17,807       527,877  
Vesuvius plc
    69,358       535,616  
                 
              10,703,413  
                 
 
Commercial & Professional Services 1.2%
Berendsen plc
    41,479       735,016  
Cape plc
    20,293       104,812  
De La Rue plc
    30,137       355,855  
Hays plc
    242,000       536,538  
 
 
 
See financial notes 35

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
HomeServe plc
    74,343       398,422  
Michael Page International plc
    70,407       532,842  
Mitie Group plc
    93,945       492,708  
Regus plc
    171,864       493,211  
RPS Group plc
    57,851       267,187  
Shanks Group plc
    98,918       173,724  
WS Atkins plc
    30,543       706,589  
                 
              4,796,904  
                 
 
Consumer Durables & Apparel 0.4%
Bellway plc
    29,912       792,834  
Bovis Homes Group plc
    34,885       488,973  
Crest Nicholson Holdings plc
    13,080       77,941  
Redrow plc
    64,411       293,206  
Ted Baker plc
    2,454       78,861  
                 
              1,731,815  
                 
 
Consumer Services 1.4%
888 Holdings plc
    134       283  
Betfair Group plc
    14,124       256,144  
Bwin.Party Digital Entertainment plc
    197,846       296,701  
Dignity plc
    17,546       417,278  
Domino’s Pizza Group plc
    40,753       400,669  
Enterprise Inns plc *
    106,796       221,702  
Greene King plc
    52,014       712,221  
J.D. Wetherspoon plc
    27,037       334,293  
Ladbrokes plc
    171,470       379,027  
Marston’s plc
    119,218       293,423  
Millennium & Copthorne Hotels plc
    33,377       327,042  
Mitchells & Butlers plc *
    71,718       488,571  
Spirit Pub Co. plc
    83,192       103,966  
The Restaurant Group plc
    57,811       618,301  
Thomas Cook Group plc *
    323,233       669,937  
                 
              5,519,558  
                 
 
Diversified Financials 1.7%
Brewin Dolphin Holdings plc
    18,496       90,616  
Close Brothers Group plc
    36,912       829,410  
Henderson Group plc
    194,107       748,204  
IG Group Holdings plc
    86,073       867,680  
Intermediate Capital Group plc
    105,647       715,849  
International Personal Finance plc
    62,560       536,625  
Jupiter Fund Management plc
    70,650       440,581  
Man Group plc
    330,761       650,934  
Provident Financial plc
    32,597       1,157,957  
Rathbone Brothers plc
    11,518       387,926  
SVG Capital plc *
    45,072       314,758  
Tullett Prebon plc
    62,563       281,053  
                 
              7,021,593  
                 
 
Energy 1.0%
Afren plc *
    262,583       425,182  
Asia Resource Minerals plc *
    16,037       18,377  
Cairn Energy plc *
    99,545       296,913  
EnQuest plc *
    179,033       358,281  
Genel Energy plc *
    30,250       436,816  
Hunting plc
    38,518       568,682  
Lamprell plc *
    40,353       106,556  
Ophir Energy plc *
    101,250       394,482  
Premier Oil plc
    123,006       710,902  
Salamander Energy plc *
    70,324       123,214  
Soco International plc *
    53,046       372,647  
                 
              3,812,052  
                 
 
Food & Staples Retailing 0.2%
Booker Group plc
    301,796       671,116  
Greggs plc
    29,809       270,794  
                 
              941,910  
                 
 
Food, Beverage & Tobacco 0.5%
Britvic plc
    63,293       721,081  
Cranswick plc
    17,001       374,670  
Dairy Crest Group plc
    44,203       303,257  
Devro plc
    46,785       189,584  
Greencore Group plc
    85,174       376,688  
Premier Foods plc *
    106,658       76,167  
                 
              2,041,447  
                 
 
Health Care Equipment & Services 0.2%
Al Noor Hospitals Group plc
    4,168       78,772  
NMC Health plc
    8,017       66,451  
Synergy Health plc
    12,100       301,426  
UDG Healthcare plc
    57,783       326,275  
                 
              772,924  
                 
 
Insurance 1.2%
Amlin plc
    116,478       870,290  
Beazley plc
    144,964       606,687  
Catlin Group Ltd.
    78,255       668,004  
esure Group plc
    52,320       230,259  
Hiscox Ltd.
    80,954       872,543  
Jardine Lloyd Thompson Group plc
    24,632       424,621  
Lancashire Holdings Ltd.
    45,606       474,512  
Partnership Assurance Group plc
    12,974       25,371  
Phoenix Group Holdings
    42,350       521,165  
                 
              4,693,452  
                 
 
Materials 1.3%
African Barrick Gold plc
    23,764       92,192  
Alent plc
    68,947       401,908  
Aquarius Platinum Ltd. *
    188,266       75,039  
Centamin plc *
    289,299       307,490  
DS Smith plc
    240,203       1,132,924  
Elementis plc
    110,206       513,567  
Essentra plc
    58,138       827,456  
Evraz plc
    96,177       180,171  
Hochschild Mining plc *
    30,189       80,920  
Kazakhmys plc *
    56,758       279,860  
Petra Diamonds Ltd. *
    75,020       222,516  
RPC Group plc
    35,320       332,589  
Synthomer plc
    54,450       212,053  
Victrex plc
    20,407       589,024  
                 
              5,247,709  
                 
 
Media 0.5%
Cineworld Group plc
    42,350       227,808  
Entertainment One Ltd.
    14,134       83,212  
ITE Group plc
    62,174       209,092  
Rightmove plc
    22,576       944,825  
UBM plc
    49,454       519,887  
                 
              1,984,824  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.6%
BTG plc *
    92,378       982,634  
Dechra Pharmaceuticals plc
    21,196       255,209  
Genus plc
    16,420       306,509  
Hikma Pharmaceuticals plc
    34,688       994,891  
                 
              2,539,243  
 
 
 
36 See financial notes

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Real Estate 1.6%
Big Yellow Group plc
    51,026       446,587  
Capital & Counties Properties plc
    165,242       917,679  
Countrywide plc
    18,517       158,373  
Derwent London plc
    22,784       1,056,073  
Development Securities plc
    22,369       76,156  
Foxtons Group plc
    28,340       119,688  
Grainger plc
    108,236       373,167  
Great Portland Estates plc
    83,579       911,246  
Hansteen Holdings plc
    130,810       223,325  
Helical Bar plc
    43,460       243,053  
Londonmetric Property plc
    154,526       360,564  
Redefine International plc
    54,028       46,479  
Savills plc
    44,592       476,551  
Shaftesbury plc
    56,216       639,520  
ST Modwen Properties plc
    9,298       57,366  
The Unite Group plc
    58,123       422,791  
Workspace Group plc
    4,651       47,967  
                 
              6,576,585  
                 
 
Retailing 1.7%
Darty plc
    136,432       188,627  
Debenhams plc
    286,715       316,409  
Dixons Carphone plc
    193,716       1,108,625  
Dunelm Group plc
    21,196       309,771  
Halfords Group plc
    55,563       440,157  
Home Retail Group plc
    205,925       626,525  
Howden Joinery Group plc
    152,344       894,120  
Inchcape plc
    108,793       1,219,576  
Mothercare plc *
    19,794       82,511  
N Brown Group plc
    58,106       427,493  
Ocado Group plc *
    103,558       564,623  
SuperGroup plc *
    8,071       146,237  
WH Smith plc
    33,907       650,392  
                 
              6,975,066  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
CSR plc
    32,407       423,025  
Imagination Technologies Group plc *
    32,831       119,571  
                 
              542,596  
                 
 
Software & Services 0.7%
AVEVA Group plc
    14,972       523,651  
Computacenter plc
    25,424       262,626  
Fidessa Group plc
    10,729       407,680  
Micro Focus International plc
    37,106       537,051  
Moneysupermarket.com Group plc
    65,400       212,338  
Playtech plc
    26,160       312,806  
SDL plc *
    14,124       77,465  
Telecity Group plc
    39,546       486,659  
Xchanging plc
    31,552       96,547  
                 
              2,916,823  
                 
 
Technology Hardware & Equipment 1.0%
Domino Printing Sciences plc
    24,092       231,862  
Electrocomponents plc
    112,125       454,915  
Halma plc
    77,722       797,694  
Laird plc
    79,225       383,403  
Oxford Instruments plc
    14,100       276,081  
Pace plc
    72,018       395,889  
Premier Farnell plc
    100,313       325,026  
Renishaw plc
    7,062       194,806  
Spectris plc
    22,900       740,466  
Spirent Communications plc
    138,033       236,345  
Xaar plc
    13,009       90,740  
                 
              4,127,227  
                 
 
Telecommunication Services 0.4%
Cable & Wireless Communications plc
    337,917       278,016  
Colt Group S.A. *
    105,669       257,443  
Kcom Group plc
    127,186       209,640  
TalkTalk Telecom Group plc
    141,310       709,439  
                 
              1,454,538  
                 
 
Transportation 0.9%
BBA Aviation plc
    120,114       644,717  
Firstgroup plc *
    316,966       669,055  
Go-Ahead Group plc
    12,765       467,024  
National Express Group plc
    126,049       536,737  
Northgate plc
    21,780       184,111  
Stagecoach Group plc
    110,654       672,593  
Stobart Group Ltd. (c)
    116,359       242,520  
                 
              3,416,757  
                 
 
Utilities 0.3%
APR Energy plc (c)
    17,810       151,883  
Pennon Group plc
    77,717       1,049,972  
Telecom Plus plc
    6,277       151,885  
                 
              1,353,740  
                 
              79,767,701  
                 
Total Common Stock
(Cost $339,185,692)     399,996,838  
         
                 
                 
 
 Other Investment Companies 1.0% of net assets
 
Australia 0.0%
                 
 
Diversified Financials 0.0%
Platinum Capital Ltd.
    52,941       88,881  
 
Switzerland 0.1%
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
BB Biotech AG - Reg’d *
    3,577       670,993  
 
United Kingdom 0.1%
                 
 
Real Estate 0.1%
F&C Commercial Property Trust Ltd.
    150,115       316,116  
 
United States 0.8%
                 
 
Equity Fund 0.1%
iShares MSCI EAFE Small - Cap ETF
    5,000       256,350  
                 
 
Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    49,859       49,859  
 
 
 
See financial notes 37

Table of Contents

 
 Schwab International Small-Cap Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Securities Lending Collateral 0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    2,914,957       2,914,957  
                 
              3,221,166  
                 
Total Other Investment Companies
(Cost $3,927,865)     4,297,156  
         
                 
                 
 
 Preferred Stock 0.3% of net assets
 
Germany 0.2%
                 
 
Capital Goods 0.1%
Jungheinrich AG
    4,001       244,718  
                 
 
Health Care Equipment & Services 0.1%
Draegerwerk AG & Co. KGaA
    1,452       137,820  
Sartorius AG
    1,694       201,802  
                 
              339,622  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Biotest AG
    1,380       155,817  
                 
              740,157  
 
Italy 0.1%
                 
 
Insurance 0.1%
Unipol Gruppo Finanziario S.p.A.
    78,480       394,061  
                 
Total Preferred Stock
(Cost $967,782)     1,134,218  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $350,858,079 and the unrealized appreciation and depreciation were $72,065,938 and ($17,495,805), respectively, with a net unrealized appreciation of $54,570,133.
 
* Non-income producing security.
(a) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(b) Illiquid security. At the period end, the value of these amounted to $27,964 or 0.0% of net assets.
(c) All or a portion of this security is on loan. Securities on loan were valued at $2,703,109.
(d) The rate shown is the 7-day yield.
(e) 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 $153,692 or 0.0% of net assets.
 
     
ETF —
  Exchange Traded Fund
Reg’d —
  Registered
REIT —
  Real Estate Investment Trust
RSP —
  Risparmio (Convertible Savings Shares)
 
 
 
38 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
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   ($)   ($)
 
  95 .4%   Common Stock     1,097,678,142       1,215,693,628  
  1 .1%   Other Investment Companies     13,893,281       13,965,671  
  4 .2%   Preferred Stock     45,754,735       53,222,010  
  0 .0%   Warrants     —       —  
  0 .0%   Short-Term Investments     57,999       57,999  
 
 
  100 .7%   Total Investments     1,157,384,157       1,282,939,308  
  (0 .7)%   Other Assets and
Liabilities, Net 		            (9,099,606 )
 
 
  100 .0%   Net Assets             1,273,839,702  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 95.4% of net assets
 
Brazil 10.2%
                 
 
Banks 2.2%
Banco Bradesco S.A.
    174,930       3,128,734  
Banco do Brasil S.A.
    308,445       4,823,352  
Banco Santander Brasil S.A.
    318,138       2,198,124  
Itau Unibanco Holding S.A.
    96,349       1,601,834  
Itau Unibanco Holding S.A. ADR
    949,708       17,094,744  
                 
              28,846,788  
                 
 
Capital Goods 0.3%
Embraer S.A.
    250,300       2,439,741  
WEG S.A.
    104,653       1,309,127  
                 
              3,748,868  
                 
 
Consumer Durables & Apparel 0.1%
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes
    139,800       886,578  
MRV Engenharia e Participacoes S.A.
    111,840       455,847  
                 
              1,342,425  
                 
 
Consumer Services 0.3%
Kroton Educacional S.A.
    139,799       4,189,190  
                 
 
Diversified Financials 0.5%
BM&FBovespa S.A.
    667,168       4,025,281  
CETIP S.A. - Mercados Organizados
    48,943       714,169  
Grupo BTG Pactual
    93,262       1,567,184  
                 
              6,306,634  
                 
 
Energy 1.3%
Cosan S.A. Industria e Comercio
    46,600       968,425  
Petroleo Brasileiro S.A.
    1,258,200       12,449,576  
Ultrapar Participacoes S.A. ADR
    139,800       3,580,278  
                 
              16,998,279  
                 
 
Food & Staples Retailing 0.1%
Raia Drogasil S.A.
    93,200       908,029  
                 
 
Food, Beverage & Tobacco 1.8%
AMBEV S.A. ADR
    1,592,270       11,607,648  
BRF S.A. ADR
    299,638       7,988,349  
JBS S.A.
    195,720       885,203  
M Dias Branco S.A.
    15,923       718,743  
Souza Cruz S.A.
    139,800       1,309,561  
                 
              22,509,504  
                 
 
Household & Personal Products 0.2%
Hypermarcas S.A. *
    93,050       809,257  
Natura Cosmeticos S.A.
    71,344       1,307,599  
                 
              2,116,856  
                 
 
Insurance 0.3%
BB Seguridade Participacoes S.A.
    194,542       3,107,386  
Porto Seguro S.A.
    37,280       552,815  
Sul America S.A.
    93,200       644,367  
                 
              4,304,568  
                 
 
Materials 1.3%
Companhia Siderurgica Nacional S.A.
    233,089       1,022,964  
Duratex S.A.
    134,351       604,641  
Fibria Celulose S.A. ADR *(a)
    46,600       482,776  
Vale S.A.
    457,249       5,950,746  
Vale S.A. ADR
    693,874       8,083,632  
                 
              16,144,759  
                 
 
Real Estate 0.2%
BR Malls Participacoes S.A.
    145,472       1,512,875  
BR Properties S.A.
    93,200       620,625  
Multiplan Empreendimentos Imobiliarios S.A.
    23,300       600,944  
                 
              2,734,444  
                 
 
Retailing 0.2%
Cia Hering
    46,600       582,929  
Lojas Americanas S.A.
    51,965       301,913  
Lojas Renner S.A.
    46,600       1,595,715  
                 
              2,480,557  
                 
 
Software & Services 0.4%
Cielo S.A.
    261,629       4,906,238  
Totvs S.A.
    46,600       850,965  
                 
              5,757,203  
                 
 
Telecommunication Services 0.2%
Oi S.A.
    319,894       213,020  
Tim Participacoes S.A.
    372,878       2,091,403  
                 
              2,304,423  
                 
 
Transportation 0.4%
All America Latina Logistica S.A.
    227,600       839,177  
CCR S.A.
    355,298       3,217,062  
Localiza Rent a Car S.A.
    37,570       669,109  
                 
              4,725,348  
 
 
 
See financial notes 39

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Utilities 0.4%
Companhia de Saneamento Basico do Estado de Sao Paulo
    111,840       1,069,141  
CPFL Energia S.A. ADR
    46,134       929,139  
EDP - Energias do Brasil S.A.
    139,800       706,013  
Tractebel Energia S.A.
    93,200       1,562,393  
Transmissora Alianca de Energia Eletrica S.A.
    46,600       486,087  
                 
              4,752,773  
                 
              130,170,648  
 
Chile 1.5%
                 
 
Banks 0.4%
Banco de Chile ADR
    13,332       982,702  
Banco de Credito e Inversiones
    9,469       516,072  
Banco Santander Chile ADR
    62,926       1,501,414  
Corpbanca S.A.
    68,884,685       846,441  
Sociedad Matriz Banco de Chile S.A., B Shares
    1,806,368       552,814  
                 
              4,399,443  
                 
 
Energy 0.2%
Empresas COPEC S.A.
    161,702       2,032,540  
                 
 
Food & Staples Retailing 0.1%
Cencosud S.A.
    357,492       1,072,657  
                 
 
Food, Beverage & Tobacco 0.0%
Cia Cervecerias Unidas S.A.
    34,950       375,391  
                 
 
Materials 0.2%
CAP S.A.
    31,688       376,473  
Empresas CMPC S.A.
    383,634       954,933  
Sociedad Quimica y Minera de Chile S.A. ADR
    32,620       893,136  
                 
              2,224,542  
                 
 
Retailing 0.1%
S.A.C.I. Falabella
    171,954       1,294,947  
                 
 
Telecommunication Services 0.0%
ENTEL Chile S.A.
    31,222       358,166  
                 
 
Transportation 0.1%
Latam Airlines Group S.A. ADR *
    131,878       1,635,287  
                 
 
Utilities 0.4%
Colbun S.A.
    4,269,958       1,117,525  
Empresa Nacional de Electricidad S.A. ADR
    47,998       2,205,508  
Enersis S.A. ADR
    135,660       2,294,010  
                 
              5,617,043  
                 
              19,010,016  
 
China 21.0%
                 
 
Automobiles & Components 0.7%
Brilliance China Automotive Holdings Ltd.
    1,088,000       2,015,920  
Byd Co., Ltd., H Shares
    188,000       1,335,381  
Chongqing Changan Automobile Co., Ltd., B Shares
    326,200       673,432  
Dongfeng Motor Group Co., Ltd., H Shares
    1,002,000       1,856,573  
Geely Automobile Holdings Ltd.
    1,005,000       385,134  
Great Wall Motor Co., Ltd., H Shares
    389,500       1,653,458  
Guangzhou Automobile Group Co., Ltd., H Shares
    933,662       970,990  
                 
              8,890,888  
                 
 
Banks 4.7%
Agricultural Bank of China Ltd., H Shares
    7,456,000       3,444,124  
Bank of China Ltd., H Shares
    25,164,000       11,688,858  
Bank of Communications Co., Ltd., H Shares
    3,874,200       2,829,361  
China CITIC Bank Corp., Ltd., H Shares
    3,790,800       2,391,826  
China Construction Bank Corp., H Shares
    23,951,000       17,800,657  
China Merchants Bank Co., Ltd., H Shares
    1,511,359       2,890,052  
China Minsheng Banking Corp., Ltd., H Shares
    2,373,720       2,229,722  
Chongqing Rural Commercial Bank, H Shares
    1,102,000       547,434  
Huishang Bank Corp., Ltd., H Shares
    693,000       302,232  
Industrial & Commercial Bank of China Ltd., H Shares
    24,209,336       16,055,946  
                 
              60,180,212  
                 
 
Capital Goods 1.0%
AviChina Industry & Technology Co., Ltd., H Shares
    982,000       585,388  
Beijing Enterprises Holdings Ltd.
    233,000       2,008,271  
China Communications Construction Co., Ltd., H Shares
    1,864,000       1,358,890  
China International Marine Containers Group Co., Ltd., H Shares
    326,200       702,053  
China Railway Construction Corp., Ltd., H Shares
    699,000       669,223  
China Railway Group Ltd., H Shares
    1,283,000       663,836  
CITIC Pacific Ltd. (a)
    591,000       1,149,949  
CSR Corp., Ltd., H Shares
    960,000       865,841  
Haitian International Holdings Ltd.
    180,000       469,152  
Shanghai Electric Group Co., Ltd., H Shares
    932,000       408,870  
Shanghai Industrial Holdings Ltd.
    315,000       1,050,657  
Sinopec Engineering Group Co., Ltd., H shares
    466,000       531,530  
Weichai Power Co., Ltd., H Shares
    197,000       798,152  
Zhuzhou CSR Times Electric Co., Ltd., H Shares
    233,000       807,217  
Zoomlion Heavy Industry Science & Technology Co., Ltd., H Shares (a)
    781,100       486,792  
                 
              12,555,821  
 
 
 
40 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Commercial & Professional Services 0.1%
China Everbright International Ltd.
    1,082,000       1,482,660  
                 
 
Consumer Durables & Apparel 0.2%
ANTA Sports Products Ltd.
    466,000       894,703  
Haier Electronics Group Co., Ltd.
    329,000       950,898  
Li Ning Co., Ltd. *(a)
    466,000       259,752  
Shenzhou International Group Holdings Ltd.
    126,000       392,625  
                 
              2,497,978  
                 
 
Diversified Financials 0.3%
China Cinda Asset Management Co., Ltd., H Shares *(a)
    1,283,000       657,214  
CITIC Securities Co., Ltd., H Shares
    383,000       909,299  
Far East Horizon Ltd.
    744,000       599,988  
Haitong Securities Co., Ltd., H Shares
    682,400       1,090,058  
                 
              3,256,559  
                 
 
Energy 3.1%
China Coal Energy Co., Ltd., H Shares (a)
    1,570,000       956,162  
China Oilfield Services Ltd., H Shares
    652,000       1,930,724  
China Petroleum & Chemical Corp., H Shares
    8,456,000       8,575,855  
China Shenhua Energy Co., Ltd., H Shares
    1,122,000       3,235,640  
CNOOC Ltd.
    5,592,000       11,241,506  
Inner Mongolia Yitai Coal Co., Ltd., B Shares
    652,400       1,101,904  
Kunlun Energy Co., Ltd.
    932,000       1,539,273  
PetroChina Co., Ltd., H Shares
    7,456,000       10,582,505  
Yanzhou Coal Mining Co., Ltd., H Shares (a)
    932,000       788,878  
                 
              39,952,447  
                 
 
Food & Staples Retailing 0.1%
China Resources Enterprise Ltd.
    444,000       1,194,480  
                 
 
Food, Beverage & Tobacco 0.2%
Biostime International Holdings Ltd. (a)
    71,500       267,082  
China Agri-Industries Holdings Ltd.
    934,000       382,029  
China Huishan Dairy Holdings Co., Ltd. *(a)
    3,262,000       757,611  
Tsingtao Brewery Co., Ltd., H Shares
    146,000       1,108,637  
                 
              2,515,359  
                 
 
Health Care Equipment & Services 0.2%
Shandong Weigao Group Medical Polymer Co., Ltd., H Shares
    676,000       684,709  
Shanghai Pharmaceuticals Holding Co., Ltd., H Shares
    233,000       478,017  
Sinopharm Group Co., H Shares
    390,000       1,361,199  
                 
              2,523,925  
                 
 
Household & Personal Products 0.2%
Hengan International Group Co., Ltd.
    233,000       2,484,784  
                 
 
Insurance 1.6%
China Life Insurance Co., Ltd., H Shares
    2,622,000       7,527,532  
China Pacific Insurance (Group) Co., Ltd., H Shares
    676,500       2,540,099  
China Taiping Insurance Holdings Co., Ltd. *
    466,000       1,134,011  
New China Life Insurance Co., Ltd., H Shares
    153,000       545,854  
PICC Property & Casualty Co., Ltd., H Shares
    1,412,000       2,342,964  
Ping An Insurance Group Co. of China Ltd., H Shares
    699,000       5,691,103  
                 
              19,781,563  
                 
 
Materials 0.7%
Aluminum Corp. of China Ltd., H Shares *(a)
    1,274,000       540,823  
Anhui Conch Cement Co., Ltd., H Shares (a)
    466,000       1,683,580  
BBMG Corp., H Shares
    699,000       521,309  
China BlueChemical Ltd., H Shares
    1,864,000       918,754  
China National Building Material Co., Ltd., H Shares
    1,092,000       1,003,211  
China Resources Cement Holdings Ltd.
    932,000       640,963  
China Zhongwang Holdings Ltd. (a)
    1,304,800       553,898  
Fosun International Ltd.
    699,000       858,626  
Jiangxi Copper Co., Ltd., H Shares
    469,000       829,055  
Lee & Man Paper Manufacturing Ltd.
    932,000       548,366  
Nine Dragons Paper Holdings Ltd. (a)
    466,000       363,774  
Zhaojin Mining Industry Co., Ltd., H Shares
    562,000       348,796  
Zijin Mining Group Co., Ltd., H Shares (a)
    2,796,000       728,750  
                 
              9,539,905  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSPC Pharmaceutical Group Ltd.
    1,044,000       872,902  
Shanghai Fosun Pharmaceutical Group Co., Ltd., H Shares
    93,500       304,020  
Sihuan Pharmaceutical Holdings Group Ltd.
    1,701,000       1,139,099  
Sino Biopharmaceutical Ltd.
    668,000       615,410  
                 
              2,931,431  
                 
 
Real Estate 1.1%
China Overseas Land & Investment Ltd.
    1,396,000       3,926,737  
China Resources Land Ltd.
    932,000       2,133,337  
China Vanke Co., Ltd., H Shares *(a)
    756,500       1,417,312  
Country Garden Holdings Co., Ltd.
    1,461,000       648,483  
Evergrande Real Estate Group Ltd. (a)
    2,330,000       974,072  
Greentown China Holdings Ltd.
    466,000       490,643  
 
 
 
See financial notes 41

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Guangzhou R&F Properties Co., Ltd., H Shares
    415,600       500,855  
Longfor Properties Co., Ltd.
    466,000       595,266  
Renhe Commercial Holdings Co., Ltd. *(a)
    6,524,000       298,836  
Shimao Property Holdings Ltd.
    466,000       1,025,781  
Sino-Ocean Land Holdings Ltd.
    1,864,000       1,053,440  
Yuexiu Property Co., Ltd.
    4,660,000       998,123  
                 
              14,062,885  
                 
 
Retailing 0.3%
Belle International Holdings Ltd.
    1,578,000       2,017,765  
GOME Electrical Appliances Holdings Ltd.
    5,126,000       912,741  
Zhongsheng Group Holdings Ltd.
    233,000       258,249  
                 
              3,188,755  
                 
 
Semiconductors & Semiconductor Equipment 0.1%
GCL- Poly Energy Holdings Ltd. *(a)
    4,203,000       1,513,051  
                 
 
Software & Services 2.1%
Kingsoft Corp., Ltd. (a)
    277,000       793,456  
Tencent Holdings Ltd.
    1,568,200       25,596,576  
Travelsky Technology Ltd., H Shares
    466,000       458,174  
                 
              26,848,206  
                 
 
Technology Hardware & Equipment 0.4%
Kingboard Chemical Holdings Ltd.
    267,000       554,660  
Lenovo Group Ltd.
    2,344,000       3,580,958  
ZTE Corp., H Shares (a)
    297,360       669,910  
                 
              4,805,528  
                 
 
Telecommunication Services 2.3%
China Mobile Ltd.
    1,743,500       21,686,471  
China Telecom Corp., Ltd., H Shares
    6,524,000       4,032,175  
China Unicom (Hong Kong) Ltd.
    1,864,000       3,323,868  
                 
              29,042,514  
                 
 
Transportation 0.5%
Air China Ltd., H Shares
    1,394,000       863,364  
China COSCO Holdings Co., Ltd., H Shares *(a)
    1,186,000       511,118  
China Merchants Holdings International Co., Ltd.
    512,000       1,697,825  
China Shipping Container Lines Co., Ltd., H Shares *(a)
    1,864,000       531,530  
COSCO Pacific Ltd.
    932,000       1,305,977  
Jiangsu Expressway Co., Ltd., H Shares
    378,000       430,668  
Sinotrans Ltd.
    557,000       375,159  
Zhejiang Expressway Co., Ltd., H Shares
    932,000       927,172  
                 
              6,642,813  
                 
 
Utilities 0.9%
Beijing Enterprises Water Group Ltd.
    1,257,000       856,365  
Beijing Jingneng Clean Energy Co., Ltd., H Shares
    488,000       215,975  
China Gas Holdings Ltd.
    538,000       957,969  
China Longyuan Power Group Corp., H Shares
    932,000       1,007,743  
China Resources Gas Group Ltd.
    230,000       669,213  
China Resources Power Holdings Co., Ltd.
    932,000       2,819,997  
Datang International Power Generation Co., Ltd., H Shares
    2,796,000       1,551,299  
ENN Energy Holdings Ltd.
    238,000       1,681,322  
Huadian Fuxin Energy Corp., Ltd., H Shares
    476,000       281,295  
Huaneng Power International, Inc., H Shares
    1,272,000       1,529,653  
Huaneng Renewables Corp., Ltd., H Shares
    932,000       342,729  
                 
              11,913,560  
                 
              267,805,324  
 
Colombia 1.0%
                 
 
Banks 0.2%
Bancolombia S.A. ADR
    37,280       2,359,078  
                 
 
Diversified Financials 0.2%
Corp. Financiera Colombiana S.A.
    56,456       1,203,602  
Grupo de Inversiones Suramericana S.A.
    61,978       1,424,707  
                 
              2,628,309  
                 
 
Energy 0.3%
Ecopetrol S.A. ADR (a)
    92,268       3,190,628  
                 
 
Food & Staples Retailing 0.1%
Almacenes Exito S.A.
    90,404       1,539,052  
                 
 
Materials 0.1%
Cementos Argos S.A.
    140,266       826,191  
Cemex Latam Holdings S.A. *
    52,192       516,901  
                 
              1,343,092  
                 
 
Utilities 0.1%
Interconexion Electrica S.A. ESP
    132,344       669,153  
Isagen S.A. ESP
    455,282       681,102  
                 
              1,350,255  
                 
              12,410,414  
 
Czech Republic 0.3%
                 
 
Banks 0.1%
Komercni Banka A/S
    5,126       1,192,133  
                 
 
Telecommunication Services 0.1%
O2 Czech Republic A/S
    50,124       704,186  
                 
 
Utilities 0.1%
CEZ A/S
    61,046       1,774,652  
                 
              3,670,971  
 
Egypt 0.3%
                 
 
Banks 0.2%
Commercial International Bank Egypt SAE GDR - Reg’d
    411,478       2,612,885  
 
 
 
42 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Telecommunication Services 0.1%
Global Telecom Holding SAE GDR *
    416,150       1,493,146  
Orascom Telecom Media & Technology Holding SAE GDR *(b)(d)
    176,826       154,564  
                 
              1,647,710  
                 
              4,260,595  
 
Hungary 0.3%
                 
 
Banks 0.1%
OTP Bank plc
    74,560       1,288,904  
                 
 
Energy 0.1%
MOL Hungarian Oil & Gas plc
    25,060       1,234,746  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt
    51,260       824,906  
                 
              3,348,556  
 
India 10.5%
                 
 
Automobiles & Components 0.7%
Bajaj Auto Ltd.
    34,484       1,283,603  
Hero MotoCorp Ltd.
    29,825       1,280,293  
Mahindra & Mahindra Ltd.
    103,452       2,399,104  
Maruti Suzuki India Ltd.
    27,960       1,283,036  
Tata Motors Ltd.
    328,530       2,842,694  
                 
              9,088,730  
                 
 
Banks 2.3%
Axis Bank Ltd.
    545,997       3,574,445  
Bank of Baroda
    34,552       496,244  
HDFC Bank Ltd.
    389,652       5,416,792  
Housing Development Finance Corp.
    531,240       9,407,010  
ICICI Bank Ltd.
    190,128       4,877,905  
IndusInd Bank Ltd.
    94,243       909,271  
Kotak Mahindra Bank Ltd.
    117,432       2,007,936  
State Bank of India
    53,590       2,173,186  
Yes Bank Ltd.
    67,104       632,611  
                 
              29,495,400  
                 
 
Capital Goods 0.4%
Adani Enterprises Ltd.
    101,588       801,755  
Bharat Heavy Electricals Ltd.
    260,960       1,036,013  
Cummins India Ltd.
    55,920       636,611  
GMR Infrastructure Ltd.
    435,604       181,980  
Jaiprakash Associates Ltd. *
    434,778       333,177  
Larsen & Toubro Ltd.
    85,107       2,140,999  
Siemens Ltd.
    28,426       372,096  
                 
              5,502,631  
                 
 
Consumer Durables & Apparel 0.0%
Titan Co., Ltd.
    97,860       586,063  
                 
 
Diversified Financials 0.3%
Bajaj Holdings & Investment Ltd.
    35,339       777,598  
IDFC Ltd.
    436,176       1,036,888  
Mahindra & Mahindra Financial Services Ltd.
    98,326       452,578  
Power Finance Corp., Ltd.
    131,412       541,631  
Rural Electrification Corp., Ltd.
    128,150       566,728  
Shriram Transport Finance Co., Ltd.
    43,804       652,693  
                 
              4,028,116  
                 
 
Energy 1.4%
Bharat Petroleum Corp., Ltd.
    99,169       1,134,691  
Cairn India Ltd.
    155,178       834,325  
Coal India Ltd.
    218,088       1,279,847  
Indian Oil Corp., Ltd.
    128,616       761,776  
Oil & Natural Gas Corp., Ltd.
    695,738       4,987,575  
Reliance Industries Ltd.
    540,022       8,887,936  
The Great Eastern Shipping Co., Ltd.
    111,374       676,816  
                 
              18,562,966  
                 
 
Food, Beverage & Tobacco 0.5%
ITC Ltd.
    687,816       4,027,374  
Nestle India Ltd.
    12,116       1,203,723  
United Spirits Ltd.
    34,484       1,362,794  
                 
              6,593,891  
                 
 
Household & Personal Products 0.4%
Colgate-Palmolive (India) Ltd.
    24,698       625,224  
Dabur India Ltd.
    176,444       676,349  
Godrej Consumer Products Ltd.
    28,426       461,876  
Hindustan Unilever Ltd.
    258,164       3,158,765  
                 
              4,922,214  
                 
 
Materials 0.8%
Ambuja Cements Ltd.
    217,274       738,689  
Asian Paints Ltd.
    99,418       1,022,688  
Hindalco Industries Ltd.
    440,751       1,235,526  
Jindal Steel & Power Ltd.
    159,838       613,748  
JSW Steel Ltd.
    55,784       1,143,259  
NMDC Ltd.
    250,708       700,520  
Sesa Sterlite Ltd.
    460,408       2,102,869  
Steel Authority of India Ltd.
    240,154       320,773  
Tata Steel Ltd.
    91,336       772,397  
Ultratech Cement Ltd.
    32,620       1,370,841  
                 
              10,021,310  
                 
 
Media 0.1%
Zee Entertainment Enterprises Ltd.
    226,892       1,023,407  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Cipla Ltd.
    180,808       1,532,160  
Dr. Reddy’s Laboratories Ltd.
    36,814       1,788,464  
Glenmark Pharmaceuticals Ltd.
    35,416       418,420  
Lupin Ltd.
    70,304       1,489,268  
Piramal Enterprises Ltd.
    30,290       344,007  
Ranbaxy Laboratories Ltd. *
    46,600       492,034  
Sun Pharmaceutical Industries Ltd.
    265,620       3,743,762  
                 
              9,808,115  
                 
 
Real Estate 0.1%
DLF Ltd.
    185,002       540,554  
Unitech Ltd. *
    553,804       198,048  
                 
              738,602  
                 
 
Software & Services 1.8%
HCL Technologies Ltd.
    91,336       2,454,617  
Infosys Ltd.
    166,828       9,894,209  
Oracle Financial Services Software Ltd. *
    6,524       387,742  
 
 
 
See financial notes 43

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Tata Consultancy Services Ltd.
    145,392       6,043,664  
Tech Mahindra Ltd.
    46,348       1,804,883  
Wipro Ltd. ADR
    173,064       2,069,845  
                 
              22,654,960  
                 
 
Telecommunication Services 0.4%
Bharti Airtel Ltd.
    506,076       3,084,161  
Idea Cellular Ltd.
    448,292       1,196,086  
Reliance Communications Ltd.
    211,098       403,549  
                 
              4,683,796  
                 
 
Transportation 0.1%
Adani Ports & Special Economic Zone Ltd.
    190,128       886,251  
                 
 
Utilities 0.4%
GAIL India Ltd.
    154,712       1,130,509  
NTPC Ltd.
    712,048       1,612,317  
Power Grid Corp. of India Ltd.
    447,826       953,512  
Reliance Infrastructure Ltd.
    54,056       622,963  
Tata Power Co., Ltd.
    531,240       758,164  
                 
              5,077,465  
                 
              133,673,917  
 
Indonesia 2.7%
                 
 
Automobiles & Components 0.4%
PT Astra International Tbk
    6,908,000       4,473,443  
                 
 
Banks 1.0%
PT Bank Danamon Indonesia Tbk
    871,800       279,483  
PT Bank Central Asia Tbk
    4,427,000       4,238,718  
PT Bank Mandiri (Persero) Tbk
    3,029,459       2,686,953  
PT Bank Negara Indonesia (Persero) Tbk
    3,075,616       1,406,672  
PT Bank Rakyat Indonesia (Persero) Tbk
    3,649,500       3,447,486  
                 
              12,059,312  
                 
 
Capital Goods 0.1%
PT United Tractors Tbk
    652,400       1,235,363  
                 
 
Energy 0.1%
PT Adaro Energy Tbk
    7,384,200       830,111  
PT Tambang Batubara Bukit Asam (Persero) Tbk
    466,000       531,832  
                 
              1,361,943  
                 
 
Food, Beverage & Tobacco 0.2%
PT Astra Agro Lestari Tbk
    191,800       418,115  
PT Charoen Pokphand Indonesia Tbk
    2,864,700       941,635  
PT Gudang Garam Tbk
    158,300       730,772  
PT Indofood Sukses Makmur Tbk
    1,654,400       972,344  
                 
              3,062,866  
                 
 
Household & Personal Products 0.1%
PT Unilever Indonesia Tbk
    466,000       1,235,961  
                 
 
Materials 0.2%
PT Indocement Tunggal Prakarsa Tbk
    466,000       966,061  
PT Semen Indonesia (Persero) Tbk
    1,011,700       1,403,277  
PT Vale Indonesia Tbk
    918,400       328,182  
                 
              2,697,520  
                 
 
Media 0.1%
PT Media Nusantara Citra Tbk
    2,516,400       603,420  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
PT Kalbe Farma Tbk
    9,646,200       1,368,899  
                 
 
Telecommunication Services 0.3%
PT Telekomunikasi Indonesia (Persero) Tbk
    19,152,600       4,363,469  
                 
 
Transportation 0.0%
PT Jasa Marga Persero Tbk
    936,000       496,106  
                 
 
Utilities 0.1%
PT Perusahaan Gas Negara (Persero) Tbk
    3,728,000       1,848,463  
                 
              34,806,765  
 
Malaysia 4.8%
                 
 
Automobiles & Components 0.1%
UMW Holdings Berhad
    326,200       1,279,134  
                 
 
Banks 1.5%
Alliance Financial Group Berhad
    749,000       1,154,867  
AMMB Holdings Berhad
    745,600       1,580,142  
CIMB Group Holdings Berhad
    1,739,200       4,072,112  
Hong Leong Bank Berhad
    238,600       1,090,051  
Malayan Banking Berhad
    1,491,200       4,778,274  
Public Bank Berhad
    971,330       5,941,384  
RHB Capital Berhad
    238,600       694,150  
                 
              19,310,980  
                 
 
Capital Goods 0.5%
Gamuda Berhad
    1,027,400       1,574,347  
IJM Corp. Berhad
    474,500       978,506  
Sime Darby Berhad
    1,071,800       3,216,760  
                 
              5,769,613  
                 
 
Consumer Services 0.4%
Berjaya Sports Toto Berhad
    285,256       340,280  
Genting Berhad
    838,800       2,549,399  
Genting Malaysia Berhad
    1,086,700       1,554,891  
                 
              4,444,570  
                 
 
Energy 0.2%
Bumi Armada Berhad *
    326,200       305,295  
Petronas Dagangan Berhad
    139,800       891,491  
SapuraKencana Petroleum Berhad
    1,435,000       1,921,225  
                 
              3,118,011  
                 
 
Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad
    46,600       1,064,467  
Felda Global Ventures Holdings Berhad
    419,400       508,283  
IOI Corp. Berhad
    1,607,800       2,438,225  
Kuala Lumpur Kepong Berhad
    192,200       1,343,936  
PPB Group Berhad
    192,200       901,242  
                 
              6,256,153  
                 
 
Health Care Equipment & Services 0.1%
IHH Healthcare Berhad
    932,000       1,442,944  
 
 
 
44 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Materials 0.2%
Lafarge Malaysia Berhad
    139,800       452,399  
Petronas Chemicals Group Berhad
    978,600       1,955,958  
                 
              2,408,357  
                 
 
Media 0.0%
Astro Malaysia Holdings Berhad
    233,000       242,462  
                 
 
Real Estate 0.1%
IOI Properties Group Berhad *
    652,400       509,170  
KLCCP Stapled Group
    145,300       305,167  
SP Setia Berhad Group
    759,800       831,634  
                 
              1,645,971  
                 
 
Telecommunication Services 0.7%
Axiata Group Berhad
    1,770,800       3,893,288  
DiGi.com Berhad
    1,491,200       2,710,843  
Maxis Berhad
    795,400       1,652,877  
Telekom Malaysia Berhad
    233,000       470,140  
                 
              8,727,148  
                 
 
Transportation 0.1%
Malaysia Airports Holdings Berhad
    233,000       569,194  
MISC Berhad
    559,200       1,220,589  
                 
              1,789,783  
                 
 
Utilities 0.4%
Petronas Gas Berhad
    273,600       1,979,086  
Tenaga Nasional Berhad
    412,050       1,618,394  
YTL Corp. Berhad
    1,779,840       914,766  
YTL Power International Berhad *
    1,220,825       577,103  
                 
              5,089,349  
                 
              61,524,475  
 
Mexico 5.9%
                 
 
Banks 0.7%
Grupo Financiero Banorte S.A.B. de C.V., O Shares
    803,200       5,654,434  
Grupo Financiero Inbursa S.A.B. de C.V., O Shares
    745,600       2,265,511  
Grupo Financiero Santander Mexico S.A.B. de C.V., B Shares
    507,300       1,519,320  
                 
              9,439,265  
                 
 
Capital Goods 0.4%
Alfa S.A.B. de C.V., A Shares
    838,800       2,698,812  
Grupo Carso S.A.B. de C.V., Series A1
    186,400       1,139,028  
Promotora y Operadora de Infraestructura S.A.B. de C.V. *
    54,700       766,817  
                 
              4,604,657  
                 
 
Diversified Financials 0.1%
Compartamos S.A.B. de C.V.
    372,800       796,037  
                 
 
Food & Staples Retailing 0.5%
Controladora Comercial Mexicana S.A.B. de C.V.
    186,400       717,916  
Organizacion Soriana S.A.B. de C.V., B Shares
    54,400       187,428  
Wal-Mart de Mexico S.A.B. de C.V., Series V
    2,050,400       5,582,520  
                 
              6,487,864  
                 
 
Food, Beverage & Tobacco 1.0%
Arca Continental S.A.B. de C.V.
    139,800       1,027,691  
Coca-Cola Femsa S.A.B. de C.V., Series L
    152,000       1,657,114  
Fomento Economico Mexicano S.A.B. de C.V.
    745,600       7,237,888  
Gruma S.A.B. de C.V., B Shares *
    46,600       531,630  
Grupo Bimbo S.A.B. de C.V., Series A
    652,400       2,053,672  
Grupo Lala S.A.B. de C.V.
    197,700       513,169  
                 
              13,021,164  
                 
 
Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares
    279,600       746,070  
                 
 
Materials 1.1%
Alpek S.A. de C.V.
    225,400       453,541  
Cemex S.A.B. de C.V., Series CPO *
    4,020,464       5,340,940  
Grupo Mexico S.A.B. de C.V., Series B
    1,351,400       4,909,296  
Industrias CH S.A.B. de C.V., Series B *
    46,600       257,493  
Industrias Penoles S.A.B. de C.V.
    46,600       1,182,508  
Mexichem S.A.B. de C.V.
    419,400       1,808,723  
Minera Frisco S.A.B. de C.V., Series A1 *
    212,300       426,857  
                 
              14,379,358  
                 
 
Media 0.6%
Grupo Televisa S.A.B., Series CPO
    978,600       7,281,404  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Genomma Lab Internacional S.A.B. de C.V., B Shares *
    268,000       714,913  
                 
 
Real Estate 0.2%
Concentradora Fibra Danhos S.A. de C.V.
    109,000       293,767  
Fibra Uno Administracion S.A. de C.V.
    652,400       2,342,563  
                 
              2,636,330  
                 
 
Retailing 0.0%
Grupo Elektra S.A. de C.V.
    13,980       409,152  
                 
 
Telecommunication Services 1.0%
America Movil S.A.B. de C.V., Series L
    10,578,200       12,936,057  
                 
 
Transportation 0.1%
Grupo Aeroportuario del Sureste S.A.B. de C.V., B Shares
    75,100       962,679  
OHL Mexico S.A.B. de C.V. *
    279,600       821,127  
                 
              1,783,806  
 
 
 
See financial notes 45

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Utilities 0.0%
Infraestructura Energetica Nova S.A.B. de C.V.
    80,500       482,981  
                 
              75,719,058  
 
Pakistan 0.0%
                 
 
Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d (d)
    9,984       239,616  
 
Peru 0.4%
                 
 
Banks 0.3%
Credicorp Ltd.
    19,572       3,035,030  
                 
 
Materials 0.1%
Companhia de Minas Buenaventura S.A. ADR
    100,190       1,458,766  
                 
              4,493,796  
 
Philippines 1.6%
                 
 
Banks 0.3%
Bank of the Philippine Islands
    822,606       1,792,375  
BDO Unibank, Inc.
    649,480       1,348,118  
Metropolitan Bank & Trust Co.
    259,486       511,533  
                 
              3,652,026  
                 
 
Capital Goods 0.5%
Aboitiz Equity Ventures, Inc.
    652,400       819,241  
Alliance Global Group, Inc.
    1,444,600       815,072  
DMCI Holdings, Inc.
    326,200       598,532  
JG Summit Holdings, Inc.
    683,900       807,033  
San Miguel Corp.
    302,900       548,833  
SM Investments Corp.
    127,575       2,258,897  
                 
              5,847,608  
                 
 
Consumer Services 0.0%
Jollibee Foods Corp.
    149,120       615,633  
                 
 
Diversified Financials 0.1%
Ayala Corp.
    74,560       1,197,919  
GT Capital Holdings, Inc.
    18,640       401,872  
                 
              1,599,791  
                 
 
Food, Beverage & Tobacco 0.1%
LT Group, Inc.
    1,025,200       360,231  
Universal Robina Corp.
    288,920       1,076,823  
                 
              1,437,054  
                 
 
Real Estate 0.2%
Ayala Land, Inc.
    1,864,000       1,410,826  
SM Prime Holdings, Inc.
    3,029,000       1,124,064  
                 
              2,534,890  
                 
 
Telecommunication Services 0.2%
Philippine Long Distance Telephone Co.
    29,970       2,371,479  
                 
 
Transportation 0.1%
International Container Terminal Services, Inc.
    433,380       1,122,216  
                 
 
Utilities 0.1%
Aboitiz Power Corp.
    932,000       801,606  
Energy Development Corp.
    4,009,600       668,573  
Manila Electric Co.
    55,920       325,003  
                 
              1,795,182  
                 
              20,975,879  
 
Poland 1.6%
                 
 
Banks 0.7%
Bank Handlowy w Warszawie S.A.
    20,038       717,579  
Bank Millennium S.A.
    195,720       491,542  
Bank Pekao S.A.
    41,940       2,362,392  
Getin Noble Bank S.A. *
    770,305       626,391  
mBank S.A.
    4,194       607,978  
Powszechna Kasa Oszczednosci Bank Polski S.A.
    285,192       3,411,761  
                 
              8,217,643  
                 
 
Energy 0.2%
Polski Koncern Naftowy Orlen S.A.
    128,150       1,580,357  
Polskie Gornictwo Naftowe i Gazownictwo S.A.
    870,664       1,328,863  
                 
              2,909,220  
                 
 
Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.
    19,572       2,870,899  
                 
 
Materials 0.2%
KGHM Polska Miedz S.A.
    55,598       2,291,841  
Synthos S.A.
    229,738       330,522  
                 
              2,622,363  
                 
 
Media 0.0%
Cyfrowy Polsat S.A.
    56,136       449,285  
                 
 
Telecommunication Services 0.1%
Orange Polska S.A.
    225,078       756,044  
                 
 
Utilities 0.2%
Enea S.A.
    82,016       384,769  
PGE S.A.
    314,084       2,142,453  
Tauron Polska Energia S.A.
    269,499       420,598  
                 
              2,947,820  
                 
              20,773,274  
 
Russia 4.5%
                 
 
Banks 0.6%
Sberbank of Russia *
    1       2  
Sberbank of Russia ADR
    826,382       6,735,013  
VTB Bank OJSC GDR - Reg’d
    691,418       1,438,150  
                 
              8,173,165  
                 
 
Energy 2.5%
AK Transneft OAO *
    250       549,307  
Gazprom OAO
    1       4  
Gazprom OAO ADR
    1,978,276       14,144,673  
LUKOIL OAO *
    1       55  
Lukoil OAO ADR
    173,352       9,664,374  
NovaTek OAO *
    189,300       1,878,110  
Rosneft OJSC GDR - Reg’d
    385,518       2,353,973  
Surgutneftegas OAO *
    1       1  
Surgutneftegas OAO ADR
    131,544       910,285  
Tatneft OAO *
    1       6  
 
 
 
46 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Tatneft OAO ADR
    47,908       1,777,387  
TMK OAO GDR - Reg’d
    31,097       304,284  
                 
              31,582,459  
                 
 
Food & Staples Retailing 0.5%
Magnit OJSC GDR - Reg’d
    101,860       5,928,252  
                 
 
Materials 0.5%
MMC Norilsk Nickel OJSC *
    1       195  
MMC Norilsk Nickel OJSC ADR
    169,558       3,318,250  
Novolipetsk Steel OJSC GDR - Reg’d
    26,740       382,382  
PhosAgro OAO GDR - Reg’d
    25,354       286,500  
Severstal OAO GDR - Reg’d
    80,690       778,658  
Uralkali OJSC GDR - Reg’d
    57,652       1,074,057  
                 
              5,840,042  
                 
 
Real Estate 0.0%
LSR Group GDR - Reg’d
    57,016       205,258  
                 
 
Telecommunication Services 0.4%
MegaFon OAO GDR - Reg’d
    35,996       1,018,687  
Mobile Telesystems OJSC ADR
    154,932       2,858,495  
Sistema JSFC GDR - Reg’d
    51,726       1,176,767  
                 
              5,053,949  
                 
 
Utilities 0.0%
Federal Grid Co. Unified Energy System JSC *
    129,810,000       189,003  
Rosseti JSC *
    27,723,001       384,906  
                 
              573,909  
                 
              57,357,034  
 
South Africa 9.4%
                 
 
Banks 0.7%
Barclays Africa Group Ltd.
    108,578       1,700,634  
Capitec Bank Holdings Ltd.
    14,266       284,437  
Nedbank Group Ltd.
    71,298       1,533,168  
Standard Bank Group Ltd.
    418,468       5,429,846  
                 
              8,948,085  
                 
 
Capital Goods 0.4%
Aveng Ltd. *
    183,604       394,298  
Barloworld Ltd.
    82,482       786,089  
Reunert Ltd.
    80,152       497,398  
The Bidvest Group Ltd.
    105,316       2,785,744  
                 
              4,463,529  
                 
 
Consumer Durables & Apparel 0.3%
Steinhoff International Holdings Ltd.
    806,797       3,983,387  
                 
 
Consumer Services 0.0%
Sun International Ltd.
    37,280       410,117  
                 
 
Diversified Financials 1.0%
Brait SE *
    84,829       631,787  
Coronation Fund Managers Ltd.
    95,996       902,608  
FirstRand Ltd.
    1,056,655       4,297,001  
Investec Ltd.
    107,646       973,687  
JSE Ltd.
    62,016       590,865  
Remgro Ltd.
    179,410       4,107,634  
RMB Holdings Ltd.
    274,474       1,444,709  
                 
              12,948,291  
                 
 
Energy 0.9%
Exxaro Resources Ltd.
    42,406       601,596  
Sasol Ltd.
    191,530       11,134,435  
                 
              11,736,031  
                 
 
Food & Staples Retailing 0.4%
Clicks Group Ltd.
    87,680       570,084  
Massmart Holdings Ltd.
    36,874       453,393  
Pick n Pay Stores Ltd.
    98,792       524,827  
Shoprite Holdings Ltd.
    158,906       2,203,085  
The SPAR Group Ltd.
    82,948       1,016,786  
                 
              4,768,175  
                 
 
Food, Beverage & Tobacco 0.2%
AVI Ltd.
    158,906       910,967  
Tiger Brands Ltd.
    59,182       1,708,340  
                 
              2,619,307  
                 
 
Health Care Equipment & Services 0.3%
Life Healthcare Group Holdings Ltd.
    347,636       1,463,710  
Mediclinic International Ltd.
    118,017       1,026,215  
Netcare Ltd.
    517,726       1,572,348  
                 
              4,062,273  
                 
 
Insurance 0.5%
Discovery Ltd.
    150,052       1,384,772  
MMI Holdings Ltd.
    477,650       1,234,613  
Sanlam Ltd.
    608,596       3,776,758  
                 
              6,396,143  
                 
 
Materials 1.0%
Aeci Ltd.
    56,852       657,502  
African Rainbow Minerals Ltd.
    33,552       573,060  
Anglo American Platinum Ltd. *
    23,300       970,742  
AngloGold Ashanti Ltd. *
    130,014       2,213,272  
Gold Fields Ltd.
    269,348       1,276,664  
Harmony Gold Mining Co., Ltd. *
    188,730       571,936  
Impala Platinum Holdings Ltd.
    182,206       1,648,958  
Kumba Iron Ore Ltd.
    21,436       641,947  
Mondi Ltd.
    55,498       946,066  
Nampak Ltd.
    299,638       1,201,606  
Northam Platinum Ltd. *
    80,679       323,918  
PPC Ltd.
    219,486       683,301  
Sappi Ltd. *
    197,118       815,502  
Sibanye Gold Ltd.
    262,960       619,855  
                 
              13,144,329  
                 
 
Media 1.3%
Naspers Ltd., N Shares
    134,208       17,105,293  
                 
 
Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Aspen Pharmacare Holdings Ltd.
    109,044       3,133,808  
                 
 
Real Estate 0.2%
Capital Property Fund
    703,660       790,637  
Growthpoint Properties Ltd.
    740,008       1,753,408  
                 
              2,544,045  
                 
 
Retailing 0.6%
Imperial Holdings Ltd.
    65,706       1,175,065  
Mr. Price Group Ltd.
    93,200       1,793,824  
The Foschini Group Ltd.
    79,686       862,539  
Truworths International Ltd.
    155,178       1,085,549  
Woolworths Holdings Ltd.
    275,406       2,057,634  
                 
              6,974,611  
 
 
 
See financial notes 47

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Telecommunication Services 1.3%
MTN Group Ltd.
    604,868       13,708,688  
Telkom S.A. SOC Ltd. *
    201,808       1,084,428  
Vodacom Group Ltd.
    122,558       1,479,053  
                 
              16,272,169  
                 
 
Transportation 0.0%
Grindrod Ltd.
    139,334       324,380  
                 
              119,833,973  
 
Taiwan 13.4%
                 
 
Automobiles & Components 0.2%
Cheng Shin Rubber Industry Co., Ltd.
    914,557       2,111,187  
Yulon Motor Co., Ltd.
    385,000       618,257  
                 
              2,729,444  
                 
 
Banks 1.4%
Chang Hwa Commercial Bank Ltd.
    2,133,352       1,327,524  
China Development Financial Holding Corp.
    5,149,268       1,739,938  
CTBC Financial Holding Co., Ltd.
    4,660,188       3,391,014  
E.Sun Financial Holding Co., Ltd.
    2,469,239       1,623,277  
Far Eastern International Bank
    609,637       220,273  
First Financial Holding Co., Ltd.
    2,311,561       1,430,685  
Hua Nan Financial Holdings Co., Ltd.
    3,074,706       1,908,158  
Mega Financial Holding Co., Ltd.
    3,262,544       2,816,066  
SinoPac Financial Holdings Co., Ltd.
    2,168,058       990,080  
Taishin Financial Holding Co., Ltd.
    2,108,872       1,072,409  
Taiwan Cooperative Financial Holding Co., Ltd.
    2,228,171       1,244,892  
                 
              17,764,316  
                 
 
Capital Goods 0.3%
Far Eastern New Century Corp.
    1,486,734       1,594,146  
Taiwan Glass Industry Corp.
    492,036       424,701  
Teco Electric & Machinery Co., Ltd.
    466,000       586,193  
Walsin Lihwa Corp. *
    1,864,000       667,262  
                 
              3,272,302  
                 
 
Consumer Durables & Apparel 0.2%
Formosa Taffeta Co., Ltd.
    466,000       494,990  
Giant Manufacturing Co., Ltd.
    91,000       756,545  
Pou Chen Corp.
    732,580       846,778  
                 
              2,098,313  
                 
 
Diversified Financials 0.5%
Capital Securities Corp.
    1,417,629       495,616  
Fubon Financial Holding Co., Ltd.
    2,455,078       4,008,224  
Yuanta Financial Holding Co., Ltd.
    3,850,848       2,074,193  
                 
              6,578,033  
                 
 
Energy 0.1%
Formosa Petrochemical Corp.
    730,000       1,843,897  
                 
 
Food & Staples Retailing 0.1%
President Chain Store Corp.
    169,000       1,280,624  
                 
 
Food, Beverage & Tobacco 0.3%
Uni-President Enterprises Corp.
    1,726,437       3,159,402  
                 
 
Insurance 0.4%
Cathay Financial Holding Co., Ltd.
    2,442,261       4,167,054  
Shin Kong Financial Holding Co., Ltd.
    2,877,546       938,628  
                 
              5,105,682  
                 
 
Materials 1.6%
Asia Cement Corp.
    989,206       1,356,867  
China Steel Corp.
    3,934,248       3,395,848  
Formosa Chemicals & Fibre Corp.
    1,459,500       3,632,820  
Formosa Plastics Corp.
    1,917,120       4,970,703  
Nan Ya Plastics Corp.
    2,076,060       4,896,614  
Taiwan Cement Corp.
    1,119,690       1,779,337  
Taiwan Fertilizer Co., Ltd.
    182,000       345,240  
YFY, Inc.
    932,000       425,614  
                 
              20,803,043  
                 
 
Real Estate 0.0%
Cathay Real Estate Development Co., Ltd.
    794,000       447,597  
                 
 
Retailing 0.2%
Hotai Motor Co., Ltd.
    153,000       2,152,406  
                 
 
Semiconductors & Semiconductor Equipment 4.2%
Advanced Semiconductor Engineering, Inc.
    2,458,488       3,063,806  
Epistar Corp.
    210,000       456,667  
Inotera Memories, Inc. *
    932,000       1,524,725  
Macronix International *
    1,422,383       368,795  
MediaTek, Inc.
    503,469       8,413,468  
Novatek Microelectronics Corp.
    194,000       996,270  
Realtek Semiconductor Corp.
    101,000       368,311  
Siliconware Precision Industries Co. ADR
    280,066       2,058,485  
Taiwan Semiconductor Manufacturing Co., Ltd. ADR
    1,633,330       34,201,930  
United Microelectronics Corp. ADR
    931,750       2,068,485  
                 
              53,520,942  
                 
 
Technology Hardware & Equipment 3.2%
Acer, Inc. *
    932,086       771,788  
Advantech Co., Ltd.
    101,500       952,502  
Asustek Computer, Inc.
    241,426       2,528,105  
AU Optronics Corp. ADR
    326,200       1,611,428  
Catcher Technology Co., Ltd.
    244,200       2,475,455  
Chicony Electronics Co., Ltd.
    149,559       490,349  
Compal Electronics, Inc.
    1,401,610       1,247,313  
Foxconn Technology Co., Ltd.
    539,368       1,353,360  
Hon Hai Precision Industry Co., Ltd.
    4,246,444       14,490,801  
HTC Corp. *
    256,650       1,180,622  
Innolux Corp.
    2,750,541       1,398,713  
Inventec Corp.
    1,427,145       1,122,026  
Largan Precision Co., Ltd.
    31,000       2,566,869  
Lite-On Technology Corp.
    942,869       1,563,010  
Pegatron Corp.
    492,441       1,044,504  
Quanta Computer, Inc.
    932,000       2,631,632  
 
 
 
48 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Synnex Technology International Corp.
    472,053       720,149  
TPK Holding Co., Ltd.
    91,996       624,787  
Unimicron Technology Corp.
    932,000       787,307  
Wistron Corp.
    1,031,315       1,207,609  
                 
              40,768,329  
                 
 
Telecommunication Services 0.6%
Chunghwa Telecom Co., Ltd. ADR
    135,140       4,219,071  
Far EasTone Telecommunications Co., Ltd.
    500,000       1,065,556  
Taiwan Mobile Co., Ltd.
    577,600       1,841,564  
                 
              7,126,191  
                 
 
Transportation 0.1%
China Airlines Ltd. *
    1,158,000       387,414  
Eva Airways Corp. *
    932,000       467,707  
Evergreen Marine Corp., Ltd. *
    932,199       569,165  
U-Ming Marine Transport Corp.
    190,000       312,742  
                 
              1,737,028  
                 
              170,387,549  
 
Thailand 3.2%
                 
 
Banks 0.7%
Bangkok Bank PCL NVDR
    186,400       1,196,368  
Bank of Ayudhya PCL NVDR
    372,800       586,512  
Kasikornbank PCL NVDR
    419,400       2,954,446  
Krung Thai Bank PCL NVDR
    1,968,100       1,448,039  
The Siam Commercial Bank PCL NVDR
    512,600       3,001,133  
TMB Bank PCL NVDR
    4,893,000       465,708  
                 
              9,652,206  
                 
 
Capital Goods 0.0%
Berli Jucker PCL NVDR
    139,800       210,094  
                 
 
Energy 0.5%
Banpu PCL NVDR
    466,000       470,523  
IRPC PCL NVDR
    5,638,600       586,104  
PTT Exploration & Production PCL NVDR
    533,004       2,745,121  
PTT PCL NVDR
    294,300       2,957,742  
                 
              6,759,490  
                 
 
Food & Staples Retailing 0.2%
Big C Supercenter PCL NVDR
    93,200       700,313  
CP ALL PCL NVDR
    1,724,200       2,564,167  
                 
              3,264,480  
                 
 
Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods PCL NVDR
    1,444,600       1,334,242  
                 
 
Health Care Equipment & Services 0.1%
Bangkok Dusit Medical Services PCL NVDR
    1,106,000       675,235  
                 
 
Materials 0.3%
Indorama Ventures PCL NVDR
    315,500       266,703  
PTT Global Chemical PCL NVDR
    652,414       1,266,427  
The Siam Cement PCL NVDR
    139,800       1,925,861  
                 
              3,458,991  
                 
 
Media 0.1%
BEC World PCL NVDR
    512,600       762,320  
                 
 
Real Estate 0.1%
Central Pattana PCL NVDR
    560,400       846,565  
Land & Houses PCL NVDR
    932,000       318,059  
                 
              1,164,624  
                 
 
Technology Hardware & Equipment 0.4%
Delta Electronics, Inc.
    671,000       4,714,207  
                 
 
Telecommunication Services 0.5%
Advanced Info Service PCL NVDR
    419,400       2,744,352  
Intouch Holding PCL NVDR
    512,600       1,103,358  
Total Access Communication PCL NVDR
    226,600       773,306  
True Corp. PCL NVDR *
    3,492,907       1,257,622  
                 
              5,878,638  
                 
 
Transportation 0.1%
Airports of Thailand PCL NVDR
    164,800       1,222,843  
                 
 
Utilities 0.1%
Electricity Generating PCL NVDR
    93,200       497,514  
Glow Energy PCL NVDR
    197,100       539,958  
                 
              1,037,472  
                 
              40,134,842  
 
Turkey 1.9%
                 
 
Banks 0.7%
Akbank T.A.S.
    558,772       2,133,637  
Turkiye Garanti Bankasi A/S
    686,884       2,696,034  
Turkiye Halk Bankasi A/S
    182,260       1,338,688  
Turkiye Is Bankasi, C Shares
    561,996       1,453,202  
Turkiye Vakiflar Bankasi Tao, D Shares
    398,544       919,738  
Yapi ve Kredi Bankasi A/S
    362,082       807,069  
                 
              9,348,368  
                 
 
Capital Goods 0.2%
Enka Insaat ve Sanayi A/S
    114,027       285,867  
KOC Holding A/S
    308,492       1,579,664  
                 
              1,865,531  
                 
 
Consumer Durables & Apparel 0.0%
Arcelik A/S
    69,434       416,678  
                 
 
Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S
    276,384       1,280,771  
                 
 
Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S
    67,426       1,587,266  
                 
 
Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S
    73,319       1,725,992  
                 
 
Food, Beverage & Tobacco 0.2%
Anadolu Efes Biracilik Ve Malt Sanayii A/S *
    101,122       1,344,888  
Ulker Biskuvi Sanayi A/S
    69,434       514,815  
                 
              1,859,703  
                 
 
Materials 0.1%
Eregli Demir ve Celik Fabrikalari T.A.S.
    652,070       1,269,118  
 
 
 
See financial notes 49

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Real Estate 0.1%
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S
    794,064       1,000,882  
                 
 
Telecommunication Services 0.2%
Turk Telekomunikasyon A/S
    185,934       539,376  
Turkcell Iletisim Hizmetleri A/S *
    273,542       1,603,516  
                 
              2,142,892  
                 
 
Transportation 0.1%
Turk Hava Yollari Anonim Ortakligi *
    363,014       1,152,319  
                 
              23,649,520  
 
United Arab Emirates 0.9%
                 
 
Banks 0.2%
Dubai Islamic Bank PJSC
    246,048       523,171  
First Gulf Bank PJSC
    354,030       1,759,042  
Union National Bank PJSC
    316,557       581,740  
                 
              2,863,953  
                 
 
Capital Goods 0.1%
Arabtec Holding Co. *
    748,944       960,381  
                 
 
Diversified Financials 0.1%
Dubai Financial Market
    965,808       894,011  
                 
 
Energy 0.0%
Dana Gas PJSC *
    2,835,610       540,403  
                 
 
Real Estate 0.4%
Aldar Properties PJSC
    976,270       1,060,513  
Emaar Properties PJSC
    1,252,770       3,495,975  
                 
              4,556,488  
                 
 
Transportation 0.1%
DP World Ltd.
    86,910       1,632,170  
                 
              11,447,406  
                 
Total Common Stock
(Cost $1,097,678,142)     1,215,693,628  
         
                 
                 
 
 Other Investment Companies 1.1% of net assets
 
United States 1.1%
                 
 
Equity Fund 0.1%
Vanguard FTSE Emerging Markets ETF
    30,000       1,362,000  
                 
 
Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    335,698       335,698  
                 
 
Securities Lending Collateral 1.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    12,267,973       12,267,973  
                 
Total Other Investment Companies
(Cost $13,893,281)     13,965,671  
         
                 
                 
 
 Preferred Stock 4.2% of net assets
 
Brazil 4.0%
                 
 
Banks 1.4%
Banco Bradesco S.A.
    715,145       13,052,902  
Itausa - Investimentos Itau S.A.
    1,127,720       5,493,575  
                 
              18,546,477  
                 
 
Energy 1.2%
Petroleo Brasileiro S.A.
    1,491,200       15,561,449  
                 
 
Food & Staples Retailing 0.2%
Cia Brasileira de Distribuicao
    46,600       2,372,538  
                 
 
Materials 0.5%
Bradespar S.A.
    93,200       851,798  
Braskem S.A., A Shares
    93,200       635,204  
Gerdau S.A.
    297,308       1,722,022  
Klabin S.A.
    932,000       941,351  
Metalurgica Gerdau S.A.
    93,200       660,612  
Suzano Papel e Celulose S.A., A Shares
    93,200       371,125  
Usinas Siderurgicas de Minas Gerais S.A., A Shares *
    186,400       673,108  
                 
              5,855,220  
                 
 
Retailing 0.1%
Lojas Americanas S.A.
    174,750       1,237,085  
                 
 
Telecommunication Services 0.2%
Oi S.A.
    1,317,194       853,582  
Telefonica Brasil S.A.
    76,716       1,640,571  
                 
              2,494,153  
                 
 
Utilities 0.4%
AES Tiete S.A.
    46,600       419,026  
Centrais Eletricas Brasileiras S.A., B Shares
    101,423       559,797  
Companhia Energetica de Minas Gerais
    283,539       2,427,927  
Companhia Energetica de Sao Paulo, B Shares
    61,336       868,690  
Companhia Paranaense de Energia - Copel, B Shares
    46,600       825,973  
                 
              5,101,413  
                 
              51,168,335  
 
Chile 0.0%
                 
 
Food, Beverage & Tobacco 0.0%
Embotelladora Andina S.A., B Shares
    104,850       343,697  
 
Colombia 0.2%
                 
 
Banks 0.0%
Grupo Aval Acciones y Valores
    619,314       463,247  
                 
 
Diversified Financials 0.1%
Grupo de Inversiones Suramericana S.A.
    26,096       593,075  
 
 
 
50 See financial notes

Table of Contents

 
 Schwab Emerging Markets Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
                 
 
Materials 0.1%
Grupo Argos S.A.
    53,590       653,656  
                 
              1,709,978  
                 
Total Preferred Stock
(Cost $45,754,735)     53,222,010  
         
                 
                 
 
 Warrants 0.0% of net assets
 
Thailand 0.0%
                 
 
Materials 0.0%
Indorama Ventures PCL NVDR *(c)(d)
    54,439       —  
                 
Total Warrants
(Cost $—)     —  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
Rate, Maturity Date   ($)   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
                 
 
U.S. Treasury Bills
0.01%, 09/18/14 (f)(g)
    23,000       23,000  
0.02%, 09/18/14 (f)(g)
    35,000       34,999  
                 
Total Short-Term Investments
(Cost $57,999)     57,999  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,166,632,356 and the unrealized appreciation and depreciation were $186,323,546 and ($70,016,594), respectively, with a net unrealized appreciation of $116,306,952.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $11,724,865.
(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 $154,564 or 0.0% of net assets.
(c) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(d) Illiquid security. At the period end, the value of these amounted to $394,180 or 0.0% of net assets.
(e) The rate shown is the 7-day yield.
(f) The rate shown is the purchase yield.
(g) All or a portion of this security is held as collateral for open futures contracts.
 
     
ADR —
  American Depositary Receipt
ETF —
  Exchange Traded Fund
GDR —
  Global Depositary Receipt
NVDR —
  Non-Voting Depositary Receipt
Reg’d —
  Registered
 
In addition to the above, the fund held the following at 8/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Depreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
MSCI EAFE, e-mini, Long, expires 09/19/14
    15       814,350       (1,629 )
 
 
 
See financial notes 51

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .8%   Common Stock     2,788,904,595       3,644,576,745  
  0 .5%   Other Investment Companies     18,910,547       18,910,547  
  0 .0%   Rights     21,491       21,491  
  0 .0%   Short-Term Investments     174,998       174,998  
 
 
  100 .3%   Total Investments     2,808,011,631       3,663,683,781  
  (0 .3)%   Other Assets and
Liabilities, Net 		            (9,646,983 )
 
 
  100 .0%   Net Assets             3,654,036,798  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.8% of net assets
 
Automobiles & Components 1.3%
American Axle & Manufacturing Holdings, Inc. *
    10,799       195,462  
Autoliv, Inc.
    15,430       1,599,937  
BorgWarner, Inc.
    38,974       2,423,793  
Cooper Tire & Rubber Co.
    9,582       295,413  
Dana Holding Corp.
    25,483       591,970  
Delphi Automotive plc
    47,197       3,283,967  
Dorman Products, Inc. *
    5,996       268,801  
Drew Industries, Inc.
    3,170       140,716  
Federal-Mogul Holdings Corp. *
    13,861       236,607  
Ford Motor Co.
    654,431       11,393,644  
General Motors Co.
    214,622       7,468,846  
Gentex Corp.
    23,085       682,162  
Gentherm, Inc. *
    5,749       280,839  
Harley-Davidson, Inc.
    36,170       2,298,965  
Johnson Controls, Inc.
    112,578       5,494,932  
Lear Corp.
    13,160       1,330,871  
Standard Motor Products, Inc.
    3,966       149,161  
Tenneco, Inc. *
    9,494       608,376  
Tesla Motors, Inc. *
    13,540       3,651,738  
The Goodyear Tire & Rubber Co.
    45,416       1,179,453  
Thor Industries, Inc.
    7,495       402,556  
TRW Automotive Holdings Corp. *
    20,399       1,964,220  
Visteon Corp. *
    7,989       808,407  
                 
              46,750,836  
 
Banks 5.8%
Associated Banc-Corp.
    31,799       578,106  
Astoria Financial Corp.
    13,520       176,706  
BancFirst Corp.
    3,013       191,747  
BancorpSouth, Inc.
    15,260       323,054  
Bank of America Corp.
    1,741,956       28,028,072  
Bank of Hawaii Corp.
    7,495       435,085  
Bank of the Ozarks, Inc.
    11,992       383,144  
BankUnited, Inc.
    17,014       536,792  
Banner Corp.
    6,852       269,832  
BB&T Corp.
    120,598       4,501,923  
BBCN Bancorp, Inc.
    10,805       157,753  
Beneficial Mutual Bancorp, Inc. *
    13,662       187,579  
Berkshire Hills Bancorp, Inc.
    3,304       81,378  
BofI Holding, Inc. *
    2,385       183,621  
BOK Financial Corp.
    3,592       242,029  
Boston Private Financial Holdings, Inc.
    12,521       152,005  
Brookline Bancorp, Inc.
    13,521       123,717  
Capital Bank Financial Corp., Class A *
    9,310       227,816  
Capitol Federal Financial, Inc.
    26,095       322,273  
Cathay General Bancorp
    12,080       314,563  
Central Pacific Financial Corp.
    6,540       114,973  
Chemical Financial Corp.
    4,655       132,062  
CIT Group, Inc.
    34,477       1,653,517  
Citigroup, Inc.
    504,812       26,073,540  
City Holding Co.
    2,998       128,075  
City National Corp.
    7,495       568,721  
Columbia Banking System, Inc.
    10,493       272,923  
Comerica, Inc.
    31,673       1,594,419  
Commerce Bancshares, Inc.
    14,630       674,882  
Community Bank System, Inc.
    5,996       211,899  
Community Trust Bancorp, Inc.
    2,029       72,070  
Cullen/Frost Bankers, Inc.
    9,494       746,228  
CVB Financial Corp.
    15,204       236,270  
Eagle Bancorp, Inc. *
    5,012       168,052  
East West Bancorp, Inc.
    25,483       887,828  
EverBank Financial Corp.
    16,877       318,638  
F.N.B. Corp.
    32,707       404,259  
Fifth Third Bancorp
    144,848       2,955,623  
First BanCorp *
    24,216       126,165  
First Citizens BancShares, Inc., Class A
    947       217,611  
First Commonwealth Financial Corp.
    19,662       174,205  
First Financial Bancorp
    9,050       150,321  
First Financial Bankshares, Inc. (a)
    9,382       275,737  
First Horizon National Corp.
    40,749       495,508  
First Interstate BancSystem, Inc.
    6,340       168,137  
First Merchants Corp.
    8,020       163,688  
First Midwest Bancorp, Inc.
    14,990       252,582  
First Niagara Financial Group, Inc.
    57,406       499,432  
First Republic Bank
    20,117       983,721  
FirstMerit Corp.
    26,262       452,626  
Flagstar Bancorp, Inc. *
    13,913       242,504  
Fulton Financial Corp.
    36,296       418,674  
Glacier Bancorp, Inc.
    11,128       302,904  
Hancock Holding Co.
    13,491       448,441  
Hanmi Financial Corp.
    6,852       140,809  
Home BancShares, Inc.
    11,992       356,762  
Home Loan Servicing Solutions Ltd.
    14,167       310,257  
Hudson City Bancorp, Inc.
    79,447       784,142  
Huntington Bancshares, Inc.
    140,906       1,387,220  
Iberiabank Corp.
    6,501       424,190  
 
 
 
See financial notes 1

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Independent Bank Corp.
    3,270       120,369  
International Bancshares Corp.
    9,150       241,194  
Investors Bancorp, Inc.
    56,602       600,547  
JPMorgan Chase & Co.
    627,750       37,319,737  
Kearny Financial Corp. *
    3,011       47,122  
KeyCorp
    160,841       2,189,046  
M&T Bank Corp.
    21,519       2,660,394  
MB Financial, Inc.
    9,035       255,600  
MGIC Investment Corp. *
    56,634       477,425  
National Bank Holdings Corp., Class A
    11,346       230,551  
National Penn Bancshares, Inc.
    20,065       200,650  
Nationstar Mortgage Holdings, Inc. *(a)
    4,655       162,925  
NBT Bancorp, Inc.
    10,765       258,468  
New York Community Bancorp, Inc.
    72,258       1,152,515  
Northfield Bancorp, Inc.
    9,285       121,726  
Northwest Bancshares, Inc.
    22,485       283,536  
Ocwen Financial Corp. *
    20,986       586,349  
OFG Bancorp
    15,870       252,333  
Old National Bancorp
    16,577       216,993  
Oritani Financial Corp.
    10,493       157,395  
PacWest Bancorp
    20,213       847,733  
Park National Corp.
    1,773       138,010  
People’s United Financial, Inc.
    56,962       851,582  
Pinnacle Financial Partners, Inc.
    4,955       177,686  
Popular, Inc. *
    16,499       510,809  
PrivateBancorp, Inc.
    13,491       398,119  
Prosperity Bancshares, Inc.
    9,315       562,626  
Provident Financial Services, Inc.
    11,992       203,984  
Radian Group, Inc.
    35,986       523,956  
Regions Financial Corp.
    246,422       2,501,183  
Renasant Corp.
    3,504       101,371  
S&T Bancorp, Inc.
    4,556       113,627  
Sandy Spring Bancorp, Inc.
    3,404       82,275  
Signature Bank *
    8,395       994,472  
South State Corp.
    4,094       239,745  
State Bank Financial Corp.
    4,756       79,711  
Sterling Bancorp
    13,116       166,180  
SunTrust Banks, Inc.
    93,846       3,573,656  
Susquehanna Bancshares, Inc.
    30,130       310,942  
SVB Financial Group *
    8,395       934,531  
Synovus Financial Corp.
    22,986       555,112  
TCF Financial Corp.
    30,228       477,602  
Texas Capital Bancshares, Inc. *
    6,244       337,051  
TFS Financial Corp. *
    20,986       303,038  
The PNC Financial Services Group, Inc.
    89,095       7,550,801  
TrustCo Bank Corp.
    15,120       106,142  
Trustmark Corp.
    11,992       284,630  
U.S. Bancorp
    301,847       12,762,091  
UMB Financial Corp.
    5,996       346,269  
Umpqua Holdings Corp.
    34,021       594,347  
Union Bankshares Corp.
    7,750       183,133  
United Bankshares, Inc.
    10,876       358,364  
United Community Banks, Inc.
    7,815       132,542  
Valley National Bancorp
    39,131       391,310  
ViewPoint Financial Group, Inc.
    6,140       159,947  
Washington Federal, Inc.
    17,988       391,239  
Webster Financial Corp.
    15,329       452,206  
Wells Fargo & Co.
    793,453       40,815,222  
WesBanco, Inc.
    3,604       111,904  
Westamerica Bancorp
    4,497       217,520  
Western Alliance Bancorp *
    15,104       356,605  
Wintrust Financial Corp.
    7,495       349,042  
Zions Bancorp
    35,145       1,024,125  
                 
              212,514,125  
 
Capital Goods 7.9%
3M Co.
    103,771       14,943,024  
A.O. Smith Corp.
    11,992       588,567  
AAON, Inc.
    7,417       138,401  
AAR Corp.
    5,996       166,089  
Actuant Corp., Class A
    13,491       455,051  
Acuity Brands, Inc.
    7,495       928,481  
AECOM Technology Corp. *
    18,241       690,239  
Aegion Corp. *
    6,216       153,287  
AGCO Corp.
    15,390       751,648  
Air Lease Corp.
    14,600       553,340  
Aircastle Ltd.
    13,491       257,948  
Albany International Corp., Class A
    4,795       180,148  
Allegion plc
    15,522       798,296  
Alliant Techsystems, Inc.
    4,897       617,022  
Allison Transmission Holdings, Inc.
    27,658       848,547  
Altra Industrial Motion Corp.
    3,604       119,869  
American Railcar Industries, Inc. (a)
    1,852       147,604  
AMETEK, Inc.
    40,473       2,142,641  
Apogee Enterprises, Inc.
    4,556       166,340  
Applied Industrial Technologies, Inc.
    7,495       365,081  
Armstrong World Industries, Inc. *
    7,662       441,944  
Astec Industries, Inc.
    3,134       130,186  
Astronics Corp. *
    2,377       149,133  
AZZ, Inc.
    3,370       156,166  
B/E Aerospace, Inc. *
    16,024       1,357,874  
Barnes Group, Inc.
    7,679       262,929  
Beacon Roofing Supply, Inc. *
    7,495       213,757  
Blount International, Inc. *
    7,495       119,770  
Briggs & Stratton Corp.
    7,736       155,803  
Builders FirstSource, Inc. *
    15,220       105,018  
Carlisle Cos., Inc.
    10,493       869,870  
Caterpillar, Inc.
    103,143       11,249,807  
Chart Industries, Inc. *
    4,518       302,209  
Chicago Bridge & Iron Co. N.V.
    17,093       1,084,038  
CIRCOR International, Inc.
    2,998       213,428  
CLARCOR, Inc.
    8,994       568,511  
Colfax Corp. *
    15,857       1,008,664  
Comfort Systems USA, Inc.
    6,308       95,882  
Crane Co.
    8,994       625,892  
Cubic Corp.
    3,769       168,248  
Cummins, Inc.
    28,840       4,184,972  
Curtiss-Wright Corp.
    7,495       538,441  
Danaher Corp.
    99,354       7,611,510  
Deere & Co.
    60,940       5,124,445  
DigitalGlobe, Inc. *
    11,142       338,383  
Donaldson Co., Inc.
    23,984       1,003,970  
Dover Corp.
    27,710       2,434,878  
DXP Enterprises, Inc. *
    1,552       124,346  
Dycom Industries, Inc. *
    4,978       155,363  
Eaton Corp. plc
    77,985       5,444,133  
EMCOR Group, Inc.
    10,493       453,298  
 
 
 
2 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Emerson Electric Co.
    116,398       7,451,800  
Encore Wire Corp.
    3,469       147,259  
EnerSys
    7,689       494,326  
EnPro Industries, Inc. *
    3,150       213,885  
ESCO Technologies, Inc.
    5,996       215,856  
Esterline Technologies Corp. *
    5,996       702,911  
Exelis, Inc.
    29,980       515,356  
Fastenal Co.
    43,912       1,988,335  
Federal Signal Corp.
    10,539       155,134  
Flowserve Corp.
    24,067       1,826,445  
Fluor Corp.
    27,343       2,020,374  
Fortune Brands Home & Security, Inc.
    25,983       1,122,725  
Foster Wheeler AG
    17,191       561,114  
Franklin Electric Co., Inc.
    6,090       231,176  
GATX Corp.
    8,994       596,032  
GenCorp, Inc. *
    9,312       171,620  
Generac Holdings, Inc. *
    10,787       501,811  
General Cable Corp.
    7,620       163,601  
General Dynamics Corp.
    54,223       6,682,985  
General Electric Co.
    1,657,205       43,054,186  
Graco, Inc.
    10,493       806,492  
GrafTech International Ltd. *
    27,722       242,013  
Granite Construction, Inc.
    5,138       181,217  
Great Lakes Dredge & Dock Corp. *
    9,412       71,719  
Griffon Corp.
    7,560       94,273  
H&E Equipment Services, Inc.
    6,094       249,306  
Harsco Corp.
    13,491       326,482  
HD Supply Holdings, Inc. *
    15,992       444,098  
HEICO Corp.
    9,836       509,603  
Hexcel Corp. *
    15,446       636,221  
Hillenbrand, Inc.
    11,992       401,012  
Honeywell International, Inc.
    129,738       12,354,950  
Hubbell, Inc., Class B
    8,994       1,087,375  
Huntington Ingalls Industries, Inc.
    8,994       918,377  
Hyster-Yale Materials Handling, Inc.
    2,157       166,283  
IDEX Corp.
    13,491       1,037,998  
Illinois Tool Works, Inc.
    64,472       5,687,075  
Ingersoll-Rand plc
    42,649       2,567,470  
ITT Corp.
    14,990       717,421  
Jacobs Engineering Group, Inc. *
    20,986       1,131,355  
John Bean Technologies Corp.
    4,556       132,352  
Joy Global, Inc.
    18,041       1,139,289  
Kaman Corp.
    4,497       182,848  
KBR, Inc.
    24,078       530,198  
Kennametal, Inc.
    13,491       604,532  
L-3 Communications Holdings, Inc.
    14,519       1,596,364  
Lennox International, Inc.
    8,994       753,337  
Lincoln Electric Holdings, Inc.
    14,990       1,065,789  
Lindsay Corp. (a)
    1,720       133,782  
Lockheed Martin Corp.
    44,696       7,777,104  
Masco Corp.
    62,958       1,477,624  
Masonite International Corp. *
    2,577       147,353  
MasTec, Inc. *
    9,573       291,977  
Meritor, Inc. *
    17,013       231,887  
Moog, Inc., Class A *
    8,994       637,675  
MRC Global, Inc. *
    16,649       413,228  
MSC Industrial Direct Co., Inc., Class A
    7,495       675,599  
Mueller Industries, Inc.
    12,162       355,617  
Mueller Water Products, Inc., Class A
    25,484       235,217  
National Presto Industries, Inc. (a)
    500       32,745  
Navistar International Corp. *
    12,519       472,091  
Nordson Corp.
    8,994       729,054  
Nortek, Inc. *
    1,952       162,641  
Northrop Grumman Corp.
    35,692       4,540,736  
NOW, Inc. *
    17,555       579,842  
Orbital Sciences Corp. *
    8,994       240,769  
Oshkosh Corp.
    14,990       744,703  
Owens Corning
    18,263       657,468  
PACCAR, Inc.
    59,960       3,766,088  
Pall Corp.
    19,487       1,644,118  
Parker-Hannifin Corp.
    25,483       2,943,286  
Pentair plc
    32,013       2,179,125  
Polypore International, Inc. *
    7,548       338,377  
Powell Industries, Inc.
    1,652       87,044  
Precision Castparts Corp.
    23,984       5,853,535  
Primoris Services Corp.
    7,893       229,213  
Proto Labs, Inc. *
    3,291       247,615  
Quanex Building Products Corp.
    6,040       109,082  
Quanta Services, Inc. *
    34,730       1,262,088  
Raven Industries, Inc.
    5,996       159,853  
Raytheon Co.
    51,828       4,993,110  
RBC Bearings, Inc.
    4,497       278,005  
Regal-Beloit Corp.
    7,495       532,670  
Rexnord Corp. *
    12,392       361,970  
Rockwell Automation, Inc.
    23,984       2,796,774  
Rockwell Collins, Inc.
    22,879       1,761,225  
Roper Industries, Inc.
    16,489       2,482,584  
Rush Enterprises, Inc., Class A *
    4,886       179,170  
Sensata Technologies Holding N.V. *
    27,723       1,363,140  
Simpson Manufacturing Co., Inc.
    6,530       211,050  
Snap-on, Inc.
    9,294       1,161,285  
SolarCity Corp. *
    8,896       610,977  
Spirit AeroSystems Holdings, Inc., Class A *
    18,475       708,516  
SPX Corp.
    6,930       721,067  
Standex International Corp.
    1,499       111,870  
Stanley Black & Decker, Inc.
    25,711       2,352,557  
Sun Hydraulics Corp.
    3,469       138,864  
TAL International Group, Inc. *
    4,509       199,298  
Taser International, Inc. *
    8,385       131,393  
Teledyne Technologies, Inc. *
    6,043       586,594  
Tennant Co.
    4,497       313,396  
Terex Corp.
    19,487       729,009  
Textainer Group Holdings Ltd. (a)
    6,121       215,949  
Textron, Inc.
    46,469       1,765,822  
The Babcock & Wilcox Co.
    19,487       566,097  
The Boeing Co.
    110,926       14,065,417  
The Gorman-Rupp Co.
    2,501       77,606  
The Greenbrier Cos., Inc.
    3,504       250,606  
The Manitowoc Co., Inc.
    25,483       749,710  
The Middleby Corp. *
    9,093       784,089  
The Timken Co.
    13,491       611,007  
The Toro Co.
    9,288       571,491  
Thermon Group Holdings, Inc. *
    3,004       81,559  
Titan International, Inc.
    9,098       131,921  
TransDigm Group, Inc.
    8,024       1,508,432  
Trex Co., Inc. *
    3,704       139,270  
TriMas Corp. *
    6,615       209,696  
 
