N-CSRS

Schwab Value Advantage Money Fund

Fund Management

Linda Klingman, Managing Director and Head of Money Market Strategies for CSIM, leads the portfolio management teams for Schwab’s taxable and tax-exempt money market funds, and has overall responsibility for all aspects of the management of the fund. Prior to joining CSIM in 1990, she was a senior money market trader with AIM Management, Inc. for five years. She has managed money market funds since 1988.

Michael Lin, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Lin has been a portfolio manager with CSIM since 2006, and also worked in CSIM’s fund administration group for nearly four years, where he focused on security pricing and valuation of the Schwab Funds. Prior to joining CSIM, he was a senior trader of the taxable money market funds at American Century Investments for three years.

Jonathan Roman, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Roman has been a portfolio manager with CSIM since 2010 and has held a number of positions at the firm since beginning his tenure in 2005. In 2009, he joined the portfolio management group as a trader, and prior to that he worked in portfolio operations and analytics, providing trading support to the taxable money market desk.

Jonathan Feske, CFA, Portfolio Manager, is responsible for the day-to-day co-management of the fund. He previously was responsible for credit and investment research for global banks for the Schwab Taxable Bond Funds and Schwab Money Funds. Prior to joining Schwab in 2011, Mr. Feske was a high-yield bond analyst for more than two years at Miller Tabak Roberts Securities, a boutique corporate bond broker-dealer, which is now part of GMP Capital. He covered both U.S. and emerging market credits, focusing on distressed situations in various industrial sectors. Previously, Mr. Feske was employed in the securities industry as an equity trader for three years.

Karim Menoufy, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Previously, Mr. Menoufy was an associate portfolio manager with CSIM since 2013, and held a number of positions supporting the taxable and tax-exempt money funds during his tenure at the firm. Prior to joining CSIM in 2007, he spent several years as a mortgage specialist at JPMorgan Chase and an equity plan administrator for Delegata Corporation.

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Schwab Value Advantage Money Fund

The Schwab Value Advantage Money Fund (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market investments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, promissory notes, certificates of deposit and time deposits, variable- and floating-rate debt securities, repurchase agreements, bank notes and bankers’ acceptances, and obligations that are issued by the U.S. government, its agencies or instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Market Highlights. Over the six-month reporting period ended June 30, 2021, demand for government money market funds rose, while demand for prime and municipal money funds fell. The extensive fiscal stimulus programs passed by the U.S. Congress resulted in a significant amount of cash being invested in money market funds. Low interest rates, high demand from investors seeking safety, and declining supply of U.S. Treasury securities, kept yields low.

Although the U.S. economy has demonstrated resilience given the dramatic impact of the COVID-19 pandemic, the federal funds target range remained at 0.00% to 0.25% through the reporting period. The U.S. Federal Reserve (Fed) reiterated its intention to continue its support of the economy and affirmed that it would continue its bond-buying program, which aims to keep interest rates low and inject cash into the economy to encourage lending and investment, while acknowledging that it was keeping an eye on rising inflation.

Outside the U.S., major central banks maintained the low—or for some international central banks, negative—interest rates instituted prior to, and in response to, the COVID-19 pandemic. The European Central Bank held interest rates at 0.00%, unchanged since March 2016, and increased its asset purchase program to counter the impact of the COVID-19 pandemic. The Bank of Japan upheld its short-term interest rate target of -0.1%, also unchanged since 2016, and maintained other programs intended to help support economic growth. The Bank of England maintained its key official bank rate at 0.10% and also reiterated its commitment to its bond-buying program.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved, and on continuing a rigorous credit review process and ongoing monitoring for all issuers and regions in which the fund invests. The fund’s weighted average maturity (WAM) increased over the reporting period, beginning the period at 36 days and ending it at 46 days.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

46 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Value Advantage Money Fund

Performance and Fund Facts as of June 30, 2021

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. To obtain more current performance information, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.

Seven-Day Average Yield Trend for Previous 12 Months

Seven-Day Yields

The seven-day yield is the income generated by the fund’s portfolio holdings minus the fund’s operating expenses. The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.

	Schwab Value Advantage Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SWVXX	SNAXX
Minimum Initial Investment¹	None	$1,000,000
Seven-Day Yield (with waivers)²	0.03%	0.03%
Seven-Day Yield (without waivers)²	-0.21%	-0.06%
Seven-Day Effective Yield (with waivers)²	0.03%	0.03%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Please see prospectus for further detail and eligibility requirements.

The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Value Advantage Money Fund

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning January 1, 2021 and held through June 30, 2021.

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

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

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Expense Ratio (Annualized)^1,2	Beginning Account Value at 1/1/21	Ending Account Value (Net of Expenses) at 6/30/21	Expenses Paid During Period 1/1/21-6/30/21³
Schwab Value Advantage Money Fund
Investor Shares
Actual Return	0.12%	$1,000.00	$1,000.10	$0.60
Hypothetical 5% Return	0.12%	$1,000.00	$1,024.20	$0.60
Ultra Shares
Actual Return	0.12%	$1,000.00	$1,000.10	$0.60
Hypothetical 5% Return	0.12%	$1,000.00	$1,024.20	$0.60

¹	Based on the most recent six-month expense ratio.
²	Expense ratio (annualized) reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
³	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Value Advantage Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.00 ²	0.02	0.02	0.01	0.00 ²
Net realized and unrealized gains (losses)	(0.00) ²	0.00 ²	0.00 ²	(0.00) ²	—	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.02	0.02	0.01	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.02)	(0.02)	(0.01)	(0.00) ²
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	—	—	(0.00) ²
Total distributions	(0.00) ²	(0.00) ²	(0.02)	(0.02)	(0.01)	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.01% ³	0.44%	2.07%	1.79%	0.81%	0.25%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.12% ⁴^,⁵	0.28% ⁵^,⁶	0.34%	0.34%	0.39% ⁷	0.41% ⁵
Gross operating expenses	0.35% ⁴	0.41%	0.42%	0.44%	0.54%	0.58%
Net investment income (loss)	0.03% ⁴	0.47%	2.02%	1.87%	0.84%	0.25%
Net assets, end of period (x 1,000,000)	$46,793	$56,419	$74,972	$47,721	$14,955	$7,060

Ultra Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17⁸	1/1/16– 12/31/16
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.01	0.02	0.02	0.01	0.00 ²
Net realized and unrealized gains (losses)	(0.00) ²	0.00 ²	0.00 ²	(0.00) ²	—	0.00 ²
Total from investment operations	0.00 ²	0.01	0.02	0.02	0.01	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.01)	(0.02)	(0.02)	(0.01)	(0.00) ²
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	—	—	(0.00) ²
Total distributions	(0.00) ²	(0.01)	(0.02)	(0.02)	(0.01)	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.01% ³	0.53%	2.22%	1.94%	1.00%	0.45%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.12% ⁴^,⁵	0.18% ⁵^,⁶	0.19%	0.19%	0.20% ⁷	0.21% ⁵
Gross operating expenses	0.20% ⁴	0.26%	0.27%	0.29%	0.33%	0.35%
Net investment income (loss)	0.03% ⁴	0.56%	2.17%	2.00%	1.08%	0.44%
Net assets, end of period (x 1,000,000)	$32,945	$37,882	$47,497	$29,554	$12,612	$2,015

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Annualized.

⁵

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁶

Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.

⁷

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

⁸

Effective November 17, 2017, the Select Shares and Premier Shares were combined into the Ultra Shares. The financial history as shown in the financial highlights is that of the former Ultra Shares.

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited)

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

The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) monthly on Form N-MFP, which is available immediately upon filing. The fund’s Form N-MFP is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 5 business days after month end on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus.

For fixed-rate obligations and repurchase agreements, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security’s structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 59.5% of net assets
Asset-Backed Commercial Paper 5.5%
ANTALIS SA (ILE-DE-FRANCE)	a,b	0.20%		07/06/21	69,000,000	68,998,083
	a,b	0.17%		07/21/21	1,700,000	1,699,839
	a,b	0.17%		08/11/21	33,050,000	33,043,601
ATLANTIC ASSET SECURITIZATION LLC	a,b	0.15%		07/08/21	13,700,000	13,699,600
	a,b	0.14%		08/10/21	74,000,000	73,988,489
BARTON CAPITAL SA	a,b	0.17%		07/01/21	20,000,000	20,000,000
BEDFORD ROW FUNDING CORP	a,b	0.18%		11/03/21	150,000,000	149,906,250
BENNINGTON STARK CAPITAL CO LLC	a,b	0.07%		07/06/21	39,000,000	38,999,621
	a,b	0.08%		07/06/21	37,000,000	36,999,589
	a,b	0.13%		07/06/21	40,000,000	39,999,278
	a,b	0.13%		09/07/21	100,000,000	99,975,444
	a,b	0.12%		09/08/21	36,000,000	35,991,720
CAFCO LLC	a,b	0.17%		07/27/21	50,000,000	49,993,861
	a,b	0.15%		08/11/21	40,000,000	39,993,167
CHARIOT FUNDING LLC	a,b	0.15%		07/01/21	100,000,000	100,000,000
	a,b	0.22%		07/07/21	110,000,000	109,995,967
	a,b	0.15%		07/15/21	225,000,000	224,986,875
	a,b	0.14%		07/26/21	120,000,000	119,988,333
	a,b	0.07%		08/23/21	60,000,000	59,993,817
CHARTA LLC	a,b	0.17%		07/27/21	100,000,000	99,987,722
	a,b	0.12%		12/01/21	25,000,000	24,987,250
COLLATERALIZED COMMERCIAL PAPER V CO LLC	a	0.20%		07/22/21	88,000,000	87,989,733
	a	0.18%		08/09/21	113,000,000	112,977,965
	a	0.18%		08/17/21	92,000,000	91,978,380
	a	0.18%		08/23/21	55,000,000	54,985,425
	a	0.18%		08/30/21	74,000,000	73,977,800
	a	0.18%		09/03/21	140,000,000	139,955,200
	a	0.18%		09/09/21	142,000,000	141,950,300
	a	0.19%		09/15/21	105,000,000	104,957,883
	a	0.20%		09/27/21	97,000,000	96,952,578
	a	0.20%		11/01/21	100,000,000	99,931,667

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	a	0.18%		11/08/21	192,000,000	191,875,200
	a	0.17%		11/18/21	35,000,000	34,976,861
CRC FUNDING LLC	a,b	0.17%		07/27/21	75,000,000	74,990,792
	a,b	0.12%		12/01/21	95,000,000	94,951,550
CROWN POINT CAPITAL CO LLC	a,b	0.16%		07/06/21	35,000,000	34,999,222
FAIRWAY FINANCE CO LLC	a,b	0.14%		08/11/21	25,000,000	24,996,014
LMA AMERICAS LLC	a,b	0.14%		07/26/21	27,000,000	26,997,375
MANHATTAN ASSET FUNDING CO LLC	a,b	0.17%		10/22/21	47,410,000	47,384,702
	a,b	0.17%		11/01/21	122,750,000	122,678,703
METLIFE SHORT TERM FUNDING LLC	a,b	0.21%		07/06/21	42,500,000	42,498,760
PRICOA SHORT TERM FUNDING LLC	a,b	0.22%		11/05/21	46,000,000	45,964,299
RIDGEFIELD FUNDING CO LLC	a,b	0.11%		08/26/21	68,752,000	68,740,236
	a,b	0.13%		09/02/21	100,000,000	99,977,250
	a,b	0.09%		09/16/21	133,582,000	133,556,285
	a,b	0.08%		09/23/21	142,000,000	141,973,493
	a,b	0.10%		09/23/21	11,000,000	10,997,433
	a,b	0.08%		09/28/21	242,000,000	241,952,138
	a,b	0.10%		09/28/21	35,000,000	34,991,347
STARBIRD FUNDING CORP	a,b	0.15%		07/07/21	89,000,000	88,997,775
	a,b	0.19%		10/07/21	20,000,000	19,989,656
THUNDER BAY FUNDING LLC	a,b	0.18%		02/18/22	100,000,000	99,884,000
VERSAILLES COMMERCIAL PAPER LLC	a,b	0.12%		10/04/21	50,000,000	49,984,167
	a,b	0.12%		10/05/21	100,000,000	99,968,000
VICTORY RECEIVABLES CORP	a,b	0.06%		07/02/21	77,000,000	76,999,872
						4,359,210,567
Financial Company Commercial Paper 16.2%
BANK OF NOVA SCOTIA	b	0.18%		02/22/22	240,000,000	239,716,800
BARCLAYS BANK UK PLC	b	0.15%		07/26/21	179,000,000	178,981,354
	b	0.12%		09/02/21	58,000,000	57,987,820
	b	0.13%		09/02/21	78,000,000	77,982,255
	b	0.13%		09/07/21	100,000,000	99,975,444
BAYERISCHE LANDESBANK (NEW YORK BRANCH)		0.07%		07/06/21	328,000,000	327,996,811
		0.06%		07/08/21	193,000,000	192,997,748
BNP PARIBAS SA	b	0.17%		08/12/21	65,000,000	64,987,108
BOFA SECURITIES INC	b	0.10%		12/16/21	157,500,000	157,426,500
	b	0.14%		12/20/21	183,000,000	182,877,593
	b	0.14%		12/27/21	160,000,000	159,888,622
CAISSE DES DEPOTS ET CONSIGNATIONS	b	0.15%		07/30/21	500,000,000	499,941,597
CITIGROUP GLOBAL MARKETS INC	b	0.17%		09/23/21	73,300,000	73,270,924
	b	0.18%		10/07/21	287,000,000	286,859,370
	b	0.17%		11/05/21	486,000,000	485,708,535
DBS BANK LTD	b	0.16%		08/02/21	96,000,000	95,986,347
	b	0.17%		08/24/21	187,000,000	186,952,315

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	b	0.16%		09/27/21	29,000,000	28,988,658
	b	0.16%		10/01/21	100,000,000	99,959,111
	b	0.17%		10/22/21	37,000,000	36,980,256
FEDERATION DES CAISSES DESJARDINS DU QUEBEC	b	0.20%		07/13/21	200,000,000	199,986,667
	b	0.18%		09/23/21	31,000,000	30,986,980
ING US FUNDING LLC	a	0.13%		09/20/21	92,500,000	92,472,944
	a	0.18%		09/27/21	45,000,000	44,980,200
	a	0.18%		09/28/21	198,000,000	197,911,890
	a	0.18%		10/01/21	435,000,000	434,799,900
	a,b	0.15%		11/18/21	240,000,000	239,860,000
JP MORGAN SECURITIES LLC		0.20%		10/15/21	250,000,000	249,852,778
LANDESBANK HESSEN THUERINGEN GIROZENTRALE (NEW YORK BRANCH)	b	0.10%		07/06/21	97,000,000	96,998,653
LLOYDS BANK PLC		0.15%		07/02/21	150,000,000	149,999,375
		0.15%		07/15/21	146,000,000	145,991,483
		0.14%		08/27/21	200,000,000	199,955,667
		0.13%		08/31/21	150,000,000	149,968,229
		0.11%		10/05/21	99,000,000	98,970,960
MACQUARIE BANK LTD	b	0.11%		09/15/21	39,750,000	39,740,769
	b	0.10%		09/17/21	300,000	299,938
	b	0.11%		09/27/21	50,000,000	49,986,556
MIZUHO BANK LTD (SINGAPORE BRANCH)	b	0.17%		08/02/21	293,000,000	292,955,724
	b	0.17%		08/17/21	185,000,000	184,958,940
	b	0.16%		08/27/21	134,000,000	133,967,114
	b	0.12%		09/03/21	388,000,000	387,920,676
NATIONAL BANK OF CANADA	b	0.17%		08/16/21	24,000,000	23,994,787
	b	0.17%		08/17/21	180,000,000	179,960,050
	b	0.16%		09/24/21	330,000,000	329,875,333
	b	0.15%		09/27/21	125,000,000	124,954,167
	b	0.19%		10/21/21	65,000,000	64,961,578
NATIONWIDE BUILDING SOCIETY	b	0.06%		07/02/21	387,000,000	386,999,355
	b	0.06%		07/06/21	293,000,000	292,997,558
NORDEA BANK ABP	b	0.17%		08/19/21	312,000,000	311,929,930
NRW BANK	b	0.07%		07/08/21	240,000,000	239,996,967
	b	0.08%		08/27/21	194,250,000	194,225,395
SKANDINAVISKA ENSKILDA BANKEN AB	b	0.17%		11/08/21	200,000,000	199,877,222
	b	0.18%		11/15/21	360,000,000	359,753,400
	b	0.17%		12/01/21	32,800,000	32,776,302
	b	0.11%		12/02/21	17,000,000	16,992,001
	b	0.16%		12/14/21	65,700,000	65,651,528
	b	0.15%		12/22/21	120,000,000	119,913,000
	b	0.19%		12/22/21	104,000,000	103,904,493
SOCIETE GENERALE SA	b	0.15%		08/04/21	125,000,000	124,982,292
	b	0.15%		08/16/21	194,000,000	193,962,817
	b	0.11%		08/24/21	28,000,000	27,995,380
	b	0.11%		09/02/21	100,000,000	99,980,750

