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

(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
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: August 31

Date of reporting period: September 30, 2009 – November 30, 2009

Item 1. Schedule of Investments.

Schwab Investments
Schwab Short-Term Bond Market Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	69.0	%	U.S. Government and Government Agencies		173,365		177,219
	6.0	%	Foreign Securities		15,035		15,484
	23.7	%	Corporate Bonds		56,581		60,909
	0.5	%	Other Investment Company		1,392		1,392
	0.1	%	Short-Term Investments		150		150
	99.3	%	Total Investments		246,523		255,154
	0.7	%	Other Assets and Liabilities, Net				1,790
	100.0	%	Net Assets				256,944

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
U.S. Government and Government Agencies 69.0% of net assets
U.S. Government Agency Guaranteed 3.0%
General Electric Capital Corp., (FDIC Insured)
3.00%, 12/09/11 (e)		1,000		1,042
JPMorgan Chase & Co., (FDIC Insured)
3.13%, 12/01/11 (e)		1,500		1,567
State Street Capital Trust III, (FDIC Insured)
2.15%, 04/30/12 (e)		3,000		3,077
The Goldman Sachs Group, Inc., (FDIC Insured)
3.25%, 06/15/12 (e)		1,000		1,053
Wells Fargo & Co., (FDIC Insured)
3.00%, 12/09/11 (e)		1,000		1,042
				7,781
U.S. Government Agency Securities 19.4%
Fannie Mae
6.25%, 02/01/11		500		528
3.63%, 08/15/11		4,000		4,203
1.75%, 08/10/12		4,500		4,573
1.88%, 10/29/12 (b)		2,000		2,011
2.63%, 11/20/14		4,000		4,077
Federal Farm Credit Bank
1.88%, 12/07/12		3,000		3,045
Federal Home Loan Bank
3.63%, 09/16/11		7,300		7,690
2.10%, 08/10/12 (b)		3,000		3,009
1.63%, 11/21/12		1,000		1,010
3.63%, 10/18/13		3,000		3,209
Freddie Mac
2.88%, 11/23/10		4,000		4,097
2.00%, 03/16/11 (b)		3,000		3,011
3.88%, 06/29/11		5,000		5,264
2.13%, 09/21/12		2,000		2,047
3.25%, 02/18/14 (b)		2,000		2,013
				49,787
U.S. Treasury Obligations 46.6%
U.S. Treasury Notes
1.50%, 10/31/10		4,725		4,780
0.88%, 12/31/10		11,500		11,575
1.00%, 08/31/11		1,700		1,714
4.63%, 10/31/11		20,000		21,541
0.75%, 11/30/11		350		351
1.38%, 05/15/12		14,400		14,581
1.88%, 06/15/12		6,000		6,151
1.50%, 07/15/12		6,300		6,399
1.75%, 08/15/12		1,750		1,787
1.38%, 10/15/12		8,800		8,885
1.38%, 11/15/12		5,750		5,797
2.75%, 10/31/13		3,550		3,717
2.25%, 05/31/14		2,500		2,551
2.63%, 06/30/14		9,250		9,582
2.63%, 07/31/14		4,810		4,977
2.38%, 08/31/14		4,475		4,573
2.38%, 09/30/14		5,100		5,207
2.38%, 10/31/14		3,850		3,924
2.13%, 11/30/14		1,550		1,559
				119,651
Total U.S. Government and Government Agencies (Cost $173,365)				177,219
Foreign Securities 6.0% of net assets
Foreign Agencies 1.7%
Canada 0.4%
Export Development Canada
1.75%, 09/24/12		1,000		1,012
Germany 0.8%
KFW Bankengruppe
2.00%, 01/17/12		2,000		2,042

1

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Mexico 0.2%
Petroleos Mexicanos
4.83%, 03/15/15 (b)		500		504
Republic of Korea 0.3%
Export-Import Bank of Korea
8.13%, 01/21/14		400		467
Korea Development Bank
8.00%, 01/23/14		400		466
				933
				4,491
Foreign Local Government 0.4%
Canada 0.4%
Province of Ontario Canada
3.50%, 07/15/13		1,000		1,054
Sovereign 1.6%
Canada 0.2%
Canada Government International Bond
2.38%, 09/10/14		500		506
Italy 1.0%
Republic of Italy
2.13%, 10/05/12		2,500		2,533
Mexico 0.4%
Mexico (United Mexican States)
5.88%, 02/15/14 (b)		1,000		1,093
				4,132
Supranational 2.3%
European Investment Bank
2.63%, 11/15/11		5,000		5,172
Inter-American Development Bank
3.00%, 04/22/14		611		635
				5,807
Total Foreign Securities (Cost $15,035)				15,484
Corporate Bonds 23.7% of net assets
Finance 10.3%
Banking 6.6%
American Express Bank FSB
5.50%, 04/16/13		1,000		1,074
Bank of America Corp.
4.88%, 01/15/13		500		522
7.38%, 05/15/14 (b)		300		337
Bank of New York Mellon Corp.
4.30%, 05/15/14		400		428
Barclays Bank PLC
5.20%, 07/10/14		300		322
BB&T Corp.
3.38%, 09/25/13		500		509
Bear Stearns & Co., Inc.
5.70%, 11/15/14		750		831
Citigroup, Inc.
6.50%, 01/18/11		1,000		1,045
5.25%, 02/27/12		750		785
5.50%, 04/11/13		500		517
Countrywide Financial Corp.
5.80%, 06/07/12		1,000		1,070
Credit Suisse USA, Inc.
3.45%, 07/02/12		1,000		1,042
Deutsche Bank AG
4.88%, 05/20/13		500		538
JPMorgan Chase & Co.
5.60%, 06/01/11		1,000		1,068
Morgan Stanley
6.75%, 04/15/11 (b)		500		533
5.75%, 08/31/12		1,000		1,084
4.75%, 04/01/14		550		560
PNC Funding Corp.
4.25%, 09/21/15		400		414
The Goldman Sachs Group, Inc.
6.60%, 01/15/12		1,000		1,095
5.45%, 11/01/12		500		544
US Bancorp
2.13%, 02/15/13		400		404
Wachovia Bank NA
4.80%, 11/01/14		1,000		1,037
Wells Fargo & Co.
4.88%, 01/12/11		500		520
Wells Fargo Bank NA
6.45%, 02/01/11		500		528
				16,807
Brokerage 0.4%
Jefferies Group, Inc.
7.75%, 03/15/12 (b)		1,000		1,086
Finance Company 1.9%
General Electric Capital Corp.
3.50%, 08/13/12		500		515
4.80%, 05/01/13		2,000		2,124
HSBC Finance Corp.
7.00%, 05/15/12		1,250		1,373
International Lease Finance Corp.
5.45%, 03/24/11		1,000		921
				4,933
Insurance 1.0%
Allstate Life Global Funding Trusts
5.38%, 04/30/13		300		324
Prudential Financial, Inc.
3.63%, 09/17/12		1,000		1,027
United Healthcare Corp.
5.25%, 03/15/11 (b)		1,000		1,042
				2,393

2

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Real Estate Investment Trust 0.4%
Simon Property Group, Inc.
6.75%, 05/15/14 (b)		1,000		1,097
				26,316
Industrial 11.6%
Basic Industry 0.6%
BHP Billiton Finance (USA) Ltd.
5.50%, 04/01/14		500		557
Praxair, Inc.
4.38%, 03/31/14 (b)		150		162
Rio Tinto Finance (USA) Ltd.
8.95%, 05/01/14 (b)		500		602
The Dow Chemical Co.
7.60%, 05/15/14 (b)		300		341
				1,662
Capital Goods 1.1%
Allied Waste North America, Inc.
6.13%, 02/15/14 (b)		400		413
General Electric Co.
5.00%, 02/01/13		1,000		1,072
John Deere Capital Corp.
4.90%, 09/09/13		500		546
Northrop Grumman Corp.
3.70%, 08/01/14 (b)		500		516
Tyco International Finance S.A.
8.50%, 01/15/19 (b)		200		249
				2,796
Communications 2.7%
AT&T, Inc.
6.70%, 11/15/13 (b)		1,000		1,148
CBS Corp.
8.20%, 05/15/14 (b)		800		901
Rogers Communications
8.00%, 12/15/12 (b)		500		511
Telefonica Emisiones, S.A.U.
5.98%, 06/20/11 (b)		1,000		1,067
Time Warner Entertainment Co. LP
10.15%, 05/01/12		500		584
Verizon Communications, Inc.
5.25%, 04/15/13 (b)		1,000		1,093
Verizon Wireless Capital LLC
3.75%, 05/20/11 (b)		1,500		1,554
				6,858
Consumer Cyclical 1.5%
CVS Caremark Corp.
6.30%, 06/01/12 (a)(b)		500		430
PACCAR, Inc.
6.38%, 02/15/12 (b)		1,000		1,098
Turner Broadcasting System, Inc.
8.38%, 07/01/13		675		783
Viacom, Inc.
5.75%, 04/30/11 (b)		400		420
Wal-Mart Stores, Inc.
3.20%, 05/14/14		1,000		1,043
				3,774
Consumer Non-Cyclical 3.1%
Anheuser-Busch InBev NV
3.00%, 10/15/12 (b)(c)		1,000		1,019
Bottling Group LLC
6.95%, 03/15/14 (b)		500		589
Coca-Cola Enterprises, Inc.
8.50%, 02/01/12		500		571
Diageo Capital PLC
7.38%, 01/15/14 (b)		250		294
General Mills, Inc.
6.00%, 02/15/12 (b)		190		208
McKesson Corp.
6.50%, 02/15/14 (b)		400		448
Medco Health Solutions, Inc.
6.13%, 03/15/13 (b)		500		545
Reynolds American, Inc.
7.25%, 06/01/13 (b)		500		553
Roche Holdings, Inc.
4.50%, 03/01/12 (b)(c)		500		531
Safeway, Inc.
6.25%, 03/15/14 (b)		500		562
The Kroger Co.
6.80%, 04/01/11 (b)		157		168
Thermo Fisher Scientific, Inc.
2.15%, 12/28/12 (b)(c)		1,000		1,004
Watson Pharmaceuticals, Inc.
5.00%, 08/15/14 (b)		500		520
Wyeth
6.95%, 03/15/11 (b)		1,000		1,077
				8,089
Energy 1.2%
Apache Corp.
6.00%, 09/15/13 (b)		500		568
Baker Hughes, Inc.
6.50%, 11/15/13 (b)		300		346
BP Capital Markets PLC
3.13%, 03/10/12		250		261
Husky Energy, Inc.
5.90%, 06/15/14 (b)		300		330
Occidental Petroleum Corp.
7.00%, 11/01/13 (b)		250		293
Shell International Finance BV
4.00%, 03/21/14 (b)		500		533
Valero Energy Corp.
6.88%, 04/15/12 (b)		650		712
				3,043
Technology 1.1%
Agilent Technologies, Inc.
4.45%, 09/12/12 (b)		900		932
Hewlett-Packard Co.
2.95%, 08/15/12 (b)		500		518

3

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
6.13%, 03/01/14 (b)		300		342
International Business Machines Corp.
6.50%, 10/15/13 (b)		500		580
Xerox Corp.
5.65%, 05/15/13 (b)		500		533
				2,905
Transportation 0.3%
Burlington Northern Santa Fe Corp.
7.00%, 02/01/14 (b)		200		232
Canadian National Railway Co.
6.38%, 10/15/11 (b)		500		547
				779
				29,906
Utilities 1.8%
Electric 1.2%
Dominion Resources, Inc.
8.88%, 01/15/19 (b)		275		353
Duke Energy Carolinas LLC
5.75%, 11/15/13 (b)		500		558
National Rural Utilities Cooperative Finance Corp.
2.63%, 09/16/12 (b)		1,000		1,019
Pacific Gas & Electric Co.
6.25%, 12/01/13 (b)		500		567
Southern California Edison Co.
5.75%, 03/15/14 (b)		500		560
				3,057
Natural Gas 0.6%
Energy Transfer Partners LP
8.50%, 04/15/14 (b)		400		468
Enterprise Products Operating LLC
9.75%, 01/31/14 (b)		500		610
Kinder Morgan Energy Partners LP
7.13%, 03/15/12 (b)		500		552
				1,630
				4,687
Total Corporate Bonds (Cost $56,581)				60,909
	Number of		Value
Security	Shares		($ x 1,000)
Other Investment Company 0.5% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		1,392,198		1,392
Total Other Investment Company (Cost $1,392)				1,392
Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Short-Term Investments 0.1% of net assets
U.S. Treasury Obligations 0.1%
U.S. Treasury Bills
0.27%, 01/14/10 (d)		100		100
0.21%, 02/25/10 (d)		50		50
Total Short-Term Investments (Cost $150)				150

End of Investments.

(All dollar amounts are x 1,000)

At 11/30/09, the tax basis cost of the fund’s investments was $246,649, and the unrealized appreciation and depreciation were $8,582 and ($77), respectively, with a net unrealized appreciation of $8,505.

(a)	Variable-rate security.
(b)	Callable security.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $2,554 or 1.0% of net assets.
(d)	All or a portion of this security is held as collateral for futures contracts.
(e)	This debt is guaranteed under the FDIC Temporary Liquidity Guarantee Program, and the FDIC has stated that this debt is backed by the full faith and credit of the United States.

In addition to the above, the fund held the following at 11/30/09.

						Unrealized
				Contract		Gains /
	Number of			Value		(Losses)
	Contracts			($ x 1,000)		($ x 1,000)
Futures Contracts
Futures Contracts — Long
3 Years, Long, U.S. Treasury Note, expires 03/31/10		36			8,135		27
Futures Contracts — Short
5 Years, Short, U.S. Treasury Note, expires 03/31/10		(60	)		7,036		(40	)
Net unrealized losses							(13	)

4

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

ASSETS VALUATION INPUT

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
U.S. Government and Government Agencies(a)	$	—	$	177,219	$	—	$	177,219
Foreign Securities(a)		—		15,484		—		15,484
Corporate Bonds(a)		—		57,135		—		57,135
Industrial
Consumer Cyclical		—		3,344		430		3,774
Other Investment Company		1,392		—		—		1,392
Short-Term Investments(a)		—		150		—		150

5

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices
	in Active			Significant
	Markets for			Other		Significant
	Identical			Observable		Unobservable
	Assets			Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Total	$	1,392		$	253,332	$	430	$	255,154
Other Financial Instruments
Futures Contract*	$	27		$	—	$	—	$	27
LIABILITIES VALUATION INPUT
Other Financial Instruments
Futures Contract*	$	(40	)	$	—	$	—	$	(40	)

*	Other Financial instruments are Futures Contracts which are not included in Portfolio Holdings and are value at the unrealized appreciation or depreciation.
(a)	as categorized in Portfolio Holdings

The Fund entered into futures contracts during the period ended November 30, 2009. The fund invests in futures contracts in order to reduce the effects of uninvested cash on performance. The fund may also use futures contracts to manage interest rate exposures.

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

							Change in						Balance as
	Balance as		Accrued		Realized		Unrealized						of
Investments in	of August		Discounts		Gain		Appreciation		Net Purchases		Net Transfers		November
Securities	31, 2009		(Premiums)		(Loss)		(Depreciation)		(Sales)		in (out)		30, 2009
Corporate Bonds	$	—	$	—	$	—	$	35	$	—	$	395	$	430
Total	$	—	$	—	$	—	$	35	$	—	$	395	$	430

6

Schwab Investments
Schwab Premier Income Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost	Value
Holdings by Category				($ x 1,000)	($ x 1,000)
	32.3	%	Corporate Bonds	99,429	106,493
	6.2	%	Asset-Backed Obligations	21,878	20,541
	33.8	%	Mortgage-Backed Securities	108,744	111,323
	1.9	%	Commercial Mortgage Backed Securities	5,864	6,217
	22.8	%	U.S. Government and Government Agencies	73,773	75,207
	0.7	%	Foreign Securities	2,294	2,355
	0.5	%	Preferred Stock	1,536	1,560
	2.4	%	Other Investment Company	8,006	8,006
	0.3	%	Short-Term Investments	998	999
	100.9	%	Total Investments	322,522	332,701
	(0.9	)%	Other Assets and Liabilities		(3,117	)
	100.0	%	Net Assets		329,584

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Corporate Bonds 32.3% of net assets
Finance 12.2%
Banking 6.6%
Bank of America Corp.
7.38%, 05/15/14 (b)		500		562
5.63%, 10/14/16		500		514
8.00%, 01/30/18 (a)(b)		500		436
Barclays Bank PLC
6.75%, 05/22/19		500		568
Bear Stearns & Co., Inc.
5.70%, 11/15/14		250		277
7.25%, 02/01/18		750		869
BNP Paribas Group
5.19%, 06/29/15 (a)(b)(c)		500		420
Citigroup, Inc.
5.25%, 02/27/12		750		785
8.50%, 05/22/19		300		339
CoBank ACB
7.88%, 04/16/18 (c)		1,000		1,078
Deutsche Bank Capital Funding Trust I
3.25%, 12/30/09 (a)(b)(c)		2,000		1,410
Goldman Sachs Capital II
5.79%, 06/01/12 (a)(b)		500		370
Goldman Sachs Group, Inc.
7.50%, 02/15/19		500		591
JPMorgan Chase & Co.
6.30%, 04/23/19		500		558
Merrill Lynch & Co., Inc.
0.48%, 01/25/10 (a)		1,500		1,474
Morgan Stanley
6.75%, 04/15/11 (b)		323		345
4.75%, 04/01/14		500		509
6.00%, 05/13/14		200		218
6.00%, 04/28/15		500		544
7.30%, 05/13/19 (b)		500		565
Rabobank Nederland
11.00%, 06/30/19 (a)(b)(c)		1,000		1,240
Republic New York Corp.
1.19%, 01/29/10 (a)(b)		2,500		2,483
Santander S.A.
0.68%, 01/21/10 (a)(c)		3,000		3,006
Svenska Handelsbanken AB
1.30%, 12/14/09 (a)(c)		1,250		1,244
Wachovia Bank NA
4.80%, 11/01/14		500		518
Westpac Banking Corp.
0.58%, 01/21/10 (a)(c)		1,000		1,000
				21,923
Brokerage 0.6%
Cantor Fitzgerald LP
7.88%, 10/15/19 (b)(c)		1,000		1,022
Jefferies Group, Inc.
8.50%, 07/15/19 (b)		1,000		1,102
				2,124
Finance Company 1.2%
General Electric Capital Corp.
0.34%, 02/16/10 (a)		2,000		1,965
6.38%, 11/15/17 (a)(b)		500		412
International Lease Finance Corp.
5.63%, 09/15/10		1,500		1,464
				3,841
Insurance 3.3%
Coventry Health Care, Inc.
5.88%, 01/15/12		1,500		1,536
Highmark, Inc.
6.80%, 08/15/13 (b)(c)		1,000		1,064