 
 
See financial notes 3

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Trinity Industries, Inc.
    26,982       1,305,389  
Triumph Group, Inc.
    7,797       540,878  
Tutor Perini Corp. *
    6,604       197,328  
United Rentals, Inc. *
    16,927       1,991,462  
United Technologies Corp.
    139,731       15,088,153  
Universal Forest Products, Inc.
    3,070       145,365  
URS Corp.
    13,491       817,285  
USG Corp. *
    13,967       404,624  
Valmont Industries, Inc. (a)
    4,145       583,409  
Veritiv Corp. *(a)
    1,366       60,814  
W.W. Grainger, Inc.
    9,867       2,429,255  
Wabash National Corp. *
    10,764       152,203  
WABCO Holdings, Inc. *
    10,493       1,082,878  
Wabtec Corp.
    15,190       1,266,238  
Watsco, Inc.
    4,497       415,928  
Watts Water Technologies, Inc., Class A
    4,591       290,564  
WESCO International, Inc. *
    7,495       629,505  
Woodward, Inc.
    8,994       469,757  
Xylem, Inc.
    29,980       1,117,055  
                 
              288,954,693  
 
Commercial & Professional Services 1.1%
ABM Industries, Inc.
    6,552       174,283  
ACCO Brands Corp. *
    19,196       148,385  
Brady Corp., Class A
    7,495       199,517  
Cintas Corp.
    19,487       1,288,870  
Civeo Corp.
    17,988       457,075  
Clean Harbors, Inc. *
    8,994       544,497  
Copart, Inc. *
    18,428       634,476  
Covanta Holding Corp.
    22,485       471,960  
Deluxe Corp.
    8,994       535,593  
Equifax, Inc.
    20,986       1,652,857  
Exponent, Inc.
    1,785       130,412  
FTI Consulting, Inc. *
    6,468       239,963  
G&K Services, Inc., Class A
    4,497       251,337  
Healthcare Services Group, Inc.
    11,992       327,741  
Herman Miller, Inc.
    9,250       274,910  
HNI Corp.
    8,994       340,963  
Huron Consulting Group, Inc. *
    4,398       265,991  
ICF International, Inc. *
    3,204       108,231  
IHS, Inc., Class A *
    9,813       1,398,058  
Insperity, Inc.
    4,506       132,972  
Interface, Inc.
    9,229       157,170  
Iron Mountain, Inc.
    27,451       987,687  
KAR Auction Services, Inc.
    23,463       707,644  
Kelly Services, Inc., Class A
    4,956       82,815  
Kforce, Inc.
    6,108       122,588  
Kimball International, Inc., Class B
    6,008       95,407  
Knoll, Inc.
    7,672       140,321  
Korn/Ferry International *
    7,565       228,841  
Manpowergroup, Inc.
    13,491       1,046,632  
McGrath RentCorp
    3,400       125,800  
Mistras Group, Inc. *
    3,204       68,758  
Mobile Mini, Inc.
    5,996       234,863  
MSA Safety, Inc.
    4,812       266,392  
Navigant Consulting, Inc. *
    9,046       147,359  
Nielsen N.V. (a)
    48,749       2,290,716  
On Assignment, Inc. *
    8,620       254,807  
Performant Financial Corp. *
    6,308       60,683  
Pitney Bowes, Inc.
    34,477       932,948  
Quad/Graphics, Inc.
    8,340       186,899  
R.R. Donnelley & Sons Co.
    29,395       519,410  
Republic Services, Inc.
    46,510       1,829,238  
Robert Half International, Inc.
    25,483       1,279,501  
Rollins, Inc.
    12,148       361,403  
RPX Corp. *
    6,540       99,343  
Steelcase, Inc., Class A
    12,438       195,277  
Stericycle, Inc. *
    14,990       1,781,562  
Team, Inc. *
    4,497       179,475  
Tetra Tech, Inc.
    9,594       244,647  
The ADT Corp.
    31,044       1,144,282  
The Advisory Board Co. *
    5,996       297,402  
The Brink’s Co.
    8,994       246,256  
The Corporate Executive Board Co.
    4,887       322,151  
The Dun & Bradstreet Corp.
    6,590       773,534  
Towers Watson & Co., Class A
    10,655       1,168,108  
TrueBlue, Inc. *
    8,994       244,097  
Tyco International Ltd.
    76,449       3,411,154  
UniFirst Corp.
    2,998       290,656  
United Stationers, Inc.
    8,994       365,606  
US Ecology, Inc.
    4,160       177,798  
Verisk Analytics, Inc., Class A *
    23,984       1,539,533  
Viad Corp.
    3,204       70,296  
WageWorks, Inc. *
    4,987       205,764  
Waste Connections, Inc.
    19,917       977,128  
Waste Management, Inc.
    71,952       3,379,585  
West Corp.
    3,473       103,009  
                 
              38,922,636  
 
Consumer Durables & Apparel 1.5%
Arctic Cat, Inc.
    2,998       110,986  
Beazer Homes USA, Inc. *
    8,160       153,816  
Brunswick Corp.
    14,990       644,570  
Callaway Golf Co.
    9,052       68,886  
Carter’s, Inc.
    9,608       795,350  
Cavco Industries, Inc. *
    1,643       117,359  
Coach, Inc.
    45,740       1,684,604  
Columbia Sportswear Co.
    2,998       228,328  
Crocs, Inc. *
    16,540       255,543  
D.R. Horton, Inc.
    53,022       1,149,517  
Deckers Outdoor Corp. *
    5,197       479,371  
Ethan Allen Interiors, Inc.
    3,570       90,071  
Fossil Group, Inc. *
    8,994       911,002  
G-III Apparel Group Ltd. *
    1,952       161,118  
Garmin Ltd.
    19,487       1,058,729  
Hanesbrands, Inc.
    16,489       1,693,091  
Harman International Industries, Inc.
    11,992       1,380,039  
Hasbro, Inc.
    19,487       1,026,088  
Helen of Troy Ltd. *
    6,110       355,724  
Hovnanian Enterprises, Inc., Class A *(a)
    15,420       64,764  
Iconix Brand Group, Inc. *
    9,236       384,495  
iRobot Corp. *(a)
    3,609       117,040  
Jarden Corp. *
    18,672       1,116,399  
Kate Spade & Co. *
    18,229       589,526  
KB Home
    12,286       218,077  
La-Z-Boy, Inc.
    9,528       203,328  
LeapFrog Enterprises, Inc. *
    8,079       52,352  
Leggett & Platt, Inc.
    22,826       800,964  
 
 
 
4 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Lennar Corp., Class A
    26,083       1,021,932  
Libbey, Inc. *
    4,929       136,040  
Lululemon Athletica, Inc. *
    15,651       624,944  
M.D.C Holdings, Inc.
    7,495       217,430  
Mattel, Inc.
    59,125       2,039,221  
Meritage Homes Corp. *
    4,806       198,344  
Michael Kors Holdings Ltd. *
    28,873       2,313,305  
Mohawk Industries, Inc. *
    10,657       1,556,135  
Movado Group, Inc.
    3,270       121,415  
NACCO Industries, Inc., Class A
    1,499       77,948  
Newell Rubbermaid, Inc.
    47,968       1,607,887  
NIKE, Inc., Class B
    122,451       9,618,526  
NVR, Inc. *
    648       760,227  
Oxford Industries, Inc.
    3,000       183,990  
Polaris Industries, Inc.
    10,607       1,542,046  
PulteGroup, Inc.
    56,962       1,094,810  
PVH Corp.
    13,874       1,619,651  
Ralph Lauren Corp.
    10,493       1,775,416  
Skechers U.S.A., Inc., Class A *
    6,240       364,229  
Smith & Wesson Holding Corp. *(a)
    7,495       82,970  
Standard Pacific Corp. *
    27,019       226,149  
Steven Madden Ltd. *
    11,056       375,793  
Sturm Ruger & Co., Inc. (a)
    3,051       153,801  
Taylor Morrison Home Corp., Class A *
    5,287       104,894  
Tempur Sealy International, Inc. *
    10,493       614,050  
The Ryland Group, Inc.
    6,466       239,889  
Toll Brothers, Inc. *
    25,483       906,940  
TRI Pointe Homes, Inc. *
    20,364       301,387  
Tumi Holdings, Inc. *
    10,571       237,636  
Tupperware Brands Corp.
    8,223       602,417  
Under Armour, Inc., Class A *
    26,548       1,814,821  
Universal Electronics, Inc. *
    1,842       100,702  
Vera Bradley, Inc. *
    3,866       79,330  
VF Corp.
    58,216       3,732,810  
Whirlpool Corp.
    12,392       1,896,224  
Wolverine World Wide, Inc.
    17,988       477,761  
                 
              54,732,207  
 
Consumer Services 2.1%
American Public Education, Inc. *
    3,000       91,080  
Apollo Education Group, Inc. *
    16,164       448,874  
Aramark
    6,160       159,544  
Ascent Capital Group, Inc., Class A *
    1,885       117,643  
Bally Technologies, Inc. *
    6,390       506,663  
Belmond Ltd., Class A *
    14,990       191,572  
Bloomin’ Brands, Inc. *
    12,344       205,404  
Bob Evans Farms, Inc.
    4,632       201,121  
Boyd Gaming Corp. *
    8,242       87,777  
Bright Horizons Family Solutions, Inc. *
    6,716       273,140  
Brinker International, Inc.
    12,487       610,614  
Buffalo Wild Wings, Inc. *
    3,012       445,023  
Burger King Worldwide, Inc.
    10,062       322,386  
Caesars Entertainment Corp. *(a)
    9,699       130,355  
Capella Education Co.
    1,883       122,602  
Carnival Corp.
    73,540       2,785,695  
Chipotle Mexican Grill, Inc. *
    5,033       3,415,645  
Choice Hotels International, Inc.
    7,115       385,348  
Churchill Downs, Inc.
    1,836       172,896  
Cracker Barrel Old Country Store, Inc.
    4,497       451,544  
Darden Restaurants, Inc.
    22,485       1,063,990  
Denny’s Corp. *
    15,220       103,953  
DeVry Education Group, Inc.
    9,574       411,012  
DineEquity, Inc.
    3,533       293,946  
Domino’s Pizza, Inc.
    9,144       689,915  
Dunkin’ Brands Group, Inc.
    17,190       748,453  
Extended Stay America, Inc.
    9,024       215,313  
Fiesta Restaurant Group, Inc. *
    3,640       178,688  
Graham Holdings Co., Class B
    612       439,906  
Grand Canyon Education, Inc. *
    7,699       332,905  
H&R Block, Inc.
    48,138       1,614,067  
Hilton Worldwide Holdings, Inc. *
    50,306       1,273,748  
Hyatt Hotels Corp., Class A *
    9,100       555,919  
International Game Technology
    43,706       736,883  
International Speedway Corp., Class A
    4,639       155,360  
Interval Leisure Group, Inc.
    7,688       166,215  
ITT Educational Services, Inc. *(a)
    4,902       41,324  
Jack in the Box, Inc.
    6,552       389,516  
K12, Inc. *
    5,996       112,905  
Krispy Kreme Doughnuts, Inc. *
    10,664       181,395  
Las Vegas Sands Corp.
    63,531       4,225,447  
Life Time Fitness, Inc. *
    6,241       287,710  
LifeLock, Inc. *
    15,160       224,671  
Marriott International, Inc., Class A
    36,748       2,550,311  
Marriott Vacations Worldwide Corp. *
    4,699       280,013  
Matthews International Corp., Class A
    5,996       276,715  
McDonald’s Corp.
    163,666       15,338,778  
MGM Resorts International *
    60,418       1,478,428  
Multimedia Games Holding Co., Inc. *
    6,812       189,442  
Norwegian Cruise Line Holdings Ltd. *
    15,873       528,730  
Panera Bread Co., Class A *
    4,611       691,373  
Papa John’s International, Inc.
    6,252       247,579  
Penn National Gaming, Inc. *
    10,693       120,724  
Pinnacle Entertainment, Inc. *
    9,593       239,729  
Popeyes Louisiana Kitchen, Inc. *
    4,497       180,330  
Red Robin Gourmet Burgers, Inc. *
    3,906       207,409  
Regis Corp.
    9,250       139,767  
Royal Caribbean Cruises Ltd.
    26,455       1,686,771  
SeaWorld Entertainment, Inc.
    13,520       281,081  
Service Corp. International
    34,912       773,999  
Six Flags Entertainment Corp.
    17,994       656,421  
Sonic Corp. *
    10,493       221,507  
Sotheby’s
    10,589       432,137  
Starbucks Corp.
    124,884       9,717,224  
Starwood Hotels & Resorts Worldwide, Inc.
    31,879       2,695,051  
Texas Roadhouse, Inc.
    10,493       279,009  
The Cheesecake Factory, Inc.
    7,937       356,768  
The Wendy’s Co.
    61,459       500,891  
Vail Resorts, Inc.
    5,996       476,622  
Wyndham Worldwide Corp.
    22,879       1,851,826  
Wynn Resorts Ltd.
    13,491       2,602,144  
Yum! Brands, Inc.
    74,997       5,432,033  
                 
              76,000,979  
 
 
 
See financial notes 5

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
Diversified Financials 4.6%
Actua Corp. *
    6,808       118,119  
Affiliated Managers Group, Inc. *
    8,994       1,899,083  
Ally Financial, Inc. *
    12,480       307,008  
American Express Co.
    151,021       13,523,931  
Ameriprise Financial, Inc.
    31,548       3,967,476  
Artisan Partners Asset Management, Inc., Class A
    5,460       302,921  
Berkshire Hathaway, Inc., Class B *
    297,282       40,801,954  
BGC Partners, Inc., Class A
    20,005       151,438  
BlackRock, Inc.
    20,632       6,819,495  
Capital One Financial Corp.
    95,936       7,872,508  
Cash America International, Inc.
    4,640       207,130  
CBOE Holdings, Inc.
    16,531       876,556  
CME Group, Inc.
    52,545       4,022,320  
Cohen & Steers, Inc. (a)
    4,497       196,249  
Credit Acceptance Corp. *
    1,499       184,737  
Discover Financial Services
    77,023       4,803,924  
E*TRADE Financial Corp. *
    46,917       1,044,372  
Eaton Vance Corp.
    19,487       763,111  
Encore Capital Group, Inc. *
    3,270       145,155  
Evercore Partners, Inc., Class A
    6,966       356,868  
Federated Investors, Inc., Class B
    17,988       552,052  
Financial Engines, Inc.
    7,495       268,846  
First Cash Financial Services, Inc. *
    4,512       260,613  
FNFV Group *
    15,024       225,060  
Franklin Resources, Inc.
    67,917       3,838,669  
GAMCO Investors, Inc., Class A
    1,971       154,349  
Green Dot Corp., Class A *
    6,128       115,758  
Greenhill & Co., Inc.
    3,592       176,080  
HFF, Inc., Class A
    7,495       224,850  
Interactive Brokers Group, Inc., Class A
    6,587       154,399  
Intercontinental Exchange, Inc.
    18,639       3,522,771  
Invesco Ltd.
    71,521       2,920,918  
Investment Technology Group, Inc. *
    6,540       111,376  
Janus Capital Group, Inc.
    29,980       364,257  
KCG Holdings, Inc., Class A *
    15,942       186,521  
Legg Mason, Inc.
    17,482       862,212  
Leucadia National Corp.
    48,465       1,208,232  
LPL Financial Holdings, Inc.
    13,155       640,517  
MarketAxess Holdings, Inc.
    4,866       286,705  
McGraw Hill Financial, Inc.
    46,469       3,770,030  
Moody’s Corp.
    31,673       2,963,643  
Morgan Stanley
    231,030       7,926,639  
MSCI, Inc. *
    20,986       968,294  
Navient Corp.
    72,776       1,305,601  
Nelnet, Inc., Class A
    4,573       201,075  
NewStar Financial, Inc. *
    7,630       87,974  
Northern Trust Corp.
    35,976       2,494,936  
NorthStar Asset Management Group, Inc. *
    30,329       560,783  
PHH Corp. *
    9,182       220,001  
PICO Holdings, Inc. *
    3,304       73,018  
Piper Jaffray Cos. *
    4,902       261,571  
Portfolio Recovery Associates, Inc. *
    8,994       511,129  
Raymond James Financial, Inc.
    20,151       1,101,051  
Santander Consumer USA Holdings, Inc.
    14,732       274,310  
SEI Investments Co.
    21,574       817,547  
SLM Corp.
    72,776       644,795  
Springleaf Holdings, Inc. *
    5,054       168,197  
State Street Corp.
    72,636       5,231,971  
Stifel Financial Corp. *
    9,669       462,952  
T. Rowe Price Group, Inc.
    41,972       3,399,522  
TD Ameritrade Holding Corp.
    38,974       1,290,429  
The Bank of New York Mellon Corp.
    192,416       7,538,859  
The Charles Schwab Corp. (b)
    192,519       5,488,717  
The Goldman Sachs Group, Inc.
    69,297       12,411,786  
The NASDAQ OMX Group, Inc.
    19,575       850,925  
Virtus Investment Partners, Inc.
    1,097       245,388  
Voya Financial, Inc.
    23,142       904,621  
Waddell & Reed Financial, Inc., Class A
    13,791       751,609  
Walter Investment Management Corp. *(a)
    4,555       120,024  
WisdomTree Investments, Inc. *
    17,988       212,798  
World Acceptance Corp. *(a)
    2,998       234,863  
                 
              167,933,598  
 
Energy 9.7%
Alpha Natural Resources, Inc. *(a)
    37,160       146,782  
Anadarko Petroleum Corp.
    83,445       9,403,417  
Antero Resources Corp. *
    5,696       329,514  
Apache Corp.
    65,060       6,625,060  
Approach Resources, Inc. *(a)
    6,180       110,498  
Arch Coal, Inc. (a)
    34,042       103,828  
Athlon Energy, Inc. *
    8,618       401,082  
Atwood Oceanics, Inc. *
    8,994       444,394  
Baker Hughes, Inc.
    71,952       4,974,761  
Bill Barrett Corp. *
    7,663       174,487  
Bonanza Creek Energy, Inc. *
    3,304       202,899  
Bristow Group, Inc.
    6,268       457,439  
C&J Energy Services, Inc. *
    6,613       189,727  
Cabot Oil & Gas Corp.
    71,952       2,413,270  
Cameron International Corp. *
    35,512       2,639,607  
CARBO Ceramics, Inc.
    3,145       338,371  
Carrizo Oil & Gas, Inc. *
    5,996       376,069  
Cheniere Energy, Inc. *
    39,558       3,174,925  
Chesapeake Energy Corp.
    85,601       2,328,347  
Chevron Corp.
    315,282       40,813,255  
Cimarex Energy Co.
    14,990       2,175,948  
Cloud Peak Energy, Inc. *
    10,493       164,845  
Cobalt International Energy, Inc. *
    49,814       764,645  
Comstock Resources, Inc.
    7,495       182,728  
Concho Resources, Inc. *
    18,913       2,686,403  
ConocoPhillips
    202,777       16,469,548  
CONSOL Energy, Inc.
    36,599       1,474,208  
Continental Resources, Inc. *
    7,634       1,231,288  
Core Laboratories N.V.
    7,515       1,187,295  
CVR Energy, Inc. (a)
    2,998       148,791  
Delek US Holdings, Inc.
    9,009       315,135  
Denbury Resources, Inc.
    64,506       1,110,793  
Devon Energy Corp.
    62,958       4,748,292  
Diamond Offshore Drilling, Inc. (a)
    10,893       478,638  
Diamondback Energy, Inc. *
    8,173       705,739  
Dresser-Rand Group, Inc. *
    12,141       841,371  
 
 
 
6 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Dril-Quip, Inc. *
    6,943       704,506  
Energen Corp.
    11,992       965,116  
Energy Transfer Partners LP
    2,192       125,922  
Energy XXI Bermuda Ltd.
    17,004       280,566  
Ensco plc, Class A
    37,600       1,898,048  
EOG Resources, Inc.
    89,940       9,882,607  
EP Energy Corp., Class A *
    10,924       211,161  
EQT Corp.
    25,483       2,524,346  
Era Group, Inc. *
    2,998       76,779  
EXCO Resources, Inc. (a)
    28,294       136,660  
Exterran Holdings, Inc.
    10,521       490,594  
Exxon Mobil Corp.
    711,206       70,736,549  
FMC Technologies, Inc. *
    39,162       2,421,778  
Forum Energy Technologies, Inc. *
    8,239       280,538  
Frank’s International N.V.
    5,049       101,737  
Geospace Technologies Corp. *
    1,844       75,825  
Green Plains, Inc.
    5,512       246,331  
Gulfmark Offshore, Inc., Class A
    4,497       180,824  
Gulfport Energy Corp. *
    14,097       824,675  
Halcon Resources Corp. *(a)
    30,016       165,088  
Halliburton Co.
    143,084       9,673,909  
Helix Energy Solutions Group, Inc. *
    16,489       450,480  
Helmerich & Payne, Inc.
    17,689       1,858,229  
Hercules Offshore, Inc. *
    26,049       87,785  
Hess Corp.
    45,071       4,556,678  
HollyFrontier Corp.
    33,477       1,674,854  
Hornbeck Offshore Services, Inc. *
    5,996       261,785  
Key Energy Services, Inc. *
    27,398       172,607  
Kinder Morgan, Inc.
    110,321       4,441,523  
Kodiak Oil & Gas Corp. *
    40,509       659,081  
Kosmos Energy Ltd. *
    15,850       158,817  
Laredo Petroleum, Inc. *
    11,043       261,057  
Magnum Hunter Resources Corp. *
    27,196       187,924  
Marathon Oil Corp.
    118,421       4,936,972  
Marathon Petroleum Corp.
    49,609       4,514,915  
Matador Resources Co. *
    8,600       235,296  
McDermott International, Inc. *
    38,992       280,742  
Murphy Oil Corp.
    31,479       1,966,493  
Nabors Industries Ltd.
    49,467       1,345,997  
National Oilwell Varco, Inc.
    70,453       6,089,253  
Newfield Exploration Co. *
    21,870       980,213  
Newpark Resources, Inc. *
    15,020       185,197  
Noble Corp. plc
    42,215       1,201,439  
Noble Energy, Inc.
    59,960       4,325,514  
Northern Oil & Gas, Inc. *
    9,692       163,310  
Oasis Petroleum, Inc. *
    14,334       705,089  
Occidental Petroleum Corp.
    129,845       13,468,822  
Oceaneering International, Inc.
    17,988       1,251,245  
Oil States International, Inc. *
    8,994       580,563  
ONEOK, Inc.
    34,078       2,392,276  
Paragon Offshore plc *
    14,067       131,104  
Parker Drilling Co. *
    18,569       116,613  
Patterson-UTI Energy, Inc.
    26,982       931,958  
PBF Energy, Inc., Class A
    9,134       259,497  
PDC Energy, Inc. *
    5,996       360,300  
Peabody Energy Corp.
    45,417       721,222  
Phillips 66
    93,478       8,134,456  
Pioneer Natural Resources Co.
    23,292       4,859,876  
QEP Resources, Inc.
    28,645       1,018,903  
Range Resources Corp.
    26,982       2,120,515  
Resolute Energy Corp. *
    13,565       108,927  
Rex Energy Corp. *
    12,080       184,582  
Rice Energy, Inc. *
    7,610       222,821  
Rosetta Resources, Inc. *
    12,006       600,300  
Rowan Cos. plc, Class A
    20,986       636,296  
RPC, Inc.
    10,565       240,565  
RSP Permian, Inc. *
    6,528       186,701  
Sanchez Energy Corp. *
    7,822       259,612  
SandRidge Energy, Inc. *(a)
    57,503       301,316  
Schlumberger Ltd.
    215,890       23,670,180  
SEACOR Holdings, Inc. *
    2,998       244,637  
SemGroup Corp., Class A
    7,495       657,536  
Seventy Seven Energy, Inc. *
    6,111       143,425  
SM Energy Co.
    10,493       934,297  
Solazyme, Inc. *(a)
    9,010       84,514  
Southwestern Energy Co. *
    56,962       2,345,695  
Spectra Energy Corp.
    109,581       4,565,145  
Stone Energy Corp. *
    7,845       276,066  
Superior Energy Services, Inc.
    25,783       924,063  
Targa Resources Corp.
    5,996       836,742  
Teekay Corp.
    6,242       382,759  
Tesoro Corp.
    23,984       1,552,724  
TETRA Technologies, Inc. *
    13,534       159,701  
The Williams Cos., Inc.
    130,023       7,728,567  
Tidewater, Inc.
    8,994       457,525  
Transocean Ltd. (a)
    56,742       2,193,078  
Ultra Petroleum Corp. *(a)
    24,797       657,864  
Unit Corp. *
    7,495       493,246  
Valero Energy Corp.
    92,938       5,031,663  
W&T Offshore, Inc.
    14,990       223,651  
Weatherford International plc *
    124,417       2,947,439  
Western Refining, Inc.
    10,493       488,239  
Whiting Petroleum Corp. *
    20,072       1,859,872  
World Fuel Services Corp.
    11,992       532,205  
WPX Energy, Inc. *
    31,658       842,736  
                 
              353,360,247  
 
Food & Staples Retailing 1.9%
Casey’s General Stores, Inc.
    7,495       537,317  
Costco Wholesale Corp.
    71,952       8,711,948  
CVS Caremark Corp.
    193,190       15,348,945  
PriceSmart, Inc.
    2,998       268,681  
Rite Aid Corp. *
    147,259       915,951  
Safeway, Inc.
    40,863       1,421,215  
SpartanNash Co.
    6,040       129,800  
Sprouts Farmers Market, Inc. *
    13,798       426,910  
SUPERVALU, Inc. *
    34,596       330,392  
Sysco Corp.
    97,435       3,685,966  
The Andersons, Inc.
    4,897       336,767  
The Fresh Market, Inc. *
    6,296       209,972  
The Kroger Co.
    84,064       4,285,583  
United Natural Foods, Inc. *
    8,495       546,143  
Wal-Mart Stores, Inc.
    265,904       20,075,752  
Walgreen Co.
    145,716       8,818,732  
Weis Markets, Inc.
    2,998       128,764  
Whole Foods Market, Inc.
    60,902       2,383,704  
                 
              68,562,542  
 
Food, Beverage & Tobacco 4.5%
Altria Group, Inc.
    331,932       14,299,631  
 
 
 
See financial notes 7

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Archer-Daniels-Midland Co.
    108,089       5,389,317  
B&G Foods, Inc.
    8,994       271,619  
Boulder Brands, Inc. *
    7,495       100,883  
Brown-Forman Corp., Class B
    26,420       2,448,077  
Bunge Ltd.
    23,984       2,030,246  
Cal-Maine Foods, Inc.
    1,852       146,512  
Campbell Soup Co.
    29,069       1,302,873  
Chiquita Brands International, Inc. *
    10,024       139,334  
Coca-Cola Enterprises, Inc.
    38,514       1,840,199  
ConAgra Foods, Inc.
    67,599       2,176,688  
Constellation Brands, Inc., Class A *
    27,150       2,364,493  
Darling Ingredients, Inc. *
    27,937       538,625  
Dean Foods Co.
    15,143       245,014  
Dr. Pepper Snapple Group, Inc.
    32,330       2,034,204  
Flowers Foods, Inc.
    27,714       542,640  
Fresh Del Monte Produce, Inc.
    7,495       239,390  
General Mills, Inc.
    101,348       5,409,956  
Hormel Foods Corp.
    23,984       1,215,509  
Ingredion, Inc.
    13,491       1,076,042  
J&J Snack Foods Corp.
    2,218       210,067  
Kellogg Co.
    42,498       2,761,095  
Keurig Green Mountain, Inc.
    21,139       2,818,251  
Kraft Foods Group, Inc.
    97,602       5,748,758  
Lancaster Colony Corp.
    3,010       266,114  
Lorillard, Inc.
    60,929       3,637,461  
McCormick & Co., Inc. Non-Voting Shares
    21,386       1,490,390  
Mead Johnson Nutrition Co.
    34,477       3,296,001  
Molson Coors Brewing Co., Class B
    25,483       1,884,468  
Mondelez International, Inc., Class A
    280,369       10,146,554  
Monster Beverage Corp. *
    21,716       1,919,912  
PepsiCo, Inc.
    250,909       23,206,573  
Philip Morris International, Inc.
    261,417       22,372,067  
Pilgrim’s Pride Corp. *
    13,868       414,237  
Pinnacle Foods, Inc.
    9,959       322,273  
Post Holdings, Inc. *
    6,577       243,152  
Reynolds American, Inc.
    51,764       3,026,641  
Sanderson Farms, Inc.
    3,112       290,412  
Seaboard Corp. *
    76       220,343  
Snyder’s-Lance, Inc.
    8,994       245,176  
The Boston Beer Co., Inc., Class A *
    1,499       331,249  
The Coca-Cola Co.
    624,512       26,054,641  
The Hain Celestial Group, Inc. *
    8,595       845,404  
The Hershey Co.
    25,483       2,329,656  
The J.M. Smucker Co.
    18,035       1,850,391  
The WhiteWave Foods Co. *
    28,517       998,665  
Tootsie Roll Industries, Inc.
    4,758       134,413  
TreeHouse Foods, Inc. *
    5,996       494,790  
Tyson Foods, Inc., Class A
    46,469       1,768,610  
Universal Corp.
    4,497       237,262  
Vector Group Ltd.
    8,394       200,533  
                 
              163,576,811  
 
Health Care Equipment & Services 4.5%
Abaxis, Inc.
    3,609       172,330  
Abbott Laboratories
    248,463       10,495,077  
ABIOMED, Inc. *
    4,962       129,260  
Acadia Healthcare Co., Inc. *
    7,524       385,304  
Aetna, Inc.
    59,348       4,874,251  
Air Methods Corp. *
    4,839       283,856  
Alere, Inc. *
    13,491       478,256  
Align Technology, Inc. *
    11,088       603,853  
Allscripts Healthcare Solutions, Inc. *
    31,479       465,102  
AmerisourceBergen Corp.
    38,163       2,953,435  
Amsurg Corp. *
    7,259       390,462  
Analogic Corp.
    1,703       122,957  
athenahealth, Inc. *
    5,996       866,062  
Baxter International, Inc.
    91,439       6,856,096  
Becton Dickinson & Co.
    32,079       3,758,696  
Bio-Reference Laboratories, Inc. *
    3,570       103,709  
Boston Scientific Corp. *
    233,961       2,966,626  
Brookdale Senior Living, Inc. *
    29,235       1,021,763  
C.R. Bard, Inc.
    12,353       1,833,679  
Cantel Medical Corp.
    6,549       238,842  
Cardinal Health, Inc.
    55,757       4,109,291  
Cardiovascular Systems, Inc. *
    4,510       128,490  
CareFusion Corp. *
    37,475       1,720,477  
Centene Corp. *
    8,994       702,701  
Cerner Corp. *
    47,968       2,765,835  
Chemed Corp. (a)
    3,045       321,582  
Cigna Corp.
    44,316       4,192,294  
Community Health Systems, Inc. *
    19,504       1,058,677  
Computer Programs & Systems, Inc.
    1,696       104,202  
CONMED Corp.
    4,534       179,093  
Covidien plc
    77,177       6,701,279  
Cyberonics, Inc. *
    3,392       194,667  
DaVita HealthCare Partners, Inc. *
    29,430       2,197,832  
DENTSPLY International, Inc.
    23,984       1,144,157  
DexCom, Inc. *
    13,491       596,302  
Edwards Lifesciences Corp. *
    19,487       1,934,280  
Endologix, Inc. *
    9,115       125,878  
Envision Healthcare Holdings, Inc. *
    17,427       637,131  
ExamWorks Group, Inc. *
    4,140       136,413  
Express Scripts Holding Co. *
    128,083       9,469,176  
Globus Medical, Inc., Class A *
    9,523       172,747  
Greatbatch, Inc. *
    3,404       155,120  
Haemonetics Corp. *
    8,994       320,996  
Hanger, Inc. *
    5,030       112,672  
HCA Holdings, Inc. *
    51,317       3,582,953  
Health Net, Inc. *
    16,489       778,281  
HealthSouth Corp.
    14,990       590,456  
HealthStream, Inc. *
    6,488       168,429  
HeartWare International, Inc. *
    2,029       164,552  
Henry Schein, Inc. *
    14,990       1,794,153  
Hill-Rom Holdings, Inc.
    10,493       459,698  
HMS Holdings Corp. *
    13,665       312,382  
Hologic, Inc. *
    46,984       1,168,492  
Humana, Inc.
    26,982       3,473,663  
ICU Medical, Inc. *
    1,685       105,464  
IDEXX Laboratories, Inc. *
    9,008       1,116,722  
IMS Health Holdings, Inc. *
    8,300       231,570  
Insulet Corp. *
    7,495       270,644  
Integra LifeSciences Holdings Corp. *
    4,511       225,505  
Intuitive Surgical, Inc. *
    6,485       3,048,015  
 
 
 
8 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
IPC The Hospitalist Co., Inc. *
    1,985       95,955  
Kindred Healthcare, Inc.
    14,990       309,544  
Laboratory Corp. of America Holdings *
    16,489       1,768,115  
Landauer, Inc.
    1,552       56,524  
LifePoint Hospitals, Inc. *
    8,994       672,751  
Magellan Health, Inc. *
    5,996       334,937  
Masimo Corp. *
    8,994       201,825  
McKesson Corp.
    38,974       7,601,099  
MedAssets, Inc. *
    9,020       207,460  
Medidata Solutions, Inc. *
    7,218       335,926  
MEDNAX, Inc. *
    15,590       892,528  
Medtronic, Inc.
    165,659       10,577,327  
Meridian Bioscience, Inc.
    10,493       205,348  
Merit Medical Systems, Inc. *
    7,495       93,762  
Molina Healthcare, Inc. *
    4,686       224,178  
MWI Veterinary Supply, Inc. *
    1,746       248,019  
National Healthcare Corp.
    1,552       88,930  
Natus Medical, Inc. *
    5,054       142,068  
Neogen Corp. *
    6,586       277,271  
NuVasive, Inc. *
    7,682       269,638  
NxStage Medical, Inc. *
    9,420       123,590  
Omnicare, Inc.
    16,307       1,039,897  
Omnicell, Inc. *
    4,856       136,696  
Owens & Minor, Inc.
    10,493       360,959  
Patterson Cos., Inc.
    13,685       551,095  
Premier, Inc., Class A *
    6,072       191,754  
Quality Systems, Inc.
    6,540       102,416  
Quest Diagnostics, Inc.
    25,783       1,629,743  
Quidel Corp. *
    5,086       120,030  
ResMed, Inc. (a)
    23,984       1,272,351  
Select Medical Holdings Corp.
    13,803       193,518  
Sirona Dental Systems, Inc. *
    9,069       739,214  
St. Jude Medical, Inc.
    48,779       3,199,415  
STERIS Corp.
    8,994       506,272  
Stryker Corp.
    49,023       4,084,106  
Team Health Holdings, Inc. *
    11,021       644,949  
Teleflex, Inc.
    7,495       820,553  
Tenet Healthcare Corp. *
    16,048       981,817  
The Cooper Cos., Inc.
    7,495       1,221,910  
The Ensign Group, Inc.
    2,052       71,820  
The Spectranetics Corp. *
    6,780       192,416  
Thoratec Corp. *
    8,994       224,850  
Tornier NV *
    6,168       133,352  
UnitedHealth Group, Inc.
    163,068       14,134,734  
Universal American Corp. *
    13,491       115,348  
Universal Health Services, Inc., Class B
    14,990       1,715,456  
Varian Medical Systems, Inc. *
    18,193       1,546,769  
VCA, Inc. *
    13,491       549,758  
Volcano Corp. *
    8,994       111,885  
WellCare Health Plans, Inc. *
    7,495       493,621  
WellPoint, Inc.
    46,543       5,422,725  
West Pharmaceutical Services, Inc.
    11,992       520,813  
Wright Medical Group, Inc. *
    8,994       268,381  
Zimmer Holdings, Inc.
    28,628       2,843,047  
                 
              166,540,352  
 
Household & Personal Products 1.8%
Avon Products, Inc.
    71,038       997,374  
Church & Dwight Co., Inc.
    23,984       1,636,668  
Colgate-Palmolive Co.
    143,706       9,302,089  
Coty, Inc., Class A
    14,161       243,428  
Elizabeth Arden, Inc. *
    3,492       59,713  
Energizer Holdings, Inc.
    10,607       1,288,963  
Harbinger Group, Inc. *
    9,312       120,590  
Herbalife Ltd. (a)
    13,747       700,822  
Kimberly-Clark Corp.
    62,233       6,721,164  
Nu Skin Enterprises, Inc., Class A
    10,493       469,247  
Revlon, Inc., Class A *
    4,856       164,958  
Spectrum Brands Holdings, Inc.
    3,440       297,904  
The Clorox Co.
    21,133       1,872,384  
The Estee Lauder Cos., Inc., Class A
    42,342       3,253,136  
The Procter & Gamble Co.
    448,467       37,272,092  
WD-40 Co.
    1,927       132,385  
                 
              64,532,917  
 
Insurance 3.1%
ACE Ltd.
    55,663       5,918,647  
Aflac, Inc.
    75,978       4,652,893  
Alleghany Corp. *
    2,638       1,137,321  
Allied World Assurance Co. Holdings AG
    17,988       665,376  
Ambac Financial Group, Inc. *
    7,600       183,920  
American Equity Investment Life Holding Co.
    9,593       237,331  
American Financial Group, Inc.
    12,538       751,904  
American International Group, Inc.
    239,045       13,400,863  
American National Insurance Co.
    545       62,043  
AMERISAFE, Inc.
    3,004       113,341  
AmTrust Financial Services, Inc. (a)
    5,030       221,471  
Aon plc
    48,755       4,249,486  
Arch Capital Group Ltd. *
    18,830       1,046,571  
Argo Group International Holdings Ltd.
    4,512       237,512  
Arthur J. Gallagher & Co.
    25,166       1,188,590  
Aspen Insurance Holdings Ltd.
    11,992       509,900  
Assurant, Inc.
    12,594       840,649  
Assured Guaranty Ltd.
    27,557       665,502  
Axis Capital Holdings Ltd.
    17,258       832,181  
Brown & Brown, Inc.
    19,487       635,666  
Cincinnati Financial Corp.
    25,483       1,225,477  
Citizens, Inc. *
    6,540       46,761  
CNA Financial Corp.
    6,012       233,085  
CNO Financial Group, Inc.
    37,883       676,212  
eHealth, Inc. *
    2,585       63,436  
Employers Holdings, Inc.
    5,996       128,374  
Endurance Specialty Holdings Ltd.
    6,868       398,825  
Enstar Group Ltd. *
    1,499       212,708  
Erie Indemnity Co., Class A
    4,511       345,137  
Everest Re Group Ltd.
    8,031       1,315,799  
FBL Financial Group, Inc., Class A
    3,270       153,134  
First American Financial Corp.
    17,988       509,960  
FNF Group *
    45,079       1,276,186  
Genworth Financial, Inc., Class A *
    79,447       1,127,353  
Greenlight Capital Re Ltd., Class A *
    4,497       153,842  
HCC Insurance Holdings, Inc.
    17,988       901,918  
Hilltop Holdings, Inc. *
    11,353       240,343  
Horace Mann Educators Corp.
    6,601       196,710  
Infinity Property & Casualty Corp.
    1,499       102,502  
 
 
 
See financial notes 9

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Kemper Corp.
    8,994       326,932  
Lincoln National Corp.
    43,041       2,368,977  
Loews Corp.
    51,201       2,239,532  
Maiden Holdings Ltd.
    7,860       95,578  
Markel Corp. *
    2,259       1,490,488  
Marsh & McLennan Cos., Inc.
    89,072       4,729,723  
MBIA, Inc. *
    24,496       255,493  
Meadowbrook Insurance Group, Inc.
    7,625       47,199  
Mercury General Corp.
    5,996       307,175  
MetLife, Inc.
    185,889       10,175,564  
Montpelier Re Holdings Ltd.
    9,135       287,296  
National General Holdings Corp.
    18,048       338,039  
National Interstate Corp.
    2,485       69,580  
National Western Life Insurance Co., Class A
    300       76,200  
Old Republic International Corp.
    39,118       600,461  
OneBeacon Insurance Group Ltd., Class A
    3,931       63,014  
PartnerRe Ltd.
    8,129       907,928  
Platinum Underwriters Holdings Ltd.
    4,891       305,541  
Primerica, Inc.
    7,495       377,223  
Principal Financial Group, Inc.
    46,511       2,525,082  
ProAssurance Corp.
    9,866       455,809  
Protective Life Corp.
    13,491       936,275  
Prudential Financial, Inc.
    76,643       6,874,877  
Reinsurance Group of America, Inc.
    11,992       995,096  
RenaissanceRe Holdings Ltd.
    7,531       771,099  
RLI Corp.
    5,996       268,021  
Safety Insurance Group, Inc.
    2,998       165,490  
Selective Insurance Group, Inc.
    8,994       215,586  
StanCorp Financial Group, Inc.
    7,495       491,072  
State Auto Financial Corp.
    2,185       47,414  
Stewart Information Services Corp.
    3,770       121,469  
Symetra Financial Corp.
    12,319       299,844  
The Allstate Corp.
    70,146       4,313,278  
The Chubb Corp.
    39,260       3,609,957  
The Hanover Insurance Group, Inc.
    6,924       439,328  
The Hartford Financial Services Group, Inc.
    72,041       2,669,119  
The Navigators Group, Inc. *
    1,505       96,696  
The Progressive Corp.
    93,349       2,335,592  
The Travelers Cos., Inc.
    57,597       5,455,012  
Torchmark Corp.
    22,701       1,238,340  
United Fire Group, Inc.
    3,204       93,941  
Unum Group
    43,859       1,590,766  
Validus Holdings Ltd.
    15,229       595,606  
W.R. Berkley Corp.
    18,132       876,682  
White Mountains Insurance Group Ltd.
    912       578,427  
Willis Group Holdings plc
    27,934       1,172,390  
XL Group plc
    47,233       1,614,424  
                 
              112,767,564  
 
Materials 3.9%
A. Schulman, Inc.
    4,650       180,560  
Air Products & Chemicals, Inc.
    34,630       4,613,062  
Airgas, Inc.
    10,907       1,203,915  
AK Steel Holding Corp. *
    23,350       254,982  
Albemarle Corp.
    14,990       953,064  
Alcoa, Inc.
    192,927       3,204,517  
Allegheny Technologies, Inc.
    16,989       716,426  
AptarGroup, Inc.
    10,493       673,126  
Ashland, Inc.
    11,992       1,285,782  
Avery Dennison Corp.
    17,988       865,762  
Axiall Corp.
    12,007       499,251  
Balchem Corp.
    5,996       308,434  
Ball Corp.
    25,625       1,642,563  
Bemis Co., Inc.
    17,988       732,831  
Berry Plastics Group, Inc. *
    19,964       481,332  
Boise Cascade Co. *
    6,128       184,208  
Cabot Corp.
    10,493       574,807  
Calgon Carbon Corp. *
    9,064       192,519  
Carpenter Technology Corp.
    7,495       410,201  
Celanese Corp., Series A
    26,982       1,687,454  
CF Industries Holdings, Inc.
    8,448       2,176,796  
Chemtura Corp. *
    17,988       444,124  
Clearwater Paper Corp. *
    4,497       311,192  
Cliffs Natural Resources, Inc. (a)
    25,788       388,625  
Commercial Metals Co.
    19,487       336,735  
Compass Minerals International, Inc.
    5,996       534,064  
Crown Holdings, Inc. *
    24,278       1,171,899  
Cytec Industries, Inc.
    7,495       772,285  
Deltic Timber Corp.
    1,727       114,396  
Domtar Corp.
    11,992       447,182  
E.I. du Pont de Nemours & Co.
    151,777       10,033,977  
Eagle Materials, Inc.
    8,077       823,127  
Eastman Chemical Co.
    25,483       2,101,583  
Ecolab, Inc.
    45,753       5,253,359  
Ferro Corp. *
    13,768       185,593  
Flotek Industries, Inc. *
    6,508       180,922  
FMC Corp.
    22,532       1,490,267  
Freeport-McMoRan, Inc.
    171,189       6,226,144  
Globe Specialty Metals, Inc.
    7,958       163,457  
Graphic Packaging Holding Co. *
    54,083       691,722  
Greif, Inc., Class A
    5,996       287,148  
H.B. Fuller Co.
    7,737       363,949  
Haynes International, Inc.
    2,998       148,641  
Headwaters, Inc. *
    24,392       316,852  
Hecla Mining Co.
    41,097       134,387  
Horsehead Holding Corp. *
    6,620       133,658  
Huntsman Corp.
    33,766       907,968  
Innophos Holdings, Inc.
    4,497       261,501  
Innospec, Inc.
    2,385       100,599  
International Flavors & Fragrances, Inc.
    13,491       1,370,551  
International Paper Co.
    73,474       3,559,815  
Intrepid Potash, Inc. *
    6,540       100,258  
Kaiser Aluminum Corp.
    2,998       241,489  
KapStone Paper & Packaging Corp. *
    15,030       462,022  
Koppers Holdings, Inc.
    4,497       166,884  
Kraton Performance Polymers, Inc. *
    4,795       97,482  
Kronos Worldwide, Inc.
    7,630       120,630  
Louisiana-Pacific Corp. *
    22,485       320,861  
LSB Industries, Inc. *
    3,000       120,150  
LyondellBasell Industries N.V., Class A
    68,784       7,865,450  
Martin Marietta Materials, Inc.
    9,712       1,271,884  
 
 
 
10 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Materion Corp.
    3,104       101,284  
MeadWestvaco Corp.
    28,481       1,224,683  
Minerals Technologies, Inc.
    6,024       377,223  
Monsanto Co.
    86,177       9,966,370  
Myers Industries, Inc.
    5,996       118,181  
Neenah Paper, Inc.
    1,952       106,716  
NewMarket Corp.
    1,625       661,196  
Newmont Mining Corp.
    82,378       2,231,620  
Nucor Corp.
    51,472       2,795,959  
Olin Corp.
    14,990       409,077  
OM Group, Inc.
    4,497       119,620  
Owens-Illinois, Inc. *
    28,481       876,930  
P.H. Glatfelter Co.
    6,440       160,549  
Packaging Corp. of America
    16,489       1,121,087  
Platform Specialty Products Corp. *
    15,432       421,448  
PolyOne Corp.
    14,990       587,908  
PPG Industries, Inc.
    23,157       4,767,100  
Praxair, Inc.
    49,467       6,507,384  
Quaker Chemical Corp.
    2,998       233,844  
Rayonier Advanced Materials, Inc. *(a)
    6,962       231,208  
Reliance Steel & Aluminum Co.
    12,039       841,767  
Rentech, Inc. *
    60,400       135,296  
Resolute Forest Products, Inc. *
    15,596       268,095  
Rock-Tenn Co., Class A
    24,266       1,192,917  
Rockwood Holdings, Inc.
    12,292       995,406  
Royal Gold, Inc.
    10,508       816,997  
RPM International, Inc.
    22,485       1,059,718  
RTI International Metals, Inc. *
    4,655       135,042  
Schnitzer Steel Industries, Inc., Class A
    4,140       114,637  
Schweitzer-Mauduit International, Inc.
    5,996       256,869  
Sealed Air Corp.
    31,748       1,146,103  
Sensient Technologies Corp.
    8,994       504,653  
Sigma-Aldrich Corp.
    19,640       2,042,560  
Silgan Holdings, Inc.
    7,596       382,459  
Sonoco Products Co.
    16,489       678,687  
Steel Dynamics, Inc.
    35,976       836,082  
Stepan Co.
    2,998       144,773  
Stillwater Mining Co. *
    18,370       340,947  
SunCoke Energy, Inc. *
    9,500       228,095  
The Dow Chemical Co.
    200,565       10,740,256  
The Mosaic Co.
    54,533       2,604,496  
The Scotts Miracle-Gro Co., Class A
    7,495       432,686  
The Sherwin-Williams Co.
    14,038       3,061,828  
The Valspar Corp.
    14,990       1,210,592  
TimkenSteel Corp.
    6,725       321,321  
Tredegar Corp.
    3,510       73,043  
Tronox Ltd., Class A
    13,680       415,325  
United States Steel Corp.
    23,415       904,990  
US Silica Holdings, Inc.
    8,800       631,928  
Vulcan Materials Co.
    21,092       1,336,811  
W.R. Grace & Co. *
    12,663       1,254,017  
Wausau Paper Corp.
    2,105       19,198  
Westlake Chemical Corp.
    6,290       610,948  
Worthington Industries, Inc.
    10,525       425,631  
                 
              142,047,984  
 
Media 3.5%
AMC Networks, Inc., Class A *
    10,493       656,599  
Cablevision Systems Corp., Class A
    35,141       650,460  
Carmike Cinemas, Inc. *
    3,770       127,690  
CBS Corp., Class B Non-Voting Shares
    87,356       5,179,337  
CBS Outdoor Americas, Inc. REIT
    19,981       686,747  
Charter Communications, Inc., Class A *
    11,585       1,817,339  
Cinemark Holdings, Inc.
    17,988       634,797  
Clear Channel Outdoor Holdings, Inc., Class A
    12,412       86,139  
Comcast Corp., Class A
    430,482       23,560,280  
Cumulus Media, Inc., Class A *
    12,080       55,447  
DIRECTV *
    78,186       6,759,180  
Discovery Communications, Inc., Class A *
    37,797       1,652,485  
Discovery Communications, Inc., Class C *
    37,797       1,624,137  
DISH Network Corp., Class A *
    35,009       2,268,933  
DreamWorks Animation SKG, Inc., Class A *
    11,138       243,198  
Gannett Co., Inc.
    37,817       1,276,702  
Gray Television, Inc. *
    9,020       89,569  
Harte-Hanks, Inc.
    6,540       45,845  
John Wiley & Sons, Inc., Class A
    7,895       473,305  
Lamar Advertising Co., Class A
    10,493       550,673  
Liberty Global plc, Class A *
    56,473       2,466,176  
Liberty Global plc, Series C *
    66,887       2,804,572  
Liberty Media Corp., Class A *
    16,903       832,135  
Liberty Media Corp., Class C *
    33,806       1,638,577  
Live Nation Entertainment, Inc. *
    22,576       495,769  
Loral Space & Communications, Inc. *
    2,998       224,610  
Meredith Corp.
    7,495       349,117  
Morningstar, Inc.
    3,312       227,468  
National CineMedia, Inc.
    10,521       153,607  
News Corp., Class A *
    81,666       1,439,363  
Nexstar Broadcasting Group, Inc., Class A
    3,858       176,079  
Omnicom Group, Inc.
    42,180       3,037,382  
Regal Entertainment Group, Class A
    13,491       283,986  
Rentrak Corp. *
    1,885       96,248  
Scholastic Corp.
    3,400       119,136  
Scripps Networks Interactive, Inc., Class A
    17,375       1,384,961  
Sinclair Broadcast Group, Inc., Class A (a)
    11,644       338,258  
Sirius XM Holdings, Inc. *
    517,250       1,877,618  
Starz, Class A *
    18,135       567,444  
The E.W. Scripps Co., Class A *
    5,155       97,739  
The Interpublic Group of Cos., Inc.
    71,987       1,405,906  
The Madison Square Garden Co., Class A *
    9,447       631,626  
The New York Times Co., Class A
    26,982       334,037  
The Walt Disney Co.
    266,321       23,936,932  
Time Warner Cable, Inc.
    45,683       6,757,886  
Time Warner, Inc.
    147,183       11,337,507  
Time, Inc. *
    18,381       431,586  
 
 
 
See financial notes 11

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Twenty-First Century Fox, Inc., Class A
    316,472       11,209,438  
Viacom, Inc., Class B
    64,548       5,238,070  
                 
              128,332,095  
 
Pharmaceuticals, Biotechnology & Life Sciences 8.7%
AbbVie, Inc.
    264,533       14,623,384  
ACADIA Pharmaceuticals, Inc. *
    15,740       377,445  
Achillion Pharmaceuticals, Inc. *
    20,052       232,002  
Acorda Therapeutics, Inc. *
    6,237       203,201  
Actavis plc *
    43,701       9,919,253  
Aegerion Pharmaceuticals, Inc. *
    3,752       114,624  
Affymetrix, Inc. *
    12,416       107,647  
Agilent Technologies, Inc.
    56,962       3,255,948  
Akorn, Inc. *
    10,584       412,988  
Alexion Pharmaceuticals, Inc. *
    33,269       5,632,109  
Alkermes plc *
    24,052       1,075,846  
Allergan, Inc.
    50,966       8,342,115  
Alnylam Pharmaceuticals, Inc. *
    9,460       659,078  
Amgen, Inc.
    125,268       17,459,854  
Arena Pharmaceuticals, Inc. *(a)
    36,942       152,201  
ARIAD Pharmaceuticals, Inc. *(a)
    30,660       190,705  
Array BioPharma, Inc. *
    15,020       59,329  
Auxilium Pharmaceuticals, Inc. *(a)
    7,495       139,407  
AVANIR Pharmaceuticals, Inc. *
    24,812       154,331  
Bio-Rad Laboratories, Inc., Class A *
    2,998       360,539  
Biogen Idec, Inc. *
    39,047       13,394,683  
BioMarin Pharmaceutical, Inc. *
    23,218       1,653,586  
Bristol-Myers Squibb Co.
    274,139       13,885,140  
Bruker Corp. *
    18,451       370,127  
Cambrex Corp. *
    4,896       107,320  
Celgene Corp. *
    132,122       12,554,232  
Celldex Therapeutics, Inc. *
    12,676       201,675  
Cepheid, Inc. *
    11,992       480,040  
Charles River Laboratories International, Inc. *
    7,789       460,330  
Clovis Oncology, Inc. *
    4,655       221,392  
Covance, Inc. *
    10,493       869,870  
Cubist Pharmaceuticals, Inc. *
    12,670       874,610  
Depomed, Inc. *
    9,562       146,777  
Dyax Corp. *
    20,379       208,070  
Eli Lilly & Co.
    163,411       10,386,403  
Emergent Biosolutions, Inc. *
    7,590       188,991  
Endo International plc *
    22,130       1,409,902  
Exact Sciences Corp. *(a)
    14,294       298,030  
Exelixis, Inc. *(a)
    24,025       99,463  
Fluidigm Corp. *
    5,196       141,435  
Genomic Health, Inc. *
    3,396       100,929  
Gilead Sciences, Inc. *
    253,610       27,283,364  
Halozyme Therapeutics, Inc. *
    14,990       142,405  
Hospira, Inc. *
    26,982       1,450,013  
Illumina, Inc. *
    23,790       4,266,974  
ImmunoGen, Inc. *
    13,491       159,464  
Impax Laboratories, Inc. *
    13,495       332,517  
Incyte Corp. *
    24,518       1,328,876  
Intercept Pharmaceuticals, Inc. *
    2,100       608,412  
InterMune, Inc. *
    16,570       1,217,066  
Intrexon Corp. *(a)
    5,026       101,927  
Ironwood Pharmaceuticals, Inc. *
    20,730       268,246  
Isis Pharmaceuticals, Inc. *
    19,582       798,162  
Jazz Pharmaceuticals plc *
    8,930       1,454,876  
Johnson & Johnson
    467,276       48,470,539  
Keryx Biopharmaceuticals, Inc. *(a)
    16,164       294,023  
KYTHERA Biopharmaceuticals, Inc. *
    2,032       76,424  
Lexicon Pharmaceuticals, Inc. *
    72,115       109,615  
Ligand Pharmaceuticals, Inc., Class B *
    3,926       204,309  
Luminex Corp. *
    7,495       141,281  
Mallinckrodt plc *
    19,047       1,552,149  
MannKind Corp. *(a)
    58,975       434,646  
Medivation, Inc. *
    11,992       1,094,390  
Merck & Co., Inc.
    487,642       29,312,161  
Mettler-Toledo International, Inc. *
    4,744       1,283,157  
MiMedx Group, Inc. *(a)
    12,956       91,210  
Momenta Pharmaceuticals, Inc. *
    7,781       91,738  
Mylan, Inc. *
    65,058       3,161,819  
Myriad Genetics, Inc. *(a)
    14,990       542,488  
Nektar Therapeutics *
    22,485       320,636  
Neurocrine Biosciences, Inc. *
    12,080       197,025  
Novavax, Inc. *
    59,048       276,935  
NPS Pharmaceuticals, Inc. *
    18,103       546,349  
OPKO Health, Inc. *(a)
    36,034       320,703  
Orexigen Therapeutics, Inc. *(a)
    15,220       86,754  
Pacira Pharmaceuticals, Inc. *
    5,556       601,493  
PAREXEL International Corp. *
    10,493       592,225  
PDL BioPharma, Inc. (a)
    29,980       302,498  
PerkinElmer, Inc.
    20,986       941,222  
Perrigo Co., plc
    22,025       3,275,998  
Pfizer, Inc.
    1,056,558       31,052,240  
Pharmacyclics, Inc. *
    10,779       1,340,800  
Prestige Brands Holdings, Inc. *
    7,788       269,543  
PTC Therapeutics, Inc. *(a)
    7,944       251,507  
Puma Biotechnology, Inc. *
    4,978       1,296,819  
Quintiles Transnational Holdings, Inc. *
    8,414       472,194  
Raptor Pharmaceutical Corp. *(a)
    6,368       70,175  
Receptos, Inc. *
    2,032       103,937  
Regeneron Pharmaceuticals, Inc. *
    13,165       4,614,596  
Salix Pharmaceuticals Ltd. *
    10,194       1,621,967  
Sangamo BioSciences, Inc. *
    12,856       183,841  
Sarepta Therapeutics, Inc. *(a)
    6,232       142,900  
Seattle Genetics, Inc. *
    18,707       823,295  
Synageva BioPharma Corp. *
    3,950       285,071  
Techne Corp.
    5,996       572,738  
TESARO, Inc. *
    3,284       97,075  
The Medicines Co. *
    9,036       231,412  
TherapeuticsMD, Inc. *(a)
    16,320       90,576  
Theravance Biopharma, Inc. *(a)
    3,439       100,986  
Theravance, Inc. (a)
    12,117       285,476  
Thermo Fisher Scientific, Inc.
    66,111       7,947,203  
Ultragenyx Pharmaceutical, Inc. *
    4,512       240,760  
United Therapeutics Corp. *
    8,994       1,059,763  
Vertex Pharmaceuticals, Inc. *
    40,583       3,797,351  
Waters Corp. *
    14,990       1,550,416  
ZIOPHARM Oncology, Inc. *(a)
    50,924       164,484  
Zoetis, Inc.
    81,335       2,882,512  
                 
              316,808,737  
 
Real Estate 3.7%
Acadia Realty Trust
    7,548       217,533  
 
 
 
12 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Alexander & Baldwin, Inc.
    7,495       306,545  
Alexander’s, Inc.
    699       277,147  
Alexandria Real Estate Equities, Inc.
    12,456       984,771  
Altisource Portfolio Solutions S.A. *(a)
    3,326       332,367  
Altisource Residential Corp.
    9,208       225,964  
American Assets Trust, Inc.
    4,957       173,743  
American Campus Communities, Inc.
    16,771       662,622  
American Capital Agency Corp.
    63,474       1,501,160  
American Capital Mortgage Investment Corp.
    10,643       219,033  
American Homes 4 Rent, Class A
    10,877       194,481  
American Realty Capital Properties, Inc.
    147,706       1,943,811  
American Tower Corp.
    65,084       6,417,282  
Annaly Capital Management, Inc.
    151,535       1,803,266  
Anworth Mortgage Asset Corp.
    24,720       128,297  
Apartment Investment & Management Co., Class A
    23,990       822,137  
Apollo Commercial Real Estate Finance, Inc.
    6,280       105,630  
Apollo Residential Mortgage, Inc.
    5,396       90,923  
ARMOUR Residential REIT, Inc.
    62,503       264,388  
Ashford Hospitality Prime, Inc.
    2,229       36,088  
Ashford Hospitality Trust, Inc.
    11,992       138,987  
Associated Estates Realty Corp.
    6,601       122,119  
AvalonBay Communities, Inc.
    19,946       3,073,679  
Aviv REIT, Inc.
    7,925       231,885  
BioMed Realty Trust, Inc.
    30,699       689,193  
Blackstone Mortgage Trust, Inc., Class A
    8,206       238,384  
Boston Properties, Inc.
    25,483       3,094,146  
Brandywine Realty Trust
    25,483       408,238  
Brixmor Property Group, Inc.
    13,732       325,036  
Camden Property Trust
    13,491       1,009,666  
Capstead Mortgage Corp.
    17,988       237,801  
CareTrust REIT, Inc. *
    2,052       35,848  
CBL & Associates Properties, Inc.
    28,481       541,139  
CBRE Group, Inc., Class A *
    49,684       1,578,958  
Chambers Street Properties
    48,320       376,413  
Chesapeake Lodging Trust
    11,349       349,663  
Chimera Investment Corp.
    161,982       536,160  
Colony Financial, Inc.
    14,519       325,516  
Columbia Property Trust, Inc.
    20,116       516,378  
CoreSite Realty Corp.
    2,998       105,140  
Corporate Office Properties Trust
    12,528       355,545  
Corrections Corp. of America
    19,875       708,345  
Cousins Properties, Inc.
    27,588       350,092  
Crown Castle International Corp.
    56,196       4,468,144  
CubeSmart
    17,988       334,577  
CyrusOne, Inc.
    6,112       159,156  
CYS Investments, Inc.
    28,294       266,812  
DCT Industrial Trust, Inc.
    50,966       405,180  
DDR Corp.
    51,097       930,987  
DiamondRock Hospitality Co.
    31,517       419,806  
Digital Realty Trust, Inc.
    23,004       1,501,011  
Douglas Emmett, Inc.
    20,986       599,570  
Duke Realty Corp.
    51,185       952,041  
DuPont Fabros Technology, Inc.
    10,493       295,483  
EastGroup Properties, Inc.
    5,996       388,781  
Education Realty Trust, Inc.
    17,988       195,889  
Empire State Realty Trust, Inc., Class A
    13,588       223,387  
EPR Properties
    8,207       467,060  
Equity Commonwealth
    20,206       543,137  
Equity Lifestyle Properties, Inc.
    14,990       684,893  
Equity One, Inc.
    9,450       223,020  
Equity Residential
    55,543       3,691,943  
Essex Property Trust, Inc.
    10,690       2,067,980  
Excel Trust, Inc.
    15,870       205,358  
Extra Space Storage, Inc.
    18,272       962,934  
Federal Realty Investment Trust
    10,493       1,309,317  
FelCor Lodging Trust, Inc.
    20,986       216,995  
First Industrial Realty Trust, Inc.
    14,990       272,818  
First Potomac Realty Trust
    7,825       103,603  
Forest City Enterprises, Inc., Class A *
    26,429       549,723  
Forestar Group, Inc. *
    4,956       99,120  
Franklin Street Properties Corp.
    13,491       163,916  
Gaming & Leisure Properties, Inc.
    15,857       528,038  
General Growth Properties, Inc.
    93,674       2,301,570  
Getty Realty Corp.
    3,604       67,611  
Glimcher Realty Trust
    22,485       252,507  
Government Properties Income Trust
    12,558       301,643  
Hatteras Financial Corp.
    15,590       310,241  
HCP, Inc.
    73,916       3,202,780  
Health Care REIT, Inc.
    50,419       3,407,316  
Healthcare Realty Trust, Inc.
    13,797       344,373  
Healthcare Trust of America, Inc., Class A
    29,294       364,710  
Hersha Hospitality Trust
    24,262       164,739  
Highwoods Properties, Inc.
    16,725       711,649  
Home Properties, Inc.
    8,994       577,595  
Hospitality Properties Trust
    25,050       737,221  
Host Hotels & Resorts, Inc.
    122,499       2,795,427  
Hudson Pacific Properties, Inc.
    15,344       411,986  
Inland Real Estate Corp.
    12,280       127,835  
Invesco Mortgage Capital, Inc.
    24,168       425,840  
Investors Real Estate Trust
    13,765       117,415  
iStar Financial, Inc. *
    12,016       178,798  
Jones Lang LaSalle, Inc.
    7,495       1,001,407  
Kennedy-Wilson Holdings, Inc.
    11,361       296,749  
Kilroy Realty Corp.
    14,377       909,345  
Kimco Realty Corp.
    67,455       1,584,518  
Kite Realty Group Trust
    13,805       355,065  
LaSalle Hotel Properties
    17,261       630,890  
Lexington Realty Trust
    29,994       326,335  
Liberty Property Trust
    24,232       858,297  
LTC Properties, Inc.
    4,691       192,096  
Mack-Cali Realty Corp.
    13,811       291,965  
Medical Properties Trust, Inc.
    26,641       375,372  
MFA Financial, Inc.
    58,461       493,411  
Mid-America Apartment Communities, Inc.
    11,469       829,438  
National Health Investors, Inc.
    4,722       304,616  
National Retail Properties, Inc.
    20,156       748,594  
New Residential Investment Corp.
    51,812       324,861  
New York Mortgage Trust, Inc.
    13,530       107,969  
New York REIT, Inc. (a)
    24,960       257,338  
Newcastle Investment Corp.
    19,909       269,771  
NorthStar Realty Finance Corp.
    30,329       561,390  
 
 
 
See financial notes 13

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Omega Healthcare Investors, Inc.
    20,271       763,609  
Parkway Properties, Inc.
    11,396       236,467  
Pebblebrook Hotel Trust
    9,348       362,142  
Pennsylvania Real Estate Investment Trust
    10,493       211,539  
PennyMac Mortgage Investment Trust
    9,292       206,840  
Piedmont Office Realty Trust, Inc., Class A
    29,980       584,310  
Plum Creek Timber Co., Inc.
    29,365       1,193,100  
Post Properties, Inc.
    8,994       494,850  
Potlatch Corp.
    7,495       319,887  
Prologis, Inc.
    82,619       3,382,422  
PS Business Parks, Inc.
    3,276       267,125  
Public Storage
    23,984       4,201,517  
RAIT Financial Trust
    17,552       141,996  
Ramco-Gershenson Properties Trust
    11,335       192,242  
Rayonier, Inc.
    20,986       719,190  
Realogy Holdings Corp. *
    24,871       1,013,991  
Realty Income Corp.
    39,628       1,772,164  
Redwood Trust, Inc.
    16,489       319,392  
Regency Centers Corp.
    14,990       856,529  
Resource Capital Corp.
    13,868       74,749  
Retail Opportunity Investments Corp.
    14,265       225,958  
Retail Properties of America, Inc., Class A
    39,454       624,162  
RLJ Lodging Trust
    19,776       589,523  
Rouse Properties, Inc. (a)
    6,204       108,446  
Ryman Hospitality Properties, Inc. (a)
    8,244       410,139  
Sabra Health Care REIT, Inc.
    6,040       172,019  
Saul Centers, Inc.
    1,854       92,422  
Select Income REIT
    8,304       231,682  
Senior Housing Properties Trust
    33,405       779,339  
Silver Bay Realty Trust Corp.
    7,081       118,040  
Simon Property Group, Inc.
    51,746       8,798,372  
SL Green Realty Corp.
    15,690       1,715,701  
Sovran Self Storage, Inc.
    6,595       509,596  
Spirit Realty Capital, Inc.
    67,735       799,950  
STAG Industrial, Inc.
    9,036       211,713  
Starwood Property Trust, Inc.
    33,829       806,822  
Starwood Waypoint Residential Trust *
    6,697       185,373  
Strategic Hotels & Resorts, Inc. *
    39,840       473,299  
Summit Hotel Properties, Inc.
    15,870       173,777  
Sun Communities, Inc.
    7,689       412,361  
Sunstone Hotel Investors, Inc.
    30,905       450,286  
Tanger Factory Outlet Centers, Inc.
    15,195       530,457  
Taubman Centers, Inc.
    10,493       799,252  
The Geo Group, Inc.
    13,563       507,527  
The Howard Hughes Corp. *
    4,997       791,375  
The Macerich Co.
    22,485       1,468,046  
The St. Joe Co. *
    16,489       357,152  
Two Harbors Investment Corp.
    57,546       616,893  
UDR, Inc.
    40,826       1,221,514  
Universal Health Realty Income Trust
    2,998       132,422  
Ventas, Inc.
    48,268       3,175,069  
Vornado Realty Trust
    28,761       3,044,927  
Washington Prime Group, Inc.
    25,873       505,041  
Washington REIT
    10,493       291,496  
Weingarten Realty Investors
    20,986       718,141  
Western Asset Mortgage Capital Corp.
    7,112       108,102  
Weyerhaeuser Co.
    95,010       3,225,589  
WP Carey, Inc.
    9,038       617,115  
                 
              136,120,040  
 
Retailing 4.2%
Aaron’s, Inc.
    13,491       345,639  
Abercrombie & Fitch Co., Class A
    11,027       460,929  
Advance Auto Parts, Inc.
    12,006       1,637,859  
Amazon.com, Inc. *
    61,548       20,867,234  
American Eagle Outfitters, Inc.
    19,560       275,405  
ANN, Inc. *
    9,111       377,560  
Asbury Automotive Group, Inc. *
    4,823       336,067  
Ascena Retail Group, Inc. *
    23,984       417,082  
AutoNation, Inc. *
    10,551       572,392  
AutoZone, Inc. *
    5,417       2,918,896  
Barnes & Noble, Inc. *
    6,561       156,545  
Bed Bath & Beyond, Inc. *
    36,048       2,316,444  
Best Buy Co., Inc.
    43,817       1,397,324  
Big Lots, Inc.
    10,621       492,283  
Blue Nile, Inc. *
    1,752       49,757  
Brown Shoe Co., Inc.
    9,006       268,739  
Cabela’s, Inc. *
    7,777       474,553  
CarMax, Inc. *
    37,475       1,963,690  
Chico’s FAS, Inc.
    29,980       473,684  
Conn’s, Inc. *
    4,180       187,389  
Core-Mark Holding Co., Inc.
    2,998       144,384  
CST Brands, Inc.
    12,693       442,224  
Dick’s Sporting Goods, Inc.
    15,390       693,627  
Dillard’s, Inc., Class A
    5,996       685,463  
Dollar General Corp. *
    49,793       3,186,254  
Dollar Tree, Inc. *
    34,106       1,828,934  
DSW, Inc., Class A
    12,422       384,337  
Expedia, Inc.
    17,487       1,502,133  
Express, Inc. *
    13,983       242,465  
Family Dollar Stores, Inc.
    15,468       1,234,810  
Five Below, Inc. *
    6,172       250,336  
Foot Locker, Inc.
    26,982       1,513,960  
Francesca’s Holdings Corp. *
    7,850       109,900  
Fred’s, Inc., Class A
    4,956       70,524  
FTD Cos., Inc. *
    2,559       84,754  
GameStop Corp., Class A
    19,875       838,725  
Genesco, Inc. *
    4,497       356,612  
Genuine Parts Co.
    25,483       2,235,878  
GNC Holdings, Inc., Class A
    15,876       602,494  
Group 1 Automotive, Inc.
    4,497       360,480  
Groupon, Inc. *
    60,315       410,142  
Guess?, Inc.
    9,445       221,391  
Hibbett Sports, Inc. *
    3,592       163,185  
HomeAway, Inc. *
    9,466       314,271  
HSN, Inc.
    6,090       368,993  
J.C. Penney Co., Inc. *(a)
    53,184       574,387  
Kohl’s Corp.
    34,935       2,053,829  
L Brands, Inc.
    39,168       2,500,877  
Lands’ End, Inc. *
    1,556       53,651  
Liberty Interactive Corp., Class A *
    84,567       2,496,418  
Liberty TripAdvisor Holdings, Inc., Class A *
    12,164       435,106  
 
 
 
14 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Liberty Ventures, Series A *
    12,164       463,327  
Lithia Motors, Inc., Class A
    2,998       262,085  
LKQ Corp. *
    48,368       1,373,651  
Lowe’s Cos., Inc.
    164,927       8,660,317  
Lumber Liquidators Holdings, Inc. *
    3,670       209,997  
Macy’s, Inc.
    60,569       3,772,843  
Mattress Firm Holding Corp. *(a)
    2,670       152,964  
Monro Muffler Brake, Inc.
    4,707       243,587  
Murphy USA, Inc. *
    7,769       423,177  
Netflix, Inc. *
    9,694       4,630,242  
Nordstrom, Inc.
    24,525       1,698,356  
O’Reilly Automotive, Inc. *
    18,423       2,873,620  
Office Depot, Inc. *
    82,839       424,136  
Outerwall, Inc. *(a)
    4,570       269,310  
Penske Automotive Group, Inc.
    6,350       304,610  
PetSmart, Inc.
    18,131       1,297,636  
Pier 1 Imports, Inc.
    17,988       283,491  
Pool Corp.
    8,994       509,600  
Rent-A-Center, Inc.
    9,259       257,956  
Restoration Hardware Holdings, Inc. *(a)
    4,657       390,583  
Ross Stores, Inc.
    37,683       2,842,052  
Sally Beauty Holdings, Inc. *
    25,483       710,466  
Sears Holdings Corp. *(a)
    7,798       271,370  
Select Comfort Corp. *
    10,493       234,728  
Shutterfly, Inc. *
    6,012       306,672  
Signet Jewelers Ltd.
    13,491       1,590,184  
Sonic Automotive, Inc., Class A
    7,505       185,374  
Stage Stores, Inc.
    5,996       104,750  
Staples, Inc.
    96,815       1,130,799  
Target Corp.
    103,705       6,229,559  
The Buckle, Inc. (a)
    4,497       221,162  
The Cato Corp., Class A
    4,516       156,570  
The Children’s Place, Inc.
    3,392       182,354  
The Finish Line, Inc., Class A
    7,939       235,233  
The Gap, Inc.
    42,880       1,978,912  
The Home Depot, Inc.
    226,227       21,152,225  
The Men’s Wearhouse, Inc.
    8,994       485,946  
The Pep Boys-Manny, Moe & Jack *
    6,540       72,725  
The Priceline Group, Inc. *
    8,639       10,749,594  
The TJX Cos., Inc.
    120,166       7,163,095  
Tiffany & Co.
    19,534       1,971,762  
Tractor Supply Co.
    23,984       1,605,729  
TripAdvisor, Inc. *
    18,062       1,789,764  
Ulta Salon, Cosmetics & Fragrance, Inc. *
    10,493       1,021,074  
Urban Outfitters, Inc. *
    18,330       729,351  
Vitamin Shoppe, Inc. *
    5,996       234,983  
Williams-Sonoma, Inc.
    13,885       913,216  
                 
              155,121,152  
 
Semiconductors & Semiconductor Equipment 2.5%
Advanced Energy Industries, Inc. *
    5,056       97,328  
Advanced Micro Devices, Inc. *(a)
    99,144       413,430  
Altera Corp.
    53,964       1,907,088  
Amkor Technology, Inc. *
    22,745       236,548  
Analog Devices, Inc.
    51,644       2,640,041  
Applied Materials, Inc.
    203,897       4,711,040  
Applied Micro Circuits Corp. *
    10,695       90,587  
Atmel Corp. *
    74,950       664,057  
Avago Technologies Ltd.
    40,885       3,356,250  
Broadcom Corp., Class A
    90,324       3,556,959  
Brooks Automation, Inc.
    11,992       135,989  
Cabot Microelectronics Corp. *
    4,497       192,921  
Cavium, Inc. *
    7,681       431,519  
Cirrus Logic, Inc. *
    12,093       292,409  
Cree, Inc. *
    20,996       956,578  
Cypress Semiconductor Corp. *
    23,465       259,288  
Diodes, Inc. *
    5,996       152,598  
Entegris, Inc. *
    22,485       272,968  
Exar Corp. *
    7,925       79,012  
Fairchild Semiconductor International, Inc. *
    20,081       352,422  
First Solar, Inc. *
    11,457       798,324  
Freescale Semiconductor Ltd. *
    16,086       338,610  
GT Advanced Technologies, Inc. *(a)
    20,005       356,289  
Integrated Device Technology, Inc. *
    23,049       379,156  
Intel Corp.
    825,949       28,842,139  
International Rectifier Corp. *
    11,992       472,485  
Intersil Corp., Class A
    23,011       346,200  
KLA-Tencor Corp.
    28,481       2,176,518  
Kulicke & Soffa Industries, Inc. *
    13,491       198,183  
Lam Research Corp.
    29,999       2,157,228  
Lattice Semiconductor Corp. *
    18,712       140,527  
Linear Technology Corp.
    37,628       1,697,399  
Marvell Technology Group Ltd.
    66,752       928,520  
Maxim Integrated Products, Inc.
    48,062       1,484,635  
Micrel, Inc.
    7,660       95,980  
Microchip Technology, Inc.
    31,479       1,537,120  
Micron Technology, Inc. *
    173,020       5,640,452  
Microsemi Corp. *
    16,489       439,267  
MKS Instruments, Inc.
    8,994       305,256  
Monolithic Power Systems, Inc.
    4,955       236,750  
NVIDIA Corp.
    101,005       1,964,547  
OmniVision Technologies, Inc. *
    9,234       250,334  
ON Semiconductor Corp. *
    71,952       702,251  
PMC-Sierra, Inc. *
    35,976       265,503  
Power Integrations, Inc.
    4,525       270,504  
Rambus, Inc. *
    17,988       223,231  
RF Micro Devices, Inc. *
    58,461       729,009  
Semtech Corp. *
    11,992       312,452  
Silicon Image, Inc. *
    15,120       76,507  
Silicon Laboratories, Inc. *
    7,495       339,748  
Skyworks Solutions, Inc.
    31,479       1,783,600  
Spansion, Inc., Class A *
    7,660       170,818  
SunEdison, Inc. *
    40,527       892,810  
SunPower Corp. *
    12,389       473,508  
Synaptics, Inc. *
    5,996       492,272  
Teradyne, Inc.
    29,980       617,288  
Tessera Technologies, Inc.
    8,994       265,953  
Texas Instruments, Inc.
    180,644       8,703,428  
TriQuint Semiconductor, Inc. *
    26,982       557,583  
Ultratech, Inc. *
    5,996       155,057  
Veeco Instruments, Inc. *
    6,143       217,278  
Xilinx, Inc.
    44,579       1,883,463  
                 
              90,717,214  
 
 
 
See financial notes 15

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
Software & Services 9.9%
Accenture plc, Class A
    106,658       8,645,697  
ACI Worldwide, Inc. *
    18,558       361,324  
Activision Blizzard, Inc.
    79,993       1,883,035  
Acxiom Corp. *
    14,990       277,990  
Adobe Systems, Inc. *
    79,716       5,731,580  
Advent Software, Inc.
    5,996       193,731  
Akamai Technologies, Inc. *
    29,980       1,811,392  
Alliance Data Systems Corp. *
    8,642       2,287,019  
Amdocs Ltd.
    26,071       1,227,944  
ANSYS, Inc. *
    15,137       1,230,638  
AOL, Inc. *
    16,547       715,161  
Aspen Technology, Inc. *
    15,143       622,226  
Autodesk, Inc. *
    37,475       2,010,159  
Automatic Data Processing, Inc.
    79,641       6,648,431  
Bankrate, Inc. *
    5,155       72,376  
Blackbaud, Inc.
    10,493       408,073  
Blackhawk Network Holdings, Inc., Class B *
    6,666       183,115  
Blucora, Inc. *
    6,208       96,721  
Booz Allen Hamilton Holding Corp.
    8,252       183,029  
Bottomline Technologies (de), Inc. *
    7,495       211,059  
Broadridge Financial Solutions, Inc.
    21,007       893,638  
BroadSoft, Inc. *
    4,497       107,298  
CA, Inc.
    55,916       1,579,068  
CACI International, Inc., Class A *
    4,497       324,324  
Cadence Design Systems, Inc. *
    50,283       886,992  
Cardtronics, Inc. *
    7,495       266,072  
Cass Information Systems, Inc.
    1,739       81,594  
Citrix Systems, Inc. *
    30,303       2,129,089  
Cognizant Technology Solutions Corp., Class A *
    100,973       4,617,495  
CommVault Systems, Inc. *
    7,495       413,274  
Computer Sciences Corp.
    25,483       1,523,629  
Compuware Corp.
    38,974       364,407  
comScore, Inc. *
    5,178       198,369  
Comverse, Inc. *
    3,269       80,712  
Concur Technologies, Inc. *
    7,495       752,348  
Constant Contact, Inc. *
    5,549       172,962  
Convergys Corp.
    20,986       402,931  
Conversant, Inc. *
    13,491       371,542  
CoreLogic, Inc. *
    16,930       478,611  
Cornerstone OnDemand, Inc. *
    7,575       283,608  
CoStar Group, Inc. *
    4,497       650,941  
CSG Systems International, Inc.
    5,996       166,209  
Dealertrack Technologies, Inc. *
    6,996       313,141  
Demandware, Inc. *
    4,736       251,718  
Dice Holdings, Inc. *
    9,012       76,512  
Digital River, Inc. *
    6,601       100,797  
DST Systems, Inc.
    5,996       556,489  
eBay, Inc. *
    193,444       10,736,142  
Electronic Arts, Inc. *
    53,964       2,041,998  
Ellie Mae, Inc. *
    2,052       73,462  
Envestnet, Inc. *
    4,953       227,888  
EPAM Systems, Inc. *
    3,504       131,926  
Epiq Systems, Inc.
    5,056       73,565  
Equinix, Inc. *
    8,174       1,784,057  
Euronet Worldwide, Inc. *
    8,994       479,380  
EVERTEC, Inc.
    9,052       208,468  
ExlService Holdings, Inc. *
    4,497       122,633  
Facebook, Inc., Class A *
    284,400       21,278,808  
FactSet Research Systems, Inc.
    7,495       954,863  
Fair Isaac Corp.
    4,953       288,116  
Fidelity National Information Services, Inc.
    49,907       2,832,222  
FireEye, Inc. *
    5,054       157,382  
Fiserv, Inc. *
    44,998       2,901,021  
FleetCor Technologies, Inc. *
    12,153       1,746,265  
Forrester Research, Inc.
    1,952       75,855  
Fortinet, Inc. *
    21,064       543,662  
Gartner, Inc. *
    14,990       1,118,104  
Genpact Ltd. *
    21,439       373,039  
Global Cash Access Holdings, Inc. *
    10,564       82,505  
Global Eagle Entertainment, Inc. *
    15,280       192,834  
Global Payments, Inc.
    12,534       911,472  
Gogo, Inc. *(a)
    3,684       62,370  
Google, Inc., Class A *
    46,741       27,220,089  
Google, Inc., Class C *
    46,941       26,831,476  
Guidewire Software, Inc. *
    11,030       502,416  
Heartland Payment Systems, Inc.
    5,096       243,436  
IAC/InterActiveCorp
    13,491       938,839  
iGATE Corp. *
    6,447       241,247  
Infoblox, Inc. *
    8,110       109,080  
Informatica Corp. *
    17,089       581,966  
Interactive Intelligence Group, Inc. *
    1,952       83,565  
International Business Machines Corp.
    157,475       30,282,442  
Intuit, Inc.
    48,540       4,037,557  
j2 Global, Inc.
    7,616       407,075  
Jack Henry & Associates, Inc.
    14,990       866,572  
Leidos Holdings, Inc.
    11,385       428,645  
LinkedIn Corp., Class A *
    15,795       3,565,721  
LogMeIn, Inc. *
    3,452       145,951  
Manhattan Associates, Inc. *
    17,988       519,493  
ManTech International Corp., Class A
    7,640       221,407  
MasterCard, Inc., Class A
    168,339       12,761,780  
MAXIMUS, Inc.
    9,832       405,078  
Mentor Graphics Corp.
    15,902       346,823  
MICROS Systems, Inc. *
    13,491       916,983  
Microsoft Corp.
    1,248,510       56,719,809  
MicroStrategy, Inc., Class A *
    1,499       208,256  
Monotype Imaging Holdings, Inc.
    5,996       176,222  
Monster Worldwide, Inc. *
    16,320       94,166  
NetScout Systems, Inc. *
    5,009       230,765  
NetSuite, Inc. *
    4,544       398,236  
NeuStar, Inc., Class A *
    9,108       268,595  
NIC, Inc.
    8,994       168,548  
Nuance Communications, Inc. *
    39,613       673,817  
Oracle Corp.
    571,843       23,748,640  
Pandora Media, Inc. *
    27,130       733,595  
Paychex, Inc.
    53,964       2,247,601  
Pegasystems, Inc.
    6,240       138,528  
Progress Software Corp. *
    9,472       219,372  
Proofpoint, Inc. *
    4,756       189,669  
PROS Holdings, Inc. *
    3,504       89,667  
PTC, Inc. *
    19,714       762,735  
Qlik Technologies, Inc. *
    14,648       413,513  
 
 
 
16 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
QuinStreet, Inc. *
    9,012       43,167  
Rackspace Hosting, Inc. *
    17,988       622,385  
RealPage, Inc. *
    8,488       136,827  
Red Hat, Inc. *
    31,479       1,917,701  
Rovi Corp. *
    18,326       423,880  
Sabre Corp.
    8,090       147,481  
Salesforce.com, Inc. *
    93,297       5,512,920  
Sapient Corp. *
    17,057       247,497  
Science Applications International Corp.
    6,506       300,057  
ServiceNow, Inc. *
    16,057       981,564  
Shutterstock, Inc. *
    1,742       123,334  
SolarWinds, Inc. *
    9,571       409,543  
Solera Holdings, Inc.
    10,893       664,037  
Splunk, Inc. *
    14,550       784,972  
SPS Commerce, Inc. *
    2,385       133,417  
SS&C Technologies Holdings, Inc. *
    9,746       441,104  
Sykes Enterprises, Inc. *
    6,508       136,278  
Symantec Corp.
    119,004       2,889,417  
Synchronoss Technologies, Inc. *
    5,996       264,843  
Synopsys, Inc. *
    24,237       991,293  
Syntel, Inc. *
    1,909       170,607  
Tableau Software, Inc., Class A *
    5,586       365,827  
Take-Two Interactive Software, Inc. *
    14,990       352,415  
Tangoe, Inc. *
    4,856       67,596  
TeleTech Holdings, Inc. *
    6,066       162,872  
Teradata Corp. *
    26,487       1,209,661  
The Ultimate Software Group, Inc. *
    4,497       661,014  
The Western Union Co.
    88,332       1,543,160  
TIBCO Software, Inc. *
    24,572       512,080  
TiVo, Inc. *
    22,485       316,814  
Total System Services, Inc.
    26,018       818,526  
Trulia, Inc. *(a)
    6,232       384,078  
Twitter, Inc. *
    13,088       651,128  
Tyler Technologies, Inc. *
    5,996       534,004  
Unisys Corp. *
    7,495       175,458  
United Online, Inc.
    1,918       24,493  
Vantiv, Inc., Class A *
    24,247       758,446  
VeriFone Systems, Inc. *
    20,381       711,705  
Verint Systems, Inc. *
    8,166       409,362  
VeriSign, Inc. *
    24,118       1,376,535  
Virtusa Corp. *
    3,604       122,716  
Visa, Inc., Class A
    83,115       17,663,600  
VMware, Inc., Class A *
    13,683       1,348,870  
Web.com Group, Inc. *
    5,996       113,624  
WebMD Health Corp. *
    7,907       382,303  
WEX, Inc. *
    6,143       698,152  
Workday, Inc., Class A *
    5,003       455,623  
Xerox Corp.
    181,457       2,505,921  
Yahoo! Inc. *
    159,349       6,136,530  
Yelp, Inc. *
    9,453       779,116  
Zillow, Inc., Class A *
    3,494       501,249  
Zynga, Inc., Class A *
    99,682       288,579  
                 