₉

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
	b	0.09%		09/07/21	250,000,000	249,957,500
	b	0.12%		10/01/21	125,000,000	124,963,264
SUMITOMO MITSUI TRUST BANK LTD (SINGAPORE BRANCH)	b	0.13%		09/02/21	49,000,000	48,988,853
	b	0.10%		09/24/21	200,000,000	199,952,778
	b	0.11%		09/28/21	100,000,000	99,974,042
	b	0.12%		10/05/21	150,000,000	149,952,000
SVENSKA HANDELSBANKEN AB	b	0.17%		03/18/22	73,000,000	72,910,372
SWEDBANK AB		0.16%		08/11/21	261,000,000	260,952,440
		0.19%		09/27/21	171,000,000	170,922,670
		0.17%		10/25/21	100,000,000	99,945,222
		0.18%		10/25/21	300,000,000	299,830,833
		0.18%		10/26/21	338,000,000	337,807,763
TORONTO-DOMINION BANK	b	0.17%		09/01/21	148,000,000	147,956,669
UNITED OVERSEAS BANK LTD	b	0.16%		08/27/21	150,000,000	149,962,000
	b	0.15%		03/09/22	7,000,000	6,992,679
WESTPAC BANKING CORP	b	0.17%		08/25/21	71,250,000	71,231,495
						12,946,015,496
Certificates of Deposit 20.5%
BANK OF MONTREAL (CHICAGO BRANCH)		0.17%		08/12/21	132,000,000	132,000,000
		0.17%		08/25/21	300,000,000	300,000,000
BARCLAYS BANK PLC (NEW YORK BRANCH)		0.16%		12/08/21	325,000,000	325,000,000
		0.16%		12/09/21	185,000,000	185,000,000
		0.14%		12/10/21	500,000,000	500,000,000
		0.14%		12/13/21	79,000,000	79,000,000
BAYERISCHE LANDESBANK (NEW YORK BRANCH)		0.06%		07/06/21	97,000,000	97,000,000
		0.06%		07/07/21	96,000,000	96,000,000
BNP PARIBAS (NEW YORK BRANCH)		0.16%		11/15/21	198,000,000	198,000,000
		0.12%		12/03/21	156,000,000	156,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)		0.16%		08/25/21	370,000,000	370,000,000
		0.17%		11/12/21	398,000,000	398,000,000
		0.11%		12/02/21	400,000,000	400,000,000
CITIBANK NA		0.18%		02/25/22	139,000,000	139,000,000
COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH)		0.09%		12/02/21	150,000,000	150,000,000
COOPERATIEVE RABOBANK UA (LONDON BRANCH)		0.22%		07/19/21	100,000,000	100,000,000
		0.18%		08/12/21	573,000,000	573,000,000
		0.19%		11/02/21	193,000,000	192,873,874
		0.19%		11/12/21	379,000,000	379,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)		0.10%		12/01/21	105,000,000	105,000,000
CREDIT SUISSE AG (NEW YORK BRANCH)		0.21%		09/03/21	500,000,000	500,000,000
DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK (NEW YORK BRANCH)		0.07%		09/16/21	21,000,000	21,000,000
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)		0.10%		07/01/21	332,000,000	332,000,000
		0.10%		07/06/21	298,000,000	298,000,000
		0.07%		07/07/21	168,000,000	168,000,000

₁₀

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
LANDESBANK HESSEN THUERINGEN GIROZENTRALE (NEW YORK BRANCH)		0.08%		07/06/21	391,000,000	391,000,000
MITSUBISHI UFJ TRUST AND BANKING CORP (LONDON BRANCH)		0.19%		11/15/21	44,000,000	44,000,000
MITSUBISHI UFJ TRUST AND BANKING CORP (NEW YORK BRANCH)		0.17%		07/13/21	150,000,000	150,000,000
		0.20%		08/18/21	107,000,000	107,000,000
		0.19%		08/23/21	93,000,000	93,000,000
		0.20%		08/30/21	151,000,000	151,000,000
		0.20%		09/01/21	95,000,000	95,000,000
		0.19%		09/09/21	155,000,000	155,000,000
		0.20%		09/15/21	225,000,000	225,000,000
		0.11%		10/18/21	86,000,000	86,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		0.15%		08/10/21	197,000,000	197,000,000
MUFG BANK LTD (LONDON BRANCH)		0.21%		08/10/21	170,000,000	170,000,000
		0.20%		09/01/21	95,000,000	95,000,000
		0.20%		09/02/21	285,000,000	285,000,000
		0.21%		09/10/21	76,000,000	76,000,000
		0.21%		10/20/21	119,000,000	119,000,000
		0.20%		10/26/21	233,000,000	233,000,000
		0.17%		11/19/21	223,000,000	223,000,000
MUFG BANK LTD (NEW YORK BRANCH)		0.23%		07/21/21	60,000,000	60,000,000
		0.19%		07/28/21	114,600,000	114,600,000
		0.20%		07/29/21	59,000,000	59,000,000
		0.17%		08/25/21	250,000,000	250,000,000
		0.17%		08/27/21	117,000,000	117,000,000
		0.17%		08/31/21	250,000,000	250,000,000
NATIONAL AUSTRALIA BANK LTD (LONDON BRANCH)		0.25%		07/22/21	4,500,000	4,500,183
		0.19%		07/27/21	189,000,000	189,000,000
		0.19%		08/06/21	250,000,000	250,000,000
		0.18%		09/01/21	295,000,000	295,000,000
		0.12%		12/02/21	165,000,000	165,000,000
NORDEA BANK ABP (NEW YORK BRANCH)		0.19%		07/14/21	200,000,000	200,000,000
		0.15%		07/26/21	200,000,000	200,000,000
		0.16%		07/26/21	200,000,000	200,000,000
		0.16%		08/16/21	432,500,000	432,500,000
OVERSEA CHINESE BANKING CORP LTD (NEW YORK BRANCH)		0.16%		12/01/21	69,000,000	69,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		0.17%		11/03/21	49,000,000	49,000,000
		0.17%		11/08/21	150,000,000	150,000,000
		0.15%		11/18/21	121,000,000	120,999,999
		0.10%		12/14/21	90,000,000	90,000,000
		0.19%		02/22/22	135,000,000	135,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)		0.21%		07/13/21	176,000,000	176,000,000
		0.20%		07/15/21	178,000,000	178,000,000
		0.20%		08/05/21	202,000,000	202,000,000
		0.18%		10/25/21	270,000,000	270,000,000
		0.17%		11/05/21	163,000,000	163,000,000
		0.14%		12/01/21	266,000,000	266,000,000

₁₁

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SUMITOMO MITSUI TRUST BANK LTD (LONDON BRANCH)		0.21%		07/02/21	169,000,000	168,999,015
		0.22%		07/08/21	165,000,000	165,000,000
		0.20%		07/20/21	147,000,000	146,984,492
		0.13%		09/20/21	182,000,000	181,946,785
		0.15%		09/21/21	145,000,000	144,952,130
		0.13%		09/24/21	100,000,000	99,970,496
		0.14%		10/08/21	95,000,000	94,963,439
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)		0.15%		08/20/21	100,000,000	100,000,000
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)		0.19%		09/09/21	100,000,000	100,000,972
		0.17%		11/12/21	500,000,000	500,000,000
		0.18%		11/22/21	275,000,000	275,000,000
		0.10%		12/01/21	152,000,000	152,000,000
SWEDBANK (NEW YORK BRANCH)		0.20%		07/07/21	50,000,000	50,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)		0.18%		03/28/22	252,000,000	252,000,000
		0.18%		03/30/22	100,000,000	100,000,000
		0.25%		04/20/22	35,000,000	35,000,000
						16,311,291,385
Non-U.S. Sovereign, Sub-Sovereign and Supra-National Debt 4.3%
CAISSE AMORTISSEMENT DE LA DETTE SOCIALE	b	0.16%		07/01/21	90,000,000	90,000,000
	b	0.14%		08/10/21	123,000,000	122,981,550
	b	0.15%		08/23/21	130,000,000	129,972,249
	b	0.15%		08/30/21	200,000,000	199,951,667
	b	0.12%		09/13/21	9,000,000	8,997,780
	b	0.09%		09/28/21	160,000,000	159,964,400
	b	0.09%		10/04/21	785,000,000	784,813,562
	b	0.10%		10/07/21	124,000,000	123,966,244
	b	0.09%		10/12/21	200,000,000	199,948,500
	b	0.10%		10/12/21	189,400,000	189,345,811
ERSTE ABWICKLUNGSANSTALT	b	0.13%		07/29/21	83,000,000	82,991,608
	b	0.08%		09/02/21	75,000,000	74,989,500
	b	0.13%		01/10/22	148,722,000	148,618,349
	b	0.14%		02/01/22	200,000,000	199,832,778
EUROPEAN INVESTMENT BANK		0.07%		09/16/21	200,000,000	199,970,055
FMS WERTMANAGEMENT AOER	b	0.15%		07/12/21	270,000,000	269,993,250
	b	0.13%		08/06/21	10,000,000	9,998,808
	b	0.10%		10/06/21	180,000,000	179,954,000
KFW	b	0.20%		01/21/22	175,000,000	174,801,667
	b	0.20%		01/28/22	44,000,000	43,948,422
						3,395,040,200
Non-Financial Company Commercial Paper 1.1%
EQUINOR ASA	b	0.06%		07/02/21	146,000,000	145,999,757
	b	0.09%		07/02/21	47,000,000	46,999,882
TOYOTA CREDIT CANADA INC		0.14%		01/04/22	100,000,000	99,927,278

₁₂

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
TOYOTA FINANCE AUSTRALIA LTD		0.15%		08/18/21	50,000,000	49,990,000
		0.13%		12/13/21	152,000,000	151,909,433
TOYOTA MOTOR CREDIT CORP		0.13%		01/10/22	250,000,000	249,825,764
		0.21%		01/14/22	75,000,000	74,913,812
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.		0.14%		12/17/21	47,800,000	47,768,585
UNITEDHEALTH GROUP INC	b	0.09%		07/07/21	5,000,000	4,999,925
						872,334,436
Non-Negotiable Time Deposits 11.1%
ABN AMRO BANK NV		0.09%		07/02/21	460,000,000	460,000,000
		0.09%		07/06/21	736,000,000	736,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		0.10%		07/01/21	723,000,000	723,000,000
		0.10%		07/02/21	666,000,000	666,000,000
		0.09%		07/07/21	716,000,000	716,000,000
BANCO SANTANDER SA (NEW YORK BRANCH)		0.10%		07/07/21	193,000,000	193,000,000
BANK OF NOVA SCOTIA		0.09%		07/01/21	96,000,000	96,000,000
		0.09%		07/06/21	167,000,000	167,000,000
CREDIT INDUSTRIEL ET COMMERCIAL		0.11%		07/06/21	798,000,000	798,000,000
DBS BANK LTD		0.07%		07/01/21	98,000,000	98,000,000
		0.07%		07/02/21	154,000,000	154,000,000
ING BANK NV		0.10%		07/07/21	439,000,000	439,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)		0.08%		07/01/21	96,000,000	96,000,000
NATIONAL AUSTRALIA BANK LTD (CAYMAN ISLANDS BRANCH)		0.06%		07/01/21	693,000,000	693,000,000
NRW BANK		0.06%		07/06/21	763,000,000	763,000,000
ROYAL BANK OF CANADA		0.09%		07/01/21	1,125,000,000	1,125,000,000
		0.07%		07/07/21	151,000,000	151,000,000
SANTANDER UK PLC		0.06%		07/01/21	387,000,000	387,000,000
		0.06%		07/02/21	173,000,000	173,000,000
		0.06%		07/07/21	238,000,000	238,000,000
						8,872,000,000
Other Instruments 0.8%
BANK OF AMERICA NA		0.18%		10/04/21	277,000,000	277,000,000
		0.17%		11/08/21	197,000,000	197,000,000
		0.17%		11/09/21	200,000,000	200,000,000
						674,000,000
Total Fixed-Rate Obligations
(Cost $47,429,892,084)						47,429,892,084

₁₃

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Variable-Rate Obligations 9.9% of net assets
Variable Rate Demand Notes 0.8%
ABAG FINANCE AUTH
TAXABLE RB (PUBLIC POLICY INSTITUTE OF CALIFORNIA) SERIES 2001B (LOC: WELLS FARGO BANK NA)	c	0.08%		07/07/21	17,550,000	17,550,000
BLUE MOUNTAIN ENTERPRISES, LLC
VARIABLE RATE DEMAND BONDS SERIES 2013 (LOC: WELLS FARGO BANK NA)	c	0.12%		07/07/21	2,770,000	2,770,000
CALHOUN CNTY NAVIGATION IDA
PORT RB (FORMOSA PLASTICS) SERIES 2011C (LOC: SUMITOMO MITSUI BANKING CORPORATION)	b,c	0.07%		07/07/21	15,000,000	15,000,000
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEVELOPMENT BANK
TAXABLE RB (CAPITAL CORRUGATED) SERIES 2016B (LOC: COMERICA BANK)	c	0.18%		07/07/21	1,480,000	1,480,000
CELLMARK, INC
TAXABLE NOTES SERIES 2018A (LOC: SWEDBANK AB)	c	0.12%		07/07/21	48,000,000	48,000,000
COOK CNTY
TAXABLE GO BONDS SERIES 2004D (LOC: BARCLAYS BANK PLC)	c	0.09%		07/07/21	29,000,000	29,000,000
DALLAS-FORT WORTH INT’L AIRPORT FACILITY IMPROVEMENT CORP
AIRPORT FACILITY RB (FLIGHTSAFETY) SERIES 1999	c	0.07%		07/07/21	6,180,000	6,180,000
EAGLE CNTY
RB (BC HOUSING) SERIES 1997B (LOC: WELLS FARGO BANK NA)	c	0.18%		07/07/21	1,500,000	1,500,000
RB (TARNES AT BC) SERIES 1999B (LOC: WELLS FARGO BANK NA)	c	0.18%		07/07/21	2,410,000	2,410,000
EDWARD-ELMHURST HEALTHCARE
TAXABLE BONDS SERIES 2018 (LOC: BARCLAYS BANK PLC)	c	0.08%		07/07/21	25,500,000	25,500,000
FULTON CNTY DEVELOPMENT AUTH
AIRPORT FACILITY RB (FLIGHTSAFETY) SERIES 1999B	c	0.07%		07/07/21	9,350,000	9,350,000
HARTFORD HEALTHCARE CORP
TAXABLE BONDS SERIES C (LOC: JPMORGAN CHASE BANK NA)	c	0.07%		07/07/21	49,000,000	49,000,000
ILLINOIS HOUSING DEVELOPMENT AUTH
HOUSING BONDS SERIES 2017A2 (LIQ: FEDERAL HOME LOAN BANKS)	c	0.09%		07/07/21	23,800,000	23,800,000
IOWA FINANCE AUTH
MIDWESTERN DISASTER AREA RB (CARGILL) SERIES 2009A	c	0.06%		07/07/21	45,000,000	45,000,000
KENTON CNTY AIRPORT BOARD
SPECIAL FACILITIES RB (FLIGHTSAFETY) SERIES 2001A	c	0.07%		07/07/21	4,400,000	4,400,000
LABCON NORTH AMERICA
TAXABLE BONDS SERIES 2010 (LOC: BANK OF THE WEST)	c	0.18%		07/07/21	1,035,000	1,035,000

