UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22311

Schwab Strategic Trust

(Exact name of registrant as specified in charter)

211 Main Street, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

Marie Chandoha
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 636-7000

Date of fiscal year end: December 31

Date of reporting period: September 30, 2014

Item 1. Schedule of Investments.

Schwab Strategic Trust
Schwab U.S. TIPS ETF™

Portfolio Holdings as of September 30, 2014 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

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

				Cost		Value
Holdings by Category				($)		($)
	99	.6%	U.S. Government Securities		501,872,960		488,731,491
	0	.2%	Other Investment Companies		908,571		908,571
	99	.8%	Total Investments		502,781,531		489,640,062
	0	.2%	Other Assets and Liabilities, Net				761,360
	100	.0%	Net Assets				490,401,422

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
U.S. Government Securities 99.6% of net assets
U.S. Treasury Obligations 99.6%
U.S. Treasury Inflation Protected Securities
2.00%, 01/15/16		10,998,063		11,388,164
0.13%, 04/15/16		22,105,913		22,375,384
2.50%, 07/15/16		10,762,861		11,432,203
2.38%, 01/15/17		9,333,298		9,973,469
0.13%, 04/15/17		24,875,278		25,225,024
2.63%, 07/15/17		8,002,089		8,729,799
1.63%, 01/15/18		8,449,918		8,978,038
0.13%, 04/15/18		27,656,240		27,898,232
1.38%, 07/15/18		8,334,037		8,860,164
2.13%, 01/15/19		7,753,475		8,474,315
0.13%, 04/15/19		18,626,579		18,678,920
1.88%, 07/15/19		8,809,558		9,621,711
1.38%, 01/15/20		10,683,866		11,375,006
1.25%, 07/15/20		16,418,886		17,445,067
1.13%, 01/15/21		18,780,044		19,713,224
0.63%, 07/15/21		19,935,852		20,346,929
0.13%, 01/15/22		22,003,758		21,505,153
0.13%, 07/15/22		22,695,714		22,167,358
0.13%, 01/15/23		22,801,080		22,074,410
0.38%, 07/15/23		22,616,327		22,393,783
0.63%, 01/15/24		22,563,253		22,690,059
0.13%, 07/15/24 (b)		15,142,241		14,548,362
2.38%, 01/15/25		14,593,681		17,099,708
2.00%, 01/15/26		10,630,741		12,110,753
2.38%, 01/15/27		8,553,552		10,139,979
1.75%, 01/15/28		8,562,505		9,544,539
3.63%, 04/15/28		7,251,877		9,860,305
2.50%, 01/15/29		8,261,715		10,094,825
3.88%, 04/15/29		8,800,091		12,435,585
3.38%, 04/15/32		3,332,855		4,637,867
2.13%, 02/15/40		4,542,619		5,624,307
2.13%, 02/15/41		5,808,620		7,236,263
0.75%, 02/15/42		10,197,104		9,347,889
0.63%, 02/15/43		7,458,108		6,594,608
1.38%, 02/15/44		7,576,195		8,110,089
Total U.S. Government Securities
(Cost $501,872,960)				488,731,491
	Number		Value
Security	of Shares		($)
Other Investment Companies 0.2% of net assets
Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		37,520		37,520
				37,520
Securities Lending Collateral 0.2%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		871,051		871,051
				871,051
Total Other Investment Companies
(Cost $908,571)				908,571
End of Investments

At 09/30/14, the tax basis cost of the fund’s investments was $503,764,714 and the unrealized appreciation and depreciation were $545,642 and ($14,670,294), respectively, with a net unrealized depreciation of ($14,124,652).

(a)	The rate shown is the 7-day yield.
(b)	All or a portion of this security is on loan. Securities on loan were valued at $854,133.

Under procedures approved by the fund’s Board of Trustees (the “Board”), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow

1

 Schwab U.S. TIPS ETF

Portfolio Holdings (Unaudited) continued

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

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

•  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.

•  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. 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 fund pursuant to the valuation procedures.

•  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 net asset values (“NAVs”).

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

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

•  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. Investments in mutual funds are valued daily at their NAV, which are classified as Level 1 prices.

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

•  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more

2 

 Schwab U.S. TIPS ETF

Portfolio Holdings (Unaudited) continued

valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of September 30, 2014:

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
U.S. Government Securities1		$—		$488,731,491		$—		$488,731,491
Other Investment Companies1		908,571		—		—		908,571
Total		$908,571		$488,731,491		$—		$489,640,062

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended September 30, 2014.

REG59499MAR14

3

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

Portfolio Holdings as of September 30, 2014 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

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

				Cost		Value
Holdings by Category				($)		($)
	99	.2%	U.S. Government Securities		618,916,028		619,387,839
	0	.4%	Other Investment Company		2,437,003		2,437,003
	99	.6%	Total Investments		621,353,031		621,824,842
	0	.4%	Other Assets and Liabilities, Net				2,508,835
	100	.0%	Net Assets				624,333,677

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
U.S. Government Securities 99.2% of net assets
U.S. Treasury Obligations 99.2%
U.S. Treasury Bonds
7.50%, 11/15/16		3,000,000		3,432,186
8.88%, 08/15/17		5,000,000		6,113,280
U.S. Treasury Notes
1.25%, 09/30/15		180,000		181,990
0.25%, 10/15/15		8,552,000		8,562,023
1.25%, 10/31/15		14,230,000		14,397,032
4.50%, 11/15/15		4,560,000		4,780,608
0.25%, 11/30/15		141,000		141,099
0.25%, 12/15/15		13,490,000		13,496,057
0.25%, 12/31/15		20,148,000		20,156,261
2.13%, 12/31/15		804,000		822,907
0.38%, 01/15/16		21,606,000		21,638,906
0.38%, 01/31/16		10,304,000		10,319,693
2.00%, 01/31/16		2,493,000		2,550,359
0.25%, 02/29/16		11,336,000		11,327,804
2.63%, 02/29/16		12,987,000		13,413,649
0.38%, 03/15/16		13,490,000		13,497,635
2.25%, 03/31/16		6,866,000		7,060,445
2.38%, 03/31/16		514,000		529,551
0.25%, 04/15/16		25,982,000		25,932,764
0.38%, 04/30/16		1,069,000		1,068,687
2.63%, 04/30/16		10,090,000		10,444,331
0.25%, 05/15/16		18,944,000		18,894,045
1.75%, 05/31/16		11,861,000		12,119,534
0.50%, 06/15/16		5,657,000		5,662,855
0.50%, 06/30/16		4,522,000		4,525,003
1.50%, 06/30/16		6,431,000		6,545,555
3.25%, 06/30/16		21,890,000		22,945,164
0.63%, 07/15/16		20,397,000		20,445,994
1.50%, 07/31/16		9,418,000		9,586,497
3.25%, 07/31/16		7,838,000		8,228,215
0.63%, 08/15/16		7,510,000		7,521,588
1.00%, 08/31/16		6,442,000		6,495,095
3.00%, 08/31/16		23,350,000		24,434,491
0.88%, 09/15/16		3,960,000		3,981,887
0.50%, 09/30/16		6,000,000		5,990,388
3.00%, 09/30/16		9,830,000		10,296,925
0.63%, 10/15/16		8,984,000		8,981,197
1.00%, 10/31/16		1,105,000		1,113,029
3.13%, 10/31/16		1,105,000		1,161,502
0.63%, 11/15/16		13,157,000		13,142,093
4.63%, 11/15/16		8,980,000		9,726,462
0.88%, 11/30/16		1,215,000		1,219,651
2.75%, 11/30/16		907,000		947,107
0.63%, 12/15/16		13,157,000		13,130,791
3.25%, 12/31/16		13,867,000		14,641,597
0.75%, 01/15/17		13,005,000		12,998,393
4.63%, 02/15/17		11,940,000		13,012,737
3.00%, 02/28/17		10,555,000		11,105,844
1.00%, 03/31/17		18,917,000		18,976,853
3.25%, 03/31/17		11,324,000		11,991,493
3.13%, 04/30/17		15,856,000		16,754,718
4.50%, 05/15/17		9,063,000		9,900,974
0.63%, 05/31/17		18,397,000		18,239,614
2.75%, 05/31/17		16,491,000		17,271,107
0.75%, 06/30/17		7,500,000		7,451,077
0.88%, 07/15/17		11,950,000		11,909,860
0.50%, 07/31/17		6,283,000		6,188,510
2.38%, 07/31/17		6,583,000		6,829,092
0.63%, 08/31/17		13,056,000		12,884,640
1.88%, 08/31/17		141,000		144,305
0.63%, 09/30/17		10,000,000		9,854,690
1.88%, 09/30/17		12,000,000		12,270,000
Total U.S. Government Securities
(Cost $618,916,028)				619,387,839
	Number		Value
Security	of Shares		($)
Other Investment Company 0.4% of net assets
Money Market Fund 0.4%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		2,437,003		2,437,003
Total Other Investment Company
(Cost $2,437,003)				2,437,003
End of Investments

At 9/30/14, the tax basis cost of the fund’s investments was $621,353,031 and the unrealized appreciation and depreciation

1

 Schwab Short-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

were $532,166 and ($60,355), respectively, with a net unrealized appreciation $471,811.

(a) The rate shown is the 7-day yield.

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

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

•  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.

•  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. 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 fund pursuant to the valuation procedures.

•  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 net asset values (“NAVs”).

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

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

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

2 

 Schwab Short-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of September 30, 2014:

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
U.S. Government Securities1		$—		$619,387,839		$—		$619,387,839
Other Investment Company1		2,437,003		—		—		2,437,003
Total		$2,437,003		$619,387,839		$—		$621,824,842

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended September 30, 2014.

REG59498SEP14

3

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

Portfolio Holdings as of September 30, 2014 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

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

				Cost		Value
Holdings by Category				($)		($)
	99	.3%	U.S. Government Securities		231,051,670		228,541,965
	0	.1%	Other Investment Company		336,045		336,045
	99	.4%	Total Investments		231,387,715		228,878,010
	0	.6%	Other Assets and Liabilities, Net				1,266,202
	100	.0%	Net Assets				230,144,212

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
U.S. Government Securities 99.3% of net assets
U.S. Treasury Obligations 99.3%
U.S. Treasury Bonds
8.50%, 02/15/20		634,000		850,550
8.75%, 05/15/20		469,000		641,010
8.75%, 08/15/20		2,110,000		2,906,360
U.S. Treasury Notes
0.63%, 11/30/17		4,220,000		4,144,500
2.25%, 11/30/17		1,639,000		1,692,459
0.75%, 12/31/17		6,230,000		6,131,684
3.50%, 02/15/18		3,552,000		3,810,628
0.75%, 02/28/18		3,502,000		3,435,791
2.75%, 02/28/18		5,903,000		6,188,003
0.63%, 04/30/18		1,011,000		984,461
1.38%, 06/30/18		1,715,000		1,710,177
1.38%, 07/31/18		5,247,000		5,226,301
4.00%, 08/15/18		8,712,000		9,547,812
1.50%, 08/31/18		4,880,000		4,878,282
1.38%, 09/30/18		4,979,000		4,948,464
1.25%, 10/31/18		3,455,000		3,411,947
3.75%, 11/15/18		4,041,000		4,395,060
1.25%, 11/30/18		2,833,000		2,794,267
1.38%, 12/31/18		4,712,000		4,664,696
1.25%, 01/31/19		2,796,000		2,749,472
2.75%, 02/15/19		1,956,000		2,047,459
1.38%, 02/28/19		3,210,000		3,169,374
1.50%, 02/28/19		2,464,000		2,446,772
1.25%, 04/30/19		2,120,000		2,077,931
3.13%, 05/15/19		3,444,000		3,660,462
1.50%, 05/31/19		1,060,000		1,049,069
1.00%, 06/30/19		6,900,000		6,662,274
1.63%, 06/30/19		1,072,000		1,066,431
0.88%, 07/31/19		3,535,000		3,387,385
1.63%, 07/31/19		3,144,000		3,124,473
3.63%, 08/15/19		4,130,000		4,490,248
1.00%, 08/31/19		3,000,000		2,887,383
3.38%, 11/15/19		3,091,000		3,328,741
1.00%, 11/30/19		2,231,000		2,137,925
1.13%, 12/31/19		3,331,000		3,207,650
3.63%, 02/15/20		2,537,000		2,766,223
1.25%, 02/29/20		4,676,000		4,518,914
1.13%, 04/30/20		744,000		711,799
3.50%, 05/15/20		3,051,000		3,307,473
1.38%, 05/31/20		4,424,000		4,285,060
2.63%, 08/15/20		5,181,000		5,357,273
2.00%, 09/30/20		1,934,000		1,928,863
1.75%, 10/31/20		1,976,000		1,939,104
2.63%, 11/15/20		4,296,000		4,431,088
2.00%, 11/30/20		2,232,000		2,220,318
2.38%, 12/31/20		2,161,000		2,195,611
2.13%, 01/31/21		4,753,000		4,753,371
3.63%, 02/15/21		3,925,000		4,282,544
2.00%, 02/28/21		1,715,000		1,700,597
2.25%, 04/30/21		2,385,000		2,397,297
3.13%, 05/15/21		3,953,000		4,189,718
2.00%, 05/31/21		1,979,000		1,956,273
2.13%, 06/30/21		1,707,000		1,699,732
2.25%, 07/31/21		2,304,000		2,312,191
2.13%, 08/15/21		2,766,000		2,752,709
2.00%, 08/31/21		1,500,000		1,479,785
2.00%, 11/15/21		4,528,000		4,458,667
2.00%, 02/15/22		1,372,000		1,347,776
1.75%, 05/15/22		4,280,000		4,115,657
1.63%, 08/15/22		3,693,000		3,507,342
1.63%, 11/15/22		1,117,000		1,055,914
2.00%, 02/15/23		9,364,000		9,088,202
1.75%, 05/15/23		3,440,000		3,261,013
2.50%, 08/15/23		3,394,000		3,414,683
2.75%, 11/15/23		4,587,000		4,702,391
2.75%, 02/15/24		6,664,000		6,821,750
2.50%, 05/15/24		2,479,000		2,480,839
2.38%, 08/15/24		3,284,000		3,246,287
Total U.S. Government Securities
(Cost $231,051,670)				228,541,965

1

 Schwab Intermediate-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Other Investment Company 0.1% of net assets
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)		336,045		336,045
Total Other Investment Company
(Cost $336,045)				336,045
End of Investments

At 09/30/14, the tax basis cost of the fund’s investments was $231,387,715 and the unrealized appreciation and depreciation were $364,197 and ($2,873,902), respectively, with a net unrealized depreciation of ($2,509,705).