1

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
MetLife, Inc.
7.72%, 02/15/19 (b)		250		300
Oil Insurance Ltd.
7.56%, 06/30/11 (a)(b)(c)		1,000		812
Pricoa Global Funding I
1.13%, 12/04/09 (a)(c)		2,000		2,001
0.49%, 01/15/10 (a)(c)		1,000		1,000
Travelers Co., Inc.
5.90%, 06/02/19 (b)		100		112
UnitedHealth Group, Inc.
1.58%, 02/07/10 (a)		1,350		1,356
ZFS Finance USA Trust I
6.15%, 12/15/10 (a)(b)(c)		2,000		1,790
ZFS Finance USA Trust IV
5.88%, 05/09/12 (a)(b)(c)		1,000		810
				10,781
Real Estate Investment Trust 0.5%
Simon Property Group, Inc.
6.75%, 05/15/14 (b)		1,000		1,097
Ventas Realty LP
6.50%, 06/01/16 (b)		500		475
				1,572
				40,241
Industrial 16.3%
Basic Industry 1.2%
Airgas, Inc.
7.13%, 10/01/18 (b)(c)		1,000		1,040
Rio Tinto Finance (USA) Ltd.
9.00%, 05/01/19 (b)		1,000		1,277
The Dow Chemical Co.
7.60%, 05/15/14 (b)		500		568
8.55%, 05/15/19 (b)		1,000		1,184
				4,069
Capital Goods 0.8%
BAE Asset Systems 2001 Asset Trust
6.66%, 09/15/13 (c)		1,307		1,345
Ball Corp.
7.13%, 09/01/16 (b)		250		258
Tyco International Finance S.A.
8.50%, 01/15/19 (b)		100		124
Waste Management, Inc.
7.38%, 03/11/19 (b)		850		1,008
				2,735
Communications 5.7%
AT&T, Inc.
6.70%, 11/15/13 (b)		400		459
British Sky Broadcasting Group PLC
9.50%, 11/15/18 (b)(c)		500		660
CBS Corp.
8.20%, 05/15/14 (b)		500		564
8.88%, 05/15/19 (b)		500		582
News America Holdings, Inc.
9.25%, 02/01/13		500		592
News America, Inc.
7.25%, 05/18/18		650		754
Qwest Corp.
8.38%, 05/01/16 (b)(c)		500		525
Rogers Communications
8.00%, 12/15/12 (b)		2,000		2,044
Sprint Nextel Corp.
0.68%, 12/29/09 (a)		3,000		2,925
Telecom Italia Capital S.A.
4.00%, 01/15/10 (b)		7,400		7,425
Time Warner Entertainment Co. LP
10.15%, 05/01/12		480		560
Verizon Communications, Inc.
8.75%, 11/01/18 (b)		500		636
Verizon Wireless Capital LLC
2.87%, 02/22/10 (a)		1,000		1,037
				18,763
Consumer Cyclical 2.9%
CVS Caremark Corp.
0.66%, 12/01/09 (a)(b)		2,000		2,001
6.30%, 06/01/12 (a)(b)		800		688
5.88%, 01/10/28 (b)		1,811		1,801
6.04%, 12/10/28 (b)		698		710
Historic TW, Inc.
6.88%, 06/15/18		350		397
International Game Technology
7.50%, 06/15/19		500		562
2.60%, 12/15/36 (b)		1,500		1,506
PACCAR, Inc.
6.88%, 02/15/14 (b)		200		231
Royal Caribbean Cruises Ltd.
8.75%, 02/02/11		1,500		1,549
Viacom, Inc.
5.75%, 04/30/11 (b)		100		105
				9,550
Consumer Non-Cyclical 3.8%
AmerisourceBergen Corp.
5.88%, 09/15/15 (b)		1,000		1,117
Beckman Coulter, Inc.
7.00%, 06/01/19 (b)		1,000		1,164
Medco Health Solutions, Inc.
6.13%, 03/15/13 (b)		500		545
PepsiCo, Inc.
7.90%, 11/01/18 (b)		500		636
Reynolds American, Inc.
1.00%, 12/15/09 (a)(b)		3,000		2,968
7.63%, 06/01/16 (b)		700		762
Roche Holdings, Inc.
5.00%, 03/01/14 (b)(c)		500		547
Stater Brothers Holdings
8.13%, 06/15/12 (b)		1,000		1,010
Universal Health Services, Inc.
6.75%, 11/15/11 (b)		1,000		1,078
7.13%, 06/30/16 (b)		1,000		1,103
Watson Pharmaceuticals, Inc.
6.13%, 08/15/19 (b)		500		532

2

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Zimmer Holdings, Inc.
4.63%, 11/30/19 (b)		1,000		1,023
				12,485
Energy 0.4%
Apache Corp.
6.90%, 09/15/18 (b)		100		121
Baker Hughes, Inc.
6.50%, 11/15/13 (b)		100		115
7.50%, 11/15/18 (b)		100		124
Husky Energy, Inc.
7.25%, 12/15/19 (b)		250		293
Valero Energy Corp.
9.38%, 03/15/19 (b)		300		363
Weatherford International Ltd.
9.63%, 03/01/19 (b)		250		313
				1,329
Technology 1.4%
Affiliated Computer Services, Inc.
4.70%, 06/01/10 (b)		2,000		2,015
Seagate Technology International
10.00%, 05/01/14 (b)(c)		500		549
Xerox Corp.
7.13%, 06/15/10 (b)		1,000		1,030
8.25%, 05/15/14 (b)		800		931
				4,525
Transportation 0.1%
Burlington Northern Santa Fe Corp.
7.00%, 02/01/14 (b)		100		116
Union Pacific Corp.
5.75%, 11/15/17 (b)		200		219
				335
				53,791
Utilities 3.8%
Electric 2.1%
Appalachian Power Co.
7.95%, 01/15/20 (b)		400		494
Dominion Resources, Inc.
8.88%, 01/15/19 (b)		125		160
DTE Energy Co.
7.63%, 05/15/14 (b)		800		906
FPL Group Capital, Inc.
0.67%, 02/09/10 (a)		1,000		1,000
Nevada Power Co.
6.50%, 04/15/12 (b)		1,000		1,089
7.13%, 03/15/19 (b)		500		575
Nisource Finance Corp.
10.75%, 03/15/16 (b)		400		484
Pacific Gas & Electric Co.
8.25%, 10/15/18 (b)		500		633
Southern Co.
0.68%, 01/21/10 (a)		1,500		1,505
				6,846
Natural Gas 1.7%
CenterPoint Energy Resources Corp.
6.00%, 05/15/18 (b)		708		758
Energy Transfer Partners LP
8.50%, 04/15/14 (b)		500		585
Enterprise Products Operating LLC
9.75%, 01/31/14 (b)		100		122
8.38%, 08/01/16 (a)(b)		2,250		2,194
Ferrellgas Partners LP
9.13%, 10/01/17 (b)		1,000		1,045
Kinder Morgan Energy Partners LP
5.63%, 02/15/15 (b)		300		326
Williams Cos., Inc.
8.75%, 01/15/20 (b)		500		585
				5,615
				12,461
Total Corporate Bonds (Cost $99,429)				106,493
Asset-Backed Obligations 6.2% of net assets
ACE Securities Corp.
Series 2003-HS1 Class M3
3.99%, 12/28/09 (a)(b)		1,500		718
Aegis Asset Backed Securities Trust
Series 2006-1 Class A1
0.32%, 12/28/09 (a)(b)		50		49
Ameriquest Mortgage Securities, Inc.
Series 2003-11 Class M5
3.49%, 12/28/09 (a)(b)		120		21
Amortizing Residential Collateral Trust
Series 2002-BC4 Class A
0.53%, 12/28/09 (a)(b)		1		1
Series 2002-BC7 Class M1
1.04%, 12/28/09 (a)(b)		476		243
Asset Backed Funding Certificates
Series 2005-HE1 Class M2
0.68%, 12/28/09 (a)(b)		400		203
Bear Stearns Asset Backed Securities
Series 2005-HE3 Class M1
0.67%, 12/28/09 (a)(b)		92		89
Citifinancial Mortgage Securities, Inc.
Series 2004-1 Class AF2
2.65%, 12/01/09 (a)(b)		95		94

3

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Citigroup Mortgage Loan Trust, Inc.
Series 2004-OPTI Class M5
1.29%, 12/28/09 (a)(b)		1,771		1,222
Series 2004-OPTI Class M6
1.32%, 12/28/09 (a)(b)		1,582		471
Countrywide Loan
Series 2002-3 Class M2
2.26%, 12/28/09 (a)(b)		498		132
CS First Boston Mortgage Securities Corp.
Series 2001-HE30 Class MF2
8.26%, 12/01/09 (a)(b)		1,826		666
First Franklin Mortgage Loan
Series 2002-FF1 Class M1
1.29%, 12/28/09 (a)(b)		1,381		401
Fremont Home Loan Trust
Series 2004-A Class M1
1.06%, 12/28/09 (a)(b)		2,105		1,498
Long Beach Mortgage Loan Trust
Series 2004-1 Class M3
0.94%, 12/28/09 (a)(b)		400		326
Series 2004-1 Class M4
1.24%, 12/28/09 (a)(b)		1,352		1,079
Series 2004-2 Class M2
1.32%, 12/28/09 (a)(b)		1,421		981
Series 2004-1 Class M6
1.64%, 12/28/09 (a)(b)		604		239
Merrill Lynch Mortgage Investors Trust
Series 2003-WMC3 Class M4
4.25%, 12/28/09 (a)(b)		3,059		1,107
Morgan Stanley ABS Capital I
Series 2004-NC8 Class M4
1.24%, 12/28/09 (a)(b)		794		576
Morgan Stanley Dean Witter Capital I
Series 2002-AM3 Class M2
3.24%, 12/28/09 (a)(b)		972		333
Novastar Home Equity Loan
Series 2004-4 Class M1
0.86%, 12/28/09 (a)(b)		963		957
Option One Mortgage Loan Trust
Series 2005-1 Class M2
0.78%, 12/28/09 (a)(b)		1,709		897
Series 2003-2 Class M1
1.21%, 12/28/09 (a)(b)		1,240		451
Series 2002-1 Class M1
1.36%, 12/28/09 (a)(b)		175		63
Series 2002-4 Class M2
1.93%, 12/28/09 (a)(b)		352		226
Park Place Securities, Inc.
Series 2005-WLL1 Class M1
0.66%, 12/28/09 (a)(b)		2,000		1,678
Series 2004-WCW1 Class M1
0.87%, 12/28/09 (a)(b)		2,569		2,423
Series 2004-MHQ1 Class M1
0.94%, 12/28/09 (a)(b)		1,000		864
Structured Asset Securities Corp.
Series 1998-2 Class M1
1.34%, 12/28/09 (a)(b)		1,242		1,039
Series 2005-2XS Class 1A5A
4.72%, 12/01/09 (a)(b)		1,790		1,494
Total Asset-Backed Obligations (Cost $21,878)				20,541
Mortgage-Backed Securities 33.8% of net assets
Collateralized Mortgage Obligations 11.6%
ABN Amro Mortgage Corp.
Series 2003-2 Class 2A1
0.74%, 12/01/09 (a)(b)		564		513
Series 2003-9 Class A1
4.50%, 08/25/18 (b)		258		263
American Home Mortgage Investment Trust
Series 2005-1 Class 7A2
5.29%, 12/01/09 (a)(b)		2,652		1,048
Banc of America Alternative Loan Trust
Series 2004-3 Class 4A1
5.00%, 04/25/19 (b)		1,968		1,955
Series 2005-2 Class CB
5.50%, 03/25/35 (b)(e)		6,189		741
Series 2005-5 Class CB
5.50%, 06/25/35 (b)(e)		3,317		385
Banc of America Mortgage Securities, Inc.
Series 2004-4 Class 2A1
5.50%, 05/25/34 (b)		1,266		1,262
Chase Mortgage Finance Corp.
Series 2003-S13 Class A16
5.00%, 11/25/33 (b)		2,401		2,423
Countrywide Alternative Loan Trust
Series 2005-J11 Class 7A1
6.00%, 06/25/17 (b)		167		163
Series 2004-29CB Class A6
4.00%, 01/25/35 (b)		177		172
Series 2005-23CB Class A15
5.50%, 07/25/35 (b)		881		727
Countrywide Home Loan Mortgage Pass-Through Trust
Series 2003-56 Class 4A2
4.89%, 12/01/09 (a)(b)		5,031		2,704
CS First Boston Mortgage Securities Corp.
Series 2003-23 Class 7A1
5.00%, 09/25/18 (b)		3,034		3,065
Series 2004-7 Class 6A1
5.25%, 10/25/19 (b)		2,971		3,035
Series 2004-1 Class 1A1
5.75%, 02/25/34 (b)		700		683
GSAA Home Equity Trust
Series 2004-NC1 Class AF6
4.76%, 12/01/09 (a)(b)		1,738		1,652

4

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Impac CMB Trust
Series 2004-5 Class 1A1
0.60%, 12/28/09 (a)(b)		497		348
JPMorgan Mortgage Trust
Series 2007-A1 Class 6A1
4.77%, 12/01/09 (a)(b)		1,467		1,317
MASTR Asset Securitization Trust
Series 2003-11 Class 6A8
0.74%, 12/28/09 (a)(b)		1,891		1,751
Series 2003-6 Class 9A1
4.25%, 07/25/33 (b)		247		240
Nomura Asset Acceptance Corp.
Series 2004-AR1 Class 4A
4.29%, 12/01/09 (a)(b)		2,590		2,159
Residential Accredit Loans, Inc.
Series 2002-QS18 Class M1
5.50%, 12/25/17 (b)		199		149
Series 2003-QS1 Class A2
5.75%, 01/25/33 (b)		567		563
Residential Asset Securitization Trust
Series 2004-A6 Class A1
5.00%, 08/25/19 (b)		944		910
Series 2003-A1 Class A1
4.25%, 03/25/33 (b)		1,662		1,668
Structured Asset Securities Corp.
Series 2004-3 Class 3A1
5.50%, 03/25/19 (b)		335		329
Series 2005-6 Class 4A1
5.00%, 05/25/35 (b)		1,900		1,862
WAMU Mortgage Pass-Through Certificates
Series 2003-S10 Class A5
5.00%, 10/25/18 (b)		400		398
Series 2003-S9 Class A6
5.25%, 10/25/33 (b)		3,000		3,023
Series 2004-S3 Class 1A1
5.00%, 07/25/34 (b)		2,740		2,751
				38,259
U.S. Government Agency Mortgages 22.2%
Fannie Mae
6.00%, 02/01/15 to 07/01/37		24,174		26,054
9.75%, 07/01/16		4		4
7.00%, 11/01/16 to 01/01/35		993		1,102
5.50%, 09/01/17 to 05/01/27		10,955		11,780
4.50%, 08/01/18 to 09/01/19		890		939
5.00%, 04/01/19 to 06/01/24		3,310		3,537
6.50%, 12/01/19 to 08/01/26		1,072		1,169
4.50%, 11/01/20 (e)		9,180		848
Fannie Mae TBA
6.00%, 12/01/39		5,000		5,360
Freddie Mac
3.50%, 05/01/11		32		33
4.50%, 01/01/13 to 06/01/19		353		374
6.50%, 10/01/13 to 04/01/26		1,854		2,025
5.50%, 04/01/16 to 02/01/23		3,595		3,871
5.00%, 05/15/16 to 04/01/20		12,040		12,608
6.00%, 06/01/16 to 08/01/22		903		986
5.50%, 02/15/23 (e)		133		1
3.50%, 05/15/26 (b)		559		566
Ginnie Mae
7.63%, 08/15/28		184		210
7.38%, 09/15/28 to 02/15/30		530		604
7.13%, 02/15/29 to 03/15/29		299		339
7.00%, 04/15/29 to 05/15/29		430		480
7.25%, 04/15/29		153		174
				73,064
Total Mortgage-Backed Securities (Cost $108,744)				111,323
Commercial Mortgage Backed Securities 1.9% of net assets
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/01/09 (a)(b)		2,230		2,244
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		2,000		1,712
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2003-ML1A Class A1
3.97%, 03/12/39 (b)		151		154
Series 2005-LDP5 Class A2
5.20%, 12/15/44 (b)		1,400		1,405
LB-UBS Commercial Mortgage Trust
Series 2006-C3 Class A3
5.69%, 12/11/09 (a)(b)		710		702
Total Commercial Mortgage Backed Securities (Cost $5,864)				6,217
U.S. Government and Government Agencies 22.8% of net assets
U.S. Government Agency Guaranteed 1.2%
Bank of America Corp., (FDIC Insured)
2.10%, 04/30/12 (f)		4,000		4,091
U.S. Government Agency Securities 6.1%
Fannie Mae
2.13%, 04/15/11 (b)		4,000		4,024
1.00%, 11/23/11		10,000		10,052
2.50%, 03/19/12 (b)		5,000		5,032
Federal Farm Credit Bank
3.00%, 09/22/14		1,000		1,032
				20,140
U.S. Treasury Obligations 15.5%
U.S. Treasury Notes
1.50%, 07/15/12		5,000		5,079
1.38%, 11/15/12		100		101
2.75%, 10/31/13		7,000		7,330