₁₄

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
MEMPHIS HEALTH, EDUCATIONAL & HOUSING FACILITY BOARD
M/F HOUSING RB (ASHLAND LAKE II APTS) SERIES 2008A (LOC: US BANK NATIONAL ASSOCIATION)	c	0.07%		07/07/21	5,750,000	5,750,000
NASSAU HEALTH CARE CORP
TAXABLE HEALTH CARE RB SERIES 2009A (LOC: BANK OF AMERICA NA)	c	0.08%		07/07/21	845,000	845,000
NEVADA DEPT OF BUSINESS & INDUSTRY
RB (BRIGHTLINE WEST PASSENGER RAIL) SERIES 2020A (ESCROW)	c,d	0.25%		02/01/22	7,500,000	7,500,000
NEW CASTLE CNTY
AIRPORT FACILITY RB (FLIGHTSAFETY) SERIES 2002	c	0.07%		07/07/21	5,185,000	5,185,000
NEW YORK STATE HFA
HOUSING RB (250 W 93RD ST) SERIES 2005A (LOC: LANDESBANK HESSEN THUERINGEN GIROZENTRALE)	c	0.06%		07/07/21	30,775,000	30,775,000
NUVEEN SHORT DURATION CREDIT OPPORTUNITIES FUND
VARIABLE RATE DEMAND PREFERRED SHARES SERIES A (LOC: BARCLAYS BANK PLC)	b,c	0.18%		07/07/21	19,000,000	19,000,000
VARIABLE RATE DEMAND PREFERRED SHARES SERIES A (LOC: SUMITOMO MITSUI BANKING CORPORATION)	b,c	0.18%		07/07/21	31,000,000	31,000,000
ORANGE CNTY HFA
M/F HOUSING RB (LAUREL OAKS APTS II) SERIES 2007H (LOC: FEDERAL HOME LOAN BANKS)	c	0.06%		07/07/21	6,990,000	6,990,000
M/F HOUSING RB (LAUREL OAKS APTS) SERIES 2007G (LOC: FEDERAL HOME LOAN BANKS)	c	0.06%		07/07/21	7,570,000	7,570,000
SAN FRANCISCO
TAXABLE M/F HOUSING RB (1601 MARIPOSA APTS) SERIES 2017B (LOC: BANK OF AMERICA NA)	c	0.07%		07/07/21	19,000,000	19,000,000
SHERIDAN REDEVELOPMENT AGENCY
TAX INCREMENT REFUNDING RB (SOUTH SANTA FE DRIVE) SERIES 2011A1 (LOC: JPMORGAN CHASE BANK NA)	c	0.05%		07/07/21	22,910,000	22,910,000
SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT
SUB WATER REFUNDING RB SERIES 2021A (LIQ: BANK OF AMERICA NA)	c	0.09%		07/07/21	57,000,000	57,000,000
TENDERFOOT SEASONAL HOUSING, LLC
TAXABLE NOTES SERIES 2000B (LOC: WELLS FARGO BANK NA)	c	0.18%		07/07/21	5,885,000	5,885,000
TEXAS
GO BONDS SERIES 2005B (LIQ: STATE STREET BANK AND TRUST COMPANY)	c	0.06%		07/07/21	19,245,000	19,245,000
VETERANS BONDS SERIES 2015A (LIQ: STATE STREET BANK AND TRUST COMPANY)	c	0.05%		07/07/21	3,435,000	3,435,000
VETERANS HOUSING ASSISTANCE PROGRAM FUND II SERIES 2001C2 (LIQ: STATE STREET BANK AND TRUST COMPANY)	c	0.06%		07/07/21	22,585,000	22,585,000
VETERANS HOUSING ASSISTANCE PROGRAM SERIES 2005A (LIQ: STATE STREET BANK AND TRUST COMPANY)	c	0.06%		07/07/21	4,875,000	4,875,000
VETERANS HOUSING ASSISTANCE PROGRAM SERIES 2008A (LIQ: STATE STREET BANK AND TRUST COMPANY)	c	0.06%		07/07/21	3,060,000	3,060,000
UTAH WATER FINANCE AGENCY
RB SERIES 2008B-1 (LIQ: JPMORGAN CHASE BANK NA)	c	0.06%		07/07/21	9,450,000	9,450,000

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
VOLUSIA CNTY HFA
M/F HOUSING RB (CAPE MORRIS COVE APTS) SERIES 2007A (LOC: JPMORGAN CHASE BANK NA)	c	0.07%		07/07/21	6,140,000	6,140,000
YAVAPAI CNTY IDA
TAXABLE RB (DRAKE CEMENT) SERIES 2015 (LOC: BANK OF NOVA SCOTIA)	c	0.25%		07/07/21	21,375,000	21,375,000
						591,550,000
Financial Company Commercial Paper 3.0%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD
(SOFR + 0.10%)	b	0.15%	07/01/21	11/29/21	290,000,000	290,000,000
BANK OF NOVA SCOTIA
(SOFR + 0.15%)	b	0.20%	07/01/21	02/22/22	500,000,000	500,000,000
(SOFR + 0.18%)	b	0.23%	07/01/21	05/23/22	142,000,000	142,000,000
JP MORGAN SECURITIES LLC
(SOFR + 0.14%)		0.19%	07/01/21	07/12/21	200,000,000	200,000,000
ROYAL BANK OF CANADA
(3 mo. USD-LIBOR + 0.01%)	b	0.21%	07/06/21	01/04/22	359,000,000	359,000,000
(3 mo. USD-LIBOR + 0.02%)	b	0.21%	07/06/21	01/04/22	100,000,000	100,000,000
(3 mo. USD-LIBOR + 0.02%)	b	0.21%	07/06/21	01/05/22	100,000,000	100,000,000
TORONTO-DOMINION BANK
(EFFR + 0.12%)	b	0.22%	07/01/21	11/23/21	250,000,000	250,000,000
(EFFR + 0.12%)	b	0.22%	07/01/21	12/01/21	157,000,000	157,000,000
(3 mo. USD-LIBOR + 0.03%)	b	0.15%	09/16/21	12/16/21	327,000,000	327,000,000
						2,425,000,000
Certificates of Deposit 5.3%
BANK OF MONTREAL (CHICAGO BRANCH)
(3 mo. USD-LIBOR + 0.01%)		0.15%		09/23/21	177,000,000	177,000,000
(3 mo. USD-LIBOR + 0.00%)		0.20%	07/06/21	10/05/21	276,000,000	276,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)
(SOFR + 0.15%)		0.20%	07/01/21	02/24/22	230,000,000	230,000,000
BARCLAYS BANK PLC (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.03%)		0.16%		09/24/21	334,000,000	334,000,000
(3 mo. USD-LIBOR + 0.03%)		0.18%		09/30/21	196,000,000	196,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		0.20%	07/15/21	10/15/21	164,000,000	164,000,000
(3 mo. USD-LIBOR + 0.00%)		0.15%	09/01/21	12/01/21	175,000,000	175,000,000
(3 mo. USD-LIBOR + 0.01%)		0.16%	09/27/21	12/27/21	100,000,000	100,000,000
COOPERATIEVE RABOBANK UA (LONDON BRANCH)
(3 mo. USD-LIBOR + 0.01%)		0.21%	07/07/21	10/07/21	300,000,000	300,000,000
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.01%)		0.16%	09/30/21	12/31/21	95,000,000	95,000,000
MITSUBISHI UFJ TRUST AND BANKING CORP (NEW YORK BRANCH)
(SOFR + 0.16%)		0.21%	07/01/21	08/23/21	100,000,000	100,000,000

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
OVERSEA CHINESE BANKING CORP LTD (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.04%)		0.15%	09/16/21	12/16/21	280,000,000	280,000,000
(SOFR + 0.15%)		0.20%	07/01/21	02/17/22	245,000,000	245,000,000
(3 mo. USD-LIBOR + 0.03%)		0.21%	07/21/21	04/21/22	150,000,000	150,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.01%)		0.20%	07/06/21	01/06/22	98,000,000	98,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)
(3 mo. USD-LIBOR + 0.00%)		0.18%	08/03/21	11/03/21	160,000,000	160,000,000
(3 mo. USD-LIBOR + 0.00%)		0.15%	08/23/21	11/23/21	165,000,000	165,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)
(3 mo. BSBY + 0.05%)		0.14%	09/09/21	12/09/21	39,000,000	39,000,000
(EFFR + 0.15%)		0.25%	07/01/21	05/18/22	400,000,000	400,000,000
(SOFR + 0.18%)		0.23%	07/01/21	05/23/22	173,000,000	173,000,000
(SOFR + 0.17%)		0.22%	07/01/21	05/25/22	397,000,000	397,000,000
						4,254,000,000
Other Instrument 0.3%
BANK OF AMERICA NA
(SOFR + 0.16%)		0.21%	07/01/21	07/08/22	193,000,000	193,000,000
Non-Financial Company Commercial Paper 0.2%
TOYOTA MOTOR CREDIT CORP
(3 mo. USD-LIBOR + 0.02%)		0.21%	07/19/21	01/13/22	180,000,000	180,000,000
Asset-Backed Commercial Paper 0.3%
BEDFORD ROW FUNDING CORP
(EFFR + 0.13%)	a,b	0.23%	07/01/21	08/02/21	98,000,000	98,000,000
(EFFR + 0.13%)	a,b	0.23%	07/01/21	09/30/21	150,000,000	150,000,000
						248,000,000
Total Variable-Rate Obligations
(Cost $7,891,550,000)						7,891,550,000
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 28.7% of net assets
U.S. Government Agency Repurchase Agreements* 10.4%
BANK OF MONTREAL
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $103,000,144, 1.50% - 3.00%, due 05/01/36 - 07/01/51)		0.05%		07/01/21	100,000,139	100,000,000
BOFA SECURITIES INC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $2,224,800,000, 2.00% - 4.00%, due 06/01/50 - 06/01/51)		0.05%		07/01/21	2,160,003,000	2,160,000,000

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $486,160,743, 2.00% - 2.50%, due 01/20/51 - 05/20/51)		0.06%		07/01/21	472,000,787	472,000,000
GOLDMAN SACHS & CO LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $231,540,249, 1.50% - 7.50%, due 11/30/24 - 03/01/51)		0.05%		07/01/21	227,000,315	227,000,000
JP MORGAN SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $880,951,261, 0.00% - 8.50%, due 07/15/21 - 06/20/51)		0.05%		07/01/21	857,001,190	857,000,000
MIZUHO SECURITIES USA LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $103,000,001, 1.00% - 5.50%, due 07/20/50 - 06/20/51)		0.06%		07/01/21	100,000,167	100,000,000
RBC DOMINION SECURITIES INC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $391,033,208, 0.79% - 6.00%, due 08/01/24 - 06/20/51)		0.05%		07/01/21	380,000,528	380,000,000
ROYAL BANK OF CANADA
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $3,920,885,492, 0.13% - 4.50%, due 07/31/21 - 06/20/50)		0.05%		07/01/21	3,844,005,339	3,844,000,000
WELLS FARGO SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $138,320,231, 2.00%, due 07/01/50)		0.06%		07/01/21	133,000,222	133,000,000
						8,273,000,000
U.S. Treasury Repurchase Agreements 12.5%
BARCLAYS BANK PLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $27,882,301, 3.00%, due 11/15/44)		0.05%		07/01/21	27,335,507	27,335,469
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $802,741,125, 0.13% - 2.63%, due 07/31/22 - 05/15/30)		0.05%		07/01/21	787,001,093	787,000,000
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $7,524,010,477, 1.50% - 3.00%, due 08/15/22 - 05/15/29)		0.05%		07/01/21	7,524,010,450	7,524,000,000

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
FICC - BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $1,489,200,084, 0.13% - 3.88%, due 09/15/21 - 04/15/32)		0.06%		07/01/21	1,460,002,433	1,460,000,000
JP MORGAN SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $204,000,076, 0.63% - 2.25%, due 04/15/22 - 01/15/24)		0.05%		07/01/21	200,000,278	200,000,000
						9,998,335,469
Other Repurchase Agreements** 5.8%
BMO CAPITAL MARKETS CORP
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $104,722,473, 0.33% - 7.25%, due 01/31/22 - 06/15/56)		0.17%		07/01/21	100,000,472	100,000,000
BNP PARIBAS SA
Issued 06/29/21, repurchase date 07/06/21 (Collateralized by U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $647,980,299, 0.22% - 12.34%, due 05/18/22 - 11/25/59)		0.17%		07/06/21	564,018,643	564,000,000
Issued 06/03/21, repurchase date 09/01/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $428,242,376, 1.32% - 12.00%, due 11/15/21 - 12/31/99)		0.32%		08/04/21	373,205,564	373,000,000
Issued 05/21/21, repurchase date 08/19/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $277,371,720, 0.00% - 9.43%, due 10/25/29 - 01/28/70)		0.32%		08/04/21	241,160,667	241,000,000
BOFA SECURITIES INC
Issued 06/11/21, repurchase date 09/09/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $497,950,001, 0.63% - 11.34%, due 04/25/24 - 05/25/60)		0.43%		08/04/21	433,279,285	433,000,000
Issued 06/24/21, repurchase date 09/22/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $151,200,634, 2.90% - 7.63%, due 12/08/21 - 12/31/99)		0.24%		08/04/21	144,039,360	144,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/24/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities, U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $540,292,015, 0.00% - 10.25%, due 06/12/22 - 04/15/81)		0.14%		07/01/21	513,013,965	513,000,000

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/29/21, repurchase date 07/06/21 (Collateralized by U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $102,631,771, 0.00% - 9.00%, due 04/19/22 - 03/25/65)		0.14%		07/06/21	96,002,613	96,000,000
Issued 06/30/21, repurchase date 07/07/21 (Collateralized by U.S. Treasury Securities, U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $143,990,264, 0.13% - 9.00%, due 07/08/21 - 12/31/99)		0.14%		07/07/21	135,003,675	135,000,000
CREDIT SUISSE SECURITIES (USA) LLC
Issued 12/30/20, repurchase date 07/06/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $345,929,488, 0.00% - 19.05%, due 12/20/21 - 05/25/66)		0.53%		07/06/21	300,830,333	300,000,000
JP MORGAN SECURITIES LLC
Issued 04/13/21, repurchase date 10/13/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $581,366,565, 0.43% - 12.25%, due 01/15/22 - 12/31/99)		0.49%		09/28/21	506,154,767	505,000,000
Issued 04/21/21, repurchase date 10/21/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $374,106,101, 0.00% - 13.13%, due 11/10/21 - 12/31/99)		0.49%		09/28/21	325,707,778	325,000,000
RBC CAPITAL MARKETS LLC
Issued 06/29/21, repurchase date 07/06/21 (Collateralized by U.S. Treasury Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $101,203,348, 0.13% - 10.20%, due 09/22/21 - 01/15/87)		0.17%		07/06/21	96,003,173	96,000,000
Issued 06/25/21, repurchase date 09/23/21 (Collateralized by U.S. Treasury Securities and common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $101,021,858, 0.25% - 7.60%, due 07/08/21 - 09/01/19)		0.20%		08/04/21	96,021,333	96,000,000
WELLS FARGO SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $100,800,505, 2.35% - 4.60%, due 01/30/22 - 02/06/24)		0.18%		07/01/21	96,000,480	96,000,000
Issued 06/29/21, repurchase date 07/06/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $166,757,458, 0.14% - 10.88%, due 03/01/22 - 06/04/81)		0.23%		07/06/21	145,006,485	145,000,000

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/11/21, repurchase date 12/07/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $178,755,460, 1.85% - 5.98%, due 12/12/30 - 09/25/59)		0.57%		10/04/21	155,282,229	155,000,000
Issued 04/23/21, repurchase date 10/20/21 (Collateralized by common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations valued at $344,933,128, 0.00% - 8.25%, due 10/20/21 - 09/27/60)		0.63%		10/04/21	299,858,130	299,000,000
						4,616,000,000
Total Repurchase Agreements
(Cost $22,887,335,469)						22,887,335,469

*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
**	Collateralized via common stocks, ETFs, corporate bonds, ABS, or non-agency collateralized mortgage obligations or less frequently by higher rated U.S. Government Agency Securities and/ or U.S. Treasury Securities.
a	Credit-enhanced or liquidity-enhanced.
b	Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $18,548,429,867 or 23.3% of net assets.
c	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index.
d	Security or a portion of the security purchased on a delayed-delivery or when-issued basis.