              360,755,663  
 
Technology Hardware & Equipment 6.2%
3D Systems Corp. *(a)
    17,528       937,923  
ADTRAN, Inc.
    10,493       242,178  
Amphenol Corp., Class A
    26,982       2,779,416  
Anixter International, Inc.
    4,544       405,461  
Apple, Inc.
    998,095       102,304,737  
ARRIS Group, Inc. *
    22,485       688,266  
Arrow Electronics, Inc. *
    17,130       1,066,342  
Aruba Networks, Inc. *
    16,489       352,040  
Avnet, Inc.
    25,483       1,134,248  
AVX Corp.
    10,551       145,393  
Badger Meter, Inc.
    1,985       103,379  
Belden, Inc.
    8,994       657,192  
Benchmark Electronics, Inc. *
    9,182       226,153  
Black Box Corp.
    2,052       48,530  
Brocade Communications Systems, Inc.
    75,315       794,573  
CalAmp Corp. *
    6,540       126,091  
CDW Corp.
    14,745       487,175  
Checkpoint Systems, Inc. *
    7,925       109,761  
Ciena Corp. *
    14,990       310,143  
Cisco Systems, Inc.
    848,800       21,211,512  
Cognex Corp. *
    14,990       629,280  
Coherent, Inc. *
    4,497       289,922  
CommScope Holding Co., Inc. *
    14,626       376,766  
Comtech Telecommunications Corp.
    3,140       119,446  
Corning, Inc.
    216,076       4,507,345  
Cray, Inc. *
    5,155       145,423  
Daktronics, Inc.
    7,760       102,122  
Diebold, Inc.
    10,493       398,419  
Dolby Laboratories, Inc., Class A *
    7,937       369,705  
DTS, Inc. *
    3,104       74,155  
EchoStar Corp., Class A *
    6,270       316,196  
Electro Rent Corp.
    3,604       54,529  
Electronics For Imaging, Inc. *
    7,495       330,080  
EMC Corp.
    341,429       10,082,398  
F5 Networks, Inc. *
    12,637       1,569,389  
Fabrinet *
    6,008       97,270  
FARO Technologies, Inc. *
    4,497       260,871  
FEI Co.
    7,067       593,911  
Finisar Corp. *
    14,990       304,447  
FLIR Systems, Inc.
    25,483       861,071  
Harmonic, Inc. *
    24,160       158,731  
Harris Corp.
    18,282       1,305,152  
Hewlett-Packard Co.
    312,792       11,886,096  
II-VI, Inc. *
    12,012       167,688  
Infinera Corp. *
    29,980       317,188  
Ingram Micro, Inc., Class A *
    25,483       734,675  
Insight Enterprises, Inc. *
    7,495       196,669  
InterDigital, Inc.
    7,495       332,553  
InvenSense, Inc. *(a)
    10,625       274,656  
IPG Photonics Corp. *
    4,591       315,310  
Itron, Inc. *
    5,996       253,151  
Ixia *
    9,033       86,897  
Jabil Circuit, Inc.
    32,978       711,665  
JDS Uniphase Corp. *
    40,473       467,463  
Juniper Networks, Inc.
    78,021       1,809,307  
Knowles Corp. *
    13,855       456,107  
Lexmark International, Inc., Class A
    10,169       514,145  
Littelfuse, Inc.
    2,998       275,546  
Measurement Specialties, Inc. *
    2,085       178,935  
Methode Electronics, Inc.
    6,608       222,822  
Motorola Solutions, Inc.
    38,624       2,294,266  
 
 
 
See financial notes 17

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
MTS Systems Corp.
    1,930       137,184  
National Instruments Corp.
    16,489       546,610  
NCR Corp. *
    25,483       870,499  
NetApp, Inc.
    54,040       2,278,326  
NETGEAR, Inc. *
    5,996       199,187  
Newport Corp. *
    6,108       115,258  
OSI Systems, Inc. *
    3,045       212,419  
Palo Alto Networks, Inc. *
    7,108       604,109  
Park Electrochemical Corp.
    3,370       94,832  
Plantronics, Inc.
    8,994       429,284  
Plexus Corp. *
    5,039       207,556  
Polycom, Inc. *
    22,615       299,649  
QLogic Corp. *
    9,804       88,726  
QUALCOMM, Inc.
    278,047       21,159,377  
Quantum Corp. *
    46,712       58,390  
Riverbed Technology, Inc. *
    26,456       498,431  
Rofin-Sinar Technologies, Inc. *
    4,690       112,372  
Rogers Corp. *
    1,985       119,457  
SanDisk Corp.
    37,093       3,633,630  
Sanmina Corp. *
    11,992       281,572  
ScanSource, Inc. *
    3,574       137,813  
Seagate Technology plc
    53,657       3,357,855  
Sonus Networks, Inc. *
    42,489       160,184  
Super Micro Computer, Inc. *
    6,040       147,920  
SYNNEX Corp. *
    3,454       240,882  
TE Connectivity Ltd.
    69,052       4,328,179  
Tech Data Corp. *
    7,495       505,913  
Trimble Navigation Ltd. *
    41,972       1,395,989  
TTM Technologies, Inc. *
    9,559       73,126  
Ubiquiti Networks, Inc. *(a)
    5,101       231,381  
Universal Display Corp. *
    6,538       227,130  
ViaSat, Inc. *
    7,495       426,765  
Vishay Intertechnology, Inc.
    22,956       367,296  
Western Digital Corp.
    35,171       3,622,965  
Zebra Technologies Corp., Class A *
    8,994       701,802  
                 
              226,444,348  
 
Telecommunication Services 2.2%
AT&T, Inc.
    858,408       30,009,944  
Atlantic Tele-Network, Inc.
    2,998       175,803  
CenturyLink, Inc.
    98,173       4,024,111  
Cincinnati Bell, Inc. *
    34,910       128,120  
Cogent Communications Holdings, Inc.
    7,495       259,777  
Consolidated Communications Holdings, Inc.
    4,497       109,637  
Frontier Communications Corp.
    163,391       1,111,059  
General Communication, Inc., Class A *
    10,582       118,942  
Globalstar, Inc. *
    40,486       161,134  
Level 3 Communications, Inc. *
    26,982       1,213,111  
Premiere Global Services, Inc. *
    10,493       138,193  
SBA Communications Corp., Class A *
    21,267       2,345,537  
Shenandoah Telecommunications Co.
    6,340       175,111  
Spok Holdings, Inc.
    9,110       134,828  
Sprint Corp. *
    141,526       793,961  
T-Mobile US, Inc. *
    42,102       1,266,428  
Telephone & Data Systems, Inc.
    19,487       513,287  
tw telecom, Inc. *
    25,483       1,045,695  
United States Cellular Corp. *
    2,998       113,084  
Verizon Communications, Inc.
    684,790       34,116,238  
Vonage Holdings Corp. *
    58,515       201,877  
Windstream Holdings, Inc. (a)
    97,435       1,101,015  
                 
              79,256,892  
 
Transportation 2.2%
Alaska Air Group, Inc.
    23,984       1,111,419  
Allegiant Travel Co.
    2,998       368,334  
AMERCO
    967       268,642  
American Airlines Group, Inc.
    119,161       4,636,555  
ArcBest Corp.
    4,846       173,971  
Avis Budget Group, Inc. *
    20,549       1,387,263  
C.H. Robinson Worldwide, Inc.
    24,744       1,689,025  
Con-way, Inc.
    9,080       465,350  
CSX Corp.
    166,911       5,159,219  
Delta Air Lines, Inc.
    141,154       5,586,875  
Expeditors International of Washington, Inc.
    34,477       1,423,900  
FedEx Corp.
    45,939       6,793,459  
Forward Air Corp.
    5,996       277,555  
Genesee & Wyoming, Inc., Class A *
    7,495       736,983  
Hawaiian Holdings, Inc. *
    9,858       153,785  
Heartland Express, Inc.
    8,000       187,600  
Hertz Global Holdings, Inc. *
    73,751       2,179,342  
Hub Group, Inc., Class A *
    6,124       266,333  
J.B. Hunt Transport Services, Inc.
    15,728       1,188,250  
JetBlue Airways Corp. *
    46,469       568,316  
Kansas City Southern
    18,012       2,077,864  
Kirby Corp. *
    8,994       1,072,894  
Knight Transportation, Inc.
    7,495       189,998  
Landstar System, Inc.
    8,994       610,378  
Matson, Inc.
    7,495       202,290  
Norfolk Southern Corp.
    52,529       5,620,603  
Old Dominion Freight Line, Inc. *
    11,051       736,770  
Roadrunner Transportation Systems, Inc. *
    3,504       88,231  
Ryder System, Inc.
    8,994       812,518  
Saia, Inc. *
    6,812       323,366  
SkyWest, Inc.
    7,930       71,132  
Southwest Airlines Co.
    115,758       3,705,414  
Spirit Airlines, Inc. *
    14,204       999,820  
Swift Transportation Co. *
    18,537       392,614  
Union Pacific Corp.
    150,094       15,800,395  
United Continental Holdings, Inc. *
    60,142       2,863,361  
United Parcel Service, Inc., Class B
    116,348       11,324,151  
Werner Enterprises, Inc.
    6,584       163,942  
Wesco Aircraft Holdings, Inc. *
    7,771       142,520  
XPO Logistics, Inc. *
    8,450       261,696  
                 
              82,082,133  
 
Utilities 3.0%
AES Corp.
    105,341       1,599,076  
AGL Resources, Inc.
    18,585       990,766  
ALLETE, Inc.
    7,495       364,782  
Alliant Energy Corp.
    17,988       1,052,118  
Ameren Corp.
    39,432       1,576,886  
 
 
 
18 See financial notes

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
American Electric Power Co., Inc.
    80,946       4,346,800  
American States Water Co.
    5,996       193,671  
American Water Works Co., Inc.
    28,484       1,441,575  
Aqua America, Inc.
    27,804       695,378  
Atmos Energy Corp.
    18,046       912,406  
Avista Corp.
    11,992       389,260  
Black Hills Corp.
    6,520       350,320  
California Water Service Group
    6,384       155,514  
Calpine Corp. *
    64,463       1,532,285  
CenterPoint Energy, Inc.
    69,513       1,726,703  
Chesapeake Utilities Corp.
    2,170       149,665  
Cleco Corp.
    9,394       530,009  
CMS Energy Corp.
    44,970       1,373,384  
Connecticut Water Service, Inc.
    3,252       107,153  
Consolidated Edison, Inc.
    47,968       2,776,868  
Dominion Resources, Inc.
    97,773       6,865,620  
DTE Energy Co.
    29,165       2,282,161  
Duke Energy Corp.
    117,517       8,695,083  
Dynegy, Inc. *
    16,721       546,442  
Edison International
    52,971       3,132,705  
El Paso Electric Co.
    7,495       294,853  
Entergy Corp.
    29,980       2,320,752  
Exelon Corp.
    141,286       4,721,778  
FirstEnergy Corp.
    69,034       2,363,724  
Great Plains Energy, Inc.
    24,490       628,658  
Hawaiian Electric Industries, Inc. (a)
    14,990       380,596  
IDACORP, Inc.
    8,994       510,140  
Integrys Energy Group, Inc.
    12,392       841,293  
ITC Holdings Corp.
    29,525       1,102,759  
MDU Resources Group, Inc.
    30,486       954,517  
MGE Energy, Inc.
    4,989       200,707  
Middlesex Water Co.
    3,270       67,133  
National Fuel Gas Co.
    13,577       1,037,826  
New Jersey Resources Corp.
    7,495       391,464  
NextEra Energy, Inc.
    72,366       7,124,433  
NiSource, Inc.
    50,207       1,991,712  
Northeast Utilities
    51,585       2,367,236  
Northwest Natural Gas Co.
    5,996       272,578  
NorthWestern Corp.
    5,996       289,487  
NRG Energy, Inc.
    56,854       1,749,966  
NRG Yield, Inc., Class A
    6,278       341,460  
OGE Energy Corp.
    30,980       1,162,370  
ONE Gas, Inc.
    8,434       315,685  
Ormat Technologies, Inc.
    6,411       176,495  
Otter Tail Corp.
    4,853       138,262  
Pattern Energy Group, Inc.
    6,312       203,467  
Pepco Holdings, Inc.
    42,264       1,164,796  
PG&E Corp.
    76,463       3,554,000  
Piedmont Natural Gas Co., Inc.
    11,093       414,878  
Pinnacle West Capital Corp.
    17,988       1,024,417  
PNM Resources, Inc.
    13,491       353,599  
Portland General Electric Co.
    11,992       413,364  
PPL Corp.
    108,216       3,747,520  
Public Service Enterprise Group, Inc.
    83,944       3,138,666  
Questar Corp.
    28,634       673,185  
SCANA Corp.
    24,036       1,248,430  
Sempra Energy
    37,475       3,971,226  
SJW Corp.
    6,861       187,580  
South Jersey Industries, Inc.
    5,996       347,468  
Southwest Gas Corp.
    7,495       391,314  
TECO Energy, Inc.
    38,791       702,117  
The Empire District Electric Co. (a)
    6,352       164,199  
The Laclede Group, Inc.
    7,935       392,386  
The Southern Co.
    147,564       6,551,842  
UGI Corp.
    17,988       953,004  
UIL Holdings Corp.
    9,495       353,689  
Unitil Corp.
    4,957       161,549  
Vectren Corp.
    13,491       556,234  
Westar Energy, Inc.
    19,973       737,603  
WGL Holdings, Inc.
    8,994       391,149  
Wisconsin Energy Corp.
    38,974       1,766,691  
Xcel Energy, Inc.
    82,499       2,644,093  
                 
              111,740,980  
                 
Total Common Stock
(Cost $2,788,904,595)     3,644,576,745  
         
                 
                 
 
 Other Investment Companies 0.5% of net assets
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    2,472,527       2,472,527  
 
Securities Lending Collateral 0.4%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    16,438,020       16,438,020  
                 
Total Other Investment Companies
(Cost $18,910,547)     18,910,547  
         
                 
                 
 
 Rights 0.0% of net assets
 
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(c)(d)
    8,528       21,491  
                 
Total Rights
(Cost $21,491)     21,491  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
Rate, Maturity Date   ($)   ($)
 
 Short-Term Investments 0.0% of net assets
 
U.S. Treasury Obligations 0.0%
                 
 
U.S. Treasury Bills
0.01%, 09/18/14 (f)(g)
    100,000       99,999  
0.03%, 09/18/14 (f)(g)
    75,000       74,999  
                 
Total Short-Term Investments
(Cost $174,998)     174,998  
         
 
End of Investments
 
 
 
See financial notes 19

Table of Contents

 
 Schwab U.S. Broad Market ETF
 

 
Portfolio Holdings continued
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,808,455,447 and the unrealized appreciation and depreciation were $871,220,916 and ($15,992,582), respectively, with a net unrealized appreciation of $855,228,334.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $17,065,535.
(b) Issuer is affiliated with the fund’s adviser.
(c) Illiquid security. At the period end, the value of these amounted to $21,491 or 0.0% of net assets.
(d) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(e) The rate shown is the 7-day yield.
(f) The rate shown is the purchase yield.
(g) All or a portion of this security is held as collateral for open futures contracts.
 
     
CVR —
  Contingent Value Rights
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
S&P 500 Index, e-mini, Long, expires 09/19/14
    35       3,502,450       19,758  
 
 
 
20 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .7%   Common Stock     2,468,449,443       3,183,461,956  
  0 .3%   Other Investment Companies     8,789,999       8,859,615  
  0 .0%   Short-Term Investment     100,000       100,000  
 
 
  100 .0%   Total Investments     2,477,339,442       3,192,421,571  
  (0 .0)%   Other Assets and
Liabilities, Net 		            (777,093 )
 
 
  100 .0%   Net Assets             3,191,644,478  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.7% of net assets
 
Automobiles & Components 1.3%
Autoliv, Inc.
    15,505       1,607,714  
BorgWarner, Inc.
    36,476       2,268,442  
Delphi Automotive plc
    45,393       3,158,445  
Ford Motor Co.
    643,119       11,196,702  
General Motors Co.
    216,078       7,519,514  
Harley-Davidson, Inc.
    35,961       2,285,681  
Johnson Controls, Inc.
    110,497       5,393,359  
Lear Corp.
    12,843       1,298,813  
Tesla Motors, Inc. *
    13,702       3,695,429  
TRW Automotive Holdings Corp. *
    18,191       1,751,611  
                 
              40,175,710  
 
Banks 5.6%
Bank of America Corp.
    1,722,056       27,707,881  
BB&T Corp.
    117,726       4,394,712  
BOK Financial Corp.
    3,000       202,140  
CIT Group, Inc.
    32,822       1,574,143  
Citigroup, Inc.
    495,497       25,592,420  
Comerica, Inc.
    29,425       1,481,254  
Cullen/Frost Bankers, Inc.
    8,303       652,616  
Fifth Third Bancorp
    137,450       2,804,667  
First Republic Bank
    19,538       955,408  
Hudson City Bancorp, Inc.
    73,483       725,277  
Huntington Bancshares, Inc.
    131,700       1,296,587  
JPMorgan Chase & Co.
    620,892       36,912,029  
KeyCorp
    146,648       1,995,879  
M&T Bank Corp. (a)
    21,763       2,690,560  
New York Community Bancorp, Inc.
    70,612       1,126,261  
Ocwen Financial Corp. *
    18,638       520,746  
People’s United Financial, Inc.
    50,704       758,025  
Regions Financial Corp.
    234,297       2,378,115  
SunTrust Banks, Inc.
    88,029       3,352,144  
The PNC Financial Services Group, Inc.
    87,985       7,456,729  
U.S. Bancorp
    295,943       12,512,470  
Wells Fargo & Co.
    786,353       40,449,998  
Zions Bancorp
    31,021       903,952  
                 
              178,444,013  
 
Capital Goods 7.6%
3M Co.
    102,512       14,761,728  
AGCO Corp.
    14,198       693,430  
Allison Transmission Holdings, Inc.
    26,774       821,426  
AMETEK, Inc.
    39,457       2,088,854  
B/E Aerospace, Inc. *
    15,427       1,307,284  
Carlisle Cos., Inc.
    9,781       810,845  
Caterpillar, Inc.
    101,702       11,092,637  
Chicago Bridge & Iron Co. N.V.
    18,308       1,161,093  
Colfax Corp. *
    15,265       971,007  
Cummins, Inc.
    28,130       4,081,944  
Danaher Corp.
    97,935       7,502,800  
Deere & Co.
    59,955       5,041,616  
Donaldson Co., Inc.
    21,564       902,669  
Dover Corp.
    27,164       2,386,901  
Eaton Corp. plc
    77,575       5,415,511  
Emerson Electric Co.
    114,872       7,354,105  
Fastenal Co.
    44,126       1,998,025  
Flowserve Corp.
    22,050       1,673,374  
Fluor Corp.
    26,642       1,968,577  
Fortune Brands Home & Security, Inc.
    27,103       1,171,121  
General Dynamics Corp.
    52,632       6,486,894  
General Electric Co.
    1,638,419       42,566,126  
Honeywell International, Inc.
    127,967       12,186,297  
Hubbell, Inc., Class B
    8,549       1,033,574  
IDEX Corp.
    12,654       973,599  
Illinois Tool Works, Inc.
    63,243       5,578,665  
Ingersoll-Rand plc
    43,427       2,614,305  
Jacobs Engineering Group, Inc. *
    21,511       1,159,658  
Joy Global, Inc.
    17,290       1,091,864  
KBR, Inc.
    23,940       527,159  
L-3 Communications Holdings, Inc.
    14,002       1,539,520  
Lincoln Electric Holdings, Inc.
    13,300       945,630  
Lockheed Martin Corp.
    44,026       7,660,524  
Masco Corp.
    58,528       1,373,652  
MSC Industrial Direct Co., Inc., Class A
    7,540       679,656  
Nordson Corp.
    9,595       777,771  
Northrop Grumman Corp.
    35,508       4,517,328  
Oshkosh Corp.
    13,691       680,169  
Owens Corning
    16,803       604,908  
PACCAR, Inc.
    57,190       3,592,104  
Pall Corp.
    17,916       1,511,573  
Parker-Hannifin Corp.
    23,982       2,769,921  
Pentair plc
    32,031       2,180,350  
Precision Castparts Corp.
    23,980       5,852,559  
Quanta Services, Inc. *
    35,173       1,278,187  
Raytheon Co.
    51,319       4,944,072  
Rockwell Automation, Inc.
    23,211       2,706,635  
Rockwell Collins, Inc.
    21,606       1,663,230  
Roper Industries, Inc.
    15,960       2,402,938  
 
 
 
See financial notes 21

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Sensata Technologies Holding N.V. *
    26,819       1,318,690  
Snap-on, Inc.
    9,316       1,164,034  
SPX Corp.
    7,103       739,067  
Stanley Black & Decker, Inc.
    25,554       2,338,191  
Textron, Inc.
    45,290       1,721,020  
The Boeing Co.
    109,171       13,842,883  
The Timken Co.
    12,354       559,513  
TransDigm Group, Inc.
    8,200       1,541,518  
United Rentals, Inc. *
    17,039       2,004,638  
United Technologies Corp.
    137,164       14,810,969  
Valmont Industries, Inc. (a)
    4,211       592,698  
Veritiv Corp. *
    7,845       349,259  
W.W. Grainger, Inc.
    9,764       2,403,897  
WABCO Holdings, Inc. *
    9,756       1,006,819  
Wabtec Corp.
    15,537       1,295,164  
Xylem, Inc.
    29,368       1,094,252  
                 
              241,886,427  
 
Commercial & Professional Services 0.8%
Cintas Corp.
    16,344       1,080,992  
Copart, Inc. *
    18,071       622,185  
Equifax, Inc.
    19,498       1,535,662  
IHS, Inc., Class A *
    9,749       1,388,940  
Iron Mountain, Inc.
    25,712       925,118  
Manpowergroup, Inc.
    12,368       959,509  
Nielsen N.V. (a)
    49,352       2,319,050  
Republic Services, Inc.
    43,384       1,706,293  
Robert Half International, Inc.
    20,862       1,047,481  
Rollins, Inc.
    12,337       367,026  
Stericycle, Inc. *
    13,888       1,650,589  
The ADT Corp.
    32,128       1,184,238  
The Dun & Bradstreet Corp.
    6,721       788,911  
Towers Watson & Co., Class A
    10,046       1,101,343  
Tyco International Ltd.
    74,480       3,323,298  
Verisk Analytics, Inc., Class A *
    24,075       1,545,374  
Waste Connections, Inc.
    21,606       1,059,990  
Waste Management, Inc.
    69,901       3,283,250  
                 
              25,889,249  
 
Consumer Durables & Apparel 1.4%
Carter’s, Inc.
    9,468       783,761  
Coach, Inc.
    45,331       1,669,541  
D.R. Horton, Inc.
    52,433       1,136,747  
Fossil Group, Inc. *
    7,472       756,839  
Garmin Ltd.
    19,521       1,060,576  
Hanesbrands, Inc.
    16,280       1,671,630  
Hasbro, Inc.
    18,620       980,436  
Jarden Corp. *
    21,359       1,277,055  
Leggett & Platt, Inc.
    22,610       793,385  
Lennar Corp., Class A
    31,178       1,221,554  
Lululemon Athletica, Inc. *
    16,642       664,515  
Mattel, Inc.
    56,163       1,937,062  
Michael Kors Holdings Ltd. *
    28,666       2,296,720  
Mohawk Industries, Inc. *
    9,659       1,410,407  
Newell Rubbermaid, Inc.
    47,219       1,582,781  
NIKE, Inc., Class B
    120,761       9,485,777  
NVR, Inc. *
    584       685,143  
Polaris Industries, Inc.
    11,033       1,603,977  
PulteGroup, Inc.
    57,276       1,100,845  
PVH Corp.
    13,371       1,560,931  
Ralph Lauren Corp.
    9,535       1,613,322  
Toll Brothers, Inc. *
    24,609       875,834  
Tupperware Brands Corp.
    7,494       549,010  
Under Armour, Inc., Class A *
    24,756       1,692,320  
VF Corp.
    56,292       3,609,443  
Whirlpool Corp.
    12,540       1,918,871  
                 
              43,938,482  
 
Consumer Services 1.9%
Aramark
    11,656       301,890  
Burger King Worldwide, Inc.
    8,463       271,155  
Carnival Corp.
    70,048       2,653,418  
Chipotle Mexican Grill, Inc. *
    5,085       3,450,935  
Darden Restaurants, Inc.
    20,402       965,423  
Dunkin’ Brands Group, Inc.
    16,763       729,861  
Extended Stay America, Inc.
    12,494       298,107  
H&R Block, Inc.
    43,176       1,447,691  
Hilton Worldwide Holdings, Inc. *
    48,851       1,236,907  
Hyatt Hotels Corp., Class A *
    9,729       594,345  
International Game Technology
    41,740       703,736  
Las Vegas Sands Corp.
    62,046       4,126,680  
Marriott International, Inc., Class A
    36,412       2,526,993  
McDonald’s Corp.
    160,942       15,083,484  
MGM Resorts International *
    53,505       1,309,267  
Norwegian Cruise Line Holdings Ltd. *
    15,665       521,801  
Panera Bread Co., Class A *
    4,466       669,632  
Penn National Gaming, Inc. *
    33,482       378,012  
Royal Caribbean Cruises Ltd.
    25,896       1,651,129  
Starbucks Corp.
    122,985       9,569,463  
Starwood Hotels & Resorts Worldwide, Inc.
    31,044       2,624,460  
Wyndham Worldwide Corp.
    21,376       1,730,173  
Wynn Resorts Ltd.
    12,872       2,482,751  
Yum! Brands, Inc.
    71,857       5,204,603  
                 
              60,531,916  
 
Diversified Financials 4.9%
Affiliated Managers Group, Inc. *
    9,698       2,047,733  
Ally Financial, Inc. *
    15,578       383,219  
American Express Co.
    149,053       13,347,696  
Ameriprise Financial, Inc.
    31,420       3,951,379  
Berkshire Hathaway, Inc., Class B *
    295,102       40,502,750  
BlackRock, Inc.
    20,224       6,684,639  
Capital One Financial Corp.
    93,955       7,709,947  
CME Group, Inc.
    50,587       3,872,435  
Discover Financial Services
    77,685       4,845,213  
Eaton Vance Corp.
    20,014       783,748  
FNFV Group *
    14,759       221,090  
Franklin Resources, Inc.
    65,196       3,684,878  
Intercontinental Exchange, Inc.
    18,944       3,580,416  
Invesco Ltd.
    70,024       2,859,780  
Legg Mason, Inc.
    16,256       801,746  
Leucadia National Corp.
    50,084       1,248,594  
LPL Financial Holdings, Inc.
    12,702       618,460  
McGraw Hill Financial, Inc.
    43,911       3,562,499  
Moody’s Corp.
    31,453       2,943,057  
Morgan Stanley
    228,469       7,838,771  
MSCI, Inc. *
    20,466       944,301  
 
 
 
22 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Navient Corp.
    69,759       1,251,477  
Northern Trust Corp.
    36,218       2,511,718  
Raymond James Financial, Inc.
    19,454       1,062,967  
Santander Consumer USA Holdings, Inc.
    12,281       228,672  
SEI Investments Co.
    23,284       882,347  
SLM Corp.
    69,759       618,065  
State Street Corp.
    69,612       5,014,152  
T. Rowe Price Group, Inc.
    42,910       3,475,495  
TD Ameritrade Holding Corp.
    37,842       1,252,949  
The Bank of New York Mellon Corp.
    184,870       7,243,207  
The Charles Schwab Corp. (b)
    191,618       5,463,029  
The Goldman Sachs Group, Inc.
    68,709       12,306,469  
The NASDAQ OMX Group, Inc.
    20,678       898,873  
Voya Financial, Inc.
    22,283       871,043  
                 
              155,512,814  
 
Energy 10.1%
Anadarko Petroleum Corp.
    81,834       9,221,873  
Antero Resources Corp. *
    5,753       332,811  
Apache Corp.
    63,074       6,422,825  
Baker Hughes, Inc.
    70,795       4,894,766  
Cabot Oil & Gas Corp.
    69,201       2,321,001  
Cameron International Corp. *
    33,280       2,473,702  
Cheniere Energy, Inc. *
    35,409       2,841,926  
Chesapeake Energy Corp.
    80,641       2,193,435  
Chevron Corp.
    310,477       40,191,248  
Cimarex Energy Co.
    13,743       1,994,934  
Cobalt International Energy, Inc. *
    47,337       726,623  
Concho Resources, Inc. *
    17,928       2,546,493  
ConocoPhillips
    200,455       16,280,955  
CONSOL Energy, Inc.
    35,999       1,450,040  
Continental Resources, Inc. *
    6,814       1,099,030  
Core Laboratories N.V.
    7,084       1,119,201  
CVR Energy, Inc. (a)
    5,521       274,007  
Denbury Resources, Inc.
    59,045       1,016,755  
Devon Energy Corp.
    61,615       4,647,003  
Diamond Offshore Drilling, Inc. (a)
    10,940       480,704  
Dresser-Rand Group, Inc. *
    12,088       837,698  
Ensco plc, Class A
    37,264       1,881,087  
EOG Resources, Inc.
    90,444       9,937,987  
EQT Corp.
    23,940       2,371,496  
Exxon Mobil Corp.
    701,747       69,795,757  
FMC Technologies, Inc. *
    38,570       2,385,169  
Halliburton Co.
    138,883       9,389,880  
Helmerich & Payne, Inc.
    18,760       1,970,738  
Hess Corp.
    44,347       4,483,482  
HollyFrontier Corp.
    33,657       1,683,860  
Kinder Morgan, Inc.
    108,214       4,356,696  
Marathon Oil Corp.
    113,509       4,732,190  
Marathon Petroleum Corp.
    48,470       4,411,255  
Murphy Oil Corp.
    28,188       1,760,904  
Nabors Industries Ltd.
    41,652       1,133,351  
National Oilwell Varco, Inc.
    69,869       6,038,778  
Noble Corp. plc
    40,184       1,143,637  
Noble Energy, Inc.
    59,556       4,296,370  
Oasis Petroleum, Inc. *
    15,107       743,113  
Occidental Petroleum Corp.
    128,663       13,346,213  
Oceaneering International, Inc.
    17,291       1,202,762  
Oil States International, Inc. *
    8,612       555,905  
ONEOK, Inc.
    33,568       2,356,473  
Paragon Offshore plc *
    39,293       366,211  
Peabody Energy Corp.
    43,964       698,148  
Phillips 66
    92,242       8,026,899  
Pioneer Natural Resources Co.
    22,961       4,790,813  
QEP Resources, Inc.
    28,031       997,063  
Range Resources Corp.
    26,600       2,090,494  
Rowan Cos. plc, Class A
    21,450       650,364  
Schlumberger Ltd.
    212,617       23,311,328  
Seventy Seven Energy, Inc. *
    11,208       263,052  
SM Energy Co.
    10,640       947,386  
Southwestern Energy Co. *
    58,770       2,420,148  
Spectra Energy Corp.
    111,059       4,626,718  
Superior Energy Services, Inc.
    25,270       905,677  
Tesoro Corp.
    23,087       1,494,652  
The Williams Cos., Inc.
    120,377       7,155,209  
Transocean Ltd. (a)
    54,560       2,108,744  
Valero Energy Corp.
    86,917       4,705,686  
Weatherford International plc *
    124,473       2,948,765  
Whiting Petroleum Corp. *
    18,798       1,741,823  
                 
              323,593,313  
 
Food & Staples Retailing 2.0%
Costco Wholesale Corp.
    71,251       8,627,071  
CVS Caremark Corp.
    192,415       15,287,372  
Safeway, Inc.
    36,585       1,272,427  
Sprouts Farmers Market, Inc. *
    14,895       460,851  
Sysco Corp.
    96,164       3,637,884  
The Kroger Co.
    82,795       4,220,889  
Wal-Mart Stores, Inc.
    263,458       19,891,079  
Walgreen Co.
    142,329       8,613,751  
Whole Foods Market, Inc.
    59,941       2,346,091  
                 
              64,357,415  
 
Food, Beverage & Tobacco 4.8%
Altria Group, Inc.
    325,385       14,017,586  
Archer-Daniels-Midland Co.
    106,930       5,331,530  
Brown-Forman Corp., Class B
    25,895       2,399,431  
Bunge Ltd.
    23,504       1,989,614  
Campbell Soup Co.
    28,357       1,270,961  
Coca-Cola Enterprises, Inc.
    40,003       1,911,343  
ConAgra Foods, Inc.
    68,242       2,197,392  
Constellation Brands, Inc., Class A *
    26,672       2,322,864  
Dr. Pepper Snapple Group, Inc.
    32,134       2,021,871  
Flowers Foods, Inc.
    29,745       582,407  
General Mills, Inc.
    102,644       5,479,137  
Hormel Foods Corp.
    22,624       1,146,584  
Ingredion, Inc.
    12,655       1,009,363  
Kellogg Co.
    41,588       2,701,972  
Keurig Green Mountain, Inc.
    20,766       2,768,523  
Kraft Foods Group, Inc.
    96,304       5,672,306  
Lorillard, Inc.
    60,112       3,588,686  
McCormick & Co., Inc. Non-Voting Shares
    21,280       1,483,003  
Mead Johnson Nutrition Co.
    32,266       3,084,630  
Molson Coors Brewing Co., Class B
    25,270       1,868,717  
Mondelez International, Inc., Class A
    275,693       9,977,330  
Monster Beverage Corp. *
    21,672       1,916,022  
PepsiCo, Inc.
    248,275       22,962,955  
Philip Morris International, Inc.
    256,054       21,913,101  
Reynolds American, Inc.
    50,919       2,977,234  
 
 
 
See financial notes 23

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
The Coca-Cola Co.
    621,679       25,936,448  
The Hershey Co.
    24,101       2,203,313  
The J.M. Smucker Co.
    16,639       1,707,161  
Tyson Foods, Inc., Class A
    43,369       1,650,624  
                 
              154,092,108  
 
Health Care Equipment & Services 4.4%
Abbott Laboratories
    244,910       10,344,998  
Aetna, Inc.
    59,909       4,920,326  
AmerisourceBergen Corp.
    36,559       2,829,301  
Baxter International, Inc.
    87,371       6,551,078  
Becton Dickinson & Co.
    31,203       3,656,055  
Boston Scientific Corp. *
    213,398       2,705,887  
C.R. Bard, Inc.
    12,558       1,864,109  
Cardinal Health, Inc.
    56,498       4,163,903  
CareFusion Corp. *
    34,060       1,563,695  
Cerner Corp. *
    47,975       2,766,238  
Cigna Corp.
    45,480       4,302,408  
Community Health Systems, Inc. *
    19,453       1,055,909  
Covidien plc
    73,808       6,408,749  
DaVita HealthCare Partners, Inc. *
    28,269       2,111,129  
DENTSPLY International, Inc.
    23,960       1,143,012  
Edwards Lifesciences Corp. *
    17,661       1,753,031  
Envision Healthcare Holdings, Inc. *
    16,602       606,969  
Express Scripts Holding Co. *
    126,555       9,356,211  
HCA Holdings, Inc. *
    51,974       3,628,825  
Henry Schein, Inc. *
    13,726       1,642,865  
Hologic, Inc. *
    45,308       1,126,810  
Humana, Inc.
    24,573       3,163,528  
IDEXX Laboratories, Inc. *
    8,270       1,025,232  
IMS Health Holdings, Inc. *
    10,784       300,874  
Intuitive Surgical, Inc. *
    6,071       2,853,431  
Laboratory Corp. of America Holdings *
    14,109       1,512,908  
McKesson Corp.
    37,506       7,314,795  
MEDNAX, Inc. *
    16,800       961,800  
Medtronic, Inc.
    162,839       10,397,270  
Omnicare, Inc.
    16,453       1,049,208  
Patterson Cos., Inc.
    13,977       562,854  
Premier, Inc., Class A *
    4,502       142,173  
Quest Diagnostics, Inc.
    24,230       1,531,578  
ResMed, Inc. (a)
    22,138       1,174,421  
Sirona Dental Systems, Inc. *
    9,596       782,170  
St. Jude Medical, Inc.
    46,559       3,053,805  
Stryker Corp.
    47,214       3,933,398  
Tenet Healthcare Corp. *
    17,861       1,092,736  
The Cooper Cos., Inc.
    7,511       1,224,518  
UnitedHealth Group, Inc.
    160,494       13,911,620  
Universal Health Services, Inc., Class B
    13,683       1,565,883  
Varian Medical Systems, Inc. *
    17,332       1,473,567  
Veeva Systems, Inc., Class A *(a)
    12,350       370,129  
WellPoint, Inc.
    45,648       5,318,448  
Zimmer Holdings, Inc.
    27,430       2,724,073  
                 
              141,941,927  
 
Household & Personal Products 1.9%
Avon Products, Inc.
    71,136       998,749  
Church & Dwight Co., Inc.
    21,806       1,488,041  
Colgate-Palmolive Co.
    142,416       9,218,588  
Coty, Inc., Class A
    23,404       402,315  
Energizer Holdings, Inc.
    10,006       1,215,929  
Herbalife Ltd. (a)
    13,526       689,555  
Kimberly-Clark Corp.
    62,622       6,763,176  
The Clorox Co.
    20,406       1,807,972  
The Estee Lauder Cos., Inc., Class A
    40,790       3,133,896  
The Procter & Gamble Co.
    442,782       36,799,612  
                 
              62,517,833  
 
Insurance 3.1%
ACE Ltd.
    54,964       5,844,322  
Aflac, Inc.
    73,212       4,483,503  
Alleghany Corp. *
    2,759       1,189,488  
American Financial Group, Inc.
    11,063       663,448  
American International Group, Inc.
    238,512       13,370,983  
Aon plc
    48,602       4,236,150  
Arch Capital Group Ltd. *
    18,827       1,046,405  
Arthur J. Gallagher & Co.
    24,690       1,166,109  
Axis Capital Holdings Ltd.
    16,120       777,306  
Brown & Brown, Inc.
    20,287       661,762  
Cincinnati Financial Corp.
    25,453       1,224,035  
CNA Financial Corp.
    5,492       212,925  
Erie Indemnity Co., Class A
    4,059       310,554  
Everest Re Group Ltd.
    7,459       1,222,082  
FNF Group *
    44,283       1,253,652  
Genworth Financial, Inc., Class A *
    78,184       1,109,431  
HCC Insurance Holdings, Inc.
    16,694       837,037  
Lincoln National Corp.
    46,274       2,546,921  
Loews Corp.
    48,448       2,119,115  
Markel Corp. *
    2,293       1,512,921  
Marsh & McLennan Cos., Inc.
    89,417       4,748,043  
MetLife, Inc.
    183,032       10,019,172  
PartnerRe Ltd.
    7,391       825,501  
Principal Financial Group, Inc.
    44,354       2,407,979  
Prudential Financial, Inc.
    75,197       6,745,171  
Reinsurance Group of America, Inc.
    10,972       910,457  
RenaissanceRe Holdings Ltd.
    7,226       739,870  
The Allstate Corp.
    73,731       4,533,719  
The Chubb Corp.
    39,202       3,604,624  
The Hartford Financial Services Group, Inc.
    73,278       2,714,950  
The Progressive Corp.
    90,637       2,267,738  
The Travelers Cos., Inc.
    57,334       5,430,103  
Torchmark Corp.
    20,944       1,142,495  
Unum Group
    40,846       1,481,484  
Validus Holdings Ltd.
    15,606       610,351  
W.R. Berkley Corp.
    17,574       849,703  
White Mountains Insurance Group Ltd.
    891       565,108  
Willis Group Holdings plc
    28,662       1,202,944  
XL Group plc
    45,864       1,567,631  
                 
              98,155,192  
 
Materials 3.6%
Air Products & Chemicals, Inc.
    35,031       4,666,480  
Airgas, Inc.
    10,149       1,120,247  
Albemarle Corp.
    12,767       811,726  
Alcoa, Inc.
    189,914       3,154,472  
Ashland, Inc.
    11,305       1,212,122  
Avery Dennison Corp.
    15,390       740,721  
 
 
 
24 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Ball Corp.
    23,059       1,478,082  
Bemis Co., Inc.
    17,290       704,395  
Celanese Corp., Series A
    25,280       1,581,011  
CF Industries Holdings, Inc.
    8,487       2,186,845  
Crown Holdings, Inc. *
    22,630       1,092,350  
E.I. du Pont de Nemours & Co.
    151,160       9,993,188  
Eastman Chemical Co.
    25,562       2,108,098  
Ecolab, Inc.
    44,275       5,083,655  
FMC Corp.
    21,659       1,432,526  
Freeport-McMoRan, Inc.
    167,993       6,109,905  
Huntsman Corp.
    30,660       824,447  
International Flavors & Fragrances, Inc.
    13,300       1,351,147  
International Paper Co.
    72,009       3,488,836  
LyondellBasell Industries N.V., Class A
    67,700       7,741,495  
Martin Marietta Materials, Inc.
    9,825       1,286,682  
MeadWestvaco Corp.
    28,084       1,207,612  
Monsanto Co.
    85,758       9,917,913  
Newmont Mining Corp.
    81,423       2,205,749  
Nucor Corp.
    52,446       2,848,867  
Owens-Illinois, Inc. *
    28,310       871,665  
Packaging Corp. of America
    15,237       1,035,964  
PPG Industries, Inc.
    22,284       4,587,384  
Praxair, Inc.
    48,417       6,369,256  
Rayonier Advanced Materials, Inc. *(a)
    6,565       218,024  
Reliance Steel & Aluminum Co.
    12,515       875,049  
Rock-Tenn Co., Class A
    22,452       1,103,740  
Rockwood Holdings, Inc.
    12,228       990,223  
Royal Gold, Inc.
    9,752       758,218  
RPM International, Inc.
    20,647       973,093  
Sealed Air Corp.
    31,955       1,153,575  
Sigma-Aldrich Corp.
    18,934       1,969,136  
The Dow Chemical Co.
    196,986       10,548,600  
The Mosaic Co.
    54,740       2,614,382  
The Sherwin-Williams Co.
    13,827       3,015,807  
The Valspar Corp.
    13,342       1,077,500  
TimkenSteel Corp.
    6,135       293,130  
Vulcan Materials Co.
    20,312       1,287,375  
W.R. Grace & Co. *
    12,227       1,210,840  
Westlake Chemical Corp.
    6,784       658,930  
                 
              115,960,462  
 
Media 3.8%
AMC Networks, Inc., Class A *
    10,022       627,127  
Cablevision Systems Corp., Class A
    36,822       681,575  
CBS Corp., Class B Non-Voting Shares
    86,156       5,108,189  
Charter Communications, Inc., Class A *
    12,025       1,886,362  
Comcast Corp., Class A
    423,911       23,200,649  
DIRECTV *
    77,203       6,674,199  
Discovery Communications, Inc., Class A *
    36,145       1,580,259  
Discovery Communications, Inc., Class C *
    36,145       1,553,151  
DISH Network Corp., Class A *
    33,654       2,181,116  
Gannett Co., Inc.
    37,893       1,279,268  
Lamar Advertising Co., Class A
    10,137       531,990  
Liberty Global plc, Class A *
    51,878       2,265,512  
Liberty Global plc, Series C *
    68,708       2,880,926  
Liberty Media Corp., Class A *
    16,366       805,698  
Liberty Media Corp., Class C *
    32,732       1,586,520  
News Corp., Class A *
    79,987       1,409,771  
Omnicom Group, Inc.
    41,633       2,997,992  
Scripps Networks Interactive, Inc., Class A
    17,512       1,395,882  
Sirius XM Holdings, Inc. *
    486,875       1,767,356  
The Interpublic Group of Cos., Inc.
    67,877       1,325,638  
The Madison Square Garden Co., Class A *
    9,407       628,952  
The Walt Disney Co.
    264,363       23,760,947  
Time Warner Cable, Inc.
    45,367       6,711,140  
Time Warner, Inc.
    144,723       11,148,013  
Twenty-First Century Fox, Inc., Class A
    310,543       10,999,433  
Viacom, Inc., Class B
    64,040       5,196,846  
                 
              120,184,511  
 
Pharmaceuticals, Biotechnology & Life Sciences 8.9%
AbbVie, Inc.
    260,588       14,405,305  
Actavis plc *
    42,914       9,740,620  
Agilent Technologies, Inc.
    55,584       3,177,181  
Alexion Pharmaceuticals, Inc. *
    32,126       5,438,611  
Allergan, Inc.
    48,576       7,950,920  
Amgen, Inc.
    123,567       17,222,768  
Biogen Idec, Inc. *
    38,696       13,274,276  
BioMarin Pharmaceutical, Inc. *
    23,027       1,639,983  
Bristol-Myers Squibb Co.
    270,765       13,714,247  
Celgene Corp. *
    131,867       12,530,002  
Covance, Inc. *
    9,310       771,799  
Eli Lilly & Co.
    161,843       10,286,741  
Endo International plc *
    21,917       1,396,332  
Gilead Sciences, Inc. *
    250,305       26,927,812  
Hospira, Inc. *
    27,993       1,504,344  
Illumina, Inc. *
    22,135       3,970,134  
Incyte Corp. *
    24,671       1,337,168  
Johnson & Johnson
    461,801       47,902,618  
Medivation, Inc. *
    13,152       1,200,252  
Merck & Co., Inc.
    479,112       28,799,422  
Mettler-Toledo International, Inc. *
    4,600       1,244,208  
Mylan, Inc. *
    61,295       2,978,937  
PerkinElmer, Inc.
    18,624       835,286  
Perrigo Co., plc
    21,484       3,195,530  
Pfizer, Inc.
    1,043,959       30,681,955  
Pharmacyclics, Inc. *
    10,690       1,329,729  
Quintiles Transnational Holdings, Inc. *
    8,338       467,929  
Regeneron Pharmaceuticals, Inc. *
    12,989       4,552,904  
Seattle Genetics, Inc. *
    17,682       778,185  
Thermo Fisher Scientific, Inc.
    65,263       7,845,265  
Vertex Pharmaceuticals, Inc. *
    39,300       3,677,301  
Waters Corp. *
    13,651       1,411,923  
Zoetis, Inc.
    79,923       2,832,471  
                 
              285,022,158  
 
Real Estate 2.9%
Alexandria Real Estate Equities, Inc.
    11,246       889,109  
American Campus Communities, Inc.
    16,340       645,593  
 
 
 
See financial notes 25

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
American Capital Agency Corp.
    62,806       1,485,362  
American Tower Corp.
    66,361       6,543,195  
Annaly Capital Management, Inc.
    152,073       1,809,669  
Apartment Investment & Management Co., Class A
    23,044       789,718  
AvalonBay Communities, Inc.
    20,337       3,133,932  
Boston Properties, Inc.
    24,519       2,977,097  
Brixmor Property Group, Inc.
    10,660       252,322  
Camden Property Trust
    13,300       995,372  
CBRE Group, Inc., Class A *
    44,433       1,412,081  
Corrections Corp. of America
    17,665       629,581  
Crown Castle International Corp.
    55,009       4,373,766  
DDR Corp.
    49,839       908,067  
Digital Realty Trust, Inc.
    22,793       1,487,243  
Duke Realty Corp.
    51,144       951,278  
Equity Residential
    55,553       3,692,608  
Essex Property Trust, Inc.
    9,871       1,909,545  
Extra Space Storage, Inc.
    17,578       926,361  
Federal Realty Investment Trust
    10,640       1,327,659  
General Growth Properties, Inc.
    89,146       2,190,317  
HCP, Inc.
    73,620       3,189,955  
Health Care REIT, Inc.
    48,778       3,296,417  
Host Hotels & Resorts, Inc.
    127,216       2,903,069  
Jones Lang LaSalle, Inc.
    6,840       913,892  
Kilroy Realty Corp.
    12,805       809,916  
Kimco Realty Corp.
    65,213       1,531,853  
Liberty Property Trust
    22,880       810,410  
National Retail Properties, Inc.
    20,089       746,105  
Plum Creek Timber Co., Inc.
    29,527       1,199,682  
Prologis, Inc.
    82,634       3,383,036  
Public Storage
    23,395       4,098,336  
Rayonier, Inc.
    19,950       683,687  
Realogy Holdings Corp. *
    23,234       947,250  
Realty Income Corp.
    36,714       1,641,850  
Regency Centers Corp.
    14,630       835,958  
Senior Housing Properties Trust
    35,504       828,308  
Simon Property Group, Inc.
    50,401       8,569,682  
SL Green Realty Corp.
    15,290       1,671,962  
Taubman Centers, Inc.
    9,824       748,294  
The Macerich Co.
    22,739       1,484,629  
UDR, Inc.
    40,074       1,199,014  
Ventas, Inc.
    48,887       3,215,787  
Vornado Realty Trust
    27,985       2,962,772  
Weingarten Realty Investors
    17,646       603,846  
Weyerhaeuser Co.
    93,775       3,183,661  
WP Carey, Inc.
    8,619       588,505  
                 
              91,377,751  
 
Retailing 4.3%
Abercrombie & Fitch Co., Class A
    11,457       478,903  
Advance Auto Parts, Inc.
    11,987       1,635,267  
Amazon.com, Inc. *
    60,727       20,588,882  
AutoNation, Inc. *
    10,031       544,182  
AutoZone, Inc. *
    5,376       2,896,804  
Bed Bath & Beyond, Inc. *
    35,497       2,281,037  
Best Buy Co., Inc.
    44,061       1,405,105  
CarMax, Inc. *
    36,365       1,905,526  
Dick’s Sporting Goods, Inc.
    16,245       732,162  
Dillard’s, Inc., Class A
    3,471       396,805  
Dollar General Corp. *
    49,721       3,181,647  
Dollar Tree, Inc. *
    34,718       1,861,753  
Expedia, Inc.
    17,293       1,485,469  
Family Dollar Stores, Inc.
    15,014       1,198,568  
Foot Locker, Inc.
    23,268       1,305,567  
GameStop Corp., Class A
    18,722       790,068  
Genuine Parts Co.
    24,418       2,142,435  
Groupon, Inc. *
    59,438       404,178  
Kohl’s Corp.
    32,257       1,896,389  
L Brands, Inc.
    39,022       2,491,555  
Liberty Interactive Corp., Class A *
    77,717       2,294,206  
LKQ Corp. *
    47,880       1,359,792  
Lowe’s Cos., Inc.
    162,668       8,541,697  
Macy’s, Inc.
    60,259       3,753,533  
Netflix, Inc. *
    9,708       4,636,929  
Nordstrom, Inc.
    23,293       1,613,040  
O’Reilly Automotive, Inc. *
    17,425       2,717,952  
PetSmart, Inc.
    16,357       1,170,670  
Ross Stores, Inc.
    34,805       2,624,993  
Sally Beauty Holdings, Inc. *
    24,466       682,112  
Sears Holdings Corp. *(a)
    6,909       240,433  
Signet Jewelers Ltd.
    13,333       1,571,561  
Staples, Inc.
    104,263       1,217,792  
Target Corp.
    103,781       6,234,125  
The Gap, Inc.
    44,265       2,042,830  
The Home Depot, Inc.
    223,047       20,854,895  
The Priceline Group, Inc. *
    8,482       10,554,237  
The TJX Cos., Inc.
    115,415       6,879,888  
Tiffany & Co.
    17,594       1,775,938  
Tractor Supply Co.
    22,775       1,524,786  
TripAdvisor, Inc. *
    18,013       1,784,908  
Ulta Salon, Cosmetics & Fragrance, Inc. *
    9,979       971,056  
Urban Outfitters, Inc. *
    17,377       691,431  
Williams-Sonoma, Inc.
    14,673       965,043  
                 
              136,326,149  
 
Semiconductors & Semiconductor Equipment 2.3%
Altera Corp.
    51,972       1,836,690  
Analog Devices, Inc.
    52,023       2,659,416  
Applied Materials, Inc.
    200,185       4,625,274  
Avago Technologies Ltd.
    42,903       3,521,907  
Broadcom Corp., Class A
    89,180       3,511,908  
Cree, Inc. *
    20,359       927,556  
Freescale Semiconductor Ltd. *
    15,508       326,443  
Intel Corp.
    812,355       28,367,437  
KLA-Tencor Corp.
    26,637       2,035,600  
Lam Research Corp.
    26,713       1,920,932  
Linear Technology Corp.
    39,471       1,780,537  
Marvell Technology Group Ltd.
    67,294       936,060  
Maxim Integrated Products, Inc.
    46,874       1,447,938  
Microchip Technology, Inc.
    32,212       1,572,912  
Micron Technology, Inc. *
    172,355       5,618,773  
NVIDIA Corp.
    90,539       1,760,984  
Skyworks Solutions, Inc.
    31,920       1,808,587  
Texas Instruments, Inc.
    177,346       8,544,530  
Xilinx, Inc.
    42,604       1,800,019  
                 
              75,003,503  
 
Software & Services 10.2%
Accenture plc, Class A
    103,774       8,411,920  
Activision Blizzard, Inc.
    86,650       2,039,741  
 
 
 
26 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Adobe Systems, Inc. *
    75,015       5,393,578  
Akamai Technologies, Inc. *
    28,083       1,696,775  
Alliance Data Systems Corp. *
    8,525       2,256,056  
Amdocs Ltd.
    25,638       1,207,550  
ANSYS, Inc. *
    14,640       1,190,232  
Autodesk, Inc. *
    37,753       2,025,071  
Automatic Data Processing, Inc.
    79,148       6,607,275  
CA, Inc.
    52,549       1,483,984  
Cadence Design Systems, Inc. *
    45,241       798,051  
Citrix Systems, Inc. *
    25,854       1,816,502  
Cognizant Technology Solutions Corp., Class A *
    97,786       4,471,754  
Computer Sciences Corp.
    23,274       1,391,552  
Concur Technologies, Inc. *
    7,301       732,874  
eBay, Inc. *
    184,989       10,266,889  
Electronic Arts, Inc. *
    53,444       2,022,321  
Equinix, Inc. *
    7,980       1,741,715  
Facebook, Inc., Class A *
    282,578       21,142,486  
FactSet Research Systems, Inc.
    6,720       856,128  
Fidelity National Information Services, Inc.
    46,906       2,661,916  
FireEye, Inc. *
    4,761       148,258  
Fiserv, Inc. *
    41,564       2,679,631  
FleetCor Technologies, Inc. *
    12,342       1,773,422  
Gartner, Inc. *
    14,768       1,101,545  
Genpact Ltd. *
    26,396       459,290  
Global Payments, Inc.
    12,350       898,092  
Google, Inc., Class A *
    46,277       26,949,874  
Google, Inc., Class C *
    46,277       26,451,933  
IAC/InterActiveCorp
    12,370       860,828  
Informatica Corp. *
    18,723       637,612  
International Business Machines Corp.
    155,137       29,832,845  
Intuit, Inc.
    47,003       3,909,710  
Jack Henry & Associates, Inc.
    13,588       785,522  
Leidos Holdings, Inc.
    11,143       419,534  
LinkedIn Corp., Class A *
    16,431       3,709,298  
MasterCard, Inc., Class A
    165,644       12,557,472  
MICROS Systems, Inc. *
    12,392       842,284  
Microsoft Corp.
    1,228,676       55,818,751  
NetSuite, Inc. *
    4,600       403,144  
Nuance Communications, Inc. *
    41,304       702,581  
Oracle Corp.
    559,210       23,223,991  
Paychex, Inc.
    51,870       2,160,386  
Rackspace Hosting, Inc. *
    18,093       626,018  
Red Hat, Inc. *
    30,632       1,866,101  
Sabre Corp.
    19,022       346,771  
Salesforce.com, Inc. *
    92,701       5,477,702  
ServiceNow, Inc. *
    16,013       978,875  
Solera Holdings, Inc.
    10,687       651,480  
Symantec Corp.
    113,076       2,745,485  
Synopsys, Inc. *
    25,462       1,041,396  
Teradata Corp. *
    25,968       1,185,959  
The Western Union Co.
    89,488       1,563,355  
TIBCO Software, Inc. *
    24,124       502,744  
Total System Services, Inc.
    27,346       860,305  
Twitter, Inc. *
    12,558       624,761  
Vantiv, Inc., Class A *
    22,892       716,062  
VeriSign, Inc. *
    21,608       1,233,277  
Visa, Inc., Class A
    82,223       17,474,032  
VMware, Inc., Class A *
    13,518       1,332,604  
Workday, Inc., Class A *
    4,701       428,120  
Xerox Corp.
    186,503       2,575,606  
Yahoo! Inc. *
    152,471       5,871,658  
                 
              324,642,684  
 
Technology Hardware & Equipment 6.3%
3D Systems Corp. *(a)
    19,028       1,018,188  
Amphenol Corp., Class A
    25,340       2,610,273  
Apple, Inc.
    985,323       100,995,607  
Arrow Electronics, Inc. *
    16,066       1,000,108  
Avnet, Inc.
    22,610       1,006,371  
Cisco Systems, Inc.
    839,945       20,990,226  
Corning, Inc.
    213,374       4,450,982  
EMC Corp.
    333,981       9,862,459  
F5 Networks, Inc. *
    12,212       1,516,608  
FLIR Systems, Inc.
    23,297       787,206  
Harris Corp.
    16,845       1,202,565  
Hewlett-Packard Co.
    306,942       11,663,796  
Jabil Circuit, Inc.
    30,590       660,132  
Juniper Networks, Inc.
    81,148       1,881,822  
Motorola Solutions, Inc.
    37,860       2,248,884  
National Instruments Corp.
    14,969       496,222  
NCR Corp. *
    26,744       913,575  
NetApp, Inc.
    54,710       2,306,574  
QUALCOMM, Inc.
    275,057       20,931,838  
SanDisk Corp.
    37,467       3,670,267  
Seagate Technology plc
    54,032       3,381,323  
TE Connectivity Ltd.
    67,388       4,223,880  
Trimble Navigation Ltd. *
    40,826       1,357,873  
Western Digital Corp.
    33,885       3,490,494  
                 
              202,667,273  
 
Telecommunication Services 2.4%
AT&T, Inc.
    847,853       29,640,941  
CenturyLink, Inc.
    96,451       3,953,526  
Frontier Communications Corp.
    173,688       1,181,078  
Level 3 Communications, Inc. *
    27,187       1,222,328  
SBA Communications Corp., Class A *
    21,633       2,385,904  
Sprint Corp. *
    134,546       754,803  
T-Mobile US, Inc. *
    40,751       1,225,790  
tw telecom, Inc. *
    22,066       905,478  
Verizon Communications, Inc.
    676,584       33,707,415  
Windstream Holdings, Inc. (a)
    99,789       1,127,616  
                 
              76,104,879  
 
Transportation 2.1%
C.H. Robinson Worldwide, Inc.
    25,536       1,743,087  
CSX Corp.
    162,897       5,035,146  
Delta Air Lines, Inc.
    138,864       5,496,237  
Expeditors International of Washington, Inc.
    33,646       1,389,580  
FedEx Corp.
    44,913       6,641,735  
Genesee & Wyoming, Inc., Class A *
    8,170       803,356  
Hertz Global Holdings, Inc. *
    72,363       2,138,327  
J.B. Hunt Transport Services, Inc.
    14,755       1,114,740  
Kansas City Southern
    17,451       2,013,147  
Kirby Corp. *
    9,437       1,125,740  
Norfolk Southern Corp.
    51,130       5,470,910  
Southwest Airlines Co.
    113,544       3,634,543  
 
 
 
See financial notes 27

Table of Contents

 
 Schwab U.S. Large-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Union Pacific Corp.
    148,669       15,650,386  
United Continental Holdings, Inc. *
    60,332       2,872,407  
United Parcel Service, Inc., Class B
    115,400       11,231,882  
                 
              66,361,223  
 
Utilities 3.1%
AES Corp.
    105,923       1,607,911  
AGL Resources, Inc.
    19,545       1,041,944  
Alliant Energy Corp.
    18,673       1,092,184  
Ameren Corp.
    40,165       1,606,198  
American Electric Power Co., Inc.
    80,913       4,345,028  
American Water Works Co., Inc.
    28,443       1,439,500  
Aqua America, Inc.
    28,158       704,232  
Calpine Corp. *
    58,622       1,393,445  
CenterPoint Energy, Inc.
    70,698       1,756,138  
CMS Energy Corp.
    43,990       1,343,455  
Consolidated Edison, Inc.
    46,755       2,706,647  
Dominion Resources, Inc.
    95,140       6,680,731  
DTE Energy Co.
    28,906       2,261,894  
Duke Energy Corp.
    115,926       8,577,365  
Edison International
    53,422       3,159,377  
Entergy Corp.
    29,817       2,308,134  
Exelon Corp.
    138,582       4,631,410  
FirstEnergy Corp.
    66,884       2,290,108  
Integrys Energy Group, Inc.
    12,807       869,467  
ITC Holdings Corp.
    25,458       950,856  
MDU Resources Group, Inc.
    29,765       931,942  
National Fuel Gas Co.
    13,342       1,019,862  
NextEra Energy, Inc.
    70,931       6,983,157  
NiSource, Inc.
    51,264       2,033,643  
Northeast Utilities
    50,616       2,322,768  
NRG Energy, Inc.
    59,127       1,819,929  
OGE Energy Corp.
    31,944       1,198,539  
Pepco Holdings, Inc.
    39,955       1,101,160  
PG&E Corp.
    75,031       3,487,441  
Pinnacle West Capital Corp.
    17,500       996,625  
PPL Corp.
    108,651       3,762,584  
Public Service Enterprise Group, Inc.
    81,386       3,043,023  
Questar Corp.
    28,031       659,009  
SCANA Corp.
    23,137       1,201,736  
Sempra Energy
    38,099       4,037,351  
TECO Energy, Inc.
    45,897       830,736  
The Southern Co.
    146,756       6,515,966  
UGI Corp.
    20,344       1,077,825  
Westar Energy, Inc.
    20,034       739,856  
Wisconsin Energy Corp.
    37,072       1,680,474  
Xcel Energy, Inc.
    80,041       2,565,314  
                 
              98,774,964  
                 
Total Common Stock
(Cost $2,468,449,443)     3,183,461,956  
         
                 
                 
 
 Other Investment Companies 0.3% of net assets
 
Equity Fund 0.0%
iShares Russell 1000 ETF (a)
    3,000       336,690  
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)
    1,336,150       1,336,150  
 
Securities Lending Collateral 0.2%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)
    7,186,775       7,186,775  
                 
Total Other Investment Companies
(Cost $8,789,999)     8,859,615  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
Rate, Maturity Date   ($)   ($)
 
 Short-Term Investment 0.0% of net assets
 
U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.01%, 09/18/14 (d)(e)
    100,000       100,000  
                 
Total Short-Term Investment
(Cost $100,000)     100,000  
         
 
End of Investments.
 
At 08/31/14, the tax basis cost of the fund’s investments was $2,477,597,346 and the unrealized appreciation and depreciation were $725,352,043 and ($10,527,818), respectively, with a net unrealized appreciation of $714,824,225.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $7,441,350.
(b) Issuer is affiliated with the fund’s adviser.
(c) The rate shown is the 7-day yield.
(d) The rate shown is the purchase yield.
(e) All or a portion of this security is held as collateral for open futures contracts.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
S&P 500 Index, e-mini, Long, expires 09/19/14
    20       2,001,400       5,862  
 
 
 
28 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .8%   Common Stock     1,093,683,669       1,482,757,384  
  0 .4%   Other Investment Companies     5,962,623       5,996,132  
 
 
  100 .2%   Total Investments     1,099,646,292       1,488,753,516  
  (0 .2)%   Other Assets and
Liabilities, Net 		            (2,948,893 )
 
 
  100 .0%   Net Assets             1,485,804,623  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.8% of net assets
 
Automobiles & Components 0.4%
BorgWarner, Inc.
    35,537       2,210,046  
Tesla Motors, Inc. *
    12,420       3,349,674  
                 
              5,559,720  
 
Banks 0.1%
CIT Group, Inc.
    31,386       1,505,272  
Ocwen Financial Corp. *
    18,117       506,189  
                 
              2,011,461  
 
Capital Goods 6.1%
AGCO Corp.
    14,055       686,446  
AMETEK, Inc.
    36,489       1,931,728  
B/E Aerospace, Inc. *
    14,621       1,238,983  
Caterpillar, Inc.
    94,464       10,303,188  
Chicago Bridge & Iron Co. N.V.
    16,065       1,018,842  
Colfax Corp. *
    14,524       923,872  
Cummins, Inc.
    26,109       3,788,677  
Danaher Corp.
    90,729       6,950,749  
Deere & Co.
    55,055       4,629,575  
Donaldson Co., Inc.
    20,236       847,079  
Dover Corp.
    25,559       2,245,869  
Fastenal Co.
    40,931       1,853,356  
Flowserve Corp.
    20,837       1,581,320  
Fluor Corp.
    24,403       1,803,138  
Fortune Brands Home & Security, Inc.
    24,729       1,068,540  
Illinois Tool Works, Inc.
    57,413       5,064,401  
Jacobs Engineering Group, Inc. *
    19,668       1,060,302  
Joy Global, Inc.
    15,792       997,265  
Lincoln Electric Holdings, Inc.
    12,763       907,449  
MSC Industrial Direct Co., Inc., Class A
    7,193       648,377  
Nordson Corp.
    9,007       730,107  
PACCAR, Inc.
    54,003       3,391,928  
Pall Corp.
    16,720       1,410,666  
Pentair plc
    29,796       2,028,214  
Precision Castparts Corp.
    21,815       5,324,169  
Quanta Services, Inc. *
    32,032       1,164,043  
Roper Industries, Inc.
    15,385       2,316,366  
Sensata Technologies Holding N.V. *
    23,679       1,164,296  
SPX Corp.
    6,712       698,384  
Stanley Black & Decker, Inc.
    23,846       2,181,909  
The Boeing Co.
    101,528       12,873,750  
TransDigm Group, Inc.
    7,326       1,377,215  
United Rentals, Inc. *
    14,685       1,727,690  
Valmont Industries, Inc. (a)
    3,891       547,658  
W.W. Grainger, Inc.
    9,170       2,257,654  
WABCO Holdings, Inc. *
    9,079       936,953  
Wabtec Corp.
    14,377       1,198,467  
                 
              90,878,625  
 
Commercial & Professional Services 0.8%
Copart, Inc. *
    16,699       574,947  
Equifax, Inc.
    18,074       1,423,508  
IHS, Inc., Class A *
    9,797       1,395,779  
Nielsen N.V. (a)
    45,279       2,127,660  
Robert Half International, Inc.
    20,796       1,044,167  
Rollins, Inc.
    9,555       284,261  
Stericycle, Inc. *
    12,761       1,516,645  
The Dun & Bradstreet Corp.
    5,949       698,294  
Towers Watson & Co., Class A
    9,604       1,052,886  
Verisk Analytics, Inc., Class A *
    22,322       1,432,849  
Waste Connections, Inc.
    18,405       902,949  
                 
              12,453,945  
 
Consumer Durables & Apparel 2.0%
Carter’s, Inc.
    7,826       647,836  
Coach, Inc.
    42,104       1,550,690  
D.R. Horton, Inc.
    48,563       1,052,846  
Fossil Group, Inc. *
    7,384       747,925  
Jarden Corp. *
    18,690       1,117,475  
Lululemon Athletica, Inc. *
    16,233       648,184  
Michael Kors Holdings Ltd. *
    27,795       2,226,935  
Mohawk Industries, Inc. *
    9,067       1,323,963  
NIKE, Inc., Class B
    112,092       8,804,827  
NVR, Inc. *
    630       739,110  
Polaris Industries, Inc.
    10,005       1,454,527  
PulteGroup, Inc.
    52,332       1,005,821  
PVH Corp.
    12,128       1,415,823  
Ralph Lauren Corp.
    9,030       1,527,876  
Toll Brothers, Inc. *
    24,537       873,272  
Under Armour, Inc., Class A *
    23,948       1,637,085  
VF Corp.
    52,070       3,338,729  
                 
              30,112,924  
 
Consumer Services 2.2%
Aramark
    10,100       261,590  
Burger King Worldwide, Inc.
    9,107       291,788  
Chipotle Mexican Grill, Inc. *
    4,605       3,125,183  
Dunkin’ Brands Group, Inc.
    15,801       687,976  
Extended Stay America, Inc.
    8,212       195,938  
 
 
 
See financial notes 29

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Hilton Worldwide Holdings, Inc. *
    46,254       1,171,151  
Hyatt Hotels Corp., Class A *
    8,447       516,027  
Las Vegas Sands Corp.
    57,950       3,854,255  
Marriott International, Inc., Class A
    34,454       2,391,108  
Norwegian Cruise Line Holdings Ltd. *
    13,867       461,910  
Panera Bread Co., Class A *
    4,187       627,799  
Penn National Gaming, Inc. *
    10,081       113,814  
Starbucks Corp.
    114,267       8,891,115  
Starwood Hotels & Resorts Worldwide, Inc.
    29,134       2,462,988  
Wynn Resorts Ltd.
    12,052       2,324,590  
Yum! Brands, Inc.
    66,757       4,835,210  
                 
              32,212,442  
 
Diversified Financials 6.2%
Affiliated Managers Group, Inc. *
    8,360       1,765,214  
Ally Financial, Inc. *
    14,502       356,749  
American Express Co.
    138,196       12,375,452  
Berkshire Hathaway, Inc., Class B *
    273,073       37,479,269  
BlackRock, Inc.
    19,031       6,290,316  
Discover Financial Services
    70,853       4,419,102  
Franklin Resources, Inc.
    60,813       3,437,151  
Intercontinental Exchange, Inc.
    17,506       3,308,634  
LPL Financial Holdings, Inc.
    12,063       587,347  
McGraw Hill Financial, Inc.
    41,159       3,339,230  
Moody’s Corp.
    28,202       2,638,861  
MSCI, Inc. *
    18,040       832,366  
Santander Consumer USA Holdings, Inc.
    11,481       213,776  
SEI Investments Co.
    21,610       818,911  
State Street Corp.
    64,786       4,666,536  
T. Rowe Price Group, Inc.
    39,737       3,218,498  
TD Ameritrade Holding Corp.
    35,337       1,170,008  
The Charles Schwab Corp. (b)
    175,888       5,014,567  
                 
              91,931,987  
 
Energy 8.4%
Anadarko Petroleum Corp.
    76,607       8,632,843  
Antero Resources Corp. *
    5,398       312,274  
Baker Hughes, Inc.
    66,249       4,580,456  
Cabot Oil & Gas Corp.
    63,005       2,113,188  
Cameron International Corp. *
    30,907       2,297,317  
Cheniere Energy, Inc. *
    33,258       2,669,287  
Concho Resources, Inc. *
    16,817       2,388,687  
CONSOL Energy, Inc.
    34,167       1,376,247  
Continental Resources, Inc. *
    6,274       1,011,933  
Core Laboratories N.V.
    6,785       1,071,962  
CVR Energy, Inc. (a)
    1,993       98,913  
Denbury Resources, Inc.
    55,853       961,789  
Diamond Offshore Drilling, Inc. (a)
    10,181       447,353  
Dresser-Rand Group, Inc. *
    11,387       789,119  
Ensco plc, Class A
    35,004       1,767,002  
EOG Resources, Inc.
    82,807       9,098,833  
EQT Corp.
    23,160       2,294,230  
FMC Technologies, Inc. *
    35,369       2,187,219  
Halliburton Co.
    127,909       8,647,927  
Helmerich & Payne, Inc.
    16,383       1,721,034  
Hess Corp.
    40,567       4,101,324  
HollyFrontier Corp.
    29,663       1,484,040  
Kinder Morgan, Inc.
    100,888       4,061,751  
Marathon Petroleum Corp.
    43,660       3,973,497  
National Oilwell Varco, Inc.
    64,863       5,606,109  
Noble Corp. plc
    37,970       1,080,626  
Noble Energy, Inc.
    54,575       3,937,040  
Oasis Petroleum, Inc. *
    14,714       723,782  
Oceaneering International, Inc.
    16,162       1,124,229  
Oil States International, Inc. *
    8,117       523,952  
ONEOK, Inc.
    30,887       2,168,267  
Paragon Offshore plc *
    12,652       117,917  
Peabody Energy Corp.
    41,058       652,001  
Pioneer Natural Resources Co.
    21,637       4,514,560  
Range Resources Corp.
    25,519       2,005,538  
Rowan Cos. plc, Class A
    18,555       562,588  
Schlumberger Ltd.
    197,687       21,674,403  
SM Energy Co.
    10,105       899,749  
Southwestern Energy Co. *
    55,096       2,268,853  
Superior Energy Services, Inc.
    25,634       918,722  
Tesoro Corp.
    20,224       1,309,302  
Transocean Ltd. (a)
    52,141       2,015,250  
Weatherford International plc *
    115,061       2,725,795  
Whiting Petroleum Corp. *
    17,867       1,655,556  
                 
              124,572,464  
 
Food & Staples Retailing 3.4%
Costco Wholesale Corp.
    66,445       8,045,161  
CVS Caremark Corp.
    176,939       14,057,804  
Wal-Mart Stores, Inc.
    244,316       18,445,858  
Walgreen Co.
    132,866       8,041,050  
Whole Foods Market, Inc.
    55,809       2,184,364  
                 
              50,774,237  
 
Food, Beverage & Tobacco 2.3%
Brown-Forman Corp., Class B
    24,344       2,255,715  
Flowers Foods, Inc.
    26,192       512,839  
Keurig Green Mountain, Inc.
    19,633       2,617,472  
Mead Johnson Nutrition Co.
    30,310       2,897,636  
Monster Beverage Corp. *
    20,819       1,840,608  
PepsiCo, Inc.
    229,912       21,264,561  
The Hershey Co.
    22,287       2,037,477  
                 
              33,426,308  
 
Health Care Equipment & Services 6.5%
Aetna, Inc.
    54,594       4,483,805  
AmerisourceBergen Corp.
    34,562       2,674,753  
Baxter International, Inc.
    82,185       6,162,231  
Becton Dickinson & Co.
    29,095       3,409,061  
C.R. Bard, Inc.
    11,863       1,760,944  
CareFusion Corp. *
    32,182       1,477,476  
Cerner Corp. *
    44,134       2,544,766  
Community Health Systems, Inc. *
    17,363       942,464  
Covidien plc
    68,904       5,982,934  
DaVita HealthCare Partners, Inc. *
    26,353       1,968,042  
DENTSPLY International, Inc.
    21,173       1,010,058  
Edwards Lifesciences Corp. *
    15,958       1,583,991  
Envision Healthcare Holdings, Inc. *
    13,239       484,018  
Express Scripts Holding Co. *
    116,823       8,636,724  
HCA Holdings, Inc. *
    47,689       3,329,646  
Henry Schein, Inc. *
    12,827       1,535,264  
 
 
 
30 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Hologic, Inc. *
    40,478       1,006,688  
IDEXX Laboratories, Inc. *
    7,854       973,660  
IMS Health Holdings, Inc. *
    9,975       278,303  
Intuitive Surgical, Inc. *
    5,688       2,673,417  
Laboratory Corp. of America Holdings *
    13,352       1,431,735  
McKesson Corp.
    34,892       6,804,987  
MEDNAX, Inc. *
    15,038       860,926  
Medtronic, Inc.
    151,873       9,697,091  
Patterson Cos., Inc.
    12,543       505,107  
Premier, Inc., Class A *
    4,254       134,341  
Quest Diagnostics, Inc.
    21,622       1,366,727  
ResMed, Inc. (a)
    21,148       1,121,901  
Sirona Dental Systems, Inc. *
    8,335       679,386  
Stryker Corp.
    44,875       3,738,536  
The Cooper Cos., Inc.
    7,518       1,225,660  
UnitedHealth Group, Inc.
    148,290       12,853,777  
Universal Health Services, Inc., Class B
    13,300       1,522,052  
Varian Medical Systems, Inc. *
    16,102       1,368,992  
Veeva Systems, Inc., Class A *(a)
    4,421       132,497  
                 
              96,361,960  
 
Household & Personal Products 1.0%
Church & Dwight Co., Inc.
    20,765       1,417,004  
Colgate-Palmolive Co.
    131,973       8,542,612  
Energizer Holdings, Inc.
    9,383       1,140,222  
Herbalife Ltd. (a)
    11,589       590,807  
The Estee Lauder Cos., Inc., Class A
    38,224       2,936,750  
                 
              14,627,395  
 
Insurance 0.4%
Alleghany Corp. *
    2,482       1,070,065  
Erie Indemnity Co., Class A
    3,647       279,032  
Everest Re Group Ltd.
    7,242       1,186,529  
Markel Corp. *
    2,103       1,387,559  
PartnerRe Ltd.
    6,868       767,087  
RenaissanceRe Holdings Ltd.
    6,642       680,074  
White Mountains Insurance Group Ltd.
    769       487,731  
                 
              5,858,077  
 
Materials 3.1%
Airgas, Inc.
    9,801       1,081,834  
Ball Corp.
    21,607       1,385,009  
CF Industries Holdings, Inc.
    7,871       2,028,121  
Crown Holdings, Inc. *
    20,780       1,003,051  
Ecolab, Inc.
    41,472       4,761,815  
FMC Corp.
    20,320       1,343,965  
LyondellBasell Industries N.V., Class A
    63,564       7,268,543  
Monsanto Co.
    79,429       9,185,964  
PPG Industries, Inc.
    20,841       4,290,328  
Praxair, Inc.
    44,109       5,802,539  
Rock-Tenn Co., Class A
    21,514       1,057,628  
Royal Gold, Inc.
    9,679       752,542  
Sigma-Aldrich Corp.
    17,960       1,867,840  
The Sherwin-Williams Co.
    12,714       2,773,051  
The Valspar Corp.
    12,023       970,977  
W.R. Grace & Co. *
    11,428       1,131,715  
                 
              46,704,922  
 
Media 3.8%
AMC Networks, Inc., Class A *
    8,727       546,092  
Charter Communications, Inc., Class A *
    10,573       1,658,587  
Comcast Corp., Class A
    393,879       21,556,998  
DIRECTV *
    71,307       6,164,490  
Discovery Communications, Inc., Class A *
    32,995       1,442,541  
Discovery Communications, Inc., Class C *
    32,995       1,417,795  
DISH Network Corp., Class A *
    31,470       2,039,571  
Liberty Global plc, Class A *
    50,884       2,222,104  
Liberty Global plc, Series C *
    61,468       2,577,353  
Liberty Media Corp., Class A *
    15,235       750,019  
Liberty Media Corp., Class C *
    30,488       1,477,753  
Scripps Networks Interactive, Inc., Class A
    16,295       1,298,874  
Sirius XM Holdings, Inc. *
    453,196       1,645,102  
The Madison Square Garden Co., Class A *
    8,913       595,923  
Time Warner Cable, Inc.
    42,204       6,243,238  
Viacom, Inc., Class B
    59,166       4,801,321  
                 
              56,437,761  
 
Pharmaceuticals, Biotechnology & Life Sciences 11.3%
Actavis plc *
    39,973       9,073,072  
Agilent Technologies, Inc.
    50,734       2,899,956  
Alexion Pharmaceuticals, Inc. *
    29,767       5,039,255  
Allergan, Inc.
    44,954       7,358,071  
Amgen, Inc.
    114,556       15,966,815  
Biogen Idec, Inc. *
    35,876       12,306,903  
BioMarin Pharmaceutical, Inc. *
    21,778       1,551,029  
Celgene Corp. *
    122,230       11,614,295  
Covance, Inc. *
    9,450       783,405  
Endo International plc *
    21,413       1,364,222  
Gilead Sciences, Inc. *
    232,338       24,994,922  
Illumina, Inc. *
    21,069       3,778,936  
Incyte Corp. *
    23,068       1,250,286  
Johnson & Johnson
    428,706       44,469,673  
Medivation, Inc. *
    11,271       1,028,592  
Mettler-Toledo International, Inc. *
    4,398       1,189,571  
Perrigo Co., plc
    20,380       3,031,321  
Pharmacyclics, Inc. *
    10,537       1,310,697  
Regeneron Pharmaceuticals, Inc. *
    12,063       4,228,323  
Seattle Genetics, Inc. *
    16,615       731,226  
Thermo Fisher Scientific, Inc.
    60,339       7,253,351  
Vertex Pharmaceuticals, Inc. *
    35,665       3,337,174  
Waters Corp. *
    12,687       1,312,216  
Zoetis, Inc.
    74,882       2,653,818  
                 
              168,527,129  
 
Real Estate 3.1%
American Campus Communities, Inc.
    15,427       609,521  
American Tower Corp.
    59,989       5,914,915  
AvalonBay Communities, Inc.
    18,350       2,827,735  
 
 
 
See financial notes 31

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Boston Properties, Inc.
    23,417       2,843,292  
CBRE Group, Inc., Class A *
    41,545       1,320,300  
Corrections Corp. of America
    17,303       616,679  
Crown Castle International Corp.
    50,154       3,987,745  
Digital Realty Trust, Inc.
    20,457       1,334,819  
Essex Property Trust, Inc.
    9,354       1,809,531  
Extra Space Storage, Inc.
    17,790       937,533  
Federal Realty Investment Trust
    10,241       1,277,872  
Host Hotels & Resorts, Inc.
    115,427       2,634,044  
Jones Lang LaSalle, Inc.
    6,523       871,538  
Public Storage
    21,986       3,851,508  
Realogy Holdings Corp. *
    21,949       894,861  
Simon Property Group, Inc.
    47,005       7,992,260  
SL Green Realty Corp.
    14,438       1,578,795  
Taubman Centers, Inc.
    9,547       727,195  
The Macerich Co.
    20,981       1,369,850  
Ventas, Inc.
    45,618       3,000,752  
                 
              46,400,745  
 
Retailing 5.7%
Advance Auto Parts, Inc.
    11,234       1,532,542  
Amazon.com, Inc. *
    56,402       19,122,534  
AutoNation, Inc. *
    9,599       520,746  
AutoZone, Inc. *
    5,009       2,699,050  
Bed Bath & Beyond, Inc. *
    30,879       1,984,285  
CarMax, Inc. *
    33,429       1,751,680  
Dick’s Sporting Goods, Inc.
    15,127       681,774  
Dollar General Corp. *
    45,881       2,935,925  
Dollar Tree, Inc. *
    31,167       1,671,330  
Family Dollar Stores, Inc.
    14,413       1,150,590  
Groupon, Inc. *
    57,659       392,081  
LKQ Corp. *
    44,847       1,273,655  
Lowe’s Cos., Inc.
    150,933       7,925,492  
Netflix, Inc. *
    9,087       4,340,315  
Nordstrom, Inc.
    21,630       1,497,877  
O’Reilly Automotive, Inc. *
    16,083       2,508,626  
PetSmart, Inc.
    15,497       1,109,120  
Ross Stores, Inc.
    32,355       2,440,214  
Sally Beauty Holdings, Inc. *
    22,090       615,869  
Sears Holdings Corp. *(a)
    6,535       227,418  
Target Corp.
    95,636       5,744,855  
The Priceline Group, Inc. *
    7,919       9,853,691  
The TJX Cos., Inc.
    107,079       6,382,979  
Tiffany & Co.
    17,159       1,732,029  
Tractor Supply Co.
    20,880       1,397,916  
TripAdvisor, Inc. *
    16,686       1,653,416  
Ulta Salon, Cosmetics & Fragrance, Inc. *
    9,539       928,240  
Urban Outfitters, Inc. *
    16,119       641,375  
                 
              84,715,624  
 
Semiconductors & Semiconductor Equipment 0.8%
Altera Corp.
    47,765       1,688,015  
Broadcom Corp., Class A
    84,077       3,310,953  
Cree, Inc. *
    17,945       817,574  
Freescale Semiconductor Ltd. *
    14,265       300,278  
NVIDIA Corp.
    86,684       1,686,004  
Skyworks Solutions, Inc.
    30,195       1,710,849  
Xilinx, Inc.
    39,865       1,684,296  
                 
              11,197,969  
 
Software & Services 17.3%
Accenture plc, Class A
    96,495       7,821,885  
Activision Blizzard, Inc.
    75,349       1,773,716  
Adobe Systems, Inc. *
    70,001       5,033,072  
Akamai Technologies, Inc. *
    26,698       1,613,093  
Alliance Data Systems Corp. *
    8,196       2,168,989  
Amdocs Ltd.
    24,106       1,135,393  
ANSYS, Inc. *
    13,797       1,121,696  
Autodesk, Inc. *
    34,674       1,859,913  
Automatic Data Processing, Inc.
    73,169       6,108,148  
Citrix Systems, Inc. *
    24,777       1,740,832  
Cognizant Technology Solutions Corp., Class A *
    91,599       4,188,822  
Concur Technologies, Inc. *
    7,671       770,015  
eBay, Inc. *
    172,624       9,580,632  
Electronic Arts, Inc. *
    47,626       1,802,168  
Equinix, Inc. *
    7,676       1,675,364  
Facebook, Inc., Class A *
    260,180       19,466,668  
FactSet Research Systems, Inc.
    6,019       766,821  
Fidelity National Information Services, Inc.
    43,650       2,477,138  
FireEye, Inc. *
    4,843       150,811  
Fiserv, Inc. *
    38,273       2,467,460  
FleetCor Technologies, Inc. *
    11,822       1,698,703  
Gartner, Inc. *
    13,792       1,028,745  
Genpact Ltd. *
    23,501       408,917  
Global Payments, Inc.
    10,999       799,847  
Google, Inc., Class A *
    42,858       24,958,785  
Google, Inc., Class C *
    43,008       24,583,373  
IAC/InterActiveCorp
    11,460       797,501  
Informatica Corp. *
    16,038       546,174  
Intuit, Inc.
    42,737       3,554,864  
Jack Henry & Associates, Inc.
    12,520       723,781  
LinkedIn Corp., Class A *
    15,245       3,441,559  
MasterCard, Inc., Class A
    152,056       11,527,365  
MICROS Systems, Inc. *
    12,226       831,001  
Microsoft Corp.
    1,138,414       51,718,148  
NetSuite, Inc. *
    4,427       387,982  
Nuance Communications, Inc. *
    39,425       670,619  
Oracle Corp.
    519,597       21,578,863  
Rackspace Hosting, Inc. *
    16,950       586,470  
Red Hat, Inc. *
    28,239       1,720,320  
Sabre Corp.
    5,980       109,015  
Salesforce.com, Inc. *
    85,659       5,061,590  
ServiceNow, Inc. *
    15,969       976,185  
Solera Holdings, Inc.
    10,251       624,901  
Symantec Corp.
    104,620       2,540,174  
Synopsys, Inc. *
    23,139       946,385  
Teradata Corp. *
    24,445       1,116,403  
TIBCO Software, Inc. *
    22,790       474,944  
Twitter, Inc. *
    11,653       579,737  
Vantiv, Inc., Class A *
    21,270       665,326  
Visa, Inc., Class A
    76,068       16,165,971  
VMware, Inc., Class A *
    12,800       1,261,824  
Workday, Inc., Class A *
    5,395       491,323  
                 