5

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
2.63%, 07/31/14		4,000		4,139
2.38%, 09/30/14		1,850		1,889
2.38%, 10/31/14		14,000		14,268
3.25%, 07/31/16		6,500		6,780
3.00%, 09/30/16		2,700		2,763
3.38%, 11/15/19		8,500		8,627
				50,976
Total U.S. Government and Government Agencies (Cost $73,773)				75,207
Foreign Securities 0.7% of net assets
Foreign Agencies 0.7%
Canada 0.4%
Province of Ontario Canada
0.42%, 02/19/10 (a)		1,500		1,500
Mexico 0.2%
Petroleos Mexicanos
4.88%, 03/15/15 (b)		500		504
8.00%, 05/03/19 (b)		100		118
				622
Republic of Korea 0.1%
Export-Import Bank of Korea
8.13%, 01/21/14		100		117
Korea Development Bank
8.00%, 01/23/14		100		116
				233
Total Foreign Securities (Cost $2,294)				2,355
	Number of		Value
Security	Shares		($ x 1,000)
Preferred Stock 0.5% of net assets
HJ Heinz Finance Co. (c)		15		1,560
Total Preferred Stock (Cost $1,536)				1,560
Other Investment Company 2.4% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		8,005,948		8,006
Total Other Investment Company (Cost $8,006)				8,006
Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Short-Term Investments 0.3% of net assets
U.S. Treasury Obligations 0.3%
U.S. Treasury Bills
0.29%, 12/17/09 (d)		100		100
0.28%, 12/31/09 (d)		200		200
0.26%, 01/28/10 (d)		200		200
0.49%, 07/01/10 (d)		500		499
Total Short-Term Investments (Cost $998)				999

End of Investments.

(All dollar amounts are x 1,000)

At 11/30/09 the tax basis cost of the fund’s investments was $322,522 and the unrealized appreciation and depreciation were $15,651 and ($5,472), respectively, with a net unrealized appreciation of $10,179.

(a)	Variable-rate security.
(b)	Callable security.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $24,123 or 7.3% of net assets.
(d)	All or a portion of this security is held as collateral for futures contracts.
(e)	Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.
(f)	This debt is guaranteed under the FDIC Temporary Liquidity Guarantee Program, and the FDIC has stated that this debt is backed by the full faith and credit of the United States.

In addition to the above, the fund held the following at 11/30/09.

			Contract		Unrealized
	Number of		Value		Gains
	Contracts		($ x 1,000)		($ x 1,000)
Futures Contracts
10 Years, Long, U.S. Treasury Note, expires 03/22/10		60		7,196		69
5 Years, Long, U.S. Treasury Note, expires 03/31/10		57		6,684		37
Net unrealized gains						106

6

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Corporate Bonds(a)	$	—	$	72,285	$	—	$	72,285
Finance
Banking		—		20,513		1,410		21,923
Industrial
Capital Goods		—		1,132		1,603		2,735
Consumer Cyclical		—		8,862		688		9,550
Asset-Backed Obligations		—		20,541		—		20,541
Mortgage-Backed Securities(a)		—		111,323		—		111,323
Commercial Mortgage Backed Securities		—		6,217		—		6,217
U.S. Government and Government Agencies(a)		—		75,207		—		75,207
Foreign Securities(a)		—		2,355		—		2,355
Preferred Stock		1,560		—		—		1,560
Other Investment Company		8,006		—		—		8,006
Short-Term Investments(a)		—		999		—		999
Total	$	9,566	$	319,434	$	3,701	$	332,701

7

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Other Financial instruments
Futues Contracts*	$	106	$	—	$	—	$	106

*	Other Financial instruments are Futures Contracts which are not included in Portfolio Holdings and are valued at the unrealized appreciation or depreciation.
(a)	as categorized in Portfolio Holdings

The Fund entered into futures contracts during the period ended November 30, 2009. The fund invests in futures contracts in order to reduce the effects of uninvested cash on performance. The fund may also use futures contracts to manage interest rate exposures.

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

	Balance						Change in									Balance
	as of		Accrued		Realized		Unrealized			Net			Net			as of
	August		Discounts		Gain		Appreciation			Purchases			Transfers			November
Investments in Securities	31, 2009		(Premiums)		(Loss)		(Depreciation)			(Sales)			in (out)			30, 2009
Asset-Backed Obligations	$	1,542	$	12	$	380	$	(13	)	$	(1,024	)	$	(897	)	$	—
Corporate Bonds		3,830		5		—		162			1,366			(1,662	)		3,701
Total	$	5,372	$	17	$	380	$	149		$	342		$	(2,559	)	$	3,701

8

Schwab Investments
Schwab Total Bond Market Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	37.1	%	Mortgage-Backed Securities		329,930		343,706
	18.4	%	Corporate Bonds		156,692		170,598
	36.5	%	U.S. Government and Government Agencies		326,300		338,863
	3.3	%	Commercial Mortgage Backed Securities		30,278		30,932
	0.5	%	Asset-Backed Obligations		4,721		4,917
	4.4	%	Foreign Securities		39,284		40,572
	0.3	%	Municipal Bonds		2,819		2,712
	1.9	%	Other Investment Company		17,080		17,080
	—	%	Short-Term Investments		300		300
	102.4	%	Total Investments		907,404		949,680
	(2.4)	%	Other Assets and Liabilities, Net				(22,034	)
	100.0	%	Net Assets				927,646

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Mortgage-Backed Securities 37.1% of net assets
U.S. Government Agency Mortgages 37.1%
Fannie Mae
3.34%, 12/01/09 (a)		3,812		3,891
4.72%, 12/01/09 (a)		2,000		2,064
5.50%, 12/01/13 to 09/01/38		68,379		73,024
5.00%, 12/01/17 to 05/01/38		47,517		50,206
4.00%, 07/01/18 to 04/01/39		15,657		15,865
4.50%, 07/01/19 to 09/01/39		40,523		41,885
6.50%, 09/01/22 to 11/01/37		14,482		15,707
6.00%, 09/01/24 to 12/01/37		32,098		34,520
7.00%, 04/01/37		3,680		4,057
Fannie Mae TBA
5.00%, 12/01/39		1,000		1,049
Freddie Mac
5.57%, 12/01/09 (a)		2,599		2,754
5.62%, 12/01/09 (a)		7,362		7,794
6.00%, 04/01/15 to 10/01/38		12,656		13,682
4.50%, 05/01/19 to 06/01/39		9,231		9,720
5.00%, 06/01/23 to 11/01/35		12,464		13,113
4.00%, 07/01/24 to 08/01/29		4,984		5,124
Ginnie Mae
5.00%, 10/20/21 to 07/15/39		10,597		11,207
4.50%, 05/15/24 to 05/15/39		9,843		10,155
7.50%, 03/15/32		517		599
6.00%, 05/15/32 to 08/15/38		5,448		5,872
5.50%, 04/15/33 to 11/15/38		10,214		10,914
7.00%, 06/15/33		582		655
4.00%, 06/20/39 to 07/20/39		932		934
6.50%, 08/15/39		1,866		2,004
Ginnie Mae TBA
5.00%, 12/01/39		2,000		2,103
5.50%, 12/01/39		1,500		1,597
6.00%, 12/01/39		3,000		3,211
Total Mortgage-Backed Securities (Cost $329,930)				343,706
Corporate Bonds 18.4% of net assets
Finance 6.9%
Banking 4.5%
American Express Bank FSB
5.50%, 04/16/13		1,000		1,074
Bank of America Corp.
7.38%, 05/15/14 (b)		200		225
5.63%, 10/14/16		2,000		2,054
6.00%, 10/15/36		500		499
Bank of New York Mellon Corp.
4.30%, 05/15/14		600		642
Barclays Bank PLC
5.00%, 09/22/16		1,000		1,039
BB&T Capital Trust IV
6.82%, 06/12/37 (a)(b)		1,000		885
BB&T Corp.
3.38%, 09/25/13		1,000		1,019
Bear Stearns & Co., Inc.
5.70%, 11/15/14		500		554
7.25%, 02/01/18		1,250		1,448
Citigroup, Inc.
6.38%, 08/12/14		4,000		4,212
8.50%, 05/22/19		200		226
Countrywide Financial Corp.
6.25%, 05/15/16		1,000		1,015
Credit Suisse USA, Inc.
5.50%, 05/01/14		1,500		1,647
5.30%, 08/13/19		1,000		1,050
Deutsche Bank AG
3.88%, 08/18/14		1,000		1,034

1

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Goldman Sachs Capital II
5.79%, 06/01/12 (a)(b)		1,500		1,110
JPMorgan Chase & Co.
5.60%, 06/01/11		250		267
5.38%, 10/01/12		1,000		1,097
6.40%, 05/15/38		250		278
JPMorgan Chase Bank NA
5.88%, 06/13/16		1,500		1,589
Merrill Lynch & Co., Inc.
5.45%, 02/05/13		2,000		2,103
Morgan Stanley
6.75%, 04/15/11 (b)		500		533
4.75%, 04/01/14		1,200		1,222
6.00%, 05/13/14		300		327
6.00%, 04/28/15		750		816
5.45%, 01/09/17 (b)		750		772
7.30%, 05/13/19 (b)		500		565
7.25%, 04/01/32 (b)		100		115
PNC Funding Corp.
4.25%, 09/21/15		600		620
Royal Bank of Scotland Group PLC
5.05%, 01/08/15		1,000		898
The Goldman Sachs Group, Inc.
6.60%, 01/15/12		1,000		1,095
3.63%, 08/01/12		1,000		1,040
7.50%, 02/15/19		1,000		1,183
5.95%, 01/15/27 (b)		2,000		1,936
US Bancorp
2.13%, 02/15/13		600		605
Wachovia Bank NA
4.88%, 02/01/15		2,000		2,071
Wells Fargo & Co.
4.38%, 01/31/13		1,000		1,049
5.63%, 12/11/17		2,000		2,090
				42,004
Brokerage 0.1%
Jefferies Group, Inc.
5.50%, 03/15/16 (b)		1,000		979
Finance Company 1.0%
General Electric Capital Corp.
3.50%, 08/13/12		1,500		1,545
5.00%, 01/08/16		2,000		2,085
6.38%, 11/15/17 (a)(b)		1,000		824
6.75%, 03/15/32 (b)		500		514
6.88%, 01/10/39		500		526
HSBC Finance Capital Trust IX
5.91%, 11/30/15 (a)(b)		500		398
HSBC Finance Corp.
7.00%, 05/15/12		750		824
4.75%, 07/15/13		1,000		1,050
International Lease Finance Corp.
5.45%, 03/24/11		1,274		1,174
				8,940
Insurance 0.9%
Allstate Life Global Funding Trusts
5.38%, 04/30/13		700		755
American International Group, Inc.
5.60%, 10/18/16		1,000		770
Chubb Corp.
6.00%, 05/11/37 (b)		1,095		1,199
CNA Financial Corp.
7.35%, 11/15/19 (b)		1,000		1,018
MetLife, Inc.
7.72%, 02/15/19 (b)		750		901
Protective Life Corp.
7.38%, 10/15/19 (b)		1,000		1,025
Prudential Financial, Inc.
4.75%, 09/17/15		1,000		1,019
Travelers Co., Inc.
5.90%, 06/02/19 (b)		400		448
UnitedHealth Group, Inc.
5.38%, 03/15/16 (b)		1,336		1,406
				8,541
Real Estate Investment Trust 0.4%
Simon Property Group LP
5.75%, 12/01/15 (b)		3,000		3,178
				63,642
Industrial 9.3%
Basic Industry 0.9%
ArcelorMittal
7.00%, 10/15/39 (b)		1,000		989
Barrick Gold Corp.
6.95%, 04/01/19 (b)		1,000		1,164
BHP Billiton Finance (USA) Ltd.
5.50%, 04/01/14		800		891
EI Du Pont de Nemours & Co.
4.75%, 03/15/15 (b)		1,000		1,096
International Paper Co.
7.30%, 11/15/39 (b)		500		499
Praxair, Inc.
4.38%, 03/31/14 (b)		350		378
Rio Tinto Finance (USA) Ltd.
8.95%, 05/01/14 (b)		1,250		1,504
The Dow Chemical Co.
6.00%, 10/01/12 (b)		500		545
8.55%, 05/15/19 (b)		600		710
9.40%, 05/15/39 (b)		100		129
Vale Overseas Ltd.
6.88%, 11/10/39 (b)		500		519
				8,424
Capital Goods 0.9%
Allied Waste North America, Inc.
6.13%, 02/15/14 (b)		600		620
Boeing Capital Corp.
3.25%, 10/27/14 (b)		1,000		1,019

2

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Caterpillar Financial Services Corp.
5.85%, 09/01/17		1,500		1,646
General Electric Co.
5.25%, 12/06/17		1,000		1,042
Honeywell International, Inc.
5.00%, 02/15/19 (b)		525		564
John Deere Capital Corp.
4.90%, 09/09/13		500		546
Lockheed Martin Corp.
4.25%, 11/15/19 (b)		250		251
5.50%, 11/18/39 (b)		250		253
The Boeing Co.
6.88%, 03/15/39 (b)		200		240
Tyco International Finance S.A.
8.50%, 01/15/19 (b)		200		248
United Technologies Corp.
6.13%, 02/01/19 (b)		1,000		1,155
Waste Management, Inc.
6.38%, 03/11/15 (b)		1,000		1,136
				8,720
Communications 1.9%
America Movil, S.A.B. de CV
5.00%, 10/16/19 (b)(c)		1,000		1,011
AT&T, Inc.
6.55%, 02/15/39 (b)		1,000		1,083
CBS Corp.
8.20%, 05/15/14 (b)		500		563
8.88%, 05/15/19 (b)		500		582
Comcast Corp.
5.70%, 05/15/18 (b)		1,000		1,064
DirecTV Holdings Financing Co., Inc.
4.75%, 10/01/14 (b)(c)		500		517
Discovery Communications LLC
5.63%, 08/15/19 (b)		500		528
Grupo Televisa S.A.
6.63%, 03/18/25 (b)		500		505
News America Holdings, Inc.
9.25%, 02/01/13		250		296
News America, Inc.
6.15%, 03/01/37 (b)		650		653
Pacific Bell Telephone Co.
7.13%, 03/15/26		1,500		1,670
Rogers Communications
8.00%, 12/15/12 (b)		500		511
Telecom Italia Capital S.A.
7.18%, 06/18/19 (b)		1,000		1,135
Telefonica Emisiones S.A.U.
5.88%, 07/15/19 (b)		1,000		1,100
Time Warner Cable, Inc.
5.85%, 05/01/17 (b)		1,500		1,601
6.75%, 06/15/39 (b)		250		267
Verizon Communications, Inc.
8.75%, 11/01/18 (b)		2,000		2,543
8.95%, 03/01/39 (b)		1,000		1,370
Verizon Wireless Capital LLC
3.75%, 05/20/11 (b)		500		518
				17,517
Consumer Cyclical 0.8%
CVS Caremark Corp.
6.30%, 06/01/12 (a)(b)		1,000		861
Historic TW, Inc.
6.88%, 06/15/18		1,000		1,134
McDonald’s Corp.
5.00%, 02/01/19 (b)		1,000		1,084
PACCAR, Inc.
6.88%, 02/15/14 (b)		800		922
Viacom, Inc.
5.75%, 04/30/11 (b)		500		525
4.25%, 09/15/15 (b)		1,000		1,022
Wal-Mart Stores, Inc.
6.20%, 04/15/38		2,000		2,267
				7,815
Consumer Non-Cyclical 2.5%
Abbott Laboratories
6.00%, 04/01/39 (b)		1,000		1,112
Amgen, Inc.
5.70%, 02/01/19 (b)		1,000		1,113
Anheuser-Busch InBev Worldwide, Inc.
4.13%, 01/15/15 (b)(c)		1,000		1,031
5.38%, 01/15/20 (b)(c)		1,000		1,051
Bottling Group LLC
6.95%, 03/15/14 (b)		500		589
5.13%, 01/15/19 (b)		500		538
Coca-Cola Enterprises, Inc.
8.50%, 02/01/12		500		571
4.50%, 08/15/19 (b)		1,000		1,037
Diageo Capital PLC
7.38%, 01/15/14 (b)		750		883
Express Scripts, Inc.
6.25%, 06/15/14 (b)		500		555
General Mills, Inc.
5.20%, 03/17/15 (b)		2,000		2,200
Mead Johnson Nutrition Co.
3.50%, 11/01/14 (b)		1,000		1,018
5.90%, 11/01/39 (b)		500		514
Medco Health Solutions, Inc.
6.13%, 03/15/13 (b)		1,000		1,091
PepsiCo, Inc.
7.90%, 11/01/18 (b)		500		636
Pfizer, Inc.
5.35%, 03/15/15 (b)		1,000		1,120
7.20%, 03/15/39 (b)		1,000		1,276
Quest Diagnostics, Inc.
4.75%, 01/15/20 (b)		500		505
Reynolds American, Inc.
7.25%, 06/01/13 (b)		500		553
6.75%, 06/15/17 (b)		600		627
7.25%, 06/15/37 (b)		150		152
Safeway, Inc.
6.25%, 03/15/14 (b)		600		674

