N-Q 1 f53621sinvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6200
Schwab Investments – Schwab 1000 Index Fund
(Exact name of registrant as specified in charter)
     
211 Main Street, San Francisco, California   94105
 
(Address of principal executive offices)   (Zip code)
Randall W. Merk
Schwab Investments – Schwab 1000 Index Fund
211 Main Street San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: October 31
Date of reporting period: May 1, 2009 – July 31, 2009
 
 
Item 1. Schedule of Investments.

 

 

Schwab Investments
Schwab 1000 Index® Fund
Portfolio Holdings As of July 31, 2009, (Unaudited)
The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.
                         
            Cost   Value
Holdings by Category   ($ x 1,000)   ($ x 1,000)
 
  99.7 %  
Common Stock
     2,501,864       4,140,152  
 
  99.7 %  
Total Investments
     2,501,864       4,140,152  
  0.3 %  
Other Assets and Liabilities, Net
             10,520  
 
  100.0 %  
Net Assets
             4,150,672  
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Common Stock 99.7% of net assets
                
 
                
Automobiles & Components 0.6%
                
BorgWarner, Inc.
     53,698       1,782  
Ford Motor Co. *
     1,221,887       9,775  
Gentex Corp.
     66,272       992  
Harley-Davidson, Inc.
     106,092       2,398  
Johnson Controls, Inc.
     254,874       6,596  
The Goodyear Tire & Rubber Co. *
     105,400       1,794  
WABCO Holdings, Inc.
     23,000       437  
 
                
 
             23,774  
Banks 2.6%
                
Associated Banc-Corp.
     57,148       620  
Astoria Financial Corp.
     23,304       226  
BancorpSouth, Inc.
     30,000       675  
Bank of Hawaii Corp.
     23,032       884  
BB&T Corp.
     238,700       5,462  
BOK Financial Corp.
     10,000       419  
CapitalSource, Inc.
     77,579       360  
Capitol Federal Financial
     6,000       221  
City National Corp.
     16,532       652  
Comerica, Inc.
     70,128       1,672  
Commerce Bancshares, Inc.
     31,807       1,166  
Cullen/Frost Bankers, Inc.
     24,800       1,191  
Fifth Third Bancorp
     311,384       2,958  
First Citizens BancShares, Inc., Class A
     1,150       163  
First Horizon National Corp. *
     78,215       1,003  
First Niagara Financial Group, Inc.
     50,000       658  
FirstMerit Corp.
     32,236       602  
Fulton Financial Corp.
     72,544       490  
Hudson City Bancorp, Inc.
     220,240       3,097  
Huntington Bancshares, Inc.
     165,098       675  
International Bancshares Corp.
     10,950       144  
Investors Bancorp, Inc. *
     10,100       100  
KeyCorp
     205,914       1,190  
M&T Bank Corp.
     35,543       2,073  
Marshall & Ilsley Corp.
     118,531       716  
New York Community Bancorp, Inc.
     137,882       1,509  
NewAlliance Bancshares, Inc.
     45,000       551  
People’s United Financial, Inc.
     140,593       2,285  
PNC Financial Services Group, Inc.
     184,734       6,772  
Popular, Inc.
     129,386       164  
Regions Financial Corp.
     313,806       1,387  
SunTrust Banks, Inc.
     157,693       3,075  
Synovus Financial Corp.
     131,441       461  
TCF Financial Corp.
     48,584       687  
TFS Financial Corp.
     34,000       377  
U.S. Bancorp
     746,805       15,242  
UMB Financial Corp.
     6,350       265  
Valley National Bancorp
     49,932       635  
Wells Fargo & Co.
     1,866,396       45,652  
Westamerica Bancorp
     10,000       523  
Wilmington Trust Corp.
     30,237       348  
Zions Bancorp
     50,098       680  
 
                
 
             108,030  
Capital Goods 7.5%
                
3M Co.
     290,034       20,453  
Acuity Brands, Inc.
     18,500       546  
Aecom Technology Corp. *
     34,000       1,102  
AGCO Corp. *
     41,700       1,312  
Alliant Techsystems, Inc. *
     13,438       1,058  
AMETEK, Inc.
     49,247       1,594  
Armstrong World Industries, Inc. *
     4,300       106  
Bucyrus International, Inc.
     24,000       708  
Carlisle Cos., Inc.
     20,236       634  
Caterpillar, Inc.
     252,976       11,146  
CLARCOR, Inc.
     21,000       695  
Cooper Industries Ltd., Class A
     74,800       2,465  
Crane Co.
     23,584       500  
Cummins, Inc.
     87,132       3,748  
Curtiss-Wright Corp.
     18,000       595  
Danaher Corp.
     108,620       6,652  
Deere & Co.
     180,146       7,880  
Donaldson Co., Inc.
     25,900       985  
Dover Corp.
     82,937       2,821  
Eaton Corp.
     67,959       3,528  
Emerson Electric Co.
     314,488       11,441  
Fastenal Co.
     50,900       1,811  
First Solar, Inc. *
     16,000       2,470  
Flowserve Corp.
     25,341       2,047  
Fluor Corp.
     77,558       4,095  
Foster Wheeler AG *
     58,856       1,360  
GATX Corp.
     20,000       504  
General Cable Corp. *
     20,000       775  
General Dynamics Corp.
     162,924       9,024  
General Electric Co.
     4,395,322       58,897  
Goodrich Corp.
     54,298       2,789  
Graco, Inc.
     25,194       623  
Granite Construction, Inc.
     15,000       508  
Harsco Corp.
     38,900       1,070  
Honeywell International, Inc.
     309,099       10,726  

1

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Hubbell, Inc., Class B
     25,332       945  
Icahn Enterprises L.P.
     1,700       67  
IDEX Corp.
     37,306       1,018  
Illinois Tool Works, Inc.
     164,404       6,667  
ITT Corp.
     79,544       3,930  
Jacobs Engineering Group, Inc. *
     54,856       2,248  
Joy Global, Inc.
     45,008       1,673  
KBR, Inc.
     70,000       1,483  
Kennametal, Inc.
     35,198       750  
L-3 Communications Holdings, Inc.
     50,374       3,803  
Lennox International, Inc.
     22,000       767  
Lincoln Electric Holdings, Inc.
     18,000       763  
Lockheed Martin Corp.
     137,104       10,250  
Masco Corp.
     143,736       2,002  
McDermott International, Inc. *
     102,712       2,007  
Moog, Inc., Class A *
     15,000       404  
MSC Industrial Direct Co., Inc., Class A
     9,658       379  
Navistar International Corp. *
     22,000       870  
Northrop Grumman Corp.
     136,832       6,100  
Owens Corning, Inc. *
     43,300       796  
PACCAR, Inc.
     154,989       5,370  
Pall Corp.
     55,133       1,658  
Parker Hannifin Corp
     69,453       3,075  
Pentair, Inc.
     46,300       1,265  
Precision Castparts Corp.
     59,801       4,773  
Quanta Services, Inc. *
     70,000       1,632  
Raytheon Co.
     166,190       7,803  
Rockwell Automation, Inc.
     62,049       2,569  
Rockwell Collins, Inc.
     70,253       2,965  
Roper Industries, Inc.
     39,091       1,869  
Seaboard Corp.
     50       55  
Spirit AeroSystems Holdings, Inc., Class A *
     22,000       286  
SPX Corp.
     22,914       1,210  
SunPower Corp., Class A *
     32,000       1,030  
Teledyne Technologies, Inc. *
     15,000       491  
Terex Corp. *
     47,582       722  
Textron, Inc.
     116,138       1,561  
The Boeing Co.
     303,189       13,010  
The Shaw Group, Inc. *
     30,669       903  
The Timken Co.
     43,594       888  
Thomas & Betts Corp. *
     23,129       616  
TransDigm Group, Inc. *
     8,000       306  
Trinity Industries, Inc.
     33,691       470  
Tyco International Ltd. *
     201,598       6,092  
United Technologies Corp.
     392,963       21,405  
URS Corp. *
     37,000       1,872  
USG Corp. *
     11,206       159  
Valmont Industries, Inc.
     2,500       180  
W.W. Grainger, Inc.
     28,176       2,533  
Wabtec Corp.
     19,000       639  
Woodward Governor Co.
     11,750       231  
 