              256,299,431  
 
Technology Hardware & Equipment 10.5%
3D Systems Corp. *(a)
    15,461       827,318  
Amphenol Corp., Class A
    23,819       2,453,595  
 
 
 
32 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Growth ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Apple, Inc.
    914,177       93,703,143  
Cisco Systems, Inc.
    775,394       19,377,096  
EMC Corp.
    309,799       9,148,364  
F5 Networks, Inc. *
    11,611       1,441,970  
FLIR Systems, Inc.
    20,880       705,535  
Juniper Networks, Inc.
    71,677       1,662,190  
National Instruments Corp.
    14,514       481,139  
NetApp, Inc.
    50,822       2,142,656  
QUALCOMM, Inc.
    255,407       19,436,473  
SanDisk Corp.
    34,422       3,371,979  
Trimble Navigation Ltd. *
    40,012       1,330,799  
                 
              156,082,257  
 
Telecommunication Services 0.4%
Level 3 Communications, Inc. *
    25,533       1,147,964  
SBA Communications Corp., Class A *
    19,162       2,113,377  
T-Mobile US, Inc. *
    38,719       1,164,667  
tw telecom, Inc. *
    22,080       906,053  
                 
              5,332,061  
 
Transportation 3.8%
C.H. Robinson Worldwide, Inc.
    22,537       1,538,376  
CSX Corp.
    152,626       4,717,670  
Delta Air Lines, Inc.
    128,458       5,084,368  
Expeditors International of Washington, Inc.
    30,910       1,276,583  
FedEx Corp.
    42,638       6,305,307  
Genesee & Wyoming, Inc., Class A *
    7,507       738,163  
Hertz Global Holdings, Inc. *
    71,873       2,123,847  
J.B. Hunt Transport Services, Inc.
    13,674       1,033,071  
Kansas City Southern
    16,621       1,917,399  
Kirby Corp. *
    8,453       1,008,358  
Southwest Airlines Co.
    105,771       3,385,730  
Union Pacific Corp.
    137,045       14,426,727  
United Continental Holdings, Inc. *
    56,110       2,671,397  
United Parcel Service, Inc., Class B
    107,134       10,427,352  
                 
              56,654,348  
 
Utilities 0.2%
AES Corp.
    98,271       1,491,754  
Calpine Corp. *
    53,205       1,264,683  
ITC Holdings Corp.
    23,217       867,155  
                 
              3,623,592  
                 
Total Common Stock
(Cost $1,093,683,669)     1,482,757,384  
         
                 
                 
 
 Other Investment Companies 0.4% of net assets
 
Equity Fund 0.0%
iShares Russell 1000 Growth ETF
    5,000       466,250  
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)
    624,118       624,118  
 
Securities Lending Collateral 0.3%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)
    4,905,764       4,905,764  
                 
Total Other Investment Companies
(Cost $5,962,623)     5,996,132  
         
 
End of Investments
 
End of Collateral Invested for Securities on Loan
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,099,755,291 and the unrealized appreciation and depreciation were $394,453.955 and ($5,455,730), respectively, with a net unrealized appreciation of $388,998,225.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $4,777,840.
(b) Issuer is affiliated with the fund’s adviser.
(c) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
Reg’d —
  Registered
 
 
 
See financial notes 33

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .7%   Common Stock     939,758,277       1,158,924,925  
  0 .1%   Other Investment Companies     1,548,517       1,587,326  
 
 
  99 .8%   Total Investments     941,306,794       1,160,512,251  
  0 .2%   Other Assets and
Liabilities, Net 		            2,063,901  
 
 
  100 .0%   Net Assets             1,162,576,152  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.7% of net assets
 
Automobiles & Components 2.2%
Autoliv, Inc.
    11,272       1,168,794  
Delphi Automotive plc
    33,158       2,307,134  
Ford Motor Co.
    472,501       8,226,242  
General Motors Co.
    156,713       5,453,612  
Harley-Davidson, Inc.
    26,203       1,665,463  
Johnson Controls, Inc.
    79,694       3,889,864  
Lear Corp.
    9,450       955,678  
TRW Automotive Holdings Corp. *
    13,651       1,314,455  
                 
              24,981,242  
 
Banks 11.1%
Bank of America Corp.
    1,256,679       20,219,965  
BB&T Corp.
    85,619       3,196,157  
BOK Financial Corp.
    2,347       158,141  
Citigroup, Inc.
    363,012       18,749,570  
Comerica, Inc.
    22,037       1,109,343  
Cullen/Frost Bankers, Inc.
    6,083       478,124  
Fifth Third Bancorp
    100,753       2,055,865  
First Republic Bank
    14,531       710,566  
Hudson City Bancorp, Inc.
    61,402       606,038  
Huntington Bancshares, Inc.
    97,425       959,149  
JPMorgan Chase & Co.
    453,863       26,982,155  
KeyCorp
    107,027       1,456,637  
M&T Bank Corp.
    15,637       1,933,202  
New York Community Bancorp, Inc.
    52,358       835,110  
People’s United Financial, Inc.
    39,048       583,768  
Regions Financial Corp.
    168,031       1,705,515  
SunTrust Banks, Inc.
    63,255       2,408,750  
The PNC Financial Services Group, Inc.
    63,778       5,405,185  
U.S. Bancorp
    217,150       9,181,102  
Wells Fargo & Co.
    573,579       29,504,904  
Zions Bancorp
    24,214       705,596  
                 
              128,944,842  
 
Capital Goods 9.0%
3M Co.
    74,424       10,717,056  
Allison Transmission Holdings, Inc.
    19,610       601,635  
Carlisle Cos., Inc.
    7,214       598,041  
Eaton Corp. plc
    57,249       3,996,553  
Emerson Electric Co.
    84,117       5,385,170  
General Dynamics Corp.
    38,917       4,796,520  
General Electric Co.
    1,200,123       31,179,196  
Honeywell International, Inc.
    93,812       8,933,717  
Hubbell, Inc., Class B
    6,555       792,499  
IDEX Corp.
    9,436       726,006  
Ingersoll-Rand plc
    30,588       1,841,398  
KBR, Inc.
    18,077       398,056  
L-3 Communications Holdings, Inc.
    10,427       1,146,449  
Lockheed Martin Corp.
    31,755       5,525,370  
Masco Corp.
    42,902       1,006,910  
Northrop Grumman Corp.
    25,661       3,264,592  
Oshkosh Corp.
    9,908       492,229  
Owens Corning
    12,948       466,128  
Parker-Hannifin Corp.
    17,849       2,061,559  
Raytheon Co.
    37,763       3,638,087  
Rockwell Automation, Inc.
    16,707       1,948,203  
Rockwell Collins, Inc.
    16,128       1,241,533  
Snap-on, Inc.
    6,719       839,539  
Textron, Inc.
    34,299       1,303,362  
The Timken Co.
    9,299       421,152  
United Technologies Corp.
    100,685       10,871,966  
Veritiv Corp. *
    967       43,051  
Xylem, Inc.
    21,633       806,046  
                 
              105,042,023  
 
Commercial & Professional Services 0.8%
Cintas Corp.
    11,958       790,902  
Iron Mountain, Inc.
    20,435       735,251  
Manpowergroup, Inc.
    9,626       746,785  
Republic Services, Inc.
    31,803       1,250,812  
The ADT Corp.
    21,609       796,508  
Tyco International Ltd.
    55,595       2,480,649  
Waste Management, Inc.
    51,093       2,399,838  
                 
              9,200,745  
 
Consumer Durables & Apparel 0.7%
Garmin Ltd.
    14,450       785,069  
Hanesbrands, Inc.
    12,066       1,238,937  
Hasbro, Inc.
    14,133       744,173  
Leggett & Platt, Inc.
    16,707       586,249  
Lennar Corp., Class A
    20,696       810,869  
Mattel, Inc.
    40,377       1,392,603  
Newell Rubbermaid, Inc.
    34,458       1,155,032  
Tupperware Brands Corp.
    5,686       416,556  
Whirlpool Corp.
    9,253       1,415,894  
                 
              8,545,382  
 
Consumer Services 1.6%
Carnival Corp.
    52,748       1,998,094  
 
 
 
34 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Darden Restaurants, Inc.
    15,790       747,183  
H&R Block, Inc.
    33,587       1,126,172  
International Game Technology
    31,532       531,629  
McDonald’s Corp.
    118,121       11,070,300  
MGM Resorts International *
    39,089       956,508  
Royal Caribbean Cruises Ltd.
    19,847       1,265,445  
Wyndham Worldwide Corp.
    15,589       1,261,774  
                 
              18,957,105  
 
Diversified Financials 3.5%
Ameriprise Financial, Inc.
    22,572       2,838,655  
Capital One Financial Corp.
    68,081       5,586,727  
CME Group, Inc.
    37,571       2,876,060  
Eaton Vance Corp.
    14,655       573,890  
FNFV Group *
    10,704       160,346  
Invesco Ltd.
    51,978       2,122,781  
Legg Mason, Inc.
    12,284       605,847  
Leucadia National Corp.
    38,777       966,711  
Morgan Stanley
    167,951       5,762,399  
Navient Corp.
    51,264       919,676  
Northern Trust Corp.
    26,500       1,837,775  
Raymond James Financial, Inc.
    14,452       789,657  
SLM Corp.
    51,264       454,199  
The Bank of New York Mellon Corp.
    136,024       5,329,420  
The Goldman Sachs Group, Inc.
    50,038       8,962,306  
The NASDAQ OMX Group, Inc.
    13,512       587,367  
Voya Financial, Inc.
    16,256       635,447  
                 
              41,009,263  
 
Energy 11.9%
Apache Corp.
    45,967       4,680,820  
Chesapeake Energy Corp.
    59,472       1,617,638  
Chevron Corp.
    227,925       29,504,891  
Cimarex Energy Co.
    10,513       1,526,067  
Cobalt International Energy, Inc. *
    35,552       545,723  
ConocoPhillips
    146,792       11,922,446  
Devon Energy Corp.
    45,635       3,441,792  
Exxon Mobil Corp.
    513,949       51,117,368  
Marathon Oil Corp.
    81,960       3,416,912  
Murphy Oil Corp.
    20,554       1,284,008  
Nabors Industries Ltd.
    30,495       829,769  
Occidental Petroleum Corp.
    94,529       9,805,493  
Phillips 66
    67,428       5,867,585  
QEP Resources, Inc.
    20,826       740,781  
Seventy Seven Energy, Inc. *
    4,211       98,832  
Spectra Energy Corp.
    80,142       3,338,716  
The Williams Cos., Inc.
    88,418       5,255,566  
Valero Energy Corp.
    63,672       3,447,202  
                 
              138,441,609  
 
Food & Staples Retailing 0.6%
Safeway, Inc.
    27,247       947,651  
Sprouts Farmers Market, Inc. *
    10,955       338,948  
Sysco Corp.
    70,693       2,674,316  
The Kroger Co.
    62,220       3,171,975  
                 
              7,132,890  
 
Food, Beverage & Tobacco 7.5%
Altria Group, Inc.
    237,723       10,241,107  
Archer-Daniels-Midland Co.
    77,980       3,888,083  
Bunge Ltd.
    17,248       1,460,043  
Campbell Soup Co.
    20,964       939,606  
Coca-Cola Enterprises, Inc.
    27,979       1,336,837  
ConAgra Foods, Inc.
    49,479       1,593,224  
Constellation Brands, Inc., Class A *
    20,085       1,749,203  
Dr. Pepper Snapple Group, Inc.
    23,811       1,498,188  
General Mills, Inc.
    73,912       3,945,423  
Hormel Foods Corp.
    15,782       799,832  
Ingredion, Inc.
    9,216       735,068  
Kellogg Co.
    30,566       1,985,873  
Kraft Foods Group, Inc.
    71,418       4,206,520  
Lorillard, Inc.
    43,667       2,606,920  
McCormick & Co., Inc. Non-Voting Shares
    15,731       1,096,293  
Molson Coors Brewing Co., Class B
    19,649       1,453,043  
Mondelez International, Inc., Class A
    201,783       7,302,527  
Philip Morris International, Inc.
    188,071       16,095,116  
Reynolds American, Inc.
    37,112       2,169,939  
The Coca-Cola Co.
    451,786       18,848,512  
The J.M. Smucker Co.
    12,336       1,265,674  
Tyson Foods, Inc., Class A
    35,188       1,339,255  
                 
              86,556,286  
 
Health Care Equipment & Services 2.4%
Abbott Laboratories
    180,295       7,615,661  
Boston Scientific Corp. *
    157,747       2,000,232  
Cardinal Health, Inc.
    40,377       2,975,785  
Cigna Corp.
    32,444       3,069,203  
Humana, Inc.
    18,327       2,359,418  
Omnicare, Inc.
    12,077       770,150  
St. Jude Medical, Inc.
    33,722       2,211,826  
Tenet Healthcare Corp. *
    11,952       731,223  
WellPoint, Inc.
    33,387       3,889,919  
Zimmer Holdings, Inc.
    19,871       1,973,389  
                 
              27,596,806  
 
Household & Personal Products 2.9%
Avon Products, Inc.
    51,869       728,241  
Coty, Inc., Class A
    6,658       114,451  
Kimberly-Clark Corp.
    45,003       4,860,324  
The Clorox Co.
    15,229       1,349,289  
The Procter & Gamble Co.
    323,910       26,920,160  
                 
              33,972,465  
 
Insurance 5.8%
ACE Ltd.
    40,164       4,270,638  
Aflac, Inc.
    53,972       3,305,245  
American Financial Group, Inc.
    8,271       496,012  
American International Group, Inc.
    174,103       9,760,214  
Aon plc
    35,562       3,099,584  
Arch Capital Group Ltd. *
    13,680       760,334  
Arthur J. Gallagher & Co.
    19,245       908,941  
Axis Capital Holdings Ltd.
    12,439       599,809  
Brown & Brown, Inc.
    13,719       447,514  
Cincinnati Financial Corp.
    17,367       835,179  
CNA Financial Corp.
    3,040       117,861  
FNF Group *
    32,117       909,232  
Genworth Financial, Inc., Class A *
    59,874       849,612  
 
 
 
See financial notes 35

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
HCC Insurance Holdings, Inc.
    11,760       589,646  
Lincoln National Corp.
    31,055       1,709,267  
Loews Corp.
    35,913       1,570,835  
Marsh & McLennan Cos., Inc.
    65,565       3,481,502  
MetLife, Inc.
    134,842       7,381,251  
Principal Financial Group, Inc.
    33,158       1,800,148  
Prudential Financial, Inc.
    55,282       4,958,795  
Reinsurance Group of America, Inc.
    8,250       684,585  
The Allstate Corp.
    51,690       3,178,418  
The Chubb Corp.
    29,039       2,670,136  
The Hartford Financial Services Group, Inc.
    53,458       1,980,619  
The Progressive Corp.
    64,901       1,623,823  
The Travelers Cos., Inc.
    41,780       3,956,984  
Torchmark Corp.
    16,062       876,182  
Unum Group
    30,978       1,123,572  
Validus Holdings Ltd.
    10,751       420,472  
W.R. Berkley Corp.
    12,983       627,728  
Willis Group Holdings plc
    21,950       921,242  
XL Group plc
    33,928       1,159,659  
                 
              67,075,039  
 
Materials 4.1%
Air Products & Chemicals, Inc.
    25,279       3,367,416  
Albemarle Corp.
    9,435       599,877  
Alcoa, Inc.
    138,522       2,300,850  
Ashland, Inc.
    8,879       952,006  
Avery Dennison Corp.
    11,313       544,495  
Bemis Co., Inc.
    11,847       482,647  
Celanese Corp., Series A
    18,921       1,183,319  
E.I. du Pont de Nemours & Co.
    109,327       7,227,608  
Eastman Chemical Co.
    17,993       1,483,883  
Freeport-McMoRan, Inc.
    123,397       4,487,949  
Huntsman Corp.
    24,289       653,131  
International Flavors & Fragrances, Inc.
    9,616       976,890  
International Paper Co.
    52,391       2,538,344  
Martin Marietta Materials, Inc.
    7,476       979,057  
MeadWestvaco Corp.
    20,928       899,904  
Newmont Mining Corp.
    58,414       1,582,435  
Nucor Corp.
    38,457       2,088,984  
Owens-Illinois, Inc. *
    19,315       594,709  
Packaging Corp. of America
    11,434       777,398  
Rayonier Advanced Materials, Inc. *(a)
    4,905       162,895  
Reliance Steel & Aluminum Co.
    9,304       650,536  
Rockwood Holdings, Inc.
    9,095       736,513  
RPM International, Inc.
    16,183       762,705  
Sealed Air Corp.
    23,109       834,235  
The Dow Chemical Co.
    144,311       7,727,854  
The Mosaic Co.
    38,546       1,840,957  
TimkenSteel Corp.
    4,630       221,221  
Vulcan Materials Co.
    15,189       962,679  
Westlake Chemical Corp.
    4,588       445,632  
                 
              48,066,129  
 
Media 3.7%
Cablevision Systems Corp., Class A
    25,233       467,063  
CBS Corp., Class B Non-Voting Shares
    58,155       3,448,010  
Gannett Co., Inc.
    26,869       907,097  
Lamar Advertising Co., Class A
    7,769       407,717  
News Corp., Class A *
    59,525       1,049,128  
Omnicom Group, Inc.
    31,105       2,239,871  
The Interpublic Group of Cos., Inc.
    50,731       990,776  
The Walt Disney Co.
    192,551       17,306,484  
Time Warner, Inc.
    105,097       8,095,622  
Twenty-First Century Fox, Inc., Class A
    228,185       8,082,313  
                 
              42,994,081  
 
Pharmaceuticals, Biotechnology & Life Sciences 6.5%
AbbVie, Inc.
    190,037       10,505,245  
Bristol-Myers Squibb Co.
    199,295       10,094,292  
Eli Lilly & Co.
    117,557       7,471,923  
Hospira, Inc. *
    20,446       1,098,768  
Merck & Co., Inc.
    349,905       21,032,789  
Mylan, Inc. *
    44,996       2,186,806  
PerkinElmer, Inc.
    13,403       601,125  
Pfizer, Inc.
    762,922       22,422,278  
Quintiles Transnational Holdings, Inc. *
    6,102       342,444  
                 
              75,755,670  
 
Real Estate 2.6%
Alexandria Real Estate Equities, Inc.
    8,293       655,645  
American Capital Agency Corp.
    43,508       1,028,964  
Annaly Capital Management, Inc.
    113,108       1,345,985  
Apartment Investment & Management Co., Class A
    17,780       609,321  
Brixmor Property Group, Inc.
    10,146       240,156  
Camden Property Trust
    11,043       826,458  
DDR Corp.
    33,642       612,957  
Duke Realty Corp.
    39,610       736,746  
Equity Residential
    40,379       2,683,992  
General Growth Properties, Inc.
    62,650       1,539,310  
HCP, Inc.
    54,534       2,362,958  
Health Care REIT, Inc.
    37,120       2,508,570  
Kilroy Realty Corp.
    9,440       597,080  
Kimco Realty Corp.
    51,806       1,216,923  
Liberty Property Trust
    17,929       635,045  
National Retail Properties, Inc.
    14,026       520,926  
Plum Creek Timber Co., Inc.
    20,576       836,003  
Prologis, Inc.
    59,365       2,430,403  
Rayonier, Inc.
    14,715       504,283  
Realty Income Corp.
    25,996       1,162,541  
Regency Centers Corp.
    10,802       617,226  
Senior Housing Properties Trust
    24,030       560,620  
UDR, Inc.
    29,443       880,935  
Vornado Realty Trust
    21,025       2,225,917  
Weingarten Realty Investors
    13,174       450,814  
Weyerhaeuser Co.
    64,080       2,175,516  
WP Carey, Inc.
    7,214       492,572  
                 
              30,457,866  
 
Retailing 2.9%
Abercrombie & Fitch Co., Class A
    9,171       383,348  
Best Buy Co., Inc.
    32,265       1,028,931  
Dillard’s, Inc., Class A
    2,788       318,724  
 
 
 
36 See financial notes

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Expedia, Inc.
    11,900       1,022,210  
Foot Locker, Inc.
    17,622       988,770  
GameStop Corp., Class A
    13,635       575,397  
Genuine Parts Co.
    18,189       1,595,903  
Kohl’s Corp.
    24,332       1,430,478  
L Brands, Inc.
    29,464       1,881,276  
Liberty Interactive Corp., Class A *
    56,824       1,677,445  
Macy’s, Inc.
    43,126       2,686,319  
Signet Jewelers Ltd.
    9,421       1,110,453  
Staples, Inc.
    78,258       914,054  
The Gap, Inc.
    31,013       1,431,250  
The Home Depot, Inc.
    163,684       15,304,454  
Williams-Sonoma, Inc.
    10,546       693,610  
                 
              33,042,622  
 
Semiconductors & Semiconductor Equipment 4.0%
Analog Devices, Inc.
    37,385       1,911,121  
Applied Materials, Inc.
    144,482       3,338,256  
Avago Technologies Ltd.
    29,768       2,443,655  
Intel Corp.
    595,242       20,785,851  
KLA-Tencor Corp.
    19,758       1,509,906  
Lam Research Corp.
    19,046       1,369,598  
Linear Technology Corp.
    28,598       1,290,056  
Marvell Technology Group Ltd.
    51,582       717,506  
Maxim Integrated Products, Inc.
    34,303       1,059,620  
Microchip Technology, Inc.
    24,241       1,183,688  
Micron Technology, Inc. *
    127,985       4,172,311  
Texas Instruments, Inc.
    129,341       6,231,649  
                 
              46,013,217  
 
Software & Services 3.0%
CA, Inc.
    38,527       1,088,002  
Cadence Design Systems, Inc. *
    34,391       606,657  
Computer Sciences Corp.
    17,395       1,040,047  
International Business Machines Corp.
    114,186       21,957,968  
Leidos Holdings, Inc.
    7,417       279,250  
Paychex, Inc.
    38,149       1,588,906  
The Western Union Co.
    65,911       1,151,465  
Total System Services, Inc.
    19,063       599,722  
VeriSign, Inc. *
    14,780       843,569  
Xerox Corp.
    134,627       1,859,199  
Yahoo! Inc. *
    111,403       4,290,130  
                 
              35,304,915  
 
Technology Hardware & Equipment 2.2%
Arrow Electronics, Inc. *
    12,117       754,283  
Avnet, Inc.
    16,646       740,913  
Corning, Inc.
    155,823       3,250,468  
Harris Corp.
    12,893       920,431  
Hewlett-Packard Co.
    225,434       8,566,492  
Jabil Circuit, Inc.
    21,591       465,934  
Motorola Solutions, Inc.
    26,934       1,599,880  
NCR Corp. *
    19,910       680,126  
Seagate Technology plc
    39,067       2,444,813  
TE Connectivity Ltd.
    48,600       3,046,248  
Western Digital Corp.
    24,730       2,547,437  
                 
              25,017,025  
 
Telecommunication Services 4.4%
AT&T, Inc.
    621,386       21,723,655  
CenturyLink, Inc.
    68,428       2,804,864  
Frontier Communications Corp.
    116,952       795,274  
Sprint Corp. *
    106,843       599,389  
Verizon Communications, Inc.
    495,738       24,697,667  
Windstream Holdings, Inc. (a)
    69,605       786,536  
                 
              51,407,385  
 
Transportation 0.3%
Norfolk Southern Corp.
    37,067       3,966,169  
 
Utilities 6.0%
AGL Resources, Inc.
    14,197       756,842  
Alliant Energy Corp.
    13,000       760,370  
Ameren Corp.
    28,647       1,145,594  
American Electric Power Co., Inc.
    58,484       3,140,591  
American Water Works Co., Inc.
    21,113       1,068,529  
Aqua America, Inc.
    21,630       540,966  
CenterPoint Energy, Inc.
    50,327       1,250,123  
CMS Energy Corp.
    32,900       1,004,766  
Consolidated Edison, Inc.
    35,372       2,047,685  
Dominion Resources, Inc.
    69,640       4,890,121  
DTE Energy Co.
    21,468       1,679,871  
Duke Energy Corp.
    84,414       6,245,792  
Edison International
    39,344       2,326,804  
Entergy Corp.
    21,559       1,668,882  
Exelon Corp.
    102,746       3,433,771  
FirstEnergy Corp.
    50,794       1,739,187  
Integrys Energy Group, Inc.
    9,616       652,830  
MDU Resources Group, Inc.
    22,753       712,396  
National Fuel Gas Co.
    10,188       778,771  
NextEra Energy, Inc.
    52,072       5,126,488  
NiSource, Inc.
    37,977       1,506,548  
Northeast Utilities
    38,106       1,748,684  
NRG Energy, Inc.
    41,383       1,273,769  
OGE Energy Corp.
    23,219       871,177  
Pepco Holdings, Inc.
    28,925       797,173  
PG&E Corp.
    55,126       2,562,256  
Pinnacle West Capital Corp.
    13,434       765,066  
PPL Corp.
    79,531       2,754,158  
Public Service Enterprise Group, Inc.
    60,602       2,265,909  
Questar Corp.
    21,913       515,175  
SCANA Corp.
    17,320       899,601  
Sempra Energy
    27,381       2,901,565  
TECO Energy, Inc.
    27,936       505,642  
The Southern Co.
    106,146       4,712,882  
UGI Corp.
    13,182       698,382  
Westar Energy, Inc.
    14,688       542,428  
Wisconsin Energy Corp.
    26,742       1,212,215  
Xcel Energy, Inc.
    60,566       1,941,140  
                 
              69,444,149  
                 
Total Common Stock
(Cost $939,758,277)     1,158,924,925  
         
                 
                 
 
 
 
See financial notes 37

Table of Contents

 
 Schwab U.S. Large-Cap Value ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Companies 0.1% of net assets
 
Equity Fund 0.1%
iShares Russell 1000 Value ETF
    11,000       1,129,040  
 
Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)
    458,084       458,084  
 
Securities Lending Collateral 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)
    202       202  
                 
Total Other Investment Companies
(Cost $1,548,517)     1,587,326  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $941,769,305 and the unrealized appreciation and depreciation were $220,956,500 and ($2,213,554), respectively, with a net unrealized appreciation $218,742,946.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $122,158.
(b) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
 
 
38 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .9%   Common Stock     985,694,317       1,189,455,202  
  0 .9%   Other Investment Companies     10,125,970       10,126,276  
 
 
  100 .8%   Total Investments     995,820,287       1,199,581,478  
  (0 .8)%   Other Assets and
Liabilities, Net 		            (9,064,556 )
 
 
  100 .0%   Net Assets             1,190,516,922  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.9% of net assets
 
Automobiles & Components 1.5%
Dana Holding Corp.
    72,544       1,685,197  
Gentex Corp.
    69,284       2,047,342  
Lear Corp.
    37,633       3,805,825  
The Goodyear Tire & Rubber Co.
    128,776       3,344,313  
TRW Automotive Holdings Corp. *
    51,749       4,982,911  
Visteon Corp. *
    22,345       2,261,091  
                 
              18,126,679  
 
Banks 3.6%
Associated Banc-Corp.
    74,683       1,357,737  
BankUnited, Inc.
    48,144       1,518,943  
BOK Financial Corp.
    9,660       650,891  
City National Corp.
    22,096       1,676,644  
Commerce Bancshares, Inc.
    37,927       1,749,573  
Cullen/Frost Bankers, Inc.
    24,109       1,894,967  
East West Bancorp, Inc.
    66,446       2,314,979  
First Horizon National Corp.
    110,554       1,344,337  
First Niagara Financial Group, Inc.
    165,241       1,437,597  
First Republic Bank
    57,627       2,817,960  
Hancock Holding Co.
    39,752       1,321,356  
Hudson City Bancorp, Inc.
    223,867       2,209,567  
Huntington Bancshares, Inc.
    386,336       3,803,478  
Nationstar Mortgage Holdings, Inc. *
    9,697       339,395  
New York Community Bancorp, Inc.
    204,036       3,254,374  
Ocwen Financial Corp. *
    54,098       1,511,498  
People’s United Financial, Inc.
    147,650       2,207,368  
Popular, Inc. *
    47,479       1,469,950  
Prosperity Bancshares, Inc.
    27,638       1,669,335  
Signature Bank *
    23,520       2,786,179  
SVB Financial Group *
    22,933       2,552,902  
TFS Financial Corp. *
    35,953       519,161  
Zions Bancorp
    94,080       2,741,491  
                 
              43,149,682  
 
Capital Goods 12.0%
A.O. Smith Corp.
    34,694       1,702,782  
Acuity Brands, Inc.
    19,992       2,476,609  
AECOM Technology Corp. *
    47,138       1,783,702  
AGCO Corp.
    40,573       1,981,585  
Allegion plc
    41,749       2,147,151  
Allison Transmission Holdings, Inc.
    76,633       2,351,100  
Armstrong World Industries, Inc. *
    21,170       1,221,086  
B/E Aerospace, Inc. *
    46,453       3,936,427  
Carlisle Cos., Inc.
    29,401       2,437,343  
Chicago Bridge & Iron Co. N.V.
    50,738       3,217,804  
CLARCOR, Inc.
    23,134       1,462,300  
Colfax Corp. *
    43,946       2,795,405  
Crane Co.
    22,306       1,552,275  
Donaldson Co., Inc.
    61,156       2,559,990  
EMCOR Group, Inc.
    32,457       1,402,142  
Fortune Brands Home & Security, Inc.
    77,618       3,353,874  
Generac Holdings, Inc. *
    31,754       1,477,196  
Graco, Inc.
    27,734       2,131,635  
HD Supply Holdings, Inc. *
    45,280       1,257,426  
Hexcel Corp. *
    45,866       1,889,221  
Hubbell, Inc., Class B
    25,465       3,078,718  
IDEX Corp.
    38,230       2,941,416  
ITT Corp.
    43,065       2,061,091  
Jacobs Engineering Group, Inc. *
    61,741       3,328,457  
KBR, Inc.
    68,211       1,502,006  
Kennametal, Inc.
    37,441       1,677,731  
Lennox International, Inc.
    20,581       1,723,865  
Lincoln Electric Holdings, Inc.
    37,044       2,633,828  
Masco Corp.
    166,409       3,905,619  
MSC Industrial Direct Co., Inc., Class A
    21,757       1,961,176  
Nordson Corp.
    28,453       2,306,400  
NOW, Inc. *
    49,899       1,648,164  
Oshkosh Corp.
    38,810       1,928,081  
Owens Corning
    51,176       1,842,336  
Pall Corp.
    51,157       4,316,116  
Quanta Services, Inc. *
    100,548       3,653,914  
Regal-Beloit Corp.
    20,947       1,488,703  
Sensata Technologies Holding N.V. *
    73,500       3,613,995  
Snap-on, Inc.
    27,049       3,379,773  
Spirit AeroSystems Holdings, Inc., Class A *
    59,874       2,296,168  
SPX Corp.
    20,581       2,141,453  
Teledyne Technologies, Inc. *
    17,641       1,712,412  
Terex Corp.
    50,570       1,891,824  
The Babcock & Wilcox Co.
    51,898       1,507,637  
The Manitowoc Co., Inc.
    63,831       1,877,908  
The Middleby Corp. *
    26,460       2,281,646  
The Timken Co.
    35,870       1,624,552  
The Toro Co.
    25,874       1,592,027  
TransDigm Group, Inc.
    22,933       4,311,175  
Trinity Industries, Inc.
    71,740       3,470,781  
Triumph Group, Inc.
    24,824       1,722,041  
United Rentals, Inc. *
    45,277       5,326,839  
URS Corp.
    32,343       1,959,339  
USG Corp. *
    47,628       1,379,783  
Valmont Industries, Inc. (a)
    12,557       1,767,398  
WABCO Holdings, Inc. *
    28,226       2,912,923  
 
 
 
See financial notes 39

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Wabtec Corp.
    45,277       3,774,291  
Watsco, Inc.
    12,348       1,142,067  
WESCO International, Inc. *
    20,581       1,728,598  
Woodward, Inc.
    27,638       1,443,533  
Xylem, Inc.
    85,850       3,198,771  
                 
              143,191,608  
 
Commercial & Professional Services 2.9%
Cintas Corp.
    47,891       3,167,511  
Clean Harbors, Inc. *
    25,285       1,530,754  
Copart, Inc. *
    51,158       1,761,370  
Covanta Holding Corp.
    59,980       1,258,980  
Equifax, Inc.
    57,037       4,492,234  
Iron Mountain, Inc.
    79,380       2,856,093  
KAR Auction Services, Inc.
    66,056       1,992,249  
Manpowergroup, Inc.
    37,809       2,933,222  
Pitney Bowes, Inc.
    94,671       2,561,797  
Robert Half International, Inc.
    63,504       3,188,536  
Rollins, Inc.
    29,402       874,710  
The Dun & Bradstreet Corp.
    17,053       2,001,681  
Towers Watson & Co., Class A
    29,989       3,287,694  
Waste Connections, Inc.
    57,038       2,798,284  
                 
              34,705,115  
 
Consumer Durables & Apparel 4.8%
Brunswick Corp.
    42,338       1,820,534  
Carter’s, Inc.
    25,285       2,093,092  
D.R. Horton, Inc.
    152,292       3,301,691  
Fossil Group, Inc. *
    22,344       2,263,224  
Hanesbrands, Inc.
    46,453       4,769,794  
Harman International Industries, Inc.
    31,421       3,615,929  
Hasbro, Inc.
    54,098       2,848,530  
Jarden Corp. *
    55,864       3,340,109  
Leggett & Platt, Inc.
    64,683       2,269,726  
Lennar Corp., Class A
    82,908       3,248,335  
Mohawk Industries, Inc. *
    28,225       4,121,414  
Newell Rubbermaid, Inc.
    129,365       4,336,315  
NVR, Inc. *
    1,772       2,078,893  
Polaris Industries, Inc.
    30,576       4,445,139  
PulteGroup, Inc.
    158,772       3,051,598  
Toll Brothers, Inc. *
    74,680       2,657,861  
Tupperware Brands Corp.
    23,521       1,723,148  
Under Armour, Inc., Class A *
    75,696       5,174,579  
                 
              57,159,911  
 
Consumer Services 2.8%
Aramark
    29,232       757,109  
Bally Technologies, Inc. *
    17,610       1,396,297  
Bloomin’ Brands, Inc. *
    35,526       591,153  
Brinker International, Inc.
    30,578       1,495,264  
Burger King Worldwide, Inc.
    27,051       866,714  
Darden Restaurants, Inc.
    61,743       2,921,679  
Domino’s Pizza, Inc.
    25,873       1,952,118  
Dunkin’ Brands Group, Inc.
    50,153       2,183,662  
Extended Stay America, Inc.
    25,150       600,079  
Graham Holdings Co., Class B
    2,171       1,560,515  
H&R Block, Inc.
    128,188       4,298,144  
International Game Technology
    115,254       1,943,182  
MGM Resorts International *
    155,824       3,813,013  
Norwegian Cruise Line Holdings Ltd. *
    43,891       1,462,009  
Panera Bread Co., Class A *
    12,023       1,802,729  
Penn National Gaming, Inc. *
    32,760       369,860  
SeaWorld Entertainment, Inc.
    31,164       647,899  
Service Corp. International
    99,426       2,204,274  
Six Flags Entertainment Corp.
    44,101       1,608,804  
Sotheby’s
    31,754       1,295,881  
                 
              33,770,385  
 
Diversified Financials 2.7%
CBOE Holdings, Inc.
    39,986       2,120,258  
Credit Acceptance Corp. *
    4,568       562,960  
E*TRADE Financial Corp. *
    133,476       2,971,176  
Eaton Vance Corp.
    56,451       2,210,621  
Federated Investors, Inc., Class B
    44,298       1,359,506  
FNFV Group *
    42,924       643,001  
Legg Mason, Inc.
    48,219       2,378,161  
LPL Financial Holdings, Inc.
    35,868       1,746,413  
MSCI, Inc. *
    54,098       2,496,082  
Navient Corp.
    197,236       3,538,414  
Raymond James Financial, Inc.
    57,626       3,148,685  
SEI Investments Co.
    66,447       2,518,009  
The NASDAQ OMX Group, Inc.
    54,686       2,377,200  
Voya Financial, Inc.
    62,918       2,459,465  
Waddell & Reed Financial, Inc., Class A
    39,397       2,147,136  
                 
              32,677,087  
 
Energy 7.2%
Atwood Oceanics, Inc. *
    27,048       1,336,442  
Cheniere Energy, Inc. *
    102,316       8,211,882  
Cimarex Energy Co.
    40,573       5,889,577  
Core Laboratories N.V.
    20,581       3,251,592  
CVR Energy, Inc. (a)
    7,058       350,289  
Dresser-Rand Group, Inc. *
    35,869       2,485,722  
Dril-Quip, Inc. *
    18,816       1,909,259  
Energen Corp.
    34,105       2,744,770  
EP Energy Corp., Class A *
    16,275       314,596  
Frank’s International N.V.
    13,859       279,259  
Gulfport Energy Corp. *
    39,986       2,339,181  
Helix Energy Solutions Group, Inc. *
    45,538       1,244,098  
Helmerich & Payne, Inc.
    50,568       5,312,168  
Kosmos Energy Ltd. *
    47,342       474,367  
Laredo Petroleum, Inc. *
    26,757       632,535  
Nabors Industries Ltd.
    122,307       3,327,973  
Newfield Exploration Co. *
    62,548       2,803,401  
Oasis Petroleum, Inc. *
    44,101       2,169,328  
Oceaneering International, Inc.
    50,569       3,517,580  
Oil States International, Inc. *
    24,697       1,594,191  
Patterson-UTI Energy, Inc.
    67,735       2,339,567  
QEP Resources, Inc.
    84,894       3,019,680  
Rosetta Resources, Inc. *
    29,553       1,477,650  
Rowan Cos. plc, Class A
    58,401       1,770,718  
RPC, Inc.
    27,636       629,272  
SM Energy Co.
    31,752       2,827,198  
Superior Energy Services, Inc.
    72,915       2,613,274  
Targa Resources Corp.
    12,937       1,805,358  
Teekay Corp.
    18,156       1,113,326  
Tesoro Corp.
    60,567       3,921,108  
 
 
 
40 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Tidewater, Inc.
    23,030       1,171,536  
Ultra Petroleum Corp. *(a)
    71,926       1,908,197  
Western Refining, Inc.
    34,046       1,584,160  
Whiting Petroleum Corp. *
    55,274       5,121,689  
World Fuel Services Corp.
    33,518       1,487,529  
WPX Energy, Inc. *
    94,087       2,504,596  
                 
              85,483,068  
 
Food & Staples Retailing 0.6%
Safeway, Inc.
    107,608       3,742,606  
Sprouts Farmers Market, Inc. *
    48,134       1,489,266  
The Fresh Market, Inc. *
    19,056       635,518  
United Natural Foods, Inc. *
    22,933       1,474,362  
                 
              7,341,752  
 
Food, Beverage & Tobacco 1.0%
Flowers Foods, Inc.
    82,324       1,611,904  
Ingredion, Inc.
    34,693       2,767,113  
Pilgrim’s Pride Corp. *
    27,338       816,586  
Pinnacle Foods, Inc.
    25,733       832,720  
Seaboard Corp. *
    131       379,802  
The Hain Celestial Group, Inc. *
    22,933       2,255,690  
The WhiteWave Foods Co. *
    82,565       2,891,426  
                 
              11,555,241  
 
Health Care Equipment & Services 4.5%
Align Technology, Inc. *
    33,156       1,805,676  
athenahealth, Inc. *
    17,462       2,522,211  
Brookdale Senior Living, Inc. *
    81,732       2,856,533  
Centene Corp. *
    26,983       2,108,182  
Community Health Systems, Inc. *
    54,252       2,944,799  
DENTSPLY International, Inc.
    66,446       3,169,806  
Envision Healthcare Holdings, Inc. *
    47,040       1,719,782  
Hologic, Inc. *
    127,008       3,158,689  
IDEXX Laboratories, Inc. *
    24,109       2,988,793  
MEDNAX, Inc. *
    46,454       2,659,492  
Omnicare, Inc.
    46,453       2,962,308  
Patterson Cos., Inc.
    39,168       1,577,295  
Premier, Inc., Class A *
    12,693       400,845  
ResMed, Inc. (a)
    65,272       3,462,680  
Sirona Dental Systems, Inc. *
    25,873       2,108,908  
Team Health Holdings, Inc. *
    32,341       1,892,595  
Teleflex, Inc.
    18,817       2,060,085  
Tenet Healthcare Corp. *
    46,137       2,822,662  
The Cooper Cos., Inc.
    22,345       3,642,905  
Universal Health Services, Inc., Class B
    41,749       4,777,756  
Veeva Systems, Inc., Class A *
    11,689       350,319  
WellCare Health Plans, Inc. *
    20,581       1,355,465  
                 
              53,347,786  
 
Household & Personal Products 0.7%
Coty, Inc., Class A
    26,562       456,601  
Energizer Holdings, Inc.
    28,813       3,501,356  
Herbalife Ltd. (a)
    35,095       1,789,143  
Nu Skin Enterprises, Inc., Class A
    27,637       1,235,926  
Spectrum Brands Holdings, Inc.
    10,013       867,126  
                 
              7,850,152  
 
Insurance 5.6%
Alleghany Corp. *
    7,644       3,295,558  
Allied World Assurance Co. Holdings AG
    45,278       1,674,833  
American Financial Group, Inc.
    33,403       2,003,178  
American National Insurance Co.
    1,765       200,928  
AmTrust Financial Services, Inc. (a)
    13,579       597,883  
Arch Capital Group Ltd. *
    54,685       3,039,392  
Arthur J. Gallagher & Co.
    74,088       3,499,176  
Assurant, Inc.
    33,516       2,237,193  
Assured Guaranty Ltd.
    82,320       1,988,028  
Axis Capital Holdings Ltd.
    47,046       2,268,558  
Brown & Brown, Inc.
    54,099       1,764,709  
Cincinnati Financial Corp.
    68,798       3,308,496  
CNO Financial Group, Inc.
    101,730       1,815,881  
Erie Indemnity Co., Class A
    11,821       904,425  
Everest Re Group Ltd.
    21,757       3,564,667  
FNF Group *
    128,774       3,645,592  
Genworth Financial, Inc., Class A *
    231,681       3,287,553  
HCC Insurance Holdings, Inc.
    47,752       2,394,285  
Markel Corp. *
    6,468       4,267,587  
Old Republic International Corp.
    113,546       1,742,931  
PartnerRe Ltd.
    20,584       2,299,027  
ProAssurance Corp.
    27,639       1,276,922  
Protective Life Corp.
    37,045       2,570,923  
Reinsurance Group of America, Inc.
    32,341       2,683,656  
RenaissanceRe Holdings Ltd.
    18,818       1,926,775  
Torchmark Corp.
    61,741       3,367,972  
Validus Holdings Ltd.
    42,339       1,655,878  
W.R. Berkley Corp.
    48,218       2,331,340  
White Mountains Insurance Group Ltd.
    2,503       1,587,503  
                 
              67,200,849  
 
Materials 7.6%
Airgas, Inc.
    31,640       3,492,423  
Albemarle Corp.
    37,044       2,355,258  
Allegheny Technologies, Inc.
    51,247       2,161,086  
AptarGroup, Inc.
    30,577       1,961,515  
Ashland, Inc.
    33,700       3,613,314  
Avery Dennison Corp.
    44,689       2,150,882  
Axiall Corp.
    32,395       1,346,984  
Bemis Co., Inc.
    47,043       1,916,532  
Carpenter Technology Corp.
    24,902       1,362,886  
Cliffs Natural Resources, Inc. (a)
    68,460       1,031,692  
Crown Holdings, Inc. *
    64,682       3,122,200  
Cytec Industries, Inc.
    16,474       1,697,481  
Eagle Materials, Inc.
    23,284       2,372,872  
Graphic Packaging Holding Co. *
    151,116       1,932,774  
Greif, Inc., Class A
    13,930       667,108  
Huntsman Corp.
    91,734       2,466,727  
International Flavors & Fragrances, Inc.
    38,221       3,882,871  
Martin Marietta Materials, Inc.
    28,039       3,671,987  
MeadWestvaco Corp.
    79,386       3,413,598  
NewMarket Corp.
    4,972       2,023,057  
Owens-Illinois, Inc. *
    78,396       2,413,813  
Packaging Corp. of America
    45,865       3,118,361  
Platform Specialty Products Corp. *
    42,336       1,156,196  
 
 
 
See financial notes 41

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Rayonier Advanced Materials, Inc. *(a)
    19,602       650,982  
Reliance Steel & Aluminum Co.
    35,869       2,507,960  
Rock-Tenn Co., Class A
    67,034       3,295,391  
Rockwood Holdings, Inc.
    33,517       2,714,207  
Royal Gold, Inc.
    30,773       2,392,601  
RPM International, Inc.
    61,152       2,882,094  
Sealed Air Corp.
    90,556       3,269,072  
Silgan Holdings, Inc.
    19,993       1,006,648  
Sonoco Products Co.
    46,454       1,912,047  
Steel Dynamics, Inc.
    111,885       2,600,207  
The Scotts Miracle-Gro Co., Class A
    19,993       1,154,196  
The Valspar Corp.
    36,457       2,944,267  
TimkenSteel Corp.
    17,938       857,078  
Valhi, Inc. (a)
    10,250       80,770  
Vulcan Materials Co.
    61,154       3,875,941  
W.R. Grace & Co. *
    35,869       3,552,107  
Westlake Chemical Corp.
    18,817       1,827,695  
                 
              90,854,880  
 
Media 1.7%
AMC Networks, Inc., Class A *
    27,915       1,746,781  
Cablevision Systems Corp., Class A
    100,840       1,866,548  
CBS Outdoor Americas, Inc. REIT
    54,591       1,876,293  
Cinemark Holdings, Inc.
    48,806       1,722,364  
Clear Channel Outdoor Holdings, Inc., Class A
    18,340       127,280  
Gannett Co., Inc.
    105,846       3,573,361  
Lamar Advertising Co., Class A
    30,753       1,613,917  
Morningstar, Inc.
    9,409       646,210  
Regal Entertainment Group, Class A
    37,288       784,912  
The Interpublic Group of Cos., Inc.
    197,575       3,858,640  
The Madison Square Garden Co., Class A *
    28,224       1,887,057  
                 
              19,703,363  
 
Pharmaceuticals, Biotechnology & Life Sciences 4.8%
Alkermes plc *
    68,077       3,045,084  
ARIAD Pharmaceuticals, Inc. *(a)
    90,378       562,151  
Bio-Rad Laboratories, Inc., Class A *
    8,821       1,060,813  
BioMarin Pharmaceutical, Inc. *
    67,621       4,815,968  
Bruker Corp. *
    51,319       1,029,459  
Covance, Inc. *
    26,719       2,215,005  
Cubist Pharmaceuticals, Inc. *
    35,868       2,475,968  
Endo International plc *
    65,423       4,168,099  
Hospira, Inc. *
    77,617       4,171,138  
Incyte Corp. *
    69,973       3,792,537  
Jazz Pharmaceuticals plc *
    25,063       4,083,264  
Medivation, Inc. *
    36,272       3,310,183  
Mettler-Toledo International, Inc. *
    13,525       3,658,242  
PerkinElmer, Inc.
    52,922       2,373,552  
Pharmacyclics, Inc. *
    31,752       3,949,631  
Quintiles Transnational Holdings, Inc. *
    24,731       1,387,904  
Salix Pharmaceuticals Ltd. *
    29,400       4,677,834  
Seattle Genetics, Inc. *
    52,442       2,307,972  
Techne Corp.
    15,876       1,516,476  
United Therapeutics Corp. *
    20,582       2,425,177  
                 
              57,026,457  
 
Real Estate 9.2%
Alexandria Real Estate Equities, Inc.
    33,721       2,665,982  
American Campus Communities, Inc.
    48,218       1,905,093  
American Homes 4 Rent, Class A
    61,048       1,091,538  
Apartment Investment & Management Co., Class A
    68,556       2,349,414  
BioMed Realty Trust, Inc.
    89,969       2,019,804  
Brixmor Property Group, Inc.
    33,744       798,721  
Camden Property Trust
    39,397       2,948,472  
CBL & Associates Properties, Inc.
    77,621       1,474,799  
CBRE Group, Inc., Class A *
    129,955       4,129,970  
Chimera Investment Corp.
    484,067       1,602,262  
Corrections Corp. of America
    54,099       1,928,088  
DDR Corp.
    138,465       2,522,832  
Douglas Emmett, Inc.
    59,391       1,696,801  
Duke Realty Corp.
    153,776       2,860,234  
Equity Lifestyle Properties, Inc.
    35,870       1,638,900  
Essex Property Trust, Inc.
    28,812       5,573,681  
Extra Space Storage, Inc.
    52,394       2,761,164  
Federal Realty Investment Trust
    31,272       3,902,120  
Forest City Enterprises, Inc., Class A *
    74,529       1,550,203  
Gaming & Leisure Properties, Inc.
    41,011       1,365,666  
Highwoods Properties, Inc.
    42,338       1,801,482  
Home Properties, Inc.
    26,461       1,699,326  
Hospitality Properties Trust
    69,977       2,059,423  
Jones Lang LaSalle, Inc.
    20,882       2,790,044  
Kilroy Realty Corp.
    38,223       2,417,605  
Liberty Property Trust
    69,061       2,446,141  
MFA Financial, Inc.
    174,463       1,472,468  
Mid-America Apartment Communities, Inc.
    35,649       2,578,136  
National Retail Properties, Inc.
    57,324       2,129,013  
Omega Healthcare Investors, Inc.
    58,478       2,202,866  
Piedmont Office Realty Trust, Inc., Class A
    70,564       1,375,292  
Rayonier, Inc.
    58,804       2,015,213  
Realogy Holdings Corp. *
    67,622       2,756,949  
Realty Income Corp.
    102,901       4,601,733  
Regency Centers Corp.
    43,286       2,473,362  
Retail Properties of America, Inc., Class A
    88,841       1,405,465  
RLJ Lodging Trust
    59,730       1,780,551  
Senior Housing Properties Trust
    93,495       2,181,238  
SL Green Realty Corp.
    44,689       4,886,742  
Starwood Property Trust, Inc.
    103,493       2,468,308  
Tanger Factory Outlet Centers, Inc.
    44,954       1,569,344  
Taubman Centers, Inc.
    29,406       2,239,855  
The Howard Hughes Corp. *
    14,918       2,362,564  
Two Harbors Investment Corp.
    173,666       1,861,700  
UDR, Inc.
    117,603       3,518,682  
Weingarten Realty Investors
    52,564       1,798,740  
WP Carey, Inc.
    27,637       1,887,054  
                 
              109,565,040  
 
Retailing 4.3%
Abercrombie & Fitch Co., Class A
    34,107       1,425,673  
Advance Auto Parts, Inc.
    34,106       4,652,740  
American Eagle Outfitters, Inc.
    80,969       1,140,043  
 
 
 
42 See financial notes

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Ascena Retail Group, Inc. *
    58,217       1,012,394  
AutoNation, Inc. *
    29,401       1,595,004  
Cabela’s, Inc. *
    22,023       1,343,843  
Dick’s Sporting Goods, Inc.
    46,454       2,093,682  
Dillard’s, Inc., Class A
    10,585       1,210,077  
DSW, Inc., Class A
    34,330       1,062,170  
Foot Locker, Inc.
    68,210       3,827,263  
GameStop Corp., Class A
    53,510       2,258,122  
GNC Holdings, Inc., Class A
    43,514       1,651,356  
Groupon, Inc. *
    175,943       1,196,412  
HSN, Inc.
    15,943       965,986  
J.C. Penney Co., Inc. *(a)
    144,953       1,565,492  
LKQ Corp. *
    141,124       4,007,922  
Penske Automotive Group, Inc.
    19,443       932,681  
Sally Beauty Holdings, Inc. *
    62,916       1,754,098  
Sears Holdings Corp. *(a)
    20,412       710,338  
Signet Jewelers Ltd.
    37,172       4,381,464  
Tractor Supply Co.
    64,683       4,330,527  
Ulta Salon, Cosmetics & Fragrance, Inc. *
    29,989       2,918,230  
Urban Outfitters, Inc. *
    47,040       1,871,722  
Williams-Sonoma, Inc.
    40,574       2,668,552  
zulily, Inc., Class A *(a)
    5,301       173,873  
                 
              50,749,664  
 
Semiconductors & Semiconductor Equipment 2.1%
Atmel Corp. *
    196,409       1,740,184  
Cree, Inc. *
    57,038       2,598,651  
First Solar, Inc. *
    33,617       2,342,432  
Freescale Semiconductor Ltd. *
    43,946       925,063  
Lam Research Corp.
    75,854       5,454,661  
Marvell Technology Group Ltd.
    191,712       2,666,714  
ON Semiconductor Corp. *
    211,154       2,060,863  
Skyworks Solutions, Inc.
    88,204       4,997,639  
Teradyne, Inc.
    91,347       1,880,835  
                 
              24,667,042  
 
Software & Services 7.7%
Akamai Technologies, Inc. *
    82,911       5,009,483  
Amdocs Ltd.
    74,679       3,517,381  
ANSYS, Inc. *
    43,687       3,551,753  
AOL, Inc. *
    36,458       1,575,715  
Aspen Technology, Inc. *
    43,985       1,807,344  
Booz Allen Hamilton Holding Corp.
    32,207       714,351  
Broadridge Financial Solutions, Inc.
    57,472       2,444,859  
Cadence Design Systems, Inc. *
    134,069       2,364,977  
CommVault Systems, Inc. *
    20,831       1,148,621  
Computer Sciences Corp.
    67,622       4,043,119  
Concur Technologies, Inc. *
    21,757       2,183,968  
CoStar Group, Inc. *
    14,721       2,130,865  
DST Systems, Inc.
    16,464       1,528,024  
Electronic Arts, Inc. *
    145,826       5,518,056  
FactSet Research Systems, Inc.
    18,229       2,322,375  
FireEye, Inc. *
    14,383       447,887  
FleetCor Technologies, Inc. *
    34,104       4,900,404  
Fortinet, Inc. *
    62,919       1,623,939  
Gartner, Inc. *
    42,338       3,157,991  
Genpact Ltd. *
    74,088       1,289,131  
Global Payments, Inc.
    31,752       2,309,005  
IAC/InterActiveCorp
    35,869       2,496,124  
Informatica Corp. *
    50,663       1,725,328  
Jack Henry & Associates, Inc.
    39,397       2,277,541  
Leidos Holdings, Inc.
    29,402       1,106,985  
MICROS Systems, Inc. *
    34,692       2,358,015  
NetSuite, Inc. *
    14,236       1,247,643  
NeuStar, Inc., Class A *
    24,696       728,285  
PTC, Inc. *
    56,248       2,176,235  
Sabre Corp.
    21,168       385,893  
ServiceNow, Inc. *
    48,506       2,965,172  
SolarWinds, Inc. *
    30,975       1,325,420  
Solera Holdings, Inc.
    31,753       1,935,663  
Splunk, Inc. *
    43,512       2,347,472  
Synopsys, Inc. *
    71,738       2,934,084  
Syntel, Inc. *
    7,057       630,684  
Tableau Software, Inc., Class A *
    15,877       1,039,785  
The Ultimate Software Group, Inc. *
    13,263       1,949,528  
TIBCO Software, Inc. *
    73,146       1,524,363  
Total System Services, Inc.
    78,830       2,479,992  
Vantiv, Inc., Class A *
    65,858       2,060,038  
WEX, Inc. *
    18,228       2,071,612  
                 
              91,355,110  
 
Technology Hardware & Equipment 3.3%
3D Systems Corp. *(a)
    47,452       2,539,157  
Anixter International, Inc.
    12,570       1,121,621  
Arrow Electronics, Inc. *
    46,453       2,891,699  
Avnet, Inc.
    63,506       2,826,652  
Brocade Communications Systems, Inc.
    203,467       2,146,577  
CDW Corp.
    39,396       1,301,644  
CommScope Holding Co., Inc. *
    38,208       984,238  
Dolby Laboratories, Inc., Class A *
    22,406       1,043,672  
EchoStar Corp., Class A *
    18,818       948,992  
FEI Co.
    19,405       1,630,796  
FLIR Systems, Inc.
    65,861       2,225,443  
Harris Corp.
    49,981       3,568,144  
Ingram Micro, Inc., Class A *
    72,328       2,085,216  
IPG Photonics Corp. *
    16,175       1,110,899  
Jabil Circuit, Inc.
    87,230       1,882,423  
JDS Uniphase Corp. *
    108,516       1,253,360  
National Instruments Corp.
    47,423       1,572,072  
NCR Corp. *
    78,474       2,680,672  
Nimble Storage, Inc. *(a)
    3,731       100,886  
Palo Alto Networks, Inc. *
    22,172       1,884,398  
Trimble Navigation Ltd. *
    121,720       4,048,407  
                 
              39,846,968  
 
Telecommunication Services 1.2%
Frontier Communications Corp.
    474,666       3,227,729  
Level 3 Communications, Inc. *
    78,794       3,542,578  
Telephone & Data Systems, Inc.
    42,931       1,130,803  
tw telecom, Inc. *
    65,268       2,678,272  
United States Cellular Corp. *
    6,039       227,791  
Windstream Holdings, Inc. (a)
    284,725       3,217,393  
                 
              14,024,566  
 
Transportation 2.9%
Alaska Air Group, Inc.
    63,506       2,942,868  
AMERCO
    2,752       764,533  
 
 
 
See financial notes 43

Table of Contents

 
 Schwab U.S. Mid-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
American Airlines Group, Inc.
    334,355       13,009,753  
Avis Budget Group, Inc. *
    49,394       3,334,589  
Genesee & Wyoming, Inc., Class A *
    24,221       2,381,651  
J.B. Hunt Transport Services, Inc.
    42,337       3,198,560  
Kirby Corp. *
    26,460       3,156,413  
Landstar System, Inc.
    20,581       1,396,730  
Old Dominion Freight Line, Inc. *
    32,341       2,156,175  
Ryder System, Inc.
    25,405       2,295,088  
                 
              34,636,360  
 
Utilities 5.2%
AGL Resources, Inc.
    55,273       2,946,604  
Alliant Energy Corp.
    51,746       3,026,624  
American Water Works Co., Inc.
    83,499       4,225,884  
Aqua America, Inc.
    81,735       2,044,192  
Atmos Energy Corp.
    47,666       2,409,993  
Cleco Corp.
    27,637       1,559,280  
CMS Energy Corp.
    125,246       3,825,013  
Great Plains Energy, Inc.
    73,269       1,880,815  
Integrys Energy Group, Inc.
    37,046       2,515,053  
ITC Holdings Corp.
    73,503       2,745,337  
MDU Resources Group, Inc.
    88,203       2,761,636  
National Fuel Gas Co.
    39,832       3,044,758  
NRG Energy, Inc.
    159,348       4,904,731  
OGE Energy Corp.
    92,318       3,463,771  
Pepco Holdings, Inc.
    115,839       3,192,523  
Pinnacle West Capital Corp.
    51,157       2,913,391  
Questar Corp.
    83,547       1,964,190  
SCANA Corp.
    65,858       3,420,665  
TECO Energy, Inc.
    106,428       1,926,347  
UGI Corp.
    54,576       2,891,437  
Vectren Corp.
    38,544       1,589,169  
Westar Energy, Inc.
    59,979       2,215,024  
                 
              61,466,437  
                 
Total Common Stock
(Cost $985,694,317)     1,189,455,202  
         
                 
                 
 
 Other Investment Companies 0.9% of net assets
 
Equity Fund 0.0%
SPDR S&P MidCap 400 ETF
    5       1,309  
 
Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)
    289,119       289,119  
 
Securities Lending Collateral 0.9%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (b)
    9,835,848       9,835,848  
                 
Total Other Investment Companies
(Cost $10,125,970)     10,126,276  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $996,149,937 and the unrealized appreciation and depreciation were $217,040,653 and ($13,609,112), respectively, with a net unrealized appreciation of $203,431,541.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $12,592,961.
(b) The rate shown is the 7-day yield.
 
     
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
 
 
44 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .9%   Common Stock     1,697,595,459       2,101,639,329  
  2 .9%   Other Investment Companies     61,610,828       61,610,828  
  0 .0%   Rights     115,419       115,419  
  0 .0%   Short-Term Investment     99,999       99,999  
  0 .0%   Warrants     —       —  
 
 
  102 .8%   Total Investments     1,759,421,705       2,163,465,575  
  (2 .8)%   Other Assets and
Liabilities, Net 		            (58,748,908 )
 
 
  100 .0%   Net Assets             2,104,716,667  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.9% of net assets
 
Automobiles & Components 1.5%
American Axle & Manufacturing Holdings, Inc. *
    54,926       994,161  
Cooper Tire & Rubber Co.
    48,542       1,496,550  
Cooper-Standard Holding, Inc. *
    12,035       788,413  
Dana Holding Corp.
    128,930       2,995,044  
Dorman Products, Inc. *
    24,236       1,086,500  
Drew Industries, Inc.
    18,782       833,733  
Federal-Mogul Holdings Corp. *
    28,968       494,484  
Fox Factory Holding Corp. *
    7,840       119,325  
Fuel Systems Solutions, Inc. *
    3,690       37,380  
Gentex Corp.
    120,003       3,546,089  
Gentherm, Inc. *
    29,506       1,441,368  
Modine Manufacturing Co. *
    38,601       548,906  
Remy International, Inc.
    12,699       280,648  
Standard Motor Products, Inc.
    17,955       675,287  
Superior Industries International, Inc.
    18,687       363,462  
Tenneco, Inc. *
    50,741       3,251,483  
The Goodyear Tire & Rubber Co.
    227,026       5,895,865  
Thor Industries, Inc.
    36,819       1,977,548  
Visteon Corp. *
    39,817       4,029,082  
Winnebago Industries, Inc. *
    24,023       594,089  
                 
              31,449,417  
 
Banks 7.5%
1st Source Corp.
    11,587       347,726  
Ameris Bancorp
    19,659       449,994  
Arrow Financial Corp.
    11,621       309,351  
Associated Banc-Corp.
    131,543       2,391,452  
Astoria Financial Corp.
    71,864       939,262  
BancFirst Corp.
    5,171       329,082  
BancorpSouth, Inc.
    72,314       1,530,887  
Bank Mutual Corp.
    31,896       210,195  
Bank of Hawaii Corp.
    37,492       2,176,411  
Bank of the Ozarks, Inc.
    55,041       1,758,560  
BankUnited, Inc.
    84,030       2,651,146  
Banner Corp.
    16,353       643,981  
BBCN Bancorp, Inc.
    68,390       998,494  
Beneficial Mutual Bancorp, Inc. *
    27,604       379,003  
Berkshire Hills Bancorp, Inc.
    22,934       564,864  
BNC Bancorp
    25,887       439,561  
BofI Holding, Inc. *
    10,400       800,696  
Boston Private Financial Holdings, Inc.
    67,821       823,347  
Bridge Capital Holdings *
    8,564       191,577  
Brookline Bancorp, Inc.
    49,496       452,888  
Bryn Mawr Bank Corp.
    10,236       301,143  
Camden National Corp.
    6,540       239,102  
Capital Bank Financial Corp., Class A *
    38,775       948,824  
Capitol Federal Financial, Inc.
    108,294       1,337,431  
Cardinal Financial Corp.
    25,771       460,528  
Cascade Bancorp *
    6,223       32,111  
Cathay General Bancorp
    60,245       1,568,780  
Centerstate Banks, Inc.
    23,231       242,764  
Central Pacific Financial Corp.
    20,696       363,836  
Chemical Financial Corp.
    25,166       713,959  
City Holding Co.
    13,733       586,674  
City National Corp.
    39,674       3,010,463  
Clifton Bancorp, Inc.
    7,749       97,405  
CoBiz Financial, Inc.
    27,235       314,564  
Columbia Banking System, Inc.
    44,246       1,150,838  
Commerce Bancshares, Inc.
    66,543       3,069,629  
Community Bank System, Inc.
    35,333       1,248,668  
Community Trust Bancorp, Inc.
    14,879       528,502  
CVB Financial Corp.
    78,757       1,223,884  
Dime Community Bancshares, Inc.
    25,203       389,134  
Eagle Bancorp, Inc. *
    19,677       659,770  
East West Bancorp, Inc.
    117,927       4,108,577  
Enterprise Financial Services Corp.
    13,142       229,196  
Essent Group Ltd. *
    15,355       323,376  
EverBank Financial Corp.
    72,982       1,377,900  
F.N.B. Corp.
    133,361       1,648,342  
Federal Agricultural Mortgage Corp., Class C
    9,558       314,649  
Financial Institutions, Inc.
    11,045       265,301  
First BanCorp *
    66,916       348,632  
First Bancorp
    15,372       273,160  
First Busey Corp.
    41,631       239,378  
First Citizens BancShares, Inc., Class A
    5,867       1,348,178  
First Commonwealth Financial Corp.
    71,226       631,062  
First Community Bancshares, Inc.
    11,880       193,882  
First Connecticut Bancorp, Inc.
    11,045       168,988  
First Financial Bancorp
    49,980       830,168  
First Financial Bankshares, Inc. (a)
    49,740       1,461,859  
First Financial Corp.
    7,165       231,573  
First Horizon National Corp.
    190,599       2,317,684  
First Interstate BancSystem, Inc.
    18,182       482,187  
 
 
 
See financial notes 45

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
First Merchants Corp.
    30,636       625,281  
First Midwest Bancorp, Inc.
    61,081       1,029,215  
First Niagara Financial Group, Inc.
    292,368       2,543,602  
FirstMerit Corp.
    132,369       2,281,380  
Flagstar Bancorp, Inc. *
    16,748       291,918  
Flushing Financial Corp.
    23,566       454,824  
Fulton Financial Corp.
    155,420       1,792,770  
German American Bancorp, Inc.
    10,218       276,806  
Glacier Bancorp, Inc.
    61,279       1,668,014  
Great Southern Bancorp, Inc.
    7,984       252,853  
Hancock Holding Co.
    68,515       2,277,439  
Hanmi Financial Corp.
    26,269       539,828  
Heartland Financial USA, Inc.
    13,569       324,570  
Home BancShares, Inc.
    41,201       1,225,730  
Home Loan Servicing Solutions Ltd.
    55,788       1,221,757  
HomeStreet, Inc.
    12,943       235,433  
HomeTrust Bancshares, Inc. *
    17,809       268,560  
Hudson Valley Holding Corp.
    14,792       262,854  
Iberiabank Corp.
    24,947       1,627,792  
Independent Bank Corp.
    19,448       715,881  
Independent Bank Group, Inc.
    2,626       132,902  
International Bancshares Corp.
    49,250       1,298,230  
Investors Bancorp, Inc.
    275,935       2,927,670  
Kearny Financial Corp. *
    8,232       128,831  
Ladder Capital Corp., Class A *
    6,991       130,033  
Lakeland Bancorp, Inc.
    26,055       269,148  
Lakeland Financial Corp.
    11,548       449,679  
MainSource Financial Group, Inc.
    14,747       254,386  
MB Financial, Inc.
    54,268       1,535,249  
Meridian Bancorp, Inc. *
    18,461       195,317  
Metro Bancorp, Inc. *
    9,741       226,576  
MGIC Investment Corp. *
    274,901       2,317,415  
National Bank Holdings Corp., Class A
    33,353       677,733  
National Bankshares, Inc.
    4,962       144,096  
National Penn Bancshares, Inc.
    84,528       845,280  
Nationstar Mortgage Holdings, Inc. *(a)
    17,979       629,265  
NBT Bancorp, Inc.
    37,643       903,808  
NMI Holdings, Inc., Class A *(a)
    4,340       42,011  
Northfield Bancorp, Inc.
    42,461       556,664  
Northwest Bancshares, Inc.
    80,511       1,015,244  
OceanFirst Financial Corp.
    13,276       217,992  
OFG Bancorp
    38,940       619,146  
Old National Bancorp
    83,936       1,098,722  
OmniAmerican Bancorp, Inc.
    7,443       193,220  
Opus Bank *
    4,143       131,292  
Oritani Financial Corp.
    32,277       484,155  
PacWest Bancorp
    79,380       3,329,197  
Park National Corp. (a)
    11,103       864,257  
Park Sterling Corp.
    22,773       155,540  
Peoples Financial Services Corp. (a)
    6,233       314,704  
Pinnacle Financial Partners, Inc.
    26,769       959,936  
Popular, Inc. *
    85,104       2,634,820  
PrivateBancorp, Inc.
    55,064       1,624,939  
Prosperity Bancshares, Inc.
    48,418       2,924,447  
Provident Financial Services, Inc.
    47,214       803,110  
Radian Group, Inc. (a)
    154,299       2,246,593  
Renasant Corp.
    27,148       785,392  
Republic Bancorp, Inc., Class A
    10,281       233,996  
S&T Bancorp, Inc.
    24,869       620,233  
Sandy Spring Bancorp, Inc.
    20,529       496,186  
ServisFirst Bancshares, Inc.
    2,439       73,585  
Signature Bank *
    40,940       4,849,752  
Simmons First National Corp., Class A
    13,282       530,217  
South State Corp.
    19,844       1,162,065  
Southside Bancshares, Inc.
    14,693       504,705  
Southwest Bancorp, Inc.
    16,059       265,455  
Square 1 Financial, Inc., Class A *
    4,895       93,935  
State Bank Financial Corp.
    29,014       486,275  
Sterling Bancorp
    67,027       849,232  
Stock Yards Bancorp, Inc.
    12,455       375,269  
Stonegate Mortgage Corp. *(a)
    6,368       92,400  
Sun Bancorp, Inc. *
    5,421       101,590  
Susquehanna Bancshares, Inc.
    151,647       1,564,997  
SVB Financial Group *
    40,881       4,550,873  
Synovus Financial Corp.
    114,310       2,760,586  
TCF Financial Corp.
    135,951       2,148,026  
Territorial Bancorp, Inc.
    7,863       161,663  
Texas Capital Bancshares, Inc. *
    35,233       1,901,877  
TFS Financial Corp. *
    62,231       898,616  
The Bancorp, Inc. *
    28,900       280,619  
The First of Long Island Corp.
    6,716       234,187  
Tompkins Financial Corp.
    8,781       402,082  
Towne Bank
    27,022       396,143  
Trico Bancshares (a)
    10,265       229,423  
TrustCo Bank Corp.
    62,937       441,818  
Trustmark Corp.
    54,695       1,298,186  
UMB Financial Corp.
    31,908       1,842,687  
Umpqua Holdings Corp.
    153,452       2,680,806  
Union Bankshares Corp.
    35,017       827,452  
United Bankshares, Inc.
    53,764       1,771,524  
United Community Banks, Inc.
    33,346       565,548  
United Financial Bancorp, Inc.
    38,933       482,380  
Univest Corp. of Pennsylvania
    14,564       278,172  
Valley National Bancorp
    161,771       1,617,710  
ViewPoint Financial Group, Inc.
    30,591       796,896  
Walker & Dunlop, Inc. *
    16,887       239,627  
Washington Federal, Inc.
    83,330       1,812,427  
Washington Trust Bancorp, Inc.
    12,659       445,344  
Waterstone Financial, Inc.
    6,363       72,730  
Webster Financial Corp.
    74,282       2,191,319  
WesBanco, Inc.
    25,119       779,945  
Westamerica Bancorp
    21,982       1,063,269  
Western Alliance Bancorp *
    65,104       1,537,105  
Wilshire Bancorp, Inc.
    53,654       523,663  
Wintrust Financial Corp.
    39,594       1,843,893  
WSFS Financial Corp.
    6,010       448,346  
                 
              157,478,918  
 
Capital Goods 10.5%
A.O. Smith Corp.
    62,598       3,072,310  
AAON, Inc.
    32,733       610,798  
AAR Corp.
    34,959       968,364  
Aceto Corp.
    23,353       448,845  
Actuant Corp., Class A
    58,401       1,969,866  
Acuity Brands, Inc.
    35,489       4,396,377  
AECOM Technology Corp. *
    83,557       3,161,797  
Aegion Corp. *
    29,475       726,854  
Aerovironment, Inc. *
    16,779       529,210  
 
 
 
46 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Air Lease Corp.
    72,922       2,763,744  
Aircastle Ltd.
    55,796       1,066,820  
Alamo Group, Inc.
    5,444       265,395  
Albany International Corp., Class A
    25,198       946,689  
Allegion plc
    73,828       3,796,974  
Alliant Techsystems, Inc.
    26,191       3,300,066  
Altra Industrial Motion Corp.
    22,835       759,492  
Ameresco, Inc., Class A *
    13,375       112,484  
American Railcar Industries, Inc. (a)
    8,096       645,251  
American Science & Engineering, Inc.
    6,383       369,576  
American Woodmark Corp. *
    9,090       356,510  
Apogee Enterprises, Inc.
    24,865       907,821  
Applied Industrial Technologies, Inc.
    34,740       1,692,185  
Armstrong World Industries, Inc. *
    35,788       2,064,252  
Astec Industries, Inc.
    16,220       673,779  
Astronics Corp. *
    12,456       781,489  
AZZ, Inc.
    21,890       1,014,383  
Barnes Group, Inc.
    39,414       1,349,535  
Beacon Roofing Supply, Inc. *
    40,341       1,150,525  
Blount International, Inc. *
    37,841       604,699  
Briggs & Stratton Corp.
    37,421       753,659  
Builders FirstSource, Inc. *
    27,505       189,785  
CAI International, Inc. *
    14,189       275,125  
Capstone Turbine Corp. *(a)
    200,438       250,548  
Chart Industries, Inc. *
    25,382       1,697,802  
CIRCOR International, Inc.
    13,936       992,104  
CLARCOR, Inc.
    42,149       2,664,238  
Columbus McKinnon Corp.
    15,571       390,209  
Comfort Systems USA, Inc.
    31,426       477,675  
Continental Building Products, Inc. *
    10,187       162,890  
Crane Co.
    40,896       2,845,953  
Cubic Corp.
    18,073       806,779  
Curtiss-Wright Corp.
    40,589       2,915,914  
DigitalGlobe, Inc. *
    58,865       1,787,730  
Douglas Dynamics, Inc.
    18,279       364,483  
DXP Enterprises, Inc. *
    8,789       704,175  
Dycom Industries, Inc. *
    28,173       879,279  
EMCOR Group, Inc.
    55,330       2,390,256  
Encore Wire Corp.
    15,874       673,851  
EnerSys
    38,850       2,497,666  
Engility Holdings, Inc. *
    14,574       512,130  
EnPro Industries, Inc. *
    18,005       1,222,540  
ESCO Technologies, Inc.
    22,417       807,012  
Esterline Technologies Corp. *
    26,207       3,072,247  
Exelis, Inc.
    155,900       2,679,921  
Federal Signal Corp.
    46,986       691,634  
Foster Wheeler AG
    83,419       2,722,796  
Franklin Electric Co., Inc.
    31,604       1,199,688  
GATX Corp.
    38,541       2,554,112  
GenCorp, Inc. *
    47,226       870,375  
Generac Holdings, Inc. *
    57,686       2,683,553  
General Cable Corp.
    40,479       869,084  
Gibraltar Industries, Inc. *
    23,307       370,814  
Global Brass & Copper Holdings, Inc.
    18,257       282,071  
Global Power Equipment Group, Inc.
    12,130       204,391  
Graco, Inc.
    49,848       3,831,317  
GrafTech International Ltd. *
    91,597       799,642  
Graham Corp.
    8,518       260,310  
Granite Construction, Inc.
    30,931       1,090,936  
Great Lakes Dredge & Dock Corp. *
    32,077       244,427  
Griffon Corp.
    34,675       432,397  
H&E Equipment Services, Inc.
    25,858       1,057,851  
Harsco Corp.
    65,886       1,594,441  
HD Supply Holdings, Inc. *
    81,290       2,257,423  
HEICO Corp.
    47,321       2,451,701  
Hexcel Corp. *
    80,428       3,312,829  
Hillenbrand, Inc.
    51,007       1,705,674  
Huntington Ingalls Industries, Inc.
    40,293       4,114,318  
Hyster-Yale Materials Handling, Inc.
    9,751       751,705  
Insteel Industries, Inc.
    13,431       315,360  
ITT Corp.
    75,413       3,609,266  
John Bean Technologies Corp.
    21,073       612,171  
Kadant, Inc.
    10,218       405,042  
Kaman Corp.
    23,185       942,702  
Kennametal, Inc.
    64,609       2,895,129  
Kratos Defense & Security Solutions, Inc. *
    28,250       212,723  
L.B. Foster Co., Class A
    8,564       449,267  
Layne Christensen Co. *
    9,355       106,460  
Lennox International, Inc.
    37,186       3,114,699  
Lindsay Corp. (a)
    11,194       870,669  
Lydall, Inc. *
    14,108       390,792  
Masonite International Corp. *
    14,224       813,328  
MasTec, Inc. *
    51,089       1,558,214  
Meritor, Inc. *
    75,661       1,031,259  
Moog, Inc., Class A *
    36,586       2,593,947  
MRC Global, Inc. *
    83,844       2,081,008  
Mueller Industries, Inc.
    46,668       1,364,572  
Mueller Water Products, Inc., Class A
    128,632       1,187,273  
MYR Group, Inc. *
    18,857       440,877  
National Presto Industries, Inc. (a)
    3,266       213,890  
Navistar International Corp. *
    58,111       2,191,366  
NCI Building Systems, Inc. *
    21,460       428,342  
Nortek, Inc. *
    13,526       1,126,986  
NOW, Inc. *
    88,548       2,924,740  
Orbital Sciences Corp. *
    49,114       1,314,782  
PGT, Inc. *
    20,929       218,708  
Pike Corp. *
    8,054       96,004  
Ply Gem Holdings, Inc. *
    6,007       70,823  
Polypore International, Inc. *
    34,621       1,552,059  
Powell Industries, Inc.
    8,058       424,576  
Power Solutions International, Inc. *
    4,384       299,646  
Preformed Line Products Co.
    2,541       144,583  
Primoris Services Corp.
    30,254       878,576  
Proto Labs, Inc. *
    17,411       1,310,004  
Quanex Building Products Corp.
    28,884       521,645  
Raven Industries, Inc.
    29,627       789,856  
RBC Bearings, Inc.
    19,066       1,178,660  
Regal-Beloit Corp.
    37,670       2,677,207  
Rexnord Corp. *
    67,133       1,960,955  
Rush Enterprises, Inc., Class A *
    27,884       1,022,506  
Simpson Manufacturing Co., Inc.
    35,283       1,140,347  
SolarCity Corp. *
    40,447       2,777,900  
 
 
 
See financial notes 47

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Spirit AeroSystems Holdings, Inc., Class A *
    105,245       4,036,146  
Standex International Corp.
    10,467       781,152  
Stock Building Supply Holdings, Inc. *
    12,461       211,837  
Sun Hydraulics Corp.
    20,074       803,562  
TAL International Group, Inc. *
    29,598       1,308,232  
Taser International, Inc. *
    42,972       673,371  
Teledyne Technologies, Inc. *
    31,326       3,040,815  
Tennant Co.
    14,865       1,035,942  
Terex Corp.
    90,713       3,393,573  
Textainer Group Holdings Ltd. (a)
    14,054       495,825  
The Babcock & Wilcox Co.
    90,702       2,634,893  
The ExOne Co. *(a)
    8,659       253,449  
The Gorman-Rupp Co.
    16,899       524,376  
The Greenbrier Cos., Inc.
    20,401       1,459,080  
The KEYW Holding Corp. *(a)
    12,715       150,418  
The Manitowoc Co., Inc.
    111,170       3,270,621  
The Middleby Corp. *
    47,102       4,061,605  
The Toro Co.
    45,785       2,817,151  
Thermon Group Holdings, Inc. *
    27,148       737,068  
Titan International, Inc.
    44,969       652,051  
Titan Machinery, Inc. *(a)
    11,744       144,569  
Trex Co., Inc. *
    23,888       898,189  
TriMas Corp. *
    35,856       1,136,635  
Trinity Industries, Inc.
    127,393       6,163,273  
Triumph Group, Inc.
    42,887       2,975,071  
Tutor Perini Corp. *
    31,662       946,061  
Twin Disc, Inc.
    7,442       240,749  
Universal Forest Products, Inc.
    17,079       808,691  
URS Corp.
    56,717       3,435,916  
USG Corp. *
    76,731       2,222,897  
Wabash National Corp. *
    51,678       730,727  
Watsco, Inc.
    22,364       2,068,446  
Watts Water Technologies, Inc., Class A
    23,367       1,478,897  
WESCO International, Inc. *
    36,981       3,106,034  
Woodward, Inc.
    48,524       2,534,409  
                 
              220,364,200  
 
Commercial & Professional Services 3.0%
ABM Industries, Inc.
    45,201       1,202,347  
Acacia Research Corp. (a)
    42,940       763,903  
ACCO Brands Corp. *
    81,969       633,620  
Barrett Business Services, Inc.
    5,789       342,651  
Brady Corp., Class A
    37,729       1,004,346  
CBIZ, Inc. *
    22,474       193,276  
CDI Corp.
    10,421       158,087  
Civeo Corp.
    88,105       2,238,748  
Clean Harbors, Inc. *
    46,177       2,795,556  
Corporate Resource Services, Inc. *(a)
    12,832       23,739  
Covanta Holding Corp.
    107,640       2,259,364  
Deluxe Corp.
    41,900       2,495,145  
Ennis, Inc.
    19,514       281,587  
Exponent, Inc.
    11,195       817,907  
Franklin Covey Co. *
    11,772       224,492  
FTI Consulting, Inc. *
    35,234       1,307,181  
G&K Services, Inc., Class A
    16,709       933,866  
GP Strategies Corp. *
    17,128       431,968  
Healthcare Services Group, Inc.
    57,783       1,579,209  
Heidrick & Struggles International, Inc.
    12,828       277,854  
Heritage-Crystal Clean, Inc. *
    7,981       127,776  
Herman Miller, Inc.
    48,722       1,448,018  
HNI Corp.
    37,248       1,412,072  
Huron Consulting Group, Inc. *
    19,088       1,154,442  
ICF International, Inc. *
    15,858       535,683  
InnerWorkings, Inc. *
    15,205       131,827  
Insperity, Inc.
    19,860       586,069  
Interface, Inc.
    44,906       764,749  
KAR Auction Services, Inc.
    114,970       3,467,495  
Kelly Services, Inc., Class A
    23,585       394,105  
Kforce, Inc.
    24,865       499,040  
Kimball International, Inc., Class B
    26,275       417,247  
Knoll, Inc.
    40,916       748,354  
Korn/Ferry International *
    43,247       1,308,222  
McGrath RentCorp
    21,108       780,996  
Mistras Group, Inc. *
    12,129       260,288  
Mobile Mini, Inc.
    35,083       1,374,201  
MSA Safety, Inc.
    25,560       1,415,002  
Multi-Color Corp.
    11,112       515,375  
Navigant Consulting, Inc. *
    37,870       616,902  
NL Industries, Inc.
    7,775       68,342  
On Assignment, Inc. *
    40,172       1,187,484  
Paylocity Holding Corp. *
    5,653       128,493  
Pendrell Corp. *
    75,272       115,919  
Performant Financial Corp. *
    13,316       128,100  
Pitney Bowes, Inc.
    166,657       4,509,738  
Quad/Graphics, Inc.
    22,917       513,570  
R.R. Donnelley & Sons Co.
    162,397       2,869,555  
Resources Connection, Inc.
    33,503       512,931  
RPX Corp. *
    31,941       485,184  
SP Plus Corp. *
    13,701       296,627  
Steelcase, Inc., Class A
    47,127       739,894  
Team, Inc. *
    14,846       592,504  
Tetra Tech, Inc.
    53,424       1,362,312  
The Advisory Board Co. *
    30,932       1,534,227  
The Brink’s Co.
    39,155       1,072,064  
The Corporate Executive Board Co.
    27,851       1,835,938  
TriNet Group, Inc. *
    12,543       336,278  
TrueBlue, Inc. *
    35,760       970,526  
UniFirst Corp.
    12,117       1,174,743  
United Stationers, Inc.
    32,843       1,335,068  
US Ecology, Inc.
    15,832       676,660  
Viad Corp.
    16,801       368,614  
WageWorks, Inc. *
    25,066       1,034,223  
West Corp.
    17,586       521,601  
                 
              62,293,304  
 
Consumer Durables & Apparel 2.5%
Arctic Cat, Inc.
    11,942       442,093  
Beazer Homes USA, Inc. *
    21,767       410,308  
Black Diamond, Inc. *(a)
    12,222       103,643  
Brunswick Corp.
    75,812       3,259,916  
Callaway Golf Co.
    58,092       442,080  
Cavco Industries, Inc. *
    5,530       395,008  
Columbia Sportswear Co.
    10,046       765,103  
Crocs, Inc. *
    70,981       1,096,656  
Deckers Outdoor Corp. *
    28,437       2,623,029  
Ethan Allen Interiors, Inc.
    22,090       557,331  
 
 
 
48 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
G-III Apparel Group Ltd. *
    14,150       1,167,941  
Harman International Industries, Inc.
    56,004       6,444,940  
Helen of Troy Ltd. *
    22,596       1,315,539  
Hovnanian Enterprises, Inc., Class A *(a)
    88,150       370,230  
Iconix Brand Group, Inc. *
    41,176       1,714,157  
Installed Building Products, Inc. *
    6,592       88,135  
iRobot Corp. *(a)
    23,944       776,504  
Kate Spade & Co. *
    104,072       3,365,689  
KB Home
    71,423       1,267,758  
La-Z-Boy, Inc.
    43,415       926,476  
LeapFrog Enterprises, Inc. *
    36,121       234,064  
LGI Homes, Inc. *
    8,124       155,331  
Libbey, Inc. *
    17,767       490,369  
M.D.C Holdings, Inc.
    34,456       999,569  
M/I Homes, Inc. *
    21,321       485,266  
Marine Products Corp.
    10,434       84,307  
Meritage Homes Corp. *
    30,666       1,265,586  
Movado Group, Inc.
    16,007       594,340  
NACCO Industries, Inc., Class A
    4,968       258,336  
Oxford Industries, Inc.
    11,872       728,110  
Perry Ellis International, Inc. *
    10,438       209,491  
Quiksilver, Inc. *
    79,996       232,788  
Skechers U.S.A., Inc., Class A *
    32,686       1,907,882  
Smith & Wesson Holding Corp. *(a)
    47,452       525,294  
Standard Pacific Corp. *
    123,784       1,036,072  
Steven Madden Ltd. *
    49,264       1,674,483  
Sturm Ruger & Co., Inc. (a)
    16,730       843,359  
Taylor Morrison Home Corp., Class A *
    23,489       466,022  
Tempur Sealy International, Inc. *
    51,010       2,985,105  
The Ryland Group, Inc.
    38,420       1,425,382  
TRI Pointe Homes, Inc. *
    121,204       1,793,819  
Tumi Holdings, Inc. *
    42,919       964,819  
Unifi, Inc. *
    13,526       385,626  
Universal Electronics, Inc. *
    13,017       711,639  
Vera Bradley, Inc. *
    19,435       398,806  
Vince Holding Corp. *
    11,767       427,142  
WCI Communities, Inc. *
    6,252       124,727  
William Lyon Homes, Class A *
    14,296       364,977  
Wolverine World Wide, Inc.
    82,873       2,201,107  
                 