3

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
7.25%, 02/01/31 (b)		150		181
The Kroger Co.
3.90%, 10/01/15 (b)		1,000		1,035
Thermo Fisher Scientific, Inc.
3.25%, 11/18/14 (b)(c)		1,000		1,010
Watson Pharmaceuticals, Inc.
5.00%, 08/15/14 (b)		300		312
6.13%, 08/15/19 (b)		500		532
Wyeth
6.95%, 03/15/11 (b)		1,000		1,077
Zimmer Holdings, Inc.
5.75%, 01/01/40 (b)		200		206
				23,199
Energy 1.2%
Apache Corp.
6.90%, 09/15/18 (b)		400		484
Baker Hughes, Inc.
6.50%, 11/15/13 (b)		100		115
7.50%, 11/15/18 (b)		400		495
BP Capital Markets PLC
3.88%, 03/10/15 (b)		1,000		1,055
ConocoPhillips
6.00%, 01/15/20 (b)		1,000		1,126
Exelon Generation Co., LLC
5.20%, 10/01/19 (b)		1,000		1,037
Halliburton Co.
7.45%, 09/15/39 (b)		500		634
Husky Energy, Inc.
7.25%, 12/15/19 (b)		250		293
Nexen, Inc.
6.20%, 07/30/19 (b)		500		536
Occidental Petroleum Corp.
7.00%, 11/01/13 (b)		750		880
Shell International Finance BV
6.38%, 12/15/38 (b)		500		582
Statoil ASA
2.90%, 10/15/14 (b)		2,000		2,046
Valero Energy Corp.
10.50%, 03/15/39 (b)		200		264
Weatherford International Ltd.
9.63%, 03/01/19 (b)		250		313
XTO Energy, Inc.
6.75%, 08/01/37 (b)		1,000		1,114
				10,974
Technology 0.7%
Agilent Technologies, Inc.
6.50%, 11/01/17 (b)		1,000		1,070
Cisco Systems, Inc.
4.45%, 01/15/20 (b)		750		764
Hewlett-Packard Co.
6.13%, 03/01/14 (b)		700		799
International Business Machines Corp.
7.63%, 10/15/18 (b)		1,000		1,266
Microsoft Corp.
4.20%, 06/01/19		500		522
Nokia OYJ
6.63%, 05/15/39 (b)		500		564
Oracle Corp.
3.75%, 07/08/14 (b)		1,000		1,052
Xerox Corp.
5.65%, 05/15/13 (b)		500		533
				6,570
Transportation 0.4%
Burlington Northern Santa Fe Corp.
7.00%, 02/01/14 (b)		700		813
5.65%, 05/01/17 (b)		1,000		1,097
Union Pacific Corp.
5.75%, 11/15/17 (b)		700		765
United Parcel Service, Inc.
6.20%, 01/15/38 (b)		750		863
				3,538
				86,757
Utilities 2.2%
Electric 1.5%
Appalachian Power Co.
7.95%, 01/15/20 (b)		600		740
Dominion Resources, Inc.
8.88%, 01/15/19 (b)		600		770
Duke Energy Corp.
7.00%, 11/15/18 (b)		1,000		1,213
FirstEnergy Solutions Corp.
6.80%, 08/15/39 (b)		1,000		1,043
National Rural Utilities Cooperative Finance Corp.
3.88%, 09/16/15 (b)		1,000		1,039
Nevada Power Co.
7.13%, 03/15/19 (b)		1,500		1,725
Nisource Finance Corp.
10.75%, 03/15/16 (b)		500		606
Ohio Edison Co.
8.25%, 10/15/38 (b)		500		664
Pacific Gas & Electric Co.
8.25%, 10/15/18 (b)		1,500		1,899
Pacificorp
6.00%, 01/15/39 (b)		2,000		2,198
Southern California Edison Co.
5.75%, 03/15/14 (b)		1,500		1,682
				13,579
Natural Gas 0.7%
Energy Transfer Partners LP
9.00%, 04/15/19 (b)		500		611
Enterprise Products Operating LLC
6.30%, 09/15/17 (b)		1,000		1,105
Kinder Morgan Energy Partners LP
7.13%, 03/15/12 (b)		500		552
6.85%, 02/15/20 (b)		500		568
6.95%, 01/15/38 (b)		500		542
Magellan Midstream Partners LP
6.40%, 07/15/18 (b)		1,000		1,102

4

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Sempra Energy
6.00%, 10/15/39 (b)		500		498
Southern Natural Gas Co.
5.90%, 04/01/17 (b)(c)		1,000		1,056
Williams Cos., Inc.
8.75%, 01/15/20 (b)		500		586
				6,620
				20,199
Total Corporate Bonds (Cost $156,692)				170,598
U.S. Government and Government Agencies 36.5% of net assets
U.S. Government Agency Guaranteed 1.4%
General Electric Capital Corp., (FDIC Insured)
3.00%, 12/09/11 (d)		2,000		2,084
JPMorgan Chase & Co., (FDIC Insured)
3.13%, 12/01/11 (d)		3,500		3,656
Morgan Stanley, (FDIC Insured)
2.25%, 03/13/12 (d)		2,500		2,568
The Goldman Sachs Group, Inc., (FDIC Insured)
3.25%, 06/15/12 (d)		1,000		1,053
Wells Fargo & Co., (FDIC Insured)
3.00%, 12/09/11 (d)		4,000		4,169
				13,530
U.S. Government Agency Securities 7.6%
Fannie Mae
6.25%, 02/01/11		1,001		1,058
1.75%, 03/23/11		3,000		3,050
3.63%, 08/15/11		4,000		4,203
1.88%, 10/29/12 (b)		3,000		3,016
3.00%, 10/29/14 (b)		3,000		3,029
4.38%, 10/15/15		2,000		2,197
5.38%, 06/12/17		4,000		4,598
6.63%, 11/15/30		1,500		1,886
Federal Farm Credit Bank
1.88%, 12/07/12		2,000		2,030
3.00%, 09/22/14		2,500		2,580
Federal Home Loan Bank
3.63%, 09/16/11		5,700		6,004
2.10%, 08/10/12 (b)		2,000		2,006
1.63%, 11/21/12		1,500		1,515
3.63%, 05/29/13		3,000		3,210
3.63%, 10/18/13		1,000		1,070
5.00%, 11/17/17		2,000		2,227
5.50%, 07/15/36		1,000		1,072
Freddie Mac
2.00%, 03/16/11 (b)		5,000		5,019
3.88%, 06/29/11		3,000		3,159
2.13%, 09/21/12		6,500		6,653
3.25%, 02/18/14 (b)		2,950		2,968
4.75%, 11/17/15		4,000		4,464
4.88%, 06/13/18		2,000		2,213
Tennessee Valley Authority
4.65%, 06/15/35		1,000		937
				70,164
U.S. Treasury Obligations 27.5%
U.S. Treasury Bonds
6.25%, 08/15/23		3,000		3,802
6.00%, 02/15/26		8,000		10,018
5.25%, 02/15/29		7,000		8,103
5.38%, 02/15/31		2,000		2,355
4.50%, 02/15/36		5,000		5,261
4.50%, 08/15/39		8,330		8,754
U.S. Treasury Notes
1.50%, 10/31/10		1,675		1,694
0.88%, 01/31/11		2,000		2,013
1.13%, 06/30/11		300		303
1.00%, 07/31/11		1,800		1,815
4.88%, 07/31/11		46,000		49,382
1.13%, 01/15/12		10,000		10,081
1.38%, 02/15/12		4,000		4,054
1.38%, 03/15/12		6,000		6,080
1.38%, 05/15/12		10,000		10,126
1.88%, 06/15/12		4,000		4,101
1.50%, 07/15/12		10,000		10,158
1.75%, 08/15/12		1,250		1,276
1.38%, 10/15/12		14,900		15,043
1.38%, 11/15/12		7,800		7,864
2.75%, 10/31/13		2,745		2,875
2.25%, 05/31/14		700		714
2.63%, 06/30/14		850		880
2.63%, 07/31/14		8,000		8,278
2.38%, 08/31/14		2,575		2,632
2.38%, 09/30/14		6,350		6,483
2.38%, 10/31/14		2,985		3,042
2.13%, 11/30/14		8,000		8,048
4.00%, 02/15/15		10,000		10,961
3.25%, 07/31/16		14,000		14,604
3.00%, 08/31/16		100		103
3.00%, 09/30/16		3,000		3,070
3.13%, 10/31/16		3,000		3,089
4.63%, 02/15/17		3,000		3,378
4.50%, 05/15/17		3,000		3,349
4.25%, 11/15/17		5,000		5,480
4.00%, 08/15/18		3,000		3,212
3.75%, 11/15/18		3,000		3,147
3.38%, 11/15/19		9,400		9,541
				255,169
Total U.S. Government and Government Agencies (Cost $326,300)				338,863

5

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Commercial Mortgage Backed Securities 3.3% of net assets
Banc of America Commercial Mortgage, Inc.
Series 2005-3 Class AJ
4.77%, 12/01/09 (a)(b)		400		293
Series 2006-3 Class AM
6.01%, 12/01/09 (a)(b)		800		579
Series 2006-1 Class A2
5.33%, 09/10/45 (b)		4,400		4,458
Series 2007-1 Class A4
5.45%, 01/15/49 (b)		4,000		3,542
Bear Stearns Commercial Mortgage Securities
Series 2005-PR10 Class A4
5.41%, 12/11/40 (b)		6,000		6,037
Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2005-CD1 Class A3
5.40%, 12/01/09 (a)(b)		4,200		4,280
Credit Suisse Mortgage Capital Certificates
Series 2007-C5 Class A3
5.69%, 12/01/09 (a)(b)		315		296
Series 2007-C5 Class A4
5.70%, 12/01/09 (a)(b)		900		721
Series 2006-C1 Class AM
5.73%, 12/01/09 (a)(b)		650		540
GE Capital Commercial Mortgage Corp.
Series 2007-C1 Class AAB
5.48%, 12/10/49 (b)		135		127
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		3,000		2,568
GS Mortgage Securities Corp II
Series 2006-GG6 Class A4
5.55%, 12/01/09 (a)(b)		1,100		995
Series 2006-GG8 Class AJ
5.62%, 11/10/39 (b)		1,000		526
JP Morgan Chase Commercial Mortgage Securities Corp.
Series 2007-LD12 Class A3
6.19%, 12/01/09 (a)(b)		2,000		1,920
Series 2006-LDP9 Class A2S
5.30%, 05/15/47 (b)		1,000		946
Series 2007-LD12 Class A2
5.83%, 02/15/51 (b)		75		76
LB-UBS Commercial Mortgage Trust
Series 2005-C3 Class AJ
4.84%, 07/15/40 (b)		241		191
Merrill Lynch Mortgage Trust
Series 2005-LC1 Class AM
5.44%, 12/01/09 (a)(b)		700		604
Morgan Stanley Capital I
Series 2007-IQ14 Class AAB
5.65%, 12/01/09 (a)(b)		2,290		2,233
Total Commercial Mortgage Backed Securities (Cost $30,278)				30,932
Asset-Backed Obligations 0.5% of net assets
Chase Issuance Trust
Series 2007-A17 Class A
5.12%, 10/15/14 (b)		2,900		3,157
Marriott Vacation Club Owner Trust
Series 2007-2A Class B
6.06%, 10/20/29 (b)		793		694
Nissan Auto Receivables Owner Trust
Series 2008-B Class A4
5.05%, 11/17/14 (b)		1,000		1,066
Total Asset-Backed Obligations (Cost $4,721)				4,917
Foreign Securities 4.4% of net assets
Foreign Agencies 1.7%
Canada 0.7%
Export Development Canada
1.75%, 09/24/12		6,000		6,071
Cayman Islands 0.1%
Petrobras International Finance Co.
5.75%, 01/20/20 (b)		1,000		1,024
Germany 0.6%
KFW Bankengruppe
2.00%, 01/17/12		3,000		3,063
Kreditanstalt fuer Wiederaufbau
3.50%, 03/10/14		2,500		2,639
				5,702
Mexico 0.2%
Petroleos Mexicanos
4.83%, 03/15/15 (b)		1,000		1,007
8.00%, 05/03/19 (b)		400		472
				1,479
Republic of Korea 0.1%
Export-Import Bank of Korea
8.13%, 01/21/14		500		585
Korea Development Bank
8.00%, 01/23/14		500		582
				1,167
				15,443

6

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Foreign Local Government 0.5%
Canada 0.5%
Province of Ontario Canada
3.50%, 07/15/13		4,000		4,216
Sovereign 1.1%
Brazil 0.3%
Brazilian Government International Bond
6.00%, 01/17/17 (b)		3,000		3,303
Canada 0.1%
Canada Government International Bond
2.38%, 09/10/14		1,500		1,517
Italy 0.3%
Republic of Italy
6.88%, 09/27/23		250		302
2.13%, 10/05/12		2,500		2,533
				2,835
Mexico 0.3%
United Mexican States
5.95%, 03/19/19 (b)		2,000		2,178
Mexico Government International Bond
6.75%, 09/27/34		250		279
				2,457
Peru 0.1%
Peruvian Government International Bond
7.13%, 03/30/19		500		589
				10,701
Supranational 1.1%
European Investment Bank
1.75%, 09/14/12		6,000		6,063
Inter-American Development Bank
3.00%, 04/22/14		2,000		2,079
3.88%, 09/17/19		2,000		2,070
				10,212
Total Foreign Securities (Cost $39,284)				40,572
Municipal Bonds 0.3% of net assets
Fixed-Rate Obligations 0.3%
Illinois
GO Bonds (Pension Funding) Series 2003
5.10%, 06/01/33		3,000		2,712
	Number of		Value
Security	Shares		($ x 1,000)
Other Investment Company 1.9% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		17,079,722		17,080
Total Other Investment Company (Cost $17,080)				17,080
Issuer	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Short-Term Investments 0.0% of net assets
U.S. Treasury Obligations 0.0%
U.S. Treasury Bills
0.29%, 12/24/09		200		200
0.34%, 12/31/09		100		100
Total Short-Term Investments (Cost $300)				300

End of Investments.

(All dollar amounts are x 1,000)
At 11/30/09 the tax basis cost of the fund’s investments was $907,515 and the unrealized appreciation and depreciation were $43,421 and ($1,256), respectively, with a net appreciation of $42,165.
(a)	Variable-rate security.
(b)	Callable security.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $5,676 or 0.6% of net assets.
(d)	This debt is guaranteed under the FDIC Temporary Liquidity Guarantee Program, and the FDIC has stated that this debt is backed by the full faith and credit of the United States.