(a) The rate shown is the 7-day yield.

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

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

•  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.

•  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. 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 fund pursuant to the valuation procedures.

•  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 net asset values (“NAVs”).

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

2 

 Schwab Intermediate-Term U.S. Treasury ETF

Portfolio Holdings (Unaudited) continued

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. Investments in mutual funds are valued daily at their NAV, which are classified as Level 1 prices.

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of September 30, 2014:

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
U.S. Government Securities1		$—		$228,541,965		$—		$228,541,965
Other Investment Company1		336,045		—		—		336,045
Total		$336,045		$228,541,965		$—		$228,878,010

¹ As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended September 30, 2014.

REG59500SEP14

3

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

Portfolio Holdings as of September 30, 2014 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

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

				Cost		Value
Holdings by Category				($)		($)
	0	.5%	Asset-Backed Obligations		4,580,991		4,572,326
	2	.0%	Commercial Mortgage-Backed Securities		18,837,865		18,775,279
	23	.1%	Corporate Bonds		211,519,017		213,213,164
	5	.2%	Foreign Securities		47,787,381		47,831,888
	28	.6%	Mortgage-Backed Securities		262,671,773		264,642,639
	1	.0%	Municipal Bonds		8,974,121		9,122,635
	38	.8%	U.S. Government and Government Agencies		359,371,483		359,109,727
	0	.4%	Other Investment Company		3,334,696		3,334,696
	3	.8%	Short-Term Investments		34,999,936		34,999,936
	103	.4%	Total Investments		952,077,263		955,602,290
	(3	.4)%	Other Assets and Liabilities, Net				(31,032,127	)
	100	.0%	Net Assets				924,570,163

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Asset-Backed Obligations 0.5% of net assets
Capital One Multi-Asset Execution Trust
Series 2007-A7 Class A7
5.75%, 07/15/20 (b)		250,000		279,890
Chase Issuance Trust
Series 2012-A3 Class A3
0.79%, 06/15/17 (b)		300,000		300,807
Series 2007-A3 Class A3
5.23%, 04/15/19 (b)		100,000		109,388
Citibank Credit Card Issuance Trust
Series 2005-A2 Class A2
4.85%, 03/10/17 (b)		100,000		101,992
Series 2003-A7 Class A7
4.15%, 07/07/17 (b)		100,000		102,859
Series 2006-A3 Class A3
5.30%, 03/15/18 (b)		150,000		159,965
Series 2007-A8 Class A8
5.65%, 09/20/19 (b)		500,000		560,034
Series 2008-A1 Class A1
5.35%, 02/07/20 (b)		200,000		224,131
Series 2014-A1 Class A1
2.88%, 01/23/23 (b)		225,000		228,775
Ford Credit Auto Owner Trust
Series 2012-B Class A4
1.00%, 09/15/17 (b)		200,000		200,742
Series 2012-C Class A4
0.79%, 11/15/17 (b)		176,000		176,385
Series 2013-A Class A4
0.78%, 05/15/18 (b)		100,000		99,870
Series 2013-C Class A4
1.25%, 10/15/18 (b)		225,000		226,014
Honda Auto Receivables Owner Trust
Series 2011-3 Class A3
0.88%, 09/21/15 (b)		12,269		12,276
Series 2012-4 Class A3
0.52%, 08/18/16 (b)		224,600		224,816
Hyundai Auto Receivables Trust
Series 2013-A Class A4
0.75%, 09/17/18 (b)		170,000		169,560
Series 2013-C Class A4
1.55%, 03/15/19 (b)		150,000		151,064
Mercedes Benz Auto Lease Trust
Series 2013-B Class A4
0.76%, 07/15/19 (b)		200,000		200,320
Nissan Auto Receivables Owner Trust
Series 2012-A Class A3
0.73%, 05/16/16 (b)		36,914		36,958
Series 2013-A Class A4
0.75%, 07/15/19 (b)		200,000		199,532
Series 2013-B Class A4
1.31%, 10/15/19 (b)		100,000		100,387
Volkswagen Auto Loan Enhanced Trust
Series 2014-1 Class A3
0.91%, 10/22/18 (b)		300,000		299,361
Series 2012-2 Class A4
0.66%, 03/20/19 (b)		200,000		199,302
World Financial Network Credit Card Master Trust
Series 2013-A Class A
1.61%, 12/15/21 (b)		210,000		207,898
Total Asset-Backed Obligations
(Cost $4,580,991)				4,572,326
Commercial Mortgage-Backed Securities 2.0% of net assets
Banc of America Commercial Mortgage Trust
Series 2007-2 Class A4
5.78%, 04/10/49 (a)(b)		500,000		543,186
Series 2007-4 Class A4
5.95%, 02/10/51 (a)(b)		171,668		188,703
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2005-4 Class A5A
4.93%, 07/10/45 (b)		361,000		369,071

1

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Bear Stearns Commercial Mortgage Securities
Series 2005-PWR8 Class A4
4.67%, 06/11/41 (b)		174,729		177,189
Series 2006-T24 Class A4
5.54%, 10/12/41 (b)		608,714		652,408
Series 2007-T28 Class A4
5.74%, 09/11/42 (a)(b)		1,590,000		1,751,903
Series 2007-T26 Class A4
5.47%, 01/12/45 (a)(b)		890,000		964,575
Series 2007-PW17 Class A4
5.69%, 06/11/50 (a)(b)		300,000		328,258
CFCRE Commercial Mortgage Trust
Series 2011-C1 Class A4
4.96%, 04/15/44 (b)(c)		200,000		222,346
Citigroup Commercial Mortgage Trust
Series 2013-GC17 Class A4
4.13%, 11/10/46 (b)		150,000		159,112
Comm 2014-Ccre14 Mortgage Trust
Series 2014-CR14 Class A3
3.96%, 02/10/47 (b)		240,000		251,843
Commercial Mortgage Loan Trust 2008-LS1
Series 2008-LS1 Class A4B
6.24%, 12/10/49 (a)(b)		468,079		507,524
Fannie Mae
Series 2014-M6 Class A2
2.68%, 05/25/21 (b)		650,000		652,430
Series 2011-M5 Class A2
2.94%, 07/25/21 (b)		550,000		559,624
Freddie Mac
Series K704 Class A2
2.41%, 08/25/18 (b)		70,000		71,544
Series K708 Class A2
2.13%, 01/25/19 (b)		100,000		100,836
Series K710 Class A2
1.88%, 05/25/19 (b)		30,000		29,813
Series K014 Class A1
2.79%, 10/25/20 (b)		666,495		690,032
Series K714 Class A2
3.03%, 10/25/20 (b)		290,000		300,676
Series K014 Class A2
3.87%, 04/25/21 (b)		165,000		177,826
Series K017 Class A2
2.87%, 12/25/21 (b)		100,000		101,450
Series K026 Class A2
2.51%, 11/25/22 (b)		1,100,000		1,078,667
Series K027 Class A2
2.64%, 01/25/23 (b)		220,000		217,487
Series K033 Class A1
2.87%, 02/25/23 (b)		145,676		149,747
Series K033 Class A2
3.06%, 07/25/23 (b)		240,000		243,116
Series K035 Class A2
3.46%, 08/25/23 (a)(b)		450,000		469,351
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		415,000		447,446
GS Mortgage Securities Trust
Series 2013-GC12 Class A4
3.14%, 06/10/46 (a)(b)		195,000		193,451
Series 2013-GC16 Class A2
3.03%, 11/10/46 (b)		400,000		413,281
JP Morgan Chase Commercial Mortgage Securities Trust
Series 2005-LDP4 Class A4
4.92%, 10/15/42 (a)(b)		185,951		190,588
Series 2012-C6 Class A3
3.51%, 05/15/45 (b)		400,000		412,304
Series 2012-CBX Class A4
3.48%, 06/15/45 (b)		250,000		257,924
Series 2011-C4 Class A4
4.39%, 07/15/46 (b)(c)		400,000		433,561
Series 2013-C14 Class A2
3.02%, 08/15/46 (b)		1,000,000		1,030,908
Series 2011-C5 Class A3
4.17%, 08/15/46 (b)		400,000		430,126
Series 2007-CB18 Class A4
5.44%, 06/12/47 (b)		386,758		416,928
Series 2007-CB20 Class A4
5.79%, 02/12/51 (a)(b)		250,000		273,434
LB-UBS Commercial Mortgage Trust
Series 2005-C5 Class A4
4.95%, 09/15/30 (b)		203,847		207,377
Merrill Lynch Mortgage Trust
Series 2008-C1 Class A4
5.69%, 02/12/51 (b)		194,677		214,509
Morgan Stanley Bank of America Merrill Lynch Trust
Series 2013-C13 Class A2
2.94%, 11/15/46 (b)		280,000		287,201
Wachovia Bank Commercial Mortgage Trust
Series 2005-C21 Class A4
5.41%, 10/15/44 (a)(b)		165,480		170,558
Series 2006-C23 Class A5
5.42%, 01/15/45 (a)(b)		400,000		419,686
Series 2006-C29 Class A4
5.31%, 11/15/48 (b)		196,591		210,024
Wells Fargo Commercial Mortgage Trust
Series 2013-LC12 Class A4
4.22%, 07/15/46 (a)(b)		500,000		534,502
Series 2013-C12 Class A4
3.20%, 03/15/48 (b)		145,000		145,056
WFRBS Commercial Mortgage Trust
Series 2013-C11 Class A2
2.03%, 03/15/45 (b)		200,000		201,348
Series 2013-C14 Class A5
3.34%, 06/15/46 (b)		100,000		100,751
Series 2013-C15 Class A4
4.15%, 08/15/46 (a)(b)		255,000		271,671
Series 2013-C12 Class A2
2.07%, 03/15/48 (b)		550,000		553,928
Total Commercial Mortgage-Backed Securities
(Cost $18,837,865)				18,775,279
Corporate Bonds 23.1% of net assets
Finance 7.7%
Banking 5.1%
Abbey National Treasury Services PLC
4.00%, 04/27/16		100,000		104,635
3.05%, 08/23/18		300,000		311,199
American Express Co.
8.13%, 05/20/19		250,000		312,559