              51,506,354  
 
Consumer Services 3.5%
2U, Inc. *(a)
    7,628       144,169  
American Public Education, Inc. *
    15,123       459,134  
Apollo Education Group, Inc. *
    81,553       2,264,727  
Ascent Capital Group, Inc., Class A *
    10,419       650,250  
Bally Technologies, Inc. *
    32,339       2,564,159  
Belmond Ltd., Class A *
    71,082       908,428  
Biglari Holdings, Inc. *
    1,346       483,685  
BJ’s Restaurants, Inc. *
    20,436       761,650  
Bloomin’ Brands, Inc. *
    63,504       1,056,707  
Bob Evans Farms, Inc.
    20,914       908,086  
Boyd Gaming Corp. *
    65,159       693,943  
Bravo Brio Restaurant Group, Inc. *
    13,145       189,814  
Bridgepoint Education, Inc. *
    7,176       90,202  
Bright Horizons Family Solutions, Inc. *
    24,243       985,963  
Brinker International, Inc.
    53,068       2,595,025  
Buffalo Wild Wings, Inc. *
    15,652       2,312,583  
Caesars Entertainment Corp. *(a)
    31,350       421,344  
Capella Education Co.
    9,304       605,783  
Carriage Services, Inc.
    11,922       222,226  
Chegg, Inc. *(a)
    10,056       69,487  
Choice Hotels International, Inc.
    29,722       1,609,744  
Churchill Downs, Inc.
    9,982       940,005  
Chuy’s Holdings, Inc. *
    13,239       348,186  
ClubCorp Holdings, Inc.
    19,688       365,409  
Cracker Barrel Old Country Store, Inc.
    19,949       2,003,079  
Del Frisco’s Restaurant Group, Inc. *
    20,328       449,859  
Denny’s Corp. *
    61,677       421,254  
DeVry Education Group, Inc.
    46,856       2,011,528  
Diamond Resorts International, Inc. *
    13,748       343,975  
DineEquity, Inc.
    13,140       1,093,248  
Domino’s Pizza, Inc.
    45,550       3,436,748  
Education Management Corp. *(a)
    15,207       19,617  
Fiesta Restaurant Group, Inc. *
    20,657       1,014,052  
Graham Holdings Co., Class B
    3,744       2,691,187  
Grand Canyon Education, Inc. *
    39,031       1,687,700  
Houghton Mifflin Harcourt Co. *
    13,986       268,531  
Ignite Restaurant Group, Inc. *
    5,494       40,546  
International Speedway Corp., Class A
    23,452       785,407  
Interval Leisure Group, Inc.
    33,968       734,388  
Intrawest Resorts Holdings, Inc. *
    13,483       155,189  
Isle of Capri Casinos, Inc. *
    18,372       151,936  
ITT Educational Services, Inc. *(a)
    14,987       126,340  
Jack in the Box, Inc.
    31,915       1,897,347  
K12, Inc. *
    23,412       440,848  
Krispy Kreme Doughnuts, Inc. *
    52,040       885,200  
La Quinta Holdings, Inc. *
    33,206       655,819  
Life Time Fitness, Inc. *
    30,204       1,392,404  
LifeLock, Inc. *
    56,675       839,924  
Marriott Vacations Worldwide Corp. *
    24,355       1,451,314  
Matthews International Corp., Class A
    23,828       1,099,662  
Multimedia Games Holding Co., Inc. *
    23,096       642,300  
Noodles & Co. *
    9,037       176,854  
Papa John’s International, Inc.
    25,109       994,316  
Pinnacle Entertainment, Inc. *
    47,946       1,198,171  
Popeyes Louisiana Kitchen, Inc. *
    20,436       819,484  
Potbelly Corp. *(a)
    6,675       80,768  
Red Robin Gourmet Burgers, Inc. *
    11,195       594,455  
Regis Corp.
    37,598       568,106  
Ruby Tuesday, Inc. *
    41,312       254,895  
Ruth’s Hospitality Group, Inc.
    26,097       290,982  
Scientific Games Corp., Class A *
    35,066       355,920  
SeaWorld Entertainment, Inc.
    57,105       1,187,213  
Service Corp. International
    176,602       3,915,266  
Six Flags Entertainment Corp.
    77,526       2,828,149  
Sonic Corp. *
    40,648       858,079  
Sotheby’s
    57,590       2,350,248  
Speedway Motorsports, Inc.
    8,517       158,416  
 
 
 
See financial notes 49

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Steiner Leisure Ltd. *
    10,199       433,661  
Strayer Education, Inc. *
    9,053       549,698  
Texas Roadhouse, Inc.
    51,284       1,363,642  
The Cheesecake Factory, Inc.
    39,060       1,755,747  
The Marcus Corp.
    16,123       293,600  
The Wendy’s Co.
    211,988       1,727,702  
Town Sports International Holdings, Inc.
    16,601       92,800  
Universal Technical Institute, Inc.
    14,202       158,636  
Vail Resorts, Inc.
    29,802       2,368,961  
Weight Watchers International, Inc. (a)
    23,561       581,721  
Zoe’s Kitchen, Inc. *(a)
    4,858       141,708  
                 
              74,489,309  
 
Diversified Financials 2.6%
Actua Corp. *
    30,344       526,468  
Arlington Asset Investment Corp., Class A
    12,565       357,097  
Artisan Partners Asset Management, Inc., Class A
    27,684       1,535,908  
BGC Partners, Inc., Class A
    131,161       992,889  
Cash America International, Inc.
    24,816       1,107,786  
CBOE Holdings, Inc.
    70,947       3,761,965  
Cohen & Steers, Inc. (a)
    16,403       715,827  
Cowen Group, Inc., Class A *
    92,912       380,010  
Credit Acceptance Corp. *
    7,897       973,226  
Diamond Hill Investment Group, Inc.
    2,154       282,562  
E*TRADE Financial Corp. *
    237,180       5,279,627  
Encore Capital Group, Inc. *
    19,609       870,444  
Evercore Partners, Inc., Class A
    29,500       1,511,285  
Ezcorp, Inc., Class A *
    48,277       513,185  
Federated Investors, Inc., Class B
    78,810       2,418,679  
Financial Engines, Inc.
    42,873       1,537,854  
First Cash Financial Services, Inc. *
    23,267       1,343,902  
FXCM, Inc., Class A (a)
    30,795       446,220  
GAMCO Investors, Inc., Class A
    3,573       279,802  
GFI Group, Inc.
    26,588       120,178  
Green Dot Corp., Class A *
    24,001       453,379  
Greenhill & Co., Inc.
    21,253       1,041,822  
HFF, Inc., Class A
    27,275       818,250  
Interactive Brokers Group, Inc., Class A
    38,714       907,456  
INTL FCStone, Inc. *
    11,809       226,497  
Investment Technology Group, Inc. *
    31,663       539,221  
Janus Capital Group, Inc.
    120,568       1,464,901  
JGWPT Holdings, Inc., Class A *
    8,272       111,672  
KCG Holdings, Inc., Class A *
    72,787       851,608  
Ladenburg Thalmann Financial Services, Inc. *
    63,121       225,973  
MarketAxess Holdings, Inc.
    30,613       1,803,718  
Marlin Business Services Corp.
    8,564       169,396  
Moelis & Co. (a)
    5,417       196,583  
Nelnet, Inc., Class A
    15,574       684,789  
NewStar Financial, Inc. *
    18,846       217,294  
NorthStar Asset Management Group, Inc. *
    149,689       2,767,750  
PHH Corp. *
    46,422       1,112,271  
PICO Holdings, Inc. *
    20,635       456,033  
Piper Jaffray Cos. *
    12,784       682,154  
Portfolio Recovery Associates, Inc. *
    41,298       2,346,965  
Pzena Investment Management, Inc., Class A
    9,524       96,288  
RCS Capital Corp., Class A
    21,916       485,878  
Safeguard Scientifics, Inc. *
    18,782       368,127  
Springleaf Holdings, Inc. *
    16,731       556,808  
Stifel Financial Corp. *
    51,184       2,450,690  
TPG Specialty Lending, Inc. (a)
    15,204       268,503  
Virtus Investment Partners, Inc.
    5,871       1,313,284  
Waddell & Reed Financial, Inc., Class A
    70,037       3,817,016  
Walter Investment Management Corp. *(a)
    31,344       825,914  
Westwood Holdings Group, Inc.
    6,244       372,142  
WisdomTree Investments, Inc. *
    85,946       1,016,741  
World Acceptance Corp. *(a)
    7,761       607,997  
                 
              54,212,034  
 
Energy 6.2%
Alon USA Energy, Inc.
    20,612       342,778  
Alpha Natural Resources, Inc. *(a)
    182,062       719,145  
Apco Oil & Gas International, Inc. *
    14,891       211,899  
Approach Resources, Inc. *(a)
    30,654       548,093  
Arch Coal, Inc. (a)
    146,271       446,127  
Athlon Energy, Inc. *
    52,780       2,456,381  
Atwood Oceanics, Inc. *
    47,688       2,356,264  
Basic Energy Services, Inc. *
    29,806       721,603  
Bill Barrett Corp. *
    43,642       993,728  
Bonanza Creek Energy, Inc. *
    24,743       1,519,468  
BPZ Resources, Inc. *
    60,822       149,014  
Bristow Group, Inc.
    29,256       2,135,103  
C&J Energy Services, Inc. *
    38,391       1,101,438  
CARBO Ceramics, Inc.
    16,729       1,799,873  
Carrizo Oil & Gas, Inc. *
    33,647       2,110,340  
CHC Group Ltd. *
    13,982       97,035  
Clayton Williams Energy, Inc. *
    5,082       601,912  
Clean Energy Fuels Corp. *(a)
    57,317       571,450  
Cloud Peak Energy, Inc. *
    53,465       839,935  
Comstock Resources, Inc.
    38,365       935,339  
Contango Oil & Gas Co. *
    11,712       464,029  
Delek US Holdings, Inc.
    41,855       1,464,088  
Diamondback Energy, Inc. *
    45,614       3,938,769  
Dril-Quip, Inc. *
    33,502       3,399,448  
Energen Corp.
    59,855       4,817,130  
Energy Transfer Partners LP
    11,010       632,528  
Energy XXI Bermuda Ltd.
    75,987       1,253,785  
EP Energy Corp., Class A *(a)
    29,163       563,721  
Era Group, Inc. *
    15,511       397,237  
Evolution Petroleum Corp.
    21,874       219,396  
EXCO Resources, Inc. (a)
    126,550       611,236  
Exterran Holdings, Inc.
    48,136       2,244,582  
Forest Oil Corp. *
    62,814       102,387  
Forum Energy Technologies, Inc. *
    54,145       1,843,637  
Frank’s International N.V.
    23,577       475,077  
Geospace Technologies Corp. *
    11,045       454,170  
Goodrich Petroleum Corp. *(a)
    28,801       636,502  
Green Plains, Inc.
    25,817       1,153,762  
Gulf Island Fabrication, Inc.
    10,509       221,425  
 
 
 
50 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Gulfmark Offshore, Inc., Class A
    19,851       798,209  
Gulfport Energy Corp. *
    69,716       4,078,386  
Halcon Resources Corp. *(a)
    214,746       1,181,103  
Helix Energy Solutions Group, Inc. *
    80,940       2,211,281  
Hercules Offshore, Inc. *
    120,161       404,943  
Hornbeck Offshore Services, Inc. *
    28,223       1,232,216  
ION Geophysical Corp. *
    99,286       342,537  
Isramco, Inc. *(a)
    922       116,163  
Jones Energy, Inc., Class A *
    11,116       213,650  
Key Energy Services, Inc. *
    111,484       702,349  
Kodiak Oil & Gas Corp. *
    220,222       3,583,012  
Kosmos Energy Ltd. *
    87,451       876,259  
Laredo Petroleum, Inc. *
    47,715       1,127,983  
Magnum Hunter Resources Corp. *
    149,274       1,031,483  
Matador Resources Co. *
    57,128       1,563,022  
Matrix Service Co. *
    23,290       657,011  
McDermott International, Inc. *
    191,785       1,380,852  
Midstates Petroleum Co., Inc. *(a)
    16,305       115,113  
Natural Gas Services Group, Inc. *
    10,218       303,270  
Newfield Exploration Co. *
    112,134       5,025,846  
Newpark Resources, Inc. *
    75,799       934,602  
Northern Oil & Gas, Inc. *
    50,557       851,885  
Nuverra Environmental Solutions, Inc. *(a)
    15,537       209,749  
Parker Drilling Co. *
    94,812       595,419  
Patterson-UTI Energy, Inc.
    118,834       4,104,526  
PBF Energy, Inc., Class A
    71,039       2,018,218  
PDC Energy, Inc. *
    29,080       1,747,417  
Penn Virginia Corp. *
    58,794       883,086  
PetroQuest Energy, Inc. *
    45,554       303,390  
PHI, Inc. *
    11,142       476,432  
Pioneer Energy Services Corp. *
    53,952       829,782  
Quicksilver Resources, Inc. *(a)
    55,338       73,600  
Resolute Energy Corp. *(a)
    52,694       423,133  
Rex Energy Corp. *
    37,508       573,122  
Rice Energy, Inc. *
    49,951       1,462,565  
RigNet, Inc. *
    7,443       347,365  
Rosetta Resources, Inc. *
    50,718       2,535,900  
RPC, Inc.
    51,401       1,170,401  
RSP Permian, Inc. *
    29,816       852,738  
Sanchez Energy Corp. *
    40,984       1,360,259  
SandRidge Energy, Inc. *(a)
    296,819       1,555,332  
SEACOR Holdings, Inc. *
    16,551       1,350,562  
SemGroup Corp., Class A
    35,339       3,100,290  
Solazyme, Inc. *(a)
    44,544       417,823  
Stone Energy Corp. *
    46,081       1,621,590  
Swift Energy Co. *(a)
    35,304       400,700  
Synergy Resources Corp. *
    49,446       665,543  
Targa Resources Corp.
    24,016       3,351,433  
Teekay Corp.
    31,195       1,912,877  
Tesco Corp.
    25,657       544,442  
TETRA Technologies, Inc. *
    68,205       804,819  
Tidewater, Inc.
    40,881       2,079,616  
TransAtlantic Petroleum Ltd. *
    12,514       137,279  
Triangle Petroleum Corp. *
    58,987       707,254  
Ultra Petroleum Corp. *(a)
    126,331       3,351,561  
Unit Corp. *
    36,266       2,386,665  
VAALCO Energy, Inc. *
    33,821       309,462  
Vantage Drilling Co. *
    104,508       186,024  
W&T Offshore, Inc.
    29,366       438,141  
Western Refining, Inc.
    62,068       2,888,024  
Willbros Group, Inc. *
    29,096       318,310  
World Fuel Services Corp.
    59,161       2,625,565  
WPX Energy, Inc. *
    166,784       4,439,790  
                 
              129,841,213  
 
Food & Staples Retailing 0.8%
Casey’s General Stores, Inc.
    31,903       2,287,126  
Fairway Group Holdings Corp. *(a)
    12,120       54,419  
Ingles Markets, Inc., Class A
    9,114       230,037  
Natural Grocers by Vitamin Cottage, Inc. *
    7,138       131,696  
PriceSmart, Inc.
    14,250       1,277,085  
Rite Aid Corp. *
    731,695       4,551,143  
Roundy’s, Inc.
    22,216       83,088  
SpartanNash Co.
    31,068       667,651  
SUPERVALU, Inc. *
    169,244       1,616,280  
The Andersons, Inc.
    23,185       1,594,433  
The Chefs’ Warehouse, Inc. *
    15,663       295,874  
The Fresh Market, Inc. *
    35,053       1,169,018  
The Pantry, Inc. *
    19,339       409,407  
United Natural Foods, Inc. *
    39,536       2,541,769  
Village Super Market, Inc., Class A
    3,658       83,878  
Weis Markets, Inc.
    9,291       399,048  
                 
              17,391,952  
 
Food, Beverage & Tobacco 1.8%
Alico, Inc.
    2,484       96,975  
Alliance One International, Inc. *
    45,349       100,675  
Annie’s, Inc. *
    12,920       412,019  
B&G Foods, Inc.
    45,678       1,379,476  
Boulder Brands, Inc. *
    47,773       643,025  
Cal-Maine Foods, Inc.
    12,699       1,004,618  
Calavo Growers, Inc.
    10,892       424,243  
Chiquita Brands International, Inc. *
    38,600       536,540  
Coca-Cola Bottling Co. Consolidated
    3,607       268,216  
Darling Ingredients, Inc. *
    134,436       2,591,926  
Dean Foods Co.
    75,530       1,222,075  
Diamond Foods, Inc. *
    17,929       494,303  
Fresh Del Monte Produce, Inc.
    29,864       953,856  
J&J Snack Foods Corp.
    12,000       1,136,520  
Lancaster Colony Corp.
    15,903       1,405,984  
Limoneira Co.
    7,917       191,829  
National Beverage Corp. *
    9,747       178,662  
Pilgrim’s Pride Corp. *
    50,499       1,508,405  
Pinnacle Foods, Inc.
    45,996       1,488,431  
Post Holdings, Inc. *
    34,435       1,273,062  
Sanderson Farms, Inc.
    17,128       1,598,385  
Seaboard Corp. *
    235       681,324  
Seneca Foods Corp., Class A *
    6,413       193,480  
Snyder’s-Lance, Inc.
    42,870       1,168,636  
The Boston Beer Co., Inc., Class A *
    7,286       1,610,060  
The Hain Celestial Group, Inc. *
    41,449       4,076,924  
The WhiteWave Foods Co. *
    141,384       4,951,268  
Tootsie Roll Industries, Inc. (a)
    18,651       526,891  
TreeHouse Foods, Inc. *
    33,129       2,733,805  
Universal Corp.
    18,888       996,531  
 
 
 
See financial notes 51

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Vector Group Ltd.
    52,852       1,262,634  
                 
              37,110,778  
 
Health Care Equipment & Services 5.4%
Abaxis, Inc.
    18,782       896,841  
ABIOMED, Inc. *(a)
    30,666       798,849  
Acadia Healthcare Co., Inc. *
    35,873       1,837,056  
Accuray, Inc. *(a)
    43,389       353,186  
Air Methods Corp. *
    29,525       1,731,937  
Alere, Inc. *
    64,111       2,272,735  
Align Technology, Inc. *
    58,606       3,191,683  
Allscripts Healthcare Solutions, Inc. *
    130,005       1,920,824  
Amedisys, Inc. *
    27,215       569,338  
AMN Healthcare Services, Inc. *
    31,628       478,215  
Amsurg Corp. *
    33,196       1,785,613  
Analogic Corp.
    10,468       755,790  
AngioDynamics, Inc. *
    21,784       307,372  
Antares Pharma, Inc. *(a)
    67,802       159,335  
athenahealth, Inc. *
    31,309       4,522,272  
Atrion Corp.
    1,155       369,600  
Bio-Reference Laboratories, Inc. *
    20,486       595,118  
BioScrip, Inc. *
    40,519       342,791  
Brookdale Senior Living, Inc. *
    139,735       4,883,738  
Cantel Medical Corp.
    29,181       1,064,231  
Capital Senior Living Corp. *
    22,734       519,927  
Cardiovascular Systems, Inc. *
    21,204       604,102  
Castlight Health, Inc., Class B *(a)
    9,295       110,703  
Centene Corp. *
    46,939       3,667,344  
Chemed Corp. (a)
    14,258       1,505,787  
Computer Programs & Systems, Inc.
    9,341       573,911  
CONMED Corp.
    23,601       932,240  
CorVel Corp. *
    10,912       446,301  
Cyberonics, Inc. *
    20,480       1,175,347  
Cynosure, Inc., Class A *
    17,344       390,760  
DexCom, Inc. *
    57,317       2,533,411  
Endologix, Inc. *
    48,431       668,832  
Exactech, Inc. *
    7,443       177,739  
ExamWorks Group, Inc. *
    26,656       878,315  
Five Star Quality Care, Inc. *
    12,294       57,044  
GenMark Diagnostics, Inc. *
    31,314       336,626  
Gentiva Health Services, Inc. *
    26,185       473,163  
Globus Medical, Inc., Class A *
    47,294       857,913  
Greatbatch, Inc. *
    20,433       931,132  
Haemonetics Corp. *
    42,993       1,534,420  
Hanger, Inc. *
    30,154       675,450  
Health Net, Inc. *
    65,974       3,113,973  
HealthSouth Corp.
    72,448       2,853,727  
HealthStream, Inc. *
    18,041       468,344  
Healthways, Inc. *
    28,243       493,123  
HeartWare International, Inc. *
    12,370       1,003,207  
Hill-Rom Holdings, Inc.
    47,051       2,061,304  
HMS Holdings Corp. *
    70,598       1,613,870  
ICU Medical, Inc. *
    10,993       688,052  
Insulet Corp. *
    47,432       1,712,770  
Integra LifeSciences Holdings Corp. *
    19,984       999,000  
Invacare Corp.
    23,416       359,201  
IPC The Hospitalist Co., Inc. *
    15,125       731,143  
K2M Group Holdings, Inc. *
    7,345       104,372  
Kindred Healthcare, Inc.
    45,567       940,959  
Landauer, Inc.
    8,607       313,467  
LDR Holding Corp. *
    8,835       239,163  
LHC Group, Inc. *
    11,932       307,130  
LifePoint Hospitals, Inc. *
    36,829       2,754,809  
Magellan Health, Inc. *
    23,211       1,296,566  
Masimo Corp. *
    44,627       1,001,430  
MedAssets, Inc. *
    52,847       1,215,481  
Medidata Solutions, Inc. *
    43,280       2,014,251  
Meridian Bioscience, Inc.
    36,487       714,051  
Merit Medical Systems, Inc. *
    31,399       392,801  
Molina Healthcare, Inc. *
    22,886       1,094,866  
MWI Veterinary Supply, Inc. *
    11,046       1,569,084  
National Healthcare Corp.
    6,218       356,291  
National Research Corp., Class A *
    7,173       100,350  
Natus Medical, Inc. *
    23,999       674,612  
Neogen Corp. *
    30,654       1,290,533  
NuVasive, Inc. *
    38,191       1,340,504  
NxStage Medical, Inc. *
    46,762       613,517  
Omnicell, Inc. *
    30,380       855,197  
OraSure Technologies, Inc. *
    47,682       397,191  
Orthofix International N.V. *
    15,507       525,842  
Owens & Minor, Inc.
    50,544       1,738,714  
PharMerica Corp. *
    25,553       636,014  
PhotoMedex, Inc. *(a)
    8,137       66,561  
Quality Systems, Inc.
    36,588       572,968  
Quidel Corp. *
    26,519       625,848  
Select Medical Holdings Corp.
    44,782       627,844  
STERIS Corp.
    49,237       2,771,551  
Surgical Care Affiliates, Inc. *
    7,568       225,224  
SurModics, Inc. *
    11,305       230,848  
Symmetry Medical, Inc. *
    19,003       175,208  
Tandem Diabetes Care, Inc. *
    6,709       94,932  
Team Health Holdings, Inc. *
    57,946       3,391,000  
TearLab Corp. *(a)
    1,669       6,459  
Teleflex, Inc.
    34,291       3,754,179  
The Ensign Group, Inc.
    15,984       559,440  
The Providence Service Corp. *
    10,218       465,226  
The Spectranetics Corp. *
    34,082       967,247  
Thoratec Corp. *
    47,337       1,183,425  
Tornier NV *
    30,137       651,562  
Triple-S Management Corp., Class B *
    18,676       357,459  
Universal American Corp. *
    16,093       137,595  
US Physical Therapy, Inc.
    11,045       394,307  
Vascular Solutions, Inc. *
    12,699       303,506  
VCA, Inc. *
    72,627       2,959,550  
Vocera Communications, Inc. *
    17,262       151,560  
Volcano Corp. *
    42,208       525,068  
WellCare Health Plans, Inc. *
    36,074       2,375,834  
West Pharmaceutical Services, Inc.
    57,843       2,512,122  
Wright Medical Group, Inc. *
    41,514       1,238,778  
                 
              113,797,201  
 
Household & Personal Products 0.4%
Central Garden & Pet Co., Class A *
    33,534       302,141  
Elizabeth Arden, Inc. *
    22,718       388,478  
Harbinger Group, Inc. *
    28,605       370,435  
Inter Parfums, Inc.
    14,963       455,773  
Lifevantage Corp. *(a)
    16,773       21,302  
 
 
 
52 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Medifast, Inc. *
    10,981       368,962  
Nature’s Sunshine Products, Inc.
    8,564       140,878  
Nu Skin Enterprises, Inc., Class A
    49,442       2,211,046  
Revlon, Inc., Class A *
    9,824       333,721  
Rock Creek Pharmaceuticals, Inc. *(a)
    120,850       41,125  
Spectrum Brands Holdings, Inc.
    18,356       1,589,629  
Synutra International, Inc. *(a)
    4,734       26,842  
USANA Health Sciences, Inc. *
    5,497       401,446  
WD-40 Co.
    11,700       803,790  
                 
              7,455,568  
 
Insurance 3.2%
Allied World Assurance Co. Holdings AG
    81,045       2,997,855  
Ambac Financial Group, Inc. *
    38,074       921,391  
American Equity Investment Life Holding Co.
    59,972       1,483,707  
American National Insurance Co.
    3,935       447,960  
AMERISAFE, Inc.
    15,774       595,153  
AmTrust Financial Services, Inc. (a)
    26,068       1,147,774  
Argo Group International Holdings Ltd.
    21,563       1,135,076  
Aspen Insurance Holdings Ltd.
    55,201       2,347,146  
Assurant, Inc.
    58,921       3,932,977  
Assured Guaranty Ltd.
    146,846       3,546,331  
Baldwin & Lyons, Inc., Class B
    7,443       192,550  
Citizens, Inc. *
    21,906       156,628  
CNO Financial Group, Inc.
    179,183       3,198,416  
Crawford & Co., Class B
    19,413       174,911  
Donegal Group, Inc., Class A
    5,949       93,697  
eHealth, Inc. *
    15,811       388,002  
EMC Insurance Group, Inc.
    3,401       104,207  
Employers Holdings, Inc.
    26,569       568,842  
Endurance Specialty Holdings Ltd.
    36,793       2,136,569  
Enstar Group Ltd. *
    8,753       1,242,051  
FBL Financial Group, Inc., Class A
    9,114       426,809  
Fidelity & Guaranty Life
    8,494       191,625  
First American Financial Corp.
    88,789       2,517,168  
Global Indemnity plc *
    8,604       232,652  
Greenlight Capital Re Ltd., Class A *
    25,742       880,634  
Hilltop Holdings, Inc. *
    55,113       1,166,742  
Horace Mann Educators Corp.
    34,256       1,020,829  
Infinity Property & Casualty Corp.
    9,020       616,788  
Kansas City Life Insurance Co.
    2,611       121,255  
Kemper Corp.
    41,871       1,522,011  
Maiden Holdings Ltd.
    43,761       532,134  
MBIA, Inc. *
    121,822       1,270,603  
Meadowbrook Insurance Group, Inc.
    23,769       147,130  
Mercury General Corp.
    31,298       1,603,396  
Montpelier Re Holdings Ltd.
    33,368       1,049,424  
National General Holdings Corp.
    49,331       923,970  
National Interstate Corp.
    15,011       420,308  
National Western Life Insurance Co., Class A
    1,554       394,716  
Old Republic International Corp.
    199,293       3,059,148  
OneBeacon Insurance Group Ltd., Class A
    17,278       276,966  
Platinum Underwriters Holdings Ltd.
    21,965       1,372,154  
Primerica, Inc.
    44,744       2,251,965  
ProAssurance Corp.
    48,830       2,255,946  
Protective Life Corp.
    64,670       4,488,098  
RLI Corp.
    27,563       1,232,066  
Safety Insurance Group, Inc.
    11,394       628,949  
Selective Insurance Group, Inc.
    45,824       1,098,401  
StanCorp Financial Group, Inc.
    36,252       2,375,231  
State Auto Financial Corp.
    11,674       253,326  
Stewart Information Services Corp.
    19,122       616,111  
Symetra Financial Corp.
    77,276       1,880,898  
The Hanover Insurance Group, Inc.
    36,444       2,312,372  
The Navigators Group, Inc. *
    7,993       513,550  
Third Point Reinsurance Ltd. *
    17,431       267,043  
United Fire Group, Inc.
    18,882       553,620  
                 
              67,285,281  
 
Materials 5.7%
A. Schulman, Inc.
    25,742       999,562  
A.M. Castle & Co. *
    12,802       125,460  
Advanced Emissions Solutions, Inc. *
    17,128       373,219  
AEP Industries, Inc. *
    3,308       140,094  
AK Steel Holding Corp. *
    115,805       1,264,591  
Allegheny Technologies, Inc.
    89,291       3,765,401  
Allied Nevada Gold Corp. *(a)
    60,279       230,266  
American Vanguard Corp.
    21,923       294,645  
AptarGroup, Inc.
    54,533       3,498,292  
Axiall Corp.
    57,505       2,391,058  
Balchem Corp.
    24,490       1,259,766  
Berry Plastics Group, Inc. *
    96,397       2,324,132  
Boise Cascade Co. *
    27,023       812,311  
Cabot Corp.
    49,314       2,701,421  
Calgon Carbon Corp. *
    42,591       904,633  
Carpenter Technology Corp.
    43,665       2,389,785  
Century Aluminum Co. *
    44,120       1,102,118  
Chemtura Corp. *
    79,011       1,950,782  
Clearwater Paper Corp. *
    16,786       1,161,591  
Cliffs Natural Resources, Inc. (a)
    124,999       1,883,735  
Coeur Mining, Inc. *
    77,095       610,592  
Commercial Metals Co.
    95,122       1,643,708  
Compass Minerals International, Inc.
    27,795       2,475,701  
Cytec Industries, Inc.
    29,264       3,015,363  
Deltic Timber Corp.
    9,775       647,496  
Domtar Corp.
    53,252       1,985,767  
Eagle Materials, Inc.
    41,787       4,258,513  
Ferro Corp. *
    73,634       992,586  
Flotek Industries, Inc. *
    38,172       1,061,182  
FutureFuel Corp.
    19,469       271,008  
Globe Specialty Metals, Inc.
    50,321       1,033,593  
Gold Resource Corp. (a)
    8,230       51,026  
Graphic Packaging Holding Co. *
    266,960       3,414,418  
Greif, Inc., Class A
    24,681       1,181,973  
H.B. Fuller Co.
    41,199       1,938,001  
Hawkins, Inc.
    8,564       315,155  
Haynes International, Inc.
    9,347       463,424  
Headwaters, Inc. *
    55,427       719,997  
Hecla Mining Co.
    293,799       960,723  
Horsehead Holding Corp. *
    39,465       796,798  
 
 
 
See financial notes 53

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Innophos Holdings, Inc.
    18,782       1,092,173  
Innospec, Inc.
    20,302       856,338  
Intrepid Potash, Inc. *(a)
    46,922       719,314  
Kaiser Aluminum Corp.
    14,887       1,199,148  
KapStone Paper & Packaging Corp. *
    66,243       2,036,310  
Koppers Holdings, Inc.
    17,578       652,320  
Kraton Performance Polymers, Inc. *
    27,496       558,994  
Kronos Worldwide, Inc.
    17,479       276,343  
Landec Corp. *
    20,406       267,931  
Louisiana-Pacific Corp. *
    115,578       1,649,298  
LSB Industries, Inc. *
    16,813       673,361  
Materion Corp.
    17,128       558,887  
McEwen Mining, Inc. *
    153,737       425,851  
Mercer International, Inc. *
    29,697       298,158  
Minerals Technologies, Inc.
    27,995       1,753,047  
Molycorp, Inc. *(a)
    120,677       216,012  
Myers Industries, Inc.
    22,891       451,182  
Neenah Paper, Inc.
    13,733       750,783  
NewMarket Corp.
    9,139       3,718,568  
Olin Corp.
    64,909       1,771,367  
OM Group, Inc.
    28,373       754,722  
OMNOVA Solutions, Inc. *
    30,597       256,709  
P.H. Glatfelter Co.
    37,464       933,978  
Platform Specialty Products Corp. *
    71,433       1,950,835  
PolyOne Corp.
    78,711       3,087,045  
Quaker Chemical Corp.
    11,045       861,510  
Rentech, Inc. *
    141,161       316,201  
Resolute Forest Products, Inc. *
    76,131       1,308,692  
RTI International Metals, Inc. *
    26,719       775,118  
Schnitzer Steel Industries, Inc., Class A
    24,450       677,020  
Schweitzer-Mauduit International, Inc.
    25,080       1,074,427  
Sensient Technologies Corp.
    40,671       2,282,050  
Silgan Holdings, Inc.
    35,557       1,790,295  
Sonoco Products Co.
    83,928       3,454,476  
Steel Dynamics, Inc.
    196,860       4,575,026  
Stepan Co.
    16,473       795,481  
Stillwater Mining Co. *
    98,526       1,828,643  
SunCoke Energy, Inc. *
    56,424       1,354,740  
Taminco Corp. *
    22,613       541,581  
The Scotts Miracle-Gro Co., Class A
    36,544       2,109,685  
Tredegar Corp.
    21,221       441,609  
Tronox Ltd., Class A
    52,870       1,605,133  
United States Lime & Minerals, Inc.
    1,430       89,118  
United States Steel Corp.
    119,013       4,599,852  
US Silica Holdings, Inc.
    45,251       3,249,474  
Walter Energy, Inc. (a)
    38,443       214,896  
Wausau Paper Corp.
    40,741       371,558  
Worthington Industries, Inc.
    42,804       1,730,994  
Zep, Inc.
    16,522       262,369  
                 
              120,628,508  
 
Media 1.6%
AMC Entertainment Holdings, Inc., Class A
    15,381       364,068  
Carmike Cinemas, Inc. *
    19,792       670,355  
CBS Outdoor Americas, Inc. REIT
    98,846       3,397,337  
Central European Media Enterprises Ltd., Class A *
    36,534       90,604  
Cinemark Holdings, Inc.
    85,626       3,021,742  
Clear Channel Outdoor Holdings, Inc., Class A
    32,600       226,244  
Crown Media Holdings, Inc., Class A *
    18,863       65,077  
Cumulus Media, Inc., Class A *
    69,974       321,181  
DreamWorks Animation SKG, Inc., Class A *
    59,971       1,309,467  
Entercom Communications Corp., Class A *
    13,682       124,917  
Gray Television, Inc. *
    36,504       362,485  
Harte-Hanks, Inc.
    22,848       160,165  
Hemisphere Media Group, Inc. *
    10,399       119,485  
John Wiley & Sons, Inc., Class A
    39,193       2,349,620  
Journal Communications, Inc., Class A *
    26,198       259,884  
Live Nation Entertainment, Inc. *
    117,316       2,576,259  
Loral Space & Communications, Inc. *
    11,232       841,501  
Meredith Corp.
    30,172       1,405,412  
Morningstar, Inc.
    16,929       1,162,684  
National CineMedia, Inc.
    50,680       739,928  
New Media Investment Group, Inc.
    21,173       369,892  
Nexstar Broadcasting Group, Inc., Class A
    24,101       1,099,970  
ReachLocal, Inc. *(a)
    9,427       49,586  
Regal Entertainment Group, Class A
    65,189       1,372,228  
Rentrak Corp. *
    10,218       521,731  
Saga Communications, Inc., Class A
    4,135       157,254  
Scholastic Corp.
    22,706       795,618  
SFX Entertainment, Inc. *(a)
    17,883       126,433  
Sinclair Broadcast Group, Inc., Class A (a)
    60,149       1,747,328  
Sizmek, Inc. *
    18,251       160,609  
Starz, Class A *
    75,662       2,367,464  
The E.W. Scripps Co., Class A *
    27,976       530,425  
The McClatchy Co., Class A *
    32,997       148,816  
The New York Times Co., Class A
    108,251       1,340,147  
Time, Inc. *
    92,158       2,163,870  
World Wrestling Entertainment, Inc., Class A (a)
    22,864       332,443  
                 
              32,852,229  
 
Pharmaceuticals, Biotechnology & Life Sciences 6.6%
ACADIA Pharmaceuticals, Inc. *
    70,413       1,688,504  
Acceleron Pharma, Inc. *
    5,005       134,484  
Achillion Pharmaceuticals, Inc. *
    77,586       897,670  
Acorda Therapeutics, Inc. *
    35,115       1,144,047  
Aegerion Pharmaceuticals, Inc. *(a)
    20,995       641,397  
Affymetrix, Inc. *
    58,724       509,137  
Agios Pharmaceuticals, Inc. *(a)
    5,264       243,302  
Akebia Therapeutics, Inc. *(a)
    5,179       116,579  
Akorn, Inc. *
    59,010       2,302,570  
Alkermes plc *
    120,136       5,373,683  
 
 
 
54 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Alnylam Pharmaceuticals, Inc. *
    52,219       3,638,098  
AMAG Pharmaceuticals, Inc. *
    19,513       441,579  
Arena Pharmaceuticals, Inc. *(a)
    176,534       727,320  
ARIAD Pharmaceuticals, Inc. *(a)
    159,979       995,069  
Array BioPharma, Inc. *
    92,314       364,640  
Auspex Pharmaceuticals, Inc. *
    5,993       137,779  
Auxilium Pharmaceuticals, Inc. *(a)
    37,167       691,306  
AVANIR Pharmaceuticals, Inc. *
    142,437       885,958  
Bio-Rad Laboratories, Inc., Class A *
    16,779       2,017,843  
Bluebird Bio, Inc. *
    15,121       604,991  
Bruker Corp. *
    89,259       1,790,536  
Cambrex Corp. *
    28,173       617,552  
Cara Therapeutics, Inc. *
    4,694       47,973  
Celldex Therapeutics, Inc. *
    75,263       1,197,434  
Cepheid, Inc. *
    58,821       2,354,605  
Charles River Laboratories International, Inc. *
    40,395       2,387,344  
ChemoCentryx, Inc. *(a)
    16,570       84,673  
Chimerix, Inc. *
    25,476       650,657  
Clovis Oncology, Inc. *
    23,837       1,133,688  
Cubist Pharmaceuticals, Inc. *
    61,429       4,240,444  
Curis, Inc. *(a)
    12,327       21,572  
Dendreon Corp. *(a)
    79,975       108,766  
Depomed, Inc. *
    49,952       766,763  
Dicerna Pharmaceuticals, Inc. *
    5,405       74,481  
Dyax Corp. *
    106,367       1,086,007  
Emergent Biosolutions, Inc. *
    25,185       627,106  
Enanta Pharmaceuticals, Inc. *(a)
    2,487       104,355  
Endocyte, Inc. *(a)
    26,698       196,497  
Epizyme, Inc. *
    8,976       309,582  
Exact Sciences Corp. *(a)
    65,436       1,364,341  
Exelixis, Inc. *(a)
    146,343       605,860  
Fluidigm Corp. *
    21,990       598,568  
Foundation Medicine, Inc. *(a)
    5,232       121,749  
Genomic Health, Inc. *(a)
    15,143       450,050  
Halozyme Therapeutics, Inc. *
    84,782       805,429  
Hyperion Therapeutics, Inc. *
    5,691       147,169  
ImmunoGen, Inc. *(a)
    75,322       890,306  
Impax Laboratories, Inc. *
    53,718       1,323,612  
Infinity Pharmaceuticals, Inc. *
    38,121       430,767  
Intercept Pharmaceuticals, Inc. *
    9,960       2,885,611  
InterMune, Inc. *
    86,551       6,357,171  
Intra-Cellular Therapies, Inc. *(a)
    18,876       268,417  
Intrexon Corp. *(a)
    9,428       191,200  
Ironwood Pharmaceuticals, Inc. *
    100,735       1,303,511  
Isis Pharmaceuticals, Inc. *
    98,511       4,015,308  
Jazz Pharmaceuticals plc *
    44,330       7,222,244  
Karyopharm Therapeutics, Inc. *(a)
    8,866       319,176  
Keryx Biopharmaceuticals, Inc. *(a)
    76,729       1,395,701  
Kindred Biosciences, Inc. *(a)
    6,892       75,192  
KYTHERA Biopharmaceuticals, Inc. *
    10,686       401,900  
Lexicon Pharmaceuticals, Inc. *
    137,005       208,248  
Ligand Pharmaceuticals, Inc., Class B *
    16,707       869,432  
Luminex Corp. *
    31,894       601,202  
MacroGenics, Inc. *
    7,131       152,318  
Mallinckrodt plc *
    90,092       7,341,604  
MannKind Corp. *(a)
    183,129       1,349,661  
Merrimack Pharmaceuticals, Inc. *(a)
    76,761       535,792  
MiMedx Group, Inc. *(a)
    71,524       503,529  
Momenta Pharmaceuticals, Inc. *
    43,549       513,443  
Myriad Genetics, Inc. *(a)
    61,097       2,211,100  
Navidea Biopharmaceuticals, Inc. *(a)
    91,290       130,545  
Nektar Therapeutics *
    107,327       1,530,483  
Neurocrine Biosciences, Inc. *
    54,912       895,615  
NewLink Genetics Corp. *(a)
    14,353       396,286  
Novavax, Inc. *
    194,276       911,154  
NPS Pharmaceuticals, Inc. *
    80,084       2,416,935  
OncoMed Pharmaceuticals, Inc. *(a)
    4,320       87,653  
Ophthotech Corp. *
    8,774       341,835  
OPKO Health, Inc. *(a)
    186,937       1,663,739  
Orexigen Therapeutics, Inc. *(a)
    96,394       549,446  
Organovo Holdings, Inc. *(a)
    46,230       359,669  
Osiris Therapeutics, Inc. *(a)
    14,987       214,164  
Pacira Pharmaceuticals, Inc. *
    29,835       3,229,937  
PAREXEL International Corp. *
    46,978       2,651,438  
PDL BioPharma, Inc. (a)
    134,013       1,352,191  
Phibro Animal Health Corp., Class A
    10,564       202,195  
Portola Pharmaceuticals, Inc. *
    7,534       210,123  
Prestige Brands Holdings, Inc. *
    44,174       1,528,862  
PTC Therapeutics, Inc. *(a)
    15,086       477,623  
Puma Biotechnology, Inc. *
    16,544       4,309,877  
Raptor Pharmaceutical Corp. *(a)
    50,861       560,488  
Receptos, Inc. *
    15,998       818,298  
Relypsa, Inc. *
    5,838       147,585  
Retrophin, Inc. *
    4,694       64,214  
Revance Therapeutics, Inc. *
    5,194       121,280  
Rigel Pharmaceuticals, Inc. *
    73,894       192,124  
Sagent Pharmaceuticals, Inc. *
    18,258       507,938  
Salix Pharmaceuticals Ltd. *
    52,377       8,333,704  
Sangamo BioSciences, Inc. *
    52,952       757,214  
Sarepta Therapeutics, Inc. *(a)
    30,805       706,359  
SciClone Pharmaceuticals, Inc. *
    38,885       266,751  
Sequenom, Inc. *(a)
    99,439       368,919  
Spectrum Pharmaceuticals, Inc. *(a)
    41,788       338,901  
Sunesis Pharmaceuticals, Inc. *
    37,659       282,066  
Synageva BioPharma Corp. *
    16,350       1,179,979  
Synergy Pharmaceuticals, Inc. *(a)
    51,624       201,334  
Synta Pharmaceuticals Corp. *(a)
    55,615       222,460  
Techne Corp.
    27,652       2,641,319  
TESARO, Inc. *
    16,461       486,587  
The Medicines Co. *
    54,578       1,397,743  
TherapeuticsMD, Inc. *(a)
    78,347       434,826  
Theravance Biopharma, Inc. *(a)
    18,894       554,822  
Theravance, Inc. (a)
    66,139       1,558,235  
Threshold Pharmaceuticals, Inc. *
    37,831       157,377  
Ultragenyx Pharmaceutical, Inc. *
    17,875       953,810  
United Therapeutics Corp. *
    36,297       4,276,876  
Versartis, Inc. *(a)
    5,186       119,278  
VIVUS, Inc. *(a)
    87,288       374,466  
XOMA Corp. *
    48,427       212,110  
ZIOPHARM Oncology, Inc. *(a)
    89,032       287,573  
                 
              138,800,008  
 
Real Estate 10.3%
Acadia Realty Trust
    49,157       1,416,705  
 
 
 
See financial notes 55

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
AG Mortgage Investment Trust, Inc.
    24,865       496,554  
Agree Realty Corp.
    10,526       310,833  
Alexander & Baldwin, Inc.
    35,635       1,457,472  
Alexander’s, Inc.
    1,719       681,566  
Altisource Portfolio Solutions S.A. *(a)
    14,167       1,415,708  
Altisource Residential Corp.
    46,809       1,148,693  
American Assets Trust, Inc.
    30,654       1,074,423  
American Capital Mortgage Investment Corp.
    44,886       923,754  
American Homes 4 Rent, Class A
    104,874       1,875,147  
American Realty Capital Properties, Inc.
    741,721       9,761,048  
American Residential Properties, Inc. *
    9,810       186,194  
AmREIT, Inc., Class B
    15,462       360,265  
Anworth Mortgage Asset Corp.
    102,351       531,202  
Apollo Commercial Real Estate Finance, Inc.
    37,371       628,580  
Apollo Residential Mortgage, Inc.
    25,530       430,181  
ARMOUR Residential REIT, Inc.
    293,712       1,242,402  
Ashford Hospitality Prime, Inc.
    18,465       298,948  
Ashford Hospitality Trust, Inc.
    61,345       710,989  
Associated Estates Realty Corp.
    49,098       908,313  
Aviv REIT, Inc.
    17,179       502,658  
BioMed Realty Trust, Inc.
    157,894       3,544,720  
Blackstone Mortgage Trust, Inc., Class A
    40,095       1,164,760  
Brandywine Realty Trust
    144,016       2,307,136  
Campus Crest Communities, Inc.
    54,454       447,612  
Capstead Mortgage Corp.
    82,883       1,095,713  
CareTrust REIT, Inc. *
    15,984       279,241  
CBL & Associates Properties, Inc.
    140,526       2,669,994  
Cedar Realty Trust, Inc.
    45,953       297,316  
Chambers Street Properties
    191,939       1,495,205  
Chesapeake Lodging Trust
    42,620       1,313,122  
Chimera Investment Corp.
    838,714       2,776,143  
Colony Financial, Inc.
    88,215       1,977,780  
Columbia Property Trust, Inc.
    102,009       2,618,571  
CoreSite Realty Corp.
    19,514       684,356  
Corporate Office Properties Trust
    72,051       2,044,807  
Cousins Properties, Inc.
    165,552       2,100,855  
CubeSmart
    109,705       2,040,513  
CyrusOne, Inc.
    29,946       779,794  
CYS Investments, Inc.
    128,777       1,214,367  
DCT Industrial Trust, Inc.
    273,849       2,177,100  
DiamondRock Hospitality Co.
    164,534       2,191,593  
Douglas Emmett, Inc.
    107,534       3,072,246  
DuPont Fabros Technology, Inc.
    52,832       1,487,749  
Dynex Capital, Inc.
    31,959       279,641  
EastGroup Properties, Inc.
    26,569       1,722,734  
Education Realty Trust, Inc.
    112,035       1,220,061  
Empire State Realty Trust, Inc., Class A
    61,671       1,013,871  
EPR Properties
    44,049       2,506,829  
Equity Commonwealth
    98,816       2,656,174  
Equity Lifestyle Properties, Inc.
    65,105       2,974,647  
Equity One, Inc.
    55,169       1,301,988  
Excel Trust, Inc.
    45,078       583,309  
FelCor Lodging Trust, Inc.
    93,911       971,040  
First Industrial Realty Trust, Inc.
    86,221       1,569,222  
First Potomac Realty Trust
    48,259       638,949  
Forest City Enterprises, Inc., Class A *
    129,446       2,692,477  
Forestar Group, Inc. *
    29,885       597,700  
Franklin Street Properties Corp.
    74,551       905,795  
Gaming & Leisure Properties, Inc.
    74,040       2,465,532  
Getty Realty Corp.
    22,066       413,958  
Glimcher Realty Trust
    116,922       1,313,034  
Government Properties Income Trust
    56,120       1,348,002  
Hatteras Financial Corp.
    81,898       1,629,770  
Healthcare Realty Trust, Inc.
    78,716       1,964,751  
Healthcare Trust of America, Inc., Class A
    147,219       1,832,877  
Hersha Hospitality Trust
    160,093       1,087,032  
Highwoods Properties, Inc.
    74,124       3,153,976  
Home Properties, Inc.
    48,025       3,084,166  
Hospitality Properties Trust
    123,153       3,624,393  
Hudson Pacific Properties, Inc.
    46,464       1,247,558  
Inland Real Estate Corp.
    64,318       669,550  
Invesco Mortgage Capital, Inc.
    101,233       1,783,725  
Investors Real Estate Trust
    89,855       766,463  
iStar Financial, Inc. *
    63,767       948,853  
Kennedy-Wilson Holdings, Inc.
    57,506       1,502,057  
Kite Realty Group Trust
    67,020       1,723,754  
LaSalle Hotel Properties
    84,721       3,096,553  
Lexington Realty Trust
    169,222       1,841,135  
LTC Properties, Inc.
    27,973       1,145,494  
Mack-Cali Realty Corp.
    75,751       1,601,376  
Medical Properties Trust, Inc.
    144,625       2,037,766  
MFA Financial, Inc.
    301,205       2,542,170  
Mid-America Apartment Communities, Inc.
    61,611       4,455,708  
Monmouth Real Estate Investment Corp., Class A
    35,620       385,408  
National Health Investors, Inc.
    24,312       1,568,367  
New Residential Investment Corp.
    233,747       1,465,594  
New York Mortgage Trust, Inc.
    74,566       595,037  
New York REIT, Inc. (a)
    133,950       1,381,025  
Newcastle Investment Corp.
    93,877       1,272,038  
NorthStar Realty Finance Corp.
    156,728       2,901,035  
Omega Healthcare Investors, Inc.
    104,669       3,942,881  
One Liberty Properties, Inc.
    10,218       221,424  
Parkway Properties, Inc.
    58,258       1,208,854  
Pebblebrook Hotel Trust
    53,088       2,056,629  
Pennsylvania Real Estate Investment Trust
    57,177       1,152,688  
PennyMac Mortgage Investment Trust
    61,606       1,371,350  
Piedmont Office Realty Trust, Inc., Class A
    125,326       2,442,604  
Post Properties, Inc.
    45,504       2,503,630  
Potlatch Corp.
    34,833       1,486,672  
PS Business Parks, Inc.
    16,330       1,331,548  
QTS Realty Trust, Inc., Class A
    9,961       300,324  
RAIT Financial Trust
    56,962       460,823  
Ramco-Gershenson Properties Trust
    62,869       1,066,258  
Redwood Trust, Inc.
    67,850       1,314,255  
Resource Capital Corp.
    107,786       580,967  
Retail Opportunity Investments Corp.
    70,634       1,118,843  
 
 
 
56 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Retail Properties of America, Inc., Class A
    157,344       2,489,182  
Rexford Industrial Realty, Inc.
    10,866       160,165  
RLJ Lodging Trust
    106,047       3,161,261  
Rouse Properties, Inc. (a)
    29,137       509,315  
Ryman Hospitality Properties, Inc. (a)
    41,220       2,050,695  
Sabra Health Care REIT, Inc.
    39,313       1,119,634  
Saul Centers, Inc.
    10,417       519,287  
Select Income REIT
    28,052       782,651  
Silver Bay Realty Trust Corp.
    32,202       536,807  
Sovran Self Storage, Inc.
    27,546       2,128,479  
Spirit Realty Capital, Inc.
    308,230       3,640,196  
STAG Industrial, Inc.
    42,242       989,730  
Starwood Property Trust, Inc.
    181,311       4,324,267  
Starwood Waypoint Residential Trust *
    33,366       923,571  
Strategic Hotels & Resorts, Inc. *
    198,916       2,363,122  
Summit Hotel Properties, Inc.
    69,965       766,117  
Sun Communities, Inc.
    31,163       1,671,272  
Sunstone Hotel Investors, Inc.
    165,980       2,418,329  
Tanger Factory Outlet Centers, Inc.
    78,554       2,742,320  
Tejon Ranch Co. *
    11,916       335,078  
The Geo Group, Inc.
    60,472       2,262,862  
The Howard Hughes Corp. *
    25,716       4,072,643  
The St. Joe Co. *(a)
    75,905       1,644,102  
Two Harbors Investment Corp.
    304,826       3,267,735  
Universal Health Realty Income Trust
    11,401       503,582  
Urstadt Biddle Properties, Inc., Class A
    23,178       494,155  
Washington Prime Group, Inc.
    127,132       2,481,617  
Washington REIT
    54,956       1,526,678  
Western Asset Mortgage Capital Corp.
    27,192       413,318  
Whitestone REIT
    18,836       286,307  
                 
              217,769,149  
 
Retailing 4.0%
1-800-Flowers.com, Inc., Class A *
    15,923       82,003  
Aaron’s, Inc.
    61,042       1,563,896  
Aeropostale, Inc. *(a)
    37,855       158,612  
America’s Car-Mart, Inc. *
    5,620       238,063  
American Eagle Outfitters, Inc.
    137,718       1,939,069  
ANN, Inc. *
    39,565       1,639,574  
Asbury Automotive Group, Inc. *
    24,245       1,689,392  
Ascena Retail Group, Inc. *
    109,975       1,912,465  
Barnes & Noble, Inc. *
    31,344       747,868  
bebe stores, Inc.
    28,387       93,677  
Big 5 Sporting Goods Corp.
    13,693       139,669  
Big Lots, Inc.
    46,083       2,135,947  
Blue Nile, Inc. *
    11,081       314,700  
Brown Shoe Co., Inc.
    34,256       1,022,199  
Burlington Stores, Inc. *
    23,498       838,174  
Cabela’s, Inc. *
    39,055       2,383,136  
Chico’s FAS, Inc.
    126,019       1,991,100  
Conn’s, Inc. *(a)
    21,303       955,013  
Core-Mark Holding Co., Inc.
    18,423       887,252  
Coupons.com, Inc. *(a)
    8,130       124,226  
CST Brands, Inc.
    61,772       2,152,136  
Destination Maternity Corp.
    11,045       213,500  
DSW, Inc., Class A
    60,764       1,880,038  
Express, Inc. *
    71,608       1,241,683  
Five Below, Inc. *
    40,630       1,647,953  
Francesca’s Holdings Corp. *
    31,045       434,630  
Fred’s, Inc., Class A
    28,200       401,286  
FTD Cos., Inc. *
    15,600       516,672  
Genesco, Inc. *
    19,766       1,567,444  
GNC Holdings, Inc., Class A
    79,378       3,012,395  
Gordmans Stores, Inc.
    5,184       18,351  
Group 1 Automotive, Inc.
    16,969       1,360,235  
Guess?, Inc.
    51,285       1,202,120  
Haverty Furniture Cos., Inc.
    18,044       419,884  
hhgregg, Inc. *
    6,721       48,055  
Hibbett Sports, Inc. *
    21,253       965,524  
HomeAway, Inc. *
    53,180       1,765,576  
HSN, Inc.
    27,025       1,637,445  
J.C. Penney Co., Inc. *(a)
    253,649       2,739,409  
Lands’ End, Inc. *
    9,143       315,251  
Liberty TripAdvisor Holdings, Inc., Class A *
    60,385       2,159,971  
Liberty Ventures, Series A *
    60,385       2,300,065  
Lithia Motors, Inc., Class A
    18,859       1,648,654  
Lumber Liquidators Holdings, Inc. *
    21,205       1,213,350  
MarineMax, Inc. *
    19,798       341,713  
Mattress Firm Holding Corp. *(a)
    12,809       733,828  
Monro Muffler Brake, Inc.
    24,611       1,273,619  
Murphy USA, Inc. *
    36,234       1,973,666  
New York & Co., Inc. *
    25,877       87,982  
Nutrisystem, Inc.
    25,199       411,248  
Office Depot, Inc. *
    407,230       2,085,018  
Orbitz Worldwide, Inc. *
    36,739       301,260  
Outerwall, Inc. *(a)
    16,991       1,001,280  
Overstock.com, Inc. *
    12,681       224,073  
Penske Automotive Group, Inc.
    34,740       1,666,478  
PetMed Express, Inc. (a)
    16,017       225,519  
Pier 1 Imports, Inc.
    73,061       1,151,441  
Pool Corp.
    36,924       2,092,114  
RadioShack Corp. *(a)
    60,746       97,194  
Rent-A-Center, Inc.
    42,473       1,183,298  
Restoration Hardware Holdings, Inc. *(a)
    23,451       1,966,835  
RetailMeNot, Inc. *
    8,140       151,811  
Sears Hometown & Outlet Stores, Inc. *
    10,209       195,809  
Select Comfort Corp. *
    48,429       1,083,357  
Shoe Carnival, Inc.
    12,838       276,402  
Shutterfly, Inc. *
    32,585       1,662,161  
Sonic Automotive, Inc., Class A
    29,170       720,499  
Sportsman’s Warehouse Holdings, Inc. *(a)
    10,224       61,446  
Stage Stores, Inc.
    27,346       477,735  
Stein Mart, Inc.
    22,911       285,242  
Systemax, Inc. *
    7,538       109,904  
The Bon-Ton Stores, Inc. (a)
    9,391       99,169  
The Buckle, Inc. (a)
    22,721       1,117,419  
The Cato Corp., Class A
    20,954       726,475  
The Children’s Place, Inc.
    19,510       1,048,858  
The Container Store Group, Inc. *
    9,537       201,612  
The Finish Line, Inc., Class A
    39,681       1,175,748  
The Men’s Wearhouse, Inc.
    37,552       2,028,934  
 
 
 
See financial notes 57

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
The Pep Boys-Manny, Moe & Jack *
    44,957       499,922  
The Wet Seal, Inc., Class A *(a)
    67,789       69,145  
Tile Shop Holdings, Inc. *(a)
    16,103       185,990  
Tilly’s, Inc., Class A *
    7,032       57,311  
Tuesday Morning Corp. *
    31,825       559,483  
Vitamin Shoppe, Inc. *
    26,519       1,039,280  
VOXX International Corp. *
    4,354       43,105  
West Marine, Inc. *
    10,418       114,285  
Weyco Group, Inc.
    4,168       112,411  
Winmark Corp.
    1,654       119,419  
zulily, Inc., Class A *(a)
    8,386       275,061  
Zumiez, Inc. *
    19,153       619,599  
                 
              83,651,820  
 
Semiconductors & Semiconductor Equipment 3.5%
Advanced Energy Industries, Inc. *
    32,435       624,374  
Advanced Micro Devices, Inc. *(a)
    539,896       2,251,366  
Amkor Technology, Inc. *
    101,506       1,055,662  
Applied Micro Circuits Corp. *(a)
    63,067       534,177  
Atmel Corp. *
    346,226       3,067,562  
Brooks Automation, Inc.
    56,690       642,865  
Cabot Microelectronics Corp. *
    20,136       863,834  
Cavium, Inc. *
    43,120       2,422,482  
CEVA, Inc. *
    18,761       284,417  
Cirrus Logic, Inc. *
    50,912       1,231,052  
Cohu, Inc.
    18,274       224,770  
Cypress Semiconductor Corp. *
    120,467       1,331,160  
Diodes, Inc. *
    32,435       825,471  
Entegris, Inc. *
    114,350       1,388,209  
Entropic Communications, Inc. *
    78,957       207,657  
Exar Corp. *
    41,993       418,670  
Fairchild Semiconductor International, Inc. *
    103,055       1,808,615  
First Solar, Inc. *
    58,460       4,073,493  
FormFactor, Inc. *
    46,905       330,211  
GT Advanced Technologies, Inc. *(a)
    106,813       1,902,340  
Inphi Corp. *
    17,152       258,138  
Integrated Device Technology, Inc. *
    110,859       1,823,631  
Integrated Silicon Solution, Inc.
    25,109       372,366  
Intermolecular, Inc. *(a)
    14,444       32,066  
International Rectifier Corp. *
    58,727       2,313,844  
Intersil Corp., Class A
    105,736       1,590,798  
IXYS Corp.
    20,552       246,418  
Kulicke & Soffa Industries, Inc. *
    65,354       960,050  
Lattice Semiconductor Corp. *
    98,550       740,110  
M/A-COM Technology Solutions Holdings, Inc. *
    12,023       284,705  
Micrel, Inc.
    39,218       491,402  
Microsemi Corp. *
    80,478       2,143,934  
MKS Instruments, Inc.
    43,403       1,473,098  
Monolithic Power Systems, Inc.
    29,827       1,425,134  
Nanometrics, Inc. *
    18,914       316,242  
OmniVision Technologies, Inc. *
    46,128       1,250,530  
ON Semiconductor Corp. *
    362,696       3,539,913  
PDF Solutions, Inc. *
    22,090       441,137  
Peregrine Semiconductor Corp. *
    24,447       304,365  
Photronics, Inc. *
    53,667       473,880  
PMC-Sierra, Inc. *
    160,297       1,182,992  
Power Integrations, Inc.
    25,692       1,535,868  
Rambus, Inc. *
    95,158       1,180,911  
RF Micro Devices, Inc. *
    223,627       2,788,629  
Rudolph Technologies, Inc. *
    25,319       244,835  
Semtech Corp. *
    55,016       1,433,442  
Silicon Image, Inc. *
    62,569       316,599  
Silicon Laboratories, Inc. *
    32,426       1,469,871  
Spansion, Inc., Class A *
    41,271       920,343  
SunEdison, Inc. *
    202,997       4,472,024  
SunPower Corp. *
    34,488       1,318,131  
Synaptics, Inc. *
    28,898       2,372,526  
Teradyne, Inc.
    158,948       3,272,739  
Tessera Technologies, Inc.
    41,893       1,238,776  
TriQuint Semiconductor, Inc. *
    135,231       2,794,549  
Ultratech, Inc. *
    24,865       643,009  
Veeco Instruments, Inc. *
    32,558       1,151,576  
                 
              74,306,968  
 
Software & Services 7.6%
A10 Networks, Inc. *
    10,410       121,381  
ACI Worldwide, Inc. *
    92,035       1,791,921  
Actuate Corp. *
    26,626       118,219  
Acxiom Corp. *
    62,959       1,167,575  
Advent Software, Inc.
    33,158       1,071,335  
Aerohive Networks, Inc. *
    6,404       51,040  
Angie’s List, Inc. *
    35,216       270,107  
AOL, Inc. *
    66,231       2,862,504  
Aspen Technology, Inc. *
    75,727       3,111,622  
Bankrate, Inc. *
    46,559       653,688  
Barracuda Networks, Inc. *(a)
    2,504       62,224  
Bazaarvoice, Inc. *(a)
    35,179       256,807  
Benefitfocus, Inc. *(a)
    3,272       108,041  
Blackbaud, Inc.
    37,776       1,469,109  
Blackhawk Network Holdings, Inc. *(a)
    8,828       243,476  
Blackhawk Network Holdings, Inc., Class B *
    31,197       856,982  
Blucora, Inc. *
    35,560       554,025  
Booz Allen Hamilton Holding Corp.
    59,118       1,311,237  
Borderfree, Inc. *(a)
    4,151       58,156  
Bottomline Technologies (de), Inc. *
    32,505       915,341  
Broadridge Financial Solutions, Inc.
    99,242       4,221,755  
BroadSoft, Inc. *
    24,388       581,898  
CACI International, Inc., Class A *
    19,140       1,380,377  
Carbonite, Inc. *
    9,631       102,666  
Cardtronics, Inc. *
    36,643       1,300,826  
Care.com, Inc. *(a)
    4,595       42,136  
Cass Information Systems, Inc.
    7,770       364,568  
ChannelAdvisor Corp. *
    8,604       139,385  
Ciber, Inc. *
    51,252       195,783  
CommVault Systems, Inc. *
    36,085       1,989,727  
Computer Task Group, Inc.
    12,699       162,293  
Compuware Corp.
    179,391       1,677,306  
comScore, Inc. *
    26,507       1,015,483  
Comverse, Inc. *
    19,609       484,146  
Constant Contact, Inc. *
    27,641       861,570  
Convergys Corp.
    85,528       1,642,138  
Conversant, Inc. *
    54,043       1,488,344  
 
 
 
58 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
CoreLogic, Inc. *
    77,421       2,188,692  
Cornerstone OnDemand, Inc. *
    37,153       1,391,008  
CoStar Group, Inc. *
    26,268       3,802,293  
Covisint Corp. *(a)
    4,340       20,875  
CSG Systems International, Inc.
    28,800       798,336  
Cvent, Inc. *(a)
    9,032       226,884  
Cyan, Inc. *(a)
    7,232       27,265  
Dealertrack Technologies, Inc. *
    36,543       1,635,665  
Demand Media, Inc. *
    5,611       50,443  
Demandware, Inc. *
    23,391       1,243,232  
Dice Holdings, Inc. *
    27,579       234,146  
Digital River, Inc. *
    25,093       383,170  
DST Systems, Inc.
    29,263       2,715,899  
E2open, Inc. *
    12,468       188,267  
EarthLink Holdings Corp.
    85,207       351,905  
Ebix, Inc. (a)
    27,937       431,347  
Ellie Mae, Inc. *
    20,689       740,666  
EnerNOC, Inc. *
    21,018       412,794  
Envestnet, Inc. *
    25,184       1,158,716  
EPAM Systems, Inc. *
    20,606       775,816  
Epiq Systems, Inc.
    27,796       404,432  
ePlus, Inc. *
    3,308       193,419  
Euronet Worldwide, Inc. *
    38,980       2,077,634  
EVERTEC, Inc.
    54,310       1,250,759  
Everyday Health, Inc. *
    5,956       86,719  
ExlService Holdings, Inc. *
    26,552       724,073  
Fair Isaac Corp.
    29,203       1,698,739  
Five9, Inc. *
    8,761       51,427  
Forrester Research, Inc.
    9,138       355,103  
Fortinet, Inc. *
    113,026       2,917,201  
Gigamon, Inc. *(a)
    10,564       114,936  
Global Cash Access Holdings, Inc. *
    44,941       350,989  
Global Eagle Entertainment, Inc. *
    42,321       534,091  
Gogo, Inc. *(a)
    9,108       154,198  
GrubHub, Inc. *(a)
    5,820       223,721  
Guidewire Software, Inc. *
    56,852       2,589,609  
Heartland Payment Systems, Inc.
    30,906       1,476,380  
Higher One Holdings, Inc. *
    25,900       100,492  
iGATE Corp. *
    23,847       892,355  
Imperva, Inc. *
    17,451       507,999  
Infoblox, Inc. *
    38,876       522,882  
Interactive Intelligence Group, Inc. *
    12,427       532,000  
Internap Network Services Corp. *
    42,043       287,574  
Intralinks Holdings, Inc. *
    31,181       245,083  
j2 Global, Inc.
    38,092       2,036,017  
Jive Software, Inc. *
    19,909       138,965  
Liquidity Services, Inc. *
    22,917       349,255  
LivePerson, Inc. *
    41,366       534,035  
LogMeIn, Inc. *
    18,234       770,934  
Manhattan Associates, Inc. *
    64,385       1,859,439  
ManTech International Corp., Class A
    21,263       616,202  
Marin Software, Inc. *
    4,694       39,195  
Marketo, Inc. *
    14,379       421,017  
MAXIMUS, Inc.
    55,678       2,293,934  
Mentor Graphics Corp.
    78,251       1,706,654  
MicroStrategy, Inc., Class A *
    7,241       1,005,992  
Millennial Media, Inc. *(a)
    4,405       10,484  
Model N, Inc. *
    4,145       38,300  
MoneyGram International, Inc. *
    25,029       351,908  
Monotype Imaging Holdings, Inc.
    34,256       1,006,784  
Monster Worldwide, Inc. *
    60,096       346,754  
Move, Inc. *
    33,779       537,086  
NetScout Systems, Inc. *
    30,389       1,400,021  
NeuStar, Inc., Class A *
    51,758       1,526,343  
NIC, Inc.
    51,811       970,938  
OPOWER, Inc. *(a)
    5,264       82,329  
Pandora Media, Inc. *
    142,117       3,842,844  
Paycom Software, Inc. *
    5,455       97,754  
Pegasystems, Inc.
    28,042       622,532  
Perficient, Inc. *
    29,685       511,176  
Progress Software Corp. *
    41,519       961,580  
Proofpoint, Inc. *
    18,862       752,217  
PROS Holdings, Inc. *
    21,263       544,120  
PTC, Inc. *
    97,558       3,774,519  
Q2 Holdings, Inc. *
    6,746       99,571  
Qlik Technologies, Inc. *
    75,882       2,142,149  
Qualys, Inc. *
    12,896       313,373  
QuinStreet, Inc. *
    3,529       16,904  
Rally Software Development Corp. *
    10,849       125,197  
RealNetworks, Inc. *
    5,084       39,147  
RealPage, Inc. *
    43,030       693,644  
Rightside Group Ltd. *
    5,611       67,276  
Rocket Fuel, Inc. *(a)
    7,797       127,013  
Rosetta Stone, Inc. *
    12,027       105,236  
Rovi Corp. *
    78,155       1,807,725  
Sapient Corp. *
    95,375       1,383,891  
Science Applications International Corp.
    33,403       1,540,546  
SciQuest, Inc. *
    18,765       299,677  
Seachange International, Inc. *
    6,637       50,375  
ServiceSource International, Inc. *(a)
    26,618       101,148  
Shutterstock, Inc. *
    8,283       586,436  
Silver Spring Networks, Inc. *
    4,185       43,482  
SolarWinds, Inc. *
    54,132       2,316,308  
Splunk, Inc. *
    74,642       4,026,936  
SPS Commerce, Inc. *
    12,611       705,459  
SS&C Technologies Holdings, Inc. *
    51,367       2,324,870  
Stamps.com, Inc. *
    10,402       350,131  
Sykes Enterprises, Inc. *
    33,329       697,909  
Synchronoss Technologies, Inc. *
    27,586       1,218,474  
Syntel, Inc. *
    13,376       1,195,413  
Tableau Software, Inc., Class A *
    28,846       1,889,125  
Take-Two Interactive Software, Inc. *
    76,166       1,790,663  
Tangoe, Inc. *
    28,615       398,321  
TeleTech Holdings, Inc. *
    17,888       480,293  
Textura Corp. *(a)
    15,316       441,407  
The Rubicon Project, Inc. *
    5,915       57,612  
The Ultimate Software Group, Inc. *
    23,250       3,417,517  
TiVo, Inc. *
    94,704       1,334,379  
Travelzoo, Inc. *
    7,459       127,176  
Tremor Video, Inc. *(a)
    6,016       17,988  
TrueCar, Inc. *(a)
    6,450       133,321  
Trulia, Inc. *(a)
    27,112       1,670,913  
Tyler Technologies, Inc. *
    24,238       2,158,636  
Unisys Corp. *
    39,168       916,923  
United Online, Inc.
    11,115       141,939  
 
 
 
See financial notes 59

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Varonis Systems, Inc. *(a)
    4,295       102,221  
VASCO Data Security International, Inc. *
    25,046       369,929  
VeriFone Systems, Inc. *
    91,642       3,200,139  
Verint Systems, Inc. *
    48,528       2,432,709  
VirnetX Holding Corp. *(a)
    36,110       532,622  
Virtusa Corp. *
    21,761       740,962  
Vringo, Inc. *
    39,648       40,044  
Web.com Group, Inc. *
    37,650       713,467  
WebMD Health Corp. *
    30,270       1,463,554  
WEX, Inc. *
    31,868       3,621,798  
XO Group, Inc. *
    21,652       253,545  
Xoom Corp. *
    11,805       269,862  
Yelp, Inc. *
    48,128       3,966,710  
Zendesk, Inc. *(a)
    9,275       252,187  
Zillow, Inc., Class A *
    19,578       2,808,660  
Zynga, Inc., Class A *
    547,628       1,585,383  
                 
              160,632,048  
 
Technology Hardware & Equipment 5.0%
ADTRAN, Inc.
    45,633       1,053,210  
Aeroflex Holding Corp. *
    11,613       122,633  
Anixter International, Inc.
    21,915       1,955,475  
ARRIS Group, Inc. *
    99,060       3,032,227  
Aruba Networks, Inc. *
    88,092       1,880,764  
AVX Corp.
    40,159       553,391  
Badger Meter, Inc.
    11,316       589,337  
Belden, Inc.
    36,366       2,657,264  
Benchmark Electronics, Inc. *
    43,194       1,063,868  
Black Box Corp.
    14,433       341,340  
Brocade Communications Systems, Inc.
    358,141       3,778,388  
CalAmp Corp. *
    29,000       559,120  
Calix, Inc. *
    16,605       174,353  
CDW Corp.
    70,222       2,320,135  
Checkpoint Systems, Inc. *
    34,519       478,088  
Ciena Corp. *
    89,092       1,843,313  
Cognex Corp. *
    67,842       2,848,007  
Coherent, Inc. *
    21,313       1,374,049  
CommScope Holding Co., Inc. *
    66,405       1,710,593  
Comtech Telecommunications Corp.
    14,775       562,041  
Control4 Corp. *(a)
    3,476       51,653  
Cray, Inc. *
    33,429       943,032  
CTS Corp.
    30,618       542,857  
Daktronics, Inc.
    24,188       318,314  
Diebold, Inc.
    52,364       1,988,261  
Dolby Laboratories, Inc., Class A *
    39,804       1,854,070  
DTS, Inc. *
    16,468       393,421  
EchoStar Corp., Class A *
    34,933       1,761,671  
Electro Rent Corp.
    15,247       230,687  
Electro Scientific Industries, Inc.
    21,095       156,525  
Electronics For Imaging, Inc. *
    38,235       1,683,869  
Emulex Corp. *
    50,114       274,625  
Extreme Networks, Inc. *
    61,350       326,996  
Fabrinet *
    21,399       346,450  
FARO Technologies, Inc. *
    15,180       880,592  
FEI Co.
    35,079       2,948,039  
Finisar Corp. *
    81,064       1,646,410  
GSI Group, Inc. *
    21,445       274,925  
Harmonic, Inc. *
    72,351       475,346  
II-VI, Inc. *
    47,344       660,922  
Infinera Corp. *
    92,067       974,069  
Ingram Micro, Inc., Class A *
    127,646       3,680,034  
Insight Enterprises, Inc. *
    34,624       908,534  
InterDigital, Inc.
    32,497       1,441,892  
InvenSense, Inc. *(a)
    44,630       1,153,686  
IPG Photonics Corp. *
    29,777       2,045,084  
Itron, Inc. *
    34,006       1,435,733  
Ixia *
    47,094       453,044  
JDS Uniphase Corp. *
    192,233       2,220,291  
Knowles Corp. *
    69,910       2,301,437  
Lexmark International, Inc., Class A
    51,208       2,589,076  
Littelfuse, Inc.
    17,911       1,646,200  
Maxwell Technologies, Inc. *
    25,234       259,153  
Measurement Specialties, Inc. *
    13,174       1,130,593  
Methode Electronics, Inc.
    29,188       984,219  
MTS Systems Corp.
    12,377       879,757  
Multi-Fineline Electronix, Inc. *
    6,799       68,874  
NETGEAR, Inc. *
    30,533       1,014,306  
Newport Corp. *
    32,479       612,879  
Nimble Storage, Inc. *(a)
    4,994       135,038  
Oplink Communications, Inc.
    14,839       286,689  
OSI Systems, Inc. *
    16,501       1,151,110  
Palo Alto Networks, Inc. *
    38,700       3,289,113  
Park Electrochemical Corp.
    17,383       489,158  
PC Connection, Inc.
    15,765       357,550  
Plantronics, Inc.
    34,992       1,670,168  
Plexus Corp. *
    29,000       1,194,510  
Polycom, Inc. *
    111,940       1,483,205  
Procera Networks, Inc. *
    7,442       76,578  
QLogic Corp. *
    69,054       624,939  
Quantum Corp. *
    120,287       150,359  
RealD, Inc. *
    37,341       347,645  
Riverbed Technology, Inc. *
    130,884       2,465,855  
Rofin-Sinar Technologies, Inc. *
    25,692       615,580  
Rogers Corp. *
    15,269       918,888  
Ruckus Wireless, Inc. *
    44,791       623,043  
Sanmina Corp. *
    67,697       1,589,526  
ScanSource, Inc. *
    25,111       968,280  
ShoreTel, Inc. *
    35,268       236,296  
Silicon Graphics International Corp. *
    29,385       287,973  
Sonus Networks, Inc. *
    177,500       669,175  
Super Micro Computer, Inc. *
    25,916       634,683  
SYNNEX Corp. *
    21,912       1,528,143  
Tech Data Corp. *
    31,931       2,155,343  
TTM Technologies, Inc. *
    46,385       354,845  
Ubiquiti Networks, Inc. *(a)
    13,476       611,271  
Universal Display Corp. *
    35,083       1,218,783  
ViaSat, Inc. *
    35,140       2,000,872  
Viasystems Group, Inc. *
    4,172       44,432  
Vishay Intertechnology, Inc.
    114,057       1,824,912  
Zebra Technologies Corp., Class A *
    41,516       3,239,494  
                 
              105,698,578  
 
Telecommunication Services 0.5%
8x8, Inc. *
    61,602       478,648  
Atlantic Tele-Network, Inc.
    8,564       502,193  
Boingo Wireless, Inc. *
    10,600       73,776  
 
 
 
60 See financial notes

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Cincinnati Bell, Inc. *
    174,049       638,760  
Cogent Communications Holdings, Inc.
    35,961       1,246,408  
Consolidated Communications Holdings, Inc.
    29,598       721,599  
FairPoint Communications, Inc. *
    17,690       285,870  
General Communication, Inc., Class A *
    23,988       269,625  
Globalstar, Inc. *
    202,082       804,286  
IDT Corp., Class B
    15,621       245,406  
inContact, Inc. *
    47,094       431,381  
Intelsat S.A. *
    17,156       300,916  
Iridium Communications, Inc. *(a)
    64,425       605,595  
NTELOS Holdings Corp. (a)
    11,426       150,709  
Premiere Global Services, Inc. *
    36,387       479,217  
RingCentral, Inc., Class A *
    6,364       85,469  
Shenandoah Telecommunications Co.
    20,092       554,941  
Spok Holdings, Inc.
    16,012       236,978  
Telephone & Data Systems, Inc.
    81,141       2,137,254  
United States Cellular Corp. *
    11,945       450,565  
Vonage Holdings Corp. *
    155,489       536,437  
                 
              11,236,033  
 
Transportation 3.5%
Air Transport Services Group, Inc. *
    29,721       242,821  
Alaska Air Group, Inc.
    113,036       5,238,088  
Allegiant Travel Co.
    11,415       1,402,447  
AMERCO
    5,011       1,392,106  
American Airlines Group, Inc.
    592,339       23,047,910  
ArcBest Corp.
    21,458       770,342  
Atlas Air Worldwide Holdings, Inc. *
    19,493       652,041  
Avis Budget Group, Inc. *
    86,684       5,852,037  
Celadon Group, Inc.
    18,059       378,155  
Con-way, Inc.
    46,706       2,393,683  
Echo Global Logistics, Inc. *
    12,753       331,068  
Forward Air Corp.
    25,692       1,189,283  
Hawaiian Holdings, Inc. *
    44,526       694,606  
Heartland Express, Inc.
    40,580       951,601  
Hub Group, Inc., Class A *
    28,613       1,244,379  
JetBlue Airways Corp. *
    187,836       2,297,234  
Knight Transportation, Inc.
    48,869       1,238,829  
Landstar System, Inc.
    38,065       2,583,281  
Marten Transport Ltd.
    19,339       382,912  
Matson, Inc.
    37,564       1,013,852  
Old Dominion Freight Line, Inc. *
    57,400       3,826,858  
Park-Ohio Holdings Corp.
    7,443       431,992  
Patriot Transportation Holding, Inc. *
    4,819       167,171  
Republic Airways Holdings, Inc. *
    42,602       432,410  
Roadrunner Transportation Systems, Inc. *
    21,466       540,514  
Ryder System, Inc.
    43,734       3,950,930  
Saia, Inc. *
    21,758       1,032,852  
SkyWest, Inc.
    40,335       361,805  
Spirit Airlines, Inc. *
    59,824       4,211,011  
Swift Transportation Co. *
    92,311       1,955,147  
Universal Truckload Services, Inc.
    2,642       65,759  
UTi Worldwide, Inc. *
    72,875       668,993  
Werner Enterprises, Inc.
    38,968       970,303  
Wesco Aircraft Holdings, Inc. *
    41,655       763,953  
XPO Logistics, Inc. *
    42,247       1,308,390  
                 
              73,984,763  
 
Utilities 2.7%
ALLETE, Inc.
    31,381       1,527,313  
American States Water Co.
    30,722       992,321  
Atmos Energy Corp.
    82,392       4,165,740  
Avista Corp.
    48,410       1,571,389  
Black Hills Corp.
    37,247       2,001,281  
California Water Service Group
    36,658       892,989  
Chesapeake Utilities Corp.
    7,781       536,656  
Cleco Corp.
    49,016       2,765,483  
Connecticut Water Service, Inc.
    8,811       290,322  
Dynegy, Inc. *
    80,813       2,640,969  
El Paso Electric Co.
    32,936       1,295,702  
Great Plains Energy, Inc.
    126,438       3,245,663  
Hawaiian Electric Industries, Inc. (a)
    81,430       2,067,508  
IDACORP, Inc.
    41,367       2,346,336  
MGE Energy, Inc.
    28,568       1,149,291  
Middlesex Water Co.
    12,964       266,151  
New Jersey Resources Corp.
    35,710       1,865,133  
Northwest Natural Gas Co.
    23,661       1,075,629  
NorthWestern Corp.
    33,229       1,604,296  
NRG Yield, Inc., Class A
    26,700       1,452,213  
ONE Gas, Inc.
    44,243       1,656,015  
Ormat Technologies, Inc.
    14,208       391,146  
Otter Tail Corp.
    28,339       807,378  
Pattern Energy Group, Inc.
    30,928       996,964  
Piedmont Natural Gas Co., Inc.
    62,845       2,350,403  
PNM Resources, Inc.
    64,006       1,677,597  
Portland General Electric Co.
    64,300       2,216,421  
SJW Corp.
    11,683       319,413  
South Jersey Industries, Inc.
    28,223       1,635,523  
Southwest Gas Corp.
    37,962       1,981,996  
The Empire District Electric Co. (a)
    32,975       852,404  
The Laclede Group, Inc.
    33,895       1,676,108  
UIL Holdings Corp.
    48,316       1,799,771  
Unitil Corp.
    10,055       327,692  
Vectren Corp.
    68,994       2,844,623  
WGL Holdings, Inc.
    44,224       1,923,302  
York Water Co.
    9,641       194,555  
                 
              57,403,696  
                 
Total Common Stock
(Cost $1,697,595,459)     2,101,639,329  
         
                 
                 
 
 Other Investment Companies 2.9% of net assets
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    1,475,661       1,475,661  
 
 
 
See financial notes 61

Table of Contents

 
 Schwab U.S. Small-Cap ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
Securities Lending Collateral 2.8%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (d)
    60,135,167       60,135,167  
                 
Total Other Investment Companies
(Cost $61,610,828)     61,610,828  
         
                 
                 
 
 Rights 0.0% of net assets
 
Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Forest Laboratories, Inc., CVR *(b)(c)
    5,521       —  
 
Telecommunication Services 0.0%
Contra Leap Wireless CVR *(b)(c)
    45,801       115,419  
                 
Total Rights
(Cost $115,419)     115,419  
         
                 
                 
 
 Warrants 0.0% of net assets
 
Energy 0.0%
Magnum Hunter Resources Corp. *(a)(b)(c)
    11,911       —  
                 
Total Warrants
(Cost $—)     —  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
Rate, Maturity Date   ($)   ($)
 
 Short-Term Investment 0.0% of net assets
 
U.S. Treasury Obligation 0.0%
U.S. Treasury Bill
0.02%, 09/18/14 (e)(f)
    100,000       99,999  
                 
Total Short-Term Investment
(Cost $99,999)     99,999  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,761,255,152 and the unrealized appreciation and depreciation were $458,520,773 and ($56,310,350), respectively, with a net unrealized appreciation of $402,210,423.
 
* Non-income producing security.
(a) All or a portion of this security is on loan. Securities on loan were valued at $59,854,274.
(b) Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c) Illiquid security. At the period end, the value of these amounted to $115,419 or 0.0% of net assets.
(d) The rate shown is the 7-day yield.
(e) The rate shown is the purchase yield.
(f) All or a portion of this security is held as collateral for open futures contracts.
 
     
CVR —
  Contingent Value Rights
ETF —
  Exchange Traded Fund
REIT —
  Real Estate Investment Trust
 
In addition to the above, the fund held the following at 08/31/14:
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Appreciation
    Contracts   ($)   ($)
 
 Futures Contracts
                         
                         
Russell 2000 Index, e-mini, Long, expires 09/19/14
    5       586,700       21,390  
 
 
 
62 See financial notes

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

 
Portfolio Holdings as of August 31, 2014
 
 
This section shows all the securities in the fund’s portfolio and their values as of the report date.
 
The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.
 