                
 
             311,228  
Commercial & Professional Supplies 0.8%
                
Avery Dennison Corp.
     42,460       1,135  
Cintas Corp.
     48,110       1,211  
Clean Harbors, Inc. *
     10,000       522  
Copart, Inc. *
     26,914       950  
Corrections Corp. of America *
     50,000       863  
Covanta Holding Corp. *
     54,848       926  
Equifax, Inc.
     57,900       1,508  
FTI Consulting, Inc. *
     18,000       980  
IHS, Inc., Class A *
     12,000       599  
Iron Mountain, Inc. *
     73,387       2,144  
Manpower, Inc.
     36,791       1,764  
Monster Worldwide, Inc. *
     34,500       449  
Pitney Bowes, Inc.
     92,741       1,915  
R.R. Donnelley & Sons Co.
     99,419       1,382  
Republic Services, Inc.
     137,281       3,652  
Robert Half International, Inc.
     66,991       1,661  
Rollins, Inc.
     15,200       279  
Stericycle, Inc. *
     39,098       2,002  
Tetra Tech, Inc. *
     26,000       783  
The Brink’s Co.
     19,915       541  
The Dun & Bradstreet Corp.
     23,525       1,694  
Waste Connections, Inc. *
     36,000       1,016  
Waste Management, Inc.
     207,877       5,843  
Watson Wyatt Worldwide, Inc., Class A
     16,000       597  
 
                
 
             34,416  
Consumer Durables & Apparel 1.1%
                
Centex Corp. *
     52,500       573  
Coach, Inc.
     139,210       4,119  
D.R. Horton, Inc.
     111,397       1,291  
Eastman Kodak Co.
     50,321       149  
Fortune Brands, Inc.
     66,628       2,637  
Garmin Ltd.
     31,686       876  
Hanesbrands, Inc. *
     18,100       360  
Harman International Industries, Inc.
     28,097       693  
Hasbro, Inc.
     54,625       1,448  
Ingersoll-Rand plc
     138,379       3,996  
KB HOME
     28,176       470  
Leggett & Platt, Inc.
     72,044       1,250  
Lennar Corp., Class A
     46,575       551  
M.D.C. Holdings, Inc.
     14,679       517  
Mattel, Inc.
     157,197       2,764  
Mohawk Industries, Inc. *
     24,839       1,281  
Newell Rubbermaid, Inc.
     116,426       1,498  
NIKE, Inc., Class B
     162,768       9,219  
NVR, Inc. *
     2,298       1,381  
Polo Ralph Lauren Corp.
     26,495       1,671  
Pulte Homes, Inc.
     94,712       1,077  
Snap-on, Inc.
     27,350       975  
The Black & Decker Corp.
     25,880       973  
The Stanley Works
     32,594       1,309  
Toll Brothers, Inc. *
     54,500       1,066  
Tupperware Brands Corp.
     23,000       784  
VF Corp.
     39,182       2,535  
Whirlpool Corp.
     34,815       1,988  
 
                
 
             47,451  
Consumer Services 1.8%
                
Apollo Group, Inc., Class A *
     46,171       3,188  

2

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Brinker International, Inc.
     44,600       742  
Burger King Holdings, Inc.
     22,500       383  
Career Education Corp. *
     31,000       710  
Carnival Corp.
     189,260       5,297  
Chipotle Mexican Grill, Inc., Class A *
     12,000       1,126  
Choice Hotels International, Inc.
     5,500       153  
Corinthian Colleges, Inc. *
     38,000       587  
Darden Restaurants, Inc.
     62,765       2,033  
DeVry, Inc.
     27,000       1,343  
H&R Block, Inc.
     130,798       2,183  
International Game Technology
     132,026       2,607  
International Speedway Corp., Class A
     10,469       268  
ITT Educational Services, Inc. *
     13,301       1,295  
Las Vegas Sands Corp. *
     99,663       932  
Marriott International, Inc., Class A
     130,536       2,812  
McDonald’s Corp.
     462,636       25,473  
MGM MIRAGE *
     55,987       405  
Panera Bread Co., Class A *
     15,000       824  
Penn National Gaming, Inc. *
     29,860       947  
Royal Caribbean Cruises Ltd.
     55,091       800  
Scientific Games Corp., Class A *
     19,143       345  
Service Corp. International
     118,400       748  
Starbucks Corp. *
     315,627       5,586  
Starwood Hotels & Resorts Worldwide, Inc.
     83,442       1,970  
Strayer Education, Inc.
     5,000       1,062  
Weight Watchers International, Inc.
     4,329       121  
Wendy’s/Arby’s Group, Inc., Class A
     150,000       687  
Wyndham Worldwide Corp.
     66,517       928  
Wynn Resorts Ltd. *
     31,642       1,619  
Yum! Brands, Inc.
     196,476       6,967  
 
                
 
             74,141  
Diversified Financials 6.8%
                
Affiliated Managers Group, Inc. *
     15,459       1,021  
AllianceBernstein Holding L.P.
     35,189       726  
American Express Co.
     503,577       14,266  
Ameriprise Financial, Inc.
     99,857       2,776  
Bank of America Corp.
     3,391,741       50,164  
Bank of New York Mellon Corp.
     491,096       13,427  
Blackrock Inc.
     10,265       1,956  
Capital One Financial Corp.
     169,453       5,202  
CIT Group, Inc.
     88,368       77  
Citigroup, Inc.
     2,361,662       7,486  
CME Group, Inc.
     28,776       8,024  
Discover Financial Services
     201,824       2,398  
Eaton Vance Corp.
     50,384       1,442  
Federated Investors, Inc., Class B
     39,050       1,013  
Franklin Resources, Inc.
     66,586       5,905  
Greenhill & Co., Inc.
     3,900       294  
Intercontinentalexchange Inc. *
     30,589       2,877  
Invesco Ltd.
     172,090       3,399  
Janus Capital Group, Inc.
     91,800       1,254  
Jefferies Group, Inc. *
     50,652       1,158  
JPMorgan Chase & Co.
     1,592,978       61,569  
Knight Capital Group, Inc., Class A *
     20,000       371  
Lazard Ltd., Class A
     12,200       451  
Legg Mason, Inc.
     63,714       1,793  
Leucadia National Corp. *
     75,164       1,842  
Moody’s Corp.
     91,126       2,163  
Morgan Stanley
     452,048       12,883  
MSCI, Inc., Class A *
     1,950       54  
Northern Trust Corp.
     93,076       5,567  
NYSE Euronext
     112,400       3,029  
Och-Ziff Capital Management Group, Class A
     17,000       177  
Raymond James Financial, Inc.
     33,649       690  
SEI Investments Co.
     58,748       1,110  
SLM Corp. *
     190,324       1,692  
State Street Corp.
     187,350       9,424  
T. Rowe Price Group, Inc.
     112,950       5,276  
TD Ameritrade Holding Corp. *
     101,631       1,884  
The Blackstone Group L.P.
     223,000       2,511  
The Charles Schwab Corp. (a)
     403,065       7,203  
The Goldman Sachs Group, Inc.
     212,932       34,772  
The NASDAQ OMX Group, Inc. *
     62,137       1,313  
Waddell & Reed Financial, Inc., Class A
     30,000       851  
 