ABS —	Asset-backed securities
AUTH —	Authority
BSBY —	Bloomberg Short-Term Bank Yield Index
CNTY —	County
EFFR —	Effective Federal Funds Rate is published daily by the Federal Reserve Bank of New York and is based on the interest rate financial institutions charge each other for overnight funds.
ETF —	Exchange-traded fund
FICC —	Fixed Income Clearing Corp
GO —	General obligation
HFA —	Housing finance agency/authority
IDA —	Industrial development agency/authority
LIBOR —	London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LIQ —	Liquidity agreement
LOC —	Letter of credit
M/F —	Multi-family
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
VRDN —	Variable rate demand note

At June 30, 2021, all of the fund’s investment securities were classified as Level 2. The breakdown of the fund’s investments into major categories is disclosed on the Portfolio Holdings. (See financial note 2(a) for additional information)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/21-6/30/21		1/1/20-12/31/20
Net investment income		$12,648,049	$560,130,793
Net realized gains (losses)	+	(7,289)	1,493,351
Increase in net assets from operations		12,640,760	561,624,144
Distributions to Shareholders
Investor Shares		(7,452,965)	(315,482,113)
Ultra Shares	+	(5,195,084)	(245,419,009)
Total distributions		($12,648,049)	($560,901,122)
Transactions in Fund Shares*
Shares Sold
Investor Shares		8,681,002,119	59,504,647,997
Ultra Shares	+	11,488,292,691	51,710,517,078
Total shares sold		20,169,294,810	111,215,165,075
Shares issued in connection with reorganization¹
Investor Shares	+	—	842,101,929
Total shares issued in connection with reorganization		—	842,101,929
Shares Reinvested
Investor Shares		5,577,115	267,184,204
Ultra Shares	+	3,875,481	208,224,282
Total shares reinvested		9,452,596	475,408,486
Shares Redeemed
Investor Shares		(18,312,226,623)	(79,166,878,998)
Ultra Shares	+	(16,429,188,049)	(61,533,811,535)
Total shares redeemed		(34,741,414,672)	(140,700,690,533)
Net transactions in fund shares		(14,562,667,266)	(28,168,015,043)
Net Assets
Beginning of period		94,301,269,675	122,468,561,696
Total decrease	+	(14,562,674,555)	(28,167,292,021)
End of period		$79,738,595,120	$94,301,269,675

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Effective February 24, 2020, all the assets and liabilities of the Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund totaling a net value of $842,178,185 were transferred to the Schwab Value Advantage Money Fund. (See financial note 8)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Financial Notes, unaudited

1. Business Structure of the Fund:

Schwab Value Advantage Money Fund is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the funds in the trust as of the end of the period, including the fund discussed in this report, which is highlighted:

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Retirement Government Money Fund
Schwab U.S. Treasury Money Fund	Schwab Municipal Money Fund
Schwab Treasury Obligations Money Fund	Schwab AMT Tax-Free Money Fund
Schwab Value Advantage Money Fund	Schwab California Municipal Money Fund
Schwab Variable Share Price Money Fund	Schwab New York Municipal Money Fund

Schwab Value Advantage Money Fund offers two share classes: Investor Shares and Ultra Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

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

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by the fund’s 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 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.

Securities in the fund are valued at amortized cost (which approximates fair value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate fair value, securities may be fair valued as determined in accordance with procedures adopted by the Board. 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.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the 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 management judgment will be required to estimate fair value.

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (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.

• 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. Securities held by stable NAV money funds operating under Rule 2a-7 of the 1940 Act are valued at amortized cost which approximates current fair value and are considered to be valued using Level 2 inputs.

• 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.

As disclosed in the Portfolio Holdings, as of June 30, 2021, all of the fund’s investments were classified as Level 2.

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

Repurchase Agreements: In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The fund mitigates this risk by ensuring that a fund’s repurchase agreements are collateralized by cash and/or U.S. government securities, fixed income securities, equity securities or other types of securities. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and U.S. government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade. All collateral is held by the fund’s custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its fair value is at least equal to the maturity amount under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2021, the fund had investments in repurchase agreements with a gross value of $22,887,335,469 as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities. The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Cash Investments: The Fund may invest a portion of its assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the Fund.

Delayed-Delivery Transactions: The fund may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The fund will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to the fund until the security is delivered. The fund will earmark or segregate appropriate liquid assets to cover its delayed-delivery purchase obligations, if any.

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

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

Interest income is recorded as it accrues. If the fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).

(e) Expenses:

Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.

The fund offers multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The fund declares distributions from net investment income, if any, every day it is open for business. These distributions, which are substantially equal to the fund’s net investment income for that day, are paid out to shareholders once a month. The fund makes distributions from net realized capital gains, if any, once a year.

(g) Accounting Estimates:

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

(h) Federal Income Taxes:

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

(i) Indemnification:

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

(j) Recent Accounting Standards:

In March 2020, the FASB issued Accounting Standards Update “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)” (ASU 2020-04), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered based reference rates at the end of 2021. The temporary relief provided is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. At this time, management believes the adoption of ASU 2020-04 will not have a material impact to the financial statements.

3. Risk Factors:

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Governmental and quasi-governmental authorities and regulators throughout the world have in the past often responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes which could have an unexpected impact on financial markets and the fund’s investments. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.

Investment Risk. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Retail Money Market Fund Risk. The fund is a “retail money market fund,” as such term is defined or interpreted under the rules governing money market funds. A “retail money market fund” is a money market fund that has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons. The fund may involuntarily redeem any investor who is not a natural person. The fund will provide advance notice of its intent to make any such involuntary redemption. Neither the fund nor the investment adviser will be responsible for any loss or tax liability in an investor’s account resulting from such involuntary redemption. As a “retail money market fund,” the fund is permitted to value its securities using the amortized cost method to seek to maintain a stable $1.00 share price. However, the fund may be subject to liquidity fees and/or redemption gates on fund redemptions if the fund’s liquidity falls below required minimums because of market conditions or other factors.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, the fund’s yield will change over time. During periods when interest rates are low or there are negative interest rates, the fund’s yield (and total return) also could be low or even negative. In addition, the fund may be unable to pay expenses out of fund assets or maintain a stable $1.00 share price. Also, a change in a central bank’s monetary policy or economic conditions may result in a change in interest rates, which could have sudden and unpredictable effects on the markets. A sudden or unpredictable rise or decline in interest rates may cause volatility. Volatility in the market may decrease liquidity in the money market securities markets, making it more difficult for the fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of the fund’s money market securities holdings.

Stable Net Asset Value Risk. If the fund or another money market fund fails to maintain a stable net asset value (or such perception exists in the market place), the fund could experience increased redemptions, which may adversely impact the fund’s share price. The fund is permitted, among other things, to reduce or withhold any income and/or gains generated from its portfolio to maintain a stable $1.00 share price.

Repurchase Agreements Risk. When the fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when the fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and government securities, such as debt securities, equity securities and high-yield securities that are rated below investment grade (also referred to as junk bonds) (Alternative Collateral). High-yield securities that are used as Alternative Collateral are subject to greater levels of credit and liquidity risk, and are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Alternative Collateral may be subject to greater price volatility and may be more volatile or less liquid than other types of collateral, increasing the risk that the fund will be unable to recover fully in the event of a counterparty’s default.

Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in credit quality, the issuer, guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations. Even though the fund’s investments in repurchase agreements are collateralized at all times, there is some risk to the fund if the other party should default on its obligations and the fund is delayed or prevented from recovering or disposing of the collateral. The credit quality of the fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause the fund’s share price or yield to fall.

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Certain U.S. government securities that the fund invests in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) maintain only lines of credit with the U.S. Treasury. The Federal Home Loan Banks maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation, are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities the fund owns do not extend to the shares of the fund itself.

Credit and Liquidity Enhancements Risk. The fund may invest in securities with credit or liquidity enhancements provided by a bank or other financial institution, and the existence and nature of such enhancements may be a significant factor in the investment adviser’s decision-making process. Generally, these enhancements are employed by the issuers of the securities to reduce credit risk and provide enhanced or back-up liquidity for a purchaser, such as the fund. Adverse developments affecting these banks and financial institutions could therefore have a negative effect on the value of the fund’s holdings. For example, a rating agency downgrade of a credit or liquidity enhancement provider may adversely affect the value of securities held by the fund. Any decline in the value of the securities held by the fund could cause the fund’s share price or yield to fall. To the extent that a portion of the fund’s underlying investments are enhanced by the same bank or financial institution, these risks may be increased.

Foreign Investment Risk. Although the fund may invest only in U.S. dollar-denominated securities, the fund’s investments in securities of foreign issuers or securities with credit or liquidity enhancements provided by foreign entities may involve certain risks that are greater than those associated with investments in securities of U.S. issuers or securities with credit or liquidity enhancements provided by U.S. entities. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of the fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. The fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect the fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, the fund’s yield at times could lag the yields of other money market funds.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase, sell or value, especially during stressed market conditions. The market for certain investments may become illiquid due to specific adverse changes in the conditions of a particular issuer or under adverse market or economic conditions independent of the issuer. In addition, limited dealer inventories of certain securities could potentially lead to decreased liquidity. In such cases, the fund, due to limitations on investments in illiquid securities and the difficulty in readily purchasing and selling such securities at favorable times or prices, may decline in value, experience lower returns and/or be unable to achieve its desired level of exposure to a certain issuer or sector. Further, transactions in illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Redemption Risk. The fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in the fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the fund, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Fund Risk. The fund is not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions:

Investment Adviser

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between CSIM and the trust.

For its advisory and administrative services to the fund, CSIM is entitled to receive an annual fee, payable monthly, equal to 0.19% of the fund’s average daily net assets.

Shareholder Servicing

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of CSIM (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund.

Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the fund (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the fund), and the fund will pay no more than the amounts listed in the table below, calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers.

Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.

	Shareholder Servicing Fee
Investor Shares	0.15%
Ultra Shares	n/a

Contractual Expense Limitations

CSIM and its affiliates have made an additional agreement with the fund, for so long as CSIM serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation), as follows:

Investor Shares	0.34%
Ultra Shares	0.19%

During the period ended June 30, 2021, the fund waived a total of $70,128,662 in expenses: $3,776,363 was waived in accordance with the contractual expense limitation, and $66,352,299 was waived voluntarily.

Voluntary Yield Waiver/Reimbursement

CSIM and its affiliates may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for the fund.

Interfund Transactions

The fund may engage in transactions with certain other funds in the Fund Complex (for definition refer to Trustees and Officers section) in accordance with procedures adopted by the Board under Rule 17a-7 of the 1940 Act. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended June 30, 2021, the fund’s total aggregate security transactions with other funds in the Fund Complex was $92,771,434 and includes realized gains (losses) of $0.

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the SEC, the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.

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Financial Notes, unaudited (continued)

5. Board of Trustees:

The Board may include people who are officers and/or directors of CSIM or its affiliates. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings from either line of credit during the period.

The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of June 30, 2021, the tax basis cost of the fund’s investments was $78,208,777,553.

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2020, the fund had no capital loss carryforwards available to offset future net capital gains.

The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of June 30, 2021. The tax-basis components of distributions paid during the fiscal year ended December 31, 2020, were as follows:

	Schwab Value Advantage Money Fund
Ordinary income	$560,901,122

As of December 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended December 31, 2020, the fund did not incur any interest or penalties.

8. Reorganization:

Under a plan of reorganization adopted by the trust, all of the assets and liabilities of the Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund were transferred to the Schwab Value Advantage Money Fund. The reorganization, which qualified as a tax-free exchange for federal income tax purposes, was completed at the open of business on February 24, 2020. The reorganization is intended to achieve economies of scale on the three funds, which have substantially the same investment objectives. The following is a summary of shares outstanding, net assets, and net asset value per share issued immediately before and after the reorganization.

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Financial Notes, unaudited (continued)

8. Reorganization (continued):

	Before Reorganization			After Reorganization
	Schwab Value Advantage Money Fund	Schwab Retirement Advantage Money Fund	Schwab Investor Money Fund	Schwab Value Advantage Money Fund
Shares:
Investor Shares	75,525,909,298	198,958,986	643,142,943	76,368,011,227
Ultra Shares	50,310,908,264	—	—	50,310,908,264
Net Assets:
Investor Shares	$75,527,152,916	$198,952,517	$643,225,668	$76,369,331,101
Ultra Shares	$50,311,700,098	—	—	$50,311,700,098
Net Asset Value:
Investor Shares	$1.00	$1.00	$1.00	$1.00
Ultra Shares	$1.00	—	—	$1.00
Net unrealized appreciation (depreciation)	—	—	—	—
Value of investments	$125,835,721,325	$198,802,512	$642,855,708	$126,677,379,545
Cost of investments	$125,835,721,325	$198,802,512	$642,855,708	$126,677,379,545

Since the net asset values of each of the Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund are immaterial to the net assets of the Schwab Value Advantage Money Fund, pro forma financial statements showing the effect of the reorganization are not presented. The Schwab Value Advantage Money Fund acquired capital loss carryovers aggregating $4,189 from Schwab Retirement Advantage Money Fund and Schwab Investor Money Fund.

9. Subsequent Events:

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

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Investment Advisory Agreement Approval

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

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including Schwab Value Advantage Money Fund (the Fund), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to CSIM seeking certain relevant information. The responses by CSIM are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to the Fund’s operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of CSIM and meet in executive session outside the presence of Fund management.

The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Fund at meetings held on May 12, 2021 and June 8, 2021, and approved the renewal of the Agreement with respect to the Fund for an additional

one-year term at the meeting on June 8, 2021 called for the purpose of voting on such approval.¹

The Board’s approval of the continuance of the Agreement with respect to the Fund was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to the Fund under the Agreement, including the resources of CSIM and its affiliates dedicated to the Fund;
2.	the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to CSIM and its affiliates; and
5.	the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by CSIM to the Fund and the resources of CSIM and its affiliates dedicated to the Fund. In this regard, the Trustees evaluated, among other things, CSIM’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by CSIM relating to services and support provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Fund and its shareholders. The Trustees considered CSIM’s effective implementation of its business continuity plan in response to the COVID-19 pandemic and government-mandated restrictions during the prior year. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit Fund shareholders who are brokerage clients of Schwab. The Trustees also considered Schwab’s reputation as a full service brokerage firm and its

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overall financial condition, including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Fund and the resources of CSIM and its affiliates dedicated to the Fund supported renewal of the Agreement with respect to the Fund.

Fund Performance. The Board considered the Fund’s performance in determining whether to renew the Agreement with respect to the Fund. Specifically, the Trustees considered the Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of portfolio yield and market trends, as well as in consideration of the Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of the Fund, the Trustees considered the risk profile for the Fund and the Fund’s operation as a money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Fund supported renewal of the Agreement with respect to the Fund.

Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and the Fund’s net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of the Fund and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of CSIM’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Fund from exceeding a specified cap, as well as historically using voluntary waivers (which CSIM will not recoup) to maintain a certain yield. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Fund.

Profitability. The Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across the Fund and other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Fund, such as whether, by virtue of its management of the Fund, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Fund by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM with respect to the Fund is reasonable and supported renewal of the Agreement with respect to the Fund.

Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by CSIM in CSIM’s infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; and (ii) graduated investment advisory fee schedules, fee waivers, or expense caps by CSIM and its affiliates for those funds in the Schwab fund complex with such features. The Trustees acknowledged that CSIM has shared any economies of scale with the Fund by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund continue to increase as a result of regulatory or other developments. The Trustees considered that CSIM and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of such funds at subsidized expense levels. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefits from economies of scale.

In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not

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Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, which includes the fund covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 103 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	103	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	103	Director (2005 – 2020), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	103	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	103	Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare).	103	None

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	103	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	103	None
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services).	103	None

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	103	Director (2008 – present), The Charles Schwab Corporation

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Interested Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation.	103	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
William P. McMahon, Jr. 1972 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc.

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Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

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Glossary

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

agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.

asset-backed commercial paper A short-term investment that is typically issued by a bank or other financial institution. The notes represent an interest in financial assets such as trade receivables, credit card receivables, auto receivables, etc. and are generally used for the short-term financing needs of companies. Asset-backed commercial paper is subject to credit risk.

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

collateralized mortgage obligation (CMO) A type of security that is collateralized by pools of mortgages backed by government agencies or private issuers (non-agency). The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests, known as tranches. Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates.

commercial paper Promissory notes issued by banks, corporations and other entities to finance short-term credit needs. These securities generally are structured on a discounted basis but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk.

corporate note An unsecured debt security issued by a corporation that is subject to the credit risk of the issuer.

credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly regulate the credit quality of the securities a money market fund can buy.

credit ratings Debt issuers, including corporations, states and municipalities, may arrange with a recognized independent rating organization, such as Standard & Poor’s, Fitch, Inc., Moody’s Investor Service, and DBRS, to rate their creditworthiness and/or the creditworthiness of their debt issues. For example, an issuer may obtain a long-term rating within the investment grade rating category, which is, from high to low, AAA, AA, A and BBB for Standard & Poor’s, Fitch, and DBRS; and Aaa, Aa, A and Baa for Moody’s.

credit risk The risk that a debt issuer may be unable to pay interest or repay principal to its debt holders.

dollar-weighted average maturity See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all interest income is reinvested in additional shares of the fund.

exchange-traded fund (ETF) An investment fund that tracks an index, a commodity or a basket of assets, and trades on an exchange.