                         
        Cost
 		  Value
Holdings by Category   ($)   ($)
 
  99 .7%   Common Stock     1,779,216,306       2,069,141,410  
  0 .1%   Other Investment Companies     1,052,105       1,078,492  
 
 
  99 .8%   Total Investments     1,780,268,411       2,070,219,902  
  0 .2%   Other Assets and
Liabilities, Net 		            5,111,170  
 
 
  100 .0%   Net Assets             2,075,331,072  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.7% of net assets
 
Banks 0.1%
First Financial Bancorp
    31,137       517,186  
Umpqua Holdings Corp.
    83,550       1,459,618  
                 
              1,976,804  
 
Capital Goods 12.7%
3M Co.
    306,360       44,115,840  
Eaton Corp. plc
    234,544       16,373,517  
Emerson Electric Co.
    345,710       22,132,354  
Fastenal Co.
    133,974       6,066,343  
General Dynamics Corp.
    160,589       19,792,594  
Illinois Tool Works, Inc.
    187,197       16,512,647  
Lockheed Martin Corp.
    131,311       22,848,114  
Northrop Grumman Corp.
    105,780       13,457,332  
Raytheon Co.
    154,410       14,875,859  
The Boeing Co.
    330,314       41,883,815  
United Technologies Corp.
    416,214       44,942,788  
                 
              263,001,203  
 
Commercial & Professional Services 0.1%
R.R. Donnelley & Sons Co.
    98,400       1,738,728  
 
Consumer Durables & Apparel 0.8%
Garmin Ltd.
    60,352       3,278,924  
Hasbro, Inc.
    56,797       2,990,646  
Leggett & Platt, Inc.
    68,294       2,396,437  
Mattel, Inc.
    166,717       5,750,069  
Tupperware Brands Corp.
    24,764       1,814,211  
                 
              16,230,287  
 
Consumer Services 2.7%
Cracker Barrel Old Country Store, Inc.
    11,554       1,160,137  
Darden Restaurants, Inc.
    64,429       3,048,780  
H&R Block, Inc.
    134,711       4,516,860  
International Game Technology
    123,046       2,074,556  
McDonald’s Corp.
    487,968       45,732,361  
                 
              56,532,694  
 
Diversified Financials 0.7%
Federated Investors, Inc., Class B
    48,703       1,494,695  
T. Rowe Price Group, Inc.
    128,705       10,424,461  
Waddell & Reed Financial, Inc., Class A
    41,716       2,273,522  
                 
              14,192,678  
 
Energy 12.7%
Chevron Corp.
    729,725       94,462,901  
ConocoPhillips
    605,466       49,175,949  
Exxon Mobil Corp.
    895,146       89,031,221  
Helmerich & Payne, Inc.
    52,780       5,544,539  
HollyFrontier Corp.
    97,639       4,884,879  
RPC, Inc.
    31,683       721,422  
The Williams Cos., Inc.
    338,094       20,096,307  
                 
              263,917,218  
 
Food & Staples Retailing 3.4%
Sysco Corp.
    287,428       10,873,401  
Wal-Mart Stores, Inc.
    794,852       60,011,326  
                 
              70,884,727  
 
Food, Beverage & Tobacco 11.4%
Altria Group, Inc.
    978,865       42,169,504  
B&G Foods, Inc.
    26,254       792,871  
Campbell Soup Co.
    87,818       3,936,003  
ConAgra Foods, Inc.
    206,564       6,651,361  
Flowers Foods, Inc.
    85,765       1,679,279  
General Mills, Inc.
    303,336       16,192,076  
Kellogg Co.
    126,258       8,202,982  
PepsiCo, Inc.
    747,394       69,126,471  
Reynolds American, Inc.
    152,975       8,944,448  
The Coca-Cola Co.
    1,863,369       77,739,755  
Universal Corp.
    11,006       580,676  
                 
              236,015,426  
 
Health Care Equipment & Services 1.3%
Baxter International, Inc.
    267,533       20,059,624  
Computer Programs & Systems, Inc.
    5,422       333,128  
Meridian Bioscience, Inc.
    23,571       461,284  
Owens & Minor, Inc.
    30,960       1,065,024  
Quest Diagnostics, Inc.
    70,736       4,471,223  
                 
              26,390,283  
 
Household & Personal Products 7.1%
Colgate-Palmolive Co.
    429,621       27,809,368  
Kimberly-Clark Corp.
    185,829       20,069,532  
 
 
 
See financial notes 63

Table of Contents

 
 Schwab U.S. Dividend Equity ETF
 

 
Portfolio Holdings continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
The Clorox Co.
    63,700       5,643,820  
The Procter & Gamble Co.
    1,141,112       94,837,818  
                 
              148,360,538  
 
Insurance 1.0%
Aflac, Inc.
    223,941       13,714,147  
Arthur J. Gallagher & Co.
    76,925       3,633,168  
Mercury General Corp.
    17,540       898,574  
PartnerRe Ltd.
    21,741       2,428,252  
Safety Insurance Group, Inc.
    6,504       359,021  
                 
              21,033,162  
 
Materials 4.3%
Air Products & Chemicals, Inc.
    104,804       13,960,941  
Compass Minerals International, Inc.
    16,392       1,460,035  
E.I. du Pont de Nemours & Co.
    452,028       29,883,571  
International Paper Co.
    214,061       10,371,255  
Schweitzer-Mauduit International, Inc.
    14,658       627,949  
Sonoco Products Co.
    49,947       2,055,819  
The Dow Chemical Co.
    594,424       31,831,405  
                 
              90,190,975  
 
Media 0.7%
Gannett Co., Inc.
    111,579       3,766,907  
Meredith Corp.
    18,181       846,871  
Omnicom Group, Inc.
    127,112       9,153,335  
                 
              13,767,113  
 
Pharmaceuticals, Biotechnology & Life Sciences 10.3%
Eli Lilly & Co.
    484,651       30,804,418  
Johnson & Johnson
    884,011       91,698,461  
Pfizer, Inc.
    3,103,411       91,209,249  
                 
              213,712,128  
 
Retailing 4.5%
American Eagle Outfitters, Inc.
    83,730       1,178,918  
Genuine Parts Co.
    75,496       6,624,019  
Staples, Inc.
    319,114       3,727,252  
Target Corp.
    312,660       18,781,486  
The Home Depot, Inc.
    674,758       63,089,873  
                 
              93,401,548  
 
Semiconductors & Semiconductor Equipment 6.7%
Analog Devices, Inc.
    155,437       7,945,940  
Intel Corp.
    2,453,936       85,691,445  
Linear Technology Corp.
    115,883       5,227,482  
Maxim Integrated Products, Inc.
    138,887       4,290,219  
Microchip Technology, Inc.
    99,286       4,848,135  
Texas Instruments, Inc.
    531,631       25,613,982  
Xilinx, Inc.
    132,077       5,580,253  
                 
              139,197,456  
 
Software & Services 6.4%
Automatic Data Processing, Inc.
    237,591       19,834,097  
CA, Inc.
    158,362       4,472,143  
Microsoft Corp.
    2,235,438       101,555,948  
Paychex, Inc.
    159,258       6,633,096  
                 
              132,495,284  
 
Technology Hardware & Equipment 0.2%
Harris Corp.
    52,436       3,743,406  
 
Telecommunication Services 8.7%
AT&T, Inc.
    2,558,468       89,444,041  
Verizon Communications, Inc.
    1,850,447       92,189,270  
                 
              181,633,311  
 
Transportation 3.4%
C.H. Robinson Worldwide, Inc.
    72,865       4,973,765  
CSX Corp.
    495,235       15,307,714  
Norfolk Southern Corp.
    153,073       16,378,811  
United Parcel Service, Inc., Class B
    347,646       33,836,385  
                 
              70,496,675  
 
Utilities 0.5%
Alliant Energy Corp.
    54,262       3,173,784  
Questar Corp.
    85,998       2,021,813  
Wisconsin Energy Corp.
    111,056       5,034,169  
                 
              10,229,766  
                 
Total Common Stock
(Cost $1,779,216,306)     2,069,141,410  
         
                 
                 
 
 Other Investment Companies 0.1% of net assets
 
Equity Fund 0.0%
Vanguard Dividend Appreciation ETF
    5,000       390,600  
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)
    687,892       687,892  
                 
Total Other Investment Companies
(Cost $1,052,105)     1,078,492  
         
 
End of Investments
 
At 08/31/14, the tax basis cost of the fund’s investments was $1,780,166,224 and the unrealized appreciation and depreciation were $300,887,352 and ($10,833,674), respectively, with a net unrealized appreciation of $290,053,678.
 
     
ETF —
  Exchange Traded Fund
 
(a) The rate shown is the 7-day yield.
 
 
 
64 See financial notes

Table of Contents

(PWC LOGO)
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of:
Schwab U.S. Broad Market ETF
Schwab U.S. Large-Cap ETF
Schwab U.S. Large-Cap Growth ETF
Schwab U.S. Large-Cap Value ETF
Schwab U.S. Mid-Cap ETF
Schwab U.S. Small-Cap ETF
Schwab U.S. Dividend Equity ETF
Schwab International Equity ETF
Schwab International Small-Cap Equity ETF
Schwab Emerging Markets Equity ETF
In our opinion, the accompanying statements of assets and liabilities, including the summary portfolio holdings, and the related statements of operations and of changes in net assets and the financial highlights (included in Item 1 of this Form N-CSR) and the portfolio holdings (included in Item 6 of this Form N-CSR) present fairly, in all material respects, the financial position of Schwab U.S. Broad Market ETF, Schwab U.S. Large-Cap ETF, Schwab U.S. Large-Cap Growth ETF, Schwab U.S. Large-Cap Value ETF, Schwab U.S. Mid-Cap ETF, Schwab U.S. Small-Cap ETF, Schwab U.S. Dividend Equity ETF, Schwab International Equity ETF, Schwab International Small-Cap Equity ETF and Schwab Emerging Markets Equity ETF (ten of the funds constituting Schwab Strategic Trust, hereafter referred to as the “Funds”) at August 31, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements, financial highlights and portfolio holdings (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
(PricewaterhouseCoopers LLP)
October 17, 2014
PricewaterhouseCoopers LLP, Three Embarcadero Center, San Francisco, CA 94111
T: (415) 498 5000, F: (415) 498 7100, www.pwc.com/us

Table of Contents

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)    Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached.
  (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.

 

Table of Contents

(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.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Strategic Trust
         
By:
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  Chief Executive Officer    
 
        
Date:
  October 16, 2014    
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  Chief Executive Officer    
 
        
Date:
  October 16, 2014    
         
By:
  /s/ George Pereira
 
George Pereira 		   
 
  Principal Financial Officer    
 
        
Date:
  October 16, 2014    

 

EX-99.CODE ETH 2 f30270exv99wcodeeth.htm EX-99.CODE ETH exv99wcodeeth
     
F.II.1.B.
  Code of Business Conduct and Ethics
Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers
Schwab funds:
The Charles Schwab Family of Funds
Schwab Investments
Schwab Capital Trust
Schwab Annuity Portfolios
Laudus Funds:
Laudus Trust
Laudus Institutional Trust
Schwab ETFs:
Schwab Strategic Trust
I. Scope
This Code of Business Conduct and Ethics (the “Code”) for the Schwab Funds, Laudus Funds and Schwab ETFs (the “Funds”) covers the Principal Executive Officer and Principal Financial Officer and any other officers who serve a similar function (each an “Officer”) of all of the investment companies within the Funds’ complex and applies to their service to the Funds.
II. Introduction
The Funds are committed to the highest standards of ethical conduct. The Code consists of an outline of policies regarding conduct pertaining to legal compliance, personal conflicts of interest, confidentiality and privacy, and certain business practices. You are responsible for reviewing the Code and for acting in compliance with the Code in your daily activities.
The Code is not exhaustive; it provides guidance for carrying out your responsibilities on behalf of the Funds and observing the highest standards of ethical conduct. Because the Code does not address every possible situation that may arise, you are responsible for exercising good judgment, applying ethical principles, and raising questions when in doubt. Your integrity and good judgment reflect on the Funds’ brand and reputation, and are the foundation of trust for our shareholder and business relationships.
If you are unsure of what to do in any situation or how to interpret the provisions of the Code, seek guidance before you act. Use the Funds’ resources, including the Chief Legal Officer or the Chief Compliance Officer. If you feel that it is not appropriate to discuss a matter with the Chief Legal Officer or the Chief Compliance Officer, you may contact the Ombudsperson for The Charles Schwab Corporation.
Contact Information
         
Title   Name   Phone Number
Chief Compliance Officer
   Michael F. Hogan   415-667-1987
 
        
Chief Legal Officer of CSIM,
   David Lekich   415-667-0660
Schwab Funds and Schwab ETFs
        
 
        
Chief Legal Officer of Laudus
   Catherine MacGregor   415-667-0650
Funds
        
 
        
The Charles Schwab
   Sam Scott Miller, Esq.   212-506-5130
Corporation Ombudsperson
   Orrick Herrington & Sutcliffe    
 
   LLP    
III. Policies
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   1

 

 

     
F.II.1.B.
  Code of Business Conduct and Ethics
In executing your responsibilities on behalf of the Funds, your conduct should reflect positively on the Funds. A strong personal sense of ethics should always play a significant role in guiding you towards a proper course of action. The appearance of impropriety can be as harmful to the Funds’ reputation as improper conduct.
The Funds’ business is subject to various laws, rules and regulations, including federal securities and state and local laws. Although you are not expected to know the details of the myriad of laws governing our business, you are expected to be familiar with and comply with policies and procedures that apply to your business unit and complete any required training that applies to you (e.g., training regarding privacy or anti-money laundering).
A. Personal Conflicts of Interest
It is important that you do not place yourself in a position that would cloud your judgment in carrying out the business affairs of the Funds. A “personal conflict of interest” occurs when your private interest interferes in any way — or even appears to interfere — with the interests of the Funds. You have a duty to report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected to be or to create a conflict of interest with the Funds.
Officers, in addition to their obligation to the Funds, may also be an officer or employee of CSIM or Schwab. As a result, this Code recognizes that the Officers will, in the normal course of their duties (whether formally for the Funds or for CSIM, or for both), be involved in establishing policies and implementing decisions that will have different effects on CSIM and the Funds. The participation of the Officers in such activities is inherent in the contractual relationship between the Funds and CSIM and is consistent with the performance by the Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed under the Code to have been handled ethically. In addition, it is recognized by the Trustees that the Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
B. Inside Information
Do not trade on inside information or disclose inside information to anyone except those who have a need to know it in order to fulfill their responsibilities for the Funds and in accordance with the Funds’ policy. This applies to information regarding the Funds, The Charles Schwab Corporation and its subsidiaries, and any other publicly traded company.
Generally, material information is any information that an investor would likely consider important in deciding whether to buy, sell or hold securities or that could affect the market price of the securities. Examples include actual or estimated financial results or change in dividends; significant discoveries or product developments; possible mergers, acquisitions or divestitures; major changes in business strategies; obtaining or losing significant contracts; and threatened major litigation or related developments. If you have or receive information and are unsure whether it is within the definition of inside information or whether its release might be contrary to a fiduciary or other obligation, contact the Chief Compliance Officer prior to disclosing any such information.
You must not use the Funds’ non-public holdings or transactions information in any way to influence your trades or the trades of other shareholders, including those of other employees, officers and directors. Trading ahead of shareholder or the Funds’ transactions (frontrunning) and following shareholder or the Funds’ transactions (piggybacking or shadowing) is prohibited.
C. Acceptance of Gifts or Entertainment
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   2

 

 

     
F.II.1.B.
  Code of Business Conduct and Ethics
You must not accept gifts or entertainment from shareholders, vendors, suppliers, competitors or other employees where they present a conflict of interest or create the appearance of impropriety. You must adhere to the CSIM and The Charles Schwab Corporation policies regarding gifts and entertainment, and apply the more stringent restrictions.
D. Confidentiality of Information and Privacy
Information concerning the identity of the Funds’ underlying shareholders and their transactions and accounts is confidential. Such information may not be disclosed to persons working on behalf of the Funds except as they may need to know it in order to fulfill their responsibilities to the Funds. You may not disclose such information to anyone or any firm outside the Funds unless (i) the outside firm needs to know the information in order to perform services for the Funds and is bound to maintain its confidentiality; (ii) when the shareholder has consented or been given an opportunity to request that the information not be shared; (iii) as required by law; or (iv) as authorized by the Chief Legal Officer or Chief Compliance Officer.
The Funds are committed to safeguarding its customers’ privacy. We do not sell any personally identifiable customer information. Sharing of such information with third parties is limited to situations related to the processing and servicing of customer accounts, and to specifically delineated exceptions in the federal privacy law. We share information with our affiliates to the extent permitted by federal law. You must be familiar with the procedural and systemic safeguards we maintain to protect this information.
You have the responsibility to safeguard the Funds’ proprietary information. Proprietary information includes intellectual property (copyrights, trademarks or patents or trade secrets), particular know-how (business or organizational designs, or business, marketing or service plans or ideas) and sensitive information about the Funds (databases, records, salary information or unpublished financial reports).
E. Protection and Use of Funds’ Assets
You are obligated to protect the Funds’ assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Funds. The Funds’ equipment should not be used for non-Funds’ business, though incidental personal use may be permitted.
F. Financial Disclosures
The Funds are committed to providing full, fair, accurate, timely and understandable disclosure in reports and documents that the Funds file with, or submit to, the Securities and Exchange Commission and other regulatory agencies and in other public communications made by the Funds. You are required to comply with the Funds’ policies and procedures to provide such full, fair, accurate, timely and understandable disclosure.
G. Conduct of Audits
Neither you nor any other person acting under your direction shall directly or indirectly take any action to fraudulently influence, coerce, manipulate, or mislead any independent public or certified public accountant engaged in the performance of an audit or review of the Funds’ financial statements.
Types of conduct that constitute improper influence include, but are not limited to, directly or indirectly:
  §   Offering or paying bribes or other financial incentives, including offering future employment or contracts for non-audit services
 
  §   Providing an auditor with inaccurate or misleading legal analysis
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   3

 

 

     
F.II.1.B.
  Code of Business Conduct and Ethics
  §   Threatening to cancel or canceling existing non-audit or audit engagements if the auditor objects to the issuer’s accounting
 
  §   Seeking to have a partner removed from the audit engagement because the partner objects to the Funds’ accounting
 
  §   Blackmailing
 
  §   Making physical threats
H. Recordkeeping
You must be familiar with the Funds’ record retention policies and always retain or destroy records according to them. In the event of litigation, governmental investigation or the threat of such action, you should consult the Chief Legal Officer or the Chief Compliance Officer regarding record retention.
The Funds’ books, records and accounts must conform both to applicable legal requirements and to the Funds’ internal controls and policies.
Unrecorded or “off-the-books” funds or assets are prohibited unless permitted by applicable law or regulation. Business records must not contain exaggeration, derogatory remarks, guesswork, or inappropriate characterizations of people and companies. This applies equally to email, internal memoranda, formal reports, and all other forms of business records.
I. Sales Practices
If you transact business for shareholders, you are required to know and observe the Funds’ specific policies and procedures for shareholder sales and transactions, such as the content and use of sales materials, documentation for transactions, quotations and suitability. Likewise, if you transact business with third parties (such as vendors or suppliers), you will be required to know and observe the Funds’ policies and procedures for such transactions, such as marketing policies, procedures for performing due diligence on third parties, and obtaining proper authorizations for any agreements. You must be familiar with any enumerated policies and procedures governing your sales activities and use good judgment in complying with them.
J. Competition and Fair Dealing
We operate our business fairly and honestly. We seek competitive advantage through performance and never through unethical or illegal business practices. It is our policy to comply with anti-trust laws. These laws are complex and not easily summarized, but at a minimum require that there be no agreement or understanding between the Funds and their competitors that affect prices, terms or conditions of sale or that unreasonably restrain full and fair competition. You must always respect the rights of and deal fairly with the Funds’ shareholders and competitors. You must never take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice.
K. Prohibition of Bribery and Kickbacks
Our policies prohibit bribery or kickbacks of any kind and to anyone in the conduct of our business. The U.S. government has a number of laws and regulations applicable specifically to business gratuities that may be offered to or accepted by U.S. and foreign government personnel. The promise, offer or delivery to an official or employee of the U.S. government or an official, employee or candidate of a foreign government of a gift, favor, payment or other gratuity in violation of these rules would not only violate the Funds’ policy but could also be a criminal offense. Similarly, federal law, as well as the laws of many states, prohibits engaging in “commercial bribery.” Commercial bribery involves soliciting, demanding or agreeing to accept anything of value from any person intending to influence or be rewarded in connection with any
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   4

 

 

     
F.II.1.B.
  Code of Business Conduct and Ethics
business or transaction, and prohibits all such behavior, for example, with respect to vendors, competitors, shareholders, and government employees.
L. Waivers
Waivers of the Code may be made only by the Trustees, and will be promptly disclosed publicly as required by law.
M. Code Amendments
This Code may not be amended except in written form, which is specifically approved or ratified by a majority of the Trustees including a majority of the independent Trustees. Any amendments will, to the extent required, be disclosed in accordance with law.
N. Confidentiality
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees, CSIM, The Charles Schwab Corporation and their respective counsel.
III. Escalation and Prohibition against Retaliation
If you know of, or reasonably believe there is, a violation of this Code, you must report that information immediately to the Funds’ Chief Compliance Officer. Depending on the possible violation, you may also be required to report it pursuant to The Charles Schwab Corporation Code of Business Conduct and CSIM compliance policies and procedures. You should not conduct preliminary investigations unless authorized to do so by the Compliance Department.
No Officer will be retaliated against for making a good faith complaint or for bringing inappropriate conduct to the attention of the Funds’ personnel, Ombudsperson or Trustees, for assisting another employee or applicant in making a good faith report, for cooperating in an investigation, or for filing an administrative claim with a state or federal governmental agency. Any Officer who in good faith raises an issue regarding a possible violation of law, regulation or company policy or any suspected illegal or unethical behavior will be protected from retaliation.
If you have violated the Code, however, making a report will not protect you from the consequences of your actions. You can be subject to discipline up to and including termination of employment if you violate the Code or fail to report violations that come to your attention.
Any employee who engages in retaliatory conduct in violation of our policies will be subject to disciplinary action, up to and including termination of employment. If you reasonably believe retaliatory conduct has occurred, you must report such conduct to the Funds’ Chief Compliance Officer.
IV. Procedures
A. Officers
§   Read and be familiar with conduct rules outlined in the Code, and periodically review them.
 
§   Affirm in writing to the Trustees that you have received, read and understand the Code.
 
§   Annually affirm to the Trustees that you have complied with the requirements of the Code.
 
§   Comply with the conduct standards outlined in this Code in all dealings and actions, including those with shareholders, the public, and vendors.
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   5

 

 

     
F.II.1.B.
  Code of Business Conduct and Ethics
§   Report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected to be or to create a personal conflict of interest with the Funds.
 
§   Report in a timely manner to the Chief Compliance Officer any conduct that may constitute a violation of the Code, the Funds’ policies, or laws, rules and regulations.
 
§   Raise questions or concerns about conduct issues with your supervisor, the Chief Legal Officer or Chief Compliance Officer, and seek advice when in doubt.
 
§   Cooperate with management during fact-finding investigations and comply with any confidentiality rules imposed.
B. Chief Compliance Officer
§   The Chief Compliance Officer, upon becoming notified of potential violation of this Code, will conduct, facilitate or delegate a review of the matter and will report to the Chairperson of affected Fund’s Audit and Compliance Committee any violations of this Code that he or she believes to be material.
 
§   The Chief Compliance Officer, upon becoming notified of a personal conflict of interest between an Officer and the Funds that the Chief Compliance Officer deems to be material, will report the issue to the Chairperson of the affected Fund’s Audit and Compliance Committee and will work with legal and other appropriate parties to ensure that any required disclosures are made.
C. Trustees
§   The Board of Trustees will consider appropriate action to address any violations of the Code that they deem to be material, which may include review of and appropriate modification to applicable policies and procedures, notification to appropriate personnel of CSIM or its board, notification to appropriate personnel of The Charles Schwab Corporation or its board, or a recommendation to dismiss the Officer.
VI. Regulatory Authority
This Code constitutes the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, CSIM, Charles Schwab & Co., Inc., The Charles Schwab Corporation or other Fund service providers govern or purport to govern the behavior or activities of an Officer who is subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. CSIM’s, the Funds’ and Charles Schwab & Co. Inc.’s (as distributor) joint code of ethics under Rule 17j-1 pursuant to the Investment Company Act of 1940 and Rule 204A-1 of the Investment Advisers Act of 1940 and CSIM’s, Charles Schwab & Co., Inc.’s, and The Charles Schwab Corporation’s policies and procedures set forth in their respective compliance manuals and elsewhere are separate requirements applying to the Officers and are not part of this Code.
Version History
Adopted Schwab and Laudus Funds: June 15, 2011, Schwab ETFs: August 4, 2011
Revised August 8, 2013
end
     
The information contained herein is the property of Charles Schwab and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) outside of Charles Schwab with prior permission of the Mutual Fund’s Chief Compliance Officer or his/her designee.
   6

 

EX-99.CERT 3 f30270exv99wcert.htm EX-99.CERT exv99wcert
CERTIFICATIONS
I, Marie Chandoha, certify that:
1. I have reviewed this report on Form N-CSR of Schwab Strategic Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosures and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
Date: October 16, 2014
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  President and Chief Executive Officer    

 

 

CERTIFICATIONS
I, George Pereira, certify that:
1. I have reviewed this report on Form N-CSR of Schwab Strategic Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosures and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
         
Date: October 16, 2014
  /s/ George Pereira
 
George Pereira 		   
 
  Treasurer and Principal Financial Officer    

 

EX-99.906CERT 4 f30270exv99w906cert.htm EX-99.906CERT exv99w906cert
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report for Schwab Strategic Trust (“issuer”) on Form N-CSR for the period ended August 31, 2014 (“periodic report”), each of the undersigned, being the Chief Executive Officer and Principal Financial Officer, hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
(1) The periodic report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer for the period presented therein.
     
/s/ Marie Chandoha
 
Marie Chandoha
  Date: October 16, 2014 
President and Chief Executive Officer
    
 
    
/s/ George Pereira
 
George Pereira
  Date: October 16, 2014 
Treasurer and Principal Financial Officer
    
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.

 