2 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
American Express Credit Corp.
2.80%, 09/19/16		500,000		516,763
2.38%, 03/24/17		300,000		307,173
Bank of America Corp.
5.25%, 12/01/15		600,000		628,490
6.05%, 05/16/16		600,000		644,479
5.75%, 08/15/16		100,000		108,074
5.42%, 03/15/17		500,000		541,821
6.88%, 04/25/18		300,000		346,299
5.65%, 05/01/18		800,000		890,566
2.65%, 04/01/19		750,000		748,489
5.63%, 07/01/20		250,000		282,649
5.88%, 01/05/21		300,000		344,551
5.00%, 05/13/21		150,000		164,957
3.30%, 01/11/23		600,000		585,821
4.00%, 04/01/24		500,000		505,806
6.22%, 09/15/26		150,000		171,656
7.75%, 05/14/38		250,000		338,876
5.88%, 02/07/42		250,000		300,659
4.88%, 04/01/44		100,000		104,098
Bank of Montreal
2.38%, 01/25/19 (b)		500,000		504,463
Bank of New York Mellon Corp.
2.50%, 01/15/16		250,000		256,106
2.30%, 07/28/16		100,000		102,708
Bank of Nova Scotia
1.38%, 07/15/16		200,000		201,933
2.05%, 10/30/18		250,000		249,543
Bank of Tokyo-Mitsubishi UFJ Ltd.
2.35%, 02/23/17		100,000		102,322
Barclays Bank PLC
5.00%, 09/22/16		100,000		107,399
5.14%, 10/14/20		200,000		216,022
BB&T Corp.
3.20%, 03/15/16 (b)		500,000		517,108
3.95%, 03/22/22 (b)		100,000		105,420
BNP Paribas S.A.
3.60%, 02/23/16		250,000		259,161
5.00%, 01/15/21		200,000		222,467
3.25%, 03/03/23		150,000		148,026
Capital One Bank USA NA
2.40%, 09/05/19 (b)		250,000		247,668
3.38%, 02/15/23		750,000		736,136
Capital One Financial Corp.
3.15%, 07/15/16		650,000		673,257
4.75%, 07/15/21		250,000		272,132
Citigroup, Inc.
3.95%, 06/15/16		1,050,000		1,103,260
1.70%, 07/25/16		150,000		151,588
4.45%, 01/10/17		750,000		799,538
4.05%, 07/30/22		500,000		507,261
5.50%, 09/13/25		500,000		545,637
6.68%, 09/13/43		250,000		307,502
Credit Suisse USA, Inc.
4.38%, 08/05/20		400,000		433,792
Deutsche Bank AG
1.35%, 05/30/17		100,000		99,380
3.70%, 05/30/24		200,000		198,663
Fifth Third Bancorp
5.45%, 01/15/17		100,000		108,811
Goldman Sachs Group, Inc.
3.63%, 02/07/16		250,000		258,441
5.75%, 10/01/16		500,000		543,171
5.63%, 01/15/17		750,000		814,772
5.95%, 01/18/18		600,000		672,204
2.38%, 01/22/18		1,000,000		1,010,861
6.15%, 04/01/18		500,000		564,049
5.38%, 03/15/20		250,000		278,541
5.25%, 07/27/21		450,000		499,303
5.75%, 01/24/22		100,000		113,821
3.63%, 01/22/23		250,000		248,611
3.85%, 07/08/24 (b)		400,000		398,120
6.75%, 10/01/37		100,000		119,604
4.80%, 07/08/44 (b)		250,000		252,377
HSBC Holdings PLC
5.10%, 04/05/21		850,000		957,845
6.50%, 09/15/37		200,000		246,844
HSBC USA, Inc.
5.00%, 09/27/20		400,000		437,717
JPMorgan Chase & Co.
2.60%, 01/15/16		1,000,000		1,021,547
6.00%, 01/15/18		1,750,000		1,970,549
6.30%, 04/23/19		450,000		522,286
3.38%, 05/01/23		250,000		239,749
6.40%, 05/15/38		300,000		378,830
5.40%, 01/06/42		300,000		342,183
KeyBank NA
1.10%, 11/25/16 (b)		100,000		100,203
Lloyds Bank PLC
4.88%, 01/21/16		550,000		578,791
4.20%, 03/28/17		200,000		213,997
2.30%, 11/27/18		250,000		250,817
6.38%, 01/21/21		500,000		595,783
Manufacturers & Traders Trust Co.
5.63%, 12/01/21 (a)(b)		250,000		260,625
Morgan Stanley
5.45%, 01/09/17		1,050,000		1,141,111
5.95%, 12/28/17		750,000		840,634
6.63%, 04/01/18		200,000		229,226
7.30%, 05/13/19		200,000		238,791
2.38%, 07/23/19		500,000		492,426
3.75%, 02/25/23		650,000		650,317
4.10%, 05/22/23		250,000		249,579
5.00%, 11/24/25		500,000		523,576
6.25%, 08/09/26		150,000		180,762
7.25%, 04/01/32		100,000		133,068
6.38%, 07/24/42		400,000		501,226
National Australia Bank Ltd.
3.00%, 01/20/23		250,000		245,018
PNC Bank NA
2.95%, 01/30/23 (b)		250,000		243,086
PNC Financial Services Group, Inc.
3.90%, 04/29/24 (b)		500,000		498,691
PNC Funding Corp.
5.63%, 02/01/17		300,000		327,220
Rabobank Nederland
4.63%, 12/01/23		450,000		467,075
Regions Financial Corp.
2.00%, 05/15/18 (b)		500,000		494,525
Royal Bank of Canada
2.63%, 12/15/15		225,000		230,395
1.20%, 09/19/17		250,000		248,851
2.20%, 07/27/18		250,000		253,181

3

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Royal Bank of Scotland Group PLC
4.38%, 03/16/16		350,000		366,873
6.40%, 10/21/19		200,000		232,937
Santander Holdings USA, Inc.
4.63%, 04/19/16		50,000		52,688
Sumitomo Mitsui Banking Corp.
1.80%, 07/18/17		500,000		503,551
Svenska Handelsbanken AB
2.88%, 04/04/17		250,000		260,050
Toronto-Dominion Bank
2.13%, 07/02/19		500,000		496,014
UBS AG
5.88%, 12/20/17		600,000		676,023
5.75%, 04/25/18		100,000		112,853
2.38%, 08/14/19		1,000,000		991,897
4.88%, 08/04/20		300,000		334,387
UBS Preferred Funding Trust V
6.24%, 05/29/49 (a)(b)		100,000		105,500
US Bancorp
3.00%, 03/15/22 (b)		100,000		99,782
Wachovia Corp.
5.75%, 02/01/18		500,000		564,041
5.50%, 08/01/35		250,000		284,515
Wells Fargo & Co.
3.68%, 06/15/16 (a)		350,000		366,068
1.40%, 09/08/17		350,000		349,111
5.63%, 12/11/17		150,000		168,003
2.13%, 04/22/19		500,000		494,465
3.45%, 02/13/23		250,000		245,925
5.38%, 11/02/43		175,000		191,871
Westpac Banking Corp.
4.88%, 11/19/19		400,000		446,712
				46,860,588
Brokerage 0.2%
BlackRock, Inc.
5.00%, 12/10/19		150,000		169,705
Jefferies Group LLC
3.88%, 11/09/15		300,000		309,810
5.50%, 03/15/16		250,000		265,918
5.13%, 01/20/23		250,000		266,174
6.25%, 01/15/36		500,000		528,801
Nomura Holdings, Inc.
6.70%, 03/04/20		250,000		297,889
				1,838,297
Finance Company 0.6%
American Express Co.
6.80%, 09/01/66 (a)(b)		250,000		267,500
GATX Corp.
1.25%, 03/04/17		100,000		99,332
5.20%, 03/15/44 (b)		100,000		106,723
General Electric Capital Corp.
5.00%, 01/08/16		275,000		289,953
1.50%, 07/12/16		250,000		253,147
1.63%, 04/02/18		500,000		499,528
6.00%, 08/07/19		100,000		116,752
4.38%, 09/16/20		300,000		328,390
4.63%, 01/07/21		250,000		275,908
4.65%, 10/17/21		250,000		275,784
3.10%, 01/09/23		200,000		198,152
6.75%, 03/15/32		250,000		330,535
6.15%, 08/07/37		150,000		185,851
5.88%, 01/14/38		450,000		543,884
6.88%, 01/10/39		100,000		135,043
6.38%, 11/15/67 (a)(b)		250,000		271,250
HSBC Finance Corp.
5.50%, 01/19/16		100,000		105,882
6.68%, 01/15/21		350,000		410,835
Synchrony Financial
3.75%, 08/15/21 (b)		500,000		504,962
4.25%, 08/15/24 (b)		250,000		250,332
				5,449,743
Insurance 1.2%
ACE INA Holdings, Inc.
2.70%, 03/13/23		300,000		288,698
Aetna, Inc.
3.95%, 09/01/20		100,000		106,685
Aflac, Inc.
3.63%, 06/15/23		500,000		504,530
Allstate Corp.
3.15%, 06/15/23		100,000		99,825
4.50%, 06/15/43		300,000		308,358
American International Group, Inc.
5.60%, 10/18/16		350,000		381,227
5.85%, 01/16/18		700,000		788,042
6.40%, 12/15/20		117,000		139,379
Aon Corp.
8.21%, 01/01/27		100,000		128,644
Assurant, Inc.
2.50%, 03/15/18		400,000		402,036
6.75%, 02/15/34		400,000		483,132
Berkshire Hathaway Finance Corp.
4.25%, 01/15/21		300,000		328,372
5.75%, 01/15/40		100,000		121,349
Chubb Corp.
6.00%, 05/11/37		250,000		316,576
Cigna Corp.
2.75%, 11/15/16		100,000		103,415
4.00%, 02/15/22 (b)		150,000		157,947
5.88%, 03/15/41 (b)		250,000		305,316
5.38%, 02/15/42 (b)		300,000		331,719
CNA Financial Corp.
7.35%, 11/15/19		250,000		301,113
Genworth Holdings, Inc.
7.70%, 06/15/20		150,000		180,245
7.63%, 09/24/21		200,000		242,984
6.50%, 06/15/34		200,000		227,931
Hartford Financial Services Group, Inc.
5.38%, 03/15/17		200,000		218,528
5.13%, 04/15/22		500,000		558,553
5.95%, 10/15/36		100,000		121,656
6.10%, 10/01/41		350,000		438,343
ING US, Inc.
2.90%, 02/15/18		500,000		514,802
5.70%, 07/15/43		100,000		113,458
Lincoln National Corp.
4.00%, 09/01/23		150,000		154,330
MetLife, Inc.
5.70%, 06/15/35		250,000		300,368
4.88%, 11/13/43		150,000		160,235
Prudential Financial, Inc.
6.00%, 12/01/17		100,000		113,090
4.50%, 11/16/21		300,000		326,383

4 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Travelers Cos., Inc.
5.90%, 06/02/19		160,000		185,692
6.25%, 06/15/37		250,000		321,944
UnitedHealth Group, Inc.
1.40%, 10/15/17		500,000		499,647
6.00%, 02/15/18		150,000		170,626
Unum Group
5.63%, 09/15/20		100,000		114,084
WellPoint, Inc.
2.25%, 08/15/19		150,000		147,863
3.50%, 08/15/24 (b)		250,000		244,315
5.85%, 01/15/36		250,000		294,782
4.65%, 08/15/44 (b)		250,000		243,906
				11,490,128
Other Financial 0.0%
CME Group, Inc.
3.00%, 09/15/22		200,000		199,678
				199,678
Real Estate Investment Trust 0.6%
ARC Properties Operating Partnership LP
2.00%, 02/06/17 (c)		500,000		500,008
Boston Properties LP
3.80%, 02/01/24 (b)		100,000		100,513
Brandywine Operating Partnership LP
3.95%, 02/15/23 (b)		750,000		750,885
Digital Realty Trust LP
5.88%, 02/01/20		250,000		278,095
5.25%, 03/15/21 (b)		250,000		271,709
Essex Portfolio LP
3.88%, 05/01/24 (b)		250,000		250,832
HCP, Inc.
6.70%, 01/30/18		100,000		115,124
5.38%, 02/01/21 (b)		150,000		167,602
Health Care REIT, Inc.
4.13%, 04/01/19 (b)		300,000		319,920
4.50%, 01/15/24 (b)		400,000		412,299
Kilroy Realty LP
3.80%, 01/15/23 (b)		250,000		250,810
4.25%, 08/15/29 (b)		200,000		198,187
Kimco Realty Corp.
3.20%, 05/01/21 (b)		100,000		99,913
Omega Healthcare Investors, Inc.
4.95%, 04/01/24 (b)(c)		100,000		102,250
ProLogis LP
4.25%, 08/15/23 (b)		300,000		310,224
Realty Income Corp.
3.88%, 07/15/24 (b)		150,000		149,412
Simon Property Group LP
6.13%, 05/30/18		150,000		172,245
5.65%, 02/01/20 (b)		102,000		117,520
Ventas Realty LP
4.25%, 03/01/22 (b)		200,000		208,750
3.25%, 08/15/22 (b)		250,000		243,520
				5,019,818
				70,858,252
Industrial 13.7%
Basic Industry 1.2%
Air Products & Chemicals, Inc.
4.38%, 08/21/19		125,000		137,303
Airgas, Inc.
1.65%, 02/15/18 (b)		350,000		346,763
3.65%, 07/15/24 (b)		800,000		799,763
Barrick Gold Corp.
6.95%, 04/01/19		850,000		988,134
4.10%, 05/01/23		150,000		144,391
Barrick North America Finance LLC
4.40%, 05/30/21		500,000		507,102
5.75%, 05/01/43		300,000		297,937
BHP Billiton Finance USA Ltd.
3.25%, 11/21/21		100,000		102,220
5.00%, 09/30/43		300,000		330,417
CF Industries, Inc.
7.13%, 05/01/20		100,000		120,780
Domtar Corp.
10.75%, 06/01/17		350,000		423,678
Dow Chemical Co.
2.50%, 02/15/16		400,000		408,822
8.55%, 05/15/19		225,000		283,067
3.00%, 11/15/22 (b)		250,000		241,524
4.25%, 10/01/34 (b)		200,000		193,210
5.25%, 11/15/41 (b)		200,000		208,231
Eastman Chemical Co.
3.60%, 08/15/22 (b)		100,000		100,945
EI du Pont de Nemours & Co.
5.75%, 03/15/19		200,000		230,491
Freeport-McMoRan, Inc.
2.38%, 03/15/18		300,000		301,009
3.10%, 03/15/20		200,000		198,679
3.55%, 03/01/22 (b)		100,000		97,809
3.88%, 03/15/23 (b)		100,000		98,807
5.45%, 03/15/43 (b)		400,000		409,324
Glencore Canada Corp.
6.20%, 06/15/35		300,000		332,490
International Paper Co.
7.50%, 08/15/21		250,000		310,852
4.75%, 02/15/22 (b)		250,000		269,818
Kinross Gold Corp.
5.13%, 09/01/21 (b)		250,000		254,834
5.95%, 03/15/24 (b)(c)		150,000		152,845
6.88%, 09/01/41 (b)		150,000		153,610
LYB International Finance BV
4.00%, 07/15/23		300,000		310,952
5.25%, 07/15/43		250,000		270,344
Monsanto Co.
4.20%, 07/15/34 (b)		250,000		252,654
Mosaic Co.
4.25%, 11/15/23 (b)		250,000		260,692
Newmont Mining Corp.
3.50%, 03/15/22 (b)		150,000		139,215
6.25%, 10/01/39		150,000		148,333
Potash Corp. of Saskatchewan, Inc.
5.88%, 12/01/36		100,000		121,072
Rio Tinto Finance USA Ltd.
1.88%, 11/02/15		170,000		172,317
6.50%, 07/15/18		100,000		115,867