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

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

illiquid securities Securities are generally considered illiquid if they cannot be disposed of promptly (typically within seven days) and in the ordinary course of business at approximately the amount at which a fund has valued the instruments.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

liquidity-enhanced security The security’s structure includes a liquidity arrangement that requires an entity other than the issuer (such as a large financial institution) to provide funds to pay a tender under most circumstances. Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities for repayment within a specified time period (usually one day or one week) at any time prior to their final maturity.

maturity The date a debt security is scheduled to be “retired” and its principal amount repaid. The Maturity of an investment will generally reflect the security’s final maturity date unless the security’s structure includes a maturity-shortening provision such as an interest rate reset, demand feature or put feature (the “Effective Maturity Date”). For those securities with a maturity-shortening provision, including variable-rate demand securities, the Maturity is determined by using the Effective Maturity Date, as permitted by Rule 2a-7.

municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.

net asset value per share (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding. Certain money funds seek to maintain a steady NAV of $1.00.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

repurchase agreement (also known as a “repo”) The sale of a security combined with a simultaneous agreement to repurchase it at a predetermined date and price.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

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

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Charles Schwab Investment Management

With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds^®.

Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.

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

Schwab Funds

Equity Funds

Schwab Core Equity Fund

Schwab Dividend Equity Fund

Schwab Large-Cap Growth Fund

Schwab Small-Cap Equity Fund

Schwab Hedged Equity Fund

Schwab Health Care Fund

Schwab International Core Equity Fund

Schwab Fundamental US Large Company Index Fund

Schwab Fundamental US Small Company Index Fund

Schwab Fundamental International Large Company Index Fund

Schwab Fundamental International Small Company Index Fund

Schwab Fundamental Emerging Markets Large Company Index Fund

Schwab Fundamental Global Real Estate Index Fund

Schwab Global Real Estate Fund

Schwab S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab U.S. Large-Cap Growth Index Fund

Schwab U.S. Large-Cap Value Index Fund

Schwab U.S. Mid-Cap Index Fund

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund

Schwab MarketTrack Portfolios^®

Schwab Target Funds

Schwab Target Index Funds

Schwab Monthly Income Funds

Bond Funds

Schwab Treasury Inflation Protected Securities Index Fund

Schwab U.S. Aggregate Bond Index Fund

Schwab Short-Term Bond Index Fund

Schwab Tax-Free Bond Fund¹

Schwab California Tax-Free Bond Fund¹

Schwab Opportunistic Municipal Bond Fund

Schwab Money Funds²

Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Funds

Schwab Funds

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State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.

You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

Table of Contents

Schwab Government Money Funds

Fund Management

Linda Klingman, Managing Director and Head of Money Market Strategies for CSIM, leads the portfolio management teams for Schwab’s taxable and tax-exempt money market funds, and has overall responsibility for all aspects of the management of the funds. Prior to joining CSIM in 1990, she was a senior money market trader with AIM Management, Inc. for five years. She has managed money market funds since 1988.

Lynn Paschen, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2011, Ms. Paschen held a number of positions at American Century Investments. She was most recently a portfolio manager and from 2000 to 2003, worked as a fixed-income trader. She has managed money market funds since 2003.

Nicole Perret-Gentil, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2016, Ms. Perret-Gentil worked at Freddie Mac for 15 years, most recently as a senior portfolio manager where she managed and executed trades for a fixed-income strategy. Prior to that role, she served as a portfolio manager performing fixed-income analysis, a senior research analyst for investor and dealer relations, a senior securities operations analyst in loan and securities operations, and a lead mortgage securities operations specialist. She also worked at Merrill Lynch for a year as a senior specialist in fixed-income global banking and investments.

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Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Fund

The Schwab Government Money Fund (the fund) seeks the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in U.S. government securities such as U.S. Treasury bills and notes, other obligations that are issued by the U.S. government, its agencies or instrumentalities, repurchase agreements that are collateralized fully by cash and/or U.S. government securities, and obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies or instrumentalities. The fund will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. government securities including repurchase agreements that are collateralized fully by U.S. government securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Although the U.S. economy has demonstrated resilience given the dramatic impact of the COVID-19 pandemic, the federal funds target range remained at 0.00% to 0.25% through the reporting period. The U.S. Federal Reserve (Fed) reiterated its intention to continue its support of the economy, affirmed that it would continue its bond-buying program, which aims to keep interest rates low and inject cash into the economy to encourage lending and investment, and acknowledged that it was keeping an eye on rising inflation.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved, and on continuing a rigorous credit review process and ongoing monitoring for all issuers and regions in which the fund invests. Low yields and a flat yield curve offered little relative value to extend maturities. The fund’s weighted average maturity (WAM) decreased over the reporting period, beginning the period at 46 days and ending it at 39 days.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

39 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Fund

Performance and Fund Facts as of June 30, 2021

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab Government Money Fund
	Sweep Shares	Investor Shares	Ultra Shares
Ticker Symbol	SWGXX	SNVXX	SGUXX
Minimum Initial Investment²	^*	None	$1,000,000
Seven-Day Yield (with waivers)³	0.01%	0.01%	0.01%
Seven-Day Yield (without waivers)³	-0.38%	-0.28%	-0.13%
Seven-Day Effective Yield (with waivers)³	0.01%	0.01%	0.01%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

^*	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Ultra Shares commenced operations on September 24, 2020.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Government Money Funds | Semiannual Report

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Schwab U.S. Treasury Money Fund

The Schwab U.S. Treasury Money Fund (the fund) seeks the highest current income that is consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government. The fund will invest at least 99.5% of its total assets in cash and/or government securities (including bills and notes); under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. Treasury securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Although the U.S. economy has demonstrated resilience given the dramatic impact of the COVID-19 pandemic, the federal funds target range remained at 0.00% to 0.25% through the reporting period. The U.S. Federal Reserve (Fed) reiterated its intention to continue its support of the economy, affirmed that it would continue its bond-buying program, which aims to keep interest rates low and inject cash into the economy to encourage lending and investment, and acknowledged that it was keeping an eye on rising inflation.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved, and on continuing a rigorous credit review process and ongoing monitoring for all issuers and regions in which the fund invests. Low yields and a flat yield curve offered little relative value to extend maturities. The fund’s weighted average maturity (WAM) decreased over the reporting period, beginning the period at 54 days and ending it at 45 days.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments^3,4

Statistics

Weighted Average Maturity²

45 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The fund may elect to invest up to 20% of its net assets in (i) obligations that are issued by the U.S. government, its agencies or instrumentalities, including obligations that are not fully guaranteed by the U.S. Treasury and (ii) obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies or instrumentalities. Please refer to the fund prospectus for further details on investment objectives, risks, charges, tax implications and expenses.
⁴	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

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Schwab U.S. Treasury Money Fund

Performance and Fund Facts as of June 30, 2021

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab U.S. Treasury Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SNSXX	SUTXX
Minimum Initial Investment²	None	$1,000,000
Seven-Day Yield (with waivers)³	0.01%	0.01%
Seven-Day Yield (without waivers)³	-0.31%	-0.16%
Seven-Day Effective Yield (with waivers)³	0.01%	0.01%

¹	Ultra Shares commenced operations on September 24, 2020.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Government Money Funds | Semiannual Report

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Schwab Treasury Obligations Money Fund

The Schwab Treasury Obligations Money Fund (the fund) seeks current income consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government and repurchase agreements backed by such investments. The fund will invest at least 99.5% of its total assets in cash, government securities and/or repurchase agreements that are collateralized fully by cash and/or government securities; under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. Treasury obligations or repurchase agreements backed by such obligations (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Although the U.S. economy has demonstrated resilience given the dramatic impact of the COVID-19 pandemic, the federal funds target range remained at 0.00% to 0.25% through the reporting period. The U.S. Federal Reserve (Fed) reiterated its intention to continue its support of the economy, affirmed that it would continue its bond-buying program, which aims to keep interest rates low and inject cash into the economy to encourage lending and investment, and acknowledged that it was keeping an eye on rising inflation.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved, and on continuing a rigorous credit review process and ongoing monitoring for all issuers and regions in which the fund invests. Low yields and a flat yield curve offered little relative value to extend maturities. The fund’s weighted average maturity (WAM) decreased over the reporting period, beginning the period at 53 days and ending it at 40 days.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

40 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Funds | Semiannual Report

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Schwab Treasury Obligations Money Fund

Performance and Fund Facts as of June 30, 2021

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab Treasury Obligations Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SNOXX	SCOXX
Minimum Initial Investment²	None	$1,000,000
Seven-Day Yield (with waivers)³	0.01%	0.01%
Seven-Day Yield (without waivers)³	-0.29%	-0.14%
Seven-Day Effective Yield (with waivers)³	0.01%	0.01%

¹	Ultra Shares commenced operations on September 24, 2020.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Funds

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning January 1, 2021 and held through June 30, 2021.

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

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

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

	Expense Ratio (Annualized)^1,2	Beginning Account Value at 1/1/21	Ending Account Value (Net of Expenses) at 6/30/21	Expenses Paid During Period 1/1/21-6/30/21³
Schwab Government Money Fund
Sweep Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Investor Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Ultra Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Schwab U.S. Treasury Money Fund
Investor Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Ultra Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Schwab Treasury Obligations Money Fund
Investor Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30
Ultra Shares
Actual Return	0.06%	$1,000.00	$1,000.00	$0.30
Hypothetical 5% Return	0.06%	$1,000.00	$1,024.50	$0.30

¹	Based on the most recent six-month expense ratio.
²	Expense ratio (annualized) reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
³	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Government Money Funds | Semiannual Report

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Schwab Government Money Fund

Financial Statements

Financial Highlights

Sweep Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17	1/1/16– 12/31/16
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.00 ²	0.02	0.01	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	—	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.02	0.01	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.02)	(0.01)	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	(0.00) ²	—	(0.00) ²	(0.00) ²	—
Total distributions	(0.00) ²	(0.00) ²	(0.02)	(0.01)	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.00% ³^,⁴	0.23%	1.65%	1.23%	0.26%	0.01%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁵^,⁶	0.30% ⁶^,⁷	0.59%	0.62%	0.63% ⁶^,⁸	0.39% ⁶
Gross operating expenses	0.45% ⁵	0.52%	0.59%	0.62%	0.68%	0.71%
Net investment income (loss)	0.01% ⁵	0.18%	1.64%	1.12%	0.25%	0.01%
Net assets, end of period (x 1,000,000)	$20,104	$20,119	$12,450	$11,325	$25,324	$32,377

Investor Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17⁹	1/1/16– 12/31/16
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.00 ²	0.02	0.02	0.00 ²	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	—	0.00 ²	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.02	0.02	0.00 ²	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ²	(0.02)	(0.02)	(0.00) ²	(0.00) ²
Distributions from net realized gains	—	(0.00) ²	—	(0.00) ²	(0.00) ²	—
Total distributions	(0.00) ²	(0.00) ²	(0.02)	(0.02)	(0.00) ²	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.00% ³^,⁴	0.30%	1.90%	1.51%	0.50%	0.05%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁵^,⁶	0.27% ⁶^,⁷	0.35%	0.35%	0.40% ⁶^,⁸	0.33%
Gross operating expenses	0.35% ⁵	0.43%	0.47%	0.48%	0.53%	0.55%
Net investment income (loss)	0.01% ⁵	0.28%	1.84%	1.66%	0.51%	0.09%
Net assets, end of period (x 1,000,000)	$9,011	$11,980	$13,436	$7,871	$1,362	$939

*	Unaudited.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

Not annualized.

⁴

Less than 0.005%.

⁵

Annualized.

⁶

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁷

Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.

⁸

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

⁹

Effective October 3, 2017, the share class name of Purchased Shares was changed to Investor Shares.

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Schwab Government Money Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited)

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

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 45.9% of net assets
U.S. Government Agency Debt 9.4%
FEDERAL FARM CREDIT BANKS FUNDING CORP		0.01%		07/02/21	5,000,000	4,999,999
		0.09%		07/09/21	8,000,000	7,999,840
		0.13%		08/12/21	221,977,000	221,975,313
		0.13%		08/17/21	15,500,000	15,497,369
		0.10%		08/19/21	12,000,000	11,998,367
		0.10%		08/30/21	5,000,000	4,999,167
		0.10%		10/06/21	14,900,000	14,895,985
		0.07%		10/12/21	23,600,000	23,595,273
		0.11%		11/01/21	2,000,000	1,999,248
		0.12%		12/06/21	7,000,000	6,996,313
		0.08%		05/09/22	23,600,000	23,598,112
		0.06%		05/17/22	117,800,000	117,797,057
FEDERAL HOME LOAN BANKS		0.02%		07/01/21	117,900,000	117,900,000
		0.03%		07/02/21	141,500,000	141,499,882
		1.88%		07/07/21	94,000,000	94,028,525
		0.00%		07/12/21	87,500,000	87,499,893
		1.13%		07/14/21	27,370,000	27,380,822
		0.02%		07/15/21	141,500,000	141,498,899
		0.02%		07/22/21	188,600,000	188,597,800
		0.01%		07/26/21	94,200,000	94,199,673
		0.03%		08/20/21	94,000,000	93,999,946
		0.13%		08/20/21	161,400,000	161,396,317
		0.02%		08/23/21	436,400,000	436,390,362
		0.02%		09/02/21	174,600,000	174,595,417
		0.02%		09/07/21	47,100,000	47,098,666
		0.02%		09/08/21	141,000,000	140,995,946
		0.13%		09/10/21	34,270,000	34,269,544
		2.38%		09/10/21	12,900,000	12,956,200
		0.02%		09/17/21	268,800,000	268,791,264
FEDERAL HOME LOAN MORTGAGE CORP		2.38%		01/13/22	175,707,000	177,884,815
FEDERAL NATIONAL MORTGAGE ASSOCIATION		2.25%		04/12/22	23,600,000	23,999,414
						2,921,335,428

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Schwab Government Money Funds | Semiannual Report

See financial notes

Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
U.S. Treasury Debt 36.5%
UNITED STATES TREASURY		0.00%		07/01/21	391,000,000	391,000,000
		0.00%		07/08/21	72,000,000	71,999,986
		0.03%		07/08/21	50,000,000	49,999,976
		0.01%		07/08/21	189,000,000	188,999,816
		0.01%		07/13/21	437,000,000	436,999,272
		2.63%		07/15/21	310,800,000	311,098,546
		0.00%		07/20/21	105,800,000	105,799,888
		0.01%		07/20/21	1,119,000,000	1,118,997,047
		0.02%		07/20/21	70,000,000	69,999,446
		0.01%		07/22/21	391,100,000	391,097,719
		0.02%		07/22/21	122,500,000	122,498,928
		0.01%		07/27/21	1,290,000,000	1,289,995,342
		0.02%		07/27/21	120,883,000	120,881,690
		0.02%		07/29/21	551,000,000	550,991,446
		1.75%		07/31/21	375,839,000	376,343,334
		1.13%		07/31/21	150,000,000	150,132,844
		2.25%		07/31/21	57,000,000	57,100,250
		2.75%		08/15/21	146,780,000	147,257,622
		2.13%		08/15/21	54,000,000	54,133,938
		0.06%		08/19/21	140,500,000	140,489,482
		0.02%		08/24/21	150,000,000	149,994,937
		1.13%		08/31/21	417,000,000	417,702,615
		2.00%		08/31/21	71,700,000	71,923,843
		1.50%		08/31/21	237,400,000	237,959,829
		2.75%		09/15/21	139,000,000	139,763,414
		2.13%		09/30/21	154,900,000	155,682,310
		1.50%		09/30/21	57,200,000	57,396,314
		1.25%		10/31/21	570,800,000	572,996,041
		1.50%		10/31/21	616,300,000	619,171,225
		2.00%		10/31/21	117,300,000	118,044,411
		2.88%		11/15/21	147,900,000	149,437,367
		1.50%		11/30/21	101,200,000	101,786,824
		1.88%		11/30/21	224,000,000	225,670,437
		1.75%		11/30/21	44,400,000	44,709,151
		2.00%		12/31/21	60,240,000	60,818,670
		1.63%		12/31/21	37,500,000	37,791,394
		1.50%		01/31/22	377,100,000	380,199,204
		1.38%		01/31/22	59,200,000	59,652,093
		2.50%		02/15/22	151,000,000	153,289,653
		1.88%		02/28/22	393,100,000	397,802,721
		2.38%		03/15/22	342,400,000	347,950,596
		1.75%		03/31/22	325,100,000	329,123,496
		1.88%		03/31/22	133,500,000	135,302,183
		2.25%		04/15/22	146,800,000	149,311,478
		1.88%		04/30/22	23,600,000	23,956,450
						11,283,253,228
Total Fixed-Rate Obligations
(Cost $14,204,588,656)						14,204,588,656