GRAPHIC 5 f30270schwabetf.gif GRAPHIC begin 644 f30270schwabetf.gif M1TE&.#EAPP`?`,00`/#P\!`0$&!@8-#0T'!P<.#@X#`P,"`@(*"@H+"PL%!0 M4)"0D,#`P("`@$!`0````/___P`````````````````````````````````` M`````````````````````````"'Y!`$``!``+`````##`!\```7_("2.9&F> M:*JN;.N^<"S/-%W4^'KG?.__*`"CX7@T@+AA\8AL.F>)AG3!B#$>6"SS^"PJ1'P8@,(6"%1-HI;PL-W1G#8[_B\8S#0^_-$?WXM?7D#1%L`=B(`!@\& M51`%!',P16YO+0V5,0@-`F9W9@\%5Z.G7D,$;5@'=J$M#`(0#D<*55@`(@B8 MH`&Z))L.,I=;F2J;F#6.RB-KCA`##P0EE\,C``H/(\G;)0,+#PHMI;1'##<& M`0LB#@9'!5C4)J[$G,@7S!N$!%E0O+-DS(&`?P4$U(*0 M3"")5:#Z(Z"VKLR8\G":17&T(( M=V0B)2Q+740A0&#!#JJ8HBAHL+04@[MX@:'`BW<`B0)`&R08,\<3@09^7V!M ML=AD0A<#[B8F,<"`@<0##@P`0*KRN)/3]*8`0&;48+@-&,CQ8D!7MU0D#LP# M"$L2*-:BDPD0P*KJY)4\C:9H?/1Q":$0`/#V$D#`6T]T=T6O`EV$MBP!&HC^ MYDC`W06KF5QR%,"!@M4/KBG/8O'@@P`ELKVO`H"2@01#LAA+UGP!4/0!_#8< M3QBI0%Q1QI$@%/\`"(F9D)^$`9:2E7(#MG)'6;0\DQAD6`MYV MVD`/I-'(>WHE(Q4W]W3S"T[W9//B@%M]E:`(X40"RBPD@)+#:QZ6X,AL*&`5 MW@C7(3FB.,?-:`J2TF"AE4K=^#04*E4!EZ-C7`J%!3LZ\A!1;]/`2(J7*MVV M!2\/_#,"G%B\A1"0V1SP%FTH=43/&33&F8%,ZB;)I`P(V&?ED-DLXOVV8'J.P4N15O,QNZ:JE%^.+PIFC>+L"4"ID M$9G(!)=:PJ\(17)2(ZRNF**"$?>*:*!:8ERSQBHDL*H7`K(0SI['63GJ`T#B MB.4]XAYP7FSR/$`FCUBP"D&",D,-9@Q M&PFX6[%BS*EU!MDES._>=-W8*+KJT-9[=3VM"7#B;39:)P2^"W9/)\?;#6RW MF<6>3TI]6Z714-WH-Y=C34)V?)^`\]\EB.MOV@JKI15-&47[RIH4!,AQ&E9G MI2Z"N&7+[70)=#IGDQ>"#<;?;P7(4;OFAR=N\?"$17P"T=\R+\-UXN`W1!GJ MJCY*`(,!A5UJLZ^215L&OUR"*4##E<4!":#GAHRI,>!]]36YCYT?;;07V5GO MI09\P-4J@-\)55)`8@J@C=;,```+J%86;H&"!"C0.>W0PSS^<+*!T4-JC`!1 MOXH2@.8\!WIG@"`+B!0F>9FO-B(@H=_BQ1SM:(LO+KC+Z#(A!-$4(%MV*5]6 7(!4%*0AFACL,HA"'2,0B&O&(-`@!`#L_ ` end GRAPHIC 6 f30270pchandom.jpg GRAPHIC begin 644 f30270pchandom.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````'@``_^X`#D%D M;V)E`&3``````?_;`(0`$`L+"PP+$`P,$!'B,E)R4C'B\O,S,O+T!`0$!`0$!`0$!`0$!`0`$1#P\1$Q$5$A(5 M%!$4$10:%!86%!HF&AH<&AHF,",>'AX>(S`K+B>&0C);,N)FGF/=H@]C/^NO8E[AYRN*Z M%\HN[.01SN,ELXT:7`BB?(3 M@P%Q\%YWP)B]F\GM0TD.;6ZT'YH` ML2:_8M@,>Y$>V<-,L5AL+BWO'XH*F!=#\=ZR;2813']A^#QPX.'XI)Z1#=RV M;5CP1H:(/6H0"T$8@BH(X(AK4D^*7HO.FM8>>WI&[N_I*?M:@RUJ'N^0HL"B M%O.0H$QS3OIO\9J2:IYT[^,U`3JHIJH@4OAEK5S2`K8XZ)@YH*KI07(*_D$KF],F_(&D](N* M:-!^H7GL@^]!NR1\A#6]U$?8V$MW+1@H&#%;]"MHW/\`<2%M&FC6DYD8Y9H[ MWDEA*XVVPMD/*6D?5!H.EO<2PC:23]B%=T\M.QHQ`^Y/[*Z%RS?*6QRZ"N9' M>E5]>/\`4,,1#*NH7YH`9+/:,O*$KD;LE[#[B@[N,D^ ML!05+<>+:?F@ZWX`7&2[;7R[&&G;4KM0%Y]\%N/2ZKZ)RN(W-'>WS#[EZ&@B M#O>0HQ!WO(4"?5/;#^,U(M4^L/XS.Y!?JHIJH@A-&$]B3R7&XD!-W_ZSW)!& M,7=Z#$@K0K,0_<"VDT6(N<(++N!MQ;20.Y9&EI/>O.+VVDMYWPRBCV$M/@O2 MWY)-UGH\5]&V9HVS--"[B.U`EZ18%C+>[`+F/:X/#1BPXAKL,PB9[*)SAB^K M34"AS\0F%C`;6!D)/)4?5$2R1L87.0+F60E;'%*TF%KM[@[(T&`2FYM6"[\%ZXEK+6A']SG5%%WR3 M?%K06_3&O_[SO'^.03I!$%>\A1I05[R%`GU3ZQ_C,[DA_J3OI\K3"UM<0@*U M44U408=R'N2%G,[O3&XZC#Z9;$[<2-$MCU[T&TFBQ'SA9DT6(^<("'\JI>:6 M[R*D@84&X^#<*JY_*JF'!`MAG]=A?M+<2T@BAP[-%5P:D(VXH31 MO-F?%4LH7@G,(*&W4LS:11AN8I(X,<*?VH&^BG:/W&Q-I74DX)I<6S9/,`-W M&B63V)K5SOM0#637R$ND`:T5H!JB>GV/N[HPDEK2'5<,P%07",@-R&:?]&M7 M0#U)!267$C4-T"!_8P-MK:.!I+@P`;CF>W!$JN+(*Q!"@KT^0HMQ0%X[RD(% M1-#57V\^PU!0[\D,Z9T;NQ`]]TYIE+=WE.!'YC4(,GJ7I@MD:>\8I?==2$ MGE8#WE&W4;7"J7RPM`K3%!I;OH_U7"H9YJ'L74],OHK^-EQ%A7G9JQVH*Y-U M1$X#`D%!"]NK65L\$CXW2"ILU]/U,:5:?F_ M6R.:(?\`F/S0>@2.P2ZZ-:KBI/EW6I2"9@RFC&@`]Z:]*^1F^=[:[`;,>1XP M#CPIH4![\D#.?,C9#@4JO)MKD%N[RJ(7W0VYJ('0<%;&P6D?J3 M.H-!J>X(#G')47-];V3/5G=3]+1S./8D-W\FE=5MO&SL3^22W%W/!6LI:N1-?L3UUP'VGI.!#@10TPHE/49"^* M-K23'%0-Q)&`IA4"B`(E8!4H[;GJHA]YV^*B#IH-^[S)/U M7W/N7>O_`,:9;=***(%Q6AHHH@UPKADH[;J2HH@T'8M\%%$&,%EE-XSS\?HH MH@8,]'9^YOI45K6E=,U9-[?TCB:**(% ;?M8MVGU*X#:B.J;-_FXJ*(%_[6W/5111!__9 ` end GRAPHIC 7 f30270legblack.gif GRAPHIC begin 644 f30270legblack.gif M1TE&.#EA"0`)`(```````/___R'Y!```````+``````)``D```((A(^IR^T/ $3P$`.S\_ ` end GRAPHIC 8 f30270leg70k.gif GRAPHIC begin 644 f30270leg70k.gif M1TE&.#EA"@`*`*(``&UN<;:WN)*2EQUTA20AHB@X)`#L_ ` end GRAPHIC 9 f30270leg50k.gif GRAPHIC begin 644 f30270leg50k.gif M1TE&.#EA"0`)`(```)^?GW]_?R'Y!```````+``````)``D```(*C(^IR^VO &@)RS```[ ` end GRAPHIC 10 f30270leg25k.gif GRAPHIC begin 644 f30270leg25k.gif M1TE&.#EA"0`)`)$``-O;V\_/S[^_OP```"'Y!```````+``````)``D```(/ 1E&^!J)O^8'-S51:RSJ```#L_ ` end GRAPHIC 11 f30270legbox.gif GRAPHIC begin 644 f30270legbox.gif M1TE&.#EA"0`)`*($`&!@8)"0D("`@,#`P/___P```````````"'Y!`$```0` C+``````)``D```,5"+,\(21*,N",]6)[L_8=-PU*LP0)`#L_ ` end GRAPHIC 12 f30270etf02.gif GRAPHIC begin 644 f30270etf02.gif M1TE&.#EA)0&@`.9_`.GJZX*#AI"0D/KZ^BHJ*O#P\-/4U=35UY>9G%M<7R,D M)#`P,(J+C4!`0*BIJI:8FY&2E*ZOL45%1^7EYK"RM,[/T0```-;7V`T-#6MK M;,C)RQ(2$YN(BIR>H7!P[N[W]_@,+#Q)R=GU%25&5F:(N-D(2&B9^@H3@X.<;(R8J,CG%R=7U^ M?S8W.&%B8]S=WVUN*"@H.#@X-#0T,S- MSMK;W+"PL,3%QV!@8'M\?]W>W]OHJJ:HJ]C9VK>XN>#AXJ"AHZ&C MIM'2T]?8VG%QF]P(B8J+C(V.CY"1DI.4E9:7E04_`DA_!0(_ M0()#0X("F*BIJJNLK:ZOJ#\%?T-%);,_1$5(2$5#1+#!PL/$Q<:HL[1%IYZU MO$4_Q]+3U-76F$,_3G_1@M$"G+K7X^3EYL3)OLQ_ZT.<)8,J.O/T]?;W^/GZ M^_S]_O\``PH<2+"@P8(3*'7[!$^9("2:N`T*XJ>BQ8L8,VK71J`L;D&"A=>L-H%/+EGP'@P43,W+/F!-[MF_"7UI_ M,7"Q]*K3OY.3-4#``@8.5WLKG]Z6]0SBT8TAI\Y]HQ0"6'IRN(T]^]/NZ$E* ML6WA^D4#6'3G1A'2@.T['(VKVIZ^NP$3%GS1'`;X=?$%>ZXY%](6`9(F77\0 MOM?<%A4%9P%KSF%1'H/T>70'>0YJ%^&(&$UX$0>V8:`A1E)80(!'_UF`7XCG MD9A><+HU1T!Y%76!`H\7S6"!%!T%]T53#]J8W/\*";:V(TDH6$#A1E%B`*1& M^J7"GY**4?58*)5Y)<A-`$1`E$(/&.)S$50$0I M-@T:&H,S8&&;"29R%,$.`8C$89N1CD3I(`N!(@@0N.;:3:BB[RA*3+X7(<]"VW';K[;?@ZE.#ASP1([H+'#&0#AD*`">0R4D"76TCKMI]!T(HB@O?H1@A!&L-7BD#!B!,$. M2RP,@4CC$;!"%Y]1H@G_G\QD*@@10$2S*\"B&B`$JV>Y*:E&453A`P5,5+2J M$`\8X&[+C5&R3#*A%*!$,J7(TM`?(`_*`,,[/%&6FT=RE`0"/C!-@@'%I@'# M&'X@\&Y4LXX24RY_:`J,)Z)\\C70`8^T*@-'C%RP148(00557=@VI1],@`&& M!Q7038$//JC!`1HC&QN#!Q6!L,,(6*-9=D;%"D%<""17E$3@1TA5Z-P5,,TW MWTX;,+2Q2Z00`!06';&##8TNE74E02L9P`X16#2TT9"SND,(45UND0=\BQ%% M$F*H#`832>R`MA]10%$%S14-C[,-+Z4XW M_Q1-4ZT1NZEOM&H`YE<4!1DD;)YW3M5/Q#L?\#`CV3NB1U`X`@10(`G,JT@%?$`"DOAP!U+T0_TD<;_TK`^` M(/G?3:2`A17!'#A3$C>YL>2+[XQS%&HHS= M:=S:0H+"$9Z$24UJD@(H`,$"9@0$($A=]MX6$H9U)/\*3=T*SE##S0E1+,I)`A7892Q8FL2(&!'6 MBUZX`VF&I`O-V4`*-F=#"/(-"CCDB-4@0`4&L,N<(%G5$D#`$28P+8<<0:$0 M(-`TO%7@H0=07&2@QKC/&>\)T'0G(UF%QB4V1U'OD<`7I-#('GU!`E?J`JIT M8QL%,``!!JA`\)(IAC$L$R-IBV8LK68\9)%A91TI7AIHZ`%1&A(2B&0+NY80 M@LH=`87&`P$`HU@2R)FP(M__<9$!XH8!BED$0Q;80!GFT"S7G*PB;'`&CQM)N1>Z*$3#\('+YD:AB@\_8U!%.825>0#BXN;`T-:/D+8G MWS7L_T542X&+D&%HCCL3*S$#.4Z&I%A+J"M&7H<[`R"``0":FQ_&0$$_6"C` M&9G@\I8`(,21R0+$10`8L(B3XB70*!>Q*M^ M2`(9*F(UN&:D>&PP`!.J@&(I941E4;"/!0($ M1(P1%!JX-2;XD10.O0$%("@'!IP<[/*89E0I8`$SF+1%#/_:W8N0;\H660)K M%*``"\B@L3@Q`(F54KPZ6X0,,$@#1T7"9T;XV2>^;79&I.V)`2V,8,/L`D2,,=X[.?;P09,X`?2*M0(!@!OT3Q2.P@T MN"<.=][5*;YAMH@LPV?T3FM>L%K_Y)'!Y4(R@R`):9$]>!,"O$\O\T]S M'I"EGK-NQZ.#I#EFJ"#1P5@""ZQ5_"$!N$587(6.L`N%W7WBT()^D<8]'RDY M-TFY%W'N]5/=AC>U$5WP`3A0!Q]`;0HP`P1@`CBP6,VQ!`A0>2,1)0O`>Q?A M0R]@&S7@`WOG$5M4!6(`!5#`-!UX0L:B4S`"35<27UV!`**G?TE7$E&@.21` M!6@``^W'_Q$#%`!X$&F1E"`?@$910@!WX`/>%Q)MUD5]M`'F!W,C$3_T=(08 MX5M6MA%+AQ&\%1GU`RJ?$`JC`"KK0#8_P3M@4`%ZM%`5IA$&]6YA)0<<\$;$ M$3\5$#<6@`86`2![P$4!Z!$4R`#ILP*V,0,D:!)1\%![N&XHF$W,YP=ZY&I^ M43U#H`2"<`OQACUTPW,4`#.T`N[\B]C:(1^L#!H M\SH!X$08008?$%9"\(+EY0-3IEPAP(2\HX0G82!LZ")$(H=TL?\TY,0_]W<7 MO^@-^@(.2"`.\1`N\_``/G``+<`J%Z`#8S`R,.`###8/%?`"K2$'&K`/!^`# M#W`%.L`:MH$'$>`#+,`M!Q`#>+``7Z`#5V!'4`"/&JD#=!`!$/"0&QF2^?!- MD@",@]`.FV*,/4%A5E4>D&,##+4R!E`#D/5C'4&&S!1IVZ@3UQ1E3"->1(03 MZ?@'#5$+#Q$1'^,3\3,&QK)85@,#'L`T788#.T"-:A@_C;(>7[!#.B%S$-17 M0;D30PD3,M$U-:&2.T%AEY<17Q0!3#`"U38#G@02)G9[?G"*//%3%'2+8WU)/Q7' M!%"X.55P)5L$!=QU$5+``<(D`4S8'OB1F"(A8RS&C9GY%ONG"*?Q4R0`!6+@ M`7:$`+U7`2I3`0^V&I&$`W(0.Z-)$N333#CT/G M!RCB(ECP1A0C,CO0=7M4$EL&>2HSAGX<`&:J%;WY@!!X) M1MC!(R@4`9.5@MZFH)W!H(8`&;\Y3LYD++IU@="D>Q8`93K(EQS:%QY*%!T1 MFE:EBP808?Q#_P7NE011%!QTTJ+3\:*!N1'D`YR_A5-RYTPM\ED^^J.*\X'' MR99)\$JR1@4,`E)+BAE<<`!-X`46H0,7$`8]$*9B*@)]YVQ.]&`?D757>AE< M8`4:(*9AV@%9(*99T`%VV@%AL`9EJD5<%$5W0&:P-V9K:A5"J>T6JN0R@70LJ>TF#W1>!O@J!'!TAJ$1JH=P:H' M<*P'H`6S*J8:H`4ZP!$ZH`5S*J8=H*I>H`6.&J=W:@7(>@!WV@$'P/\%KIJK M2W81ARD$-B><&'!6IG(;<$*L&\&JRTJK1J"E.N"FM9JO/7"I%S"KCMJLXWH4 M0,HKN[,R3V!S%@%)!*`;`*(B\'H1;?JMRVH$%W"HAIJH%P&K8?"M'&L%5X"Q M%7&O&I`%'YLX?2=S+*"0P^H'4N"#K2$!*KJ<4R"ISXH1K`JF^4JQ`2L9`XN6 M%<$[9[`#K6&@I#H%!Y"M6:`%37"JT]H#28NKJ=&S8N@^3<,!`-*CO<*J-8L1 M.L`%(*L1AGJT8>JQ.`NGE[JULB&U6K$W)%`&P](KL-H!U*JJ?@"K35NO\W`% M6M"HM`JPK\H%6J"EU*&V%@%*#S`'0TL=%NG_K7)*K1T0N`=@!78JIO4ZJUD0 M!H[ZN/-*IW;*K1?PM1!"N!6Q-RD`(%8J&XOJK?DJJ_J:M%O;!%80IGY;$:8: M!MR*J`$CNJ`4`VX[JCH!N'/ZM*!;%5,0ME8PKY>KI<-;O(:*MAE1O,,;EJ)+ M`3"0`,X1LR9Q!67;`W([MZ!KK%Q@L4UPK)^+$UX0N[7ZN%[[L$"Q&<'E!JT! MJ"(1K8XJO!4!N,MJ!>$KK?I*JZEZ$5Y@J%>`K.N;$?<:IG5ZK.'+OBA!N!3` M!_';$;`ZKT;PK=,*J/;K>$ZOA?@6&VL0]<509@P2YTC&% M,`&V,01]T,9NW,8B(+=9$`=O7,=NO`9K8,=ZO,=\W,=^_,>`',B"/,B$7,B& M?,B(K,>84"U$60(Q3`@'\`$W8`5!8,=P$*91,`")O,F_,F@',JB_,:+ MK"^C0!/K$`1>@+-6,`5>:@5SJ@%0^Q$3````,`%B/!I'U0V/#`1$X#&AP@4< MW,$[F\O=<50T@022.`KL@`0_`Q5&BZ?W:,PV\E=^(@B>(@A\0K#4/"BBV__- MHO+-X)PFXCS.2E+.YDPBZ)S.$;+.[-P?[OS.Z!'/\LP=]%S/3+JG^&S/,;C/ M4=O/_JS+`!W0H7'/!)VV`WW0G&'0"BW0^MS0"/W0$(T:##W1'9K0%JV%&)W1 MBU'1'+V@&_W1A.'1(JW1$EW2F%$_8W/-G@`HW(S2GE$].O,0FZ()LO`I00K3 M!5T)-*&.?W#&N%*,4ZO3,8TO/LT--HTM.4W4"PT)!8`K.'/4T4`$_/(#_O(' M(F#+6KW57-W57OW58!W68CW69%W69GW6:)W6:KW6;,W6=N#44.W39;PQ:+PK M`\`#>)W7>KW7?-W7?OW7@!W8@CW8A%W8AGW8B)W_V(J]V(I-II70#3FS,\SL M,^=0V99]V9C="%7<-0+P-4_M"9V=V:(]VJ1=VJ9]VJB=VJJ]VJS=VJ[]VK`= MV[(]V[1=V[9]V[B=V^/PU$/!#)O=TH,P!,DP-D4`F(I0`$/AR\$]"T7P-46` M*]M,"6/ST[U]*[/PU+@RW8_@CG_PW&`S"!S#"MGR`W^!PH0$Z`R"06P`(/0`/X-##,-X@0.!""N!$+= M"$@@X0V!*41`XMS@!#^P_P#Z70DH/HF9PN)_`.(QD0I*P."@L@TEP."=D.'^ M?0G\[=\`+N`A+@@07N$)WB<+@-Z%8-5F20N:T@EH/`04/BWP``0W;@N"T`", MP.6BT-,%0.9$``]DON,[3@HU[@@_H`"W$@U;;L9V_@/8$N"2T.9MO@U>&`H- M,`N.G`H"<.-_L`U^ON,MH=TV4Y1>[N9N#@^D<`E6WM-#D.4_'0UFOC%?CNA_ MH`1.0.7TO0$-L`%\\C,S7L5>Z!";'MPRW@B!7L5D;I2E`.9_8`'NL,R4T.;A M_0.E``^_#BI%P.N04`H=/BVGH-P$C@0*<.HN[,A3?0K([N$+C@0>OLA.T``+ M4/\*MO[3RYSFF%``IH[J1$DK4^X-56R4K\X-EJ(([M#=DLCK+0'954SON[(+ M"+X(LS[FH=XG@TX(;=[KA%`$",[K!O_ACOX($"X`T9T-H8XQ&YX)_WWHGQ#= M3Z[NB[S,'L[K:8XS$T\)\5[L_WXKML(-]SX(:`SF8!Z&AL`)GM#@I<#G!8#@ M7CC3=4X+H#+PBN"%)$\$3H#S0,\G1"")XEX)`P\$0=\UH*+TP\WS3ET"07Z2 M#;'TFH()O_P#2D#@"%X`4N_OB;[PD4#R?T#CRSST@T#CF`#S-8\$,R_B-@_@ M*I_G_FWL>M(`W&X+S+WM"[#-7L@+<^\)6]_MLL[J"[!L`)GB+QNP``O.#GA/ MZH_0YD5@`7@_!)0X^97/#BGN"$[P[(/>$`)@Z@U0!$7`^`'OPI2=Z)[_TWCO M\I50`HP/!(#_!XO?^$4`]1:#]WU_^7SO]V=^U6A,*Y"OV\1?_,9__,B?_,J_ (_,P?"8$``#L_ ` end GRAPHIC 13 f30270schandom.gif GRAPHIC begin 644 f30270schandom.gif M1TE&.#EA=P`D`,00`!`0$/#P\("`@*"@H$!`0#`P,,#`P-#0T&!@8.#@X"`@ M(+"PL%!04)"0D'!P<````/___P`````````````````````````````````` M`````````````````````````"'Y!`$``!``+`````!W`"0```7_("2.Y-$P MQ/,HS$"^<"S/=&W?\0"H2C`G`H5J2"SX<,BD2$,(EH@JBC$+@T.FGZPS"P*=-T.0+PZ40U&MNFP& M0[$C`6)7"T,&N\=:MBLP"05#`"YU`,C42WL(+P>#"FL)JA`!FP2CU>4B`[XE M@T8B=0\)VM_F\R)B"B3HH4?>*J*IJ_2H]5(!*5\_$NX.."-BS$:`5P(&D`NX M1`R`(P:AD!CX`($P0@X1I.(6(]P#``TI_\;@J"@C+0@6-SUQ4$.'E0)Y%C[` M@B1!'!NO%@.RW&VR(&!L6*Q^E&`TH3/PI>DD8!Y!&+L=79^L+ID`*90XU( M,'8(#IDJ$HNX/*NQ%R(O=U=AAPFLZ+^QA_`-H-,!1QPZ69>XN21`4N`Q^%%: M6GS$\9W);8/3B4WR@^`O@A'A^^(X@%\B?L[@3?!2E90RI;M6X8#SL_&O'9'& M>TP)(A8!!"`@@/L`>3W#7GS.5%:27^?)\-D3M%SX`%^!43*`A@_4U4R`(W3X M0'_`+""2%2P^09((`0Q@U@P-UC?A$V3-M@X!?L&&6T<*Z$,<-TX+ZCH M'`X&5%JIG#,<<)T7L-AP78XRO$7@#=_QH9((<"Q8*1(@@BI#8*/>0!\!BIZ: G1*`'W0`'IO;]-:6M2+@CG2 GRAPHIC 14 f30270phonga.jpg GRAPHIC begin 644 f30270phonga.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````'@``_^X`#D%D M;V)E`&3``````?_;`(0`$`L+"PP+$`P,$!'B,E)R4C'B\O,S,O+T!`0$!`0$!`0$!`0$!`0`$1#P\1$Q$5$A(5 M%!$4$10:%!86%!HF&AH<&AHF,",>'AX>(S`K+B-LVIM;R8-><6Q-ZGG_2%4_\`>]N!K]M*(N#R6U_VK!.EDN9W3W#S)*\U M_387S]1(I#([.OTDK4/N`$!!("8 MZ5H0CYR0[.X+4>N]U,UU'MT9_IP#7(.;W9>X+)G@!F[!`Z&%\CJ M,Q[4:=O=IJXDE&;=;!D8J,2K)L#7#)!E9K0L/S36L.7%:&[L*M)`]BIY(BUU M,GC*OP0*$%OAP7AN:C=<`(6\FK]Q^VV-T+322Y<(Q^W-R#SZ^NGW=Y-=/SE>7^\X!1VD9GN!3$-Q*AE-*`< M5<[+;!MOYH'4X_#!!80M?&T'02$9;W$;CIH6NY.%$#/#?/:1')Y?TTY\S@B( MQ"$L;^^:V75:MDB::8>+2?U!!G&/<)'QOPDC./;P1[)"`'#,4_!"70'_(O> MT4:_4*9(B$](',!!O]ON/N+2*;/4T5[QFI7XE5WHUS;BUFA><8G`M[G*^DLL M:M0#1-4X9CDB8K=K!CB5(&M&00#:33))%4"2#,2OD+P*\59VW]L558\=8[U: M6_@"`:^&"%A&*+OMKESKR"WKTQQZJ=KC_!:ZE2`L7ZUCS!!F9SDM'L;@ZS%.#BLW,KSTZ=5I(VN+7_)!?^9$QG4HFNUO!H<\@J'<;ETVXN).#@.J]N)#DV M/XE;:6Z8P88E!.DH67+'"N13O.:@D247GMY)(,Z_QCO5G;^`*LD\8[U96YZ$ M$%[DH(5->Y(:-Q"`NH!!5/ZWVX7.V1WT8K):FCZ?XW?D5:%V2D$C)(GP2C5' M(TM>T\0<$'DLK=3:C,([8KD6]PZ)^$"B;+5+J*JX[UG-2_>Q\T!VHI('[Z M/FD@"NY-#QWJSLWZHPJ'`=Y0-]1VT5RW[O6&21-H:_J'+O69C:7 MR!K!4\$^YN[BZ?KF<3R;P'<%9[+'"^+46CS6$BO'F@Z+4FUZV]=1H5E:V;:- M#N"DH,"B(2T('&W8UO2*466W;RFWD@D;5Q8!&?I=7CWK53S1Q1ND>:-`J2L= M/(;J=\Q_4>D'EP0,=$&1@N/4X52MK66ZE9;P-U2R.H!WIYC,AJ\TH*<\%K_2 MUMMD$0?%,R2\<.JIHYHY`%!=VUNRQL8;1APA8&UYGB?>JF_F=5PK@K6[NER"?[J:GB20^K!)!;3.+Z$\U>[=_:"SKW8 M-[T?>[B;#9I9V&DKAY<7[GX5]F:"'=?55A;SO@C8^=\9HYS:!NH<*E4=UZKW M"7I@:R!O,#4[WN_)4IQ[UPC!`^XN;FX=JGE=(>;B2H@$]N02*#@"M-G#VO/"JK&YJYV6Z;&\P/II)P/(E!<1Q.>WN3V1T*FUMCCIP_-0%Q:2YQZ17`? MF@J-^N7&D#3AQ"J&C2045N,OFW9[/FAW('N=A@F-WZ7]7Q39-P,V+VT/,9($.7,Z`<3B@.;*UV+35=+U%$V@I MQ3B"@=K23*)(+B3)O>A_4OF?8VG^/6ZO[J8))(,XEP220)N21220=9FI(?,^ MX/E>+"J22#66WG>2WS@`[O3+[7Y9IDDD@S+Z^?)J\5?Y+CLTDD'#DFG(U.'B"22`J.J?BDD@XDDD@_]D_ ` end GRAPHIC 15 f30270pjuwonof.gif GRAPHIC begin 644 f30270pjuwonof.gif M1TE&.#EAE`!U`-4``+FYN:FIJ71T='U]?6MK:QL;&XV-C2DI*<7%Q5M;6\K*RB4E)<3$Q.'AX>WM[9:6 MEDM+2T)"0IF9F=#0T"`@(-K:VNCHZ).3DU-34[:VML+"PK"PL+*RLI*2DIN; MFZ2DI.7EY9RGM34U-SWJNKJX^/C]+2TA04%/W]_2PL+"'Y!```````+`````"4`'4```;_ M0-0JQDJQCC'B<3A\?H6#A#E\,XH2)(X!*R<0`Q&5Z`Z9`"UR$I\EM`$P(V\6=!02 MC8\Q*?74H$*E1F`)&`&,R.#%L"'#7U""W$DZ&PQ[U6`_Q+WWGU\@."3HQ0Z!)I0 MQK0ITZ4Z7+#0M2N#U:M7=^&R`BS8,#!G=`2(LMQ)X0,$&#@@H>#BCXL2&""3M$7R0U M@2"'"A4G!=4]A$@1`A(U1NA(P2$PI4H1"FL?8"#`)H^,29B`D2SH9)`/]`)X M`?0%0<^/DX%VG"(&APPA3NC??P)UZEZ^5`$,,"R0X<`$"AQ0P8(>>-##@P\J ML$,(MAW0H&X3.#"""AA@`/_"ARD=@I=SGTB70CGGT(3==@M,8H`.WS$6W@B? M;1(''74LXM(I&['WV4%BH?'4"Z'8E\$).R2Y`W_^874?0P+^HX,#(BCH004' M6%D`A%QV6<"6/13P@P8:?G0!"#G;#!``Q^T=*@+,`4VF)W:Y:GKBY(Q)LV?3@5U8Z'B M2.?&L:84I$P:`K7AB`LKW+>#`=12FB233?['*0LBL'KEIURRRFH%6Y[:0X.E MBDO_Z@8R(&"#/QSL<,ZMV16V``00.*"O`Q`LL`,,-I`031T2`,H4&IK@HY,% M_:2PR3,U)#K""^XM!1H;QT(J:;747HNM:5BA0)T&J7ZI*H3?-ABJ@ZEVF5N6 M"JKJ@0(*.&`"=2?(1&^N^3K`,;4.9%!"#?E(0S!F&,TS2QA&/(&"G(I9`-U& M&UW<3,3^/#TMQQY;VE]^F&;`00H#_$`JJJ1^NO*5,8?))98%'/!#S*?^L(IU M]-9[K\\=5VH`!R\(-4VAZV7$GE@X&W`.GO:VH!,"+@$@N<08V_!&(WV=F,'6 MU5;J]=>8CDV`N6ZCG>[)JH)YY;GE8JGE@QK$A(XEM&?7_Z*^E(*>WPDKC#`L M9>XJBM")(5B7ZP(XIE=4"\PS7T,-;Y`@,,//VL>YM9Y_+'JY:+<,:KG?A\GR MR0Z">;K)$"9@@':UVYMO[MGB%X/O$A@-4O`;C9?0"H#UBV>>??`#7H@2#T_` M(2=S>`YF_,*!$W3.M_HB- M(1E@`0#.0PVBV&!R(]`?\11WIP$`0@47.,0,'K"/.$C/$PGDQP)/A"0E60M) M_)&@V`Q`KM*A;66DXZ`3(?2]`F"IB1!2@.(F42][^6Q"O+#"+AQVGCMT``$1 M@^$\9CB).]%`.1_(2U%\F!/(&?]EC2N05*60F$20Q4`$W0O7Z0(YQ>Z5ZH,/ M$H$Y[K2W)8G--3*H@L@`,(=IF)$"C5"C+/AGO.V\,1"'N`$!I4?*G##,3:&8 MRNZ2^+7^@&X%"S#5R;@$+@VJ399G$U\M!6G%*YF/.VW\'P0H%0+5:.$)T7)8 M):G!@PY0`'J62U0)HJ**3FKG`X4(Y0[G2$?I,<]-:[2/:5IYFG&BA@4DRR`5 M:VFRE_%&`1N(YP82Y+H"P',#\@5&3NG@!0'#T0S^X(9*5-(!A M$).F7R9:PZ6Q@']8`5FF'K(:\39$9`Z0Y:A:JB`%*:"U,K73`ARP`PY<>$!3 M<,$9_%*$).31`',2@2Q?IE;A#I;%Q60!#&*D7`87@@\X>`##F@=.';"@.A0M MC`3#IJG[..E)JO&PEM$2@`B@EE0_"'.)3QS3FMJ.Q<55ZA$"0+&)30<,8442 M!!)@WE*%&4L$@,`(OQ@"%`3`!/A0]$94V=\#_CA;1X M42"#`(P.O0RZDDLWT%:X]NPL3LBM/?\HNT#=8IBW&[C0IZXX`3KIC6\AB($] M%".!!I"$.84.QZ$/I6A;=7$`I77TE4<[3A-6N1=#T,&ET> MUV)?%&@XTDU#++[PI/5-(,QS*Y<'-$"GFNS-`"$XKHTL0`%K\"'7I>3U7WR- MJV!O^-A7V=T1FX1L5L`@`1C,TTX!;"?#C):$E!3!@1F)GX"Z+D6$45X@)!$3`(-R$ M*@<'[?3_/@Z,H-8AR<,9/2&]B#GF+SJK700:_7(KXV?F7*NYIES#`A>4 M0`,\'U6#?J!6N9WXK35=\0XTY>\UK!`D$J@!:,0R'5[@F,Z9WCO6M4YYCA/= M821`P`-$8G)/>,+LC5]?WD0:TOAEJC0._-FU4,.:V[K`!`"?);D.$+?;N%2G ML-77;(]>CXO$`^73E#A8=^%``O1590KZ04TKK_6L+X",%-B\'GA0E-]'C$C4 M$;W:1:KA8.?G>ITSH6H(E-L7$`!=#OH6N7839@6(8*816/$7X^N*-,"AJE$! M"!F^X+3\1`"?5J<;"K!QE)<.:I<."^`"-F`!RC5]D+,PC4`CV2<8_]E!.ZCW M,?96&I.B>A-"4,"06X@1`2C5`^:U=^!6`0HP`32!)WRF&C$P"YK`#*<0"K,P M/#46+PZ@`3]@=2A(=`5X@+0S8`&P@'9@#3Q@&3IQ78"2?>C`:'W4?:7U?3\# M/QYH4".P`+3D+6*F5N]7"?V"5*7!`3$@"^4A.?>0*#,H"TU`!`Z4`*[S;-*F M(D#8/I8``0%`-$5($C.P#W.@A"4P@37$1U-F;-XGA7WS-8\D`U8H`%2T*E^R M@P<@=#.U8M.6'3Z3`8C!5"1@!XPP!VV2*$Z&(FE&X._]>$SI#$!LC``&K"<1I#M0&(6MI$1H\0^NH`,W8S:HPU(HB'`JLE<_ MY5/S1&8$8``K``-PT``M@`8K$`$)8!OP]%.N$@*,B(()P"^J:(Z&,83K&(N0 M)2//87;D,(_V,@"L5$[!YG:D<8'BIU3UUQ?^=5;G@B7).%/,B)$:P%83(%.% M`0$HP`+^^`A&L#X#\%;HD`!!*0`Y0WL:`%\4V#X@.91W^(HS<`TER1CQ@)(R ML$C_TR(MR78;Q@O_F9)$!%5WK\`LOE4R8=)2;.6,-!6405E3#K`"^P->AC4* M]4%QT<("2R$#\H(.LG4;$1`#)U"55WDGZ:B57+D(7FD4?1&6!-9&4[:+9*5E M,L)^SCAT0R<`L<4!F5@,-`EG52!K"Q0#^;%PMN%BM_AK MYAA,A^&*#?!4WB"9C$$]?4&;=34)"T!ZF\EA'99OEY(!]`6":;`&&=!:.C@N M,X-P\#<),S5,>)R9_EAK6<%5!&32A2=,C:=`,!3;$4`&L`RK3)TZ(@D_XPC M`!H05">6`*@(`<64`FR@`S(P)Z.3)1/`6BV61R>@@D,@EHW9(MHQG[]9GUWI ME9@S%G*B*RWB)'.E&KH0(`("8U40L569U\C<%,DUA M`2V*Z0!IQFV"V01UAS`WLSDA,`$1D%MRXJT!A2\6BR_^XI":MY7DRJJGA*XQ M<:JO40RB4+),$Z_(-*"\4*^E8`-D@2?"NANT5ZPH]E;2]C!3/V5>:]5:GF861JD)5),*2@E? MGXET:L`>,2@+,#$!`S`=$W4O3WJM'..T0D,";E&?;XJU2JAH3HJQ$/`58]!9 MGB46LA"O34`%HB4$11`0@I("^-*V03E/!O>3KB5M+$9;O2N4J!NWKH67@W=*P..Q%,RC(6JV5<`+E8D-[$9*C`SS57A`@-L4C-)/C'FA@ M!-&2`"$@%C>V>C:'EB'5'S+P=0T0BWZ@O#I2P`>,P&#P"E:#ALJ`./D%!3R: M"ZX!$!?!$8ZS`X7!H`EY>ZK[6G$%7S?!N(DG.09``!@:0BE&N+$E8XF1>#"0`D)@ M`%1Z=E@VJ]^5JYKB,!MKQ\V1(UF[Q]G7M/HRQ$_L+/_)@L1_"B5=X:>@F110 M+`<-@+03X%,7^9.2O%,G0%]V1X,KT%85"`$Q4`,-```R0"UBF`*1\2;@)1.: M,,I_.@1*D%NWFJMC9`-5&T`XH`AY/#6CW,=.&QN`;(:"C#AAY6A:$0QZNK"* MW%2>",8&&Z,`#N1Q,P550XIII6L0)F85Q%P#\AP`(EP!<)8;E@ M6PN$/`0!0+6P&$`TT,XYHA?_M%P=3^L`_(BV+&TQPQ/33Q*,2_`$-FT>,F(9 M#1`#Z>#3/^U:0T=T#L!ZNB`I-T43,8MU!,!:U,P"2;*/T8)NWD%9]Y758>'` M]1%)1MD"%`""'$,L-`HL3`*-0T# MF\C#AH`#/(#'/80UI!S:3IL$?\S2%3--4L&7OD!^^-4*(DPTL(VUTF`#B/K3 MG6:H$?`WK,`"^R);1^*ZHZ"CDO0T88@?!O`"F"1A9B`?38$0,)USF\@#=CS= MU9TC_R7]N]J]+Q_H"J4M//F'!!^86WZ)6_6`6(YC/^G!JG.PT#^ENO!'"2<\ MWZ:LFL,D6R+3"@LQB`.%%H"Q`U0;@2_=ED.""LF-6R40W0N>`]2-QRWQV9%P MUMQ=D\Y".2Z]N=YE#!O^!3^!$PK5`2`AG'=]3_UJ9I7`.T<0`@(=5V#T@N:L M75J#;@,%7IO#`9!SKHY!VLW2TE!A"\<%Y(,6UM4=XH9R%#@HVFG-O2\T.6A8 MO5_[=.[Z$T36`;!X!^7*&".`D?&D4]E1"6-J!`[@E,LW;=])+3V#5*Z4`?6! M)"[0$FP!V3K;58(\/+GUXW6\V8>0Y\ICY!&N+]Q-Q&U`5?\/)3E0X<"ST-Q^ MZ8^]$G9Y(9GQ(*SR)'335@EY*14&D)`<'-2"^U;.^%-B2EM_T1_6?$K2-)T9 M@>HLG']_1@*;-VA'MD-X?))'@0(YD])L^<2;X#S.\T+L(7$#_AB;V^'N4#_2 M)Q)6GL<-X`!:?G!-B@X+<`)C$0/&IQLSE20!@``GT`%`H0,1$(D"0%_D(#]$ M`6'29#4;8<]S[@HF8`'C;A+=@%'*00NC MEGG*%1<,U>^0@P`!($^1G@#](G]CJ`,HT-,;4%,HL`D-\`*+```G`%,.4`S$ M9P-CAW*"W.T=;\]?!?(B/P/D7O+_5G[RV&W6^Y(O85#!SF!*<@#S1LPH!Q,+ MPIQ8=G`#<7$#WZ`\C&$#D!Y/[.DB/@,0*-"E08EU"V`5O&/*@+<#Y'!A8N4" MV^3V6=]5,'3/HQ#NXVYD<33V;(+=_1.\9/#$:Q]$?8ARB>+23[$4:'`&:3L9 MUH`#(W+NS]3WK,6-T!@T3W`">H5PEX!$ZQ.L$>!G)T(5._S#T>6W+-U5/A+9 M/[[#81]'Z,$F#6/V?2,6B!(PBV&2+L,_ORO,`.@#T M\W1P1!??\8(:W)H.'CPG95KP1>#X-GZU67NN?@L$IM=P5!R]2J6`*Q9+P6J- M&>Z3LWYF_P]M`V%I`4R!6&9W"F70,)AI9*M9)`@*!2%'2$@M&Z!(-)J2DD8` M6B0:'F8^%'%N9CH>&AHZ(A0V+"TK)P@B!E9"'`Q"=B`@'$P7!A862D_08F18 M8DY*L"#OO/:03(2&A$8`2W1<4E908@)L$#JH:*X M`&Q(XB(;Z+@DO&KVC(KX?@'9;%H0)&^H%AMY;F@`!!0J+RUIF"!`@`,4#B#L MR'!BAP$#&3B</0<*;$+V$A@,`*D8%'Q6`T*RSXT MRX'ET4A8R+,'`)^F38OP:O]#E%Y,11\8 MY>!G8,<$?P`MB4A`0,")$Z5"<(#(@2V9$VICK*C(`F*'#S<\FEN*TV0@OR50 M#F.1$48+"CP4T6A&8>V1(K6(AW3;TR->+-SC;0H_<^J(4%"HAPR,Q!0P6)`ST( MN$KPXRO`V!,B0&@'8YI(08<#4R@P!1DR<,"&X1HQ;K.0UCEBG5X`.Q"&$2QX MX(;J+I@).UNT6RH]-VQ@9R@)*!"O)J3_HC$/O1IH5(\=\`Z9@H8+>`3A`@UZ MJ&`!%#A@(0"OP`IH`A%$*,B`(GD*0(>?Q'!BI052N(NX9\Q1BC.GO'OJJ3X$ M`0`!#V/B4<2:CIKCECQ(B#-.IUJ@ZH$.>.#AQ2[CY*R&%@#MK"DW[$PDAQY! M2*`'#SP8@`D62AB!``TH#4A)2@O:804=UH#!R!)46@*4#K:,\*-S]G+C/%5I M3$=,PWB(SPIG]AR'BULLR#770=N;Y\X\V>Q2J3P`+;9&]'JMZE`0&"!@T0(* M$*&:Z&J0`((E1:!46R8WT$"`!0PX1H>5=&,!I1`6D&`&'F9HETO'4.6LSF+K ME%/.8L-!LQDU_VG`SM9QZKA#@H$MV",>"WSM8-T.]L256'O]I+%71-+$H-D> M"F"T@`,R0*D$,V<(@(`$EJ2426Y%(&L!,QP*)2X'!!@A"X7=-8X.@8?55=>! M>8[C'#@.4^10-1G3`I*C;M6.YSV&0EB\=AFV&>=A2:!:WCI9I/@"BP7`6.," M>A!!%W`:N,!:`@B8P.0)V*9T@MDB6$65!48VP*,[W>4R:8'C4+J.FP,.G+I] MB7[FQ88Q1)HB/[I-W?_O2&=% M7]W5>^&"QBX0`2O&>W>@P(V,`&`-QKX4`457EB`(`$2R%8# M)F&'?9,S`H"@N+SU!OSF%KGP70[^_]:B1,B$:,4QV@%Q%["!Z:$]+))$WB)' M'K[Y3#L[4X852'""#2S*>QTLP`!H="8<'$H%(&A`!E"!"M21[&UHBYL#3I"- M#JPF!_B[V[]^1X[`]>XRNQL9C..,A#GGR`EJ.VN6\!%)0=XJSRPDU4($> M!*F#'OR!=)11A0N<#P,7"(!#0-$0KF0@(RE82`9BP`$<**``)``!5K:4F7&X MJ47(VYWN&A"KZAQJ)G@IGM$`UD0&'M%V-R3_3]_Z-H\Y2&$&.B``&SU7@`I4 MH(K>PP\7$$-"$#`+`R/(0$4RD):,[&8%$%D!"Q9`@Q_T0`$!F,'YAA/!.;K) MCKNCI1ST2,`^1NV`SU-@'>#D-+P11XF'W"'P'L`!#8#--+B%D%@,0;48`4I6$(,B+06#G03`@$`@0AU>_Z>Z>,9') M<)2H!5D"+F!*R=5E_P(*M4#V30K#T4$"[L/!:&;LH1'MH#-90`-9832C#&B` M$WHR#)\L80<6P``-)O`]#_S@!QZ8Y@96VH%^27""/*NEAYBAF/GXL7A[NF4= M?"H.O-4,:?,@U0QLX(!EG9$Q(=L.E?(L0F0/*T@'!P' MP:.0J@,P&(`([K/0PG8/6C\8K33-"M&'XD<%(()L51GP`5T(`P8NL,$',`"" M'!A``QN8Y@^@*=J'>D`!"5@!`O!"@>CE2G'(DP)L98(%R/6R`TBQ[<_J\/^T M+;5+$0C@`'"AY;W$5O*PB(VH"`Y%`!Q;(@8/?:8($ M:&"\!P!O]T8[6K.B%0:.N(5;[9A'^#*8KKT\'O)PZ[AZ:/$!*7BD8B$ZR>%: MTL,A1JXTQ]L#`6!@/LUX;E5]L-$<,.!\G'PG!1P@`O"2MJQB%>]Q/7"`"01` M3Q-,<3X2HYB[.(]-X['MB>6@A42\TP8#4("5WB:$Z!=!P3VY1G+=;@"[_AJC/VOP`"R+00K(0A"PN MP`$&()&!*%[YH0&>=(\I68$)Z&`&>Q/<#%9> M,U./JV/Q.M,$1$;4!R#P/MF,;-UC8;<.+M"%&T.ZJ8RZ,UGOC.4?$```SSC&PES2`N\R<\W#C MG&J&2M29#IWT1%G`@/E<.`0("R$OO**S0QPQ2L`&S'INL7O]ZRD/\`V\!@`2VD&GMB4SO(-,/!]'!H., MTB`#8>WZO>O\=:][N/(/W4!AY%$5J_CQ>.=`3A^68P(1$'?U=G_JPV5O9^4F MN\[B77F/T9D"PC^660Q@P>HZ+G43;')S3O=L\GN,?_TKOZPB&`VIF.$N&F8S M4N0O2F"\4F_U-,:LB"[\'!#(S.K\],_'\"-[M*L9.,D`X,_W%&\%?"2;2$#K M8/\MW_"-\C*O\E#0`R"`"QXH`-<%<5`%,DHB0SSKRLJ<(MW+X' M\\ZO!-%/`3:IA$IH:[+)`%BGW=(&`CX0`SZ@-38F\Y@O_T[PWE"0K,@+`")! M8>QAS(A(*2`#"0)!#:")F>J.]70P_'BP#7E0FH*D"E-.""FM!P#`!XYLP33J M!6"GXV;CG;))!3B`C:PP_X)P#K,0WU0P"_(A`*F/1!XC.?P"!KBO^[P'Y8#, M#5VM`@+/LZ;P$)$OWWI@`'R`_OS,P1C`!VK`=<2"W6I@D[(I`+3-!.70\JJ0 M_SQ+`_((]*9/3UX,%]KA"`"A$M,0!^GMV*B0%D?K$Y?_#_G,#WP4+9O\#,E: MP'W&(F4&@`B`?FZ_Y1+$&`*W0%,UB3.?WKL4# M!((`9I(!<"`!P(T.'_+.N"X"2<`GV=*`,./FD&=@N@\>&W`>0?$N`<^XXK`$ MOU$(5TD``C/WJI(!),``QB)ND&J=!"`"9$#I".`Q(=(>+X_8)L\#.*"YV))+ MY*C:E*8SU3#.J(PIP=$LB\L0$S'SR(N3-L?!F`4`("`V'<#-%.!M(B`!=``# M!L#>:A$9FW/2[,T#>K(TKL)?A%*!>D8!U9#O)`[/1!,9KTR*.-$;FS'$>L`$ M5M/0'&P$!F`V5B$"-D`!O'(`>M(`OLLT)TT"S\\W=6P#9F`^VC,H;274)*`C M64_')/]J`KW1+(\18_A20IV2`)(LLB[N!0J4``;``!9``Q1T-B"`WU(`I9BO M/^QSU/$.U[T"TWCQP2!VA2(V48#35,YOI,W-,_,P33EQD8CP`6ZQOQ(\#R#SE/= M,03(U5*+5(%8:UU1#S[`,& J\P)8@&0*U619J/=@=``XP`%<=C?1M%-_\`P=]BIPX%>1AH>FAKV"```[ ` end GRAPHIC 16 f30270pcraigc.jpg GRAPHIC begin 644 f30270pcraigc.jpg M_]C_X0OP17AI9@``34T`*@````@`#0$```,````!`)0```$!``,````!`'4` M``$"``,````$````J@$&``,````!``$```$2``,````!``$```$5``,````! M``0```$:``4````!````L@$;``4````!````N@$H``,````!``(```$Q``(` M```<````P@$R``(````4````WH*8``(````+````\H=I``0````!```!```` M`3@`"``(``@`"``*_(```"<0``K\@```)Q!!9&]B92!0:&]T;W-H;W`@0U,U M(%=I;F1O=W,`,C`Q,CHP.3HR,"`Q-CHQ,#HP,P!#;W!Y)E\K.$P]-UX_-&)Y2D MA;25Q-3D]*6UQ=7E]59F=H:6IK;&UN;V-T=79W>'EZ>WQ]?G]Q$``@(!`@0$ M`P0%!@<'!@4U`0`"$0,A,1($05%A<2(3!3*!D12AL4(CP5+1\#,D8N%R@I)# M4Q5C+RLX3#TW7C\T:4I(6TE<34 MY/2EM<75Y?569G:&EJ:VQM;F]B7I[?'_]H`#`,!``(1`Q$`/P#< MI:UE3&,`:UK0&M`@``:`!2A,SZ#?@%))2R=)))2Z2222E))*+W-8TO<8:T$D M^024I[FL87O(:UHESCH`%A9?ULPZG.9C,-[A^=.UL_\`5++ZKU#+ZI;Z0)9C M@^REIYC\^S]Y/C]$#*_4MK<6]@/[DE,?=.S+*;6V5N+7MX(.J[?I^HQW)XT77TT;QH-4[V M1HDIX=GU7RV6S#6U^9DC[EJTXQZ??0]CHJM/I6^$D>P_YRV;1H0J&8W?C/;W M$.!\VG<$E-HJ!"F#N:'>(!^],0DIA"4*29)3%).DDI__T=UGT1\$\IF_1'P3 MI*7"=,$Z2E))TR2EGO:P;GF!Q\RN2M/VCKMQ)!FP@?!N@73Y=0M:*W<3,^$= MUAY6$S(SB]CH+`/TK1R1I*2G4H`:(`A7*[JQ`)6$_/R:7C&=4YUQ'LL`]A(_ M?_LH-_6QSJP-SFDRX`K M6?U>EN.+76`!P!`/>?W924V;)/"I9`(K=&IA4O\`G/B.?L:UQ/8_^8HC>IT6 MDAQVF)]VG_5)*=#&DXU4_N-_(IE-CD.HK<."QI_!3(24P(3*4)B$E,823PDD MI__2W6\!/W3#A))3).F"=)2Z228I*1W2[(>3`(,:<*^\.UT3IH/@DI,QS?3$@$@R#W3.#7>X!S1WA!>[VQ^1*S.--4-.IT`[R MDI'?@FRJQM^H;KMSMPU+1(!4GYN M$[%!%FO@>4E-.SI&)839Z8WN&W<#V_JN^BY/^S15C.8YQ?+2`7:\A7ZWUVM! M#=A`U[*5%;;+0PDD-.Z.>$E-C#H./BTT%Q>:V!I<[DQXHR>$H24QA14X30DI MC"2E"22G_]/=22/*9)3()TP3I*73I(=^11C5FW(L;4P?G.,)*9K&NR6693K* MW!S'&&N'!`T5+K?UC994[%P"8>(?=QH?S&#_`+\K-F%Z&!T_*J'ZODT,@CM8 MT1:P_P#5)*;M,.U0,W&L,V4`.=6`=KO/F(_.38]DB"8<.%I4M86F-9U,I*;G'2(,'Q^E[5JY.$X$E@:X$S!`D?VDU& M**P;':N24B;B75UR3$CQG5'Z8QWJ/?$I*20$TISJFA)2M$H3PDDI:`DGA))3_]3)8ZH!UMC"0X-@` M$&(ERQU<= M?U?.R&Q=O/ MV%KA(,@]PMWZF=3_`&=]8,>PF*<@^A;\'D;'?V;-J2G6R<._"R'X^0W:^LP? M#R>W^2Y19DVTR[5S.X&I"[_JO2,;J=6VP;;6C]':.1_)/[S%Q74.D9?3[2VQ MI`_-<-6N_JN24UAU3&VQ,3R"4!V<'!S*22TF2[L$K'.X+)/F%/I_3+^I9;*! M+6-]!O;M@N#H+9_='YWM6WA?6/I67#1;Z+S^ M9;[?^E]!GDI:JCA];Z=E@!M M@K?^Y9[3\C]%ROI*4DF224__U>9Z@]MN=DVUF6/N>YI\BYQ"!MD*?YQ^].`D MI&&J0$!2X"4)*8D*.W6$2%%WM(=X<_!)2PJ:PDCD\^"(QSF.#FF'-()'O_P"DCWX].14ZF]@?6[0M*YC_`!<9WVCH M!QB9=AVN9_9=^E9_U3EM=5^UY>/?A8%IQ[75N'VD:[7=JV?R_P!Y_P#@_P"N MDIYA_1\0]3?B5YC/1:Z-UG(_X/=]"Q[?ZZZ;&Z9B]/Q_3H'.KWGEQ\2O,^FU M6T6V8>9BOIR*98][72=PYY^EN7:_5R_(/2Z9W&DAS',L.YU;V$MT=_H[/W?S M$E/`?6T;_K'G>.YL?YC%B,#@XK;^M+'-Z_E%W^$VN'^;M_[ZL@I*6DIP2F[2 MDDI('%7\+K.=B0*["6#_``;OL9.T3X)^ZY)))3[-_B MS^U3U';/V>*]Y;]+?[_H?];7?U^GM9Z<;>T+Y:224^W?7C[+^UL;[!O_`&KM M/K>E.WT_\']HV>W=^YN5GZB^O]GZ@+_Z/]H_1$[MV_:W[1[;/S=VS\Y>$))* M?3/KSZ7[=_1\^F-_WNAJ2U7*I)*>KUE)'`%:``,;)4<<`@```@`" M'`)T``I#;W!Y.$))30/S```````)```````````!`#A"24T$"@`` M`````0``.$))32<0```````*``$``````````3A"24T#]```````$@`U```` M`0`M````!@```````3A"24T#]P``````'```________________________ M_____P/H```X0DE-!`@``````!`````!```"0````D``````.$))300>```` M```$`````#A"24T$&@`````#0P````8``````````````'4```"4````!P!P M`&,`<@!A`&D`9P!C`````0`````````````````````````!```````````` M``"4````=0`````````````````````!`````````````````````````!`` M```!````````;G5L;`````(````&8F]U;F1S3V)J8P````$```````!28W0Q M````!`````!4;W`@;&]N9P``````````3&5F=&QO;F<``````````$)T;VUL M;VYG````=0````!29VAT;&]N9P```)0````&7!E`````$YO;F4` M```)=&]P3W5T)E\K.$P]-UX_-&)Y2DA;25Q-3D]*6U MQ=7E]59F=H:6IK;&UN;V-T=79W>'EZ>WQ]?G]Q$``@(!`@0$`P0%!@<'!@4U M`0`"$0,A,1($05%A<2(3!3*!D12AL4(CP5+1\#,D8N%R@I)#4Q5C+RLX3#TW7C\T:4I(6TE<34Y/2EM<75Y?56 M9G:&EJ:VQM;F]B7I[?'_]H`#`,!``(1`Q$`/P#?=.S+*; M6V5N+7MX(.J[?I^HQW)XT77TT;QH-4[V1HDIX=GU7RV6 MS#6U^9DC[EJTXQZ??0]CHJM/I6^$D>P_YRV;1H0J&8W?C/;W$.!\VG<$E-HJ M!"F#N:'>(!^],0DIA"4*29)3%).DDI__T=UGT1\$\IF_1'P3I*7"=,$Z2E)) MTR2EGO:P;GF!Q\RN2M/VCKMQ)!FP@?!N@73Y=0M:*W<3,^$=UAY6$S(SB]CH M+`/TK1R1I*2G4H`:(`A7*[JQ`)6$_/R:7C&=4YUQ'LL`]A(_?_LH-_6QSJP-SFDRX`K6?U>EN.+76`! MP!`/>?W924V;)/"I9`(K=&IA4O\`G/B.?L:UQ/8_^8HC>IT6DAQVF)]VG_5) M*=#&DXU4_N-_(IE-CD.HK<."QI_!3(24P(3*4)B$E,823PDDI__2W6\!/W3# MA))3).F"=)2Z228I*1W2[(>3`(,:<*^\.UT3I MH/@DI,QS?3$@$@R#W3.#7>X!S1WA!>[VQ^1*S.--4-.IT`[RDI'?@FRJQM^H;KMSMPU+1(!4GYN$[%!%FO@>4E- M.SI&)839Z8WN&W<#V_JN^BY/^S15C.8YQ?+2`7:\A7ZWUVM!#=A`U[*5%;;+ M0PDD-.Z.>$E-C#H./BTT%Q>:V!I<[DQXHR>$H24QA14X30DIC"2E"22G_]/= M22/*9)3()TP3I*73I(=^11C5FW(L;4P?G.,)*9K&NR6693K*W!S'&&N'!`T5 M+K?UC994[%P"8>(?=QH?S&#_`+\K-F%Z&!T_*J'ZODT,@CM8T1:P_P#5)*;M M,.U0,W&L,V4`.=6`=KO/F(_.38]DB"8<.%I4M86F-9U,I*;G'2(,'Q^E[5JY.$X$E@:X$S!`D?VDU&**P;':N24B;B M75UR3$CQG5'Z8QWJ/?$I*20$TISJ MFA)2M$H3PDDI:`DGA))3_]3)8ZH!UMC"0X-@`$&(ERQU<=?U?.R&Q=O/V%KA(,@]PMWZ MF=3_`&=]8,>PF*<@^A;\'D;'?V;-J2G6R<._"R'X^0W:^LP?#R>W^2Y19DVT MR[5S.X&I"[_JO2,;J=6VP;;6C]':.1_)/[S%Q74.D9?3[2VQI`_-<-6N_JN2 M4UAU3&VQ,3R"4!V<'!S*22TF2[L$K'.X+)/F%/I_3+^I9;*!+6-]!O;M@N#H+9_='YWM6WA?6/I67#1;Z+S^9;[?^E]!GDI:JCA];Z=E@!M@K?^Y9[3\C]% MROI*4DF224__U>9Z@]MN=DVUF6/N>YI\BYQ"!MD*?YQ^].`DI&&J0$!2X"4) M*8D*.W6$2%%WM(=X<_!)2PJ:PDCD\^"(QSF.#FF'-()'O_P"DCWX].14ZF]@?6[0M*YC_`!<9WVCH!QB9=AVN9_9= M^E9_U3EM=5^UY>/?A8%IQ[75N'VD:[7=JV?R_P!Y_P#@_P"NDIYA_1\0]3?B M5YC/1:Z-UG(_X/=]"Q[?ZZZ;&Z9B]/Q_3H'.KWGEQ\2O,^FU6T6V8>9BOIR* M98][72=PYY^EN7:_5R_(/2Z9W&DAS',L.YU;V$MT=_H[/W?S$E/`?6T;_K'G M>.YL?YC%B,#@XK;^M+'-Z_E%W^$VN'^;M_[ZL@I*6DIP2F[2DDI('%7\+K.= MB0*["6#_``;OL9.T3X)^ZY)))3[-_BS^U3U';/V>*] MY;]+?[_H?];7?U^GM9Z<;>T+Y:224^W?7C[+^UL;[!O_`&KM/K>E.WT_\']H MV>W=^YN5GZB^O]GZ@+_Z/]H_1$[MV_:W[1[;/S=VS\Y>$))*?3/KSZ7[=_1\ M^F-_WNAJ2U7*I)*>KUE)0`!`0[H?@!1`U@! M"IOY`%'0=@$&3W4`4IV4``$`\=//`%7X@`#N^X4`5E([`.PC/0!6J_@``0#? M3=T`6/FM`-KQ*0!9K2@`UI1U`%I@H0`!`,S8&P!<;CX`R3V>`%U(*P#%HQX` M7B(<``$`OS!7`&!OT0"_,%<`8&_1`+\P5P!@;]$``0#-RM\`7>(#`-?']0!? M5YJ`.I-Y@">>VX``0#AQ0L` MHHG4`-YK2@"D%SX`VQ&(`*6DI@`!`,X;R@"KFC,`SAO*`*N:,P#.&\H`JYHS M``$`WLQE`*GF4P#B1H4`J7_%`.7`I`"I&3<``0#R11@`I_\N`/:1G0"GI7$` M^MXC`*=+LP`!`0I[G`"EODH!#``'`*5^,@$-A'(`I3X8``$!&NMZ`*/7)`$: MZWH`H]@"CUR0``@$P6>(`H6+Z`3(O.`"A25`(DS#P$QSAX`B3,/`3'.'@") M,P\``0$<3X8`BDT7`1@SC@"*0$4!%!>7`(HS@"!+^@`Z6M3`(+6]`#GIBL`A'X!``$` MYX7,`(47V`#FDPD`A;&N`.6@1P"&2X,``0#A]9@`B$Q.`.#22`"(S&4` MA+%'`-[,90"$L4<``0#;8G,`<$+8`-MB`1-UP0!HIC\``@$D-HH`8[WK`3(?"@!A5I(!,A\*`&%6 MD@`!`32F9P!?R2@!-*9G`%_)*`$TIF<`7\DH``$!-3@/`%7KK@$U.`\`59'Q M`34X#P!5.#,``0$SY#$`3:AN`3/T8`!-0=X!-`2/`$S;3SA"24T'T0)/3``` M`"`8``8`````````````````````````````````"``````````````````` M`````````````````3D````!``````````````````````````$!,E*2__>+ M`P$R4I+_]XL#`3)2DO_WBP,``0$I+77_^)D`0C78?_ZUY(!!Q%S__L7?0`!`0*[T__[WSX!`.&V M__PW(P#_!YO__(\(``$`^)M:__XFBP#V_<3__GYP`/5@+__^UE,``0#QU%#_ M_U8L`/"YW?__IA0`[Y]I___U^@`!`.QD/@``S;D`ZCEO``'%;`#H#I\``KT> M``$`Y=F[``/$S0#DR5X`!,1_`..Y`0`%Q"\``0#BJ*0`!KOB`.)L'@`'TXT` MXB^8``CK-0`"`.(15``)6Q,`XF('``H:V`#B8@<`"AK8``$`X:)?``IJP`#@ MG!@`"Z)?`-^5TP`,V?\``0#>P?L`#8G)`-Y(\0`.F74`W<_C``^I(``!`-TD M9@`0L,\`W,F<`!%0G0#<;M0`$?!K``$`VUYW`!/_R`#:QR<`%2=M`-HOUP`6 M3Q$``0#82Z8`&OV?`-?2F``YX`(=.!``$`UC4"`"*+1P#5Y$\`(TL-`-63G``D"M$``0#4_$P`)7)A M`-10T``G,=@`TZ53`"CQ30`!`-,L1P`J&/$`TL=F`"M(E`#28H8`+'@U``$` MT?.1`"U?[@#17$``+D>G`-#$\0`O+V```0#.26X`,V82`,W08@`T;<``S5=5 M`#5U;@`!`,NOJ``X_%8`RP0K`#I;Z0#*6*\`.[M^``$`R/>@`#Z*GP#(:F8` M/\(^`,?=+`!`^=T``0#''8,`0SDL`,:XHP!$(.0`QE/%`$4(G0`!`,/.*P!) M]Q<`PS;<`$L&P@#"GXT`3!9N``$`P,^&`$_-2`#`3&(`4.3Q`+_)0`!1_)L` M`0"^:#$`5&/<`+X-:`!5.YD`O;*>`%835@`!`+U-O`!72O<`O,"$`%@BM`"\ M,TH`6/IP``$`NCKL`%NAGP"YA5D`7&EB`+C/Q@!=,2,``0"W>,P`7C#4`+:: MWP!?0'\`M;SR`&!0+0`!`+4YT`!A)^D`M/U*`&$WY`"TP,,`84??``$`L7%K M`&&GP0"O@R(`8=>R`*V4V0!B!Z0``0"KQ-,`8A>?`*M5W`!B%Y\`JN;G`&(7 MGP`!`*FN,@!AI\$`J.1P`&&OOP"H&K(`8;>]``$`IZ&E`&&WO0"G,JX`83_B M`*;#N`!@R`<``0"C&94`7>CI`)_`)P!<$7P`G&:W`%HZ#P`!`):5*P!7LD<` MDK4T`%:3,`".G!T`56.-``$`BY-A`%3SL`")5&4`5,N\`(<5:0!4H\@``0"% M=](`5,N\`(1G=P!4:]D`@U<;`%0+]@`!`(&'$P!3U`@`@)3[`%.D&0!_HN(` M4W0G``$`?1,S`%,D/P!\/UP`4NQ1`'MKA@!2M&```0!ZJ]T`4G1U`'H>HP!2 M/(8`>9%I`%($F``!`'EI$`!1K+0`>$Z=`%'$J@!W-"H`4=RC``$`=I+%`%)$ MA`!UR04`4=RC`'3_10!1=,4``0!S0VP`4#4G`'%]?`!/W4(`;[>-`$^%70`! M`&Z([@!/76L`;3'T`$]-;@!KVOP`3SUT``$`:@KU`$]5;0!I-Q\`3WU@`&AC M20!/I50``0!G]%,`3[U-`&>CH`!/I50`9U+L`$^-7``!`&5XT0!/17(`9,,] M`$]%<@!D#:H`3T5R``$`8TX!`$]M90!BX``0!7/S\`3:WO`%:\&P!-=@(`5CCX`$T^$P`!`%7>+@!-/A,`58-E`$TV M%`!5*)L`32X8``$`51Z&`$TV%`!4KY``31X<`%1`F0!-!B0``0!4?1\`3480 M`%0$%`!,_B8`4XL&`$RV/``!`%-LPP!,MCP`4QP0`$RN/P!2RUT`3*9!``$` M4M5S`$RF00!2>JH`3)9&`%(?X`!,ADP``0!2-`T`3&96`%'90@!,7E<`47YZ M`$Q66@`!`%&2IP!,9E8`42W(`$Q66@!0R.<`3$9>``$`4+[1`$OV>`!06?$` M3!9N`$_U$0!,-F,``0!/_R@`3"9I`$^0,`!,'FL`3R$[`$P6;@`!`$[XX0!+ M]G@`3J@N`$ON>P!.5WL`2^9\``$`3E=[`$OV>`!.&O0`2^9\`$W>;@!+UH(` M`0!-1QX`2\Z$`$ROSP!+QH8`3!A_`$N^B0`!`$O;^`!+QH8`2ZF)`$NFD`!+ M=Q@`2X:;``$`2V+M`$MNH0!+""(`2X:;`$JM6@!+GI0``0!*4I$`2]:"`$I2 MD0!+EI4`2E*1`$M6J``!`$JW<`!+3JP`2E*1`$M.K`!)[;``2TZL``$`27ZY M`$M.K`!).!T`2TZL`$CQ@0!+3JP``0!(OQ``2U:H`$A:,`!+/K$`1_51`$LF MN``!`$?7#0!+/K$`1ZZT`$L6NP!'AEH`2N[)``$`1V@7`$KVQ@!'(7D`2O;& M`$;:W@!*]L8``0!&J&\`2N[)`$9U_@!*]L8`1D./`$K^Q@`!`$7HQ0!*WLT` M1>C%`$K>S0!%Z,4`2M[-``$`14=>`$K>S0!%1UX`2M[-`$5'7@!*WLT``0!$ MXGX`2L[3`$2P#P!*SM,`1'V>`$K.TP`!`$0.J0!*MMH`1`ZI`$JVV@!$#JD` M2K;:``$`0[/>`$K>S0!#@6\`2I;E`$-._@!*3OP``0!#E9L`2C[_`$,(8@!* M+P4`0GLH`$H?"0`!`$++W`!*1OT`0E+.`$H?"0!!V<(`2?<7``$`0A9)`$GO M%P!!G3L`2>\7`$$D+P!)[Q<``0!!3(D`2=H`2;\H``$`0`F\`$F7-``_S3<`29\Q`#^0 MKP!)IR\``0`_/_T`2:\K`#\-C0!)GS$`/ML<`$F/-@`!`#Z4@`!)CS8`/I2` M`$F/-@`^E(``28\V``$`/:Q^`$E/20`]'T0`27\[`#R2"@!)KRL``0`\05@` M2<\B`#O(2P!)SR(`.T\^`$G/(@`!`#J%?P!*#Q``.A:(`$H/$``YIY(`2@\0 M``$`.6L-`$H/$``XY^@`2B<&`#ADQ@!*/O\``0`X/&T`2C[_`#@>*`!*9O,` M-__E`$J.Y@`!`#@>*`!*MMH`-[E)`$J>X0`W5&D`2H;J``$`-RP0`$J6Y0`V MVUT`2F;S`#:*J0!*-P(``0`V8E``2E;X`#81FP!*3OP`-<#I`$I&_0`!`#5P M-P!*1OT`-3W'`$HW`@`U"U<`2B<&``$`-0M7`$H7#``TSM$`2?<7`#222@!) MUR$``0`TDDH`2;`#%U8@!*QM<``0`Q=6(`2J[> M`#$:F`!*UM$`,+_.`$K^Q@`!`##>$@!+%KL`,&\;`$LVLP`P`"8`2U:H``$` M+Z5;`$M>IP`O2I(`2W:@`"[OR`!+CI<``0`NT84`2[:,`"Z`T0!+KHT`+C`? M`$NFD``!`"WI@@!+KHT`+:S]`$O&A@`M<'8`2]Y^``$`+4@=`$ON>P`LXSP` M2^9\`"Q^7`!+WGX``0`L&7T`2^9\`"OQ(P!,!G(`*\C*`$PF:0`!`"MN``!, M7E<`*VX``$Q>5P`K;@``3%Y7``$`*O\+`$QF5@`JS)H`3'90`"J:*@!,ADP` M`0`J7:,`3*9!`"H7!@!,KC\`*=!J`$RV/``!`"DD[@!,MCP`*&];`$SV*``G MN<@`3384``$`)WU"`$U.#0`G+(\`38WZ`";;W`!-S><``0`FE3\`3?W7`"9$ MC0!.+0!29'P`'"XI`%+L40`!`!O)20!39"L` M&V1I`%.<&0`:_XD`4]0(``$`&L,"`%0+]@`:?&<`5$/G`!HUR0!4>]8``0`9 ME&,`5+O!`!EA\@!4\[``&2^#`%4KH``!`!D;5@!5>X4`&+9V`%6C>@`8498` M5L`5EM!`!9/(0!6 MDS``%?17`%;+'0`!`!7+_@!6TQT`%:.D`%;C%@`5>TH`5O,2``$`%0Q5`%>* MX@`4NZ$`5Z+;`!1J[@!7NM,``0`4)%(`5]+,`!/GRP!8"KH`$ZM%`%A"J0`! M`!."ZP!8>I<`$T9E`%BBBP`3"=\`6,J```$`$L-#`%D";0`2N`!9LC<`$4X%`%GJ)@`!`!$':0!:`A\`$,#, M`%IB`0`0>C``6L'D``$`#_<,`%M9LP`/L&\`6Z&?``]ITP!;Z8@``0`.\,8` M7(%:``ZT0`!Y`%T!,P`!``WJ@`!>&-L`#8^V`%Z0M@`--.T`7PB1 M``$`#-`-`%]P<0`,G9X`7\!8``QK+0!@$$```0`,0M0`8)@5``O\-P!@__8` M"[6;`&%GU0`!``N-00!AI\$`"T:C`&(OF``+``@`8K=N``$`"NO;`&+W6@`* MKU0`8VYN``$`"6R)`&963P`),`$`9I8\``CS?`!F MUB@``0`(U3@`9NXA``BBR0!G9?L`"'!8`&?=UP`!``?M-0!HI9<`!XA5`&DM M;P`'(W4`:;5$``$`!JIJ`&I]!@`&18H`:S3-``7@J0!K[),``0`%(0``;5PC M``3D>0!MV_L`!*?T`&Y;TP`!``1-*0!NVZP``^A)`&^3=``#@VH`<$LZ``$` M`SS-`'&RRP`#`$8`_J`'=)$@`!T:<`>`C5``$``:E/`'H0-0`!E2$` M>I`-``&`]0![#^4``0`!@/4`?"^+``&`]0!\YU,``8#U`'V?&P`!``&5(0!^ M[K,``94A`']>D0`!E2$`?\YM``$``7;=`(`&6P`!J4\`@-8<``';O@"!I=L` M`0`!Y=0`@E6E``(81`""U7X``DJT`(-55P`!``(VB`"#W2T``GTC`(1%#0`" MP\$`A*SK``$`!!JY`(94:0`$./X`AN0\``170`"'=!$``0`$[I``B&O#``4A M``"(TZ0`!5-O`(D[@P`!``6N.`"*`T4`!@D"`(IK)``&8\P`BM,%``$`!MS8 M`(M"X@`'5>4`BWK1``?.\@"+LL```0`(/>D`B_*K``AZ;@","J4`"+;U`(PB MG0`!``C5.`",*IH`"/V1`(QRA0`))>L`C+IN``$`"=M^`(U"10`*-D@`C7(V M``J1$0"-HB8``0`*KU0`C9HJ``L*'0"-JB0`"V3H`(VZ'P`!``L\C@"-PAT` M"[^P`(W:%@`,0M0`C?(,``$`#&LM`(X*!@`,LT``0`- M<70`CI'=``VCY`".P!I`(^)D``.$MH` MC^%T``$`#@C#`)`Q6P`-])8`D*$X``W@:0"1$18``0`-PB<`D<#?``V9S`"2 M`,P`#7%T`))`N``!``U=1P"2J)D`#33M`),8=P`-#)0`DXA3``$`#.0Y`)0` M+0`,VB0`E'`+``S0#0"4W^D``0`,Q?@`E8>U``R[WP"5UYP`#+'*`)8GA``! M``RGM`"61WD`#).'`):_50`,?UH`ES_``,I[0`F%[4``S% M^`"8WJT``0`-4S$`F;YG``UQ=`":%DL`#8^V`)IN,0`!``Z^5@"C``G[R-``$`$2_#`*"L0P`1J,X`H60)`!(AVP"B&]```0`34'L` MHU-O`!1,J0"D0R4`%4C:`*4RVP`!`!AOV0"GNA0`&;*E`*AAX0`:]7$`J0FK M``$`''[;`*FA?``=*ED`J?EA`!W5U0"J44<``0`?&*``JOD2`!]]@`"JN28` M'^)@`*IY.P`!`!_VC0"JF3$`((W<`*K1(``A)2X`JPD-``$`(7_W`*KQ%@`B M`QD`JSC_`"*&/`"K@.<``0`B?"8`JZ#?`"+K'`"KL-H`(UH3`*O`U0`!`"-% MYP"KF.``([[S`*O(TP`D-_\`J_C#``$`)"/4`*OXPP`DQ3@`K`C``"5FGP"L M&+D``0`E2%T`J^C(`"7+?P"L,+$`)DZB`*QXG0`!`"<$-0"LF)(`)X=7`*R@ MCP`H"GP`K*B-``$`*.AG`*RXB``J278`K/!W`"NJA0"M*&4``0`K>!8`K5A7 M`"QT1P"MB$@`+7!V`*VX.0`!`"WSF`"MJ#X`+OG?`*W@+0`P`"8`KA@;``$` M,@*:`*Y8"``RN"T`KE@(`#-MP0"N6`@``0`T2ZP`KD@,`#3B_0"N0`\`-7I, M`*XX$P`!`#8'A@"N0`\`-FQF`*Y`#P`VT48`KD`/``$`-LE&P"N<`$``0`W]=``KH_W`#ANW`"N?_L`..?H`*YP`0`!`#DXFP"N M?_L`.:>2`*Y_^P`Z%H@`KG_[``$`.C[B`*Y_^P`ZF:L`KG_[`#KT=`"N?_L` M`0`[',X`KG`!`#NJ"`"NC_<`/#=``*ZO[0`!`#R<(0"NQ^0`/,Z1`*Z?\0`] M`0$`KG?^``$`/7H-`*Z'^``]RL``KG_[`#X;S``$`0_!E`*]GLP!$01@`KV^R M`$21RP"O=ZX``0!$V&<`KX^G`$2E^`"O1[X`1'.'`*[_TP`!`$0BU`"NK^T` M1"+4`*ZO[0!$(M0`KJ_M``$`1&ER`*Z_Z`!$NB4`KM?@`$4*V`"N[]D``0!% M470`KO_3`$7RVP"O+\4`1I1!`*]?MP`!`$<#-P"O5[D`1KR9`*\7S`!&=?X` MKM?@``$`1:P]`*['Y`!%ME0`KJ?O`$7`:@"NA_@``0!&.7<`KI_Q`$9-I`"N M:`,`1F'1`*XP$P`!`$9U_@"N*!8`1IY8`*Y0"@!&QK$`KG?^``$`1MK>`*Z/ M]P!'`S<`KJ_M`$:A@"O!](`1_]F`*[?W0`! M`$@QUP"N[]D`2*#.`*[?W0!)#\,`KL_D``$`26!V`*[?W0!)DN4`KN_9`$G% M5@"N_],``0!)SVT`KL_D`$H+\P"NW]T`2DAX`*[OV0`!`$J9+`"O+\4`2LN< M`*\/SP!*_@P`KN_9``$`2TZ_`*ZWZ@!+GW,`KL?D`$OP)@"NU^```0!,2N\` MKO?6`$R1BP"N[]D`3-@I`*[GW``!`$T`@@"NW]T`36]X`*[?W0!-WFX`KM_= M``$`3FNH`*[7X`!.J"X`KL?D`$[DM@"NM^H``0!/#0X`KK?J`$]\!0"NM^H` M3^K[`*ZWZ@`!`$__*`"NG_$`4&0'`*ZG[P!0R.<`KJ_M``$`42W(`*Z7]`!1 ML.D`KK?J`%(T#0"NU^```0!24E``KQ_)`%++70"O!](`4T1I`*[OV0`!`%-B MK`"O!](`4[-?`*[OV0!4!!0`KM?@``$`5&CS`*[GW`!4U^@`KM?@`%5&WP"N MQ^0``0!5H:D`KM_=`%7\<@"N]]8`5E<\`*\/SP`!`%:3P@"O%\P`5OBB`*\W MP@!778(`KU>Y``$`5YH(`*]7N0!7ZKL`KV^R`%@[;P"OAZH``0!8H$\`KY>D M`%B@3P"OEZ0`6*!/`*^7I``!`%FY#<`K]>1`%_"(@"O[X@`8*`. M`+`'@0`!`&'W"`"O]X@`8L#'`*_7D0!CBH<`K[>:``$`9I-$`*^'J@!G%F8` MKW>N`&>9B0"O9[,``0!IQ%@`KP_/`&JV<@"NW]T`:ZB*`*ZO[0`!`'!M(`"M MF$(`<(`BTS$`*?Z```!`(M6V@"G\@,` MBZ>.`*?B!P"+^$$`I](-``$`B_A!`*?B!P",-,<`IZ(;`(QQ30"G8BX``0", MM^D`IS(_`(T(G@"G"DH`C5E1`*;B5P`!`(UWDP"FZE0`C>:+`*:R90".58`` MIGIW``$`CQ]``*8BD0"/9=P`IA*7`(^L>@"F`IL``0"/_2P`I<*O`)!-W@"E MHKD`D)Z2`*6"P@`!`)">D@"E8LT`D-$"`*5"V`"1`W$`I2+A``$`D5X[`*3J M\@"1D*P`I-+Z`)'#'`"DNO\``0"1S3(`I,+_`)(3SP"DJ&0`!`*7;M@"G^@``IFCO`*AIW0"F]B<`J-F\ M``$`J.Z'`*J)-0"IPET`JR$&`*J6-`"KN-8``0"L7",`K+"+`*UB:0"MD$4` MKFBP`*YP`0`!`+$ZM0"Q-F0`LEEN`+*.NP"SDB0`M`9%``$`M8=I`+9I1P"V M:&\`MVTX`+=:B`"XA.(``0"X=/P`N7R5`+BQ@@"Y_&T`N.X)`+I\1P`!`+E[ M0@"[:_T`N\7P#AMHL!"//^`.*\T0$**Y\``0#D/"0!"XLQ`.5" M:@$,VLD`YDBP`0XJ8@`!`.A+)P$0F:(`Z6^O`1%Y7`#JE#D!$ED6``(`ZU/A M`1+`]@#L':$!$TC+`.P=H0$32,L``0#KI)4!%>?]`.[!?`$7%Z``\=YF`1A' M0``!`/>`Z`$8WQ(`^6\P`1D7`0#[77H!&4[O``$!`TD,`1K.>@$%B`D!&SY7 M`0?'!0$;KC0``0$*NY,!'#8*`0QC0`$<-@H!#@KM`1PV"@`!`0]V$P$<)@\! M$D)'`1R5[`$5#GX!'07)``$!&V:1`1[-/0$=5-L!'S4<`1]#)0$?G/P``0$N M">\!(G0<`2_%R`$BE!$!,8&B`2*T!@`!`3)]SP$BQ`,!,GW/`2+$`P$R?<\! M(L0#``$!,J8J__=XG`$RIBK_]WB<`3*F*O_W>)PX0DE-!]($9F%C90````3@ M``8`````````````````````````````````"``````````````````````` M`````````````"T````!``````````````````````````$`D0M)`*Y"Y0"1 M%X0`K@C``)$CP`"MSIX``0"6EA\`I4#/`):6'P"E0,\`EI8?`*5`SP`!`)?4 M(P"C@QD`E]0C`*.#&0"7U",`HX,9``$`F[+@`*/0G@"=.D8`H]">`)[!K@"C MT)X``0"B]@<`H[.,`*2ZF`"C7%@`IG\H`*,%)``!`*K+^0"A["4`K;84`*`X M(`"PH#$`GH0:``$`M7_*`)KU3@"X7:L`F']^`+L[C`"6":X``0"[VHX`E7A7 M`+T]0P"3U[$`OI_Y`)(W#0`!`,$;_P"/Z```PEH"`(Z>D`##F`@`C54>``$` MQH(D`(H=A0#':HD`B5N\`,A2[@"(F?,``0#*/"\`AK5Z`,L860"%UI\`R_2# M`(3WQ``!`,TF2@"$(IH`S?8Z`(,FK`#.QB@`@BK```$`SXG<`($;<@#/TT`` M@.L!`-`\4^`-"6\P![((4` M`0#0NZ4`>MRS`-!9S`!ZF-\`S_?Q`'I5#0`!`,]E*P!Y/`X`SKGN`'B#]`#. M#K$`=\O;``$`S3*'`';9H`#,8I@`=CZ8`,N2J@!UHX\``0#*5*4`=,2U`,F0 M\@!S>T0`R,U``'(QU``!`,:S$0!P5PP`Q``!`+4V9@!E(OT` MM$''`&3RB@"S328`9,(9``$`L7Q;`&1-T@"PK&P`9`!.`*_.3`&".DP"IRQT`8&?1`*FRI@!@00\``0"9ZS8`5<]L`)GK-@!5 MSVP`F>LV`%7/;``!`($8'@!-J?$`@1@>`$VI\0"!&!X`3:GQ``$`;6EO`$F[ M*`!M:6\`20=A`&UI;P!(4YD``0!"@#0`0FUK`$*`-`!";6L`0H`T`$)M:P`! M`"HU2@!%A'<`)XQC`$6$=P`DXWP`181W``$`%SPO`$ES/P`4.'X`2_IW`!$T MS0!.@:\``0`&OI4`5^K%``53;P!9XBD``^A)`%O9C0`!``!<:P!G%A3__Z;8 M`&@UNO_^\4<`:55A``'_^?I!`'4AN__Y^D$`=2&[__GZ00!U(;L``?_Y^D$` MLZ)D__GZ00"SHF3_^?I!`+.B9``!`!99-P"U+>H`&!\F`+69R0`9Y14`M@6F M``$`3,D&`+^VIP!,FZ,`OI<"`$QN/@"]=UH``0!MEM0`N:R&`'&JX0"X(0$` M=;[M`+:5>P`!`(W<G)E4WI.5&-Z:V,Y M9"(_/B`\>#IX;7!M971A('AM;&YS.G@](F%D;V)E.FYS.FUE=&$O(B!X.GAM M<'1K/2)!9&]B92!835`@0V]R92`U+C`M8S`V,"`V,2XQ,S0W-S7!E+U)E&UL;G,Z>&UP/2)H='1P.B\O;G,N861O8F4N8V]M+WAA M<"\Q+C`O(B!X;6QN&%P+S$N,"]R:6=H=',O(B!X;7!-33I$;V-U;65N=$E$ M/2)A9&]B93ID;V-I9#IP:&]T;W-H;W`Z-3AE9#=C,&8M,#(S9BTQ,64R+3DT M-F$M.#`Q.60P83(X93)E(B!X;7!-33I);G-T86YC94E$/2)X;7`N:6ED.C4W M.4)$13(Y-48P,T4R,3%"1C$Q.34U,3DR-$$U-#0Y(B!X;7!-33I/4E05$-$:6=E&UP.D-R96%T;W)4;V]L/2)!9&]B92!0:&]T;W-H;W`@-RXP(B!X;7`Z0W)E M871E1&%T93TB,C`Q,BTP.2TR,%0Q-CHP,3HP-RTP-#HP,"(@>&UP.DUE=&%D M871A1&%T93TB,C`Q,BTP.2TR,%0Q-CHQ,#HP,RTP-#HP,"(@8W)S.D%LH6&AXB)BI25EI>8F9JDI::GJ*FJM+6VM[BYNL3% MQL?(R_^!^I_I[SJ%XO_`(7W[WA9K\<_U)/Y/T_XCVE=Z;RVKU_MG*[QWMG\;MC;&$A^XR>:R MTXIZ2FC/H1`;-+//,Y"I%&KR.QLJGW4IV=_-SV#0RUN,Z;V%7[SG684U+N/< M]<R+;P_FN?*S%YR26EJ=@4%,LA` MPAV=1FD6,!;F.MJYYZN9E;@ZY@1?Z>QZZ8_G&9K)U=)0]N=;X#)8]JA:>ISN MP\C+B,Q#J8!Y_P"[F8J*RDK$A2YT13QM);TF_'NXOK/N'K+NG`'T[6IZ3?Z?4_[W_@>2/:>=.2+7M^/S^?Z$FWN'*EAR/2;D\_ZWU^GN%(EA?_ M`&U_P?Z'FWN-H.O_`!_I_L/ZW]__T+6WYO?^A_I_MN#[R6_'U_I:UKG^I]XG^G^\_[#Z?[W[1'8>]L3UOLC*6.">NDCM'38^FGF!BCJ*ZI=8T+`@%KV-O>L_WMV#W#\Q> MP(WW9E:B/;M%63R;5ZYP-3)/MO:M),L<9D,(>%,GG:JC?1-6RJ\KN2L85./8 MH;:^&.*VCMV.NWEM'<$\U?%XJ."CHEJIXI];&19*"EETTTL<,9E(F5-5_2=5 MO9*.Z.GL/MFIR%)1P9W)XH2S1U+14D$5=B'#N10U44LP>U"?JPL`QL;\7*+F MML0[/CIZZ#IQ&9@0.*VDGC4@Q%690=2'6%(V>^K. MS<#W!L'!;ZV_IB@RM,OW^-:0RSX7*1V%=B:F0QQEVIWY1](\D3*U@20%75(; M-^3;_;?4?CCVPNG)M]?][_XV?<"1!]3?_6`OQ?\`U_J/<1TX/!_UN./S]+?2 MWN)HY^BZ?I?C^O\`O7O_T;^;"X/^'/^V]X2.?P?]YXM^/=6O\TSL&IP/6NP>OJ"1Q/O;<%; ME:ZEC+G[S&[?CIJ:GI)(8K/)%/D*\L03I'B/&K38L/PLVC3XFN2NSLTM77UY MJ3&ZBD2*GE]'V_A6G1V5P/TB]DTV'NV_%X2DF28U=-'6T\GB>2*9=<;,EAZ" M[J-0%F!##G^O'L*>S/@_T_W5))7O49#:.X:E97FRV)1/MZAY8O$WF@!BU22Q MA5+@ZF"\W]UK[X_E,[OILZ,5CY(-U[;28UKU*5[XHU^I)?MJ=IZE_%%)$;W4 M(`Q/+`%C[1/7_P#+2[4VQN=:K<0VUCMMQ9"!HRCBIKH*&*4S!94H9O!4U%0J MA96#R!6;BRC3[L0ZJVI6]#=O8?9%/DXAU[VQMS,U.'H)&UK%O_:R0Y"=:41Q M'[:JRF'FE=PSI'(J_0R*+G$JD!!('!^GXO_]?WP"$FW^('^)O_0>]?GYE;RJ>YOE[7;5I:N)<)U=3T^P M\8DOJIGR<+-D,]4N&$J,\N6F=&(%M%,J\GV:SXZ;&DQ.2@DCIZF1($$C5%3` M2I%S+*:9VCB5Z7TW6RQ_7A.+^[,MNT`=E_:9J1X4\%X=061CK$E@P5T,:_CG M4?9C]M;$7*4'W%%0PZ80LKL'/FX&LE8WU_H'XM<7L+^VK-X9(UGB#%E6X821 M1!HVY8G4/4JJ1:_Y_P!C[+]N^FU4[!9/)(@:1F1@0`MB3:VCG2.+#GV5/LV, MSTNRUCR;CW#:/Z\'Z M?0GZB_X'^'N-H&O_`'WTO_M[WX]__].VX$?[#\DG\_\`(O?08?2_^M]3_L3^ M>?>>/_;D6_V/^%O]A[F#FW^-O]Y]\FN#8_Z]A]/]M[\IN1^?S?ZGCGC_`%_; M5E]S8/;7VFB:IJ/%3P))4RK30KKDTJ=*^][JM MG_;T<*".GCHX8A"2T8TA`C%KDGZPDL?Z$KQ;V9#:VZ\!59&AQJUD,E1/)%#` MD.LKYRRB-99%`C4E[\'BPL"/9PL+M[._:M48_P"W_AZ1EJRFF44ID4>-P8Y2 MR&I9-)`TWM_3V&6]3X#73D:(DBCC,8+%!+/"9?1Z5NX)O_M/T^GLJNY(:V=) M8XI'I[J\!D0JRJCH;N0K`AG8^K\CV4ON05E+L[-FBAEE=1&)8K&24!)%URM' M]/(K#5[-@!JB75]3'&Q((/J**6-^+F]_;6T?^QN>#]?]@/I[B2H?I^K_`(G_ M`%R+_0CW">)CP+_^(XX_V_O):XMR M/^*?3GZ^\>DC_;CZ7/\`L?\`8>P6[1VOCMT9+!2Y6L@PM)M223,'<4VC7A@T M.B&JB1CJ<-5S(DJIZI82Z'CZ56_Z$&W/W'NWLO9F3I]H96ES"UN)RF*I?#29 MG)UU*M3,\QTQR/B,B[,TB.DD,@DNT9<7]JZH^1O8YSN0Z]I>J\\F_P##005T M];/0SQ[&S6$B2`9.2DJ*2K>OCS%#531D1*&IY8I3(LHT^,AAOKYI=W86&/'K M\7]Z0U,N0EPR;KP"Y7&2Q9!A'##-#5+6^-(_+,&%3,II@P(-"VF.*08.*6I?+5JI2I/)4XVEK*>"?*4$,,EO/!Y(@2H MU`D>R]O]?Z@6/_`!'N&\5N>!>]_P"A)%N2?<-X MP2?QIL#];7/^W]Q?%Z_J?ZWO_L/I_3W_`/_5MK0_C_#CD^^U-R1?CFW^W-^? MK?W+2X_-^>#_`%'X_P!O[F(#>_X^G^O[DI^3^/\`?7]XY"`3_B?P;'_$C_8^ MT;F_/39O$UD?VP@JWHJ:66KB$U)!/1Y&&LH:NK1XY5-%#5:(Y^+B*8L/T^R@ MR-45^?RU?41KCJELI4R3P+)'*D;Q3-&\>N(+%(B2`E#_`&A8\>QMCR^*BQ6+ MJ9,725-93_=1R2Z*>*NFI:J.TZF>0+]PK-"NI"W)M:_M/5^,Q]DBY-Q^?8#[[Z&GSN%CQF-BJ,5MD;QP.X M,\*FLAFIOI,UDYLWN63`X&CW,=%1G,9729[%B#-8V6>*>G3<-&D9--,\94.& M=B0/=M6/H?X=C<=B_NZG(OC<;0XYLA5LDE77OCZ6&C-;6/'&B/55AA,DA4!2 M[FP`X]\GB.F]N1^+6_!%N;^D'W#DCL.1_3@$`?[`\6M[@NEA8"QXM^?J?S]+ M^\'C.KZ'Z7M86_I:][7]_P#_UK9E;^E[W_Q-OK^??E;ZF_\`:/\`6XN;?GW, MC?\`J?I^?\>/I]>/?K_0@^ MT]N+'9'*8R*'&M3-4Q5<,K4M;))!1UM*6M54D\\,,\L'E2S*RHWJ4`BQO[)Z MTE;!ELVYJ^FK)J*H&YZ#'SY+$F`00 MM5T[RT;2G%215:O9)(U1HB"'/-E1OON;J.OV]LZNP6XJ;)5LIQWVN-5#]U5U M:5++'214]I#-YU`4EE^C'Z*+^UM!4[>W+229>CI9,()4;_)HJV>G%/(@(>)8 MH)6I@1I)U:3J(^GT]J/JG!4N?W%'E*BIGJCL]7JJ2.=A4*V1JEJL?!4ECI;5 M30O(R7%]94_V?9G(X2`>+,?I]0?J#]?]>_ODU.>;?CDGD?7_`%_J/<26G'^) M_I:Y_P`;_P"/N*]-_L#_`+#_`'G@7]Q_MFU_B_\`6_\`A_3W_]>V`,"?K]2+ MVX/'^'']/?$.+VYN#_A_7CW-C8$_ZP'U_H>?Q_4GW-C!-C^?]>UP/];Z?7W/ M0-?ZW^EOZ`#\^^Y4LH/UM[;*_)XS!X_(9O-9"EQ.%PU'593+Y6OF2FH<=C*" M%ZFMKJVHD(CAIJ6G1G=CPH'NLNAWU'E]W9G+PU$.>>HP=5CZFG2DAH)W)JE M;6TUC;E0"^5%`=][.HVQM'M#=M-5?:B*#;6ZJ2DSM'55D]7$U/68?=<.'K:2 M2)*4.RM-J*R#2&-_9-4V'M?']B46TMI=5[S3>V25#_%DJ<548C;\$DP$PRV; M&X*RGP\:JC$0HC3!5L$^@]F[K.M=V[2PK"?(^.F#":`RRB>0PR(%,3S^*G>5 MC9K.$0N!?2+V]F!^,V(JHS.:$07))/TN>!?D?[P![Q^1/Z@_P"']??M,3\$`?XV^I%OP+'CWC:G0VX% MK\\6!`]\?MH]5[&UOZ_[Q_7W_]"U?4/Z_7_C7OI7]7T^GT_XW[;%;:ADC9A$S&:L=%,H1!X_9]/DGT MQ5]%=HXV##0A>N>PMK8+M'IW*T<;/C,AM#/T%(\V$1[Z!4[ M3Z2`>W[K_<$=;!3M-4M0U=.8_NX5:[RTCLMY4N426'P@VMSZ>>>/9P,5@\56 M[0JN`Z4&)I07ED9N395]3J/9X=K[?Q^S]OXK;F+5GH\73^,SNH6:LJ9& M:2LR-3;ZU%;5.TC?@7TC@#V]3(9C9;\V-_K^1]+`\^XWVC7/JL!_47OS8_FW MO*M.5YO<_P"L;'^IO]>1[S@?@W/X/XO?_8>^/C6_Z>?]C?\`XK[_`/_1M0]] MCZ_TY_VW_(ONI<;225V1K*3&T,"EIJVOJ8*&CB"C46EJJF2*",*HORP^G MLI78'\PCXK]:M54U7O\`?=V3HF>.;%;$QT^>E,L5]47W[&CPXO\`ZK[@K]?= M6'R!_FT]F;LFK,5TMBI.KML&*2)M?JL!4&M\4E#@O2;JE-JD7ZF4 M_05/3[FW%OG?5;O7>FYLSN[^?C!49+KC;>?R$X%3B=Q;9IXCMQ,N\8J*H[3W[L2>BIJC4I_?I_,HUTX'NM M+,;9W+U_GLQM7>6'K]N;@VW7U&*R6-RU.]/78C)TTICJJ*0 M,LB$HX8S,=VWG]B8Z:/,0U^8VS+(VBLQJ35$U(L@\;PY5*8/445HR%$Q1H?0 M"6!]/MQJ/D[U?+CUHGRT0QXCO4&LR<2UJ3.I90"TOKTLHX(4\$&U_8,9?NAL M]A&P^W9ZF/;M)45$\N:JXI:9:HROY?LJ&6:-34N]KRRQAHHXN`Q8V!4.O?YF MF!^/GRV[L)7-C,,V_MO;@@I=P8V.@#29#"TFV,K2QXY\=#DGUL3 M4P3SR("255`+;>E_G;\8.\13TVV>QZ#;^>J%(_NIV"L>SLZ'NH"0-D)SA\B6 M+67[:KE9OP/9QD=5@25`KQ2HLD$L95XID/`>*1-22H0>&4D?X^X333&_I^I^ MMK6_UKCWX23?VO\`6'%OK_MO?)3)<7U6!^G]3_6XY_'U]\^;_F_^QO?W_])5 M]I_S.NE]B5U;C-IX'<'8M12`H,C1U5#@<))+HU7@DKTGR=3#&QL6%.FJQTW^ MONN#L#^:+\A=Q5VD"WU]@4IJ M*AP978%E!TA[1HN@:BP*D"^DDD?4^\];`3&JAS8@@J>%]+*JOK4G2EC:X'U_ MV/MBCR=#@FI7DDB835LL.J2"F81D>7244_J('/L0: M&6GFI$J=8,$B+/',DJ213H[@ZEF#%#&PL5:Y6W//O81_X3E?)67J#YJY;I7+ M5?V^SODQMDX:C@J'">#L38M)E,]MBL"&WIRF&DR-`;@.\KP_T%]N7YD_!/8O MRCQS[CQHH-K=M4-'#346YY8)7QVXJ&C60TF$W53P$/-#"9"*>L16J:4'3:2+ M]KWK-]M?'SM7H/=5=M[=>V\MMS(*U0R4M8@?'Y2&%K&NP>8B,U'E\<3;3)"[ MA00&"M=063<5;D9FD@&V*0S1C3_E%#!,&=M-Y`)(2=6H7#&Y`^GL>/AE\1LU M\FNWZ*7>4=?%U;LF6DW)O^ICBFCH*Z*DF2;$['IJE`*<9#F^5'R6J:.EBA.+^0W;\*T9C587QC[\S;10>(*$6"*QC10!H4#3 MP![!V"6EJHTGI8E$>0&6Q]FCZB^67?/3*QT>Q> MQMQXK#J4O@*R2'-;;*LRL3'BXK<42D++F]F3G`94I:YDFQ58:W$U,FGG3&]*K#Z$?3W9QU-\K.ANZ8*7^Y^ M_L339J?QJVT]RU$&WMRQRNH/A@H:^9(;'^OO!I.O5J;_@MS:_O_]/7?>"H$*2("58EA+%Q8:D*7!^GI`X)L;^\TN.U MI&0^I2L88.H)6ZG\WYO;_'CWZ/&H5.I$)/T(#,2JLO(`](TDW^IM[>TA2)0J MJBBRKK#C2+J;W9KG20_T'^M^?<:>D5FTH002+DJGU9O4S6+(0+_3_>?<"'$1 MU,TU,635&L7G:6/@"9G*%4U>H,(CS>P(M[SX[;=!@F\6.%0(:J8SS4[32?8+ M*?4DM/2:S34LCAB6,8&H\GGV87X\]K9CH7O'J3NK`5/AS'4_8>U-[T1!&B:' M!YFEK,A0R!M>J&MQZRP..04E-_?U;,#FL=N3!X;<.(J$J\5GL5CLSC*J)@T= M1C\I1PUU%.C*2K)-35"L"."#[#KNOICKCO78>6V1V;B(J_"5%/434V3CE2AS M.VJT0.L>?P&8TF7$9.@_6LHO&P&F57C+(=;SI_X==8]H=U[AV)_LRVP\EL[" M[CR.*PNX:B&IQNY-YTU%,L40VYC:ZEHMO9N>9D914TV1J:=_&942165/=[6+ MZ9Z]Z#Z]IMD=>X2+![;Q(EG6-I6J,AD\A.%;(YW.9"0";(Y?)-&OD<@*B*L< M:I&JJ/FA_*N@_C'R7^3]7"-%4._NY;@R766)M_[@D2.4$H$.D^E@"/P>/H67 M;\-?3-5+)&S1(Y22$DAC(`S%%!**GA0`F]QR!^/:B\LW*DJ%*@V/I9M+,=(( MOZK<_G^ON9!4375AJ3\DFXU*`WU:^G_$'_7X]J.DRLT3QR(65XG$H96*2"1+ M#4K7X/!Y'-Q>WL[?37SQ[XZA6CH:7=3;MVY"`G]V]Z"3.4446KUI15CS+E,= M+9=(\,Z(#_9/NP?_`(=-X MCY"JZ=*JJD@%M+,%+!6U'@`BWY]X_M%\H`4$%E"D6L5;_5EE)T7)^HX_WGVU M$"BKZ:J.A8:N!<=5#6=,?W,@DH922!]*I"M_P9#[41A#1Z7U!]+!5)!8E+-^ MD$*3I^M_K_K^\L,:.CLPCTLA1B;:')4:;J"IYUGZ`CC_``]_21_DS=XGOG^7 M'\<-PU=7+69O9&V*CJ#<4]1(99GR75M=/M*EEDD:S,U7@:&BGN>?W?;'_,LV M;\B/EI\5^_\`I[XL;HR6RLM%L_ST&0HY1CYN_)$EJ1G>J,'GX&-9MS:>;H:2 M6AJ\K'H^]J9DIU)HC4--J"?'^JDRG7F^-OY7HO?G6.^,%@LA034^UMT4L,^6 MS.'+T[8"KHIJ3'97$/CZZ"2-II#*TSK6CN'>F5?RMH1USF8FW`GJ-PNJ+)C\^R\5,FB1[1 M7\BM^E'$A"DKJ]+&YM;FQX_P]X6M%]O(KLX>ZZF6TJ2(PXU:!Y%L0/Q8#_8^ M^@S^A!(?2S?IL66QL+N3_C_B.?\`7]R8Y0&`OZ>`'O8KK`NI``(TE/\`;_3W M+BJ&&JSA[V)0"X50;AUTCEK?[#G\>YG\4F\5[-K^E^+?6WDM]+WY_P!?W__5 MH8I_\_/];_8T6NW^J\DFC7IX+Z/U:N-(']1:=3ZKMX_&39;'Z.3XQI])N%.G M_$\_3W@-[)<17NE[EKDVX_4-*O>]_K^/>/U^0ZM%]1M8>D'6;Z=1%S?_`%N/ M?`>7U_I)YOY-"C3?B]M2_JM;\V^OMGRWB_A]5S8:80-(4CRV?QM%9E7_`#]K M`?FUC]/;]3_G+_`#01U^W\Q3=2_#=MZP]@_P!SJ8_*N?9, M>[:CJP;G,]8M8E12[?DI<(W9"[?,#9)J>851D72RB9F=;1OY,;;A/\O7#IV3 M%CUV]'V)W5_H:J'GW*^3J^J&WQEVQ'\8H]V4R9C'2P9_^*)2?OU2RX_QN/&/ M1[T_?YE(VXOSO^08VL]3+C#E=O&N:LB@@G7-':N'_B<92&:HC=5<)9RRDN6N MHL+D%J]/F;1YM7F'ET?6_C3E-/'BU?75^;^_1Z_MZ>UM?W4^@'Z:-*^?2SVX M\EK<7O\`[#WF_:\0_1^DZK?ZC^S?^UY+_P"\>XZ^70VG4?2;6\0DTW'BUZ;B M][VMS?\`QO[F+YM8XO+J&K22!:S:OU`K?WD_=U?1[^3_`%3_`*-/_!;>.W^P $M[__V3\_ ` end GRAPHIC 17 f30270sief.gif GRAPHIC begin 644 f30270sief.gif M1TE&.#EA[P&"`.9_`+R]P#H[/`0$!:FJK.GJZFEJ;,#`P.3EYF!@8*2EJ)B9 MG/___[^_OW!P<-#0T/3U]>#@X(F*C.[N[QT='GEZ>]K;W;"QM.SM[MC9V]'2 MU)R=G]35UL?(RLK+S<7&R=76V+"PL,C)R\#!Q-/4UKBXN*:FI[6UM\S-S][? MX)66E\W.T%M;6XV-D'1T=DQ,3<3%Q^7FY]?8V='2TM#1TIF:FZVNL.+BX^#A MXF9F9_O[^["QLM+2TZ*BHY*2DX6&A][?WX.$AH*#@]S=WX"`@.OL[?/S\_#P M\)"0D*"@H/CX^./DY75V>(&!A-_@X5Y>8%!04"\O,%)25.OK[.?HZ4!`0/#Q M\49&2,_0TMW>W\#!P\/$QN'BX^SL[=S=WN[O[_+R\X^0DG=X>LO,SN+BY%96 M5^_P\**CI??W]_'R\KFZO;&RLY^@HG-S=/'Q\I>7F+BYNWY^@)24EJ^PLMW= MW[:WNKZ_PKN\OK*SM%=86.WN[MO;W?#P\:&AHY&1D^+CY/___R'Y!`$``'\` M+`````#O`8(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI]_ M!A""#J-_#@Z"!J>IH*ZOL+&RL[2UMK>XFT=#1PY#(`T0($='(']##@VYR\S- MSL_0T=+-OW]&HT@00X+;3\K3X.'BX^3EYIM&"$=&UMO;QW]/1X=%]?;W^/GZ M^_S]_O\``PH<2+"@P8,($RK$E^.%(!@PL@X!NW?N0"`QY*>CQX\@0XH< M2;*DR9,H4ZI.LB!5+=O:XLN7++B-/ MWHP+L^?/H#UJYDQZ5NC3J!N/+LW:5>K7L/6N;DV;4^S;N,_.KLW[4N[?P"'W M'NXIN/'C27<37^X(N?/G+)4SGYX(NO7K(Z53WWX4NW?LVKES_TX>>GCQU,NK M/WX>/?/U\'^W=T\\OOW8\^GWOL\?=7[]M?4GX&?_`=C:@`A:5J"!#P$UQ$6I M(#'$$*MLLU,A"6:H&H.D46B$`P:`4"$A0UR(H88H#K8@A^:`\`0[H52XRRH3 M&'5BBCAJ10`,*:W(8CD&'+&*`:N8XLZ#A@BAY/^23#;IY)-01BGEE%16:>65 M6&:IY99<=NDEE$I((0$!/)1`P`4P3'G&CY,A88`#\Q#YQSI&N),.C(/DJ&=2 M,'B!Q@X])!!``5$(L$0#(<`@P:*,,LK%`FQ*!@$"1D$P"D7SA&*-,=WMZ>E* M,%SP@!\9%.!$`!,PH0`=)W!01P`L!&"%$TM$L<2@`C`A0!F1HO?IKR%5(442 MQ'[QP!X,I-"``%8PP8065V#0Q$<57,$&&Q&8$4$-9J31;0(/]"H>L!H24`4, M/^#@!@$?*8'&"5!$P40`&D`10*T):-#!"-.^Y*.X=I%[GQ)>/.`%`01XP`(- M4#CA[!(2*.%'J#0H4,#_$A8G4(`&'&10@5J63#BA(^_\`8&$F5HS02(E%X)G M*`A,V(JFB61#"!)4F"+1($;8^(>$%+9C8\^<"1S?!5*8T*RL5DS0@@5:>`"` M$S7L<`$$)C@!Q,<=5<"U4@6VW$C)2-3YS<\(L(Q(RW+"TPC1@ARAS8-PEGS$ MV6X+8I$!1MU=M-'E(:TT"TZP4$,-)V2`@4<8U+%$`1NP`(46_4(5-HG<_-'` MW:-,*.$@\R!CU,B^#+%1S-I`L,XPR$!`1.ZV M_X7<#*_-(.YH_H>(M4NDS#?>9`X/VS&O$^+\JMAL<\D40<'I^'G[@T54-X@& M7"2`BCD>=I*G`0$4H`-82,D'/)`!KOPE1`Y``IQ45Z<.(BF`&!E?V^P&#S>E M;1M'<),RWA&_/[S.=`%L6XSP%[X)C2)EW.A%YNXV!"KX3'X7XJ$/-Z-`ZR2O M#RS00@3[1T;J.$,JA!`$]H MPP4&I`0BS``*%BA``)C@A!?H@0OM(D`("B4Y$_A@";[\)<"V$YM0.2$!A%L" M%*1@`P)(S#H'FX(7OE"%"U3AGE]H`AD4P(09*.$#"EA"K08PAF42``L("$`= M/&`!)UA``#CP(Q/'F9[/7(`#-CB8'Z1@``TLH00C8*@"G"``.+BA!#*802N# M,X4-`&`"$QCI&S2@@>4IP($#^)H?FJ`#%U@A`7PXP#,!P($M=.T#S]L01=]S M&1A\P00F$(``+/"$#)3@<1[_Z!<6.E`'%FCL5@)H@`?F\(65PD8)/%##!#8V MA`1`(0$"F$`"'`J&"HI$"2,(0P%4!3D"+96ICDD>&GC@A@DL`0`):"@+!*"` M*X2D"1C(0`>DE@"W.LP$9CT-P90AF"$````$`$BYO).U4;LDB4#`1S4T4@2R0(`^IM M3H.`$^HTES9!&.$)B*30;^D;-Q`@0UR,N4`-!F6K!*1A!$F)0104<(#Q7D:> MD9N`_W?KX%CX_`4&*LBPAC>6J)0..($"F96)'0MVSQTM!6&K M'($!(D`&:29`"PBVSU]4X-TN>]G+7JBA&3.7-HI4\L29&Z.`VC7I_MU3`&,$M@T`083`$I7%"!MM\J M`BT=V0(%^'I3064` M]B>Y@`664`?H?J0)5R@!$_2NE0Q8`0$UUR8-T,X$"ORY7418^:J`/I(-*$`# M0(>!#&J0`1^\80F&+4`--D#]'&7^K[G8Q2!WO3YBW"X9A3B!$RQ.@PWP$@`J M`(D2&.`L&HR!`#<@/86#`C97>%,P`@E``008/?&6%4I@!PJ0`'@D!1NP!&$P M02RP!"2U!"HP`U*`4`K``A5V$DK0`59``ZT$`WPW`0P3*RL``!*U)^>'?K=0 M#8TT(O#0_T*$(`$5<`!2P"XP\`&2DP4@'!^`#"4!\4\!+':,%#H,J>D`8:1!D2S!H(K$%&%!^*B$&2L@"8K". M`A,VP_A$Q"",*A0*0B*-FD,D#?!#BM!UB2!#BP`[%<(W_X.1A."1AS!CF>*1 MUQ!`0"$4W#`SXZ@W-@1%0X"2ZQ-B.I$*^EYDY`4_Y0`/F`"']`%9/D51%+-SFA$9#!``:^S77@80#'#R M=&99(67SD42R:VQ&FT12#!;2,U81.NI#C+0Y)[V&1D&C7JLV"/*0,N=#0Y:@ M%$J0`!-P+^=D6(PYF?)&"`RP`.19GN99GNOUF=!I7SGAD,3(EQ+YF\=`$;,I MGU%$(;GF"R%"#"466_@98VXD"AI)"@W0D<,(#[TF(K`V.];P!#Z3/MHPG.PC ME@%T!`X*G>%86\-S#)F$@]>I%`30!'I0`BR``P'PG>`9'W]QF9O9HKV)0&W# M*<.XC'GS/D2R_Q$99*-\0T/XR6H/&23]J0H_.BILW M:@TQ0PC(.2=NHE_H%3LVXEO?($83(F?6H*3U)3)>6@DI6J8],F]2N5XFY)X0 MN:`3V7YX%@]X60S(V9HF-`S&L&L^,9L@4)L"M&\.P$AGDPXAPF:[5@QI2HA\ MNFMXBIPZ5%LE$TKUJ0PMAEZ#$#/L)9>9\Q-_&@P_LXP6V1QF.JHD42#E M]T2Q%E\8R:EE:3*MH#,=REM2F8UD]#(3,9JTA\8>U`)++T8RN@:W@ZO\'V@J( MY1"NX#JNY#H.YHJMZ)JNX;"NU]JN[KH8\#JJ\CJOT5"O]HJOK*&O9GJO_$H9 M_IJB`!NPS#"P!&NPJ82P=%2P"ML9#/N4#ONPMA"Q$DNQNR+QL.'L)%Z%.S M-GNSP**R.;L(+G(1,_('-7((O;BT3-NT3ONT4!NU7?*+0RL-02*-1T*-0$LN M0ENUKO4F_%E)#V(1Y+BU,NBUTC`I&X$IA=2L96NVYH>V8`&W?BBW;D&W9VNW M-X&W>:NW$,&W>M*U?AN8@(LC@CNXD5"XAHO_N'BAN"ARN(PKJHZ;(9`;N8PP MN1I2N9:K")A+N9M;KIV+()K[N8<0NJ)+NNIJN@(RNJC;*:I['ZS;NH+PNOT1 MN[)+N_QANZV+N[`KN^#`N^'IN_D*O*,FO,-+O.JANZB+O.NAO"M;)WV3*2(6 M1W_`O,EKO*[P"R#2"V]D.A1IO>7AO":[ER$$!3CTL^`+'MCK"KM0G1;26D00 MO_([O_1;O_9[O_B;O_J[O_S;O_[[OP`X` M?PH;XC M/`E^,R=4B9IRX\04T6(;>@D:5$EET\1I4U^U<,5$01'?T)ZWX,4_`\;OQ<6T M0,99_`THY*VOH,8OI@QB/"=0I$E/L,284#*Y0PIT@V8CA"@J(3,@%=`N-O$8M9@N1'`H[!B(S1!&+C,<9F6?Y-F-;A#N9("*6 MJ9O;(">&[`JDS$B.S&.RL,JF?,*W`,NMG)NV0,M"*C\#9YV_`K)K*2N'`O/+#_`4X/HI]``VY`,'W0)I<.S52 GRAPHIC 18 f30270sisf.gif GRAPHIC begin 644 f30270sisf.gif M1TE&.#EA,@*"`.9_`/CX^)B9G%%14?3T].GJZO___^7EYG!P<-C9V["QM*2E MJ'I[>X"`@`4%!9RX.SL[9:6EZ"@HC$Q,9V>G]?8V145 M%6IJ:ZNKK>'AXLK+S9^@HH:&A["QLIJ:FUI:6J6EI]S=W\#`P.OL[?/S\_#P M\.#@X)"0D-#0T*"@H+"PL+R]P(V-D'5V>/#Q\6EJ;(&!A./DY=_@X2\O,%Y> M8-W>W_?X^.OK[,_0TL#!Q/+R\[Z_PN'BX^_P\$9&2.[O[Z*CI=S=WO'R\L+" MP[FZO9&1D_/S](^0DJ&AH[*SM-'2T[>XN65E9G-S=)*2D^WN[MK;W8*"@V=H M:>+BY(.$AJ*BHZ.DI-SX'=W=_#P\;N\O*^PLN+CY/___R'Y!`$``'\` M+``````R`H(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MH8-#1X))I7])28)#J:NBL+&RL[2UMK>XN;J[F$@,2$D,2P='2TA(2W\,20>\ MSL_0T=+3U-76G\)_1J5*1PR"WP+-U^3EYN?HZ>KH1B!(1MK?W\I_`DB'1?GZ M^_S]_O\``PH<2+"@P8,($RI/.JC4NWKU]1>@,+'DSX)=^_B!-C*LRXL6.]AQ5+GNSHL>7+F+]& MILRY,]/,H$.+CKG9L^G)HU.K7BVR].G7?UG+GGW9->S;UKMX,.;Y.Z]/#3QZ-&3 M-\]>5_KWVM>WGU\+OGWI\NGKAW6_O_+\^P7HB7\$\@:@@`AF4N""LQV8X(.4 M,"BA:@Y":.$C$V9HEPI;%%#``"BP5.&%\Q7%P$:K*,$``ZU\`U0A&L9(E@I@ MD$"""0[BT8D,<02+1+"P/^+,,KHY$Q;7''%`$]4:665 M5P#@81YZF-%``@%(D`89'TIY!0D>INFAD&P6LH0`\/PQ1(N^M"+!4DT^J6=+ M6U1@A15=5"#HH!68@($(`C31`!4*:/&"!UHPT4`9'U2*P1LU]'`!!0'<<$6; MH+*"1"MS_H&*/"<:(L2JK+;JZJNPQBKKK+36:NNMN.:JZZZ\]NHKK1PB*D`4 M%#1!Q1=0-.!$`Q($`$4"-4S`0:LO<-'I%Q0XD6@5SB:`QAFAMJG$$$G<4^H[ M1LC33IR#[.EN2B%LD8("H6`3.BEQA!#$#2L#C32M0,R+U?02`L08-"53A!+%1-.`` M%W&(9,4+"GS1.=J6T-U(VXDO.8A/#^!]X>W/$ M_SO&+'-$!VV7FNX0#W]C>S*_S`/W4'3/0SWCTL=NZJB,@S"\(L5#CQ1"8`8J M-.$#`BO,850TC#<%Y7P0!-S@OI>[<0SE(]X8A#RF]P+G0`ZB+_X_/<-)(RK&?,8X1_01T%"P$Y. M26J;VH;R![B!