7

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Mortgage-Backed Securities(a)	$	—	$	343,706	$	—	$	343,706
Corporate Bonds(a)		—		162,783		—		162,783
Industrial
Consumer Cyclical		—		6,954		861		7,815
U.S. Government and Government Agencies(a)		—		338,863		—		338,863
Commercial Mortgage Backed Securities		—		30,932		—		30,932
Asset-Backed Obligations		—		4,917		—		4,917
Foreign Securities(a)		—		40,572		—		40,572
Municipal Bonds(a)		—		2,712		—		2,712
Other Investment Company		17,080		—		—		17,080
Short-Term Investments(a)		—		300		—		300
Total	$	17,080	$	931,739	$	861	$	949,680

*	The fund had no Other Financial Instruments.
(a)	as categorized in Portfolio Holdings

8

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

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

								Change in							Balance as
	Balance as		Accrued		Realized			Unrealized		Net					of
Investments in	of August		Discounts		Gain			Appreciation		Purchases			Net Transfers		November
Securities	31, 2009		(Premiums)		(Loss)			(Depreciation)		(Sales)			in (out)		30, 2009
Corporate Bonds	$	1,249	$	—		($240	)	$	512		($1,053	)	$	393	$	861
Total	$	1,249	$	—		($240	)	$	512		($1,053	)	$	393	$	861

9

Schwab Investments
Schwab GNMA Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost	Value
Holdings by Category				($ x 1,000)	($ x 1,000)
	95.3	%	Mortgage-Backed Securities	344,715	354,086
	9.1	%	Other Investment Company	33,589	33,589
	104.4	%	Total Investments	378,304	387,675
	(4.4	)%	Other Assets and Liabilities, Net		(16,294	)
	100.0	%	Net Assets		371,381

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
Mortgage-Backed Securities 95.3% of net assets
Collateralized Mortgage Obligations 0.0%
Vendee Mortgage Trust
Series 1995-3 Class 1Z
7.25%, 09/15/25 (b)		85		94
U.S. Government Agency Mortgages 95.3%
Fannie Mae
5.50%, 09/01/14 to 09/01/17		875		935
6.00%, 03/01/22		1,028		1,121
6.10%, 02/01/29		70		76
6.25%, 06/01/29		70		76
6.50%, 04/01/31		291		317
Fannie Mae Grantor Trust
6.50%, 07/25/42 (b)		161		175
7.00%, 01/25/44 (b)		182		202
Fannie Mae REMICS
4.50%, 10/25/15		557		560
5.50%, 10/25/24		298		299
6.00%, 04/25/28 to 05/05/31		5,463		5,504
7.00%, 09/25/22 to 01/25/42		1,268		1,409
Fannie Mae Whole Loan
6.50%, 02/25/44 (b)		185		202
7.00%, 10/25/42 (b)		102		112
Freddie Mac
5.50%, 04/01/16		1,407		1,519
Freddie Mac Gold
5.50%, 01/01/17 to 02/01/24		9,562		10,291
Freddie Mac REMICS
3.75%, 12/15/11 (b)		255		258
4.00%, 01/15/16 to 04/15/28(b)		4,010		4,058
4.50%, 01/15/25 to 11/15/25(b)		438		441
5.00%, 06/15/24 to 04/15/27(b)		765		776
5.50%, 06/15/25 to 10/15/26(b)		1,025		1,047
6.00%, 05/15/18 to 04/15/27(b)		2,136		2,180
6.50%, 03/15/14 (b)(c)		418		33
Ginnie Mae
3.63%, 12/01/09 (a)		161		166
3.88%, 12/01/09 (a)		78		80
4.00%, 12/01/09 (a)		915		940
4.00%, 10/17/29 to 10/20/33		827		863
4.13%, 12/01/09 (a)		94		96
4.38%, 12/01/09 (a)		482		497
4.50%, 12/01/09 (a)		79		81
4.50%, 06/30/12 to 05/15/39		19,523		20,279
5.00%, 03/24/12 to 07/20/36		92,699		98,425
5.50%, 09/20/13 to 07/15/38		75,753		81,245
6.00%, 02/20/12 to 11/15/39		61,677		66,577
6.10%, 06/20/28 to 09/15/31		3,366		3,649
6.15%, 04/20/29 to 04/20/30		2,171		2,355
6.25%, 10/20/28 to 03/20/30		2,879		3,131
6.50%, 12/20/11 to 08/20/34		15,259		16,616
7.00%, 09/15/10 to 04/15/39		6,399		7,027
7.10%, 12/15/30		68		77
7.50%, 04/15/11 to 11/15/37		638		728
8.00%, 10/15/11 to 06/15/30		144		165
8.50%, 08/20/25 to 01/20/30		23		26
9.00%, 09/20/15 to 09/20/30		716		797
13.00%, 07/20/14		—		—
Ginnie Mae TBA
4.50%, 12/01/39		15,000		15,427
5.00%, 12/01/39		3,000		3,154
				353,992
Total Mortgage-Backed Securities (Cost $344,715)				354,086
		Number of	Value
Security	Shares		($ x 1,000)
Other Investment Company 9.1% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		33,589,185		33,589
Total Other Investment Company (Cost $33,589)				33,589

End of Investments.

1

Schwab GNMA Fund

Portfolio Holdings (Unaudited) continued

(All dollar amounts are x 1,000)

At 11/30/09 the tax basis cost of the fund’s investments was $378,304 and the unrealized apprecation and depreciation were $9,407 and ($36), respectively, with a net unrealized appreciation of $9,371.

(a)	Variable-rate security.
(b)	Callable security.
(c)	Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Mortgage-Backed Securities(a)	$	—	$	354,086	$	—	$	354,086
Other Investment Company		33,589		—		—		33,589
Total	$	33,589	$	354,086	$	—	$	387,675

*	The fund had no Other Financial Instruments.
(a)	as categorized in the complete schedule of Holdings

2

Schwab Investments
Schwab Inflation-Protected Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	96.4	%	U.S. Government Securities		262,788		281,599
	2.8	%	Other Investment Company		8,083		8,083
	0.1	%	Short-Term Investments		200		200
	99.3	%	Total Investments		271,071		289,882
	0.7	%	Other Assets and Liabilities, Net				2,138
	100.0	%	Net Assets				292,020

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
U.S. Government Securities 96.4% of net assets
U.S. Treasury Obligations 96.4%
U.S. Treasury Inflation Protected Securities
2.38%, 04/15/11		16,321		16,938
2.00%, 04/15/12		9,940		10,475
3.00%, 07/15/12		3,603		3,911
0.63%, 04/15/13		1,533		1,570
1.88%, 07/15/13		16,462		17,524
2.00%, 01/15/14		36,087		38,649
1.63%, 01/15/15		11,310		11,957
1.88%, 07/15/15		11,103		11,920
2.00%, 01/15/16		17,927		19,324
2.63%, 07/15/17		9,587		10,793
1.63%, 01/15/18		19,071		20,028
1.38%, 07/15/18		11,017		11,361
2.13%, 01/15/19		8,047		8,785
1.88%, 07/15/19		7,080		7,590
2.38%, 01/15/25		15,834		17,404
2.00%, 01/15/26		9,891		10,372
2.38%, 01/15/27		10,174		11,204
1.75%, 01/15/28		3,608		3,627
3.63%, 04/15/28		10,896		14,047
2.50%, 01/15/29		17,100		19,187

	Number of		Value
Security	Shares		($ x 1,000)
3.88%, 04/15/29		6,766		9,089
3.38%, 04/15/32		4,502		5,844
Total U.S. Government Securities (Cost $262,788)				281,599
Other Investment Company 2.8% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		8,082,976		8,083
Total Other Investment Company (Cost $8,083)				8,083

Issuer	Face Amount		Value
Rate, Maturity Date*	($ x 1,000)		($ x 1,000)
Short-Term Investments 0.1% of net assets
U.S. Treasury Obligations 0.1%
U.S. Treasury Bills
0.12%, 05/13/10 (a)		100		100
0.15%, 05/13/10 (a)		100		100
Total Short-Term Investments (Cost $200)				200

End of Investments.

(All dollar amounts are x 1,000)

At 11/30/09, the tax basis cost of the fund’s investments was $272,737, and the unrealized appreciation and depreciation were $17,145 and ($0), respectively, with a net unrealized appreciation of $17,145.

(a) All or a portion of this security is held as collateral for open futures contracts.

1

Schwab Inflation-Protected Fund

Portfolio Holdings (Unaudited) continued

In addition to the above, the fund held the following at 11/30/09.

				Contract		Unrealized
	Number of			Value		Losses
	Contracts			($ x 1,000)		($ x 1,000)
Futures Contracts
10 Years, Short, U.S. Treasury Note, expires 03/22/10		(50	)		5,997		(58	)

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
U.S. Government Securities(a)	$	—	$	281,599	$	—	$	281,599
Other Investment Company		8,083		—		—		8,083
Short-Term Investments(a)		—		200		—		200

2

Schwab Inflation-Protected Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices
	in Active			Significant
	Markets for			Other		Significant
	Identical			Observable		Unobservable
	Assets			Inputs		Inputs
Description	(Level 1)			(Level 2)		(Level 3)		Total
Total	$	8,083		$	281,799	$	—	$	289,882
LIABILITIES VALUATION INPUT
Other Financial Instruments
Futures Contracts *	$	(58	)	$	—	$	—	$	(58	)

*	Futures contracts are not included in Investments and are valued at the unrealized appreciation or depreciation.
(a)	as categorized in Portfolio Holdings

The Fund entered into futures contracts during the period ended November 30, 2009. The fund invests in futures contracts in order to reduce the effects of uninvested cash on performance. The fund may also use futures contracts to manage interest rate exposures.

3

Schwab Investments
Schwab YieldPlus Fund^TM

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	64.9	%	U.S. Government and Government Agencies		130,048		131,346
	2.2	%	Foreign Securities		4,505		4,508
	31.0	%	Corporate Bonds		62,673		62,740
	0.3	%	Other Investment Company		594		594
	98.4	%	Total Investments		197,820		199,188
	1.6	%	Other Assets and Liabilities, Net				3,173
	100.0	%	Net Assets				202,361

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
U.S. Government and Government Agencies 64.9% of net assets
U.S. Government Agency Securities 24.8%
Fannie Mae
1.00%, 11/23/11		15,000		15,078
Federal Home Loan Banks
0.75%, 04/14/10 (a)(b)		10,000		10,008
0.80%, 05/06/11		25,000		25,110
				50,196
U.S. Treasury Obligations 40.1%
U.S. Treasury Notes
2.88%, 06/30/10		55,000		55,879
1.13%, 06/30/11		25,000		25,271
				81,150
Total U.S. Government and Government Agencies (Cost $130,048)				131,346
Foreign Securities 2.2% of net assets
Foreign Agency 0.5%
Republic of Korea 0.5%
Export-Import Bank of Korea
4.63%, 03/16/10		1,000		1,008
Foreign Local Government 1.7%
Canada 1.7%
Province of Ontario Canada
0.42%, 02/19/10 (a)		3,500		3,500
Total Foreign Securities (Cost $4,505)				4,508
Corporate Bonds 31.0% of net assets
Finance 16.0%
Banking 11.1%
American Express Centurion Bank
0.30%, 12/23/09 (a)		2,000		1,997
Australia & New Zealand Banking Group Ltd.
0.58%, 01/21/10 (a)		3,500		3,507
Citigroup, Inc.
0.31%, 12/28/09 (a)		1,500		1,500
National City Bank
4.50%, 03/15/10		393		396
National City Corp.
0.47%, 12/16/09 (a)		2,000		1,993
Santander S.A.
0.68%, 01/21/10 (a)(c)		2,000		2,004
Sovereign Bancorp, Inc.
4.80%, 09/01/10		2,000		2,055
Svenska Handelsbanken AB
1.30%, 12/14/09 (a)(c)		4,000		3,981
Wachovia Corp.
0.41%, 12/01/09 (a)		1,000		1,000
Westpac Banking Corp.
0.58%, 01/21/10 (a)(c)		4,000		3,999
				22,432
Finance Company 1.3%
General Electric Capital Corp.
0.42%, 12/15/09 (a)		132		132
HSBC Finance Corp.
0.38%, 12/14/09 (a)		2,058		2,055
International Lease Finance Corp.
5.63%, 09/15/10		500		488
				2,675
Insurance 2.6%
Lincoln National Corp.
0.38%, 12/14/09 (a)		1,000		996
Metropolitan Life Global Funding I
1.04%, 12/29/09 (a)(c)		3,000		3,005
Pricoa Global Funding I
0.49%, 01/15/10 (a)(c)		295		295

1

Schwab YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Security	Face Amount		Value
Rate, Maturity Date	($ x 1,000)		($ x 1,000)
UnitedHealth Group, Inc.
1.58%, 02/07/10 (a)		1,000		1,004
				5,300
Real Estate Investment Trust 1.0%
Westfield Capital Corp Ltd.
4.38%, 11/15/10 (b)(c)		2,000		2,029
				32,436
Industrial 9.0%
Communications 4.1%
Comcast Corp.
5.85%, 01/15/10 (b)		1,000		1,006
Deutsche Telekom International Finance
8.50%, 06/15/10		1,000		1,039
Telecom Italia Capital S.A.
4.00%, 01/15/10 (b)		426		428
4.88%, 10/01/10 (b)		1,000		1,028
Telefonica Europe BV
7.75%, 09/15/10 (b)		1,500		1,579
Verizon Global Funding Corp.
7.25%, 12/01/10 (b)		3,000		3,188
				8,268
Consumer Cyclical 1.5%
CVS Caremark Corp.
0.66%, 12/01/09 (a)(b)		1,500		1,501
International Game Technology
2.60%, 12/15/36 (b)		1,500		1,505
				3,006
Consumer Non-Cyclical 1.2%
Hospira, Inc.
0.76%, 12/30/09 (a)(b)		1,500		1,500
Reynolds American, Inc.
1.00%, 12/15/09 (a)(b)		1,000		989
				2,489
Technology 1.5%
Affiliated Computer Services, Inc.
4.70%, 06/01/10 (b)		1,000		1,007
International Business Machines Corp.
0.32%, 02/04/10 (a)		2,000		2,004
				3,011
Transportation 0.7%
Erac USA Finance Co.
7.95%, 12/15/09 (c)		1,510		1,513
				18,287
Utilities 6.0%
Electric 5.5%
Dominion Resources, Inc.
1.34%, 12/17/09 (a)		395		397
5.13%, 12/15/09 (b)		900		900
FPL Group Capital, Inc.
0.67%, 02/09/10 (a)		2,000		1,999
National Rural Utilities Cooperative Finance Corp.
1.06%, 01/04/10 (a)		2,845		2,856
Nisource Finance Corp.
7.88%, 11/15/10 (b)		1,400		1,473
Southern Co.
0.68%, 01/21/10 (a)		3,500		3,512
				11,137
Natural Gas 0.5%
Williams Cos., Inc.
2.29%, 01/04/10 (a)(c)		880		880
				12,017
Total Corporate Bonds (Cost $62,673)				62,740

	Number of		Value
Security	Shares		($ x 1,000)
Other Investment Company 0.3% of net assets
State Street Institutional Liquid Reserves Fund — Institutional Class		593,700		594
Total Other Investment Company (Cost $594)				594

End of Investments.

(All dollar amounts are x 1,000)

At 11/30/09 the tax basis cost of the fund’s investments was $197,820 and the unrealized appreciation and depreciation were $1,415 and ($47), respectively, with a net unrealized appreciation of $1,368.

(a)	Variable-rate security.
(b)	Callable security.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $17,706 or 8.7% of net assets.

2

Schwab YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
U.S. Government and Government Agencies(a)	$	—	$	131,346	$	—	$	131,346
Foreign Securities(a)		—		4,508		—		4,508
Corporate Bonds(a)		—		62,740		—		62,740
Other Investment Company		594		—		—		594
Total	$	594	$	198,594	$	—	$	199,188

*	The fund had no Other Financial Instruments.
(a)	as categorized in the complete schedule of Holdings

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

3

Schwab YieldPlus Fund

Portfolio Holdings (Unaudited) continued

						Change in								Balance as
	Balance as		Realized			Unrealized					Net			of
	of August		Gain			Appreciation		Net Purchases			Transfers			November
Investments in Securities	31, 2009		(Loss)			(Depreciation)		(Sales)			in (out)			30, 2009
Asset-Backed Obligations	$	11,383	$	(8,000	)	$	8,617	$	(12,000	)	$	—		$	—
Corporate Bonds		1,500		—			6		—			(1,506	)		—
Total	$	12,883	$	(8,000	)	$	8,623	$	(12,000	)	$	(1,506	)	$	—

4

Schwab Investments
Schwab Tax-Free YieldPlus Fund™

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	29.4	%	Fixed-Rate Obligations		11,307		11,392
	70.1	%	Variable-Rate Obligations		37,315		27,148
	99.5	%	Total Investments		48,622		38,540
	0.5	%	Other Assets and Liabilities, Net				201
	100.0	%	Net Assets				38,741

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Fixed-Rate Obligations 29.4% of net assets
CALIFORNIA 5.3%
San Francisco
GO Bonds (San Francisco General Hospital) Series 2009A		4.00	%		06/15/10			2,000		2,036
KANSAS 2.6%
Junction City
GO Temporary Notes Series 2009B		4.00	%		06/01/10			1,000		1,013
LOUISIANA 1.5%
Louisiana Public Facilities Auth
Refunding RB (Christus Health) Series 2009A		5.00	%		07/01/11			550		573
MICHIGAN 0.7%
West Bloomfield SD
GO Unlimited Tax Refunding Bonds Series 2009		5.00	%		05/01/10	(a)		260		265
MISSOURI 2.9%
Hanley Road & North of Folk Ave Transportation Development District
Transportation Sales Tax RB Series 2005		5.00	%		10/01/12	(a)		1,000		1,116

1

Schwab Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
NEW JERSEY 7.4%
Montville Township
GO Refunding Bonds		3.75	%		07/15/11			505		531
Princeton Township
Refunding Bonds		4.00	%		09/01/10			640		658
Refunding Bonds		4.00	%		09/01/11			125		132
Somerset Cnty
GO Refunding Bonds Series 2009		2.25	%		12/01/10			1,515		1,544
										2,865
NEW YORK 1.3%
Triborough Bridge & Tunnel Auth
Sub RB Series 2003A		3.25	%		11/15/10			500		514
OKLAHOMA 0.8%
Grady Cnty School Finance Auth
Educational Facilities Lease RB (Bridge Creek Public Schools) Series 2008		4.00	%		09/01/11			290		301
TEXAS 4.3%
Denton
GO Refunding Bonds Series 2009		5.00	%		02/15/11			150		158
Texas
TRAN Series 2009		2.50	%		08/31/10			1,500		1,524
										1,682
WASHINGTON 2.6%
South Whidbey SD No. 206
Unlimited Tax GO Refunding Bonds Series 2009		3.00	%		12/01/10			1,000		1,027
Total Fixed-Rate Obligations  (Cost $11,307)										11,392
Variable-Rate Obligations 70.1% of net assets
ARIZONA 5.8%
Maricopa Cnty IDA
M/F Housing RB (AHF Affordable Housing Portfolio) Series 2003B		0.52	%		12/24/09	(d)(e)(f)(g)		6,755		2,256

2

Schwab Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
CALIFORNIA 20.1%
California
Economic Recovery Bonds Series 2004C3		0.21	%		12/01/09	(b)		1,500		1,500
California HFA
M/F Housing RB III Series 2000B		0.26	%		12/01/09	(b)		2,000		2,000
California Infrastructure & Economic Development Bank
Refunding RB (PG&E) Series 2009A		0.21	%		12/01/09	(a)		1,000		1,000
Modesto
Water Refunding Revenue COP Series 2008A		0.25	%		12/03/09	(a)(b)(c)		1,300		1,300
Orange Cnty Sanitation District
Refunding COP Series 2000A		0.26	%		12/01/09	(b)		1,000		1,000
Southern California Public Power Auth
Sub Refunding RB (Southern Transmission) Series 2001A		0.32	%		12/02/09	(a)(b)		1,000		1,000
										7,800
COLORADO 6.1%
Colorado Health Facilities Auth
RB (Exempla Northwest Medical Center) Series 2002A		0.72	%		12/03/09	(a)(b)(c)		1,480		1,480
Denver City & Cnty
Refunding COP Series 2008A2		0.19	%		12/01/09	(b)		895		895
										2,375
DISTRICT OF COLUMBIA 1.6%
Metropolitan Washington Airports Auth
Airport System RB Series 2009D1		0.25	%		12/03/09	(a)		600		600
INDIANA 1.5%
Indiana Health & Educational Facility Financing Auth
RB (Ascension Health) Series 2006 B4 & B6		0.22	%		12/01/09	(b)(c)		600		600
MASSACHUSETTS 10.5%
Massachusetts
GO Bonds Consolidated Loan Series 2006A		0.25	%		12/01/09	(b)		1,000		1,000
Massachusetts Health & Educational Facilities Auth
RB (New England Medical Center Hospitals) Series G2		1.29	%		01/04/10	(d)(e)(f)		3,400		3,060
										4,060
NEW JERSEY 2.6%
New Jersey Housing & Mortgage Finance Agency
M/F Housing RB Series 2		0.40	%		12/03/09	(a)		1,000		1,000

3

Schwab Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
NEW YORK 9.6%
New York City
GO Bonds Fiscal 2002 Series A6		0.21	%		12/01/09	(a)(b)		1,000		1,000
GO Bonds Fiscal 2008 Series J4		0.22	%		12/01/09	(b)(c)		200		200
GO Bonds Fiscal 2008 Series L5		0.22	%		12/01/09	(b)		1,000		1,000
New York State HFA
State Personal Income Tax RB Series 2005C		0.33	%		12/02/09	(b)		1,500		1,500
										3,700
OKLAHOMA 6.9%
Tulsa Cnty Industrial Auth
M/F Housing RB (AHF Affordable Housing Portfolio) Series 2003B		0.56	%		12/31/09	(d)(e)(f)(g)		8,000		2,672
PENNSYLVANIA 1.5%
Somerset Cnty
Bonds Series 2007		0.30	%		12/03/09	(a)(b)		585		585
TENNESSEE 3.9%
Clarksville Public Building Auth
Pooled Financing RB Series 2003		0.24	%		12/01/09	(a)		1,500		1,500
Total Variable-Rate Obligations  (Cost $37,315)										27,148

End of Investments.