5

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Rio Tinto Finance USA PLC
3.50%, 03/22/22 (b)		100,000		101,627
4.75%, 03/22/42 (b)		100,000		102,180
Southern Copper Corp.
5.25%, 11/08/42		100,000		94,986
Teck Resources Ltd.
6.25%, 07/15/41 (b)		100,000		101,967
Vale Overseas Ltd.
6.88%, 11/21/36		100,000		113,250
Vale S.A.
5.63%, 09/11/42		200,000		196,684
Valspar Corp.
4.20%, 01/15/22 (b)		100,000		105,687
Weyerhaeuser Co.
7.38%, 03/15/32		100,000		132,910
				11,185,592
Capital Goods 1.1%
ABB Finance USA, Inc.
1.63%, 05/08/17		100,000		100,638
2.88%, 05/08/22		100,000		99,002
Avery Dennison Corp.
5.38%, 04/15/20		105,000		116,126
Boeing Co.
0.95%, 05/15/18		250,000		243,558
4.88%, 02/15/20		250,000		282,109
Caterpillar Financial Services Corp.
1.25%, 11/06/17		400,000		397,363
7.15%, 02/15/19		250,000		300,923
Caterpillar, Inc.
5.70%, 08/15/16		200,000		218,419
6.05%, 08/15/36		150,000		189,209
CRH America, Inc.
6.00%, 09/30/16		100,000		109,431
Deere & Co.
5.38%, 10/16/29		150,000		177,765
Eaton Corp.
0.95%, 11/02/15		150,000		150,516
1.50%, 11/02/17		150,000		149,466
4.00%, 11/02/32		100,000		99,245
4.15%, 11/02/42		100,000		95,691
General Electric Co.
5.25%, 12/06/17		700,000		776,960
2.70%, 10/09/22		100,000		97,508
3.38%, 03/11/24		600,000		607,373
4.13%, 10/09/42		200,000		199,532
4.50%, 03/11/44		100,000		104,103
Illinois Tool Works, Inc.
3.90%, 09/01/42 (b)		100,000		95,610
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 01/15/19 (c)		500,000		511,210
John Deere Capital Corp.
5.50%, 04/13/17		200,000		220,933
1.55%, 12/15/17		250,000		250,627
1.70%, 01/15/20		500,000		484,471
L-3 Communications Corp.
4.95%, 02/15/21 (b)		500,000		544,227
Lockheed Martin Corp.
4.25%, 11/15/19		250,000		273,073
3.35%, 09/15/21		100,000		103,062
Northrop Grumman Corp.
4.75%, 06/01/43		250,000		257,982
Owens Corning
4.20%, 12/15/22 (b)		500,000		509,725
Packaging Corp. of America
3.65%, 09/15/24 (b)		100,000		98,415
Republic Services, Inc.
3.80%, 05/15/18		200,000		212,656
5.70%, 05/15/41 (b)		200,000		235,994
Textron, Inc.
5.95%, 09/21/21 (b)		200,000		230,699
United Technologies Corp.
1.80%, 06/01/17		400,000		406,172
5.38%, 12/15/17		300,000		336,594
6.13%, 02/01/19		150,000		174,816
3.10%, 06/01/22		100,000		100,114
6.13%, 07/15/38		150,000		191,318
4.50%, 06/01/42		150,000		157,587
Valmont Industries, Inc.
5.00%, 10/01/44 (b)		200,000		196,963
Waste Management, Inc.
2.90%, 09/15/22 (b)		200,000		196,329
				10,303,514
Communications 2.5%
21st Century Fox America, Inc.
6.90%, 03/01/19		180,000		213,587
4.00%, 10/01/23		400,000		414,918
6.15%, 03/01/37		200,000		238,688
America Movil S.A.B. de C.V.
2.38%, 09/08/16		200,000		204,524
3.13%, 07/16/22		200,000		194,716
4.38%, 07/16/42		150,000		140,212
American Tower Corp.
3.40%, 02/15/19		750,000		767,027
5.05%, 09/01/20		250,000		271,455
5.00%, 02/15/24		100,000		105,009
AT&T Mobility LLC
7.13%, 12/15/31		50,000		67,048
AT&T, Inc.
0.80%, 12/02/15		100,000		100,153
5.50%, 02/01/18		400,000		447,684
5.80%, 02/15/19		200,000		229,412
3.00%, 02/15/22		350,000		347,184
6.15%, 09/15/34		200,000		239,477
5.35%, 09/01/40		250,000		266,049
5.55%, 08/15/41		100,000		109,027
4.30%, 12/15/42 (b)		200,000		183,490
4.80%, 06/15/44 (b)		750,000		741,843
British Telecommunications PLC
1.63%, 06/28/16		500,000		504,848
CBS Corp.
5.50%, 05/15/33		150,000		164,592
4.90%, 08/15/44 (b)		400,000		396,930
CC Holdings GS V LLC
3.85%, 04/15/23		200,000		197,082
Comcast Corp.
5.15%, 03/01/20		250,000		283,697
3.38%, 02/15/25 (b)		250,000		247,128
4.25%, 01/15/33		200,000		203,070
6.95%, 08/15/37		200,000		268,844
4.65%, 07/15/42		500,000		518,333
Deutsche Telekom International Finance BV
8.75%, 06/15/30 (a)		100,000		145,754

6 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
DIRECTV Holdings LLC
3.50%, 03/01/16		350,000		362,340
5.88%, 10/01/19		100,000		114,727
4.45%, 04/01/24 (b)		200,000		208,694
6.00%, 08/15/40 (b)		150,000		169,051
5.15%, 03/15/42		150,000		152,229
Discovery Communications LLC
5.05%, 06/01/20		150,000		166,547
Embarq Corp.
7.08%, 06/01/16		250,000		272,380
Grupo Televisa S.A.B.
6.00%, 05/15/18		200,000		226,750
5.00%, 05/13/45		150,000		148,934
NBCUniversal Media LLC
2.88%, 04/01/16		100,000		103,140
4.38%, 04/01/21		250,000		272,725
5.95%, 04/01/41		350,000		428,764
Orange S.A.
2.75%, 02/06/19		250,000		253,243
5.38%, 01/13/42		250,000		273,363
Qwest Corp.
6.75%, 12/01/21		350,000		401,816
Rogers Communications, Inc.
3.00%, 03/15/23 (b)		250,000		238,751
TCI Communications, Inc.
7.13%, 02/15/28		150,000		197,555
Telefonica Emisiones S.A.U.
6.22%, 07/03/17		150,000		167,458
5.46%, 02/16/21		250,000		278,792
7.05%, 06/20/36		150,000		190,593
Telefonos de Mexico S.A.B. de C.V.
5.50%, 11/15/19		100,000		113,708
Time Warner Cable, Inc.
5.85%, 05/01/17		650,000		720,896
5.00%, 02/01/20		250,000		278,139
6.55%, 05/01/37		350,000		442,959
Time Warner Entertainment Co. LP
8.38%, 07/15/33		100,000		148,124
Time Warner, Inc.
5.88%, 11/15/16		250,000		274,447
2.10%, 06/01/19		300,000		295,175
4.75%, 03/29/21		300,000		327,367
7.63%, 04/15/31		100,000		135,329
7.70%, 05/01/32		200,000		275,986
6.50%, 11/15/36		250,000		301,751
Verizon Communications, Inc.
2.50%, 09/15/16		300,000		308,035
1.35%, 06/09/17		750,000		746,679
3.65%, 09/14/18		150,000		158,133
4.50%, 09/15/20		500,000		541,352
5.15%, 09/15/23		300,000		332,452
4.15%, 03/15/24 (b)		250,000		258,338
7.75%, 12/01/30		100,000		137,748
6.40%, 09/15/33		1,250,000		1,525,455
5.85%, 09/15/35		200,000		229,301
6.55%, 09/15/43		400,000		500,482
Verizon Florida LLC
Series E
6.86%, 02/01/28		300,000		355,311
Viacom, Inc.
2.50%, 12/15/16		100,000		102,761
3.88%, 04/01/24 (b)		100,000		99,781
6.88%, 04/30/36		200,000		251,329
Vodafone Group PLC
5.45%, 06/10/19		250,000		281,701
4.38%, 03/16/21		300,000		321,253
Walt Disney Co.
1.35%, 08/16/16		150,000		151,809
1.13%, 02/15/17		200,000		200,261
1.10%, 12/01/17		250,000		247,467
				22,903,162
Consumer Cyclical 1.5%
Amazon.com, Inc.
2.50%, 11/29/22 (b)		350,000		329,567
CVS Health Corp.
5.75%, 06/01/17		500,000		555,931
2.25%, 08/12/19 (b)		250,000		247,744
4.75%, 05/18/20 (b)		500,000		559,212
3.38%, 08/12/24 (b)		250,000		246,938
5.30%, 12/05/43 (b)		200,000		224,948
Daimler Finance North America LLC
8.50%, 01/18/31		75,000		113,589
Delphi Corp.
6.13%, 05/15/21 (b)		500,000		550,000
5.00%, 02/15/23 (b)		300,000		322,050
4.15%, 03/15/24 (b)		150,000		153,312
eBay, Inc.
1.35%, 07/15/17		500,000		498,248
Ford Motor Co.
7.45%, 07/16/31		425,000		562,620
4.75%, 01/15/43		100,000		100,472
Ford Motor Credit Co. LLC
6.63%, 08/15/17		450,000		509,052
2.38%, 01/16/18		250,000		252,503
4.25%, 09/20/22		450,000		474,628
Gap, Inc.
5.95%, 04/12/21 (b)		450,000		512,469
Home Depot, Inc.
5.40%, 03/01/16		300,000		320,036
3.75%, 02/15/24 (b)		500,000		521,886
4.88%, 02/15/44 (b)		100,000		108,941
Johnson Controls, Inc.
3.63%, 07/02/24 (b)		200,000		198,725
4.63%, 07/02/44 (b)		200,000		196,046
Lowe’s Cos., Inc.
5.40%, 10/15/16		300,000		326,918
3.12%, 04/15/22 (b)		300,000		304,255
Macy’s Retail Holdings, Inc.
5.90%, 12/01/16		210,000		231,014
2.88%, 02/15/23 (b)		200,000		191,238
5.13%, 01/15/42 (b)		300,000		314,163
Marriott International, Inc.
3.00%, 03/01/19 (b)		350,000		358,741
McDonald’s Corp.
5.30%, 03/15/17		86,000		94,665
5.35%, 03/01/18		150,000		167,999
3.70%, 02/15/42		114,000		104,790
NIKE, Inc.
2.25%, 05/01/23 (b)		100,000		94,708
3.63%, 05/01/43 (b)		50,000		47,237
Nordstrom, Inc.
4.00%, 10/15/21 (b)		150,000		160,691
QVC, Inc.
5.45%, 08/15/34 (b)(c)		200,000		197,029