`QCYTZ`0`8!,&``6!CB2KSP`"?P(&>- M@9X&C3`$*X*OC5D,H_:F5Z09!OU)U,?\)Z_M(JN!&#,))KQU_ M&%YE$8:4Y;M2@T6$&"!*BA@!V%KPK(ZP"$53&B`!GC`&,#@SY-(H00'T-H= M"(`#)W"N-O39)CPG`1H5`&T+`.B"$Z"@A03&`6P)@(*B-O"!*54I!/?!PA@V M@`-%-6`"&(C!``HJ$A0\(`"6PUP#T#`ZRSQMHNRY#!8&$((EV*$&&6!`T5HP MS)!\U%K+DD`/,O"`"`Q@.F#_,).4P#`".NQ``SBXP=&8P(8F*$H!)^C"$T2B M`BD8<`([J)06M-!3GP(5987Y4>0&```R9"!9`NB6`UZ@DA7L@`4*<)8<&E"" MM2X'"Q^P0P,H`(4;9(X*4)!`$[+%@A>4S`H>V$$-*$"!!(2``"IH`168L(/5 M_/2NWA&,%`R@!!E8``:%#I(M$V<2(8=JJCI"#\![=RA6]Z/-2&`/!GC"5\H\E= M5(H;/;P)O:@``4UPP'6GL@/+Q2!$34'!%0IPA8Z!V2MZ?8(*@-"$*#"A!4GT MSV%0L($ZV_G.=7Y!1*BXE(\HP1?P<'(C!Z$]399J"<&`1Q/W%^%T9E-BV4/2 M'&LGO_%%C"M4KC);@#@2*:#`@#D.BQH"X``P-`4,,3@O$&IP`0[\P`97V,(3 M3$T3*:@Y"2/(`1D.X(8W9"!S3DB`!N),H,-L@`G(3K:RD_\-A@F*4GK^PT@V M!RV]3Y:J&9K48@L'880#E'..24`2_FK7#AUB&`1#Z(!28IEI!:D%!5[``)L' M0``_8.$$3)@`67@@@`G4FR9B1@"CHA"%)@Q+`I:E@`M$\.^8A``+-5B4$SCU M!2ZC\&N M/ZO2YNR+8[O=+18I@"@#"1``%1P@`!4\@`HM4(L5M'5FD6`!#$*$UQYPH``H M,#4.*\A"I9C@K&5MH.$MB=P(OL0$+DSW8`$[,<=W+,<,RN7/_38SE"5(``DZU`#8%6*X!7%#[5]@0``C$ M8"0A*`$$!IB2)V!``$X0P0I2$@>;O2#J*B&`%THPK`#L0/).,C`A@N&1P'_$ MR;4WQ:+362YN4^P`<5*PMX'_X-GC,!4'6`;RE9^N*19^,6$)@04$``4UA-H/ M'W6!`\3`EBGT@`IX`'/F%46!"6"!Q2(90`(2R]25>.`+"4!_25#P!#I80%$! M*,/&,_;:26!:=G9C*HS`;L_G"*2`37'28:W08?'T%2JP!J26!;#7%C:06'!@ M;R5`<&IP`HJ2``Q`4U(P!@\06->W$A.0*$V'`EB`>"I@=#W0@6%`;"K3?P6H M%;Z`3.C6_T''`#_,H$<^H@-6L`(>,`)-YQ(K5@504(*!$0;E!P;P!04!X`=6 M,`&XA'`:X`4A$`)!(`!<,'I&Z`"N]S$$H`,B0`6@)P&9TP`ND`7[)S4T6(-8 MD0W1E"3T($9Y0A)2$`020%D2L"P>4(0L@04+H`#Z5AA3<'$CP`0W4(((``%, M8%8-D`(G$``UL&4K@0=5\`5^D`<6<`,)X`1-8`%!4`9I8(F/\X9PN!/M\$V> M)#WV<`BP8@5N$`!-D`8IX`,00(LE`"QJE@>K$@*%E`._,HRWP@8"H%\U`"LE MH`$LH$\-P`-QT"LC4'5?X@!LZ(O$F(W:N(W,-/\G%V$JC#.. M!V@*9^0(_P>`QL>.`FA&[>A_W!8GZ7A.%Z8(1L`N^VAAB#"/AH!A7`&0[0B0 MEF`1>]>*]"`,PB,()<$"(E`%%H`"-%4"5"`"@"@27A!Q':`T`S`"-Q!YCC$% M.2`!"Z`2H.59--$%?5`%.<`!&>E+"U,)5W01?6>37R0G_,,5.30$!]"0BF`Z MC7!&2K`$QG`Z^E-N*H()Z=,BP1-#=&.0VL`N9R24<[0(+#)#.F<*':0WZ=(! M%X-)U\,BL\<1*V)!>N,3+U(J17$46B0\)(``8J!7'N`$3K`#8.<'4J`!3O`# M&>D%C(Y'FS'28(P#ABVCG'$0W74CP)8 M1[&S3?N(88/@E4:"/^.P"ABV"D6"35BD/W[W"N58"GH3FEP9C_I#CF%YE?%H M=YNYC_!0)%5I*IQ9,?/P"J_`%:/Y9_E3G&XY/\H`39"TE>D4E;<'8?@H"2,0 M!9:#+$5C`_*GEX/H`2PF!7!02&BP`@7#!<1"6(^I)X=AE!'PGO`9GQ'0-\HP M)Z[98$RB0^)XE>2(#"ZR/SKD9&^I%.P3H-/CDQ&30SDH"$Z&"@\S#$5):3E7 M0E1TH*4T*M:C#0J:"N_`G*S0(HD3/7(TA*.N1`I-:0H'`)5*PCO9 M]`TF^DV25FW@$&[Q`*='N4/LPJ@L^J8L620EZI5*4RTI[R>:OS&2>F`SL78Z*Z,P@A-"L9GI[R$`Q`@"QG)I*2K%%308^C92@2["@X&.4 MCM2H'NM( M.*NQ0Q%NW:9-XC8X0%L*0#$[&N03&D%"&8NH@)>PES`35D!<.<`",U"P!JLA M(_)_FND*JMFPZFA,&E:=IE*[#F_+'Z';NI"9B@CBNK([$J,+ MNZ@QN[-;N[:K&+B;N[L;(+TKN[K[N[$1O*T[O,3;%\9[O,E+'\L;NLC;O+GQ MO%L;O=)[%M1;O=<;5-E+J]:[O<'1O5?ZO>!['>*[GN1;OCIQONBKOMW!OH^9 MONXK$?`KD_([O^I0O[YTO_B;"R8R.RN2)$S2@/I;//S;OZ9[$6()#@-,P`7L MA@B,&&^R$77R!W<"B]V8P1J\P1S3/+V5?!^.?,F(D"YX1S%^MK>9W!^; MS,FZ@V@ZI`K:HQ0^.,KO4\/`WB>,*+VO^# MVQS.#,,^)])MQ#>L0"G.ZFPA*+S.[OS.\!S/U-##YAAXJ<`X'Y&.QR`)ZP1- M@M-!SG<+?Q9H^W@Q])P+`VV.].P->UL+"8V084F6"/U-%M&@Q5=\]WC+\GP+ MU?-@LY-D"#8J9`D,O0<)M_,1M;.4Y3*TN.!$V70/'=U&>"30H)04&#$._I-D MMN#2-AW37225H<#3J;1HS<`ZZ>1.#*J5&[T+\QH[[Z"WI$*'J8L(R*!*UVJG MN!"@*!U'4PT+6MUH=#/3M?#55VT*`4T+9,T*-C1AZC/+2\W4QR0]DJI"4AT) MX^)$B`:I%4H+2&*4>:T_72T*?0U-93W4N3#8?]J<-BN-"XA-,3I$RT%*H6^- M"TD!KHW$`(`S#YZ4MSQV3*`J:6)-"V9YE8$="AQ!G_/`RKEPVN"JM']M"ZQ- M+EBMV2V"V>D\V;+P;!?MK6&)F@<`I(_@9">".@S--#>$=#><-#>F]-][= (WNX]7H$``#L_ ` end GRAPHIC 19 f30270semef.gif GRAPHIC begin 644 f30270semef.gif M1TE&.#EAT0&"`.9_`*2EJ%%14F!@8-C9V[Z^O^GJZIB9G(J+C'!P<&EJ;.3E MYYR=G\7%Q]#0T+6VM_;V]\#! MQ!86%S,S,ZVMK];7V/W]_X.'AXH>'B'Y^@-S=WX"` M@,#`P//S\^OL[?#P\.#@X)"0D*"@H+"PL/CX^+R]P/___]_@X8V-D./DY=W> MWX&!A/?X^'5V>/+R\_#Q\5Y>8"\O,-'2U,W.T,_0TO3T].OK[/GY^XNIV>G_/S]-#1 MT^_P\*FJK'=X>I&2E(^0DN+BX]'2TSX_/]+2T[_`P][?X,'"P_'R\EY?7W)S M=/+S\[6UN,S,SFYO;_O[^^+BY.SL[>WN[I&1D[V^P.+CY/___R'Y!`$``'\` M+`````#1`8(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GH(X M/((6HG\6%J"FJ)^LK:ZOL+&RL[2UMHD]-ST6-S\(/#\]/3]_-Q8(M\G*R\S- MSL_0FKU_.Z(^/#>"V0'(T=[?X.'BX^2%.P(].]39V<5_`3V'.?/T]?;W^/GZ M^_S]_O\``PH<2+"@P8,([7DHQY`6#QP[T@E0UX[=#Q^&_&C%'&G/+DRAK MWLQYHV7,H!UU'DTZ\>?0J!.57LW:[NG4L(FVGDU;[.O8L6OKWLT8MV]$O(,+ M-_N[N.SAR).?O&T7;M?;N+%_X=_-SQZ'67 M-Y\VO?O6Z]E[?4^?='SY4>OKWWP?/\W]`$K6GW^T]'0#1:CX<,,-.+B#4R$! M1F@:@>4PN(,%./S08#O:/`BAA"#^-2"%L?P0@#I_X+!A+@U&,-2'(<98UX@D MPH)##PVJ^$212":IY/^23#;IY)-01BGEE%16.20& M-8KC`PX6Q*-C.CNP> M8:69)S1\!IJ5GW\Z(^BA50VXX(*.<,B#@G%2$T$B')I#"`X"++B*G(E<0X@/ M#)3RT""A$!+1BZ-BLV"#@"+J*E>55-H(ASZ$VB+B3FQJW"H MVBR(D;7=[(01-OXZ^(?_AMFXB0,RW7"CS<>\9II.ANZT@X.GGG(841-T^IKB MOL.`6K$@Z'HS\,TJ[96A!3YTB6Z80/OHLJ_L:-,KA]_BBJD[/6R)3#L>_]$N MN;PBJV/1#2\H2J3:[/(Q*/N:PL.M'$YD,\YHEZ1HM3O@@'4V_18K2-+O)*UL M3D3S3XDX73Q41`U:O/O>.Y)(ZRE213^Z[ M9X46HGI^OQ?O!Z'!+V-\\<@GKQ9G(RQQP@%*C+!\7D44L,052.#AO%R:%1"% M_Q8H0'`$!`XXD4,#+UR_5O;;XR&$$'ND(($0W[=GUQ)1%"!2$5$@`/HDD(0@ M5,$`!G#``EQ@!20H(00%:)_[K/*"$%Q!?D)0P@N>``,B-,$`&FB`)13$J$:\ M:`<78=4I!+&EV[$0]5KS0N4X($'%"`%*TA``D]9!R)`80"&-A2,^"`7ZO@!@Y!6C)KIZ`>\4`?/=A2/2*4C8^N(8;X25S-KH28L+UB" M%"QP!2EHI`@SH(`!LF""#`3!`7580P50``(Q,"`!`*""$4@RA`$X80%:"`,1 MCN``/JPR*0!$0@C64@`UD*`!%7B"!%[P``]$00H2Y$CV"E"$HQ2!E4J1`A+H MEX($:N!\)=A"!X(9DT(\(0@XS:E.)AH6`"(`@=L(`$18*@#4FF$ M/0C!`PY<0O>$@`%:1@&E+&F`!QY[A1"$%"8AP`,&C`""!$J`!F$8@-H*(8.= MNC8(&4!"5*U5D:,5-5DJ8M>"FC`W8$6U&,.8;;58^*:(_7:K6,D>$38```@$ M00)$2"``V&``%M"4B5#(;G8W^9(A<"$)%%``9EFRA#V440,.J(`+\+"$\39% ML[K,*0L6`(4M&``"4,0"`(Y@A`M<``QL8.@62/``/#2@I"H9`1+V<`(#+*"Q M0L`#_Q*6`,$$:\\#]0-`$QP``Q&00"^6&"?%*C)4:K8C)VXK10O1-91(U>I` M<1JGOPIG#59U`W+.N4I7*8"%!&3@P7[H@!/O&X;K-L6N3:"`%3ZKDA=\80#W M-(,3T`!%#O1`"4)PH&`A6@`I3`$%!S"`!)+(5HT,P0150,,1SN@`5":@"EGX M(`52H(0IN#>T@`MH`$*>J"&'C1@)%Z=W_P:(`(O0!$`6O,`*%3#?`CA93U(Z`*\#F&5+"O\P!44_=K/S4P(< MCI"$*M!5)`5UP@>T`(4.#/3,&7"`!``P``]L>20%P$,7[@#%#Y#`@&+`9!+. M1P0-7"`*"!;I$O!0@#HT(0!B92@$JB"!,N=,&35DQ`[(1#-&&+(OI:(&BE8H M)XJ7R2I+6``1TF#DL@RA!`X0@Q`Y,H)S?V3'```U`O2@T)A M"E)0@FC)&```)``*!I\6VI,Q#=!MZ&-1@U%'I!"$"##@`%@0Y4E%,@(7!(`( M8Z#P`!(0!$GC90$:6,&AW]D`"D!@#GH0/$#?%PS"$4R`OP770:0!/66!-EC)&-$ M!`%@/A%0_P'G\P16TH-&0@)6-P1O`"1*4`$`D`2]`%0D@)G0`1?!T4EP`%I:"184@D/H2)MHR(0L2.L,H@19XB"2`D+IW`, M9RJ/B`AN@B*->`@)EW"7\!`1`3BT=6G*IQ$6P`&8YP0#X'?C1@05Y!$A,``0 MD``LP`(2<`1B]0&!L7=UT&M*L``)P`9&\`%!@$`1X`!O0`128`<`0`37=A(D M<`8`8`0-L&\O(`*E)%9$``%,($H$]`$@>!4+L`4E$(`D0`(+8/\&XI8`61`# M+$%:&K`!2H05BD*(;2,,$'$R&Y,B.)*(#+*(DU")BO`WA>"/B&`!TA0G`+DX ME1(F#$`GGI@+E2)'Y8(X%]-,-X$*.M(3/[%4IR9W&P%/$S!K;^`1<18$KA12 M99`"3!`$4+`1!C5[@<$""3``2]!26>!WD(=3````$7`!&I`$+(D2)L`$3%`` M1L`!:40$8D`%W1:`2NEW>$$"(M`$++`8;D0J-D8S@V@(#9DYJ8,B/$$-@K-P MU;`X-#,\@#.)IX-#HY"6.^(MQ=`SBG-#`O`0FV(1%T)4VX1-@Y!4=',Z1PQ!+Z8 M4_U'BRSQ`<=X;!0`?&FS%S_P`S&0FJJYFC'@*<6@(JN00QYR(_KXFE>#(]A2 MC\,07"PS-C_`=BJB"X`4##(S1PFI+&.#*1"!`$NS)0+)EMF`#(+(G/W2$UOC M+=T"5<5`)M8"#S$V-).@B_B5`&(W`(C9$5EPC`:P>!*`!0(0>I(!F9?)!2!1 M4"8`!3VI$D.P!0'`!9)9FH40`\XVH,[&*OD8F\@"+/U"FX5H-"=(-.6B(D]# M2-%$B+25+%3I#BKB.AHR#&Z#"IDR7!F3CQYJ#!"*1TW`(1SR:3-C5#NR)<=G M"5LT!#0Z!'E0_Q)QA@5>$`$'H`%,21D5<)(U4`%7,00_*CFFR9I*VIHH(BN] M0B>$J%4R9BW`22_;>3$6^C$WEJ'9L*$5FH]QU$?0.3=;`J:BD`V^U7"]8*"C M@&,DQB.+\E26,!X@MXU=9'8A]H\&NB4+>H]3D8\084X6X0-6FIRT$YP?$PP_ M,"ESU*6A@`"_^:CU>`TLBBNH(PBTDYS=$)=AJ@TV83;NP"Z"V)7#8*)LIRW' M117B80(U<*=-,2`UQ(\4AXA3$8@0(2H-)S8-IS'8M'"XRA.-(W%KV8@70JPJ MI);4D(@\H`YMLSH/ETTSA(@H5`HZ!`H,AXF1X*HX(X*N<`RZ@`@D]/]PXH"M MGZ"M-\.M(^@7YBHPZ)JNK+"N[.JN_P&OT=*N\GH8]/HJ]GJOFY"O^LJO#.&O MKK*O``L9`GLH!%NPW*Q&/L(&KNQ M'?L-'WLG'!NRC#"R=E*R)JL(*'LF*KNRP-&R,O*R]VH@P+(J#N)J&BFS(4*S M\FHAP5H,'E(G/!LA/NNN)D(1+/('+G((??BT4!NU4CNU5%NU3_N',/L)M,DC MVQ*)1=NS6?L)SBD,"RL)/,`FU"`,J8!"GYBV^G&T:TNW:KNV MRH.W`&*W8PNX]>&W64NX=2NXRH#_N(6KN,_#N.YAN#`+N>\AN2M+ MN9'KN+>`N>EAN2;+N>CAN2$+NN,ANAU+NN)ANAB+NMVANA/+NMSAN@\+N]".G!GP`S\H%6SP,,9`CNCAFF).+X@;`C9 MPD(*ZB_VXC8-<>[\K8?\YQ8\Z"(K`A; MTC-X63*#_`H:0NPO(FLYCJV4,L$R<@F:F/@*9]F0W/$G>R4!&NG,JO4!'"S$+:.PO4S+6^= GRAPHIC 20 f30270etf01.gif GRAPHIC begin 644 f30270etf01.gif M1TE&.#EA)0&@`.9_`.GJZX*#AI"0D/KZ^BHJ*O#P\-/4U=35UY>9G%M<7R,D M)#`P,(J+C4!`0*BIJI:8FY&2E*ZOL45%1^7EYK"RM,[/T0```-;7V`T-#6MK M;,C)RQ(2$YN(BIR>H7!P[N[W]_@,+#Q)R=GU%25&5F:(N-D(2&B9^@H3@X.<;(R8J,CG%R=7U^ M?S8W.&%B8]S=WVUN*"@H.#@X-#0T,S- MSMK;W+"PL,3%QV!@8'M\?]W>W]OHJJ:HJ]C9VK>XN>#AXJ"AHZ&C MIM'2T]?8VG%QF]P(B8J+C(V.CY"1DI.4E9:7E04_`DA_!0(_ M0()#0X("F*BIJJNLK:ZOJ#\%?T-%);,_1$5(2$5#1+#!PL/$Q<:HL[1%IYZU MO$4_Q]+3U-76F$,_3G_1@M$"G+K7X^3EYL3)OLQ_ZT.<)8,J.O/T]?;W^/GZ M^_S]_O\``PH<2+"@P8(3*'7[!$^9("2:N`T*XJ>BQ8L8,VK71J`L;D&"A=>L-H%/+EGP'@P43,W+/F!-[MF_"7UI_ M,7"Q]*K3OY.3-4#``@8.5WLKG]Z6]0SBT8TAI\Y]HQ0"6'IRN(T]^]/NZ$E* ML6WA^D4#6'3G1A'2@.T['(VKVIZ^NP$3%GS1'`;X=?$%>ZXY%](6`9(F77\0 MOM?<%A4%9P%KSF%1'H/T>70'>0YJ%^&(&$UX$0>V8:`A1E)80(!'_UF`7XCG MD9A><+HU1T!Y%76!`H\7S6"!%!T%]T53#]J8W/\*";:V(TDH6$#A1E%B`*1& M^J7"GY**4?58*)5Y)<A-`$1`E$(/&.)S$50$0I M-@T:&H,S8&&;"29R%,$.`8C$89N1CD3I(`N!(@@0N.;:3:BB[RA*3+X7(<]"VW';K[;?@ZE.#ASP1([H+'#&0#AD*`">0R4D"76TCKMI]!T(HB@O?H1@A!&L-7BD#!B!,$. M2RP,@4CC$;!"%Y]1H@G_G\QD*@@10$2S*\"B&B`$JV>Y*:E&453A`P5,5+2J M$`\8X&[+C5&R3#*A%*!$,J7(TM`?(`_*`,,[/%&6FT=RE`0"/C!-@@'%I@'# M&'X@\&Y4LXX24RY_:`J,)Z)\\C70`8^T*@-'C%RP148(00557=@VI1],@`&& M!Q7038$//JC!`1HC&QN#!Q6!L,,(6*-9=D;%"D%<""17E$3@1TA5Z-P5,,TW MWTX;,+2Q2Z00`!06';&##8TNE74E02L9P`X16#2TT9"SND,(45UND0=\BQ%% M$F*H#`832>R`MA]10%$%S14-C[,-+Z4XW M_Q1-4ZT1NZEOM&H`YE<4!1DD;)YW3M5/Q#L?\#`CV3NB1U`X`@10(`G,JT@%?$`"DOAP!U+T0_TD<;_TK`^` M(/G?3:2`A17!'#A3$C>YL>2+[XQS%&HHS= M:=S:0H+"$9Z$24UJD@(H`,$"9@0$($A=]MX6$H9U)/\*3=T*SE##S0E1+,I)`A7892Q8FL2(&!'6 MBUZX`VF&I`O-V4`*-F=#"/(-"CCDB-4@0`4&L,N<(%G5$D#`$28P+8<<0:$0 M(-`TO%7@H0=07&2@QKC/&>\)T'0G(UF%QB4V1U'OD<`7I-#('GU!`E?J`JIT M8QL%,``!!JA`\)(IAC$L$R-IBV8LK68\9)%A91TI7AIHZ`%1&A(2B&0+NY80 M@LH=`87&`P$`HU@2R)FP(M__<9$!XH8!BED$0Q;80!GFT"S7G*PB;'`&CQM)N1>Z*$3#\('+YD:AB@\_8U!%.825>0#BXN;`T-:/D+8G MWS7L_T542X&+D&%HCCL3*S$#.4Z&I%A+J"M&7H<[`R"``0":FQ_&0$$_6"C` M&9G@\I8`(,21R0+$10`8L(B3XB70*!>Q*M^ M2`(9*F(UN&:D>&PP`!.J@&(I941E4;"/!0($ M1(P1%!JX-2;XD10.O0$%("@'!IP<[/*89E0I8`$SF+1%#/_:W8N0;\H660)K M%*``"\B@L3@Q`(F54KPZ6X0,,$@#1T7"9T;XV2>^;79&I.V)`2V,8,/L`D2,,=X[.?;P09,X`?2*M0(!@!OT3Q2.P@T MN"<.=][5*;YAMH@LPV?T3FM>L%K_Y)'!Y4(R@R`):9$]>!,"O$\O\T]S M'I"EGK-NQZ.#I#EFJ"#1P5@""ZQ5_"$!N$587(6.L`N%W7WBT()^D<8]'RDY M-TFY%W'N]5/=AC>U$5WP`3A0!Q]`;0HP`P1@`CBP6,VQ!`A0>2,1)0O`>Q?A M0R]@&S7@`WOG$5M4!6(`!5#`-!UX0L:B4S`"35<27UV!`**G?TE7$E&@.21` M!6@``^W'_Q$#%`!X$&F1E"`?@$910@!WX`/>%Q)MUD5]M`'F!W,C$3_T=(08 MX5M6MA%+AQ&\%1GU`RJ?$`JC`"KK0#8_P3M@4`%ZM%`5IA$&]6YA)0<<\$;$ M$3\5$#<6@`86`2![P$4!Z!$4R`#ILP*V,0,D:!)1\%![N&XHF$W,YP=ZY&I^ M43U#H`2"<`OQACUTPW,4`#.T`N[\B]C:(1^L#!H M\SH!X$08008?$%9"\(+EY0-3IEPAP(2\HX0G82!LZ")$(H=TL?\TY,0_]W<7 MO^@-^@(.2"`.\1`N\_``/G``+<`J%Z`#8S`R,.`###8/%?`"K2$'&K`/!^`# M#W`%.L`:MH$'$>`#+,`M!Q`#>+``7Z`#5V!'4`"/&JD#=!`!$/"0&QF2^?!- MD@",@]`.FV*,/4%A5E4>D&,##+4R!E`#D/5C'4&&S!1IVZ@3UQ1E3"->1(03 MZ?@'#5$+#Q$1'^,3\3,&QK)85@,#'L`T788#.T"-:A@_C;(>7[!#.B%S$-17 M0;D30PD3,M$U-:&2.T%AEY<17Q0!3#`"U38#G@02)G9[?G"*//%3%'2+8WU)/Q7' M!%"X.55P)5L$!=QU$5+``<(D`4S8'OB1F"(A8RS&C9GY%ONG"*?Q4R0`!6+@ M`7:$`+U7`2I3`0^V&I&$`W(0.Z-)$N333#CT/G M!RCB(ECP1A0C,CO0=7M4$EL&>2HSAGX<`&:J%;WY@!!X) M1MC!(R@4`9.5@MZFH)W!H(8`&;\Y3LYD++IU@="D>Q8`93K(EQS:%QY*%!T1 MFE:EBP808?Q#_P7NE011%!QTTJ+3\:*!N1'D`YR_A5-RYTPM\ED^^J.*\X'' MR99)\$JR1@4,`E)+BAE<<`!-X`46H0,7$`8]$*9B*@)]YVQ.]&`?D757>AE< M8`4:(*9AV@%9(*99T`%VV@%AL`9EJD5<%$5W0&:P-V9K:A5"J>T6JN0R@70LJ>TF#W1>!O@J!'!TAJ$1JH=P:H' M<*P'H`6S*J8:H`4ZP!$ZH`5S*J8=H*I>H`6.&J=W:@7(>@!WV@$'P/\%KIJK M2W81ARD$-B><&'!6IG(;<$*L&\&JRTJK1J"E.N"FM9JO/7"I%S"KCMJLXWH4 M0,HKN[,R3V!S%@%)!*`;`*(B\'H1;?JMRVH$%W"HAIJH%P&K8?"M'&L%5X"Q M%7&O&I`%'YLX?2=S+*"0P^H'4N"#K2$!*KJ<4R"ISXH1K`JF^4JQ`2L9`XN6 M%<$[9[`#K6&@I#H%!Y"M6:`%37"JT]H#28NKJ=&S8N@^3<,!`-*CO<*J-8L1 M.L`%(*L1AGJT8>JQ.`NGE[JULB&U6K$W)%`&P](KL-H!U*JJ?@"K35NO\W`% M6M"HM`JPK\H%6J"EU*&V%@%*#S`'0TL=%NG_K7)*K1T0N`=@!78JIO4ZJUD0 M!H[ZN/-*IW;*K1?PM1!"N!6Q-RD`(%8J&XOJK?DJJ_J:M%O;!%80IGY;$:8: M!MR*J`$CNJ`4`VX[JCH!N'/ZM*!;%5,0ME8PKY>KI<-;O(:*MAE1O,,;EJ)+ M`3"0`,X1LR9Q!67;`W([MZ!KK%Q@L4UPK)^+$UX0N[7ZN%[[L$"Q&<'E!JT! MJ"(1K8XJO!4!N,MJ!>$KK?I*JZEZ$5Y@J%>`K.N;$?<:IG5ZK.'+OBA!N!3` M!_';$;`ZKT;PK=,*J/;K>$ZOA?@6&VL0]<509@P2YTC&% M,`&V,01]T,9NW,8B(+=9$`=O7,=NO`9K8,=ZO,=\W,=^_,>`',B"/,B$7,B& M?,B(K,>84"U$60(Q3`@'\`$W8`5!8,=P$*91,`")O,F_,F@',JB_,:+ MK"^C0!/K$`1>@+-6,`5>:@5SJ@%0^Q$3````,`%B/!I'U0V/#`1$X#&AP@4< MW,$[F\O=<50T@022.`KL@`0_`Q5&BZ?W:,PV\E=^(@B>(@A\0K#4/"BBV__- MHO+-X)PFXCS.2E+.YDPBZ)S.$;+.[-P?[OS.Z!'/\LP=]%S/3+JG^&S/,;C/ M4=O/_JS+`!W0H7'/!)VV`WW0G&'0"BW0^MS0"/W0$(T:##W1'9K0%JV%&)W1 MBU'1'+V@&_W1A.'1(JW1$EW2F%$_8W/-G@`HW(S2GE$].O,0FZ()LO`I00K3 M!5T)-*&.?W#&N%*,4ZO3,8TO/LT--HTM.4W4"PT)!8`K.'/4T4`$_/(#_O(' M(F#+6KW57-W57OW58!W68CW69%W69GW6:)W6:KW6;,W6=N#44.W39;PQ:+PK M`\`#>)W7>KW7?-W7?OW7@!W8@CW8A%W8AGW8B)W_V(J]V(I-II70#3FS,\SL M,^=0V99]V9C="%7<-0+P-4_M"9V=V:(]VJ1=VJ9]VJB=VJJ]VJS=VJ[]VK`= MV[(]V[1=V[9]V[B=V^/PU$/!#)O=TH,P!,DP-D4`F(I0`$/AR\$]"T7P-46` M*]M,"6/ST[U]*[/PU+@RW8_@CG_PW&`S"!S#"MGR`W^!PH0$Z`R"06P`(/0`/X-##,-X@0.!""N!$+= M"$@@X0V!*41`XMS@!#^P_P#Z70DH/HF9PN)_`.(QD0I*P."@L@TEP."=D.'^ M?0G\[=\`+N`A+@@07N$)WB<+@-Z%8-5F20N:T@EH/`04/BWP``0W;@N"T`", MP.6BT-,%0.9$``]DON,[3@HU[@@_H`"W$@U;;L9V_@/8$N"2T.9MO@U>&`H- M,`N.G`H"<.-_L`U^ON,MH=TV4Y1>[N9N#@^D<`E6WM-#D.4_'0UFOC%?CNA_ MH`1.0.7TO0$-L`%\\C,S7L5>Z!";'MPRW@B!7L5D;I2E`.9_8`'NL,R4T.;A M_0.E``^_#BI%P.N04`H=/BVGH-P$C@0*<.HN[,A3?0K([N$+C@0>OLA.T``+ M4/\*MO[3RYSFF%``IH[J1$DK4^X-56R4K\X-EJ(([M#=DLCK+0'954SON[(+ M"+X(LS[FH=XG@TX(;=[KA%`$",[K!O_ACOX($"X`T9T-H8XQ&YX)_WWHGQ#= M3Z[NB[S,'L[K:8XS$T\)\5[L_WXKML(-]SX(:`SF8!Z&AL`)GM#@I<#G!8#@ M7CC3=4X+H#+PBN"%)$\$3H#S0,\G1"")XEX)`P\$0=\UH*+TP\WS3ET"07Z2 M#;'TFH()O_P#2D#@"%X`4N_OB;[PD4#R?T#CRSST@T#CF`#S-8\$,R_B-@_@ M*I_G_FWL>M(`W&X+S+WM"[#-7L@+<^\)6]_MLL[J"[!L`)GB+QNP``O.#GA/ MZH_0YD5@`7@_!)0X^97/#BGN"$[P[(/>$`)@Z@U0!$7`^`'OPI2=Z)[_TWCO M\I50`HP/!(#_!XO?^$4`]1:#]WU_^7SO]V=^U6A,*Y"OV\1?_,9__,B?_,J_ (_,P?"8$``#L_ ` end GRAPHIC 21 f30270submf.gif GRAPHIC begin 644 f30270submf.gif M1TE&.#EA#@*"`.9_`.KJZ^#AXJFJJ^;GZ.OK["(B(L3%Q];7V.CIZK6UM]G: MW.7EYN;GY]S=WX"`@,#`P//S\^OL[?#P\.#@X*"@H)"0D-#0T+"PL'!P.?HZ5Y>8.7FY^GJZIB9G+R]P(V-D"\O,.[O[]75UU)25&EJ M;.SM[O___U!04/#Q\3H[/(&!A*2EJ/3T],C)R]W>W\S-S^CHZ=/4U>SL[=#1 MT\#!P][?X````._P\$!`0+^_O\W.T.'BXT9&2)&1D_'Q\K&QLQ<7&*RMK_+R M\^[N[]O\?(R<'!P[BYN^WM[O/S]/;W]]SX,W.S\#`P?O[_.GJZ[V^OZ&BH]'2T[.T MMK&RL^+BY,G)S,O,S<_0TKN\O(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ M#Q."%J,3#Z)_#W\6%J"OL+&RL[2UMK>XN;J/%0X5%@X7&!,.J*,.%AB[R\S- MSL_0T=+3C\%_$J,4Q`\5@BO*U.'BX^3EYN>X$AH5$M<.?Q06$N\KW880^/GZ M^_S]_O\``PH<2+"@P8,($RI2VKMV[>-/"G8F#6+/O>YM.G3(4./7BT.M>O7E%6SGAT-MNW;@673WLT,M^_?;'7S M'HX+N/'CEXDK=X:\N?.WRZ/O>DZ]^DOATK-WLLZ]^\@-)6"XT4Y^EO?SU3>P ML*$%BY?R\%^AGW]'`"%@J8Z`<(3'H`QI0W6:GF(EFV254'()3`PIPL$&@`!RTPD0<- M)(&P@9@E5;GF:!9HX(`$P+PC`088M//.3X6X*6E31EAQQ`\R:%%%`@*,$((' M1(B00`3Z,<`' MQLHD*+*9<;,*!:N\<]11AQK2P+WXYJOOOOSVZ^^_``O!14D)<@O)!^E#K.#5.OR MA3&@<`(3(Q`1@X%)%X(RZH8:I0@JR2B#2$4\##*/-*FHGE1'A%#03NT^\AX MD+GZ'80"/=^5^;.1>+Z[`^#`HT'IB)B."O*-2"!M!<0YSGGM'#5G5P%,H`QS?H)X.";%`7TC@ M`0^4'_>R<8Q!6,0)Y]L(LRY(B.8MT`(+7)H'_0/"ZMB*)!]80@R$Q3/!&(95 MYD.B!>*!/7;DD!#R&N)1+NBY_<%C@?,JV0.<]8<@_N&`,Y3>]Z8G1WH9[0^B M>]8O-J(156R1`DS#QK/62+T/=K$Y(I0!#5@@$@+80/\`1&#"V@83/],=JE4T M_,/S>J$_^=5C7HT""@V!(<7QJ6P05"0D(N51#(_42W3#,%JL6-$,2`!!Q(``3\5B0-8"\#7S&@)#UH$BZI@'0Y/H4%6">("[5!: M,5;1NE64PB)*>94@)K"5SXVB=1=@ARHR>(%Z6H0'\2I*Z^AYLFM\3W>"4*#O MG&F<'0R!`R+@`#;E8`42ZJ@#V^2FB@BJ.(;"!@2`\L,.8O`"#@3@"Q`;04E/ M4(/++29^BN.-1U&3`@@D(0D`Z$*=;D`"#T2A5`2H@0ATD(!1,@:F,:7-3#\# M'@B4@0D>T`$*.*"$&7A`!&7_!,D&-J"`=+TTJ5=:JF4(``,::"$$>,*!$E[@ M`1>00&,G]`Q2P;H:L4X&!&4U015<4(`6X$`!"/@``LQ@@@3<(:YRM80*3:<( M:2T-7J30"&01.8AX>+->K&CDYPB!Q0NV@I@/T"Q=%6'7Q91-!D&8:J_4D(/W MC02CJ"EE\@;13\XY\EG@:!0R*4N*"@2P9!2P!P:.20I4K&`CD'P'*O`X6D:4 MEC`=$$(,?-4@$WP`L;I>[:YA?905!M%ZT@RBH+*A0NC&]"P`C M([GKANC<^+G6R4N>A+#E5I0GVN8>XKF"*0$-(!8"/%RW.881@8(7S&`&0^!9 MN$OE__,L\JKTSNL=OYB>,FPYK]=Y;E$`I6T4&2O%>6H@BL3U;R(`?)<-$,`( M0C"!1*M@W><8Q@<-SK$(["!>(=*0CO.3%P:,`4@GG,QZE50DTVC9XX0VKUFL MDY:*5\3BMJ3`828`@PA:X((S>!4YLIT?,6A8X3K*#RBMV@IDQZ<4T2WOFT^6 M7V5;=\S?:D-(G1,_*0/C`D0C[Q^(@NA!M.)Z*4NH M<)GE6`SPH%$8B+"B-U+)9!C%(G@FK9[34H(RH)4#,TC##U*041OOHIZ.D,"= M88V(*$[9=K*N;RK<*=I1CR57(9`;`5IMG;F&FAR]R+`&XO]EC*,D(\^^_DJN M3A`"$R`./<8^MCBLD4YFV\./38NV2S90TR,(@06([4`*C!`&`#0A!"$P(8"R MK6UJJ$.?TXM'^!(Y"(_Y^]\`#[C`]Q4`(]C@!L$^00QD4`(QA,$&'Y!!$[;0 M5A*TH`9^&+C&-^XOD%'B%`^XLR-H'8E2',+D&4==? M#58/YIMM!,DQ41'VNA/*'8'V4M4C!B.PH`0@P"Y*"$"%#TC!5R/X%J\^Y0(/ M6%T''N#`"&(`!:5[IY2HL"TD2`P)*GIN?&DNA+N*,78-=C"#->=C,NN*H@'_5_1"4461K$]B@1EJ(`6W:OT*6H##%U;M]?,8!N3+C?URZUE'C2AM M*QH1[7TU,HI&3H!91R3B]W+(.UH#F9[MX&CP28'?>F&C4%OY'J)NV\BB,,M^ M\^2]*QJ8_.077NZR]OV8KS&[K>">*/#`GOQ8:8AW4!*=<;0Y5SRJ(!2,H`4G M0`$1>#6$S(_D`R!0)QRC!$SP!%%G`!L05[:R`%&`=*TW;X6`!BHP@118@1.( M!LQB2HNR1XNR:,?%8?/##>CG"_F$2/E46WLD=SVV*+:&2V\W"BNP.TF1%-OP M/!U!7"Q(_PH:\'M#UB@BV$'<4'UC-@_O@&CH!T5'83XF6`']]'V@M6S*<((Q M)(*/8CU;H0XIQFE)-D\8QFCPD%P3\AMP\H!=`0($,`-:-R(Y,``'@`3X\0(S M``,)0@4_<`,Q$P(%(%52H``T\&748A@2:(&"V`/[!4?Z9!%=2#*T)D?N%7_+ MMD<3@`&[HX);>`$[J'8=!$FI-"]$$4-"5@B6V$2'R'ZGX`2:-43:H"A%8X." MX`3V\(A\!%KQ(C\_A`H3%H/@HP%.N$A;>!3'P#3:@&@65@F^`0)=\`-T(`/F M!@,E0(9-439)`#DGL",AU0$UX# M>C=_L)$"2X!:?T8"52<``O`#X3%L4Q$G,9!UU$@Y0L4!<``!-S`")_`"<:`` M?D!N?C@V8-)1/S&4)I]'_<&%P!)`I`V0P`D_P`EI0!",@43K` M95=@7520`E!A!#(0=2'0!N.(DSK#!"WP`DJP`$69/O$#[II?JPC2=(I2?-X M#8TD:\^YG.;GG+CG1$8!>_)G#YJU?/6%%I]14S*VFB3P9P40`C5``PE(`%&0 M`UF0`%;7`@70F30``X,6$Q\@72?@`6IP+BK1`1A3`%BP!O_I3/16;[&P9$BD` M!28@GZ7UH!!:_Q:6T0$L(`2H)5%!D`8N!E+.Z``0F M,`(C<`4!,*319J,WBA63H1X0\`-KU0+M"5@TT0%OT`1L=0/^1Q+@(0,_<`0V M,``T(`,R,`-/)S>P)6XJ8:57NA.-(4()<`).@@)5D`638Q,@4`-7U7_$1@55 M0`01XZ?2U%-`<`)0@*)V>J=YNAR,L0%<,$9`$`0U8`8RZ10=``4H(#="D%$$ M<`,O,`)%@#51IP0)P`8RL`!46JEX>JD3L1@=P`6>)P)?\*)/T0%3(`(G(`54 MD"`TX#=(`%(I<'1)5ZDP<:NX&A&*T0%6$`10JDU>T38<(#?^MP.=$O\#P`JM MT3JMPY$7X+$'8C``-@``.,`!6#``Q"85&S"L'#`$+``",8("XTJNUV&N,A43 M+@8#!/`#9SH3'V)5'%!U'*`#.%"K3-$!2*`S,RI12/":_LH2T@JPY0`3!,`% M/W`G(?`$"2"',I$"9^@!29J9+Z`&$-L4UN@!0"`"(W`&VY*Q-+&Q'#L.X[8# M-Q`WP095'&`"-SMN0H"&(N(@44`##L@6?"8"+-FO.%L8.SL;+?$!7%`$;$4& M-Q``;R!4)&`"E,H276``.C"-`="@3EN3!C:U.5NUK,$2(#`%[\H!2)`"MP(" M3QH"93"V"<("?KL#8Q`"([`&?GL7!+``4NO_MBNALW`[#2#1`4M3,SC@FB.1`C\[`JOV6B60`$T@!&+"`C,`-]K*N+CAN(\+#2I@!'7P;OI' M!DD0`2"`LIW'DC$0`?.*`--U`B9`!5]#`'0KLQZ`>9Q';4CPLJP;&Z^;&2H@ M`U?P+:N)`E;G`3>P5CWE`FQ0M"6!`(-+`D5``'&2!'Z#`P+@HST9;\[[O)/A MNM'+#"J``YD9`U$0`1&0!$'@)%)5!$@0`1@+$@2`!/#F`4GPLR\P!!%@`U`` MI2A0`#=PN/#K&O([OYE0*/7R:8SB*'@I""I0`OD[CA]@`U-`NA_`:E<[`!1' MN![0!(AS7?@Q!-=6_\&V<<$8?`FI@D7FY"HZ-$PM8Q+/&A,$``4RTKS60FXV M[!LXG,.5H"Q3-(OS$BV'P'$;@``($``_,5@['%.3`[NR$,B, M,\B$#`N&O,:)/!>+;)2-G!B/[#*(',F>,,F4;,EG@+,=O-KT)V(=(X#`4&'8TC?(+AW)#F*!O2&$1X/`\63@+;-W38=V0 MN##7NQ/6<'W7O$37X%#61]W7\>`1'DE<;X=/Q_7VU9_P1KSU7O(,8=>0V)<@ M@AYA#\K%3LP4"Y3-6XQ]"YMMV56$"Y_=:9@%TDQ8V8-'/>"40.RGV)W`V/+B MCG*$#!"4"6B$3J`]/24I"[<-:G)&=KR-1+A=2?&`"[T-VKT5TZ!PW*R#W/)B MD:[M"6\$.DC6B)R&1.J4"7'T.O/R*J5-"]M=B+TX"^%-/?0,S\_"W:JX:%$- M"N$=6@%)3/0"E]'-"=)2V>V0;!:P9)G&"IFFW(^0*(*G%$4#>;,@X,HS7KB` MX`J^`F)7"PR^:WZ&@=B!-#9G=#"'.#".^#"->XAR> (XBJ>5($``#L_ ` end GRAPHIC 22 f30270sulgf.gif GRAPHIC begin 644 f30270sulgf.gif M1TE&.#EA-`*"`.9_`-C9V^[N[]K;W.KJZ][?X,#!PYB9G,S-SP,#`_;V]\C) MRR(B(["QM-75U_3T].7EYN#AXLW.T+FZNZFJJ_O[^ZRMK^;GZ/W]_=;7V-/4 MU<+#Q<_0TL7&R='2U+6UM\G)S.;GY]S=WX"`@,#`P.OL[?/S\_#P\.#@X-#0 MT)"0D*"@H+"PL'!P(V-D%Y>8+R]P.7FY^GJZN?HZ6EJ M;/___U!04"\O,*2EJ-W>WX&!A.SM[E)25/#Q\?+R\SH[/$9&2.OK[.WM[D!` M0/?X^)&1D^'BX[^_OQ<7&.SL[=_@X=#1T_#P\9R=G_/S]/7U]L3%Q]OZ&AH^3DY:6EI^CHZ>CIZO'Q\O7V]MS=WN+BY-?8V9F: MFVUN;S`P,(F*B[.TMMG9V^WN[I^?GZ^PLJ.DIL'"PY66E^[O[_'R\K>XNF)B M8]S(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MH84C)X(HI2XN;J[O)LI(BDH(BLL)R*JI2(H++W- MSL_0T=+3U-6APW\FI2K&(RF".DF+RDFV2)_*B@F\3G?AB7Z M^_S]_O\``PH<2+"@P8,($RI//J72NWKM^_LO8*'DRX,,R^@!,KUF2XL>/'>Q$OGDP9$N3+F#.# ME5RYL^>0FD.+'BV3\^?3G4FK7LUZI&G4L!6WGDT;\^O8N.O6WLU[\.W_@R'D67\Y\<_+G:9M+GQX7NG6MU+-KCWG\NG>UV\.+/]G]N_EHX].G M+W^^?2_U\*>[`'(!!P[W^,''W]][_@4:$L`01'X$2L/?@:+1<))_-$PAPPY# M\%'@A,X@:"%D-1R!PP4.$"'2?%?P,,4/,0S!`0#L4:BB)Q>V2!@-#B300`]9 M?!`$!6"$6,`0.\APHD@IKBAD)BX6B1>,,L80`_\,"]P@@Q8-%/!##S"X`0%) M00ZI)25&=LG6?!2D$<,-/>RQP0$[&H!`%@8HT81)66Y)(0HOB&"",/&8P`(+ M[\035"%>!BJ6#Q?P4(`,.E3AQ)LBA1%!'FCP@%*<@ M@H;JE`LU^`"$`T=0T"`,.LS`01*E52KK(2OD\(X@'@D2SP),@2KJKS`1@>H% M%`1``P\?>*#%#PC,$`&CLM*)"*_$DE92=AH3@[;?@ABONN.26:^ZY MZ*:K[KKLMNONN_#&&ZX?!(AK0Q`->+###08L,`2B/?SPP1CR)C#MM->BD,)2 M@@2C<%+LW#H(L!2/9,/_$4%(X0-)/@11``)+]"`$`V7H\<$&&82!$Z4'FW?" M"R"I<%0I*>#3B@DK^%IQJ"X$D<`!-R`Q@`,N^-$Q$C$@X40#`$`+%+((X\+TR.".6JZ.J(";VF8(R=&HT`$C&;@Z/--W:>\(U&*^3,^MVN6^C` M_P`>R&!`%F,4;1(!#4@J5N^$9.MG"L5L*_,@V*/`E.)X@E2G,=K#V2].803& M):\>(X!9/)Z7,V!D"W)$R18JF)*\0FBO(]H@B@I24+WO+2)\"')`$@P@!!G\ M32^($8',5#@,%M1**"#A8JV),JN&=%#QX"A/MQP1$:``,#M,%V MD2F$IKJG1/TI+(`[C)_RY%=!QF%/'@G4UL)&D*L_$/$/!50A$ZM(+6P-,G%$ M^0/D=!6,CG"$%=73QAQUI;\B>C$18(2/"Z[0@!G`@/\-ZDLCXN)G@DTQ,1[% M^P7^F'@/;?%)**<4!@8OR"U"$C(>P4!@#=\!N6+,[%.VA(5&'L8G/6GK6I=4 M1":E8P,@;*PD-I""`A#5`1L0!FH=Q`@*6K&Y5@"P>D79W`K><;-C<%-SKCA! MZ@31*4&((3 M:'"$&HP$"`&0@`YVL(%0"F9LGO%G02UQT.(DM``ZN`$9`N"`&H0H!@:0`1TL M>M&-?J^CPTGH!&#@R1[$0`(#P`(#A*`%IUW3I:R#Z6K`1`$'^,`%']T!#`30 M!`V0*`8RD$%%'X-1H+I'J*/_L4&,&H`$&'B`!T'PF`Z6*A(:1$D'$W`?5:U: M-ZQFQ@55&P#??@"#)=R`KCV:@0!*\H`Q/,`VEEBA[S@W")PATQ4<.2SDYI'- M6KZ"$/`TQ2-/\,C'LC46;H4,$<"0@#0L:P$QR$(#TK"!,Y!0!WM=#?P@P;A[ M*@Z2NA('GP21RD$H['\+VR"NBC<(%JC`*#Y,`7!SN\C+LBBSALE0$A00`R&( MK`UIV)T?7`"!#*A5-8BA002VR]WN;I<',_2<(&+VBW<8Q93_),HWDK<"86P$ M)!>$G#L6N+ELM=.=DU2D]MX96>-V`KF%"0+P0=07$0>ZJJ.XAZV'/Y13`2B"UD*R//@F#V6'Q``P/\H'`6:#2:L?T<;)"SV_CXX[+% M#1-2M83<982"X<9S;7:?A1WT3-X\.M7*;LGKX`A/N,(7GBX(.(`)/'@"&`90 M+V_Y80NGPE@:9O`#+CR`X2`/^;D,5HE4C.#7CN`U)(R-W\*>W!`LMP3I%F'R M"BHBYLIN!*\?F0V5`UOGB?"Y(81>\I.OMQ4<\<@*(!UN>K_$!T>@`1;4)(0I MN&$`&#,6#R10!QB42`<*\`)_>J>*U[)6YM5CG/;B/(HNKOP%T@,T9+EM14D2 MPN:_7<$W>'Z(P2X`GF8OA-QY+G?_N1=6!$;(&1\YO71#Y,`4,]L6\(`""_8> M!19*8;I;870$C`$!"`YU"0V"4`(>($%-,>C!#>J:4JU%%0%1[8$!T%#M_2"F MYJK(O>X!CS^.W*PK'.&[?3E2BLG>JI1W3_L,4==?F[,"=7>*9U?420AZND)S M[RB^(9#7,'J>`K:X,D6+W0E/>KRYM_95Y?,;ET%3N-\5+^"].LO?SN"WW(CC M9`9&7*'AALF6DCFS?_<7"4(U'TQP`#(``W4P`0?``U*@;F7E`U%``P4P`TN` M`+-'`#4@!ADP!3$P5FOC`7V``50``:%W((BQ!O:Q@BRX@FMP*Y1C)TL&:C[T M>"`67MX`_US`H'>*I'>NQ4>%1&1Z(FRVU!%\E`HY@`)Z]SD]*%Q59H2^Q$'U M@V)ZPD<8X0[")5PV9Q2A`W?RL!0@,8-WMFK"TR>=,H//8PQW5H7%0R>\!S,< ME!1+5SQHJ#`"J$CW0RU31#F.8T-^9`J-)&@'98!`LP-"\`,WL`0P@`!H\(`E M001`<`1/8%90P``($%H<``(610,/T`0FR&,MDH(M.(HXH`1=$8/TA!&XU%[. M(WA,U%XV!'='Z%L28W.^LP+QUW:V)0*R:$@W)(O%,`)4MHMPQRUWR$2IR$'> M]`OF!%G`<$H`F`WU8"OQDT-&)@S%J"O4J(5($8/0J&3"H$3?D/\"&D$(*&`& M]I5GWI@M1B$"CQ=I1.<(!T4$3W``7C<$$B``28`!&-`!-[`#"N"(?E`#4I`& M$\``(H4`"-`#$R``M;+]R2,UN=:D&2,B_1`J*.,5-2,V5!?T)@42BB- M*@1IJ(1,$523NL(PYG1/@[1A3KEDRM@**4"-^#4,)U>.1&9J!?1S07&*F$`< M$A@`41`$<%`#$"@5+@`&/&"!0U`!8A.@@0NR`1R'!0.@`#`P!`SP`0(@!B<(0E!CX$3BZ'#)3E:\9&6536GWZ'?.17.ALJ?EWQYB^\V4``!D=`_P35"5H)>`-"<`,(\`(5$`$#$`?D%A4]PP.S8P!RT)THX0(= MX'4QL``,@`9=(%3]UA,K1(2,8'CF@7.811HU$`6F=P,,(`-E>HEED`9=D`0" M,`8%D#5"X%PP(`$T(`5P`(HS80-?<``_(`-9X`=X:A(VD`$WL`!:``&!"D97 MZF^H,1IAR@-5`"$3-:EGP`-B1Q)@Y@(-H)YV)0,QH``#\$PT`00T``5>MZ0O M80,`X)"9M:B,^AF:00-P\`6F!U4QD`$6D&Y-T`3Q>1(T``($X`1>%U)I``0J M02H650.0&`5.H"150`>)ZG1`\JI"@AD2F`1<8(@+T`,9T`5^F1(NX/\%89"M M,M``5H`2-/`$/+"N`:!U'U``57`#8%>ETJH2KDJME0$9+A`%$B`#(G,#4'`' MWNH47N`$#X(%`DD27P`%2S`$,#`E8Z4#4;4UO5JO<(*O*O(8+O`%ZCD$,>`$ M87!443&H,'`#4U`$%@4$![`#2.`!7"![6<`$9EL3:)NV?C$3WVD%1,`#;E`$-_'_G=6I`XC8HPA0`&4[%M1E`#U` M!FE@/@_YM]PAN/D1$S90!!_P!H88`[1VKGDJIB`U.S%0`1-0`!5``E\"`5CC M21(PN9S;N9Y[54_7!'=;8#+`7)^*NC!A`UN`!`M@`$A`!4S@M#6`NV5AMP@` M!7Z;NS,1N+L;'2WA`E;@!*M7`%1@`4S@`UMPMW19O.6K`P:P`4P`M74+`5"@ MN-9[O=G;'A&H!FI0L350!!501AX0`"1AO)Z$!0!L$D1@`?D[$B[`!#'P`PI` M`NY+%A4[ORZ!O?6K%3A@+!%0`0%3`41P5"X`!SA*)C!`!4QJ,50``SO0``&0 ML@VP>G9@!33@`F&[_P-0(+L4O&`7[!TXD`:NIP/-Y5QGL`4B,B5"4`5>D*B# M^H$>[%`N$`=84$8_,`0%@`=$`%)(`+TYW!H6O,,[@0,%L"0*D`9^(`8.$E5+ MD(`]5;TI000;5V!I$``]NP,_T`!4L",/\K41O,5KY<6)02?<@A1Z,EM^\D@X MD``6$`!$H#X^8`'>6P9V\,$N80,6X(%+4``@%0-;8`,N0`*=M``_0+=\3!M= M[,>\<"G;I"D0TRG"\Z`H80-=<*#ATJ$!W1SS#1%&W1C8K1 M@5+1&OT>'.TE'OW1NQ#2(DW2GF'273+2*(T+*FTD+-W2MO#211+3,DT+-.TB M-GW3@9'3%[+3/"T*/OW302T;0XT@0%W4GW#42*W4:LO48^?4?P'542W5ND'5 M\9'45HT(JT.:DS8/]HS5UK;5YC`,VQ2##!/68IT=6DW6A:!^+%0*9E!<3;?6 M_.;6Y?`+%^%*6T8"?OW7@!W8@CW8A%W8AGW8B)W_V(J]V(S=V([]V)`=V9(] MV8$M$7AM#:I0#][C$29YV9YM-PED)WCR#B!129]]VBT#HZB]VJS=VJY]#O6< M#5,T#P0E#YJ]D4P76/1T$269.;>P0=EWSWK@4CYY`WY7$9_+-0;5=*]<-#7&D2)!W)^BE.";PCI>0 M@R"!#_&0/,XW"PQ.X(>4"Q/NX%:&"Q=N2>YU"QM>3T6T3;"EB@'^#`.>+7:X MF,*@?I>P1N.$X1#NW*'@IN(".."W0.,8GI&X@.,<;GVUP..LD./90LQ-6>*[ M$$>.`V6P>$-*5$Z9(#^=HRVLK-K7D)1>&66U`.57GM:WH.7*H^3)+0I:+HP_ M.>3[]&)&W@N]TN"\!`Q!:6JN$&I4#@EX,HQ,(3/A'0MU#CRCE@M[WN=^%'BT M\.>4IDC/>`N$'FK>4]HE^4AYGN:[8$4R[@F3'NG44.FZ@.D6G@B:#NF>_NDN $%0@`.S\_ ` end GRAPHIC 23 f30270sulcgf.gif GRAPHIC begin 644 f30270sulcgf.gif M1TE&.#EA4P*"`.9_`*2EJ.[N[YR=GVEJ;'EZ>]G:W/;V]\W.T/O[^_3T]`4% M!L#!P["QM,C)R^KJZ][?X-75U]C9V\S-S^#AXNGJZB(B(N3EYM;7V,3%QZBI MJ]/4U;FZ+:WN-'2U+6UMY66EZJKK8'5V>+R]P.?HZ?___XV-D"\O,(&!A%!04.SM[E)25-_@ MX=W>W^OK[/#Q\49&2/+R\SH[/.'BX_?X^$!`0.WM[OGY^;^_O\_0TM#1TQ<7 M&.SL[?7V]H6&AZ&AH^CIZI&1DS`P,.CHZ>[O[^WN[N3DY>_P\/#P\?7U]KR] MOX^0DJ.DIJ6EIYF:F[FZN[&QLV)B8Z^PLK.TMI>8FN+BY).4EO'R\KZ_PKV^ MO_'Q\KN\O8.$AK>XNJZNL//S]')RG\'"PXF*B^+CY/___R'Y!`$``'\` M+`````!3`H(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MH:*"+#"",:8P+*5_+'\Q,:.RL[2UMK>XN;J[O+V[,BLR,2LT-3`KJZ8K,36^ MSL_0T=+3U-76T\1_+Z8SQRPR@D/-U^3EYN?HZ>KKE2\W,B_:*W\S,2_S0^"& M+OS]_O\``PH<2+"@P8,($RIK#_-B,TP MY*>DR9,H4ZI`,+IN:WL.'#B&<"'LRX\:[$D"-+]KO8L>7+HR9K MWLQY;&7,H$-GZDRZM&F;GT6K7OWHM.O7L$VF9DV[=J'8N'-OGFV[-VO=P(,; MYNV[.&CAR)/')6Z\>6/ET*-[=DY=M/3KV.E6WWXYN_?O-)ES']\6O/GS*L63 M7X\1O7OWZMG+7_>^/OCX\_.;L\\?.W[]`%;3WX#0_1?@@=`0J*!N1"#PPPD( M1IC.@A2ZUJ`!$&1@@(05#2Q!(8#`%%$!EC*UN6> MEM`P1#R"A"3(/!4\A:::B%:%!`)MSJA$$#DHD(,20O`@0)XG;C$KE)*.1+J M'S#(JX\V%20R=2':MM+C4J0HT@TA,SQARCU/>4/(1D^A/>B\.\O2,XLP!H!! M&@%$X6("1_00Q!0W'Q&!!AY$8'BZ.ST=R=0SW#..4%HCLO4J@SKR@J$R'.-C M1RR,U$SF@_@(`SB,CB\PJ#PQ->7WL`#O/)KG&TRH5Q\5:BKUY+O1 M_R!$'D,UU9[+X`KJJ:N^8!(('`%$#D&D\$&=.U"10PYL-$'68BN05P")40,_ M%04&3PB=4DSWNT%5C6I3FX>1_B`F[*FB&>,01^5$-;D>P8,%VA-5*\8VMJEM MA`OY"M0+*"=">@QI?2")QQ`H"$/V><)]!**`[02`-!ME"0(A$((0*F"&F_VO M$&*B01)C4(_,P2."A`B5!`?%PJD9CQ[6$]6T6""H/VCP#](+8`M;`4/*3?%M M<+O:H(0!DEC$0'S=V^"9?&?#3^"0/SJXPA(6L`/8'L1); M\]&81#B/&_P!&,4383Y$1:2B,'(8,1P=M@;!0C)JT?\>R#!=/*YFC'G-\7.F MB`61A-1&0;@#BW6TXQW?0X$H1*!.`Q#![N3"KAIN)`:N6)\KF@=#I*R/!O&X M%S*"&394L,V54X,!6*AFBF/"HQ5'H>`T-_($4"EEF,BHEC;J5:1O0K"&L=S$ M+-U#A"7PL`@=:%I?J'G/;N43_`D0`<]*((` M4'`8@0Y41P7-#@ZNT`0@!&$!$T",0Q^:HHA>QP<(@,``@`$FAH0D1X,$.%B!/ ML!:"`P>(K&0G&]DCT%$03XD7,.*1E$6*\RC@H!P-AN&1D6CR:D^DVED92<=Y MK+9(?R5,8#>#`PKXX"3MW((0%C"_E77,#0_0S&)Z0-SB&M>X+D`C`T7ER(V4 MR;,5N"L<86\#.5C+^FECMEN`#(B#4 M91-H`@0DD`$E3`&0DUG,`8[+WQXTX+*LE6(5?1>J&B0CC%RHUN4V&#H9Y`N3 MWA7A_]@@S.#RFO>\B?%"%(ZP`"8H(0L0<`!"J["%C)JDMIT)JZC,)\7G6E&$ M11D36'HZNJ=2XP:L('&%"$(>Z@`X,NR0.F$&K7%+K1H@&&,*P'JF0P!&`,5A/_01Q*@H*8%\O6! MW'%-RM6C3),LU:ZVS>UN>_O;W9YH%!@5@`ADH(]N*`"XU[WN9E%"THEVQ%,E M@>A!/'6%\:[W)1[="'R_FVNK6$6\#?%455@NT3#H6E+7-G"")V+>#_>$1D)+ MZ4`QQ:XE,S96B""&^^5@!\Q6`@$B,+#O/&T545N<)3H93?5EDQ"=G(0[.B?D M0L3U&XS>486U\0WU)7KA+>P<%[4!<9BC,^54R]HA8DZ(I-:\YH20P1/V.J2/ MP*UX8F1&.($TXZ'$0K1*B453J,PSC5]E">&*7:6```(\E#H[BY%TP.<>\&E: M\2/W`LM'%AZJ'RGU%?8&U`J-?EG_4FVC$#%G03P0'0MI@B7A40<4WB,->$(\ M+E_2](A'3G&*=XD=\H0_A4=ND`JKDT^I&[FFWY5:S8J_#5#!Z[Q2IUOYCWC> M=ZFTM_FH%NG%P_X>%ZPY43#'A%5S3P?R[(2M.#5FMS M1E;D$4&"_U>A,D.7P'PLX7QUU@![\"U!8Q(^X`5(Y@2,T@!%D`,B8`']X7WA M%WY2`!:)I'J0Y,F]G9'R5.JF"-@B!_9&2'A:>'*>0CU))RQY=XE%:/'*0,+91"Z1@J7JA:L><[ MG>-(1@);KA5[G;*(F]B-S0".K3`$Q80M1F)Z+:1W=U4Y8/$XE7!'1)`'.F!K M7352`L`'"=!\M18$"@``.]``!T`B5;``&)`%0L`$`Z``3*!80+`&#P!M]7%R M8Q(DYB=#RF`HH;A('7A\(D%6YF=Y8C**KM!9PE-&ZA.&+$"1HN5@6=.4V06& M<<5763F4`RA4!G:&C+2`>44/!29VGL1)9Z66I"<2,Q1!G^)(I+64'QB'<01& M#%2'4[0*UU*':'94-DA!_G=Q=S4^8);_%#W"1=A892V(3=:#-DD!$G1%=F&A M.DC@`@=07TS`;``0FDQ0!1"0DBSA`TG0)ATS`&<0`19P,Q;@`;T%*0.P`1>@ M`49P!!.PC`3"+O`&<]N(>FMS5*OW>++'/90)D"W0K:WC8`">8>G#8T':0SGG:S7"H?W5)7V"HO'G&?3>W^G:&,PIGZRG=ZFP>-/4/`<8A[,G3JJUC4?%;ZS8,SBP!!45!$$``'?0!!1@ M`49@!!HP/W.0!">!!$D8`#JP;$`P`&U@!$!I`5/0!A!P!+X)(KU6$0*4X``","D; M@`0L@0.O4P0Z(`8B%2E28J4NH05DL#^=%IH>8`)&8%NSY*=_ZARD M@01QT`0CP&0T4P4/^@$XT`46<`$9TC$*``1,`*9H``%-,`9`61,)D#)!`*DQ MH05,6`0@<`%:X%&F>JK&L1G.YP40@(P[4`&*)40$(`("@Q(ZP*0%(/\!-8"K M](,%4$"I-#&L':,!4"@36G`!)L"G^?2LT.H;Z.4%=-`$9Z`$G;8#$.`'.%"A M1J`%P1HQ%-`%$Q"N=;(%8B"O1D@!$!NQ)S&L/;`#=>"P/J@E]?HLD*$#7]`$ M#<`R/,`$?5``5E"P,H$#%L`'U]<%#BLP'_`!*7H$564%LEBM0:`!&)NQ]+JQ MM9$8!RL`L)H#6``!$^"F4^$#0"2.K"B24`&NW4$&/`!"[`'QK@#`U`%%ZNU M6]NU?&(8.!`&5.`W9.`#Z%H55M``4NNR)>'_`T=P-.U:$CI``270!`50`#NK MMUS+M]:A%Y&[3TA0`K:6/TA+%D@P`A<%!3<#!KMRV1N9I[''.1!&"P M!UEP-)$R!R;0HSZZ``HU!DGP.EA@!:Y[$[`;N]T1$YW;`C[P!2@;$U&"`=9G MFPR0!5I0N&/A`_MS!F&[`X];O.&!O!#U$EY@!',0I$"@!&N`NC=QA(&K`&@@ M`99[H[R+%C@P`8K%`#F0!JT+ONLBOCDB?4C0`"HS`"!G40O`OC3A`V!@43R` M`3Y0OW*A`RB`J*P%])``E,+HX``5INP4IC!(4 M`&U>D`$/'`8U'!Q)1%!144@`02$"Q98/\$ M5H"]_8($G2H$!'`$(Z`$`/`!80"ZE$(C>`##I8P;?DS-Y!`M%"==U[(YB682 M%``%)9`$I/RT1K`%L(.,)N"F.&`%?:,`:A``\QP<]6S/UO`N:0,6]1(V^%)L M-H$#7_`K&:`%*^I\1]`"$2W1%!T@5/')/7S2US'1*5T>+HTH,!W30#'3B5+3 M-NT3.$W3.ST?/:TF.OW3%A'4:3+41,T.1JTD2)W4>;'4+-+43HT.4!W54ST> M5;TB4GW5'I+5'[+57'T-7OW580VH8TTA8%W6LG76"I+6:BT-;+T@;OW6"1+7 MOTG7T6K7`S+7>.T+>KW7?6VO?\T??!W81#;806G_V+:!V/91V(J-"6Y#EE=6 M#QS-V-[AV(]M"<0`3(E$+95MV?Z1V6P!24PA+Z;`!>LG"*`-'Z(]VD>A>)3D M5RTPV[1=V[9]V[B=V[J]V[S=V[[]V\`=W,(]W,1=W,9]W,AMVQ31VEXA<-F` M?,O@D`=WN(]WAAA<-@$*/'"23/V2.#P M3)(@8UC6-L^-"^YM6NMCWKD`WP:7-F"#"VIS98]&3KH05Y$&0B]G*"/!;ZE- MWE]!/-9877;E2)19+=:R60\$"9H$X3,@X402@K=PW2.1.<13-3(:"AE.#XFX M5G\@X;B`2H\T)E,)2KEP_VU-D8W-L.'%`^/ON(H,S@XF-`_Z,#V4YEE1\P(\ MWF\&!N0;='RXXLEH[5PM"LDA!;GFZD.0_$DSKPU/Y[>1!A4T;!$R>M!$E MWN/6$$&P%72@Q>2W\"GU`$513@MO#@]5CEE`-PN7\PUE\I;X M`J.SD$3(9"]['BIM6.9F3@UMB3X,MNB(%DZ!_@C7=!3(8W$@E`M!0MHMQ.B> M<.EC(V&:B>?Y,I"4L^%2R @/ASKZ8!.PND)X/X,XT[NU5#NSH#NZ.[M[-[NR!L(`#L_ ` end GRAPHIC 24 f30270sulcvf.gif GRAPHIC begin 644 f30270sulcvf.gif M1TE&.#EA2P*"`.9_`/___V!@8+R]P````*FJK.7FYYB9G&EJ;-C9V[^_P'EZ M>W!P<*2EJ.[O[\7&R8J+C;"QM/KZ^^SM[MK;W3H[//;V]\#!Q,G*S-75U]/4 MULC)R\S-SYR=G\3%Q^#AXO3T]`L+#+2UM][>X*6EIQP<'<_0TNGJZM;7V)24 MENCIZI"0DJ&AH^KJZ\?(RKFZO%565YF:FX6&A^;GZ-S=WX"`@,#`P//S\^OL M[?#P\.#@X)"0D*"@H-#0T+"PL/CX^./DY5Y>8'5V>"\O,-_@X>?HZ=W>WX&! MA%!04(V-D%)25/GY^??X^,#!P_+R\T!`0.OK[$9&2/#Q\>'BX\/$QG=X>M'2 MU-S=WN_P\#`P,.+BY/#P\?/S].CHZ=#1TY^@HH^0DJ*CI>WN[NSL[9*2D]'2 MT]O'B?'Q\J^PLJZNL)N;GI&1D]S MG[*RM)66E[:VN-C8V<+"Q+BXNJ>GJ;N\O5I:6\K+S>+CY/___R'Y!`$``'\` M+`````!+`H(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MH9L\`30X/#0T?S@+"SA_J@L\HK2UMK>XN;J[O+V^O\"#-#6G.G\]-:8XJC2R MP<_0T=+3U-76U[\]1Z^""[""JB0[V.3EYN?HZ>KKCS4Z-7\[\*K?J=R$-OGZ M^_S]_O\``PH<2+"@P8,($RIDR9,H4ZIV=])Y\##:HB'T0 M1GC8#T\TH588&!Q@``AS((!2$0X`00>`*BWHX(DH2JCBBF9Q!T!K18P`A1$4 MH"";32:BJ*-\+/;HHU20Z1<$^24X_^.3$KWXY-0JE1`:BH%6003 M%`Q@A!H)9)`@3DLV*69F498)90,O2I"2!`!,$`(025B0`8E0A3GFG7"9J>>* M/RS11!TT*$'$24]44`<4%,A9E9UX-MK5GI#:9P(`4@2!!)&"ED2$$AH$0<6- MBSHJ*F"1EGJ=5@0P($0+;R"A@1(_;*J!$`E\216CH^;*CJF\?K9I&%A^484? M$WPA!`9**-&!`5\D&1:NND9[3J_4'M9`!`@$(<04SOIQ@@!!"("!`2]T>Q6T MTJ9[3;7LUJ68:R`(L(&M&03!@(&@/JONONNTZZ]9FR)@X!@>JE0"$/Z5A2Z_ M#`?S[\-A;3K"^00M;$!D"0``05"2!PP@8+0`"" M_QXJ%5&%Q;KE+OWNU)O99P48!&&$$0:$R-K(_3O3O2;*B`!0*:"H$1H*!.UB&-P2Q@P!,$!$4K`$'*:@('+!0 M!R4T!494P0JEL/`81P`'(432@Z:TT!`U\"`.7C'"+"KE#QYQR@M[9`(M]"4! M6SN@)2A(CUCH8`%'2451!F&,#&Y$@:B@P3A*4<((1@%I,0%VPD#FK`R%_68`='P>8O5Z$#+%CQEPMPQR4YL@Q!B,2/%V0* M!T$)CJ:\PI##2$HS#[%*";VL`$Q(@A?0!ZD%]8`'R*@B0'FP`XQD4AB3?"8L M*LG`.L;C@M_(2`V\08]Y_H&0>MRF4M8)SVTF,)(<*80HI;C!)H+Q"#0@Y"0) M2E)VKB(`?]QH/'A0SB-`D!`SR*E.=\K3GOKTIT`-JE"'2M2B&O6H2$UJ4#W0 M!"440`-)H(`#)J#4JEKUJD#_K<`:)SE-9DC1AYH,:44=Z@H>1+&-J/B#*_P( MDD%44J:JZ,@RKME6",+1*%*4Y`Z:HL%?BN0CJI"'2P4QPH,:4H,4[<$3P5)/ M[)B@`@+@``4H8(0Y^$M]Z^3F*+_XQ3ZN,P?($$0/WGE(0W(0'CS(028W4D[" M>C"9G.U!3)-QE!Z\-I-.X.@&31C2#6(R(YCD[6![Z`Q#]B`5LPCL8AN+G1]H M00$DH``!7,#/&N8J!Z\=K".R"PGF7L<,*S"`&_#7+OUI5VG>Y!/KC@#0R@`!""D(0@D"``+9B3TQ9D`0&X^M6P?G4O M,]I&2W*SG,A\9D<,Z0VV?D.;#&1%;O6,Q)!P$*"&A*ELA?^!XDI_[=)$:\"! M'1.3`DC@`V8(0Q'J$!X'Q'(""`AWN$W'ZEB;6P`6T#-)O;K0(2*4'N',(D:Q M\$@CMA0<.K`B#B5J3G?\\9+TV*NS+0UM3;'!!7,@0Q%8(&.6$"$*2F"!'6"@ M*B,,8`Q]F.^"EM"`CGO\XQU?@KJ_(,@$)1>,(/S/*#+2@= M"&"(94E.$(0@8$`"5^C"`:!@.&@C/O6C\E$!;B"`>PT@")0E`!G",+2KF$`, MDH6`"UJ2`220H`BS$D#QC8]\_D&("":(@OK#4`(.D+H/)6B!&C:DI1'BFA/EW$>-ME"5M$8E%&#(;0@)?@18S05SB0 M78I7"$)D2HS`7138@16$@0I(6(T@@1$X@H:0@1Y3'S\0!FZ@!NZ'!,,'!0[P M/$60`0P@_SX'0`%T$`94\A2K\0,K($"U$A-]D`0V8X`'N$9"-&1`9@EOQ4#H M!%+0E&618&QSM`B.-E,)Q0A"%``?N'6&P$;7Q%>+0$0UP$N#,&R'0&%BZ%96 M6'..1TC<@'9L]T03Y0HZI&]4.#WT\009``?:(D!&$`0Q,'X!4@53``2,B`!7 M\(,W0017(`4K<`!(H`8!)A.%IX1+6`D-I4%+X4$:-&*_=`HDV%!1",0O3U%+4M'7% MZ%N8I$&*Q`U5MELMIT'854XE]HK&!H?)Q`VG8$C8*$);!V7CH/]8\%!0Q]!7 MO>8.<<011Y%*E9`=+;@!,$`"+8``NN<2".`&]P('12`&>+$%9``'%&``S6%X MG!@3"Z(#";"0#-F0"PE)7!5.KN`-VM!`-_4-[@!EC;1L^99O)311VMA2K/!X M(:E6$S5"NB1;(,013S9R)GE7[P!'@V!D+UER4M21)!EP&H%-`9!:B*11>L1% M/N$ M"ELY#]U@24($1S5`EFI'`V!H"MST0:!U%)R)3+4FF2*U;K]T7+Q$1*A433&5 M2?1P%%AP4T*$30XD1$9DFK_4F]WPA1K544(44\@0;SXD94\4$CTIA\O02/0` MD@[T2,F5EI/`&T^0`@(0`VS6`@8)$R>0!JXR>6M2!`L7!MH&!_-X=W\I%0NR M`PYYGPG`0CAD4-PTFN/@A)+&;O_TFD)D1:BD=AOA:\?@DI4D21L(#S2YE;8U MFK[P_V<3]9LO%6SEU(LMMW4)>D?Q(*0:I9:>\0,%,#'0UP$8(!43 M,`4#P`02,'LI\00K$&8'(`1\*00U.)]3@4!-R$02^0I'$$]*9ZF@S#()/",$SA ME*9*D1$^]*)(?)D$X0&).@M95@%)47V9VY40#>!P5]8`55(069 MHP!3BA(%T`<&X`5YX`)@``9!0%Y>NA,(*)S0I':$-1*FV(PD"(R2IO^**8B* M)N:`F+2!V$536\1%'I%R*$:!(K9%JD"*P4A8ZEJ+HHAB(:9%LY!:Q/B`W`B* M%D:-JZ!%LK@*[_2*X*BP?;5.#7@4#7@*#VN,HFAA=HBPY9ID$-A%)$2OONH9 M1*``2.`<83$[#``'!4"E)9$"2``%Q%JM^M(@*422C>"&B*."G?`98L`$08`" M*GL50W`!1I*L?O`$(V`$%P"S8G%\Y=FU MU@JVB%-M,A`'8W`I`4"U-8&V.`@"E#600I#_!!XP%YBC.1N`!#"@MU_+MUT# M$RDP!R0`!4!@!#R+!C)P$VB[!P(P`!!0!WK``0<0:G=0%R8K:B]+N:%BN5[S M$EG`!$@0!';@(7QA``2@GC#Q`QZ0/0<2NTA:GD#;`D+0!;)[+K1;NRU!!$P@ MM9"8!81S!X3;$L+[7Q<0NYPQ!-3:O'7RO)?K<`H0!%.;$A/`O2N1`F7P`RHK MO(P(8>);+4Q+OBA2`5+P!"E!!)'+`&V0O3]P,$R0!2D!M4)P`%[`!24A`O92 M`ME;O_V$OW=""JB)=BWZ"K$P8AM@!$Y0!45`!`60!71``T"7`1&L&LJK`/!K M$BEP!D'`LT8`!WC@_P$"D`1YD,(2K$84+";#T(VAI0S,X`R$4`"5F#TKP`>E ME@1,<`(ZK!IM4#P(,"@I,`(&H``>X`%'*(,/]L0[7";WV\-=H0W0Z)G?(`Z' M,,(90``T$@,@#(G:6P(#"`-$,"MPT+A^\`-ET`%"H`)>_,51$L9BS!7N0&5F MS`RH60@ZY0=%,`$>D%0B$`>":`1,7`0\905#8`58M_,F@',J?K%6# MO",780R&U!&`%1*,)Q4MD`1J@,>`_#&"7,H5(10)ZD$ZD!1+09)240!E,,LM M4\NV["3"7'#$7,RV<)W7>KW7?-W7?OW7;;T59%T1PAF5GYE![CC_V(JM.]%T"O9P=2RUV))- M.B@XV99]V9B=V>HP0KL5=F6G%!XT#KO,38OE""MW=:QEV+RP6GS&V0T4A[>P MK"Q_)9Q2XRY5-"Y[$1=1$A2PT#A_8JYI]#0XTKW_4:XIU2;7Z2*KL M9]D)"6REW#T$=AW!"THDVL?=239;"],=#T9T23X4EKG@#8[V#B;T3ZVE"P55 M3@4U#CDW3NC-0159W.@0;'&%C*B5:PHD95<83OD=HMQI"_EV$>XVX+9`E`%. M08F-"P#>C41V8;R0D:*]6R2U6=X85O9=#@QTP?I=#^"`"AK>",CF4`)>I+<@ M#P75X2Z)"R5.:?NYVO*@K&ARN`I)N0L!-5J\+',DU5'=O>'3`&^S$-V%Y)E" MO!0_?@@Q)4PDY0W)N`M,%%8LS@M+KDV_=-6Z`%#G>)WPP.-0#@[8-)HGSN6P MD%*E#>34,`X6W-M\MG4>X4ZM<`IGM]N'4)VRY=EFE^2A<%S#\$W!W0MVCD." MX':]$$@=8:!#?G8>6PMY1)9G9T5JCNA[AN;J`-N *3NFB/NI-&P@`.S\_ ` end GRAPHIC 25 f30270sumf.gif GRAPHIC begin 644 f30270sumf.gif M1TE&.#EA+0*"`.9_``("`[^_OX"`@+R]P&EJ;&!@8-G:W/___Z2EJ+*SM=C9 MVXF*B][>X+"PL'EZ>^SM[L#!P]'2U,3%QZBIJ\C)R\;&R9R=G^[O[QP<'.GJ MZN7EYM/4UL#!PLG*S=;7V.CIZO;W]^?GZ+JZO8(V-D"\O,'5V>-_@X5)25#H[ M/(&!A%!04$!`0.?HZ?#Q\=W>WT9&2.OK[)&1D^_P\.'BX\_0TMS=WK"QM)N; MGG)R<\/$QM#1T^SL[=K;W>KKZ^3DY3`P,/+R\[>XNNCHZ86&AV9F9X^0DI*2 MD[FZNX:&B-OWN[K&RLZ.DIM'2TY:7F:^PLJNLKIF:FW=X>FAI:H.$AO'Q M\I>8FI&2E)24EO'R\J>GJ9N(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MGCD%`C8Y`@)_-CP\-G^I/#FAL[2UMK>XN;J[O+V^H0(SICA_#3.E-JD"L;_- MSL_0T=+3U-6U#4BN@CRO@JDD.M;BX^3EYN?HZ8,S.#-_.NZIW:C:A#7W^/GZ M^_S]_O\``PH<2+"@P8,($RI9F#6+-ORYM.G3(T./7AT7M>O7E%6SGCT6MNW;?V73WLT3M^_?:G7S M'JX.N/'CEXDKOXJ\N?.VRZ-+?$Z]>DSATK-+L\Z].TKLVL,W\TZ>/'CQZ'>5 M7V_]?/KWMMC+=^X>OGU0\_,;KW^__R;]`,+VP`59/.3?@7(%J.!=/:#AA!(M M/;"%"3X`L`2"&-:RX(9S*8&"!44H<$%*/5RPQ0054H$`"!FVB!^',)[U`!-` M^."#$1/U.,2B"Z1P:(I*;'E$QA`H`5)1.CA)@L.``&$&1O\:1*9 M@I99Z*@B]7`"#T&$088%9+R`QP].>.'$CK&B,,`$1A!0@:87-X%7)1PA!!7)("'$-M2\$00---%[-"-[*Q# M,MQH78#0B`P]P])T)V*#U3C<0$]%\GS4@%+;V&!X-X+1,2NG-KHL%%&B\(`4`"4IQ$Q`9NU+P683SP&>YXT``" M(B$'21@$SL(QNS_DC7+A>)PWNL$-8T!O:MS(&Q(>.$&_D:)X,Y@>Y&;0M/%! M3A4XZ`+CNF&TI'P-!PV`VA\^0KRKM0]#TE/%4=)GE`V&[7W&48(3%$`!(P0I M"`2(VV0(TX`<&&-Q3LR!#BJ"-05V;Q[>8-X)=_<.HW7#(C.8G"!\^`?E`>^$ M.UQ'/$Z(,\IEI!#42UHJI#C!0>1`0H'.FYW]=!B&E.AD620L"-OW$;TG-9`>'3-EK7\ M"!4_@J2I59%Y29M<#`T!1-]D``42$`("4N`!_\7&$E]#80[),S(25I>DZ*F@>8``A"8,/#0"I3DM&4,0]8PL9*D@4J`&$`$;!-3'L: MGI\J!@I4X$$%H#!4/]```3[_*(`+;K-4IF;'J8*!`E:;`(0G#(`&/^A8$:JP MT]<0:VN!0X35DF),SVEM:3^;8CB340]\AI-G2=MT(0K[`@WL8/$S@":LS2^(F^M\%XPNX8#X3EP;T>17OOX*=%7 M_$T6!#1H83]Q6+^(M0@!Z)<"*E`$*/E`#2]%#6$NP(#B&O>XQ;V`%9^FM7<< MSQ423:4K*4>,B)["%72LX<^*![WF6<\4E9-'X4HQ6!3.]D6U!*`^,W;AN[V#(PSKB-JA;0\>Q-3:"CG,"0]/95%+ MT(`)FN`#$E0A`2L[F[.*4('+P`/ZDH`4%1"%&797V;*@MDQ^$@`I#\$$*D+V@<(M[->1V":S0 MX`(ZP<$`I'+WNT43[T9%F0$4L((/A&"$#GP[WY;8W!X=\>Q'-+NDJA:&(>9) M"%D\?,,;:00J_R;Q19!O:HYXN*@+\3FB+?P0#8M(\2L>(JZ&P$$2C%++=Z!BE@`FIAO#B&I+N+PD'Z#`L+^`APTH M`-/'RFQ&REOU8_I]N::(W-\IKHK_<.IR9Z50Q8;I83VJ:TZ"76,^H"L?M M495"< MXLWF+LA;6>/"O=KW&31OKM\NDK@#(+?5)`P.`L#\YCN?^=>3W2K"N(IBS'+! M5F1':ZF7X0ES-HQJK/$JHNV-Q\UZAZQ-8-2MQUKT#3G\K^#G#$:13@RK&=9) M$[WV>2G_OVE$@<840OP'0S-P0/X'6V&43[&G8Q-6##"40-Y7?C761N5X3=,#@"\#V$,#A[PSSR,(.1 M,P-=4'(W=F/$8VOD5(5=0X1NUD%@^&HUR`T(5'(W@`3,A$9*)V`-I`HW5`G$ MMP5R-P8N)C:$H0//EXW-=S'B.'(>+T$,"G1B.[[1#'!&.1,$,89@*_"1#ZLA.Q(!J M$D4*.=8XZ]2%&<9IQ)`$QL!RCA!O&9`%)Q`$0Q"")T4L"E>.=A0Y($%ZJA!8 M@B=/5W-KG3<(4E.+)2DUE<_1PF5=ZPL!Y,FE'HT=[JZ0TE(=[^,10*O\%U]B&1@@83/9`!>+B36\@`A/P`F'@ M`T,0`RS@`JBI:]S9G85Q$AD0!2X0!$=@!$+2`M>"$AI@`!'P!$-0``#P!E-` MF6?Q`0;P!+TU_P$1,`5YZ0Z(`#-"T8CNV9%NV9GNVEW1F1FL8%%%=[J`1'%$*:0@Z,ZI8*F"S(J$$ M"&`$>B"R?IL!;3JT?E&T:]L,/[&(3M-T\93_%!<5%B$P`+V%=SW@`@CP!(); M&H1;N!&A%C3;`&T:!4,@!&)RN9V1N9I;'&K1`]$):2*A`7L0!*=*NIYANJ>+ M#FRA!0,@!"?`,?EY:;([N[4K'7/A`NE&!"?`4>SVNX)!N\%;#G/1`U(@!`[@ M,>VBO*7;O,M!%TI0`4'2!L]JO8G!O-@K#G71`U3@`+L+OC`UOL1A%[FIOM?+ MOKP!OP@GO[M!OZ,BOO:['?A+*/J[OV;1OVGROP#L#`(\P`7,&@>,)@2L("2< MPH:UP@'2PBZ,7C"<_Q\R/,.>4,,``',B"/,B$7,B& M?,B(G,B*O,AY;"!F;`U_DPR,,SF)^,B67%A&0UZ,%PYT=,F>+%,G]\FB/,JD M7,I\P;@UF6I=N#3A0%@@MPE"%Q3KH);/8#BL?!1.LSU53&?L],H21X5`XN=,SKT8.@%11=,0-6F<]WFQ]R1P-XG6+Y$5..:@)T\=+48>6VWP, M$>M91Z&!TP!#QH1GZS#-1TO0P21=\C!.:80U"!W/N4",!BUJW*4T]YP)3L0. M`H;1Y3`X[&!/6F1/Z$Q"4;3/;%P-3T202E/1\O"R$2W1M]"#$S0XQ5!VA[<) M?@1!^ZS-T^!$-_W22#&WXT#1B'<4%%4.L],T\]?10OT*`I"-,MT,VMA<&1%' MB/@Y@'8)L\9/VF`U&5<.Y@/4=J4#L>;3+$L/=K,-.40.OU-VL<8XG)S5S#75 :SH#6:/T)>8T.>WT.,=D3>&W7@CW81AL(`#L_ ` end GRAPHIC 26 f30270suscf.gif GRAPHIC begin 644 f30270suscf.gif M1TE&.#EA,P*"`.9_`&!@8-G9V\W.T.[N[^SM[FEJ;)R=G]G:W````'EZ>_KZ M^];7V/;W]ZBIJ\C)R^7EYL#!PR(B(][?X.KJZ\;'R8V-D,S-S_W]_>#AXL'" MQ.;GZ-#1T\3%Q^GJZK6UMZRMK]'2U.CIZ@L+#+BYN[^_PM/4U7FYUY>8'5V>(&!A*2EJ%)25/___]75U]W>WR\O,/+R M\_?X^/#Q\?GY^5!04$9&2.OK[#H[//3T]$!`0.'BX]_@X?#P\;^_O_7V]K"Q MM/3U]:&AHY&1D_7U]C`P,+&QL^CHZ<_0TH6&AZ6EI]OHJJ*CI?'Q\IN;GLO,S(BNWN[JVNK^+CY/___R'Y!`$``'\` M+``````S`H(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^@ MH80M,8(TI3$MI'\M?S0THK&RL[2UMK>XN;J[O)HR+#(T+#4V,2RJI2PT-KW- MSL_0T=+3U-6@PW\PI3/&+3*"2LS6X^3EYN?HZ>@P`#(PV2Q_,S0P\4K?AB[Z M^_S]_O\``PH<2+"@P8,($RI5C9`0:)RQY$+$M\*'LS+KN'#B!/?3.*@2)`!.U#.2;*A`0/"F#/3 M4LRYLV>P51@)4`%*!0Q*3/(Y,@%`AS!S-N'-W^LR[MV^93(P0 M&3YA@)$D:DTR&9"C")L*18CP'4D@R9`<(G0,4:"[NW=*O\.+'^^'1Q((82+\ M:`*DQY`+D4F:;Q`D#@X0K*7P\(.#R@`.0?C01QE^L/7=@0@B0MZ"#"IVG@X5 MM-%&`4`T4<$7"A!`TA$6`%$`!GX\8$`$#AS!1!(!_-"##A0D9V"",";8X(PT M6H6#$4(HP,1(PE6PQ`(CX6!!#SXT8(035"@@1/\`/?PX$A$Y]`"%$2>LN,CEES<1<`$4#7A@Q!$[+%=!!7`D-Y(9.2"00P!#?-%>$`*XB8,` M/4#P@PX];!!%3EP6ZAV8B"9J5A(#;`%$$$L4$(`"YU5`AYLD24!"!2(TV<,/ M*F`J$@1+1/`&EB9I:>BJ@BGJZJLB(4$%!T#XL`0%;_C@@P$.+/$#B"CA($<> M]FMS-!*/$DE!;DA*[3O_OOPQR___/37;__]^.>O__[\]^]__X8K`@?\L`(, MP*$Y'HC"_Q;XO\N(3WSFHX$,EB*(8$@P*>Q0WB"DQ[$(IZ@$]&$`O&Q,4!$:8THTP0F*,U.K8`)0D!"$,0?]78YPY"!D8`S(::0%3)%!*C'8`AI"KI]6+ MKGF4%A(#>4*)P1.DV=!\8JYY>+RC'>-Q4=BQ,Q7,$$4@[8D0+-%S>Y?))4I6FSP9'X4@_%?'/1`4T"#U80`"&"H8AP!%1+X)=#92Z M30F*G_FV`+F/>'D?[!G->D*2L*.=:24M2%?]!C\X+1 M$5CHD@5/@)Y4FT>#F/IQIX?HZ9=PP`0I>*`'.3B8PZ+9/!C$SJ)_6.4[X8F^ M>]PT2E`PK:Q/A6@;A#`H6*$`5$%``V]Y6 M9LT=K]K*.YXY0,$'V2F"#E"`JI-)4;XSHZ]XF#"!'/C`"Q`80@AK]E\`ETS` MOY$;_P00P(&C:JS!#L88A'M3N"WHP`"B)!J&,[RP#?.&0S\(`M:\=L(6TK$1 MC:R!^4S!D1FG=1#SR&T]E/<*0B37QSKML2F<2V*HF9@S/*#"$(*@`S*LC;!U M'(1U7TQ5%HC#<9R*,%L>"8.$OWF&4PS(VF&6M@3`V`A)$Z]$=["PD M^F0`NS^S$Y;HVV6;=S,M',AJ#M]3%`&0P(1[$8`!1*A``2IPACK;F1`YB+6L M9SUK%S2OHOA<)49F9VBS!N.5S$!T^EHZ",IE5\HTK"MF\?]Y1P"8-@9:V#0H M8.5I*PRA`0$XCA'B4Q=7M^344.@#%*BPP^"(A@:6K3*H\TT,L`:[;3*4JQ)H;0KT`<`;T@7L8-@QB0U+6U-N*K:0ZB`#D2@ MWP0,80(*0$*HQ<(#)#!*`46]448J:N/'P;R1L'>L?!2*4J8*@\6G8DLVO,U97E"2^,"RU"5I@R=8 M#J?B=04LQ('692"%&.NK>M>\A(/J\``"8XM``Q8`11Q(8`%B*`!!3Q";C4>E M`TG@P1?6&ZX"&'0]1""[2OHSFR;HU^;E*<,&SF"#.I2@#+;GVX@C0>1&P`"0 M=V1$3$5/B55DXQVI6$4KA+S!&A4N``G@?0+@<'.3Q/P'2VB"!ZPPAZF8\3]- M0,!^2Z"!,@Q!`".P!#XP`22W`^1F!*0V!W+6`VLB`(-G3-/'?6WQ"[]6<$F! M#-K$<#424$60'75P``L6+`>`!CJ``!``!0$#%7$V)#_@`V@`!ANG`1_@`Q`@ M! M$`#M9D-$6(0]P0[2]4KS,#N.Q3X,](<+A`-2@'H^$``2X#]@0`)5`(=9`(AZ ML&0%@`4+@`'V(P'N(@=)8`$5H"W&(@;IU0!$`(BB.(JDR$`.1`GAAWV.4'V1 M<'V#0&2&I8K9T`*R:`C7YXJOF%N*H`H8N`BP2(NK6`@_MF6)P(J'@(NV6(O" MZ`D7(4SC%W6+UX2]P0,=,`=(<`2#*`)8X%XQ@0,I4@$;,!TT@?]V$I5%DA(M)B758E.B]0575'_5TKA=.B#$7XT`^(`F1A$4P?)".&Q M`SR`7]DB>PDPARNQ`RQC`%F0$M08E$S0F070(C&A`5OP1D=Y$B\R`YUTF[AY MFZ=$4H5E`UN56LAS1ZO5=L'DB-)2`5G`_UH.%/DNQ%"IT"L>P2BX5G:X``,GEFY;C#66F9MM'%)-#1]L9 M#S`%GVE59JA5F&.5D,'FFP7GGICC2%W!#JM$")P'<'?%5?TX7QPF!0:P7R2P M``L0!?%H$SB@`Q%@`>(H'\(Q``.0!$N5BEH`5JI5+<,#E-FD]:FF4[*E;8J5F$ME6JH&M*\$@& MRA%LE814Z7@#9V6Z*`F_X3E%8`!<\!5D$"508%*.3MW)`S)\'0*:F]7Y:G5E6_^!DGH4PHVH!&CA4OFJ4^>^JOO M(*ID>I9F6EUHRD_LX%*SPPP4I#YPE5NF1$D5E)G%Q!M.,"0YP*A0L?\#%K`$ M$.`"F,(#2'.H/E``[!4@/0``0=FHCDJ/]C0Y[/D.2I`,T!,#0<<*Q1FEVQD# M[(F@L`.LK5!HQ4!<@H"P1;JJ!;==9QEHU6D,,A99<95F4!J>(!$4^AEM=L2P MB;6>OZF?EI5*Z!-7)56Q%I5:'T%#`F>8<"JP0=I+QYE55@D`*T1I`=J6P)A/ M,]L*$T0,5L<;!!``44(&HDD37$`J#="A1O`!""`'3/``1!`%5GNUX"JO,W%" MJ3@*"SF,55EL5CE/0R9)=?J79'M'P)64DN25;JN58HF,:LN<40DYK.A<\94- ML'`*J,"V\W278DNV7\F8:4N+?9M]47D*S%G_;+>8?7KKBG_YE3I5#[`0?KGU M0J\X3Q%+?I;P&9[&`WH'E&-!!O#'!7>#`UP0/$FKM311A]^1CR6CK9Q6$]08 M%9XV!IJX!">@`631`5M0`!P`=WXP!Q8@`@T0KZR[HG:8-S;!!%RP`6ZPNB>! M!+@+!!$`!%>PIV6!`U40'9'!!'^R8LG[%:Z[O-]1$Q[D0U^P!C?!!"ZP`9R" MO1(`J&7!`W'P`Q"@!@2P`4V@`CLRON1KOFA#$VNP`>O(.Q9@!#2Q`VI`!!#2 M!%F1`OW2!`\JB`T.2_P`IJL%64;X@`/2 M:Q66V`0],`95G,-7C,4E1P`-0(,$@"E,<#@^H!\EP01S@`>8\A\"Y,2*T0$6 M4`0ED,9OS!(Z',>8,<>HEP!W;!(OT`"*.LDB$385X`68W`%&ZP.\RQL!$,J+ M/!6-[,B#X1)JT!A<#$<[$*&`H3;`$ M5Q`"$VT2.!`"(6![,:D!BOS2,V+1,5T1"E`Z[D%V4SL$8%!_1BU@2)W4ZB`$ MXYH#)SS5LUG55IT+CK,^2$$Y6(8Y.B4$'-`#):#-7/UF7OW5M]`ZNU5ILL-1 MHO4'0D`%&M#3;=U3;PW7M8`\R@.GZ?,\AU"*B)W_V(J]V(S=V(Z-V*<(V(1! M/IF%::'7%'W=U9*-&1'DC&GU"I8%K)B=V?+XUYL="RI$25T!0X24#<_Y!Z1] ME*9]VM00VZ5-VZQBVVZ-VZNBVT+WNFM MWEW"WIA4WNXM"O`=W_.M&_4]1O)]WY^0WU6TW_P]N_XM/0`>X)LPX'1HX)F! MX!Q4X`H^M`S..0[^X"`95O98/O(`D;`=X1).X>8P#+MU3],ZVAPN?1Y>#HO% M4%FZ6H)0XILSX2>>5D0!_XR8DX\O<.,XGN,ZON,\WN,^_N-`'N1"/N1$7N1& M?N1(GN1*ON1,KN/<$>/6H`KU$%,>0:I0?N7$I$Z0(SGO`!*-A^5@/D7*&.9D M7N9F?N;K$%,SA&/"4$BG=(1%EPE?!GZT.*J#=`MSKK9KGGBYD.<7$5/&H.&T MX.=U;@HFB0N$;A1=`3WUY%PLCN:[H$L5Y)=IYG2ZA!&+EE&8L(=*@1'BL$H' M:@N<+@^>?I)]3@^=+NE0%^JU,.JGI.J:);N>X.J-)ZVA[I#"%5F0_@Q0972+ M%N*WE@VZ?@GN"1+XT'.L>@O%;G2]KNR49NR\2:NVL.S'OF6730O43DC,MEME M1<&CN^X,O8X^F+ISPK!8EZ!4J%7MJWH+Z(X1O`F[L=#NU7ZIN"#OO(FI[-Y+ MZ4Y(\XX^<`KOWVX+4(5'LI2C3]=+,@3PCS!-AY0^LW/ML\#P,5IO`M\\#0^> M;$8+$@]+!2_HL2#QFHIP_JY=*!OPO,#HNTJ!=>4*.,7R$$\)D@.JD]="&2\+ M,6]*@(8+-Y_S2L"IM;#S?$Z!.I]3F88-4K?RFI?S)@\-NEBGH>#TS0#UO2#U 1O$#UNR#U5K_T6K_U118(`#L_ ` end GRAPHIC 27 f30270sudef.gif GRAPHIC begin 644 f30270sudef.gif M1TE&.#EA_`&"`.9_`.7FY[^_O_7V]F!@8%%14KR]P/___Z2EJ'!P<-C9V[&R MM.[N[YB9G-[>X`<'!XJ+C=;7V'Q]?L7&QZBHJMG:W,S-S[BYN]'2U.GJZL'! MQ.SM[B(B(\G*R[6UN-/4UNKJZZFJJ[6UM\C)RZ6EIYR=GVUN;ZRMK[FZO.?G MZ.#AXK"QLL'!P\O+S:VNL-S=WX"`@,#`P.OL[?/S\_#P\.#@X)"0D*"@H-#0 MT+"PL/CX^#H[/(&!A'5V>./DY6EJ;(V-D-_@X<_0TEY>8.?HZ2\O,/#Q\=W> MWQ<7&/+R\^OK[$!`0.'BXT9&2-75UZ&AH[>XNJ*CI='2T^SL[=S=WMK;W>[O M[\?(RY66E]SCIZH.$AGAY>\W.SW9V M=Z.DIIV>GY^@HH6&AXB)BO#P\:&BHX*"@X^0DMS+CY/___R'Y!`$``'\` M+`````#\`8(```?_@'^"@X2%AH>(B8J+C(V.CY"1DI.4E9:7F)F:FYR=GI^- M-P,O,SXN;J[O+HO,*4U?S@PI#.H+["]R\S- MSL_0T=+3AS@$K8((KH*H&S;4X.'BX^3EYK,P-3!_-NNHVZ?8A#+T]?;W^/GZ M^_S]_O\``PH<2+"@P8,($]XS<*ZAPT?M;M2P\>U/C1L27";C5,T+`K[LVX&CD(UDRI= MRK2ITZ=0F][42;6JI*A8LVK=RK6K5*M@PRKR2K:LV;-HE4X5RY9MVK=P_^/* M);NVK=VJ<_/JW.LB!5+!O>XLN7+,"-/ MW@P-L^?/H$%JYDQZ6>C3J!N/+LTZ5^K7L/6N;DV;5NS;N,_.KLW;4^[?P"'W M'FXKN/'C:HDKEX6\N7.7NY=+C_2\NO62T:=K9W2]>_?LV\,?\D[^.7CQZ#V6 M7V_\?'KQ[./_=O]^N_S[KP%@H%]_.O[_F/601!E;?+`$0_TE:`B`#)[5`P`L M88"$%@L8$8(//SA0A8(<#M+@AUIA4$49%"ZP11E)]$#2$%4(@,02)Y3`@P,, MZ/`$"`)TV"&(/"XUA`9(Y+#`$@6,@"&-A(&15"X1!-&6LE`FW%8$40"(`$!00!U,$#$HSQLH`(4 MDYXDZ*"L&6KJ1P"TF,<2(!R@@Q!$8-G!`9-V>9(1%Q2`1@40V(K2J*22=NJ8 M22`A91,DZ)#A`5X$\$0"OD8%;+";#>M<#T.XE*H`"R2@@A`S,C"`%1X801>U M[UEKG(19`!!`&BJB-`02[4I0PK(Z?/$$H+JAFYZZN+$HPP<)F"!$AA&XD81) M`'1AQ`B:UJAEKW!-ZV__8@"_-F\5#_LPXP%,?`$"$P><(*5(/2`!@!./JO#" MGWF->LHICKSS!PT_#97*!HG87$A',(SR0BR"K).(#4$-8H,22=-@]#$5"3+# M1(+0\((-K9AB=&\9AY9J%E%V.X,3?H`WII3^&01)Z/.HJN2H)0@$<,($3 M@(P'07#=7OZ"@)P5#P$X@"`!;J"$WQ5O&]NX'^:^H3YN9'`8Q;B9T[1Q/P)H MT(.!&T4-9@`#[V$0!NYSG\VF-H;';2-H1MF:#59AM*`1315B><%16H&]7PS% MA./)7V-ZT*T,,0`/%U#@26#'``<(@07F,LQ?<'`#8CBNBS>P@42F]CM"``^# MOQC<\;;1#K^A8B(PN)P@D/@'ZS4O<%LK(@9=,;.@Z(P;%_%@&#U(2%(D#14; MZ4A5-K)"HJQ#C,?X`P'^.`@76/*2F,RD)C?)R4YZ\O^3H`RE*$=)RE*:DI0` M2(($-G``*R3@E);,`!V:`,M:VG(+EB`?"Y'A0;^!+WP8G&0&2T$`-)KB#^E# MGCRP5S1W6.0&QX"A1BPRB.$!I9#L6$I_0*84VNDU3C8Q[#88`#*P!X.3A$+5%`$?^K42@^* M(``,K&1_3N#!#T(@1>!8C#4*Q2DE4KH5#<1-!P7(@@9.,H0N)$"F;8BG>2X& M'YY&!0,:J(`.5(`A)H0@"1K_B-='Y@6`)HAA`SI@04W;P]3P./4I`#A#$WQP M`!],B@4\4`$1"K!2"4WI7@Y@EMF^4U;[G)4E/2A3$E"`@AP4X;`8P(`4C""& M'_A``5GT@Q%8`(='2:`)$]@4$3(``GYYYZ9]=G,!C!!#"GG2@`"AP80<[$`*;9C2`O9[$ M`VQP;WQ\]PB;192XS.0;,K'ART%(Y'G(]!M1A'B_8=B@H<@\\"M&.MV+;1Y!PY#%-DC8/"T-D*N9>]\)4BG@A2!$=K1_ MR4`!IDSE*E/9@G?L93TC&4(4/A-[VI@Q&XDW"%50M(S.JP&"DZL$!+R#)S;$ M7'9'RZ("',P!`9C`;1\<92O[N0`90#,V@9??,KX#`?2SXQA\K+Q"?.]QC%/Q M.]R7C>;:L*]G;5@3>."J$]CMP38IQ!:J0.I2FYK4N%3Q-M0'/"['&(,W(,!# MF[L.R55$9WLC\CL:66`7(T[`VCAI=K6;TAY(H0]W.``1OO_P9%"'1+B$,,4Y MV;'BD4X[N8,,7T:D-A16K%AJ"&@S-@XW-&1F3XBBMACZ=J38J`&%3"``&WP@+U%!7#EJ$M`"P!``HPT M([G$O97PXIY)"`GX0*QN!0+XE9W@E/J=( M1_0[$ONN&B%86'.:2TV1^;[Y(82N")H7I;HY-T32"U=STQ3*22L@@@H.0+&8 MLT1F@B,N)`@7"6;N47*S-F/6$0ET,S;"9\?DAIP3U\P_;`!G`J;Q(;R>"%$, M@&CEMHC67]S(C2CMHI<84P]B4`'_`C"`"\"U^DKH&\@A)XUHU25D*71>78)* MC9Y>MYF+(^?HXT&3\ZD`O3-%1WG_'C1\NPX*"6\FC")^[WJUMGPJ;H`]T!,- MR(+[QCFUJ7MLS)B,.TSN-PI-`M4D8T*I+--`''NS@!Q)0ON(77X@:!.#Z MV,_^]<5G1E7$$8C68'WGTS%25Z@YQPV];QP'D?DR0_`0Y!,L;3=DH009&3?_)7?A%A0VZ61^N@9NB67(]33&C4=I8` M&X&U/T6@(GT@`B!``D(P`F8@`A*`!2BP4D!`6(35`$9P`E$@`2]H!!)@!%<@ M4VM``QI=%]>)H9H=D9YF`AIF`YK&$>Y MEPW^]SGW@SWNPTPY=T+L$!1VN%./P2)#T``M4`(?5XF1R`,4]O\#>'`"3Q`$ M5#`%$D<%'A`$&0`%5#4":]`"4'`""G`!09"/^IB/G]:)+X%UQ8!(B.9M!$`\ M44,#LH8*Y!>&R'!.$360Z$,,X+0.##8\]^0*8T=C.%!!VV!_0`&1Q-A0_@=K M0H1^>6>,SD0_$&1_Z2<,2+-MSG,*SU@4ZN`WP+`1<81WX+9^@;<5`G)80*D! MB>52*0$`,=`',?)Q6&(!4``!8)"/0-!A4^"/,6,)/L=^_E4U'3%Y4G-[.C=0 ME[<3E5&D)=-F6S,5S9GZV! M$H'U!D`P!6'0`C^P`Y!X!%@2`B#`B4MA!-('H;LIH:42$D.0!!?*`B<``LZG M`S.B-C\0!RMP_P(08`398J+L@9\H&@X&@`)1:04?N%I6%"N&MP<<$``48`3) MQZ/_X:,_2@U-4`"1&(D<6@`O1P%````["J4?(J53*@U5J@+QU0GLJ=\F@G6 M@`UZM`W>D$2&.BR(FJB8D`[KT*C(X&*%8$N^JF@&JJB.JJD2DJI1JGB M$!&M]X`8H4S@1`B1JJ>H.@X\08M)4P-#413_%JN2.JN`P:N'ZJMW`:RF,JG" MB@O$:BC&>JS%D:QCLJS,:AO.*B;0&JW,,:T]4JW6&IK8RB/:NJV=T/^MW@JN M5B&N(/*MY*H)YAJFZ4H5Z]H@Z-JN/?FN42JO.4&O`!*O]HJ-^'H?^KJO5]&O M_@JP#B&P`TNPYV"P\O&O".L("CM?#:N?#[L>#!NQBS"Q%&NQY("QP:6QX\"Q MY%&Q'@NI(&L=(CNRA5JRSG&R*)M.*EL=+-NRQ/:R2R6STD"S,&NS-XNS*ZNS MT<"S/>NSGP`U`W91/A%Y,PNT9"6TGB!$M$<^?NFR2AL<,;NMOW0U M4TNU3/L)TR-.&<1U?Q`#9GNV:)NV:KNV;-NV;ONV)NW M>KNW::L%7]L)9QF!ER.+?UNXO1DTBA,/U);_;8;;N`#7=(X;N9([N90K&4[3 M3YJ*-'(:@1SDENXF#0753Y'30YH*&%9C--\`.D2;&.;C.2TD9]2V8MA%394K M"3B#"F,49E7H//L52(AC/+=+#HKS#;^+NRM$?':A#8BS3\7P@*6`3FT!228U M2,$6=^H`>.%7NY/`D+1+?]Q`>Y)&#FJ&7$,Q0V0K%HA&"KGJEL@%&.1'O$63 MA^!;>[^DO7E#ALU54FHG:.<;#>T@1EPD:9`+%H:#C._`3#B#M&SA1?Z4J^5+ M2'K4O_;[-_PT/#Y1$=KPNOPKO/6D>=F@P&S!A8XSAP]83X$!/$B#BA7X0N[P M`DH`O1.\",H#"XW$0VZXJVXV%#4P/`TC10IZ(SJCL,-B`3^-9%U$X68#;!7, EDW9N]CC?P(5&_&TQ3`F?>Y$ZD5.U4<6;4<5:/,5>_,6D$@@`.S\_ ` end GRAPHIC 28 f30270f3027001.gif GRAPHIC begin 644 f30270f3027001.gif M1TE&.#EA7@!(`.9_`,/#P]G9V:2DI/_^_FQL;-75U>GIZ=[>WN'AX8.#@T1$ M1(J*BL`U.'-SGDI*2O+R\EU=7?CX^%%14=:N...%Q.<[.SJBHJ.&>G/OG MT]]S.?.^,=I2.>^=-^9JH\]!.>B/.+E86=FDH_S\_.B0./"P-/[Z[]EA.?;+ M6;A`-WAW=^RPH-U62N9GEO;(W-=..;@U-_W]_:HT-OWTW>J8-?#O[]!-.??, MX,%J;."GGNBDG...\O/_^_-%2.--OSL\^V:2^VB5-=;.2DI*?_______R'Y!`$``'\` M+`````!>`$@```?_@'^"@X2%AH>(B8J+C(V#?I"1DI.4E9:7F))P))R=GI\D M'YFCI*6FF19I2JNLK:XDI[&RLY2IKK>ML+2[O*,60<#!PL-!>D;';[W*RS&QV]W2WQ77XNJCY.70Y^GK\I4W0O;W^/E" M#Q_];F```X+IL&:>.BQ\$BI&X*4.))D1I/84*9>'N'35'CI7#B!'#&,.8,9LCD/&$F4PYS)XM9#+G M&4P*Q)<)H$.'[L*@M&DFJ+DD6O5KV,O MF4T;D^W;HW7O3OT;.&S9Q8U_1@XZMV[>OG\'AQ[=TG'JUD\S;[Y]>'?OT\$K M9X"]N>OGYL]3^HX\_/+>[LL3ER^)/N[U[9$'WWY"J?'$@0@FJ.`3(/S@X(,0 M%B'AA$6<82$.&&:((187='A!'%B50=V($X#`'R\BDHB212":IY/^23#;IY)/J8!!``#5$@@$- M8E0ICI0!A&`)!AD$T$(!!F`0I0<42.##"".T@$$!"_C@@@LZ7*'"`)$,T(,= M$9A`P`P$%##)`4#,8*@=D2`PPP@R^!"!)!BLD$`)+LC@@`PNQ)""!]B@*<$) M,O0AJ@,4I*"`!J**JH$"$>!YP`L-Z#`"JGU`L`*D":3J0`"1B$!K'R=XZ8A`079U.Q`"Y*HH"RT"T02)&S MP5A'\O*Z7A-]ZPH.:,##SRB#RP*J)2#@![;K:@E)#06@L8,X5T]"Q,DZS#ST MR"'HT(<"=1">,@(<0Q"U'[E"&X/C!E4N"0LGE]#WR"]HX(``&8C.JQAC.R#" MS!)0JT"[K>,]20XG$S![K2_(RP.6NGN1@J4+0*$WM0X<`)/KD:2>J@G+R^"Y M_P.WBJ$[`,KR0'P$)_?!PO;&6UD"M!`,L7RJ5T!BOJX1<*R`XI(PP-=$%0,# M6,)NV.">'V`'-`3Z87.I,$(=>4`@#E``0G@U"0@Z((,4A"% M)3#@):```!^T3U<*D$#5>E$S#92@!#XX00P:0`0Q4B(`,3B!($U@IDCL()"" M+('V1D&#',2@4E:$@`X(0`0U;A%E*O`"%*`PLTMD;$V3G*0$*#=Y"B_4P``> M,``-,-#)<"@02J1X)2PS( GRAPHIC 29 f30270f3027002.gif GRAPHIC begin 644 f30270f3027002.gif M1TE&.#EAY``D`.8``,7(R*6GIU575T5'2(>(A_GZ^K6YN927E^OLZW9W=F5H M:.+DX_7V]?S\^\W2U-G;V]WBXZJRM7V&ASD[/+W%R(N4E?O\_#$S-9RDI.[R M\EMD9FQS==/5TRXQ-/#Q\>;JZ_+T]/;Y^O[]_=39VSY"1/[^_38Y.[>^P:.B MH-+2SY23D%A=7_K[^YB=GDM14_'Q[F5M;^+AW?GY]XN-C/7U\OW^_L+#O_K[ M^;*QK^'FYZ6MK?O[^G=]?MO:U'R"@8.#@9V@G-G>X"TN,3,V-VQN;3D^0(., MC:"W$U-3=?7U%Q< M6C;GZ+6TM/?V]OCX^']]>X^. MA8Z0D'%Q<7Y_@.;GY#`N+[Z]NR\P,O3T]#4W.$)#0O[^_O___R'Y!``````` M+`````#D`"0```?_@'^"@X2$?GYI(2PEAX6.CY"1DI.4E9:7F)F:FYR:AR$. M$AHP$2`[G:BIJJNLK:Z:9F9^%CMW"7T",`)%%0VOO\#!PL.KLF8[*61$!A]7 M"PI4;L33U-76KR5F#5`"=@L6:&@6*&44U^?HZ>J$)6@]`A(,.PU(-6@X90#K M^ZQ^_.?^&@U2XZ;.ABIJ:F33IH*$EW\0,?D3$CBH3T(G`!X M@,4,T6!/R$APHN;,E#U$)'C0B:9!&BL!!O#X<*J:GW9GAE+RT^"%DXS7_VJH M:2`.`0X>"@Z0R=/@Y=-?6?H0@8-EC04<0W04,'-#Q`XP!+[P<+/#0C419QO0 MK21"2AT@(=*)8(.&!10M0TQ<&.)B`1NG?U^A"?`EP8(=4KATP!""EIL#7/H` MD7*&!1:S?D(PR6!Y;9(B"4"D2X.%Q0D27^:DY83.)"00`P%8)&$"0)\Z.8@(4@P00!M=+$&"U(<,`,X M_`FR0PX^D,`%=@8(VL8>,WQQ@1'SG*'9&68P`JF"633!@H*2T/A(&D"4<<&. M)F@Q0P`.C`!'&HZT<08'7V@AQ1K;`H.(&@8,H$46%J1A@0\=$)@O`%!!AB]^Z#2&&%Q<0`&"AV!FAAH6((&? M!7X@:(8(4V@9GB!=',*2!5@(7,"$(<=2P`XV^"`!'Q?HX(2U9UA0D2R#E!`" M#Q,`P`8+;;31TUEM2I*B!6I8TL@.(Y`PP`)F@`.!V4\TT/4C,1,Y"1*/&@)I M`1\(\$,!F#E2`A9G%+#!!#;<)T@#)Y@PQZ"QR!+$"@,\`2S5>_QQB`4M%-%' M'U=.=(B=:KQMN0C?=2$+&PTX/4C<5^_`W!ELE"#[&N*(P((%6?!P`1%.L)`& MFEF&A$2Q?ZBAPP1RC.!``:JSL<,:+J]T1F]B^S$%`@.(`4#%.^P0@!YS-%"? M_R0E(.&RW)$PF?/JZ/^Q0QP5$,&`&GX1HHT%`$PPAPRK9T!U#W1A!!*DH*8Y M@*T`%2A#I?YP-2WT@0\)H-$AFJ"#""S&$5-@`1.6(`7,?*`%.I`"^X#%@B2X MP`@ZH``%3J#""$0@!U?301$&$(,F!<$($5"1&4+0!'@)P@.0D\``2`"!P#&A M!2T`P+8P),NM00W^4XT/,B""`@#@`!%@PD!KPU([E@2RD,`AEF2UI7/"``$C0A"PI@`2<U MS2@AQU]H05&V$67.F`'`"3`!'SPP0O0H`8I MG&`#44@=,R]`!@2@`0LE:((&2)""U3FM`!@80``@Y0\L,,$%9*#!1Y"`!0M0 MP%564$,:J,,"#YRG!0IP01&HD(`76$0&=C@7#P*F(#!P8041N,`&"F#8;Q9@ M#A=P`30^D((O=.@*.QC#!#:0!0+H(0+/",!(B-8'/'0J"7!0P1#Z``46Y4%' M&V``_PJ^L($5F&`!+&!``O1P`0)X80)$D"$ER@#RL8Q:$V\`0E#*`# M)XA#`/K0`C$,P`D_Z8`0D#0(S-AN`0GXP@@J1B,P_$`(2.9.7[>052$,`1X& M0```5C,!*O!@!65`@1D*H`+5_*`!<`C`7$P`,(8%H/6OC`&IR@!2%(^@`3J,`#Q/]`A2:TP0!#N``/ MFH""#@#A#D450`XB+:`0$T@0`3D``$)J``%CB`!'H(I%/" M4X(S+(`')DY`9:RBK:#J(0'(70(`RD!C'UP``%=`D1,V8&P=-*$`S_F!!<"- MZ@=\P`Y$6``5N.`&-<1A!F7X]P[.PH('M$``$SB`!\*&GPQ6@`]:B((!"*`% M);;@K5:P``A20`<%1,$%7[A#+/#E%`0ET@I<&`(=^'8#%D#@!Q-0@F&%L`$% M#&$++B#"!#JP`0]D802')5P3DF"'JW^A#Q>@@I^%LH8Q'+,/>MC""E#^`S[, MP`,0:`$@#T``/M!!"F$XE`0<(`#_VBZ``9"NP`IV#8,?U(8!9G#""BZP>`4` M`<16UX,``G`!>%#!V&^000/BD`4#[+4/11"#QE+7E0)D(0D#D'MD4!`'#.@! M"`CX@1BL8+D:/&`"0DA`$'+@`%[:`=EZ($,`=*"W!"GUXP!4<-(`AR"$( M)Z##"C:G!1PP@!&/.,,.(J`:/A2A#!,0`!0RX((+V*$%/!##YGZ@'A60;P\" M$``'+'`%0!2)P`VB&5D3`85P0`+^W`E0`&HJ<9=>,(:6,!+U`%-$`#:L`"58$&#Q``*&`#,4`#M^4$ MVK<`EJ`E30`#/J`A:U$`>Q`'LA./00!YD\`"1``#;X`G`'.P`O?B`"JO0&;Q`%;L!596$/5Q``&K`"&W`` M*0`"MK,'95$\#P`#,+`$#%D":N`$1"#_!%J```'``SY`!U'@`8`#!2A05F=Y M!4NP11X0`DL`!`!@!6C)"FES"2%C9BF"!IZ@(`?C!VN`.EB@!A8C"#4!+NWC M![XS*P!HVV.G2A(@&3+6)4""SA&&;FFS7`>64P`CM`F]\Q,R!1,3,# M%VU`/]%).HSF0RJQFK%@)YGP*(UP,&9F2>%PED2",D61EE:A+SH#.U/PDI:# M(I@1.B@"-1L5A&G`6FP0.(TI`$NS!L#Y$34P*&B`+_2)!B)`FS6`(FTP$D3Q M*/?1/E$4126`,G!!7!LE"&BPB..A($:''P+A%`$!-SN1H8>0!FLC!`20%N39 M"+=YG"**(.!Q3Q86>BLZZB8H)01\T&#ULZ-".J2I4``KL`4"FBI$NJ1,B@D? M4`9"<`"%P7)-6J56Z@A!X%=1<*5