                
 
             281,490  
Energy 12.1%
                
Alpha Natural Resources, Inc. *
     28,000       933  
Anadarko Petroleum Corp.
     197,748       9,531  
Apache Corp.
     142,800       11,988  
Arch Coal, Inc.
     58,200       1,013  
Atwood Oceanics, Inc. *
     20,000       577  
Baker Hughes, Inc.
     135,707       5,496  
Bill Barrett Corp. *
     12,000       379  
BJ Services Co.
     132,346       1,877  
Boardwalk Pipeline Partners L.P.
     7,800       187  
BP Prudhoe Bay Royalty Trust
     8,500       579  
Buckeye Partners L.P.
     14,000       642  
Cabot Oil & Gas Corp.
     44,774       1,573  
Cameron International Corp. *
     100,200       3,129  
Chesapeake Energy Corp.
     221,597       4,751  
Chevron Corp.
     856,877       59,527  
Cimarex Energy Co.
     29,215       1,045  
CNX Gas Corp. *
     6,000       176  
Comstock Resources, Inc. *
     17,000       654  
Concho Resources, Inc. *
     10,800       332  
ConocoPhillips
     630,366       27,553  
CONSOL Energy, Inc.
     82,598       2,935  
Continental Resources, Inc. *
     3,800       129  
Denbury Resources, Inc. *
     105,884       1,758  
Devon Energy Corp.
     188,582       10,955  
Diamond Offshore Drilling, Inc.
     28,929       2,600  
Dresser-Rand Group, Inc. *
     30,000       873  
El Paso Corp.
     314,781       3,167  
El Paso Pipeline Partners L.P.
     9,150       178  
Enbridge Energy Partners L.P.
     23,100       1,077  
Encore Acquisition Co. *
     18,000       641  
Energy Transfer Equity L.P.
     3,350       98  

3

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Energy Transfer Partners L.P.
     40,400       1,864  
ENSCO International, Inc.
     67,928       2,574  
Enterprise GP Holdings L.P.
     4,000       118  
Enterprise Products Partners L.P.
     124,858       3,508  
EOG Resources, Inc.
     108,752       8,051  
EXCO Resources, Inc. *
     28,000       385  
Exterran Holdings, Inc. *
     25,599       445  
Exxon Mobil Corp.
     2,046,822       144,076  
FMC Technologies, Inc. *
     53,784       2,340  
Forest Oil Corp. *
     37,415       630  
Frontier Oil Corp.
     45,358       630  
Halliburton Co.
     382,788       8,456  
Helmerich & Payne, Inc.
     46,192       1,587  
Hess Corp.
     122,123       6,741  
Holly Corp.
     11,200       238  
Kinder Morgan Energy Partners L.P.
     68,700       3,647  
Kinder Morgan Management LLC *
     29,741       1,397  
Linn Energy L.L.C.
     28,000       627  
Magellan Midstream Partners L.P.
     30,000       1,158  
Marathon Oil Corp.
     300,796       9,701  
Massey Energy Co.
     37,501       998  
Murphy Oil Corp.
     82,544       4,804  
Nabors Industries Ltd. *
     129,088       2,197  
National-Oilwell Varco, Inc. *
     181,726       6,531  
Natural Resource Partners L.P.
     4,850       114  
Newfield Exploration Co. *
     53,066       2,087  
Noble Corp.
     115,750       3,919  
Noble Energy, Inc.
     76,161       4,655  
NuStar Energy L.P.
     16,895       950  
Occidental Petroleum Corp.
     343,316       24,492  
Oceaneering International, Inc. *
     19,000       967  
ONEOK Partners L.P.
     21,300       1,086  
Overseas Shipholding Group, Inc.
     6,000       206  
Patterson-UTI Energy, Inc.
     70,321       971  
Peabody Energy Corp.
     116,021       3,841  
Petrohawk Energy Corp. *
     93,000       2,258  
Pioneer Natural Resources Co.
     53,111       1,516  
Plains All American Pipeline L.P.
     43,032       2,081  
Plains Exploration & Production Co. *
     44,757       1,282  
Pride International, Inc. *
     72,494       1,817  
Quicksilver Resources, Inc. *
     35,890       411  
Range Resources Corp.
     65,628       3,046  
Rowan Cos., Inc.
     44,283       945  
SandRidge Energy, Inc. *
     43,000       402  
Schlumberger
     507,106       27,130  
SEACOR Holdings, Inc. *
     7,000       556  
Smith International, Inc.
     91,759       2,306  
Southern Union Co.
     49,962       968  
Southwestern Energy Co. *
     146,688       6,077  
Spectra Energy Corp.
     266,321       4,890  
St. Mary Land & Exploration Co.
     20,513       490  
Sunoco Logistics Partners L.P.
     3,500       207  
Sunoco, Inc.
     54,500       1,346  
Superior Energy Services, Inc. *
     35,000       581  
Teekay Corp.
     14,168       252  
TEPPCO Partners L.P.
     32,277       1,104  
Tesoro Corp.
     51,312       672  
The Williams Cos., Inc.
     259,221       4,326  
Tidewater, Inc.
     24,568       1,106  
Ultra Petroleum Corp. *
     63,612       2,807  
Unit Corp. *
     17,200       545  
Valero Energy Corp.
     223,020       4,014  
W&T Offshore, Inc.
     5,200       56  
Walter Energy, Inc.
     17,000       839  
Weatherford International Ltd. *
     302,496       5,675  
Whiting Petroleum Corp. *
     16,000       735  
XTO Energy, Inc.
     233,197       9,382  
 
                
 
             502,166  
Food & Staples Retailing 2.6%
                
BJ’s Wholesale Club, Inc. *
     23,200       774  
Costco Wholesale Corp.
     182,399       9,029  
CVS Caremark Corp.
     605,211       20,262  
Ruddick Corp.
     6,250       147  
Safeway, Inc.
     184,497       3,493  
SUPERVALU, Inc.
     76,356       1,132  
Sysco Corp.
     251,690       5,980  
The Kroger Co.
     276,513       5,912  
Wal-Mart Stores, Inc.
     932,427       46,509  
Walgreen Co.
     414,269       12,863  
Whole Foods Market, Inc. *
     56,216       1,360  
 
                
 