7

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Starbucks Corp.
3.85%, 10/01/23 (b)		300,000		313,898
Starwood Hotels & Resorts Worldwide, Inc.
6.75%, 05/15/18		100,000		116,020
4.50%, 10/01/34 (b)		250,000		243,895
Toyota Motor Credit Corp.
3.40%, 09/15/21		350,000		363,145
Viacom, Inc.
4.25%, 09/01/23 (b)		150,000		154,800
Wal-Mart Stores, Inc.
2.55%, 04/11/23 (b)		400,000		384,570
5.25%, 09/01/35		550,000		637,448
6.50%, 08/15/37		100,000		133,067
6.20%, 04/15/38		700,000		896,967
Wyndham Worldwide Corp.
5.63%, 03/01/21		100,000		111,179
				13,507,354
Consumer Non-Cyclical 3.1%
AbbVie, Inc.
2.00%, 11/06/18		700,000		689,873
2.90%, 11/06/22		500,000		478,913
Actavis, Inc.
4.63%, 10/01/42 (b)		500,000		458,594
Altria Group, Inc.
4.75%, 05/05/21		500,000		545,457
2.85%, 08/09/22		600,000		575,701
2.95%, 05/02/23		800,000		764,017
4.25%, 08/09/42		200,000		182,069
AmerisourceBergen Corp.
4.88%, 11/15/19		450,000		498,950
Amgen, Inc.
5.85%, 06/01/17		200,000		222,920
3.88%, 11/15/21 (b)		200,000		210,625
5.15%, 11/15/41 (b)		100,000		105,937
Anheuser-Busch InBev Finance, Inc.
1.13%, 01/27/17		100,000		100,009
2.15%, 02/01/19		400,000		398,306
3.70%, 02/01/24		200,000		201,521
4.63%, 02/01/44		350,000		355,966
Anheuser-Busch InBev Worldwide, Inc.
6.88%, 11/15/19		350,000		420,441
5.00%, 04/15/20		250,000		279,425
Archer-Daniels-Midland Co.
5.94%, 10/01/32		100,000		124,080
AstraZeneca PLC
6.45%, 09/15/37		150,000		195,200
Baxter International, Inc.
4.50%, 06/15/43 (b)		300,000		311,275
Boston Scientific Corp.
6.00%, 01/15/20		150,000		171,215
4.13%, 10/01/23 (b)		100,000		102,606
Bristol-Myers Squibb Co.
6.13%, 05/01/38		100,000		127,410
3.25%, 08/01/42		100,000		84,068
Campbell Soup Co.
2.50%, 08/02/22		350,000		330,280
Cardinal Health, Inc.
1.90%, 06/15/17		200,000		202,323
1.70%, 03/15/18		400,000		396,454
3.20%, 06/15/22		400,000		398,020
Celgene Corp.
1.90%, 08/15/17		1,000,000		1,008,119
3.63%, 05/15/24 (b)		200,000		198,266
4.63%, 05/15/44 (b)		550,000		541,757
Colgate-Palmolive Co.
2.63%, 05/01/17		100,000		103,870
3.25%, 03/15/24		200,000		202,639
ConAgra Foods, Inc.
3.20%, 01/25/23 (b)		254,000		244,045
6.63%, 08/15/39		300,000		368,471
4.65%, 01/25/43 (b)		231,000		223,941
Delhaize Group S.A.
5.70%, 10/01/40		250,000		266,256
Diageo Capital PLC
5.75%, 10/23/17		100,000		112,426
1.13%, 04/29/18		150,000		146,666
Dr Pepper Snapple Group, Inc.
2.00%, 01/15/20		1,000,000		975,768
Eli Lilly & Co.
5.50%, 03/15/27		250,000		299,473
Express Scripts Holding Co.
3.13%, 05/15/16		350,000		362,660
General Mills, Inc.
5.40%, 06/15/40		500,000		569,830
Gilead Sciences, Inc.
4.40%, 12/01/21 (b)		350,000		382,601
3.70%, 04/01/24 (b)		400,000		409,373
4.80%, 04/01/44 (b)		100,000		105,515
GlaxoSmithKline Capital, Inc.
5.65%, 05/15/18		150,000		169,945
2.85%, 05/08/22		150,000		147,299
Hasbro, Inc.
6.30%, 09/15/17		100,000		112,730
6.35%, 03/15/40		450,000		539,913
Johnson & Johnson
5.55%, 08/15/17		250,000		281,239
Kellogg Co.
4.45%, 05/30/16		150,000		158,604
Kimberly-Clark Corp.
6.63%, 08/01/37		100,000		135,751
5.30%, 03/01/41		200,000		237,434
Koninklijke Philips N.V.
5.00%, 03/15/42		100,000		107,517
Kraft Foods Group, Inc.
5.38%, 02/10/20		200,000		225,609
3.50%, 06/06/22		500,000		506,960
5.00%, 06/04/42		200,000		209,887
Lorillard Tobacco Co.
2.30%, 08/21/17		100,000		101,259
McKesson Corp.
2.28%, 03/15/19		300,000		298,125
Medtronic, Inc.
3.63%, 03/15/24 (b)		200,000		204,521
4.00%, 04/01/43 (b)		300,000		284,392
Merck & Co., Inc.
2.25%, 01/15/16		90,000		92,016
3.88%, 01/15/21 (b)		200,000		214,655
Merck Sharp & Dohme Corp.
5.85%, 06/30/39		250,000		313,113
Molson Coors Brewing Co.
3.50%, 05/01/22		200,000		201,285
Mondelez International, Inc.
4.13%, 02/09/16		250,000		260,938
2.25%, 02/01/19 (b)		250,000		248,434

8 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
6.50%, 02/09/40		105,000		132,105
Mylan, Inc.
1.80%, 06/24/16		300,000		303,632
Newell Rubbermaid, Inc.
4.70%, 08/15/20		150,000		161,019
Novartis Capital Corp.
4.40%, 04/24/20		100,000		110,865
PepsiCo, Inc.
2.25%, 01/07/19 (b)		150,000		151,538
4.88%, 11/01/40		200,000		216,628
Pfizer, Inc.
6.20%, 03/15/19		225,000		263,214
Philip Morris International, Inc.
1.13%, 08/21/17		100,000		99,425
4.50%, 03/26/20		250,000		274,841
2.50%, 08/22/22		100,000		95,675
6.38%, 05/16/38		150,000		188,879
Procter & Gamble Co.
1.80%, 11/15/15		375,000		380,750
4.70%, 02/15/19		150,000		167,783
5.55%, 03/05/37		100,000		123,155
Quest Diagnostics, Inc.
3.20%, 04/01/16		250,000		258,076
6.40%, 07/01/17		300,000		339,034
4.25%, 04/01/24 (b)		250,000		254,551
Reynolds American, Inc.
6.75%, 06/15/17		100,000		112,932
3.25%, 11/01/22		100,000		96,658
Safeway, Inc.
3.95%, 08/15/20		200,000		200,964
Sanofi
2.63%, 03/29/16		500,000		515,085
1.25%, 04/10/18		100,000		98,647
4.00%, 03/29/21		150,000		161,325
Teva Pharmaceutical Finance Co. BV
2.95%, 12/18/22		100,000		95,462
Teva Pharmaceutical Finance Co. LLC
6.15%, 02/01/36		275,000		331,704
The Coca-Cola Co.
1.50%, 11/15/15		200,000		202,285
1.15%, 04/01/18		500,000		492,430
4.88%, 03/15/19		300,000		335,999
The Kroger Co.
3.85%, 08/01/23 (b)		100,000		102,106
7.50%, 04/01/31		100,000		130,808
Thermo Fisher Scientific, Inc.
4.50%, 03/01/21		50,000		54,548
3.60%, 08/15/21 (b)		50,000		51,570
4.15%, 02/01/24 (b)		200,000		207,472
5.30%, 02/01/44 (b)		200,000		220,369
Unilever Capital Corp.
4.25%, 02/10/21		300,000		330,258
Wyeth LLC
5.95%, 04/01/37		500,000		614,943
Zoetis, Inc.
3.25%, 02/01/23 (b)		250,000		244,930
4.70%, 02/01/43 (b)		100,000		100,939
				28,727,561
Energy 2.5%
Anadarko Petroleum Corp.
5.95%, 09/15/16		225,000		245,546
6.38%, 09/15/17		200,000		226,858
6.45%, 09/15/36		100,000		122,249
Apache Corp.
6.90%, 09/15/18		100,000		117,716
4.75%, 04/15/43 (b)		100,000		100,323
Baker Hughes, Inc.
3.20%, 08/15/21 (b)		300,000		306,969
BP Capital Markets PLC
3.20%, 03/11/16		500,000		518,026
1.38%, 05/10/18		300,000		294,877
4.75%, 03/10/19		250,000		275,627
Buckeye Partners LP
4.35%, 10/15/24 (b)		300,000		297,744
5.60%, 10/15/44 (b)		200,000		200,871
Canadian Natural Resources Ltd.
5.70%, 05/15/17		300,000		331,891
3.80%, 04/15/24		150,000		152,186
6.25%, 03/15/38		100,000		122,546
Chevron Corp.
1.10%, 12/05/17 (b)		500,000		495,593
1.72%, 06/24/18 (b)		500,000		500,615
3.19%, 06/24/23 (b)		400,000		403,502
Conoco, Inc.
6.95%, 04/15/29		100,000		133,820
ConocoPhillips Canada
5.63%, 10/15/16		150,000		164,795
Continental Resources, Inc.
5.00%, 09/15/22 (b)		250,000		264,063
4.90%, 06/01/44 (b)		100,000		97,862
Devon Energy Corp.
2.25%, 12/15/18 (b)		500,000		499,358
Dominion Gas Holdings LLC
4.80%, 11/01/43 (b)		100,000		107,310
El Paso Pipeline Partners Operating Co. LLC
4.30%, 05/01/24 (b)		300,000		299,535
4.70%, 11/01/42 (b)		300,000		267,590
Encana Corp.
5.90%, 12/01/17		100,000		112,315
6.50%, 05/15/19		150,000		175,839
3.90%, 11/15/21 (b)		200,000		206,744
6.50%, 02/01/38		175,000		215,924
Energy Transfer Partners LP
6.70%, 07/01/18		200,000		230,435
6.63%, 10/15/36		200,000		232,218
7.50%, 07/01/38		100,000		127,757
Ensco PLC
4.70%, 03/15/21		100,000		105,146
4.50%, 10/01/24 (b)		150,000		150,806
5.75%, 10/01/44 (b)		400,000		406,957
Enterprise Products Operating LLC
6.30%, 09/15/17		100,000		113,493
3.90%, 02/15/24 (b)		400,000		406,676
6.65%, 10/15/34		250,000		323,230
EOG Resources, Inc.
2.45%, 04/01/20 (b)		200,000		198,799
Halliburton Co.
1.00%, 08/01/16		100,000		100,498
6.15%, 09/15/19		125,000		147,233
6.70%, 09/15/38		100,000		132,773
Hess Corp.
8.13%, 02/15/19		200,000		246,780
7.30%, 08/15/31		150,000		200,775
7.13%, 03/15/33		100,000		133,891

9

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Husky Energy, Inc.
7.25%, 12/15/19		200,000		243,830
3.95%, 04/15/22 (b)		500,000		519,053
Kerr-McGee Corp.
6.95%, 07/01/24		250,000		315,180
Kinder Morgan Energy Partners LP
5.95%, 02/15/18		250,000		279,830
6.85%, 02/15/20		50,000		58,708
5.80%, 03/15/35		100,000		105,433
5.00%, 08/15/42 (b)		100,000		94,551
5.50%, 03/01/44 (b)		100,000		100,585
5.40%, 09/01/44 (b)		400,000		394,781
Magellan Midstream Partners LP
4.20%, 12/01/42 (b)		100,000		93,878
Marathon Petroleum Corp.
5.13%, 03/01/21		250,000		278,872
Murphy Oil Corp.
5.13%, 12/01/42 (b)		200,000		194,066
Nabors Industries, Inc.
2.35%, 09/15/16		100,000		102,231
6.15%, 02/15/18		200,000		225,884
4.63%, 09/15/21		500,000		538,173
5.10%, 09/15/23 (b)		350,000		379,862
Nisource Finance Corp.
3.85%, 02/15/23 (b)		100,000		102,719
Noble Energy, Inc.
6.00%, 03/01/41 (b)		250,000		289,289
5.25%, 11/15/43 (b)		400,000		423,554
Occidental Petroleum Corp.
4.10%, 02/01/21 (b)		100,000		108,043
Plains All American Pipeline LP
5.75%, 01/15/20		100,000		114,997
3.65%, 06/01/22 (b)		200,000		203,806
3.85%, 10/15/23 (b)		150,000		152,604
6.65%, 01/15/37		100,000		125,311
Shell International Finance BV
4.30%, 09/22/19		100,000		109,919
6.38%, 12/15/38		500,000		657,860
4.55%, 08/12/43		250,000		265,447
Southern Natural Gas Co.
5.90%, 04/01/17 (c)		150,000		166,155
Spectra Energy Capital LLC
6.20%, 04/15/18		350,000		395,885
Spectra Energy Partners LP
4.75%, 03/15/24 (b)		100,000		107,458
5.95%, 09/25/43 (b)		250,000		294,602
Suncor Energy, Inc.
6.10%, 06/01/18		100,000		114,391
5.95%, 12/01/34		250,000		299,585
6.50%, 06/15/38		150,000		191,647
Talisman Energy, Inc.
3.75%, 02/01/21 (b)		150,000		151,828
Tosco Corp.
7.80%, 01/01/27		150,000		206,817
Total Capital International S.A.
2.88%, 02/17/22		500,000		498,416
3.75%, 04/10/24		100,000		102,884
TransCanada PipeLines Ltd.
2.50%, 08/01/22		100,000		94,966
3.75%, 10/16/23 (b)		150,000		152,616
4.63%, 03/01/34 (b)		100,000		102,924
7.63%, 01/15/39		100,000		141,173
Valero Energy Corp.
9.38%, 03/15/19		250,000		321,790
6.13%, 02/01/20		150,000		174,154
7.50%, 04/15/32		250,000		321,405
Weatherford International LLC
6.35%, 06/15/17		250,000		280,513
Weatherford International Ltd.
4.50%, 04/15/22 (b)		175,000		182,477
Williams Cos., Inc.
7.88%, 09/01/21		300,000		361,870
4.55%, 06/24/24 (b)		500,000		495,598
5.75%, 06/24/44 (b)		150,000		147,900
Williams Partners LP
7.25%, 02/01/17		550,000		619,713
6.30%, 04/15/40		50,000		58,878
				22,979,872
Technology 1.3%
Amphenol Corp.
3.13%, 09/15/21 (b)		400,000		399,706
Apple, Inc.
0.45%, 05/03/16		100,000		99,830
1.05%, 05/05/17		500,000		498,616
1.00%, 05/03/18		100,000		97,583
2.40%, 05/03/23		600,000		567,995
3.85%, 05/03/43		200,000		185,915
Arrow Electronics, Inc.
3.00%, 03/01/18		300,000		307,730
4.50%, 03/01/23 (b)		200,000		206,937
Broadcom Corp.
3.50%, 08/01/24 (b)		200,000		199,288
4.50%, 08/01/34 (b)		150,000		153,522
Cisco Systems, Inc.
5.50%, 02/22/16		200,000		213,023
4.45%, 01/15/20		350,000		384,701
3.63%, 03/04/24		250,000		256,063
5.90%, 02/15/39		100,000		120,936
Corning, Inc.
1.45%, 11/15/17		200,000		199,703
EMC Corp.
1.88%, 06/01/18		100,000		99,497
Fidelity National Information Services, Inc.
3.50%, 04/15/23 (b)		300,000		296,229
Fiserv, Inc.
6.80%, 11/20/17		285,000		326,128
4.63%, 10/01/20		250,000		270,314
Google, Inc.
2.13%, 05/19/16		175,000		179,294
3.38%, 02/25/24		100,000		102,284
Harris Corp.
6.15%, 12/15/40		150,000		180,446
Hewlett-Packard Co.
2.60%, 09/15/17		500,000		513,929
2.75%, 01/14/19		400,000		406,670
3.75%, 12/01/20		300,000		311,314
Intel Corp.
4.25%, 12/15/42		250,000		244,786
International Business Machines Corp.
5.70%, 09/14/17		500,000		560,644
3.38%, 08/01/23		150,000		151,738
3.63%, 02/12/24		750,000		766,866
Leidos, Inc.
5.50%, 07/01/33		50,000		47,831