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Variable-Rate Obligations 17.0% of net assets
U.S. Government Agency Debt 10.1%
FEDERAL FARM CREDIT BANKS FUNDING CORP
(SOFR + 0.07%)		0.12%	07/01/21	08/20/21	11,000,000	11,000,000
(SOFR + 0.21%)		0.26%	07/01/21	10/28/21	32,100,000	32,100,000
(SOFR + 0.02%)		0.07%	07/01/21	12/30/21	28,200,000	28,201,849
(SOFR + 0.08%)		0.13%	07/01/21	03/10/22	66,400,000	66,400,000
(SOFR + 0.04%)		0.09%	07/01/21	07/08/22	94,500,000	94,495,119
(SOFR + 0.09%)		0.14%	07/01/21	07/25/22	58,200,000	58,196,856
(SOFR + 0.06%)		0.11%	07/01/21	10/21/22	118,000,000	118,000,000
FEDERAL HOME LOAN BANKS
(SOFR + 0.08%)		0.13%	07/01/21	07/08/21	87,500,000	87,500,000
(SOFR + 0.05%)		0.10%	07/01/21	07/16/21	115,500,000	115,500,000
(1 mo. USD-LIBOR + 0.02%)		0.11%	07/26/21	08/25/21	376,700,000	376,753,058
(SOFR + 0.09%)		0.14%	07/01/21	09/10/21	137,700,000	137,700,000
(SOFR + 0.12%)		0.17%	07/01/21	02/28/22	119,000,000	119,000,000
FEDERAL HOME LOAN MORTGAGE CORP
(SOFR + 0.32%)		0.37%	07/01/21	09/23/21	18,400,000	18,400,000
(SOFR + 0.15%)		0.20%	07/01/21	03/04/22	150,300,000	150,296,448
(SOFR + 0.20%)		0.25%	07/01/21	03/11/22	36,800,000	36,800,000
(SOFR + 0.19%)		0.24%	07/01/21	06/02/22	187,000,000	187,000,000
(SOFR + 0.10%)		0.15%	07/01/21	08/19/22	230,900,000	230,900,000
(SOFR + 0.10%)		0.15%	07/01/21	09/09/22	131,700,000	131,700,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(SOFR + 0.10%)		0.15%	07/01/21	09/07/21	175,000,000	175,026,321
(SOFR + 0.30%)		0.35%	07/01/21	09/24/21	94,500,000	94,500,000
(SOFR + 0.34%)		0.39%	07/01/21	10/20/21	94,500,000	94,500,000
(SOFR + 0.35%)		0.40%	07/01/21	04/07/22	111,800,000	111,821,762
(SOFR + 0.39%)		0.44%	07/01/21	04/15/22	129,300,000	129,315,162
(SOFR + 0.24%)		0.29%	07/01/21	04/29/22	93,000,000	93,000,000
(SOFR + 0.20%)		0.25%	07/01/21	05/09/22	139,000,000	139,000,000
(SOFR + 0.19%)		0.24%	07/01/21	05/19/22	186,000,000	186,000,000
(SOFR + 0.19%)		0.24%	07/01/21	05/27/22	109,750,000	109,749,997
						3,132,856,572
U.S. Treasury Debt 4.6%
UNITED STATES TREASURY
(3 mo. US TBILL + 0.30%)		0.35%	07/01/21	10/31/21	136,900,000	137,011,146
(3 mo. US TBILL + 0.15%)		0.20%	07/01/21	01/31/22	349,900,000	350,052,846
(3 mo. US TBILL + 0.11%)		0.16%	07/01/21	04/30/22	395,600,000	395,788,629
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	07/31/22	233,400,000	233,395,470
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	10/31/22	100,000,000	99,993,248
(3 mo. US TBILL + 0.05%)		0.10%	07/01/21	01/31/23	198,900,000	198,958,824
						1,415,200,163

₁₄

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Variable Rate Demand Notes 2.3%
ABAG FINANCE AUTH
M/F HOUSING RB (CROSSING APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	60,070,000	60,070,000
ALABAMA HFA
M/F HOUSING RB (CHAPEL RIDGE APTS) SERIES 2005E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.13%		07/07/21	10,100,000	10,100,000
AURORA
M/F HOUSING REFUNDING RB (COVEY AT FOX VALLEY APTS) SERIES 2006 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.09%		07/07/21	10,485,000	10,485,000
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH
M/F HOUSING RB (BAY VISTA AT MEADOW PARK APTS) SERIES 2003NN-1 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	28,120,000	28,120,000
M/F HOUSING RB (CROSSINGS WEST APTS) SERIES 2009E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.06%		07/07/21	10,100,000	10,100,000
M/F HOUSING RB (DUBLIN RANCH SR APTS) SERIES 2003OO (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	27,590,000	27,590,000
M/F HOUSING RB (FAIRWAY FAMILY APTS) SERIES 2003PP (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	24,000,000	24,000,000
M/F HOUSING RB (VARENNA ASSISTED LIVING APTS) SERIES 2006F (LOC: FEDERAL HOME LOAN BANKS)	a	0.06%		07/07/21	10,685,000	10,685,000
M/F HOUSING RB (WILSHIRE COURT APTS) SERIES 2003M (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	20,190,000	20,190,000
CAPITAL AREA HOUSING FINANCE CORPORATION
M/F HOUSING RB (ENCINO POINTE APTS) SERIES 2009 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	12,945,000	12,945,000
DEKALB CNTY HOUSING AUTH
M/F HOUSING RB (HIGHLAND PLACE APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.05%		07/07/21	12,715,000	12,715,000
EDEN PRAIRIE
M/F HOUSING REFUNDING RB (PARK AT CITY WEST APTS) SERIES 2001 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.07%		07/07/21	13,605,000	13,605,000
EMERYVILLE SUCCESSOR REDEVELOPMENT AGENCY
M/F HOUSING RB (BAY ST APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	53,100,000	53,100,000
FLORIDA HOUSING FINANCE CORP
M/F MORTGAGE RB (MARINER’S CAY APTS) SERIES 2008M (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	2,160,000	2,160,000
M/F MORTGAGE REFUNDING RB (GRAND RESERVE AT LEE VISTA) SERIES 2004L (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	11,480,000	11,480,000
HARRIS CNTY HOUSING FINANCE CORP
M/F HOUSING RB (LAFAYETTE VILLAGE APTS) SERIES 2006 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	11,615,000	11,615,000

₁₅

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
HILLSBOROUGH CNTY HFA
M/F HOUSING RB (LAKE KATHY APTS) SERIES 2005 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.09%		07/07/21	17,110,000	17,110,000
JACKSONVILLE HFA
M/F HOUSING RB (HARTWOOD APTS) SERIES 2006 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.06%		07/07/21	3,000,000	3,000,000
LENAWEE CNTY ECONOMIC DEVELOPMENT CORP
REFUNDING RB (SIENA HEIGHTS UNIV) SERIES 2009 (LOC: FEDERAL HOME LOAN BANKS)	a	0.06%		07/07/21	3,890,000	3,890,000
LISLE
M/F HOUSING RB (ASHLEY OF LISLE) SERIES 1985 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.06%		07/07/21	24,900,000	24,900,000
MARIETTA HOUSING AUTH
M/F HOUSING RB (WALTON VILLAGE APTS) SERIES 2005 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.12%		07/07/21	13,200,000	13,200,000
MARYLAND COMMUNITY DEVELOPMENT ADMINISTRATION
M/F DEVELOPMENT RB (SHARP LEADENHALL APTS) SERIES 2009A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.05%		07/07/21	9,350,000	9,350,000
M/F HOUSING DEVELOPMENT RB (RESIDENCES AT ELLICOTT GARDENS) SERIES 2008C (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.05%		07/07/21	4,675,000	4,675,000
M/F HOUSING DEVELOPMENT RB (SHAKESPEARE PARK APTS) SERIES 2008B (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.05%		07/07/21	6,600,000	6,600,000
NEW YORK CITY HOUSING DEVELOPMENT CORP
M/F RENTAL HOUSING RB (RIVEREAST APTS) SERIES A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.04%		07/07/21	14,275,000	14,275,000
NEW YORK STATE HFA
HOUSING RB (CAROLINE APTS) SERIES 2008A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.04%		07/07/21	12,900,000	12,900,000
HOUSING RB (RELATED-42ND & 10TH) SERIES 2007A (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.04%		07/07/21	84,195,000	84,195,000
ORANGE CNTY HFA
M/F HOUSING RB (LANDINGS ON MILLENIA BLVD APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.07%		07/07/21	10,155,000	10,155,000
M/F HOUSING RB (LEE VISTA CLUB APTS) SERIES 2004A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.07%		07/07/21	10,260,000	10,260,000
OREGON FACILITIES AUTH
RB (QUATAMA HOUSING LP) SERIES 2005A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	6,705,000	6,705,000
PANHANDLE REGIONAL HOUSING FINANCIAL CORP
M/F HOUSING RB (JASON AVE APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	12,300,000	12,300,000
SACRAMENTO CNTY HOUSING AUTH
M/F HOUSING RB (LOGAN PARK APTS) SERIES 2007E (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.07%		07/07/21	42,300,000	42,300,000

₁₆

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SACRAMENTO HOUSING AUTH
M/F HOUSING RB (VALENCIA POINT APTS) SERIES 2006I (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	9,250,000	9,250,000
SAN ANTONIO HOUSING FINANCE CORP
M/F HOUSING MORTGAGE RB (ARTISAN) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	12,200,000	12,200,000
SAN JOSE
M/F HOUSING REFUNDING RB (LAS VENTANAS APTS) SERIES 2008B (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.06%		07/07/21	14,600,000	14,600,000
SANTA CRUZ CNTY SUCCESSOR REDEVELOPMENT AGENCY
M/F HOUSING RB (SHAFFER ROAD APTS) SERIES 2002A (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.05%		07/07/21	24,720,000	24,720,000
ST. LOUIS PARK
M/F HOUSING REFUNDING RB (KNOLLWOOD PLACE APTS) SERIES 2005 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.11%		07/07/21	11,400,000	11,400,000
TEXAS DEPT OF HOUSING & COMMUNITY AFFAIRS
M/F HOUSING RB (COSTA IBIZA APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	11,050,000	11,050,000
M/F HOUSING RB (TOWER RIDGE APTS) SERIES 2005 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.13%		07/07/21	13,800,000	13,800,000
M/F HOUSING RB (WINDSHIRE APTS) SERIES 2007 (LOC: FEDERAL NATIONAL MORTGAGE ASSOCIATION)	a	0.06%		07/07/21	9,800,000	9,800,000
M/F HOUSING RB (WOODMONT APTS) SERIES 2009 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	12,350,000	12,350,000
M/F HOUSING REFUNDING RB (ALTA CULLEN APTS) SERIES 2008 (LOC: FEDERAL HOME LOAN MORTGAGE CORPORATION)	a	0.09%		07/07/21	10,030,000	10,030,000
						723,975,000
Total Variable-Rate Obligations
(Cost $5,272,031,735)						5,272,031,735
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 38.5% of net assets
U.S. Government Agency Repurchase Agreements* 23.1%
BANK OF MONTREAL
Issued 05/11/21, repurchase date 07/13/21 (Collateralized by U.S. Government Agency Securities valued at $244,122,816, 2.00% - 4.00%, due 06/01/40 - 06/01/51)		0.03%		07/07/21	237,011,258	237,000,000
BARCLAYS BANK PLC
Issued 06/29/21, repurchase date 07/06/21 (Collateralized by U.S. Government Agency Securities valued at $1,016,619,884, 1.50% - 4.50%, due 07/01/33 - 06/01/51)		0.05%		07/06/21	987,009,596	987,000,000

₁₇

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Issued 06/11/21, repurchase date 07/09/21 (Collateralized by U.S. Government Agency Securities valued at $339,906,610, 2.00% - 2.50%, due 06/01/36 - 05/01/51)		0.03%		07/07/21	330,007,150	330,000,000
Issued 06/30/21, repurchase date 07/07/21 (Collateralized by U.S. Government Agency Securities valued at $1,454,374,140, 2.00% - 6.00%, due 10/01/27 - 06/01/51)		0.05%		07/07/21	1,412,013,728	1,412,000,000
Issued 06/21/21, repurchase date 07/21/21 (Collateralized by U.S. Government Agency Securities valued at $244,122,206, 2.50% - 3.00%, due 09/01/33 - 02/01/51)		0.06%		07/07/21	237,006,320	237,000,000
BOFA SECURITIES INC
Issued 05/10/21, repurchase date 07/12/21 (Collateralized by U.S. Government Agency Securities valued at $732,330,001, 2.50% - 4.00%, due 03/01/49 - 05/01/51)		0.02%		07/07/21	711,022,910	711,000,000
GOLDMAN SACHS & CO LLC
Issued 06/24/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $914,940,000, 0.13% - 7.00%, due 11/15/24 - 05/15/56)		0.05%		07/01/21	897,008,721	897,000,000
Issued 06/30/21, repurchase date 07/07/21 (Collateralized by U.S. Government Agency Securities valued at $183,964,955, 0.37% - 6.00%, due 06/01/30 - 02/20/51)		0.05%		07/07/21	180,001,750	180,000,000
JP MORGAN SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $256,505,529, 0.00% - 8.00%, due 03/24/22 - 06/20/51)		0.05%		07/01/21	250,000,347	250,000,000
MIZUHO SECURITIES USA LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $40,170,001, 2.50%, due 05/20/51)		0.06%		07/01/21	39,000,065	39,000,000
NOMURA SECURITIES INTERNATIONAL INC
Issued 06/25/21, repurchase date 07/02/21 (Collateralized by U.S. Treasury Securities valued at $317,220,067, 0.25% - 2.75%, due 09/15/21 - 02/15/51)		0.06%		07/02/21	311,003,628	311,000,000
ROYAL BANK OF CANADA
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $550,800,790, 0.13% - 2.25%, due 01/15/22 - 02/28/25)		0.05%		07/01/21	540,000,750	540,000,000
Issued 04/05/21, repurchase date 02/03/22 (Collateralized by U.S. Government Agency Securities valued at $488,508,592, 1.50% - 6.50%, due 07/01/27 - 02/01/56)		0.07%		07/07/21	474,085,715	474,000,000
Issued 03/22/21, repurchase date 12/17/21 (Collateralized by U.S. Government Agency Securities valued at $488,476,315, 1.82% - 6.50%, due 01/01/24 - 06/01/51)		0.07%		07/07/21	474,098,618	474,000,000

₁₈

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
WELLS FARGO SECURITIES LLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Government Agency Securities valued at $55,120,092, 2.50% - 3.00%, due 11/01/50 - 02/01/51)		0.06%		07/01/21	53,000,088	53,000,000
						7,132,000,000
U.S. Treasury Repurchase Agreements 15.4%
BARCLAYS BANK PLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $5,195,018, 2.63%, due 02/15/29)		0.05%		07/01/21	5,093,095	5,093,088
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $2,980,004,149, 0.50% - 2.63%, due 08/15/22 - 10/31/27)		0.05%		07/01/21	2,980,004,139	2,980,000,000
FICC - BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $581,400,014, 0.13% - 0.25%, due 01/15/24 - 03/15/24)		0.06%		07/01/21	570,000,950	570,000,000
JP MORGAN SECURITIES LLC
Issued 06/24/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $566,104,796, 0.50% - 1.88%, due 10/31/21 - 04/15/24)		0.05%		07/01/21	555,005,396	555,000,000
Issued 06/28/21, repurchase date 07/02/21 (Collateralized by U.S. Treasury Securities valued at $668,101,910, 0.00% - 8.00%, due 10/15/21 - 07/15/24)		0.05%		07/02/21	655,003,639	655,000,000
						4,765,093,088
Total Repurchase Agreements
(Cost $11,897,093,088)						11,897,093,088

*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
a	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index.