             107,461  
Food, Beverage & Tobacco 5.4%
                
Altria Group, Inc.
     876,965       15,373  
Archer-Daniels-Midland Co.
     269,985       8,132  
Brown-Forman Corp., Class B
     43,540       1,914  
Bunge Ltd.
     51,592       3,610  
Campbell Soup Co.
     88,658       2,751  
Central European Distribution Corp. *
     5,000       144  
Coca-Cola Enterprises, Inc.
     139,072       2,613  
ConAgra Foods, Inc.
     183,997       3,612  
Constellation Brands, Inc., Class A *
     76,932       1,051  
Corn Products International, Inc.
     32,500       910  
Dean Foods Co. *
     67,533       1,431  
Del Monte Foods Co.
     75,738       732  
Dr. Pepper Snapple Group, Inc. *
     90,000       2,215  
Flowers Foods, Inc.
     30,000       709  
Fresh Del Monte Produce, Inc. *
     4,500       96  
General Mills, Inc.
     139,000       8,188  
H.J. Heinz Co.
     130,698       5,027  
Hansen Natural Corp. *
     33,000       1,023  
Hormel Foods Corp.
     27,247       978  
Kellogg Co.
     102,731       4,880  
Kraft Foods, Inc., Class A
     624,564       17,700  
Lorillard, Inc.
     60,000       4,423  
McCormick & Co., Inc.
     52,754       1,700  
Molson Coors Brewing Co., Class B
     58,672       2,653  
PepsiAmericas, Inc.
     25,000       669  
PepsiCo, Inc.
     654,187       37,125  
Philip Morris International, Inc.
     827,665       38,569  
Ralcorp Holdings, Inc. *
     23,000       1,461  

4

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Reynolds American, Inc.
     71,684       3,119  
Sara Lee Corp.
     290,172       3,087  
Smithfield Foods, Inc. *
     46,235       626  
The Coca-Cola Co.
     833,854       41,559  
The Hershey Co.
     66,424       2,654  
The J.M. Smucker Co.
     48,601       2,432  
The Pepsi Bottling Group, Inc.
     60,932       2,069  
Tootsie Roll Industries, Inc.
     4,368       105  
Tyson Foods, Inc., Class A
     116,959       1,337  
 
                
 
             226,677  
Health Care Equipment & Services 4.3%
                
Aetna, Inc.
     190,477       5,137  
Allscripts-Misys Healthcare Solutions, Inc.
     9,700       167  
AMERIGROUP Corp. *
     22,000       543  
AmerisourceBergen Corp.
     129,020       2,544  
Baxter International, Inc.
     253,145       14,270  
Beckman Coulter, Inc.
     27,428       1,728  
Becton Dickinson & Co.
     101,565       6,617  
Boston Scientific Corp. *
     636,507       6,836  
C.R. Bard, Inc.
     40,600       2,987  
Cardinal Health, Inc.
     147,610       4,915  
Cerner Corp. *
     28,826       1,876  
CIGNA Corp.
     120,254       3,415  
Community Health Systems, Inc. *
     40,206       1,139  
Coventry Health Care, Inc. *
     65,962       1,517  
DaVita, Inc. *
     43,625       2,168  
DENTSPLY International, Inc.
     63,000       2,101  
Edwards Lifesciences Corp. *
     23,696       1,550  
Express Scripts, Inc. *
     103,562       7,254  
Gen-Probe, Inc. *
     22,670       842  
Haemonetics Corp. *
     9,600       567  
Health Net, Inc. *
     51,000       690  
Henry Schein, Inc. *
     35,919       1,846  
Hlth Corp. *
     47,979       704  
Hologic, Inc. *
     105,370       1,548  
Hospira, Inc. *
     67,640       2,599  
Humana, Inc. *
     74,191       2,437  
IDEXX Laboratories, Inc. *
     26,298       1,310  
Immucor, Inc. *
     28,000       467  
IMS Health, Inc.
     76,989       924  
Intuitive Surgical, Inc. *
     16,515       3,754  
Inverness Medical Innovations, Inc. *
     28,000       942  
Kinetic Concepts, Inc. *
     25,492       806  
Laboratory Corp. of America Holdings *
     46,622       3,133  
Lincare Holdings, Inc. *
     33,050       865  
Magellan Health Services, Inc. *
     16,000       518  
Masimo Corp. *
     16,000       391  
McKesson Corp.
     116,047       5,936  
Medco Health Solutions, Inc. *
     202,886       10,725  
MEDNAX, Inc. *
     20,354       943  
Medtronic, Inc.
     467,568       16,561  
Omnicare, Inc.
     43,433       1,037  
Owens & Minor, Inc.
     18,000       797  
Patterson Cos., Inc. *
     38,800       984  
Psychiatric Solutions, Inc. *
     14,000       378  
Quest Diagnostics, Inc.
     65,847       3,597  
ResMed, Inc. *
     26,708       1,095  
St. Jude Medical, Inc. *
     144,955       5,466  
STERIS Corp.
     20,000       562  
Stryker Corp.
     100,854       3,921  
Teleflex, Inc.
     16,746       803  
Thoratec Corp. *
     22,000       553  
UnitedHealth Group, Inc.
     498,612       13,991  
Universal Health Services, Inc., Class B
     19,537       1,087  
Varian Medical Systems, Inc. *
     55,271       1,949  
VCA Antech, Inc. *
     37,554       961  
WellPoint, Inc. *
     204,623       10,771  
Zimmer Holdings, Inc. *
     92,712       4,320  
 
                
 
             177,544  
Household & Personal Products 2.7%
                
Alberto-Culver Co.
     37,750       967  
Avon Products, Inc.
     182,336       5,904  
Church & Dwight Co., Inc.
     28,997       1,710  
Colgate-Palmolive Co.
     208,927       15,135  
Energizer Holdings, Inc. *
     25,100       1,608  
Herbalife Ltd.
     21,509       740  
Kimberly-Clark Corp.
     175,084       10,234  
NBTY, Inc. *
     26,200       948  
The Clorox Co.
     59,025       3,601  
The Estee Lauder Cos., Inc., Class A
     50,854       1,853  
The Procter & Gamble Co.
     1,221,419       67,801  
 
                
 
             110,501  
Insurance 3.5%
                
Aflac, Inc.
     202,613       7,671  
Alleghany Corp. *
     2,097       567  
Allied World Assurance Co. Holdings Ltd.
     15,000       652  
American Financial Group, Inc.
     40,405       985  
American International Group, Inc.
     42,176       554  
American National Insurance Co.
     5,137       406  
Aon Corp.
     116,463       4,594  
Arch Capital Group Ltd. *
     12,000       746  
Arthur J. Gallagher & Co.
     35,720       818  
Aspen Insurance Holdings Ltd.
     7,000       174  
Assurant, Inc.
     51,892       1,324  
Axis Capital Holdings Ltd.
     48,462       1,379  
Berkshire Hathaway, Inc., Class A *
     273       26,481  
Brown & Brown, Inc.
     53,376       1,024  
Cincinnati Financial Corp.
     74,417       1,797  
CNA Financial Corp.
     3,850       66  
Endurance Specialty Holdings Ltd.
     7,253       242  
Erie Indemnity Co., Class A
     18,085       677  
Everest Re Group Ltd.
     28,420       2,280  
Fidelity National Financial, Inc., Class A
     96,369       1,383  
First American Corp.
     42,560       1,258  
Genworth Financial, Inc., Class A
     179,539       1,239  
Hanover Insurance Group, Inc.
     26,400       1,038  
HCC Insurance Holdings, Inc.
     52,357       1,314  

