Report of Independent Registered Public Accounting Firm


To the Board of Directors and Shareholders of
Schwab 1000 Index Fund (a portfolio of Schwab Investments)

In planning and performing our audits of the financial
statements of Schwab 1000 Index Fund
(hereafter referred to as ?the Funds?) as of and for the
year ended October 31, 2006, in
accordance with the standards of the Public Company Accounting
Oversight Board (United States),
we considered the Company?s internal control over financial
reporting, including control
activities for safeguarding securities, as a basis for designing
our auditing procedures for the
purpose of expressing our opinion on the financial statements
and to comply with the requirements
of Form N-SAR, but not for the purpose of expressing an opinion
on the effectiveness of the
Funds' internal control over financial reporting. Accordingly,
we express no such opinion.

The management of the Funds is responsible for establishing and
maintaining effective internal
control over financial reporting.  In fulfilling this responsibility,
estimates and judgments by
management are required to assess the expected benefits and related
costs of controls.  A
company?s internal control over financial reporting is a process
designed to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial
statements for external purposes in accordance with generally accepted
accounting principles.
Such internal control over financial reporting includes policies
and procedures that provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or
disposition of a Fund?s assets that could have a material effect on
the financial statements.

Because of its inherent limitations, internal control over financial
reporting may not prevent or
detect misstatements.  Also, projections of any evaluation of effectiveness
to future periods are
subject to the risk that controls may become inadequate because of changes
in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

A control deficiency exists when the design or operation of a control does
not allow management
or employees, in the normal course of performing their assigned functions,
 to prevent or detect
misstatements on a timely basis. A significant deficiency is a control
deficiency, or combination
of control deficiencies, that adversely affects the company?s ability to
initiate, authorize,
record, process or report external financial data reliably in accordance
with generally accepted
accounting principles such that there is more than a remote likelihood that
 a misstatement of the
Funds' annual or interim financial statements that is more than
inconsequential will not be
prevented or detected.  A material weakness is a control deficiency, or
combination of control
deficiencies, that results in more than a remote likelihood that a material
misstatement of the
annual or interim financial statements will not be prevented or detected.

Our consideration of the Funds' internal control over financial reporting
was for the limited
purpose described in the first paragraph and would not necessarily disclose
all deficiencies in
internal control over financial reporting that might be significant
deficiencies or material
weaknesses under standards established by the Public Company Accounting
Oversight Board (United
States).  However, we noted no deficiencies in the Funds' internal control
over financial
reporting and its operation, including controls for safeguarding securities,
that we consider to
be material weaknesses as defined above as of October 31, 2006.

This report is intended solely for the information and use of management
and the Board of
Trustees of the Funds and the Securities and Exchange Commission and is not
intended to be and
should not be used by anyone other than these specified parties.


PricewaterhouseCoopers LLP
San Francisco, California
December 14, 2006


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