10 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Microsoft Corp.
2.50%, 02/08/16		100,000		102,824
1.63%, 12/06/18		250,000		248,916
4.50%, 10/01/40		100,000		104,408
NetApp, Inc.
2.00%, 12/15/17		250,000		251,322
3.38%, 06/15/21 (b)		250,000		251,897
3.25%, 12/15/22 (b)		250,000		244,299
Oracle Corp.
2.25%, 10/08/19		100,000		99,657
3.40%, 07/08/24 (b)		350,000		349,330
4.30%, 07/08/34 (b)		400,000		403,686
6.13%, 07/08/39		150,000		186,182
Pitney Bowes, Inc.
4.63%, 03/15/24 (b)		100,000		101,555
Seagate HDD Cayman
3.75%, 11/15/18 (c)		300,000		306,750
4.75%, 06/01/23		500,000		506,250
4.75%, 01/01/25 (c)		200,000		200,000
Texas Instruments, Inc.
2.38%, 05/16/16		100,000		102,860
Xerox Corp.
2.75%, 03/15/19		300,000		302,596
				12,112,050
Transportation 0.5%
American Airlines 2013-1 Class A Pass Through Trust
4.00%, 01/15/27		379,489		386,624
Burlington Northern Santa Fe LLC
4.70%, 10/01/19		140,000		155,938
3.85%, 09/01/23 (b)		400,000		413,932
5.05%, 03/01/41 (b)		500,000		539,053
4.55%, 09/01/44 (b)		200,000		200,666
Canadian National Railway Co.
4.50%, 11/07/43 (b)		300,000		318,729
Canadian Pacific Railway Ltd.
4.50%, 01/15/22		250,000		274,142
Continental Airlines 2010-1 Class A Pass Through Trust
4.75%, 07/12/22		414,889		441,732
Continental Airlines 2012-1 Class A Pass Through Trust
4.15%, 10/11/25		95,078		98,406
CSX Corp.
4.25%, 06/01/21 (b)		150,000		163,007
4.10%, 03/15/44 (b)		100,000		94,376
FedEx Corp.
2.63%, 08/01/22		200,000		193,467
3.88%, 08/01/42		200,000		180,878
Kansas City Southern de Mexico S.A. de C.V.
2.35%, 05/15/20 (b)		350,000		335,811
Norfolk Southern Corp.
3.00%, 04/01/22 (b)		150,000		149,573
4.84%, 10/01/41		100,000		107,705
Ryder System, Inc.
2.55%, 06/01/19 (b)		100,000		100,245
United Parcel Service, Inc.
5.50%, 01/15/18		150,000		168,539
5.13%, 04/01/19		150,000		168,985
				4,491,808
				126,210,913
Utilities 1.7%
Electric 1.6%
Alabama Power Co.
3.55%, 12/01/23		200,000		205,710
American Electric Power Co., Inc.
1.65%, 12/15/17 (b)		500,000		500,170
Appalachian Power Co.
7.00%, 04/01/38		500,000		680,211
Berkshire Hathaway Energy Co.
5.75%, 04/01/18		100,000		113,019
6.13%, 04/01/36		200,000		248,309
5.95%, 05/15/37		250,000		306,818
6.50%, 09/15/37		250,000		324,325
5.15%, 11/15/43 (b)		200,000		222,220
CMS Energy Corp.
6.25%, 02/01/20		800,000		938,486
4.70%, 03/31/43 (b)		850,000		862,175
Commonwealth Edison Co.
1.95%, 09/01/16 (b)		300,000		306,421
Consolidated Edison Co. of New York, Inc.
5.85%, 04/01/18		200,000		227,358
Consumers Energy Co.
3.38%, 08/15/23 (b)		300,000		308,865
3.95%, 05/15/43 (b)		100,000		97,497
Dayton Power & Light Co.
1.88%, 09/15/16		200,000		202,758
Duke Energy Carolinas LLC
6.05%, 04/15/38		200,000		256,055
5.30%, 02/15/40		100,000		118,120
Duke Energy Corp.
2.10%, 06/15/18 (b)		1,000,000		1,008,293
3.75%, 04/15/24 (b)		150,000		154,085
Duke Energy Florida, Inc.
6.40%, 06/15/38		91,000		121,706
Duke Energy Progress, Inc.
4.10%, 05/15/42 (b)		350,000		349,461
Exelon Generation Co. LLC
4.00%, 10/01/20 (b)		250,000		263,673
5.60%, 06/15/42 (b)		100,000		107,224
Florida Power & Light Co.
6.20%, 06/01/36		200,000		259,586
5.95%, 02/01/38		150,000		189,854
Georgia Power Co.
4.75%, 09/01/40		500,000		536,197
LG&E & KU Energy LLC
3.75%, 11/15/20 (b)		150,000		156,045
National Rural Utilities Cooperative Finance Corp.
5.45%, 02/01/18		100,000		112,088
NextEra Energy Capital Holdings, Inc.
3.63%, 06/15/23 (b)		100,000		101,433
Oncor Electric Delivery Co. LLC
2.15%, 06/01/19 (b)(c)		350,000		347,656
4.55%, 12/01/41 (b)		200,000		215,710
Pacific Gas & Electric Co.
4.25%, 05/15/21 (b)		200,000		217,052
6.05%, 03/01/34		192,000		237,387
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)		500,000		488,976
PSEG Power LLC
5.13%, 04/15/20		400,000		443,634

11

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Public Service Electric & Gas Co.
3.95%, 05/01/42 (b)		100,000		98,196
Puget Sound Energy, Inc.
5.64%, 04/15/41 (b)		250,000		308,141
San Diego Gas & Electric Co.
4.30%, 04/01/42 (b)		100,000		103,630
Sempra Energy
3.55%, 06/15/24 (b)		400,000		403,826
Southern California Edison Co.
5.50%, 08/15/18		100,000		113,251
Southwestern Electric Power Co.
5.55%, 01/15/17		400,000		437,830
TransAlta Corp.
6.65%, 05/15/18		250,000		283,853
Union Electric Co.
3.90%, 09/15/42 (b)		100,000		96,703
Virginia Electric & Power Co.
5.95%, 09/15/17		300,000		339,321
6.00%, 05/15/37		300,000		380,943
Westar Energy, Inc.
4.13%, 03/01/42 (b)		100,000		99,685
Xcel Energy, Inc.
4.70%, 05/15/20 (b)		350,000		388,501
4.80%, 09/15/41 (b)		600,000		661,432
				14,943,889
Natural Gas 0.1%
ONE Gas, Inc.
3.61%, 02/01/24 (b)(c)		100,000		103,258
4.66%, 02/01/44 (b)(c)		300,000		328,959
Sempra Energy
6.00%, 10/15/39		350,000		436,356
Southwest Gas Corp.
3.88%, 04/01/22 (b)		100,000		106,112
				974,685
Other Utilities 0.0%
Veolia Environnement S.A.
6.00%, 06/01/18		200,000		225,425
				225,425
				16,143,999
Total Corporate Bonds
(Cost $211,519,017)				213,213,164
Foreign Securities 5.2% of net assets
Foreign Agencies 1.7%
Austria 0.0%
Oesterreichische Kontrollbank AG
2.00%, 06/03/16		150,000		153,626
				153,626
Brazil 0.2%
Petrobras Global Finance BV
4.38%, 05/20/23		400,000		375,812
5.63%, 05/20/43		250,000		222,691
Petrobras International Finance Co.
5.75%, 01/20/20		500,000		527,355
5.38%, 01/27/21		400,000		406,328
6.75%, 01/27/41		400,000		412,800
				1,944,986
Canada 0.1%
CNOOC Nexen Finance 2014 ULC
1.63%, 04/30/17		500,000		500,453
Nexen, Inc.
5.88%, 03/10/35		150,000		172,356
6.40%, 05/15/37		200,000		244,507
				917,316
Colombia 0.0%
Ecopetrol S.A.
7.63%, 07/23/19		100,000		119,220
5.88%, 09/18/23		100,000		110,625
5.88%, 05/28/45		100,000		101,750
				331,595
Germany 0.7%
Kreditanstalt fuer Wiederaufbau
2.63%, 02/16/16 (d)		600,000		618,014
2.00%, 06/01/16 (d)		300,000		307,410
0.50%, 07/15/16 (d)		750,000		748,952
4.88%, 01/17/17 (d)		450,000		490,847
1.25%, 02/15/17 (d)		600,000		605,456
4.50%, 07/16/18 (d)		500,000		554,546
4.88%, 06/17/19 (d)		700,000		797,052
4.00%, 01/27/20 (d)		350,000		385,414
2.75%, 09/08/20 (d)		750,000		776,242
2.38%, 08/25/21 (d)		300,000		301,477
Landwirtschaftliche Rentenbank
5.13%, 02/01/17 (d)		250,000		274,304
1.88%, 09/17/18 (d)		500,000		505,573
				6,365,287
Japan 0.1%
Japan Bank for International Cooperation
2.50%, 01/21/16		300,000		307,984
2.25%, 07/13/16		400,000		411,263
				719,247
Mexico 0.3%
Petroleos Mexicanos
5.75%, 03/01/18		250,000		277,500
3.13%, 01/23/19 (c)		100,000		102,750
5.50%, 01/21/21		400,000		442,200
3.50%, 01/30/23		500,000		480,250
4.88%, 01/18/24 (c)		200,000		210,300
6.63%, 06/15/35		700,000		815,850
5.50%, 06/27/44		200,000		205,040
				2,533,890
Norway 0.1%
Statoil A.S.A.
2.45%, 01/17/23		100,000		95,613
3.70%, 03/01/24		400,000		415,381
4.25%, 11/23/41		100,000		100,330
				611,324
Republic of Korea 0.2%
Export-Import Bank of Korea
4.38%, 09/15/21		300,000		324,374
5.00%, 04/11/22		200,000		223,926
Korea Development Bank
4.00%, 09/09/16		500,000		527,002

12 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
3.00%, 03/17/19		500,000		511,558
				1,586,860
Sweden 0.0%
Svensk Exportkredit AB
5.13%, 03/01/17		150,000		164,492
1.13%, 04/05/18		250,000		246,999
				411,491
				15,575,622
Foreign Local Government 0.4%
Canada 0.4%
Hydro-Quebec
2.00%, 06/30/16		400,000		409,064
1.38%, 06/19/17		250,000		251,530
8.05%, 07/07/24		160,000		221,110
Province of British Columbia
2.00%, 10/23/22		200,000		191,619
Province of Manitoba
1.13%, 06/01/18		250,000		246,635
Province of Nova Scotia
5.13%, 01/26/17		500,000		547,967
Province of Ontario
2.30%, 05/10/16		200,000		205,435
1.00%, 07/22/16		600,000		603,166
4.00%, 10/07/19		225,000		245,243
2.45%, 06/29/22		200,000		195,950
Province of Quebec
7.50%, 09/15/29		168,000		238,583
				3,356,302
Sovereign 1.5%
Brazil 0.2%
Brazilian Government International Bond
6.00%, 01/17/17		500,000		547,500
4.88%, 01/22/21		100,000		106,800
2.63%, 01/05/23		500,000		451,250
4.25%, 01/07/25		250,000		247,813
8.25%, 01/20/34		150,000		202,125
7.13%, 01/20/37		100,000		123,250
5.63%, 01/07/41		150,000		155,625
				1,834,363
Canada 0.0%
Canada Government International Bond
0.88%, 02/14/17		100,000		99,899
				99,899
Chile 0.0%
Chile Government International Bond
2.25%, 10/30/22		300,000		285,000
3.63%, 10/30/42		100,000		88,250
				373,250
Colombia 0.1%
Colombia Government International Bond
7.38%, 03/18/19		300,000		359,250
7.38%, 09/18/37		100,000		134,250
6.13%, 01/18/41		250,000		294,125
				787,625
Italy 0.1%
Italy Government International Bond
5.25%, 09/20/16		250,000		269,922
5.38%, 06/12/17		100,000		109,969
6.88%, 09/27/23		150,000		192,917
5.38%, 06/15/33		250,000		301,541
				874,349
Mexico 0.3%
Mexico Government International Bond
5.63%, 01/15/17		1,000,000		1,094,000
3.50%, 01/21/21		150,000		152,386
3.63%, 03/15/22		900,000		917,100
8.00%, 09/24/22		100,000		133,255
4.00%, 10/02/23		350,000		362,162
6.05%, 01/11/40		300,000		355,500
4.75%, 03/08/44		200,000		199,500
				3,213,903
Panama 0.1%
Panama Government International Bond
5.20%, 01/30/20		100,000		110,500
4.00%, 09/22/24 (b)		200,000		200,500
6.70%, 01/26/36		200,000		246,500
				557,500
Peru 0.1%
Peruvian Government International Bond
7.13%, 03/30/19		250,000		298,750
7.35%, 07/21/25		300,000		392,250
				691,000
Philippines 0.2%
Philippine Government International Bond
8.38%, 06/17/19		500,000		628,750
4.20%, 01/21/24		300,000		317,250
5.50%, 03/30/26		600,000		691,500
				1,637,500
Poland 0.1%
Poland Government International Bond
6.38%, 07/15/19		400,000		471,000
3.00%, 03/17/23		300,000		290,814
				761,814
Republic of Korea 0.0%
Republic of Korea
7.13%, 04/16/19		150,000		181,725
3.88%, 09/11/23		250,000		268,038
				449,763
South Africa 0.1%
South Africa Government International Bond
4.67%, 01/17/24		600,000		607,500
				607,500
Turkey 0.2%
Turkey Government International Bond
6.75%, 04/03/18		200,000		222,000
7.00%, 03/11/19		250,000		280,937
5.63%, 03/30/21		500,000		533,750
7.38%, 02/05/25		500,000		595,000
4.88%, 04/16/43		500,000		453,500
				2,085,187
				13,973,653