5

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
IPC Holdings Ltd.
     7,650       221  
Lincoln National Corp.
     118,059       2,502  
Loews Corp.
     140,958       4,232  
Markel Corp. *
     3,431       1,083  
Marsh & McLennan Cos., Inc.
     221,720       4,528  
MBIA, Inc. *
     30,234       127  
Mercury General Corp.
     14,435       506  
MetLife, Inc.
     349,544       11,867  
Montpelier Re Holdings Ltd.
     16,000       251  
Odyssey Re Holdings Corp.
     12,000       554  
Old Republic International Corp.
     93,909       971  
PartnerRe Ltd.
     23,969       1,644  
Platinum Underwriters Holdings Ltd.
     6,400       216  
Principal Financial Group, Inc.
     116,909       2,771  
ProAssurance Corp. *
     14,000       711  
Prudential Financial, Inc.
     188,497       8,345  
Reinsurance Group of America, Inc.
     27,310       1,133  
RenaissanceRe Holdings Ltd.
     26,407       1,327  
StanCorp Financial Group, Inc.
     24,842       855  
The Allstate Corp.
     235,698       6,343  
The Chubb Corp.
     153,492       7,088  
The Hartford Financial Services Group, Inc.
     163,795       2,701  
The Progressive Corp. *
     294,442       4,587  
The Travelers Cos., Inc.
     248,747       10,714  
Torchmark Corp.
     45,077       1,761  
Transatlantic Holdings, Inc.
     11,745       556  
Unum Group
     158,014       2,966  
Validus Holdings Ltd.
     33,000       749  
W. R. Berkley Corp.
     67,125       1,559  
Wesco Financial Corp.
     519       158  
White Mountains Insurance Group Ltd.
     3,213       829  
XL Capital Ltd., Class A
     123,967       1,745  
 
                
 
             144,269  
Materials 3.7%
                
Air Products & Chemicals, Inc.
     90,378       6,742  
Airgas, Inc.
     36,451       1,625  
AK Steel Holding Corp.
     59,000       1,161  
Albemarle Corp.
     36,900       1,096  
Alcoa, Inc.
     431,520       5,075  
Allegheny Technologies, Inc.
     43,752       1,185  
AptarGroup, Inc.
     34,000       1,187  
Ball Corp.
     42,788       2,069  
Bemis Co., Inc.
     48,449       1,275  
Cabot Corp.
     14,816       271  
Celanese Corp., Series A
     58,243       1,497  
CF Industries Holdings, Inc.
     19,000       1,500  
Cliffs Natural Resources, Inc.
     38,000       1,041  
Commercial Metals Co.
     51,294       848  
Compass Minerals International, Inc.
     11,000       585  
Crown Holdings, Inc. *
     71,376       1,792  
Cytec Industries, Inc.
     14,600       366  
E.I. du Pont de Nemours & Co.
     381,357       11,795  
Eastman Chemical Co.
     33,091       1,643  
Ecolab, Inc.
     74,968       3,112  
FMC Corp.
     32,552       1,583  
Freeport-McMoRan Copper & Gold, Inc.
     173,765       10,478  
Greif, Inc., Class A
     11,000       565  
International Flavors & Fragrances, Inc.
     36,208       1,277  
International Paper Co.
     193,607       3,642  
Intrepid Potash, Inc. *
     6,450       163  
Martin Marietta Materials, Inc.
     16,849       1,450  
MeadWestvaco Corp.
     78,583       1,532  
Monsanto Co.
     228,334       19,180  
Nalco Holding Co.
     41,943       742  
Newmont Mining Corp.
     191,508       7,919  
Nucor Corp.
     135,676       6,034  
Olin Corp.
     15,000       207  
Owens-Illinois, Inc. *
     71,577       2,429  
Packaging Corp. of America
     38,030       748  
Pactiv Corp. *
     61,660       1,553  
PPG Industries, Inc.
     71,706       3,944  
Praxair, Inc.
     130,228       10,181  
Reliance Steel & Aluminum Co.
     27,322       921  
Royal Gold, Inc.
     11,000       452  
RPM International, Inc.
     30,000       479  
Schnitzer Steel Industries, Inc., Class A
     7,000       376  
Sealed Air Corp.
     73,902       1,359  
Sigma-Aldrich Corp.
     53,308       2,705  
Silgan Holdings, Inc.
     5,500       276  
Sonoco Products Co.
     48,170       1,276  
Southern Copper Corp.
     74,946       1,931  
Steel Dynamics, Inc.
     78,000       1,276  
Terra Industries, Inc.
     40,000       1,166  
Terra Nitrogen Co., L.P.
     7,000       778  
The Dow Chemical Co.
     411,156       8,704  
The Lubrizol Corp.
     32,160       1,863  
The Mosaic Co.
     70,095       3,655  
The Scotts Miracle-Gro Co., Class A
     14,668       573  
The Valspar Corp.
     44,946       1,138  
Titanium Metals Corp.
     18,585       156  
United States Steel Corp.
     53,768       2,137  
Valhi, Inc.
     1,500       20  
Vulcan Materials Co.
     44,425       2,109  
Weyerhaeuser Co.
     91,815       3,217  
 
                
 
             156,059  
Media 2.7%
                
Cablevision Systems Corp., Class A
     106,010       2,170  
CBS Corp., Class B
     310,205       2,541  
Clear Channel Outdoor Holdings, Inc., Class A *
     4,700       27  
Comcast Corp., Class A
     1,203,703       17,887  
Discovery Communications, Inc., Series A *
     63,498       1,556  
DISH Network Corp., Class A *
     95,272       1,615  
DreamWorks Animation SKG, Inc., Class A *
     27,000       851  

6

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Gannett Co., Inc.
     62,954       441  
Interactive Data Corp.
     5,900       134  
John Wiley & Sons, Inc., Class A
     20,480       653  
Lamar Advertising Co., Class A *
     10,870       229  
Liberty Global, Inc., Series A *
     122,266       2,561  
Liberty Media Corp. — Entertainment, Series A *
     220,244       6,160  
Marvel Entertainment, Inc. *
     17,000       673  
Morningstar, Inc. *
     2,650       117  
News Corp., Class A
     972,728       10,048  
Omnicom Group, Inc.
     135,088       4,593  
Regal Entertainment Group, Class A
     35,000       435  
Scripps Networks Interactive, Class A
     32,000       1,033  
The DIRECTV Group, Inc. *
     223,745       5,795  
The Interpublic Group of Cos., Inc. *
     192,364       1,002  
The McGraw-Hill Cos., Inc.
     136,536       4,280  
The New York Times Co., Class A
     19,525       154  
The Walt Disney Co.
     773,452       19,429  
The Washington Post Co., Class B
     2,526       1,140  
Time Warner Cable, Inc.
     149,336       4,937  
Time Warner, Inc.
     499,500       13,317  
Viacom, Inc., Class B *
     260,346       6,030  
Virgin Media, Inc.
     108,000       1,129  
 
                
 