FICC —	Fixed Income Clearing Corp
HFA —	Housing finance agency/authority
LIBOR —	London Interbank Offered Rate is the interest rate banks charge each other for short-term loans.
LOC —	Letter of credit
M/F —	Multi-family
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
US TBILL —	The reference rate is the weekly auction stop for the U.S. Treasury Bill.
VRDN —	Variable rate demand note

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Table of Contents

Schwab Government Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/21-6/30/21		1/1/20-12/31/20
Net investment income		$1,590,459	$71,392,255
Net realized gains	+	3,615	5,375
Increase in net assets from operations		1,594,074	71,397,630
Distributions to Shareholders1
Sweep Shares		(995,250)	(29,441,697)
Investor Shares		(506,503)	(41,930,643)
Ultra Shares	+	(88,706)	(22,585)
Total distributions		($1,590,459)	($71,394,925)
Transactions in Fund Shares*,1
Shares Sold
Sweep Shares		28,861,363,086	85,957,904,791
Investor Shares		2,765,848,917	23,334,546,656
Ultra Shares	+	2,351,729,542	2,223,298,968
Total shares sold		33,978,941,545	111,515,750,415
Shares Reinvested
Sweep Shares		911,333	29,440,336
Investor Shares		372,422	34,089,502
Ultra Shares	+	60,464	14,496
Total shares reinvested		1,344,219	63,544,334
Shares Redeemed
Sweep Shares		(28,877,941,584)	(78,318,071,859)
Investor Shares		(5,735,920,937)	(24,824,251,174)
Ultra Shares	+	(2,184,938,135)	(576,031,262)
Total shares redeemed		(36,798,800,656)	(103,718,354,295)
Net transactions in fund shares		(2,818,514,892)	7,860,940,454
Net Assets
Beginning of period		33,746,944,448	25,886,001,289
Total increase or decrease	+	(2,818,511,277)	7,860,943,159
End of period		$30,928,433,171	$33,746,944,448

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Ultra Shares commenced operations on September 24, 2020.

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Table of Contents

Schwab U.S. Treasury Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/17/18 ¹– 12/31/18
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.02	0.02
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³	(0.01) ⁴
Total from investment operations	0.00 ³	0.00 ³	0.02	0.01
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³	(0.02)	(0.01)
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.02)	(0.01)
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00
Total return	0.00% ⁵^,⁶	0.27%	1.84%	1.40% ⁵
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁷^,⁸	0.23% ⁸^,⁹	0.35%	0.35% ⁷
Gross operating expenses	0.36% ⁷	0.45%	0.49%	0.49% ⁷
Net investment income (loss)	0.01% ⁷	0.15%	1.77%	1.64% ⁷
Net assets, end of period (x 1,000,000)	$8,335	$11,297	$7,517	$3,414

Ultra Shares	1/1/21– 6/30/21*	9/24/20 ¹– 12/31/20
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³
Distributions from net realized gains	—	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³
Net asset value at end of period	$1.00	$1.00
Total return	0.00% ⁵^,⁶	0.00% ⁵^,⁶
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁷^,⁸	0.12% ⁷^,⁸
Gross operating expenses	0.21% ⁷	0.21% ⁷
Net investment income (loss)	0.01% ⁷	0.01% ⁷
Net assets, end of period (x 1,000,000)	$2,862	$2,260

*	Unaudited.

Commencement of operations.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

⁴

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

⁵

Not annualized.

⁶

Percentage was less than 0.005%.

⁷

Annualized.

⁸

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁹

Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab U.S. Treasury Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited)

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

For fixed-rate obligations, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security’s structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 90.1% of net assets
U.S. Treasury Debt 90.1%
UNITED STATES TREASURY		0.01%		07/01/21	75,000,000	75,000,000
		0.08%		07/06/21	100,000,000	99,998,924
		0.01%		07/08/21	500,000,000	499,999,514
		0.02%		07/08/21	200,000,000	199,999,125
		0.01%		07/13/21	1,359,523,000	1,359,520,559
		0.00%		07/15/21	250,000,000	249,999,708
		0.02%		07/15/21	200,000,000	199,998,600
		0.00%		07/20/21	237,700,000	237,699,696
		0.01%		07/20/21	520,000,000	519,997,837
		0.03%		07/20/21	8,868,000	8,867,843
		0.04%		07/20/21	385,000,000	384,992,269
		0.01%		07/22/21	780,000,000	779,995,814
		0.04%		07/22/21	24,000,000	23,999,440
		0.01%		07/27/21	137,104,000	137,103,503
		0.04%		07/27/21	160,000,000	159,995,147
		0.05%		07/27/21	50,000,000	49,998,357
		0.00%		07/29/21	6,182,000	6,181,986
		0.01%		07/29/21	250,000,000	249,997,569
		0.02%		07/29/21	50,000,000	49,999,144
		1.13%		07/31/21	125,545,000	125,655,559
		1.75%		07/31/21	140,310,000	140,498,608
		2.25%		07/31/21	54,000,000	54,095,035
		0.01%		08/03/21	100,000,000	99,999,083
		0.02%		08/03/21	250,000,000	249,996,563
		0.01%		08/05/21	250,000,000	249,996,840
		0.04%		08/05/21	125,000,000	124,995,139
		0.05%		08/05/21	130,000,000	129,994,186
		0.02%		08/10/21	240,000,000	239,995,200
		0.01%		08/12/21	250,630,000	250,627,077
		0.02%		08/12/21	300,000,000	299,994,400
		2.13%		08/15/21	24,000,000	24,059,528
		0.01%		08/19/21	100,000,000	99,998,503
		0.06%		08/19/21	165,200,000	165,187,293
		0.01%		08/24/21	5,212,000	5,211,887

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Table of Contents

Schwab U.S. Treasury Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		0.02%		08/24/21	200,000,000	199,993,250
		0.01%		08/26/21	3,970,000	3,969,954
		0.02%		08/31/21	5,329,000	5,328,824
		1.13%		08/31/21	111,200,000	111,387,988
		0.02%		09/02/21	395,000,000	394,987,474
		0.02%		09/07/21	877,000	876,975
		0.02%		09/09/21	200,000,000	199,992,222
		0.03%		09/09/21	50,000,000	49,997,326
		0.03%		09/16/21	250,000,000	249,985,295
		0.05%		09/30/21	100,000,000	99,987,993
		1.50%		09/30/21	150,000,000	150,527,896
		2.88%		10/15/21	59,134,000	59,614,456
		1.25%		10/31/21	35,900,000	36,034,578
		1.50%		10/31/21	110,400,000	110,906,910
		2.88%		11/15/21	59,100,000	59,714,323
		0.02%		11/18/21	3,978,000	3,977,737
		1.50%		11/30/21	31,000,000	31,184,259
		1.63%		12/31/21	50,000,000	50,388,525
		2.50%		01/15/22	27,911,000	28,275,591
		1.38%		01/31/22	97,600,000	98,346,423
		2.50%		02/15/22	10,000,000	10,151,651
		1.88%		02/28/22	92,900,000	94,008,974
		2.38%		03/15/22	96,200,000	97,762,254
		0.38%		03/31/22	67,629,000	67,788,437
		1.75%		03/31/22	115,400,000	116,828,135
		1.88%		03/31/22	48,300,000	48,952,026
		2.25%		04/15/22	53,800,000	54,720,419
		0.13%		04/30/22	47,000,000	47,024,924
		1.75%		06/15/22	48,618,000	49,401,974
Total Fixed-Rate Obligations
(Cost $10,085,766,729)						10,085,766,729

Variable-Rate Obligations 12.9% of net assets
U.S. Treasury Debt 12.9%
UNITED STATES TREASURY
(3 mo. US TBILL + 0.22%)		0.27%	07/01/21	07/31/21	267,000,000	267,031,893
(3 mo. US TBILL + 0.30%)		0.35%	07/01/21	10/31/21	464,800,000	465,094,005
(3 mo. US TBILL + 0.15%)		0.20%	07/01/21	01/31/22	207,600,000	207,637,294
(3 mo. US TBILL + 0.11%)		0.16%	07/01/21	04/30/22	117,100,000	117,146,940
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	07/31/22	43,000,000	43,011,789
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	10/31/22	283,500,000	283,494,899
(3 mo. US TBILL + 0.05%)		0.10%	07/01/21	01/31/23	64,400,000	64,418,634
Total Variable-Rate Obligations
(Cost $1,447,835,454)						1,447,835,454

US TBILL —

The reference rate is the weekly auction stop for the U.S. Treasury Bill.

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Table of Contents

Schwab U.S. Treasury Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/21-6/30/21		1/1/20-12/31/20
Net investment income		$583,779	$22,517,821
Net realized gains	+	10,349	57,156
Increase in net assets from operations		594,128	22,574,977
Distributions to Shareholders1
Investor Shares		(467,158)	(22,517,362)
Ultra Shares	+	(116,621)	(31,600)
Total distributions		($583,779)	($22,548,962)
Transactions in Fund Shares*,1
Shares Sold
Investor Shares		1,362,840,603	29,346,089,219
Ultra Shares	+	3,615,543,412	2,973,597,958
Total shares sold		4,978,384,015	32,319,687,177
Shares Reinvested
Investor Shares		309,470	18,040,784
Ultra Shares	+	65,404	13,520
Total shares reinvested		374,874	18,054,304
Shares Redeemed
Investor Shares		(4,325,295,443)	(25,583,897,686)
Ultra Shares	+	(3,013,458,036)	(713,882,742)
Total shares redeemed		(7,338,753,479)	(26,297,780,428)
Net transactions in fund shares		(2,359,994,590)	6,039,961,053
Net Assets
Beginning of period		13,557,296,015	7,517,308,947
Total increase or decrease	+	(2,359,984,241)	6,039,987,068
End of period		$11,197,311,774	$13,557,296,015

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Ultra Shares commenced operations on September 24, 2020.

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Treasury Obligations Money Fund

Financial Statements

Financial Highlights

Investor Shares	1/1/21– 6/30/21*	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17¹	1/1/16– 12/31/16
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.02	0.02	0.01	0.00 ³
Net realized and unrealized gains (losses)	(0.00) ³	0.00 ³	0.00 ³	(0.01) ⁴	0.00 ³	(0.00) ³
Total from investment operations	0.00 ³	0.00 ³	0.02	0.01	0.01	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³	(0.02)	(0.01)	(0.01)	(0.00) ³
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	—	(0.00) ³	—
Total distributions	(0.00) ³	(0.00) ³	(0.02)	(0.01)	(0.01)	(0.00) ³
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.00% ⁵^,⁶	0.27%	1.89%	1.51%	0.58%	0.06%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁷^,⁸	0.30% ⁸^,⁹	0.35%	0.35%	0.33% ⁸^,¹⁰	0.30% ⁸
Gross operating expenses	0.35% ⁷	0.46%	0.48%	0.49%	0.54%	0.58%
Net investment income (loss)	0.01% ⁷	0.27%	1.86%	1.57%	0.65%	0.11%
Net assets, end of period (x 1,000,000)	$5,913	$7,573	$10,820	$7,545	$3,125	$692

Ultra Shares	1/1/21– 6/30/21*	9/24/20 ¹¹– 12/31/20
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³
Net realized and unrealized gains (losses)	(0.00) ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³
Distributions from net realized gains	—	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³
Net asset value at end of period	$1.00	$1.00
Total return	0.00% ⁵^,⁶	0.00% ⁵^,⁶
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.06% ⁷^,⁸	0.16% ⁷^,⁸
Gross operating expenses	0.20% ⁷	0.21% ⁷
Net investment income (loss)	0.01% ⁷	0.01% ⁷
Net assets, end of period (x 1,000,000)	$2,286	$1,754

*	Unaudited.

Effective October 3, 2017, the share class name of Value Advantage Shares was changed to Investor Shares.

Calculated based on the average shares outstanding during the period.

Per-share amount was less than $0.005.

⁴

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

⁵

Not annualized.

⁶

Percentage was less than 0.005%.

⁷

Annualized.

⁸

Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

⁹

Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.

¹⁰

Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

¹¹

Commencement of operations.

₂₉

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited)

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

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
Fixed-Rate Obligations 55.6% of net assets
U.S. Treasury Debt 55.6%
UNITED STATES TREASURY		0.00%		07/01/21	117,000,000	117,000,000
		0.00%		07/08/21	57,000,000	56,999,979
		0.01%		07/08/21	50,000,000	49,999,951
		0.01%		07/13/21	350,000,000	349,999,417
		0.01%		07/15/21	247,000,000	246,999,520
		2.63%		07/15/21	92,300,000	92,388,643
		0.00%		07/20/21	350,000,000	349,999,591
		0.01%		07/20/21	332,000,000	331,999,124
		0.02%		07/20/21	19,500,000	19,499,846
		0.01%		07/22/21	139,600,000	139,599,186
		0.02%		07/22/21	34,100,000	34,099,702
		0.01%		07/27/21	388,000,000	387,998,599
		0.02%		07/27/21	34,000,000	33,999,632
		0.02%		07/29/21	100,000,000	99,998,542
		1.13%		07/31/21	46,000,000	46,040,696
		1.75%		07/31/21	121,000,000	121,162,365
		2.25%		07/31/21	39,000,000	39,068,636
		0.02%		08/12/21	150,000,000	149,997,200
		2.13%		08/15/21	17,000,000	17,042,166
		2.75%		08/15/21	45,300,000	45,447,403
		0.06%		08/19/21	25,000,000	24,998,128
		0.02%		08/24/21	191,000,000	190,993,554
		1.13%		08/31/21	115,000,000	115,193,555
		1.50%		08/31/21	68,000,000	68,160,122
		2.00%		08/31/21	22,200,000	22,269,307
		0.02%		09/09/21	50,000,000	49,998,055
		2.75%		09/15/21	41,000,000	41,225,179
		1.50%		09/30/21	168,000,000	168,615,808
		2.13%		09/30/21	45,900,000	46,131,641
		1.25%		10/31/21	151,100,000	151,681,146
		1.50%		10/31/21	142,300,000	142,957,978
		2.00%		10/31/21	32,300,000	32,504,978
		2.88%		11/15/21	42,200,000	42,638,654
		1.50%		11/30/21	30,200,000	30,374,883

₃₀

Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		1.75%		11/30/21	12,000,000	12,083,554
		1.88%		11/30/21	61,100,000	61,555,625
		1.63%		12/31/21	10,300,000	10,380,036
		2.00%		12/31/21	16,300,000	16,456,579
		1.38%		01/31/22	79,800,000	80,410,369
		1.50%		01/31/22	100,800,000	101,628,427
		2.50%		02/15/22	40,000,000	40,606,530
		1.88%		02/28/22	111,400,000	112,733,431
		2.38%		03/15/22	91,700,000	93,186,502
		1.75%		03/31/22	85,600,000	86,659,336
		1.88%		03/31/22	34,900,000	35,371,133
		2.25%		04/15/22	40,500,000	41,192,880
		1.88%		04/30/22	7,000,000	7,105,727
Total Fixed-Rate Obligations
(Cost $4,556,453,315)						4,556,453,315

Variable-Rate Obligations 15.7% of net assets
U.S. Treasury Debt 15.7%
UNITED STATES TREASURY
(3 mo. US TBILL + 0.22%)		0.27%	07/01/21	07/31/21	125,000,000	125,016,018
(3 mo. US TBILL + 0.30%)		0.35%	07/01/21	10/31/21	369,000,000	369,250,288
(3 mo. US TBILL + 0.15%)		0.20%	07/01/21	01/31/22	402,300,000	402,376,475
(3 mo. US TBILL + 0.11%)		0.16%	07/01/21	04/30/22	64,200,000	64,211,721
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	07/31/22	182,500,000	182,504,797
(3 mo. US TBILL + 0.06%)		0.11%	07/01/21	10/31/22	91,000,000	90,999,223
(3 mo. US TBILL + 0.05%)		0.10%	07/01/21	01/31/23	54,900,000	54,916,229
Total Variable-Rate Obligations
(Cost $1,289,274,751)						1,289,274,751
Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
Repurchase Agreements 29.6% of net assets
U.S. Treasury Repurchase Agreements 29.6%
BARCLAYS BANK PLC
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $1,979,744, 2.63%, due 02/15/29)		0.05%		07/01/21	1,940,887	1,940,884
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $60,180,148, 0.63%, due 04/15/23 - 01/15/24)		0.05%		07/01/21	59,000,082	59,000,000
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $791,001,114, 0.13% - 1.50%, due 08/15/22 - 10/31/27)		0.05%		07/01/21	791,001,099	791,000,000

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Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2021 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Maturity Amount ($)	Value ($)
FICC - BANK OF NEW YORK
Issued 06/30/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $781,320,008, 0.13% - 5.50%, due 08/15/23 - 07/15/29)		0.06%		07/01/21	766,001,277	766,000,000
Issued 06/30/21, repurchase date 07/07/21 (Collateralized by U.S. Treasury Securities valued at $56,685,813, 3.13%, due 11/15/28)		0.06%		07/07/21	55,000,642	55,000,000
JP MORGAN SECURITIES LLC
Issued 06/24/21, repurchase date 07/01/21 (Collateralized by U.S. Treasury Securities valued at $208,081,783, 0.00% - 0.38%, due 12/16/21 - 07/15/23)		0.05%		07/01/21	204,001,983	204,000,000
Issued 06/28/21, repurchase date 07/02/21 (Collateralized by U.S. Treasury Securities valued at $306,000,887, 0.00% - 2.75%, due 07/22/21 - 01/15/22)		0.05%		07/02/21	300,001,667	300,000,000
Issued 06/15/21, repurchase date 09/21/21 (Collateralized by U.S. Treasury Securities valued at $255,003,272, 2.13% - 2.50%, due 06/30/22 - 03/31/23)		0.03%		07/07/21	250,004,583	250,000,000
Total Repurchase Agreements
(Cost $2,426,940,884)						2,426,940,884

FICC —	Fixed Income Clearing Corp
US TBILL —	The reference rate is the weekly auction stop for the U.S. Treasury Bill.