13

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Supranational* 1.6%
African Development Bank
2.50%, 03/15/16		150,000		154,366
0.88%, 05/15/17		400,000		398,290
Asian Development Bank
2.50%, 03/15/16		400,000		411,758
1.13%, 03/15/17		650,000		652,889
European Bank for Reconstruction & Development
1.00%, 02/16/17		750,000		752,023
European Investment Bank
0.63%, 04/15/16		550,000		551,227
2.50%, 05/16/16		500,000		516,133
0.50%, 08/15/16		500,000		499,022
5.13%, 05/30/17		1,000,000		1,107,076
1.00%, 06/15/18		250,000		245,463
1.88%, 03/15/19		700,000		703,267
4.00%, 02/16/21		700,000		774,615
4.88%, 02/15/36		500,000		612,724
Inter-American Development Bank
5.13%, 09/13/16 (h)		500,000		543,221
1.13%, 03/15/17		500,000		504,716
1.75%, 08/24/18		250,000		251,874
3.88%, 02/14/20		200,000		219,650
3.88%, 10/28/41		100,000		102,513
3.20%, 08/07/42		100,000		91,762
4.38%, 01/24/44		1,150,000		1,303,315
International Bank for Reconstruction & Development
2.13%, 03/15/16 (h)		400,000		409,310
0.50%, 04/15/16		350,000		349,432
0.50%, 05/16/16		500,000		499,008
0.88%, 04/17/17		350,000		350,440
1.88%, 03/15/19		750,000		758,011
2.25%, 06/24/21		500,000		497,736
International Finance Corp.
1.13%, 11/23/16		350,000		352,202
2.13%, 11/17/17 (h)		500,000		513,196
1.75%, 09/04/18		300,000		302,245
1.75%, 09/16/19		250,000		248,802
Nordic Investment Bank
0.50%, 04/14/16		250,000		250,025
				14,926,311
Total Foreign Securities
(Cost $47,787,381)				47,831,888
Mortgage-Backed Securities 28.6% of net assets
TBA Securities 3.5%
Fannie Mae TBA
2.00%, 10/01/29 (b)(g)		600,000		587,156
2.50%, 10/01/29 to 11/01/44 (b)(g)		1,200,000		1,170,211
3.00%, 10/01/29 to 11/01/44 (b)(g)		2,300,000		2,336,285
3.50%, 10/01/29 to 11/01/44 (b)(g)		2,900,000		2,994,172
4.00%, 10/01/44 (b)(g)		4,300,000		4,531,730
4.50%, 10/01/44 (b)(g)		1,100,000		1,186,969
Freddie Mac TBA
2.00%, 10/01/29 (b)(g)		500,000		489,268
2.50%, 10/01/29 to 10/01/44 (b)(g)		1,100,000		1,100,510
3.50%, 10/01/29 to 11/01/44 (b)(g)		1,900,000		1,968,447
3.00%, 10/01/44 (b)(g)		1,600,000		1,579,751
4.00%, 10/01/44 (b)(g)		1,100,000		1,158,179
4.50%, 10/01/44 (b)(g)		1,900,000		2,049,328
Ginnie Mae TBA
2.50%, 10/01/44 (b)(g)		300,000		289,119
3.00%, 10/01/44 to 11/01/44 (b)(g)		3,700,000		3,716,960
3.50%, 10/01/44 (b)(g)		4,200,000		4,340,109
4.00%, 10/01/44 (b)(g)		2,400,000		2,543,625
4.50%, 10/01/44 (b)(g)		300,000		325,406
				32,367,225
U.S. Government Agency Mortgages 25.1%
Fannie Mae
5.50%, 06/01/15 to 08/01/41 (b)		3,489,298		3,908,303
7.00%, 08/01/16 to 04/01/37 (b)		142,917		156,851
6.00%, 12/01/16 to 05/01/41 (b)		3,098,305		3,525,012
5.00%, 02/01/18 to 08/01/41 (b)		7,691,234		8,502,349
4.50%, 03/01/18 to 01/01/44 (b)		13,049,982		14,140,184
4.00%, 06/01/18 to 05/01/44 (b)		19,717,389		20,874,913
3.50%, 10/01/18 to 10/01/44 (b)		20,729,600		21,328,731
6.50%, 05/01/19 to 10/01/39 (b)		769,669		873,876
3.00%, 09/01/23 to 08/01/43 (b)		23,243,867		23,220,581
8.50%, 05/01/25 (b)		4,099		4,755
2.50%, 10/01/27 to 09/01/28 (b)		6,533,976		6,612,315
2.00%, 02/01/28 to 09/01/28 (b)		269,784		264,384
2.14%, 10/01/35 (a)(b)		256,123		270,385
1.80%, 05/01/38 (a)(b)		226,476		243,103
5.50%, 09/01/38 (b)(h)		1,561,424		1,748,004
3.33%, 04/01/40 (a)(b)		89,024		94,383
3.60%, 05/01/40 (a)(b)		70,058		75,147
2.47%, 09/01/43 (a)(b)		239,273		244,556
2.99%, 11/01/43 (a)(b)		148,688		152,770
Freddie Mac
5.50%, 07/01/15 to 05/01/40 (b)		3,105,150		3,464,411
7.50%, 09/01/16 (b)		1,172		1,213
6.50%, 03/01/17 to 09/01/39 (b)		937,702		1,058,537
6.00%, 04/01/17 to 10/01/38 (b)		1,740,452		1,975,436
4.00%, 04/01/18 to 07/01/44 (b)		13,158,491		13,908,458
5.00%, 06/01/18 to 12/01/43 (b)		4,678,953		5,176,048
5.00%, 03/01/19 (b)(h)		346,620		369,387

14 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
4.50%, 05/01/19 to 09/01/43 (b)		6,772,598		7,334,359
3.00%, 12/01/25 to 09/01/43 (b)		13,430,836		13,491,056
3.50%, 02/01/26 to 09/01/44 (b)		12,250,281		12,576,711
2.50%, 07/01/27 to 02/01/43 (b)		4,102,995		4,139,437
2.00%, 10/01/27 to 04/01/28 (b)		187,540		183,776
Ginnie Mae
5.00%, 11/15/17 to 07/20/44 (b)		6,173,892		6,848,510
6.50%, 05/15/24 (b)		5,930		6,727
4.00%, 04/20/26 to 09/20/44 (b)		12,523,895		13,320,283
5.50%, 04/20/26 to 07/20/38 (b)		2,206,705		2,487,394
3.50%, 05/20/26 to 08/20/44 (b)		13,649,107		14,155,592
3.00%, 02/20/27 to 08/20/44 (b)		9,349,908		9,457,742
2.50%, 01/20/28 to 02/20/43 (b)		549,029		552,761
2.00%, 07/20/28 (b)		22,542		22,092
1.63%, 04/20/32 (a)(b)(h)		179,308		186,307
6.00%, 09/15/32 to 12/15/38 (b)		1,158,652		1,320,796
4.50%, 02/20/34 to 07/20/44 (b)		10,928,818		11,911,689
3.50%, 08/20/37 to 04/20/44 (a)(b)		245,347		257,733
4.00%, 10/20/37 to 09/20/39 (a)(b)		189,439		198,559
1.63%, 08/20/38 to 03/20/40 (a)(b)		444,378		460,062
2.00%, 03/20/40 to 05/20/43 (a)(b)		628,315		641,671
3.00%, 10/20/40 to 06/20/41 (a)(b)		306,096		320,556
2.50%, 02/20/44 (a)(b)		204,066		207,509
				232,275,414
Total Mortgage-Backed Securities
(Cost $262,671,773)				264,642,639
Municipal Bonds 1.0% of net assets
Fixed-Rate Obligations 1.0%
Bay Area Toll Authority
RB (Build America Bonds) Series 2010S3
6.91%, 10/01/50		100,000		142,942
California
GO (Build America Bonds) Series 2009
7.50%, 04/01/34		500,000		713,840
GO (Build America Bonds) Series 2010
7.95%, 03/01/36 (b)		350,000		427,276
GO (Build America Bonds) Series 2009
7.55%, 04/01/39		400,000		583,680
Catholic Health Initiatives
1.60%, 11/01/17		100,000		100,513
4.35%, 11/01/42		225,000		220,460
Commonwealth of Massachusetts
GO (Build America Bonds) Series 2009
5.46%, 12/01/39		100,000		120,812
Connecticut
GO Bonds Series 2008A
5.85%, 03/15/32		200,000		243,916
Dallas County Hospital District
GO (Build America Bonds) Series C
5.62%, 08/15/44		150,000		184,278
Georgia
GO (Build America Bonds) Series H
4.50%, 11/01/25		1,300,000		1,439,646
Grand Parkway Transportation Corp.
RB Series 2013E
5.18%, 10/01/42		200,000		237,878
Illinois
GO Bonds (Pension Funding) Series 2003
4.95%, 06/01/23		100,000		103,744
GO Bonds (Pension Funding) Series 2003
5.10%, 06/01/33		500,000		486,025
JobsOhio Beverage System
RB (Build America Bonds) Series B
3.99%, 01/01/29		250,000		253,655
Los Angeles USD
GO (Build America Bonds) Series 2010
6.76%, 07/01/34		200,000		267,968
Metropolitan Government of Nashville & Davidson County
GO (Build America Bonds) Series 2010
5.71%, 07/01/34		20,000		23,511
Metropolitan Transportation Authority
RB (Build America Bonds) Series E
6.81%, 11/15/40		150,000		205,416
New Jersey State Turnpike Authority
RB (Build America Bonds) Series 2010A
7.10%, 01/01/41		100,000		138,791
New Jersey Transportation Trust Fund Authority
RB (Build America Bonds) Series 2010C
5.75%, 12/15/28		150,000		172,778
New York City Municipal Water Finance Authority
Water System RB (Build America Bonds) Series 2009
5.75%, 06/15/41		200,000		248,620
Water System RB (Build America Bonds) Series 2011CC
5.88%, 06/15/44		250,000		316,378
New York City Transitional Finance Authority
RB (Build America Bonds) Series 2011A1
5.51%, 08/01/37		200,000		240,740
President & Fellows of Harvard College
3.62%, 10/01/37		350,000		338,397
San Diego County Regional Transportation Commission
RB (Build America Bonds) Series 2010A
5.91%, 04/01/48		300,000		389,754
San Francisco City & County Public Utilities Commission
Water System RB (Build America Bonds) Series 2010DE
6.00%, 11/01/40		430,000		542,561
Texas
GO Mobility Fund Bonds (Build America Bonds) Series 2009A
5.52%, 04/01/39		600,000		748,764