             110,937  
Pharmaceuticals, Biotechnology & Life Sciences 9.1%
                
Abbott Laboratories
     642,846       28,922  
Abraxis BioScience *
     1,050       32  
Alexion Pharmaceuticals, Inc. *
     34,500       1,520  
Allergan, Inc.
     130,362       6,965  
Amgen, Inc. *
     429,560       26,766  
Amylin Pharmaceuticals, Inc. *
     33,747       496  
Bio-Rad Laboratories, Inc., Class A *
     5,000       387  
Biogen Idec, Inc. *
     123,955       5,894  
BioMarin Pharmaceutical, Inc. *
     35,000       574  
Bristol-Myers Squibb Co.
     829,539       18,034  
Celgene Corp. *
     192,546       10,967  
Cephalon, Inc. *
     27,000       1,584  
Charles River Laboratories International, Inc. *
     31,015       1,026  
Covance, Inc. *
     24,300       1,340  
Covidien plc
     211,648       8,002  
Eli Lilly & Co.
     424,771       14,820  
Endo Pharmaceuticals Holdings, Inc. *
     50,528       1,062  
Forest Laboratories, Inc. *
     130,046       3,359  
Genzyme Corp. *
     113,331       5,881  
Gilead Sciences, Inc. *
     378,112       18,501  
Illumina, Inc. *
     48,000       1,735  
Isis Pharmaceuticals, Inc. *
     44,000       804  
Johnson & Johnson
     1,152,267       70,162  
King Pharmaceuticals, Inc. *
     104,766       950  
Life Technologies Corp. *
     75,806       3,452  
Merck & Co., Inc.
     877,485       26,333  
Mettler-Toledo International, Inc. *
     15,000       1,261  
Millipore Corp. *
     22,874       1,592  
Mylan, Inc. *
     113,500       1,497  
Myriad Genetics, Inc. *
     37,900       1,039  
Onyx Pharmaceuticals, Inc. *
     20,000       718  
OSI Pharmaceuticals, Inc. *
     26,000       879  
PerkinElmer, Inc.
     41,900       739  
Perrigo Co.
     28,000       760  
Pfizer, Inc.
     2,806,310       44,705  
Pharmaceutical Product Development, Inc.
     47,746       992  
Regeneron Pharmaceuticals, Inc. *
     30,000       643  
Schering-Plough Corp.
     680,116       18,030  
Sepracor, Inc. *
     23,069       400  
Sequenom, Inc. *
     15,000       86  
Techne Corp.
     14,163       904  
Thermo Fisher Scientific, Inc. *
     176,698       8,001  
United Therapeutics Corp. *
     10,000       926  
Valeant Pharmaceuticals International *
     31,600       815  
Vertex Pharmaceuticals, Inc. *
     66,812       2,406  
Warner Chilcott Ltd., Class A *
     51,500       778  
Waters Corp. *
     44,100       2,216  
Watson Pharmaceuticals, Inc. *
     44,300       1,539  
Wyeth
     555,233       25,846  
 
                
 
             376,340  
Real Estate 1.5%
                
Alexandria Real Estate Equities, Inc.
     13,000       495  
AMB Property Corp.
     45,825       908  
Annaly Capital Management, Inc.
     229,000       3,859  
Apartment Investment & Management Co., Class A
     63,218       593  
AvalonBay Communities, Inc.
     35,849       2,086  
Boston Properties, Inc.
     55,105       2,915  
BRE Properties, Inc.
     23,424       556  
Brookfield Properties Corp.
     93,750       887  
Camden Property Trust
     26,264       775  
CB Richard Ellis Group, Inc., Class A *
     76,737       836  
Digital Realty Trust, Inc.
     28,000       1,135  
Douglas Emmett, Inc.
     37,000       376  
Duke Realty Corp.
     63,437       602  
Equity Residential
     122,072       2,930  
Essex Property Trust, Inc.
     10,517       684  
Federal Realty Investment Trust
     24,196       1,380  
HCP, Inc.
     103,280       2,661  
Health Care REIT, Inc.
     43,021       1,723  
Highwoods Properties, Inc.
     26,000       666  
Hospitality Properties Trust
     33,481       529  
Host Hotels & Resorts, Inc.
     241,534       2,193  
Kimco Realty Corp.
     149,831       1,474  
Liberty Property Trust
     40,104       1,114  
Mack-Cali Realty Corp.
     28,347       791  
Nationwide Health Properties, Inc.
     40,000       1,161  
Plum Creek Timber Co., Inc.
     76,198       2,384  
ProLogis
     203,761       1,791  

7

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Public Storage
     54,709       3,970  
Rayonier, Inc.
     34,923       1,362  
Realty Income Corp.
     46,000       1,085  
Regency Centers Corp.
     32,082       1,029  
Senior Housing Properties Trust
     33,000       616  
Simon Property Group, Inc.
     112,067       6,244  
SL Green Realty Corp.
     21,401       552  
Taubman Centers, Inc.
     24,000       639  
The Macerich Co.
     32,525       640  
The St. Joe Co. *
     34,800       980  
UDR, Inc.
     67,862       709  
Ventas, Inc.
     55,419       1,956  
Vornado Realty Trust
     62,136       3,170  
Weingarten Realty Investors
     35,002       540  
 
                
 
             60,996  
Retailing 3.4%
                
Aaron’s, Inc.
     25,000       687  
Abercrombie & Fitch Co., Class A
     34,819       995  
Advance Auto Parts, Inc.
     40,202       1,858  
Aeropostale, Inc. *
     26,000       946  
Amazon.com, Inc. *
     134,841       11,564  
American Eagle Outfitters, Inc.
     91,085       1,311  
AutoNation, Inc. *
     34,466       713  
AutoZone, Inc. *
     15,833       2,431  
Barnes & Noble, Inc.
     8,318       191  
Bed Bath & Beyond, Inc. *
     111,820       3,886  
Best Buy Co., Inc.
     146,026       5,457  
Big Lots, Inc. *
     37,200       857  
CarMax, Inc. *
     91,100       1,469  
Dick’s Sporting Goods, Inc. *
     28,000       556  
Dollar Tree, Inc. *
     40,308       1,859  
Expedia, Inc. *
     99,109       2,052  
Family Dollar Stores, Inc.
     60,200       1,891  
Foot Locker, Inc.
     70,109       777  
GameStop Corp., Class A *
     70,300       1,539  
Genuine Parts Co.
     68,030       2,410  
Guess?, Inc.
     17,000       494  
Home Depot, Inc.
     708,115       18,368  
J.C. Penney Co., Inc.
     100,422       3,028  
Kohl’s Corp. *
     130,765       6,349  
Liberty Media Corp. — Interactive Class A *
     226,108       1,506  
Limited Brands, Inc.
     119,023       1,540  
LKQ Corp. *
     40,000       718  
Lowe’s Cos., Inc.
     615,696       13,828  
Macy’s, Inc.
     186,476       2,594  
Netflix, Inc. *
     21,000       923  
Nordstrom, Inc.
     72,700       1,922  
O’Reilly Automotive, Inc. *
     57,666       2,345  
PetSmart, Inc.
     57,695       1,291  
Priceline.com, Inc. *
     15,000       1,944  
RadioShack Corp.
     55,940       868  
Ross Stores, Inc.
     57,756       2,546  
Sears Holdings Corp. *
     25,394       1,685  
Staples, Inc.
     302,370       6,356  
Target Corp.
     314,342       13,712  
The Gap, Inc.
     201,275       3,285  
The Sherwin-Williams Co.
     42,390       2,448  
The TJX Cos., Inc.
     177,115       6,417  
Tiffany & Co.
     56,373       1,682  
Urban Outfitters, Inc. *
     33,496       805  
 
                
 
