NPORT-EX 2 NPORT_2MGC_81364374_1222.htm EDGAR HTML
Schwab Strategic Trust
Schwab Ariel ESG ETF
Portfolio Holdings as of December 31, 2022 (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. You can also obtain this information at no cost by calling 1-866-414-6349 or by sending an email request to orders@mysummaryprospectus.com.  
 
SECURITY
NUMBER
OF SHARES
VALUE ($)
COMMON STOCKS 99.0% OF NET ASSETS
 
Automobiles & Components 3.7%
BorgWarner, Inc.
5,143
207,006
Gentex Corp.
9,675
263,837
 
 
470,843
 
Banks 2.1%
M&T Bank Corp.
1,853
268,796
 
Capital Goods 14.2%
Generac Holdings, Inc. *
2,023
203,635
Kennametal, Inc.
9,188
221,063
Masco Corp.
2,640
123,209
nVent Electric plc
7,802
300,143
Resideo Technologies, Inc. *
16,819
276,673
Sensata Technologies Holding plc
5,155
208,159
Simpson Manufacturing Co., Inc.
1,420
125,897
Snap-on, Inc.
806
184,163
The Middleby Corp. *
1,326
177,551
 
 
1,820,493
 
Commercial & Professional Services 7.2%
Brady Corp., Class A
2,580
121,518
Dun & Bradstreet Holdings, Inc.
12,384
151,828
Korn Ferry
2,198
111,263
Stericycle, Inc. *
5,031
250,996
The Brink's Co.
5,401
290,088
 
 
925,693
 
Consumer Durables & Apparel 2.9%
Mattel, Inc. *
13,255
236,469
Mohawk Industries, Inc. *
1,290
131,864
 
 
368,333
 
Consumer Services 11.3%
ADT, Inc.
29,342
266,132
Adtalem Global Education, Inc. *
3,511
124,641
Lindblad Expeditions Holdings, Inc. *
37,143
286,001
Norwegian Cruise Line Holdings Ltd. *
29,705
363,589
OneSpaWorld Holdings Ltd. *
44,604
416,155
 
 
1,456,518
 
Diversified Financials 7.9%
KKR & Co., Inc.
5,160
239,527
Lazard Ltd., Class A
6,175
214,087
SECURITY
NUMBER
OF SHARES
VALUE ($)
Northern Trust Corp.
3,056
270,426
The Goldman Sachs Group, Inc.
843
289,469
 
 
1,013,509
 
Food & Staples Retailing 0.5%
Walgreens Boots Alliance, Inc.
1,644
61,420
 
Food, Beverage & Tobacco 0.7%
The JM Smucker Co.
613
97,136
 
Health Care Equipment & Services 6.6%
Envista Holdings Corp. *
5,486
184,714
Laboratory Corp. of America Holdings
946
222,764
Patterson Cos., Inc.
6,292
176,365
Zimmer Biomet Holdings, Inc.
1,988
253,470
Zimvie, Inc. *
1,568
14,645
 
 
851,958
 
Household & Personal Products 1.2%
Reynolds Consumer Products, Inc.
5,002
149,960
 
Insurance 4.9%
Aflac, Inc.
3,184
229,057
First American Financial Corp.
4,257
222,812
The Progressive Corp.
1,337
173,422
 
 
625,291
 
Materials 1.5%
Axalta Coating Systems Ltd. *
7,482
190,567
 
Media & Entertainment 8.7%
Madison Square Garden Entertainment
Corp. *
5,582
251,022
Madison Square Garden Sports Corp.
1,032
189,197
Manchester United Plc, Class A
14,567
339,848
Paramount Global, Class B
7,253
122,431
The Interpublic Group of Cos., Inc.
6,608
220,112
 
 
1,122,610
 
Pharmaceuticals, Biotechnology & Life Sciences 5.1%
Bio-Rad Laboratories, Inc., Class A *
305
128,250
Charles River Laboratories International,
Inc. *
1,018
221,822
Prestige Consumer Healthcare, Inc. *
4,850
303,610
 
 
653,682
 
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Schwab Ariel ESG ETF
Portfolio Holdings (Unaudited) continued
SECURITY
NUMBER
OF SHARES
VALUE ($)
Real Estate 2.9%
CBRE Group, Inc., Class A *
2,709
208,485
Jones Lang LaSalle, Inc. *
1,061
169,091
 
 
377,576
 
Retailing 2.7%
CarMax, Inc. *
2,175
132,436
Leslie's, Inc. *
17,194
209,938
 
 
342,374
 
Software & Services 5.7%
Fair Isaac Corp. *
446
266,966
Fiserv, Inc. *
3,096
312,913
The Hackett Group, Inc.
7,830
159,497
 
 
739,376
 
Technology Hardware & Equipment 9.2%
Keysight Technologies, Inc. *
1,543
263,961
Knowles Corp. *
11,500
188,830
Littelfuse, Inc.
934
205,667
SECURITY
NUMBER
OF SHARES
VALUE ($)
Motorola Solutions, Inc.
714
184,005
Zebra Technologies Corp., Class A *
1,307
335,128
 
 
1,177,591
Total Common Stocks
(Cost $14,753,967)
12,713,726
 
 
 
 
SHORT-TERM INVESTMENTS 1.0% OF NET ASSETS
 
Money Market Funds 1.0%
State Street Institutional U.S. Government
Money Market Fund, Premier Class
4.12% (a)
124,534
124,534
Total Short-Term Investments
(Cost $124,534)
124,534
Total Investments in Securities
(Cost $14,878,501)
12,838,260
 
*
Non-income producing security.
(a)
The rate shown is the annualized 7-day yield.
 
The following is a summary of the inputs used to value the fund’s investments as of December 31, 2022:  
DESCRIPTION
QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1)
OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3)
TOTAL
Assets
 
 
 
 
Common Stocks1
$12,713,726
$—
$—
$12,713,726
Short-Term Investments1
124,534
—
—
124,534
Total
$12,838,260
$—
$—
$12,838,260
 
1
As categorized in the Portfolio Holdings.
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
2  
Schwab Ariel ESG ETF
Notes to Portfolio Holdings (Unaudited)
Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees (the Board) has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes.
• Mutual funds: Mutual funds are valued at their respective net asset values (NAVs).
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued 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. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
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 significant 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 the Valuation Designee’s 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 Investments — 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, mutual funds and exchange-traded funds. Underlying funds are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
• 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.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used 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.
REG117329DEC22
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