(All dollar amounts are x 1,000)

At 11/30/09, the tax basis cost of the fund’s investments was $48,622 and the unrealized appreciation and depreciation were $84 and ($10,166), respectively, with a net unrealized depreciation of ($10,082).

(a)	Credit-enhanced security.
(b)	Liquidity-enhanced security.
(c)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,580 or 9.2% of net assets.
(d)	Illiquid security. At the period end, the value of these amounted to $7,988 or 20.6% of net assets.
(e)	Failed Auction Rate Bond – this security’s interest payments are adjusted periodically through an auction process. The process typically serves as a means for buying and selling the bond, and the maturity date listed in the portfolio holdings is the next auction date. Auctions that fail to attract enough buyers for all the bonds offered for sale are deemed to have “failed”. Although the auctions have failed, the issuer continues to pay a formula-based interest rate which resets at each scheduled auction.
(f)	Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(g)	Security is in default.
COP –	Certificate of participation
GO –	General obligation

4

Schwab Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

HFA –	Housing finance agency/authority
IDA –	Industrial development agency/authority
M/F –	Multi-family
RB –	Revenue bond
SD –	School district
TRAN –	Tax and revenue anticipation note

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Fixed-Rate Obligations(a)	$	—	$	11,392	$	—	$	11,392
Variable-Rate Obligations(a)				18,160				18,160
Arizona		—		—		2,256		2,256
Massachusetts		—		1,000		3,060		4,060
Oklahoma		—		—		2,672		2,672

5

Schwab Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Total	$	—	$	30,552	$	7,988	$	38,540

*	The fund had no Other Financial Instruments.
(a)	as categorized in the complete schedule of Holdings

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

						Change in
			Realized			Unrealized			Net			Balance as of
	Balance as of		Gain			Appreciation			Purchases			November
Investments in Securities	August 31, 2009		(Loss)			(Depreciation)			(Sales)			30, 2009
Variable-Rate Obligations	$	9,997	$	(59	)	$	(859	)	$	(1,091	)	$	7,988
Total	$	9,997	$	(59	)	$	(859	)	$	(1,091	)	$	7,988

6

Schwab Investments
Schwab Tax-Free Bond Fund™

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	96.5	%	Fixed-Rate Obligations		280,640		288,315
	5.5	%	Variable-Rate Obligations		16,312		16,417
	102.0	%	Total Investments		296,952		304,732
	(2.0	)%	Other Assets and Liabilities, Net				(6,031	)
	100.0	%	Net Assets				298,701

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Fixed-Rate Obligations 96.5% of net assets
ALABAMA 0.2%
Huntsville
Water Revenue Warrant Series 2008		5.00	%		11/01/15	(a)		400		467
ARIZONA 2.9%
Maricopa Cnty Elementary SD No. 17
Bonds Series 2008B		4.00	%		07/01/14	(a)		95		103
Maricopa Cnty IDA
Health Facility RB (Catholic Healthcare West) Series 2009B		5.00	%		07/02/12	(f)		3,000		3,131
Payson USD No.10
Bonds Series 2008B		3.00	%		07/01/28	(f)		1,375		1,412
Phoenix Civic Improvement Corp
Sr Lien Airport Refunding RB Series 2008C		5.00	%		07/01/13			425		469
Sr Lien Wastewater System Refunding RB Series 2008		5.50	%		07/01/24			540		606
Univ Medical Center Corp
Hospital RB Series 2009		5.00	%		07/01/13			590		613
Hospital RB Series 2009		5.00	%		07/01/14			615		639
Hospital RB Series 2009		5.00	%		07/01/15			295		305
Hospital RB Series 2009		5.50	%		07/01/16			350		369
Hospital RB Series 2009		6.00	%		07/01/18			500		551
Hospital RB Series 2009		5.75	%		07/01/19			350		379
										8,577

1

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
CALIFORNIA 15.3%
Anaheim Public Financing Auth
Lease Refunding RB Series 2008		5.00	%		08/01/17			955		1,058
California
Economic Recovery Refunding Bonds Series 2009A		5.00	%		07/01/19			5,000		5,280
Economic Recovery Refunding Bonds Series 2009A		5.00	%		07/01/22			2,000		2,032
Various Purpose GO Bonds		5.50	%		11/01/39			1,000		952
California Dept of Water Resources
Power Supply RB Series 2005G4		5.00	%		05/01/16	(f)		1,000		1,127
Water System RB Series AG		5.00	%		12/01/27	(e)		3,915		4,208
California Educational Facilities Auth
RB (California Institute of Technology) Series 2009		5.00	%		11/01/39	(f)		1,500		1,550
RB (Pitzer College) Series 2009		5.25	%		04/01/22			1,870		1,939
RB (Pitzer College) Series 2009		5.25	%		04/01/23			1,965		2,023
California Health Facilities Financing Auth
RB (Children’s Hospital Orange Cnty) Series 2009A		6.50	%		11/01/38	(f)		1,750		1,843
California Infrastructure & Economic Development Bank
RB (California Independent Systems Operator) Series 2009A		5.50	%		02/01/30	(f)		1,000		1,018
California State Public Works Board
Lease RB Series 2009I1		6.63	%		11/01/34	(e)		2,000		2,047
California Statewide Communities Development Auth
RB Series 2009		5.00	%		06/15/13			4,000		4,213
RB (St. Joseph Health System) Series 2000		4.50	%		07/01/18	(f)		2,590		2,710
RB (St. Joseph Health System) Series 2000		5.13	%		07/01/24			2,500		2,501
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25	%		06/01/13	(a)(f)		2,705		3,012
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2009A		4.00	%		04/01/16	(a)		200		211
Lease RB (Capital Equipment) Series 2009A		5.00	%		04/01/17	(a)		1,950		2,159
San Bernardino Cnty Transportation Auth
Sales Tax Revenue Notes (Limited Tax Bonds) Series 2009A		4.00	%		05/01/12			2,500		2,626
Univ of California
General RB Series 2009Q		5.25	%		05/15/26			3,000		3,298
										45,807
COLORADO 2.3%
Colorado Health Facilities Auth
RB (Catholic Health Initiatives) Series 2008 D1		5.00	%		10/01/14	(f)		1,000		1,080
RB (Catholic Health Initiatives) Series 2008 D1		6.00	%		10/01/23			350		382
RB (Catholic Health Initiatives) Series 2009A		5.00	%		07/01/16			5,000		5,392
										6,854

2

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
DISTRICT OF COLUMBIA 1.9%
District of Columbia
Income Tax Secured RB Series 2009A		5.25	%		12/01/27	(f)		2,000		2,210
District of Columbia Water & Sewer Auth
Public Utility Sr Lien RB Series 2009A		4.00	%		10/01/17			50		53
Public Utility Sr Lien RB Series 2009A		6.00	%		10/01/35	(f)		2,000		2,269
Metropolitan Washington Airports Auth
Airport System RB Series 2009B		5.00	%		10/01/18	(a)(f)		1,000		1,136
										5,668
FLORIDA 6.8%
Alachua Cnty Health Facilities Auth
RB (Shands Healthcare) Series 2008D1		6.25	%		12/01/18			500		546
Coral Gables Health Facilities Auth
Hospital RB (Baptist Health South Florida) Series 2004		5.00	%		08/15/14	(a)(f)		1,300		1,511
Highlands Cnty Health Facilities Auth
Hospital RB (Adventist Health System/Sunbelt) Series 2008A		6.10	%		11/15/13	(f)		1,000		1,109
Kissimmee Utility Auth
Electric System Sub Refunding RB Series 2003		5.25	%		10/01/18			250		281
Miami-Dade Cnty Educational Facilities Auth
RB (Univ of Miami) Series 2008A		5.25	%		04/01/16	(f)		1,100		1,223
Orange Cnty Health Facilities Auth
RB (Nemours Foundation) Series 2009A		4.00	%		01/01/13			600		625
RB (Nemours Foundation) Series 2009A		4.00	%		01/01/14			350		365
RB (Nemours Foundation) Series 2009A		4.00	%		01/01/15			440		457
RB (Nemours Foundation) Series 2009A		4.00	%		01/01/16			825		852
RB (Nemours Foundation) Series 2009A		4.00	%		01/01/17			560		571
RB (Nemours Foundation) Series 2009A		5.00	%		01/01/18			250		270
RB (Nemours Foundation) Series 2009A		5.00	%		01/01/19			545		587
RB (Nemours Foundation) Series 2009A		5.00	%		01/01/39			3,000		2,964
Orlando Utilities Commission
Water & Electric RB Series 1996A		3.75	%		10/01/13			1,900		2,019
Palm Beach Cnty
Water & Sewer RB (FPL Reclaimed Water Project) Series 2009		5.00	%		10/01/39			1,015		1,038
Palm Beach Cnty Solid Waste Auth
RB Series 2009		5.25	%		10/01/18	(a)		2,500		2,895
Pasco Cnty
Water & Sewer RB Series 2009A		5.00	%		10/01/16			400		451
Water & Sewer RB Series 2009A		5.00	%		10/01/18			250		279
Water & Sewer RB Series 2009A		4.00	%		10/01/19			250		259
Port St. Lucie
Refunding COP Series 2008		5.00	%		09/01/13			1,845		1,998
										20,300

3

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
GEORGIA 3.2%
Cobb Cnty & Marietta Water Auth
RB Series 2009		3.00	%		11/01/18			70		72
DeKalb Private Hospital Auth
Hospital RB (Children’s Healthcare of Atlanta) Series 2009		5.00	%		11/15/16	(e)		670		726
Hospital RB (Children’s Healthcare of Atlanta) Series 2009		5.00	%		11/15/17	(e)		500		538
Hospital RB (Children’s Healthcare of Atlanta) Series 2009		5.25	%		11/15/39	(e)		500		491
Fulton Cnty Development Auth
RB (Tuff Morehouse) Series 2002A		5.50	%		02/01/22	(f)		2,180		2,281
Macon-Bibb Cnty Hospital Auth
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		4.00	%		08/01/19			750		739
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		5.00	%		08/01/21			595		620
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		5.00	%		08/01/22			950		984
Metro Atlanta Rapid Transit Auth
Sales Tax RB Series 2009A		5.00	%		07/01/39			3,000		3,078
										9,529
ILLINOIS 0.6%
Illinois Finance Auth
Water Facilities RB (American Water Capital Corp) Series 2009		5.25	%		10/01/39			1,950		1,868
INDIANA 5.9%
Indiana Finance Auth
Health System Refunding RB (Sisters of St. Francis Health Services) Series 2008C		5.00	%		11/01/18			1,750		1,823
Hospital RB (Parkview Health System) Series 2009A		5.00	%		05/01/10			1,010		1,023
Hospital RB (Parkview Health System) Series 2009A		5.00	%		05/01/11			500		519
Indianapolis Local Public Improvement Bond Bank
Waterworks RB Series 2002A		5.45	%		07/01/17	(a)		10,000		12,187
St. Joseph Cnty
Educational Facilities RB (Univ of Notre Dame Du Lac) Series 2008		3.88	%		03/01/12			2,000		2,091
										17,643
IOWA 0.8%
Iowa Finance Auth
Health Facilities RB (Iowa Health System) Series 2005A		5.00	%		02/15/12			1,200		1,271
Iowa Higher Education Loan Auth
RB (Grinnell College) Series 2001		2.10	%		12/01/11			1,185		1,206
										2,477

4

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
KANSAS 1.1%
Kansas Development Finance Auth
Hospital RB (Adventist Health System/Sunbelt) Series 2009D		3.00	%		11/15/11			875		896
Hospital RB (Adventist Health System/Sunbelt) Series 2009D		3.50	%		11/15/12			305		315
Hospital RB (Adventist Health System/Sunbelt) Series 2009D		5.00	%		11/15/13			210		227
Hospital RB (Adventist Health System/Sunbelt) Series 2009D		5.00	%		11/15/14			450		485
Hospital RB (Adventist Health System/Sunbelt) Series 2009D		5.00	%		11/15/15			485		520
Wichita
Hospital Facilities Refunding & RB (Via Christi Health System) Series IIIA 2009		2.00	%		11/15/10			160		161
Hospital Facilities Refunding & RB (Via Christi Health System) Series IIIA 2009		4.50	%		11/15/12			750		794
										3,398
KENTUCKY 0.7%
Kentucky Economic Development Finance Auth
Hospital RB (Baptist Healthcare System) Series 2009A		5.00	%		08/15/18			1,000		1,101
RB (King’s Daughters Medical Center) Series 2008C		4.50	%		02/01/13			1,005		1,045
										2,146
LOUISIANA 2.2%
Louisiana Public Facilities Auth
Refunding RB (Christus Health) Series 2009A		5.00	%		07/01/11			2,400		2,500
Refunding RB (Christus Health) Series 2009A		5.00	%		07/01/12			3,775		3,998
										6,498
MARYLAND 0.1%
Maryland Community Development Administration
RB Series 1996A		5.88	%		07/01/16			140		140
MASSACHUSETTS 4.3%
Chatham
GO Refunding Bonds		4.00	%		07/01/13			285		314
GO Refunding Bonds		4.00	%		07/01/14			110		123
GO Refunding Bonds		5.00	%		07/01/16			250		295
GO Refunding Bonds		5.00	%		07/01/17			295		349
Massachusetts Bay Transportation Auth
Assessment Bonds Series 2004A		5.25	%		07/01/14	(a)(f)		7,000		8,218
Assessment Bonds Series 2005A		5.00	%		07/01/14			850		971
Massachusetts Development Finance Agency
RB (Boston College) Series Q1		4.00	%		07/01/16			950		1,026

5

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
RB (New England Conservatory of Music) Series 2008		4.00	%		07/01/12			120		122
RB (New England Conservatory of Music) Series 2008		4.00	%		07/01/13			290		292
RB (New England Conservatory of Music) Series 2008		4.00	%		07/01/15			375		368
Massachusetts Turnpike Auth
RB Series 1993A		5.00	%		01/01/20	(a)		725		848
										12,926
MICHIGAN 4.0%
Delta Cnty Economic Development Corp
Refunding RB (MeadWestvaco-Escanaba Paper) Series 2002		6.25	%		04/15/12	(a)		1,000		1,129
Michigan
Refunding Bonds (State Trunk Line Fund) Series 2009		5.00	%		11/01/22			3,000		3,259
Michigan Building Auth
Facilities Refunding & RB Series III		5.00	%		10/15/12	(a)		4,370		4,876
Michigan State Hospital Finance Auth
Refunding RB (Trinity Health) Series 2008 A1		5.25	%		12/01/15			1,500		1,635
Wayne Cnty Community College
Bonds Series 1999		5.50	%		07/01/19			1,000		1,012
										11,911
MINNESOTA 1.7%
Nobles Cnty
GO Temporary Water System Bonds Series 2009C		3.00	%		08/01/12			3,000		3,162
Southern Minnesota Muni Power Agency
Power Supply System RB Series 2009A		4.00	%		01/01/17			1,090		1,133
Power Supply System RB Series 2009A		5.50	%		01/01/24			405		438
Stewartville ISD #534
GO Refunding Bonds Series A		4.00	%		02/01/15			335		372
										5,105
MISSOURI 3.3%
Boone Cnty
Hospital RB (Boone Hospital Center) Series 2008		5.00	%		08/01/13	(f)		1,600		1,708
Hanley Road & North of Folk Ave Transportation Development District
Transportation Sales Tax RB Series 2005		5.00	%		10/01/12	(a)		1,260		1,406
Transportation Sales Tax RB Series 2005		5.40	%		10/01/12	(a)(f)		5,245		5,910
Missouri Health & Educational Facilities Auth
RB (SSM Health Care) Series 2002A		5.25	%		06/01/12			900		967
										9,991
NEVADA 2.2%
Clark Cnty Airport
Passenger Facility Charge Sub Lien RB Series 2008A		5.00	%		07/01/15			1,115		1,220
Clark Cnty SD
GO Limited Tax Building Bonds Series 2008A		5.00	%		06/15/23	(f)		2,500		2,664