             140,103  
Semiconductors & Semiconductor Equipment 2.6%
                
Advanced Micro Devices, Inc. *
     196,331       719  
Altera Corp.
     132,869       2,483  
Analog Devices, Inc.
     127,274       3,484  
Applied Materials, Inc.
     569,389       7,858  
Atmel Corp. *
     185,000       771  
Broadcom Corp., Class A *
     183,825       5,189  
Cree, Inc. *
     30,000       962  
Intel Corp.
     2,325,780       44,771  
Intersil Corp., Class A
     60,867       875  
KLA-Tencor Corp.
     77,538       2,472  
Lam Research Corp. *
     56,300       1,692  
Linear Technology Corp.
     97,366       2,616  
LSI Corp. *
     287,898       1,491  
Marvell Technology Group Ltd. *
     184,362       2,459  
Maxim Integrated Products, Inc.
     100,000       1,772  
MEMC Electronic Materials, Inc. *
     101,977       1,797  
Microchip Technology, Inc.
     82,266       2,215  
Micron Technology, Inc. *
     274,000       1,751  
National Semiconductor Corp.
     91,458       1,377  
Novellus Systems, Inc. *
     50,295       984  
NVIDIA Corp. *
     240,699       3,112  
ON Semiconductor Corp. *
     105,000       767  
Rambus, Inc. *
     20,964       355  
Silicon Laboratories, Inc. *
     12,236       524  
Texas Instruments, Inc.
     533,675       12,835  
Varian Semiconductor Equipment Associates, Inc. *
     35,200       1,128  
Xilinx, Inc.
     125,105       2,714  
 
                
 
             109,173  
Software & Services 7.1%
                
Accenture Ltd., Class A
     258,392       9,062  
Activision Blizzard, Inc. *
     231,338       2,649  
Adobe Systems, Inc. *
     223,613       7,250  
Affiliated Computer Services, Inc., Class A *
     43,367       2,056  
Akamai Technologies, Inc. *
     57,909       952  
Alliance Data Systems Corp. *
     28,071       1,432  
ANSYS, Inc. *
     28,000       875  
Autodesk, Inc. *
     102,372       2,233  
Automatic Data Processing, Inc.
     213,951       7,970  
BMC Software, Inc. *
     81,712       2,781  
Broadridge Financial Solutions, Inc.
     50,000       863  
CA, Inc.
     172,681       3,650  
CACI International, Inc., Class A *
     13,000       601  
Cadence Design Systems, Inc. *
     116,687       688  
Citrix Systems, Inc. *
     81,400       2,898  
Cognizant Technology Solutions Corp., Class A *
     118,766       3,514  
Computer Sciences Corp. *
     67,631       3,258  
Compuware Corp. *
     120,464       883  
Concur Technologies, Inc. *
     9,150       316  

8

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
DST Systems, Inc. *
     18,980       841  
eBay, Inc. *
     455,970       9,689  
Electronic Arts, Inc. *
     143,781       3,087  
Equinix, Inc. *
     12,000       981  
FactSet Research Systems, Inc.
     19,000       1,077  
Fidelity National Information Services, Inc.
     75,470       1,767  
Fiserv, Inc. *
     67,989       3,223  
Gartner, Inc. *
     22,500       385  
Genpact Ltd. *
     8,750       123  
Global Payments, Inc.
     31,938       1,351  
Google, Inc., Class A *
     99,846       44,237  
Hewitt Associates, Inc., Class A *
     40,000       1,197  
IAC/InterActiveCorp *
     20,730       382  
Intuit, Inc. *
     138,244       4,106  
Jack Henry & Associates, Inc.
     34,000       730  
Lender Processing Services, Inc.
     25,000       854  
ManTech International Corp., Class A *
     7,500       400  
MasterCard, Inc., Class A
     31,000       6,015  
McAfee, Inc. *
     68,929       3,073  
Metavante Technologies, Inc. *
     39,510       1,217  
MICROS Systems, Inc. *
     38,000       1,041  
Microsoft Corp.
     3,185,938       74,933  
NeuStar, Inc., Class A *
     30,000       680  
Novell, Inc. *
     80,024       367  
Nuance Communications, Inc. *
     60,000       792  
Oracle Corp.
     1,597,710       35,357  
Parametric Technology Corp. *
     40,000       516  
Paychex, Inc.
     140,828       3,732  
Perot Systems Corp., Class A *
     45,000       719  
Red Hat, Inc. *
     89,183       2,036  
Rovi Corp. *
     18,000       471  
SAIC, Inc. *
     90,000       1,628  
Salesforce Com Inc *
     33,321       1,444  
Solera Holdings, Inc. *
     20,000       539  
Sybase, Inc. *
     37,000       1,325  
Symantec Corp. *
     351,424       5,247  
Synopsys, Inc. *
     68,600       1,371  
Total System Services, Inc.
     91,500       1,343  
VeriSign, Inc. *
     76,905       1,572  
Visa, Inc., Class A
     140,000       9,164  
VMware, Inc., Class A *
     17,000       548  
Western Union Co.
     299,340       5,232  
Yahoo!, Inc. *
     590,079       8,450  
 
                
 
             297,173  
Technology Hardware & Equipment 8.4%
                
Agilent Technologies, Inc. *
     148,231       3,442  
Amphenol Corp., Class A
     77,420       2,582  
Anixter International, Inc. *
     10,000       342  
Apple Computer, Inc. *
     373,114       60,963  
Arrow Electronics, Inc. *
     52,100       1,343  
Avnet, Inc. *
     59,546       1,453  
AVX Corp.
     8,050       88  
Brocade Communications Systems, Inc. *
     168,000       1,320  
Cisco Systems, Inc. *
     2,417,215       53,203  
CommScope, Inc. *
     31,100       796  
Corning, Inc.
     651,763       11,080  
Dell, Inc. *
     731,249       9,784  
Diebold, Inc.
     25,318       702  
Dolby Laboratories, Inc., Class A *
     15,000       624  
EchoStar Corp., Class A *
     6,354       94  
EMC Corp. *
     843,724       12,706  
F5 Networks, Inc. *
     32,000       1,188  
FLIR Systems, Inc. *
     50,000       1,074  
Harris Corp.
     59,296       1,857  
Hewlett-Packard Co.
     1,007,168       43,610  
Ingram Micro, Inc., Class A *
     66,051       1,111  
International Business Machines Corp.
     557,440       65,739  
Itron, Inc. *
     10,000       522  
Jabil Circuit, Inc.
     74,100       679  
Juniper Networks, Inc. *
     220,994       5,775  
Lexmark International, Inc., Class A *
     30,859       447  
Molex, Inc.
     41,121       730  
Motorola, Inc.
     962,188       6,889  
National Instruments Corp.
     20,000       504  
NCR Corp. *
     78,044       1,010  
NetApp, Inc. *
     143,400       3,221  
Polycom, Inc. *
     38,000       903  
QLogic Corp. *
     43,400       566  
Qualcomm, Inc.
     687,378       31,764  
SanDisk Corp. *
     101,858       1,815  
Seagate Technology
     216,837       2,611  
Sun Microsystems, Inc. *
     306,984       2,815  
Tellabs, Inc. *
     179,675       1,042  
Teradata Corp. *
     60,544       1,488  
Trimble Navigation Ltd. *
     54,500       1,292  
Tyco Electronics Ltd.
     195,248       4,192  
Western Digital Corp. *
     99,512       3,010  
Xerox Corp.
     371,130       3,040  
Zebra Technologies Corp., Class A *
     27,525       673  
 
                
 
             350,089  
Telecommunication Services 3.2%
                
American Tower Corp., Class A *
     170,789       5,822  
AT&T, Inc.
     2,438,877       63,972  
CenturyTel, Inc.
     134,671       4,227  
Clearwire Corp., Class A *
     15,250       124  
Crown Castle International Corp. *
     88,627       2,547  
Frontier Communications Corp.
     149,758       1,048  
Leap Wireless International, Inc. *
     10,680       256  
Level 3 Communications, Inc. *
     669,140       823  
MetroPCS Communications, Inc. *
     98,000       1,161  
NII Holdings, Inc. *
     65,841       1,516  
Qwest Communications International, Inc.
     556,635       2,149  
SBA Communications Corp., Class A *
     40,000       1,044  
Sprint Nextel Corp. *
     1,243,057       4,972  
Telephone & Data Systems, Inc.
     48,301       1,243  
tw telecom, Inc. *
     50,000       495  
United States Cellular Corp. *
     2,700       97  
Verizon Communications, Inc.
     1,202,937       38,578  