15

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Texas Transportation Commission
RB (Build America Bonds) Series B
5.03%, 04/01/26		200,000		230,292
Total Municipal Bonds
(Cost $8,974,121)				9,122,635
U.S. Government and Government Agencies 38.8% of net assets
U.S. Government Agency Securities 3.5%
Fannie Mae
1.63%, 10/26/15 (h)		2,032,000		2,062,801
0.75%, 04/20/17		900,000		895,013
1.13%, 04/27/17		769,000		773,059
2.00%, 05/16/17 (b)		2,500,000		2,552,250
0.88%, 08/28/17		1,172,000		1,164,621
1.00%, 09/27/17		1,150,000		1,145,995
1.00%, 10/16/17 (b)		150,000		148,498
0.88%, 02/08/18		350,000		344,529
0.88%, 05/21/18		1,250,000		1,224,640
1.13%, 05/25/18 (b)		300,000		295,186
1.88%, 02/19/19		1,500,000		1,504,965
1.75%, 06/20/19		200,000		198,611
2.25%, 10/17/22 (b)		300,000		286,231
7.13%, 01/15/30 (h)		277,000		405,508
Federal Farm Credit Bank
4.88%, 12/16/15		321,000		338,689
1.05%, 03/28/16		350,000		353,132
0.54%, 11/07/16 (b)		500,000		497,341
Federal Home Loan Bank
0.50%, 11/20/15		1,850,000		1,855,446
1.00%, 06/21/17		1,585,000		1,586,073
1.00%, 11/09/17 (b)		500,000		495,577
5.00%, 11/17/17 (h)		1,185,000		1,321,334
2.13%, 03/10/23		250,000		238,908
2.88%, 06/14/24		375,000		374,424
Freddie Mac
0.50%, 06/06/16 (b)		500,000		498,669
0.88%, 10/14/16		400,000		401,804
0.88%, 02/22/17		2,150,000		2,149,650
1.00%, 07/28/17		619,000		616,712
1.00%, 09/29/17		350,000		348,574
0.88%, 03/07/18		4,140,000		4,070,870
1.50%, 06/26/18 (b)		200,000		199,737
1.38%, 05/01/20		750,000		723,391
2.38%, 01/13/22		2,351,000		2,338,961
3.00%, 01/18/28 (b)		200,000		185,335
6.75%, 03/15/31 (h)		264,000		380,994
Tennessee Valley Authority
6.75%, 11/01/25		488,000		655,395
				32,632,923
U.S. Treasury Obligations 35.3%
U.S. Treasury Bonds
9.13%, 05/15/18 (h)		2,331,000		2,976,123
8.00%, 11/15/21 (h)		2,149,000		2,975,022
6.25%, 08/15/23		1,500,000		1,963,828
6.00%, 02/15/26 (h)		891,000		1,189,624
6.75%, 08/15/26		1,324,000		1,881,322
6.13%, 11/15/27		2,388,000		3,282,380
5.25%, 02/15/29		1,328,000		1,710,423
6.25%, 05/15/30		1,485,000		2,121,810
4.75%, 02/15/37		1,586,000		2,026,610
4.38%, 02/15/38 (h)		2,368,000		2,875,455
3.50%, 02/15/39 (h)		1,472,000		1,566,645
4.50%, 08/15/39		1,350,000		1,676,003
4.38%, 11/15/39		1,581,000		1,929,685
4.63%, 02/15/40		815,000		1,032,503
4.25%, 11/15/40 (h)		909,000		1,092,149
3.75%, 08/15/41		1,623,000		1,802,291
3.13%, 02/15/42 (h)		2,940,000		2,911,979
3.00%, 05/15/42		1,493,000		1,442,145
2.75%, 08/15/42		1,899,000		1,740,551
2.75%, 11/15/42		1,920,000		1,757,100
2.88%, 05/15/43		1,899,000		1,779,422
3.63%, 08/15/43		1,633,000		1,765,427
3.75%, 11/15/43		318,000		351,539
3.63%, 02/15/44		3,045,000		3,291,456
3.38%, 05/15/44		3,912,000		4,039,750
3.13%, 08/15/44		3,000,000		2,952,423
U.S. Treasury Notes
0.25%, 10/15/15		2,750,000		2,753,223
1.25%, 10/31/15 (h)		6,615,000		6,692,647
0.38%, 11/15/15		2,000,000		2,004,218
0.25%, 12/15/15 (h)		3,112,000		3,113,397
0.38%, 01/15/16		6,634,000		6,644,104
0.38%, 02/15/16		2,885,000		2,888,944
0.25%, 02/29/16		2,675,000		2,673,066
2.13%, 02/29/16 (h)		1,180,000		1,210,307
0.38%, 03/15/16		6,477,000		6,480,666
0.38%, 03/31/16		2,140,000		2,140,710
0.38%, 04/30/16		2,534,000		2,533,258
2.00%, 04/30/16 (h)		2,302,000		2,359,999
2.63%, 04/30/16 (h)		3,419,000		3,539,065
0.25%, 05/15/16		1,216,000		1,212,793
0.38%, 05/31/16		2,026,000		2,024,140
3.25%, 05/31/16 (h)		1,050,000		1,098,973
0.50%, 06/15/16		3,840,000		3,843,974
0.50%, 06/30/16		5,068,000		5,071,365
1.50%, 06/30/16 (h)		2,694,000		2,741,988
3.25%, 06/30/16		2,000,000		2,096,406
0.63%, 07/15/16		4,676,000		4,687,232
0.50%, 07/31/16		2,600,000		2,600,507
0.50%, 08/31/16		6,300,000		6,293,971
1.00%, 08/31/16		1,088,000		1,096,967
3.00%, 08/31/16		2,500,000		2,616,112
0.88%, 09/15/16		3,750,000		3,770,726
1.00%, 09/30/16		2,176,000		2,192,575
3.00%, 09/30/16 (h)		1,690,000		1,770,275
0.63%, 10/15/16		6,004,000		6,002,127
0.63%, 11/15/16		1,633,000		1,631,150
0.88%, 12/31/16		2,176,000		2,182,034
0.75%, 01/15/17		1,633,000		1,632,170
0.88%, 01/31/17		2,176,000		2,180,419
0.88%, 02/28/17		2,140,000		2,142,425
0.75%, 03/15/17		3,217,000		3,211,219
3.25%, 03/31/17		2,275,000		2,409,100
0.88%, 04/15/17		2,786,000		2,786,326
0.88%, 04/30/17		2,786,000		2,783,387
0.88%, 05/15/17		1,500,000		1,498,184
0.63%, 05/31/17		4,249,000		4,212,650

16 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
0.75%, 06/30/17		1,510,000		1,500,150
0.88%, 07/15/17		4,500,000		4,484,884
0.50%, 07/31/17		3,000,000		2,954,883
0.88%, 08/15/17		2,500,000		2,488,182
0.63%, 08/31/17 (h)		3,360,000		3,315,900
1.88%, 08/31/17 (h)		3,337,600		3,415,827
1.88%, 09/30/17 (h)		2,012,000		2,057,270
0.75%, 10/31/17 (h)		3,851,000		3,802,712
1.88%, 10/31/17 (h)		1,745,000		1,783,444
0.75%, 12/31/17		1,747,000		1,719,431
0.75%, 02/28/18		1,066,000		1,045,846
2.88%, 03/31/18 (h)		1,991,000		2,095,683
0.63%, 04/30/18		2,457,000		2,392,504
2.63%, 04/30/18 (h)		3,107,000		3,243,658
1.38%, 06/30/18		1,619,000		1,614,447
1.50%, 08/31/18		1,088,000		1,087,617
1.38%, 09/30/18		4,191,000		4,165,297
1.25%, 10/31/18		2,729,000		2,694,994
1.25%, 11/30/18		1,633,000		1,610,674
1.50%, 12/31/18		2,176,000		2,165,290
1.25%, 01/31/19		2,122,000		2,086,688
1.50%, 01/31/19		2,176,000		2,162,655
1.38%, 02/28/19		1,604,000		1,583,700
1.50%, 02/28/19		1,337,000		1,327,652
1.50%, 03/31/19		2,500,000		2,480,860
1.63%, 03/31/19		4,020,000		4,009,009
1.25%, 04/30/19		1,823,000		1,786,824
1.63%, 04/30/19		1,520,000		1,514,478
3.13%, 05/15/19		1,000,000		1,062,852
1.13%, 05/31/19		1,520,000		1,478,615
1.50%, 05/31/19		2,913,000		2,882,961
1.00%, 06/30/19		1,000,000		965,547
1.63%, 06/30/19		3,040,000		3,024,207
0.88%, 07/31/19 (h)		4,201,000		4,025,575
1.63%, 07/31/19		1,000,000		993,789
1.00%, 08/31/19		700,000		673,723
1.63%, 08/31/19		3,500,000		3,476,347
1.75%, 09/30/19		4,500,000		4,494,199
3.38%, 11/15/19 (h)		3,110,700		3,349,956
1.00%, 11/30/19		1,483,000		1,421,131
1.38%, 01/31/20 (h)		2,832,000		2,759,540
1.13%, 03/31/20		1,384,000		1,326,261
1.88%, 06/30/20		1,346,000		1,338,639
2.63%, 08/15/20 (h)		1,776,000		1,836,425
1.75%, 10/31/20		1,500,000		1,471,992
2.63%, 11/15/20 (h)		2,608,000		2,690,009
2.38%, 12/31/20		4,091,000		4,156,521
2.13%, 01/31/21		1,500,000		1,500,117
3.63%, 02/15/21 (h)		2,003,000		2,185,461
2.00%, 02/28/21		1,965,000		1,948,498
2.25%, 03/31/21		1,576,000		1,585,358
2.25%, 04/30/21		2,786,000		2,800,365
3.13%, 05/15/21		1,000,000		1,059,883
2.00%, 05/31/21		2,534,000		2,504,900
2.13%, 06/30/21		1,512,000		1,505,562
2.25%, 07/31/21		3,000,000		3,010,665
2.13%, 08/15/21		2,171,900		2,161,464
2.00%, 08/31/21		3,500,000		3,452,830
2.00%, 11/15/21		300,000		295,406
1.63%, 08/15/22		1,961,000		1,862,415
1.63%, 11/15/22		2,177,000		2,057,944
2.00%, 02/15/23		1,594,000		1,547,052
1.75%, 05/15/23		1,500,000		1,421,954
2.50%, 08/15/23		2,176,000		2,189,261
2.75%, 11/15/23		2,046,000		2,097,469
2.75%, 02/15/24		1,119,000		1,145,489
2.50%, 05/15/24		3,190,000		3,192,367
2.38%, 08/15/24		2,000,000		1,977,032
				326,476,804
Total U.S. Government and Government Agencies
(Cost $359,371,483)				359,109,727
	Number		Value
Security	of Shares		($)
Other Investment Company 0.4% of net assets
Money Market Fund 0.4%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)		3,334,696		3,334,696
Total Other Investment Company
(Cost $3,334,696)				3,334,696
Security	Face		Value
Rate, Maturity Date	Amount ($)		($)
Short-Term Investments 3.8% of net assets
U.S. Government Agency Securities 3.8%
Federal Home Loan Bank
0.05%, 10/01/14 (f)		15,000,000		15,000,000
0.01%, 10/24/14 (f)		20,000,000		19,999,936
Total Short-Term Investments
(Cost $34,999,936)				34,999,936
End of Investments

At 09/30/14, the tax basis cost of the fund’s investments was $952,160,396 and the unrealized appreciation and depreciation were $7,453,572 and ($4,011,678), respectively, with a net unrealized appreciation $3,441,894.

*	Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others.
(a)	Variable-rate security.
(b)	The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,885,077 or 0.4% of net assets.
(d)	Guaranteed by the Republic of Germany.
(e)	The rate shown is the 7-day yield.
(f)	The rate shown is the purchase yield.
(g)	Security or a portion of the security purchased on a delayed delivery or when-issued basis.

17

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

(h) All or a portion of this security is held as collateral for delayed-delivery securities.

GO —	General obligation
RB —	Revenue bond
REIT —	Real Estate Investment Trust
USD —	Unified school district

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

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

•  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.

•  Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, the fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. 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 fund pursuant to the valuation procedures.

•  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 net asset values (“NAVs”).

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

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

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

18 

 Schwab U.S. Aggregate Bond ETF

Portfolio Holdings (Unaudited) continued

government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of September 30, 2014:

	Quoted Prices in				Significant
	Active Markets for		Other Significant		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Asset-Backed Obligations		$—		$4,572,326		$—		$4,572,326
Commercial Mortgage-Backed Securities		—		18,775,279		—		18,775,279
Corporate Bonds1		—		213,213,164		—		213,213,164
Foreign Securities1		—		47,831,888		—		47,831,888
Mortgage-Backed Securities1		—		264,642,639		—		264,642,639
Municipal Bonds1		—		9,122,635		—		9,122,635
U.S. Government and Government Agencies1		—		359,109,727		—		359,109,727
Other Investment Company1		3,334,696		—		—		3,334,696
Short-Term Investments1		—		34,999,936		—		34,999,936
Total		$3,334,696		$952,267,594		$—		$955,602,290

¹ As categorized in Portfolio Holdings.

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

	Balance								Change in											Balance
	as of		Accrued			Realized			Unrealized							Gross		Gross		as of
Investments in	December 31,		Discounts			Gains			Gains		Gross		Gross			Transfers		Transfers		September 30,
Securities	2013		(Premiums)			(Losses)			(Losses)		Purchases		Sales			in		out		2014
Corporate Bonds		$96,750		($93	)		($79	)		$3,250		$295,150		($394,978	)		$—		$—		$—
Total		$96,750		($93	)		($79	)		$3,250		$295,150		($394,978	)		$—		$—		$—

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 September 30, 2014.

REG64288SEP14

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Item 2. Controls and Procedures.

(a) Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Marie Chandoha and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.

(b) During Registrant’s last fiscal quarter, there have been no changes in Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Schwab Strategic Trust

By:	/s/ Marie Chandoha
	Marie Chandoha
	Chief Executive Officer
Date:	November 21, 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:	November 21, 2014
By:	/s/ George Pereira
	George Pereira
	Principal Financial Officer
Date:	November 21, 2014