6

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Nevada
RB (Motor Vehicle Fuel Tax) Series 2004		5.50	%		12/01/18	(f)		2,000		2,238
Overton Power District No. 5
Special Obligation RB Series 2008		4.75	%		12/01/11			200		206
Special Obligation RB Series 2008		5.00	%		12/01/12			210		220
										6,548
NEW HAMPSHIRE 1.3%
New Hampshire Health & Education Facilities Auth
RB (Dartmouth College) Series 2009		5.00	%		06/01/19			400		467
RB (Dartmouth College) Series 2009		5.25	%		06/01/39			280		299
RB (Dartmouth-Hitchcock) Series 2009		6.00	%		08/01/38			1,000		1,041
New Hampshire HFA
S/F Mortgage Acquisition RB Series 2008E		6.63	%		07/01/38	(f)		1,865		2,027
										3,834
NEW JERSEY 4.7%
Cranbury Township
Refunding Bonds		2.75	%		12/01/15	(f)		530		555
Refunding Bonds		3.00	%		12/01/16			320		337
Refunding Bonds		3.00	%		12/01/17			285		296
Refunding Bonds		4.00	%		12/01/18			400		442
Refunding Bonds		3.50	%		12/01/19			410		433
Refunding Bonds		4.00	%		12/01/22			565		613
Middlesex Cnty Improvement Auth
Lease RB Series 2008		4.00	%		12/15/15			415		463
Monmouth Cnty Improvement Auth
Governmental Loan RB Series 2008		5.25	%		12/01/18			85		102
New Jersey
COP (Equipment Lease Purchase) Series 2009A		5.25	%		06/15/28			500		518
COP (Equipment Lease Purchase) Series 2009A		5.25	%		06/15/29			200		206
New Jersey Economic Development Auth
School Facilities Construction Bonds Series 2003F		5.25	%		06/15/13	(a)		2,140		2,457
New Jersey Educational Facilities Auth
Refunding RB (Princeton Theological Seminary) Series 2009B		5.00	%		07/01/19			140		164
Refunding RB (Princeton Theological Seminary) Series 2009B		4.00	%		07/01/20			300		324
New Jersey Health Care Facilities Financing Auth
Refunding RB (AHS Hospital) Series 1997A		6.00	%		07/01/12	(a)(f)		2,000		2,248
New Jersey State Building Auth
State Building Refunding RB Series 2009B		3.00	%		12/15/16			500		490
State Building Refunding RB Series 2009B		4.00	%		12/15/17			1,000		1,024
State Building Refunding RB Series 2009B		4.00	%		12/15/18			1,230		1,243
State Building Refunding RB Series 2009B		4.00	%		12/15/19			1,000		1,000
New Jersey Transportation Trust Fund Auth
Transportation System Bonds Series 2001C		5.50	%		12/15/15	(a)		410		470
Princeton Township
Refunding Bonds		4.00	%		09/01/12			75		82
Refunding Bonds		4.00	%		09/01/13			125		138

7

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Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Refunding Bonds		4.00	%		09/01/15			185		207
Refunding Bonds		4.00	%		09/01/19			75		83
										13,895
NEW MEXICO 0.7%
Albuquerque
Sub Lien Airport Refunding RB Series 2008E		5.00	%		07/01/12	(f)		1,250		1,316
New Mexico Hospital Equipment Loan Council
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.25	%		08/01/15			600		651
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.50	%		08/01/16			10		11
										1,978
NEW YORK 5.3%
Long Island Power Auth
Electric System General RB Series 2009A		5.00	%		04/01/15			870		975
Nassau Cnty Interim Finance Auth
Sales Tax Secured Bonds Series 2009A		5.00	%		11/15/18			145		169
New York City
GO Bonds Fiscal 2002 Series G		5.75	%		08/01/12	(a)		60		68
New York City Transitional Finance Auth
Future Tax Secured RB Series 2010C1		4.00	%		08/01/16			3,000		3,290
New York State Dormitory Auth
Master BOCES Program Lease RB (Oneida Herkimer Madison) Series 2008		5.25	%		08/15/16			1,000		1,146
RB (Orange Regional Medical Center) Series 2008		5.50	%		12/01/11			420		426
State Personal Income Tax RB Series 2009A		5.00	%		02/15/18			3,000		3,442
State Personal Income Tax RB Series 2009A		5.00	%		02/15/39			2,000		2,040
New York State Thruway Auth
Service Contract Bonds Series 2009		4.00	%		04/01/16			750		817
Service Contract Bonds Series 2009		5.00	%		04/01/16			1,775		2,036
Service Contract Bonds Series 2009		4.00	%		04/01/17			800		861
New York State Urban Development Corp
State Personal Income Tax RB (Economic Development & Housing) Series 2009A1		5.00	%		12/15/17			570		658
										15,928
NORTH CAROLINA 2.9%
Durham Cnty
COP Series 2009A		4.00	%		06/01/18			2,080		2,228
Forsyth Cnty
GO Refunding Bonds Series 2009		4.00	%		03/01/17			2,560		2,862
GO Refunding Bonds Series 2009		3.50	%		03/01/19			1,500		1,598
Mecklenburg Cnty
Limited Obligation Refunding Bonds Series 2009		5.00	%		03/01/11	(f)		2,000		2,109
										8,797

8

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
OHIO 1.5%
Cleveland
Airport System RB Series 2009C		3.00	%		01/01/11			3,300		3,359
Kent State Univ
General Receipts Bonds Series 2009B		5.00	%		05/01/19	(a)		700		773
Mahoning Cnty Career & Technical Center
COP Series 2008		6.25	%		12/01/11			190		211
										4,343
OKLAHOMA 0.4%
Grady Cnty School Finance Auth
Educational Facilities Lease RB (Bridge Creek Public Schools) Series 2008		5.00	%		09/01/16	(f)		1,130		1,248
OREGON 0.6%
Chemeketa Community College District
GO Bonds Series 2008		5.50	%		06/15/24			500		574
Columbia River Peoples’ Utilities District
Electric System Revenue Obligations Series 2000B		5.50	%		12/01/10	(a)		125		131
Forest Grove
Student Housing RB (Oak Tree Foundation) Series 2007		5.00	%		03/01/14	(c)(d)		1,000		994
										1,699
PENNSYLVANIA 1.3%
Lehigh Cnty General Purpose Auth
Hospital RB (St Luke’s Hospital of Bethlehem) Series 2003		5.38	%		08/15/13	(a)		1,650		1,910
Pennsylvania Higher Educational Facilities Auth
RB (Univ of Pennsylvania) Series 2009A		5.00	%		09/01/19			1,200		1,402
Philadelphia Gas Works
Refunding RB Eighth Series A		4.00	%		08/01/10			575		582
										3,894
PUERTO RICO 0.5%
Puerto Rico Sales Tax Financing Corp
RB First Sub Series 2009A		5.00	%		08/01/11			1,500		1,553
RHODE ISLAND 0.0%
Rhode Island Housing & Mortgage Finance Corp
Homeownership Opportunity Bonds Series 10A		6.50	%		10/01/22	(f)		20		20
SOUTH CAROLINA 0.9%
Medical Univ Hospital Auth
Hospital Facilities Refunding RB Series 2002A		6.50	%		08/15/12	(a)(f)		2,000		2,301

9

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
South Carolina Jobs Economic Development Auth
Hospital Refunding & RB (Palmetto Health) Series 2009		3.00	%		08/01/12			495		491
										2,792
SOUTH DAKOTA 0.5%
South Dakota Health & Educational Facilities Auth
RB (Sanford Health) Series 2009		5.00	%		11/01/16			385		413
RB (Sanford Health) Series 2009		5.00	%		11/01/17			1,000		1,063
										1,476
TENNESSEE 0.7%
Lewisburg IDB
Solid Waste Disposal RB (Waste Management) Series 2006		5.00	%		07/01/12			2,000		2,001
TEXAS 10.8%
Collin Cnty
Limited Tax Refunding Bonds Series 2009A		3.00	%		02/15/18			2,075		2,110
Limited Tax Refunding Bonds Series 2009A		4.00	%		02/15/19			745		804
Conroe ISD
Unlimited Tax Refunding Bonds Series 2004B		1.50	%		02/15/12	(a)		350		354
Unlimited Tax Refunding Bonds Series 2004B		2.00	%		02/15/13	(a)(f)		450		461
Unlimited Tax Refunding Bonds Series 2004B		3.50	%		02/15/19	(a)		1,000		1,044
El Paso
Water & Sewer Refunding RB Series 2008C		5.00	%		03/01/19			500		564
El Paso Cnty Hospital District
Refunding Bonds Series 2009		2.00	%		08/15/11			1,650		1,676
Refunding Bonds Series 2009		3.00	%		08/15/12			1,400		1,460
Fort Bend Cnty
Limited Tax & Refunding Bonds Series 2009		5.00	%		03/01/17			250		289
Fort Bend ISD
Unlimited Tax Refunding Bonds Series 2005		2.13	%		02/15/10	(a)		575		577
Unlimited Tax Refunding Bonds Series 2005		2.00	%		02/15/11	(a)		750		761
Fort Worth
Combination Tax & Parking Revenue GO Bonds Series 2009		4.45	%		03/01/18	(c)		2,000		2,156
Galveston Cnty
Limited Tax Flood Control Bonds Series 2009C1		3.00	%		02/01/15			210		219
Limited Tax Flood Control Bonds Series 2009C1		3.00	%		02/01/16			255		262
Limited Tax Flood Control Bonds Series 2009C1		3.50	%		02/01/18			550		568
Garland
Combination Tax & Revenue Certificates of Obligation Series 2009		5.00	%		02/15/26			1,455		1,553
Combination Tax & Revenue Certificates of Obligation Series 2009		5.00	%		02/15/27	(f)		1,530		1,624
Combination Tax & Revenue Certificates of Obligation Series 2009		5.00	%		02/15/28			1,610		1,697
Harris Cnty Cultural Education Facilities Finance Corp
Refunding RB (Methodist Hospital System) Series 2009B2		5.00	%		06/01/13			1,000		1,089

10

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Thermal Utility RB (TECO) Series 2009A		5.00	%		11/15/11			100		107
Harris Cnty Hospital District
Refunding RB Series 2000		6.00	%		08/15/10	(a)(f)		1,000		1,037
Houston
Combined Utility System First Lien Refunding RB Series 2004C1		5.00	%		05/15/11	(f)		1,000		1,046
Klein ISD
Unlimited Tax Refunding Bonds Series 2009A		4.00	%		08/01/17			1,060		1,152
Lone Star College System
Maintenance Tax Notes Series 2009		3.25	%		09/15/18	(e)		250		255
Maintenance Tax Notes Series 2009		4.50	%		09/15/23	(e)		1,200		1,279
Maintenance Tax Notes Series 2009		5.00	%		09/15/24	(e)		1,000		1,102
Maintenance Tax Notes Series 2009		5.00	%		09/15/25	(e)		775		846
Maintenance Tax Notes Series 2009		5.00	%		09/15/26	(e)		1,390		1,512
San Antonio
Electric & Gas Systems Refunding RB Series 2002		5.38	%		02/01/14			1,000		1,155
Electric & Gas Systems Refunding RB Series 2009D		5.00	%		02/01/17			1,130		1,306
Travis Cnty
Limited Tax Refunding Bonds Series 2009		5.00	%		03/01/18			1,925		2,247
										32,312
UTAH 0.4%
Riverton
RB (IHC Health Services) Series 2009		5.00	%		08/15/15			1,200		1,303
VIRGINIA 0.7%
Fairfax Cnty IDA
Hospital RB (Inova Health Systems Foundation) Series 2009A		5.00	%		05/15/17			290		322
Henrico Cnty
GO Public Refunding Bonds Series 2009		4.00	%		03/01/18			365		406
Leesburg
GO Refunding Bonds Series 2009B		4.00	%		02/01/12			250		266
GO Refunding Bonds Series 2009B		3.00	%		02/01/13			410		433
GO Refunding Bonds Series 2009B		3.00	%		02/01/14			310		329
GO Refunding Bonds Series 2009B		3.50	%		02/01/17			310		328
										2,084
WASHINGTON 1.9%
Energy Northwest
Electric Refunding RB (Project No. 3) Series 2009A		5.25	%		07/01/18			1,000		1,182
Kent SD #415
Unlimited Tax GO Refunding Bonds Series 1993A		5.55	%		12/01/11			320		331
Washington
GO Bonds Series 1990A		6.75	%		02/01/15			1,000		1,145
Washington Health Care Facilities Auth
RB (Catholic Health Initiatives) Series 2000A		6.00	%		06/01/10	(a)(f)		3,000		3,093
										5,751

11

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
WISCONSIN 1.9%
Wisconsin
General Fund Annual Appropriation Bonds Series 2009A		6.00	%		05/01/26			1,000		1,155
Wisconsin Health & Educational Facilities Auth
RB (Aurora Health Care) Series 2009B1		4.75	%		08/15/14			1,525		1,547
RB (Aurora Health Care) Series 2009B2		5.13	%		08/15/16			1,250		1,271
RB (Children’s Hospital of Wisconsin) Series 2008B		4.20	%		08/15/18			500		511
RB (Children’s Hospital of Wisconsin) Series 2008B		5.38	%		08/15/24			1,000		1,070
										5,554
Total Fixed-Rate Obligations  (Cost $280,640)										288,315
Variable-Rate Obligations 5.5% of net assets
ALABAMA 0.8%
Chatom IDB
Gulf Opportunity Zone Bonds (Alabama Electric Coop) Series 2007A		4.00	%		02/01/10	(a)		2,500		2,501
CALIFORNIA 0.7%
California
Economic Recovery Bonds Series 2004C3		0.21	%		12/01/09	(b)		2,100		2,100
MASSACHUSETTS 2.6%
Massachusetts
GO Bonds Consolidated Loan Series 2007A		0.65	%		02/01/10	(d)(f)		2,500		2,216
Massachusetts Health & Educational Facilities Auth
RB (Museum of Fine Arts) Series 2007A1		0.21	%		12/01/09	(b)		5,000		5,000
RB (Museum of Fine Arts) Series 2007A2		0.19	%		12/01/09	(b)		500		500
										7,716
NEW YORK 0.4%
New York City
GO Bonds Fiscal 2006 Series H1		0.24	%		12/01/09	(a)		1,250		1,250
UTAH 1.0%
Murray
Hospital RB (IHC Health Services) Series 2005D		0.17	%		12/01/09	(b)		2,850		2,850
Total Variable-Rate Obligations  (Cost $16,312)										16,417

12

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

End of Investments.
(All dollar amounts are x 1,000)
At 11/30/09, the tax basis cost of the fund’s investments was $296,914 and the unrealized appreciation and depreciation were $8,472 and ($654), respectively, with a net unrealized appreciation of $7,818.
(a)		Credit-enhanced security.
(b)		Liquidity-enhanced security.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,150 or 1.1% of net assets.
(d)		Illiquid security. At the period end, the value of these amounted to $3,210 or 1.1% of net assets.
(e)		Delayed-delivery security.
(f)		All or a portion of this security is held as collateral for delayed-delivery securities.
COP	–	Certificate of participation
GO	–	General obligation
HFA	–	Housing finance agency/authority
IDA	–	Industrial development agency/authority
IDB	–	Industrial development board
ISD	–	Independent school district
RB	–	Revenue bond
SD	–	School district
S/F	–	Single-family
USD	–	Unified school district

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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

13

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Fixed-Rate Obligations(a)	$	—	$	288,315	$	—	$	288,315
Variable-Rate Obligations(a)		—		16,417		—		16,417
Total	$	—	$	304,732	$	—	$	304,732

*	The fund had no Other Financial Instruments.
(a)	as categorized in Portfolio Holdings

14

Schwab Investments
Schwab California Tax-Free YieldPlus Fund™

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category					($ x 1,000)		($ x 1,000)
	43.2	%	Fixed-Rate Obligations		37,294		37,525
	55.8	%	Variable-Rate Obligations		48,468		48,468
	99.0	%	Total Investments		85,762		85,993
	1.0	%	Other Assets and Liabilities, Net				888
	100.0	%	Net Assets				86,881