9

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
 
Windstream Corp.
     180,848       1,586  
 
                
 
             131,660  
Transportation 2.0%
                
AMR Corp. *
     111,651       597  
Burlington Northern Santa Fe Corp.
     120,081       9,437  
C.H. Robinson Worldwide, Inc.
     73,448       4,005  
Con-way, Inc.
     21,608       984  
Continental Airlines, Inc., Class B *
     45,400       507  
CSX Corp.
     170,242       6,830  
Delta Air Lines, Inc. *
     260,000       1,802  
Expeditors International Washington Inc.
     84,098       2,854  
FedEx Corp.
     133,028       9,025  
Heartland Express, Inc.
     9,050       139  
Hertz Global Holdings, Inc. *
     21,600       204  
J.B. Hunt Transport Services, Inc.
     20,591       576  
JetBlue Airways Corp. *
     100,000       511  
Kansas City Southern *
     33,000       670  
Kirby Corp. *
     19,000       703  
Landstar System, Inc.
     26,030       955  
Norfolk Southern Corp.
     158,706       6,864  
Ryder System, Inc.
     28,064       986  
Southwest Airlines Co.
     329,088       2,583  
UAL Corp. *
     34,267       141  
Union Pacific Corp
     213,382       12,274  
United Parcel Service, Inc., Class B
     416,975       22,404  
UTI Worldwide, Inc. *
     9,500       120  
 
                
 
             85,171  
Utilities 4.2%
                
AGL Resources, Inc.
     34,400       1,157  
Allegheny Energy, Inc.
     75,253       1,897  
Alliant Energy Corp.
     53,900       1,410  
Ameren Corp.
     81,485       2,072  
American Electric Power Co., Inc.
     175,931       5,447  
American Water Works Co., Inc.
     25,000       493  
Amerigas Partners L.P.
     6,900       248  
Aqua America, Inc.
     43,134       779  
Atmos Energy Corp.
     32,818       891  
Calpine Corp. *
     180,000       2,318  
CenterPoint Energy, Inc.
     148,411       1,788  
Cleco Corp.
     20,000       474  
CMS Energy Corp.
     83,533       1,081  
Consolidated Edison, Inc.
     118,406       4,660  
Constellation Energy Group, Inc.
     78,441       2,251  
Dominion Resources, Inc.
     248,208       8,389  
DPL, Inc.
     50,061       1,199  
DTE Energy Co.
     72,997       2,515  
Duke Energy Corp.
     540,293       8,364  
Dynegy, Inc., Class A *
     175,199       352  
Edison International
     139,854       4,520  
Energen Corp.
     33,196       1,372  
Entergy Corp.
     80,522       6,468  
EQT Corp.
     56,400       2,165  
Exelon Corp. *
     274,556       13,964  
FirstEnergy Corp.
     127,970       5,272  
FPL Group, Inc.
     172,208       9,759  
Great Plains Energy, Inc.
     39,000       621  
Hawaiian Electric Industries, Inc.
     37,748       675  
IDACORP, Inc.
     15,000       416  
Integrys Energy Group, Inc.
     34,155       1,154  
ITC Holdings Corp.
     17,000       811  
MDU Resources Group, Inc.
     83,917       1,689  
Mirant Corp. *
     72,702       1,313  
National Fuel Gas Co.
     27,047       1,098  
New Jersey Resources Corp.
     18,000       695  
Nicor, Inc.
     18,000       656  
NiSource, Inc.
     126,980       1,637  
Northeast Utilities
     71,514       1,646  
NRG Energy, Inc. *
     102,930       2,801  
NSTAR
     49,512       1,589  
NV Energy, Inc.
     100,000       1,150  
OGE Energy Corp.
     29,180       878  
ONEOK, Inc.
     48,062       1,591  
Ormat Technologies, Inc.
     2,900       115  
Pepco Holdings, Inc.
     89,174       1,282  
PG&E Corp.
     154,337       6,231  
Piedmont Natural Gas Co., Inc.
     27,000       665  
Pinnacle West Capital Corp.
     36,487       1,166  
PPL Corp.
     160,961       5,439  
Progress Energy, Inc.
     119,185       4,701  
Public Service Enterprise Group, Inc.
     216,472       7,024  
Questar Corp.
     77,720       2,570  
RRI Energy, Inc. *
     157,397       842  
SCANA Corp.
     54,031       1,910  
Sempra Energy
     105,378       5,525  
Southern Co.
     328,518       10,315  
Spectra Energy Partners L.P.
     2,300       52  
TECO Energy, Inc.
     62,117       838  
The AES Corp. *
     292,202       3,737  
UGI Corp.
     41,148       1,088  
Vectren Corp.
     28,000       688  
Westar Energy, Inc.
     36,000       708  
WGL Holdings, Inc.
     21,000       695  
Wisconsin Energy Corp.
     51,618       2,218  
Xcel Energy, Inc.
     189,009       3,769  
 
                
 
             173,303  
 
                
Total Common Stock
(Cost $2,501,864)
             4,140,152  
 
                
End of Investments.
(All dollar amounts are x 1,000)
At 07/31/09 tax basis cost of the fund’s investments was $2,477,320 and the unrealized appreciation and depreciation were $1,961,871 and ($299,039), respectively, with a net unrealized appreciation of $1,662,832.
 
*   Non-income producing security.

10

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
 
(a)   Issuer is affiliated with the fund’s adviser.
 
REIT   – Real Estate Investment Trust
Various inputs are used on determining the value of the fund’s investments. SFAS No. 157 establishes a three-tier hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. These inputs are summarized in the three broad levels listed below:
  •   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. The fund does not adjust the quoted price for such investments, even in situations where the fund holds a large position and a sale could reasonably impact the quoted price.
 
  •   Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •   Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments). — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
                                 
    Quoted Prices            
    in Active   Significant        
    Markets for   Other   Significant    
    Identical   Observable   Unobservable    
    Assets   Inputs   Inputs    
Description   (Level 1)   (Level 2)   (Level 3)   Total*
 
Common Stock — (a)
   $ 4,140,152     $ —     $ —     $ 4,140,152  
 
Total
   $ 4,140,152     $ —     $ —     $ 4,140,152  
 
 
*   The fund had no Other Financial Instruments.
 
(a)   as categorized in Portfolio Holdings
REG46851JUL09 — 00

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Item 2. Controls and Procedures.
(a)   Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Randall W. Merk and Registrant’s Principal Financial Officer, George Pereira, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.
(b)   During Registrant’s last fiscal quarter, there have been no changes in Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting.
Item 3. Exhibits.
Separate certifications for Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Investments — Schwab 1000 Index Fund
         
By:
  /s/ Randall W. Merk
 
Randall W. Merk
Chief Executive Officer 		   
Date: September 23, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Randall W. Merk
 
Randall W. Merk
Chief Executive Officer 		   
Date: September 23, 2009
         
By:
  /s/ George Pereira
 
George Pereira
Principal Financial Officer 		   
Date: September 23, 2009