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Schwab Treasury Obligations Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

Operations
	1/1/21-6/30/21		1/1/20-12/31/20
Net investment income		$436,414	$30,300,226
Net realized gains (losses)	+	(6,807)	8,789
Increase in net assets from operations		429,607	30,309,015
Distributions to Shareholders1
Investor Shares		(323,362)	(30,263,364)
Ultra Shares	+	(113,052)	(41,584)
Total distributions		($436,414)	($30,304,948)
Transactions in Fund Shares*,1
Shares Sold
Investor Shares		1,971,575,374	17,426,820,437
Ultra Shares	+	3,281,548,434	2,394,046,136
Total shares sold		5,253,123,808	19,820,866,573
Shares Reinvested
Investor Shares		217,350	23,948,502
Ultra Shares	+	84,719	31,929
Total shares reinvested		302,069	23,980,431
Shares Redeemed
Investor Shares		(3,631,170,352)	(20,698,011,339)
Ultra Shares	+	(2,749,292,128)	(640,333,407)
Total shares redeemed		(6,380,462,480)	(21,338,344,746)
Net transactions in fund shares		(1,127,036,603)	(1,493,497,742)
Net Assets
Beginning of period		9,326,436,809	10,819,930,484
Total decrease	+	(1,127,043,410)	(1,493,493,675)
End of period		$8,199,393,399	$9,326,436,809

*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.
¹	Ultra Shares commenced operations on September 24, 2020.

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Schwab Government Money Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

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

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Retirement Government Money Fund
Schwab U.S. Treasury Money Fund	Schwab Municipal Money Fund
Schwab Treasury Obligations Money Fund	Schwab AMT Tax-Free Money Fund
Schwab Value Advantage Money Fund^®	Schwab California Municipal Money Fund
Schwab Variable Share Price Money Fund	Schwab New York Municipal Money Fund

Schwab Government Money Fund offers three share classes: Sweep Shares, Investor Shares and Ultra Shares. Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund, each offer two share classes, Investor Shares and Ultra Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

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

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by 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 value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities in the funds are valued at amortized cost (which approximates fair value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate fair value, securities may be fair valued as determined in accordance with procedures adopted by the Board. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the 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 funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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

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

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

As disclosed in the Portfolio Holdings, as of June 30, 2021, all of the funds’ investments were classified as Level 2.

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

Repurchase Agreements: (Schwab U.S. Treasury Money Fund may not invest in repurchase agreements) In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The funds mitigate this risk by ensuring that the funds’ repurchase agreements are collateralized by cash and/or U.S. government securities. All collateral is held by the funds’ custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its fair value is at least equal to the maturity amount under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2021, the following funds had investments in repurchase agreements with a gross value as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities:

Schwab Government Money Fund	$11,897,093,088
Schwab Treasury Obligations Money Fund	2,426,940,884

The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Delayed-Delivery Transactions: The funds may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The funds will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to a fund until the security is delivered. The funds will earmark or segregate appropriate liquid assets to cover their delayed-delivery purchase obligations, if any.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.

For funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds declare distributions from net investment income, if any, every day they are open for business. These distributions, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds make distributions from net realized capital gains, if any, once a year.

(g) Accounting Estimates:

(h) Federal Income Taxes:

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

(i) Indemnification:

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

(j) Recent Accounting Standards:

3. Risk Factors:

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Governmental and quasi-governmental authorities and regulators throughout the world have in the past often responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes which could have an unexpected impact on financial markets and a fund’s investments. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.

Investment Risk. You could lose money by investing in the funds. Although each fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds’ sponsors have no legal obligation to provide financial support to the funds, and you should not expect that the sponsors will provide financial support to the funds at any time.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low or there are negative interest rates, a fund’s yield (and total return) also could be low or even negative. In addition, a fund may be unable to pay expenses out of fund assets or maintain a stable $1.00 share price. Also, a change in a central bank’s monetary policy or economic conditions may result in a change in interest rates, which could have sudden and unpredictable effects on the markets. Volatility in the market may decrease liquidity in the money market securities markets, making it more difficult for a fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of a fund’s money market securities holdings.

Stable Net Asset Value Risk. If a fund or another money market fund fails to maintain a stable net asset value (or such perception exists in the market place), the fund could experience increased redemptions, which may adversely impact the fund’s share price. Each fund is permitted, among other things, to reduce or withhold any income and/or gains generated from its portfolio to maintain a stable $1.00 share price.

Repurchase Agreements Risk. (Applies only to Schwab Government Money Fund and Schwab Treasury Obligations Money Fund) When a fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when a fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security.

Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in credit quality, the issuer, guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations. Even though a fund’s investments in repurchase agreements are collateralized at all times, there is some risk to the fund if the other party should default on its obligations and the fund is delayed or prevented from recovering or disposing of the collateral. The credit quality of a fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause a fund’s share price or yield to fall.

Certain U.S. government securities that the funds invest in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) maintain only lines of credit with the U.S. Treasury. Additionally, the FHFA recently announced plans to begin removing Fannie Mae and Freddie Mac from conservatorship. The Federal Home Loan Banks maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation, are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities a fund owns do not extend to the shares of the fund itself.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause a fund to underperform or otherwise not meet its investment objective. A fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect a fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, a fund’s yield at times could lag the yields of other money market funds.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Redemption Risk. A fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in a fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the funds, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Fund Risk. The funds are not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

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

4. Affiliates and Affiliated Transactions:

Investment Adviser

Charles Schwab Investment Management, Inc. (CSIM or the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between it and the trust.

For its advisory and administrative services to the funds, CSIM is entitled to receive an annual fee, payable monthly, equal to 0.19% of each fund’s average daily net assets.

Shareholder Servicing

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of CSIM (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The Plan also enables Sweep Shares of a fund to pay Schwab for certain sweep administration services, such as processing of automatic purchases and redemptions, it provides to fund shareholders invested in such funds based on the amounts set forth below.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and the funds will pay no more than the amounts listed in the table below, calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. The sweep administration fee and shareholder servicing fee paid to Schwab are based on the average daily net asset value of a fund’s shares owned by shareholders holding shares through Schwab.

	Shareholder Servicing Fee	Sweep Administration Fee
Schwab Government Money Fund
Sweep Shares	0.15%	0.10%
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a
Schwab U.S. Treasury Money Fund
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a
Schwab Treasury Obligations Money Fund
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Contractual Expense Limitation

CSIM and its affiliates have made an additional agreement with each fund, for so long as CSIM serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation), as follows:

Schwab Government Money Fund
Sweep Shares	0.44%
Investor Shares	0.34%
Ultra Shares	0.19%
Schwab U.S. Treasury Money Fund
Investor Shares	0.34%
Ultra Shares	0.19%
Schwab Treasury Obligations Money Fund
Investor Shares	0.34%
Ultra Shares	0.19%

During the period ended June 30, 2021, the funds waived the following amounts, of which a portion was waived in accordance with the contractual expense limitation agreements, and a portion was waived voluntarily.

	Contractual Expense Limitation Waived Amount	Voluntary Yield Waiver/ Reimbursement Amount	Total Waived Amount
Schwab Government Money Fund	$1,439,706	$52,421,056	$53,860,762
Schwab U.S. Treasury Money Fund	1,021,530	14,331,032	15,352,562
Schwab Treasury Obligations Money Fund	594,306	10,387,332	10,981,638

Voluntary Yield Waiver/Reimbursement

CSIM and its affiliates may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for each fund or each class of a fund.

Interfund Transactions

The funds may engage in transactions with certain other funds in the Fund Complex (for definition refer to Trustees and Officers section) in accordance with procedures adopted by the Board under Rule 17a-7 of the 1940 Act. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended June 30, 2021, each fund’s total aggregate security transactions with other funds in the Fund Complex as well as any realized gains (losses) were as follows:

	Total Aggregate Transactions	Realized Gains (Losses)
Schwab Government Money Fund	$52,576,618	$—
Schwab U.S. Treasury Money Fund	—	—
Schwab Treasury Obligations Money Fund	—	—

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex (for definition refer to Trustees and Officers section). All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

5. Board of Trustees:

6. Borrowing from Banks:

During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 30, 2021. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 30, 2021. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of June 30, 2021, the tax basis cost of the funds’ investments was as follows:

	Schwab Government Money Fund		Schwab U.S. Treasury Money Fund		Schwab Treasury Obligations Money Fund
Tax cost	$31,373,713,479		$11,533,602,183		$8,272,668,950

Capital loss carryforwards may be used to offset future realized capital gains for federal income tax purposes. As of December 31, 2020, the funds had no capital loss carryforwards available to offset future net capital gains.

	Schwab Government Money Fund	Schwab U.S. Treasury Money Fund	Schwab Treasury Obligations Money Fund
Ordinary income	$71,394,925	$22,548,962	$30,304,948

As of December 31, 2020, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended December 31, 2020, the funds did not incur any interest or penalties.

8. Subsequent Events:

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Schwab Government Money Funds

Investment Advisory Agreement Approval

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (CSIM) with respect to the existing funds in the Trust, including Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, and Schwab Treasury Obligations Money Fund (the Funds), and to review certain other agreements pursuant to which CSIM provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by CSIM, including information about CSIM’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to CSIM seeking certain relevant information. The responses by CSIM are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of CSIM and meet in executive session outside the presence of Fund management.

The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Funds at meetings held on May 12, 2021 and June 8, 2021, and approved the renewal of the Agreement with respect to the Funds for an additional

one-year term at the meeting on June 8, 2021 called for the purpose of voting on such approval.¹

The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of CSIM and its affiliates dedicated to the Funds;
2.	each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to CSIM and its affiliates; and
5.	the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, CSIM’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by CSIM relating to services and support provided with respect to the Funds’ portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments CSIM has made in its infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders. The Trustees considered CSIM’s effective implementation of its business continuity plan in response to the COVID-19 pandemic and government-mandated restrictions during the prior year. The Trustees also considered Schwab’s wide range of products, services, and channel alternatives such as investment research tools and an array of account features that benefit Fund shareholders who are brokerage clients of Schwab. The Trustees also considered Schwab’s reputation as a full service

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brokerage firm and its overall financial condition, including Schwab’s ability to maintain consistent operations and service levels during recent periods of remote work and market volatility. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by CSIM to the Funds and the resources of CSIM and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.

Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of portfolio yield and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s operation as a government money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and adviser profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of such Fund supported renewal of the Agreement with respect to such Fund.

Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. CSIM reported to the Board, and the Board took into account, the risk assumed by CSIM in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of CSIM’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Funds from exceeding a specified cap, as well as historically using voluntary waivers (which CSIM will not recoup) to maintain a certain yield. The Trustees also considered fees charged by CSIM to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services CSIM provides to these other accounts, as well as differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the

context of its full deliberations, that the expenses of such Fund are reasonable and supported renewal of the Agreement with respect to such Fund.

Profitability. The Trustees considered the compensation flowing to CSIM and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of CSIM relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by CSIM from its relationship with the Funds, such as whether, by virtue of its management of the Funds, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Funds by CSIM and its affiliates. The Trustees noted that CSIM continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of CSIM with respect to each Fund is reasonable and supported renewal of the Agreement with respect to such Fund.

Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by CSIM in CSIM’s infrastructure, including modernizing CSIM’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) graduated investment advisory fee schedules, fee waivers, or expense caps by CSIM and its affiliates for those funds in the Schwab fund complex with such features. The Trustees acknowledged that CSIM has shared any economies of scale with the Funds by investing in CSIM’s infrastructure, as discussed above, over time and that CSIM’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds continue to increase as a result of regulatory or other developments. The Trustees considered that CSIM and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of such funds at subsidized expense levels. Based on this evaluation, the Board

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Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 103 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor (Jan. 2009 – present). Formerly, Managing Director, Pacific Investment Management Company, LLC (PIMCO) (investment management firm) and President, PIMCO Funds.	103	None
John F. Cogan 1947 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Laudus Trust since 2010; Schwab Strategic Trust since 2016)	Senior Fellow (Oct. 1979 – present), The Hoover Institution at Stanford University (public policy think tank); Senior Fellow (2000 – present), Stanford Institute for Economic Policy Research; Professor of Public Policy (1994 – 2015), Stanford University.	103	Director (2005 – 2020), Gilead Sciences, Inc.
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Retired. President and Chairman (2014 – 2016), TIAA Charitable (financial services); Senior Managing Director (2003 – 2016), TIAA (financial services).	103	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	103	Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – present), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare).	103	None

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired. Executive Vice President and General Manager of Small Business Group (Dec. 2008 – Sept. 2013), Intuit, Inc. (financial software and services firm for consumers and small businesses).	103	Director (2008 – present), KLA-Tencor Corporation
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	103	None
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services).	103	None

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Director, President and Chief Executive Officer (Oct. 2008 – present), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – present) and Director (May 2008 – present), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present) and President and Chief Executive Officer (Aug. 2017 – present), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – present), Charles Schwab Investment Management, Inc.	103	Director (2008 – present), The Charles Schwab Corporation

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Interested Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (July 2015 – Feb. 2018), The Charles Schwab Corporation; Senior Executive Vice President (July 2015 – present), Charles Schwab & Co., Inc.; Chief Financial Officer (July 2015 – Aug. 2017) and Executive Vice President and Chief Financial Officer (May 2007 – July 2015), The Charles Schwab Corporation and Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – present) and Chief Executive Officer (July 2013 – Apr. 2015), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Chief Financial Officer (May 2007 – Aug. 2017), Senior Executive Vice President (Feb. 2016 – present), and Executive Vice President (May 2007 – Feb. 2016), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation.	103	None

Officers of the Trust
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2020 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – present) and Chief Operating Officer (Jan. 2020 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Funds and Schwab ETFs; Director (Apr. 2019 – present), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Senior Vice President (Apr. 2019 – present), Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), and Vice President (Jan. 2009 – Dec. 2013), Charles Schwab & Co., Inc.
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Assistant Treasurer (Dec. 2013 – Dec. 2015), Schwab Funds and Laudus Funds; Assistant Treasurer (Nov. 2013 – Dec. 2015), Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Executive Director (Apr. 2011 – Sept. 2013), J.P. Morgan Investor Services; Assistant Treasurer (May 2005 – Mar. 2011), Massachusetts Financial Service Investment Management.
Omar Aguilar 1970 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Head of the Portfolio Management Group and Vice President of Portfolio Management (May 2009 – Apr. 2011), Financial Engines, Inc. (investment management firm); Head of Quantitative Equity (July 2004 – Jan. 2009), ING Investment Management.
Brett Wander 1961 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Managing Director and Global Head of Active Fixed-Income Strategies (Jan. 2008 – Oct. 2010), State Street Global Advisors; Director of Alpha Strategies (Apr. 2006 – Jan. 2008), Loomis, Sayles & Company (investment management firm).
William P. McMahon, Jr. 1972 Senior Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Senior Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Funds and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc.

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Officers of the Trust (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served³)	Principal Occupations During the Past Five Years
David Lekich 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Vice President and Assistant Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President (Sept. 2011 – present) and Vice President (Mar. 2004 – Sept. 2011), Charles Schwab & Co., Inc.; Senior Vice President and Chief Counsel (Sept. 2011 – present) and Vice President (Jan. 2011 – Sept. 2011), Charles Schwab Investment Management, Inc.; Secretary (Apr. 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds; Vice President and Assistant Clerk (Apr. 2011 – present), Laudus Funds; Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.
Catherine MacGregor 1964 Vice President and Assistant Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Funds (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Vice President (July 2005 – present), Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Funds; Vice President (Nov. 2005 – present) and Assistant Secretary (June 2007 – present), Schwab Funds; Vice President and Assistant Secretary (Oct. 2009 – present), Schwab ETFs.

¹	Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc. (CSIM), the investment adviser for the trusts in the Fund Complex, is an employee and director of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust, and is a director of CSIM. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab.
³	The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

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