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Fixed-Rate Obligations 43.2% of net assets
CALIFORNIA 43.2%
California
GO Bonds		5.75	%		03/01/10	(a)		5,000		5,117
California Health Facilities Financing Auth
RB (NCROC Paradise Valley Estates) Series 2005		3.50	%		12/01/09	(a)		100		100
RB (NCROC Paradise Valley Estates) Series 2005		3.75	%		12/01/10	(a)		90		92
RB (NCROC Paradise Valley Estates) Series 2005		4.05	%		12/01/11	(a)		100		102
RB (Sutter Health) Series 2008A		5.00	%		08/15/12			1,325		1,411
California Infrastructure & Economic Development Bank
Refunding RB (J. Paul Getty Trust) Series 2007A4		1.65	%		04/01/11			1,500		1,512
California Statewide Communities Development Auth
RB (Daughters of Charity Health System) Series 2005F		5.00	%		07/01/10			2,405		2,424
RB (Daughters of Charity Health System) Series 2005G		5.25	%		07/01/11			785		802
RB (Enloe Medical Center) Series 2008A		5.00	%		08/15/11	(a)		550		574
RB (Kaiser Permanente) Series 2004E		3.88	%		04/01/10			1,500		1,516
Contra Costa Transportation Auth
Sales Tax Revenue Notes (Limited Tax) Series 2009		2.50	%		10/01/10			2,000		2,035
Corona-Norco USD
GO BAN 2009		3.50	%		02/01/10			1,000		1,002
Golden State Tobacco Securitization Corp
Enhanced Tobacco Settlement Asset-Backed Bonds Series 2003B		5.63	%		06/01/13	(a)		125		143
Long Beach
TRAN 2009-2010		2.50	%		09/30/10			2,000		2,033

1

Schwab California Tax-Free YieldPlus Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Marin Community College District
GO Bonds Series B		3.00	%		08/01/10			2,000		2,034
Newport Beach
RB (Hoag Memorial Hospital Presbyterian) Series 2009C		4.00	%		02/08/11			1,000		1,024
Orange Cove Irrigation District
Water Refunding RB Series 2009		3.50	%		02/01/10			500		502
Water Refunding RB Series 2009		3.50	%		02/01/11			80		81
Perris Public Financing Auth
Tax Allocation RB 2006		4.40	%		10/01/10			480		479
Riverside Cnty Transportation Commission
Sales Tax RB Series 2008A2		4.00	%		12/01/09			3,000		3,000
San Francisco
GO Bonds (San Francisco General Hospital) Series 2009A		4.00	%		06/15/10			3,500		3,563
San Joaquin Cnty Transportation Auth
Sr Sales Tax Revenue Notes Series 2008		4.00	%		04/01/11			4,000		4,122
San Mateo Cnty Joint Powers Financing Auth
Lease Refunding RB (Youth Services Campus) Series 2008A		3.00	%		07/15/10			500		508
Lease Refunding RB (Youth Services Campus) Series 2008A		4.00	%		07/15/11			450		471
South Coast Local Education Agencies
Pooled TRAN Series 2009A		2.00	%		09/29/10			2,000		2,025
Stockton USD
BAN Series 2009		4.00	%		02/01/11			850		853
Total Fixed-Rate Obligations (Cost $37,294)										37,525
Variable-Rate Obligations 55.8% of net assets
CALIFORNIA 52.3%
Assoc of Bay Area Governments
RB (Branson School) Series 2008		0.40	%		12/03/09	(a)		500		500
Bay Area Toll Auth
San Francisco Bay Area Toll Bridge RB Series 2008E1		0.22	%		12/03/09	(b)		1,900		1,900
California
Economic Recovery Bonds Series 2004C15		0.38	%		12/02/09	(a)(b)		1,500		1,500
Economic Recovery Bonds Series 2004C3		0.21	%		12/01/09	(b)		4,900		4,900
Economic Recovery Bonds Series 2004C4		0.24	%		12/01/09	(b)		450		450
California Dept of Water Resources
Power Supply RB Series 2008I1		0.19	%		12/01/09	(a)		700		700
California HFA
M/F Housing RB III Series 2000B		0.26	%		12/01/09	(b)		1,495		1,495
California Infrastructure & Economic Development Bank
Refunding RB (PG&E) Series 2009A		0.21	%		12/01/09	(a)		1,500		1,500
California Transit Finance Auth
Bonds (California Finance Program) Series 1997		0.43	%		12/02/09	(a)(b)		2,715		2,715
Irvine Assessment District
Limited Obligation Bonds (Assessment District No.03-19) Series B		0.20	%		12/01/09	(a)		2,300		2,300

2

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Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Limited Obligation Bonds (Reassessment District No. 85-7) Series A		0.24	%		12/01/09	(a)(b)		2,823		2,823
Irvine USD Community Facilities District # 06-01
Special Tax Notes (Portola Springs) 2009		0.20	%		12/01/09	(a)		2,150		2,150
Loma Linda
RB (Loma Linda Univ Medical Center) Series 2007B2		0.25	%		12/03/09	(a)		2,300		2,300
Los Angeles USD
GO Bonds Series 2009D & GO Bonds Series 2009I		0.25	%		12/03/09	(b)(c)		1,700		1,700
Modesto
Water Refunding Revenue COP Series 2008A		0.25	%		12/03/09	(a)(b)(c)		2,000		2,000
Northern California Transmission Agency
Refunding RB Series 2002A		0.30	%		12/03/09	(a)(b)		1,300		1,300
Orange Cnty Sanitation District
COP Series 2003		0.27	%		12/03/09	(b)(c)		3,000		3,000
Refunding COP Series 2000A		0.26	%		12/01/09	(b)		2,985		2,985
Refunding COP Series 2000B		0.26	%		12/01/09	(b)		800		800
Riverside
Water RB Series 2008A		0.22	%		12/03/09	(b)		255		255
Santa Clara Cnty Financing Auth
Lease Refunding RB (Multiple Facilities) Series 2008M		0.25	%		12/02/09	(a)		2,200		2,200
Southern California Metropolitan Water District
Water Refunding RB Series 2004C		0.25	%		12/03/09	(b)		1,495		1,495
Southern California Public Power Auth
Sub Refunding RB (Southern Transmission) Series 2001A		0.32	%		12/02/09	(a)(b)		3,500		3,500
Sweetwater Union High SD
GO Bonds Series 2008A		0.25	%		12/03/09	(a)(b)(c)		1,000		1,000
										45,468
PUERTO RICO 3.5%
Puerto Rico
GO Refunding Bonds Series 2004B4		0.40	%		12/03/09	(a)(b)		3,000		3,000
Total Variable-Rate Obligations (Cost $48,468)										48,468

End of Investments.
(All dollar amounts are x 1,000)
At 11/30/09 the tax basis cost of the fund’s investments was $85,762 and the unrealized appreciation and depreciation were $235 and ($4), respectively, with a net unrealized appreciation of $231.
(a)		Credit-enhanced security.
(b)		Liquidity-enhanced security.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $7,700 or 8.9% of net assets.
BAN	–	Bond anticipation note
COP	–	Certificate of participation

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GO	–	General obligation
HFA	–	Housing finance agency/authority
RB	–	Revenue bond
SD	–	School district
TRAN	–	Tax and revenue anticipation note
USD	–	Unified school district

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Fixed-Rate Obligations(a)	$	—	$	37,525	$	—	$	37,525
Variable-Rate Obligations(a)		—		3,000		—		3,000
California		—		43,973		1,495		45,468
Total	$	—	$	84,498	$	1,495	$	85,993

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*	The fund had no Other Financial Instruments.
(a)	as categorized in Portfolio Holdings

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

						Change in
	Balance as of					Unrealized		Net			Balance as of
	August 31,		Realized			Appreciation		Purchases			November 30,
Investments in Securities	2009		Gain (Loss)			(Depreciation)		(Sales)			2009
Variable-Rate Obligations	$	5,695	$	(183	)	$	355	$	(4,372	)	$	1,495
Total	$	5,695	$	(183	)	$	355	$	(4,372	)	$	1,495

5

Schwab Investments
Schwab California Tax-Free Bond Fund™

Portfolio Holdings As of November 30, 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.

For fixed rate obligations, the rate shown is the interest rate (the rate established when the obligation was issued) and the maturity date shown is the stated legal maturity. For variable-rate obligations, the rate shown is the rate as of the report date, and the maturity date shown is the next interest rate change date.

				Cost		Value
Holdings by Category				($ x 1,000)		($ x 1,000)
	99.5	%	Fixed-Rate Obligations		378,935		386,647
	4.2	%	Variable-Rate Obligations		16,315		16,233
	103.7	%	Total Investments		395,250		402,880
	(3.7	)%	Other Assets and Liabilities, Net				(14,248	)
	100.0	%	Net Assets				388,632

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Fixed-Rate Obligations 99.5% of net assets
CALIFORNIA 98.6%
Acton-Agua Dulce USD
GO Bonds Series A		5.00	%		08/01/26	(a)(h)		1,190		1,273
Alameda Cnty
COP (Alameda Cnty Medical Center) Series 1998		5.38	%		06/01/18	(h)		3,400		3,475
Alameda Corridor Transportation Auth
Sr Lien RB Series 1999A		5.13	%		10/01/16	(h)		1,170		1,183
Alameda-Contra Costa Transit District
COP (FHR Computer System Financing) Series 2007		4.00	%		08/01/12	(h)		1,195		1,265
Anaheim Public Financing Auth
Lease Refunding RB Series 2008		4.50	%		08/01/13	(h)		1,000		1,086
Lease Refunding RB Series 2008		4.50	%		08/01/17			1,215		1,305
RB (Water System) Series 2008		5.00	%		10/01/37			1,495		1,445
Sr Lease RB Series 1997A		6.00	%		09/01/24	(a)(h)		5,000		5,672
Assoc of Bay Area Governments
RB (Sharp HealthCare) Series 2009B		6.00	%		08/01/24	(h)		1,000		1,049
Tax Allocation RB (California Redevelopment Agency Pool) Series 1997A6		5.25	%		12/15/17	(a)		285		286
Banning USD
GO Bonds Series B		0.00	%		08/01/25	(a)(f)		50		19
Beverly Hills USD
GO Bonds Series 2009		0.00	%		08/01/21	(f)		1,330		764
Brea Olinda USD
GO Bonds Series 1999A		5.60	%		08/01/20	(h)		1,000		1,021

1

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Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Burbank Public Finance Auth
RB (Golden State Redevelopment) Series 2003A		5.25	%		12/01/13	(a)(h)		1,200		1,392
RB (Golden State Redevelopment) Series 2003A		5.25	%		12/01/13	(a)		920		1,067
California
Economic Recovery Bonds		5.25	%		07/01/13			440		497
Economic Recovery Bonds Series 2004A		5.25	%		07/01/14			920		1,027
Economic Recovery Bonds Series 2004A		5.00	%		07/01/15			1,325		1,433
Economic Recovery Refunding Bonds Series 2009A		4.40	%		07/01/18			1,000		1,024
GO Bonds		5.25	%		04/01/12	(a)		5,170		5,732
GO Bonds Series 2000		5.63	%		05/01/10	(a)		865		894
GO Bonds Series 2000		5.63	%		05/01/18			50		51
GO Refunding Bonds Series 2000		5.63	%		05/01/10	(a)		85		88
Various Purpose GO Bonds		5.00	%		04/01/14	(a)		1,700		1,983
Various Purpose GO Bonds		5.50	%		11/01/39			2,500		2,380
California Dept of Water Resources
Power Supply RB Series 2002A		5.38	%		05/01/12	(a)		3,915		4,393
Power Supply RB Series 2002A		5.75	%		05/01/12	(a)(h)		3,000		3,393
Power Supply RB Series 2002A		5.88	%		05/01/12	(a)		3,235		3,669
Power Supply RB Series 2005G4		5.00	%		05/01/16			2,925		3,297
Power Supply RB Series 2008H		4.50	%		05/01/17			1,900		2,070
Water System RB Series AE		5.00	%		12/01/21			55		61
Water System RB Series AG		5.00	%		12/01/26	(g)		4,095		4,430
Water System RB Series AG		5.00	%		12/01/28	(g)		4,500		4,803
California Educational Facilities Auth
RB (California Institute of Technology) Series 2009		5.00	%		11/01/39			1,500		1,550
RB (Claremont McKenna College) Series 2009		5.00	%		01/01/39			3,000		3,015
RB (Pomona College) Series 2009A		5.00	%		01/01/24	(h)		2,150		2,415
RB (USC) Series 2009C		5.25	%		10/01/24			2,000		2,374
California Health Facilities Financing Auth
RB (Adventist Health System West) Series 2009C		5.00	%		03/01/14			950		1,006
RB (Catholic Healthcare West) Series 2009B		5.00	%		07/02/12			4,000		4,163
RB (Catholic Healthcare West) Series 2009F		5.00	%		07/01/14			1,500		1,575
RB (NCROC Paradise Valley Estates) Series 2005		4.25	%		12/01/12	(a)		100		103
RB (NCROC Paradise Valley Estates) Series 2005		4.38	%		12/01/13	(a)		170		177
RB (NCROC Paradise Valley Estates) Series 2005		4.63	%		12/01/15	(a)		200		211
RB (NCROC Paradise Valley Estates) Series 2005		4.75	%		12/01/16	(a)		340		357
RB (NCROC Paradise Valley Estates) Series 2005		4.88	%		12/01/17	(a)		200		209
RB (NCROC Paradise Valley Estates) Series 2005		5.00	%		12/01/18	(a)		175		183
RB (Scripps Health) Series 2008A		5.00	%		10/01/16	(h)		3,485		3,734
RB (Scripps Health) Series 2008A		5.00	%		10/01/17			2,515		2,681
RB (Scripps Health) Series 2008A		5.00	%		10/01/18			3,000		3,173
RB (St. Joseph Health System) Series 2009A		5.75	%		07/01/39			2,000		2,056
RB (St. Joseph Health System) Series 2009C		5.00	%		10/16/14			3,000		3,205
RB (Sutter Health) Series 2008A		5.00	%		08/15/12			1,705		1,816
California HFA
Home Mortgage RB Series 2008L		4.20	%		08/01/16			1,075		1,095
Home Mortgage RB Series 2008L		4.35	%		08/01/17			1,020		1,047
California Infrastructure & Economic Development Bank
RB (California Independent Systems Operator) Series 2009A		5.25	%		02/01/21			3,000		3,111
RB (California Independent Systems Operator) Series 2009A		5.50	%		02/01/30			1,000		1,018
RB (J. David Gladstone Institutes) Series 2001		5.50	%		10/01/19			700		712

2

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Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
RB (PG&E) Series G		3.75	%		09/20/10	(h)		3,000		3,044
Refunding RB (J. Paul Getty Trust) Series 2007A1		2.50	%		04/01/13	(h)		2,000		2,072
California Municipal Finance Auth
RB (High Tech High) Series 2008B		6.00	%		07/01/28			845		712
Solid Waste Disposal RB (Waste Management) Series 2004		3.45	%		03/01/10			2,750		2,752
California Pollution Control Financing Auth
Refunding RB (BP West Coast Products) Series 2009		2.60	%		09/02/14			2,000		2,031
California State Public Works Board
Lease RB Series 2009I1		6.13	%		11/01/29	(g)		2,000		2,015
Lease RB Series 2009I1		6.63	%		11/01/34	(g)		3,000		3,071
Lease RB (California State Univ) Series 2009J		6.00	%		11/01/29	(g)		500		505
California Statewide Communities Development Auth
Collateralized RB Series 2001A		7.00	%		04/20/36	(a)		3,895		4,172
Health Facility RB (Los Angeles Jewish Home for the Aging) Series 2008		4.00	%		11/15/13	(a)		1,015		1,035
M/F Housing RB (740 S. Olive St Apts) Series 2009L		2.10	%		07/20/14	(a)		630		628
M/F Housing RB (740 S. Olive St Apts) Series 2009L		3.40	%		07/20/19	(a)		1,470		1,452
RB Series 2009		5.00	%		06/15/13			6,000		6,319
RB (Enloe Medical Center) Series 2008A		5.25	%		08/15/12	(a)		975		1,054
RB (Enloe Medical Center) Series 2008A		5.50	%		08/15/13	(a)		250		270
RB (Huntington Memorial Hospital) Series 2005		5.00	%		07/01/18			6,190		6,403
RB (Kaiser Permanente) Series 2009A		5.00	%		04/01/14			5,000		5,350
RB (Kaiser Permanente) Series 2009A		5.00	%		04/01/19			3,000		3,113
RB (St. Joseph Health System) Series 2000		4.50	%		07/01/18			6,040		6,320
RB (St. Joseph Health System) Series 2000		5.13	%		07/01/24			2,500		2,501
Refunding RB (John Muir/Mt Diablo Health System) Series 2005A		5.00	%		05/01/13			650		696
Sr Living RB (Southern California Presbyterian Homes) Series 2009		5.25	%		11/15/14			1,000		1,021
Carson Redevelopment Agency
Tax Allocation Sub Bonds (Merged & Amended Area) Series 2003D		6.00	%		01/01/14	(a)		500		596
Central Valley Financing Auth
Refunding RB (Carson Ice Cogeneration) Series 2009		2.25	%		07/01/10			3,955		3,993
Refunding RB (Carson Ice Cogeneration) Series 2009		3.00	%		07/01/11			925		949
Contra Costa Transportation Auth
Sales Tax Revenue Notes (Limited Tax) Series 2009		2.50	%		10/01/10			5,000		5,087
East Bay Regional Park District
GO Bonds Series 2009A		5.00	%		09/01/28			2,000		2,170
GO Bonds Series 2009A		5.00	%		09/01/29			2,145		2,309
GO Refunding Bonds 2008		5.00	%		09/01/13			135		153
El Cajon Public Financing Auth
RB (Sales Tax Supported Public Safety Financing) Series 2009A		4.00	%		08/01/15			4,000		4,256
El Camino Community College District
GO Bonds Series 2003A		5.00	%		08/01/13	(a)		4,850		5,568
Escondido
Revenue COP Series 2000A		6.00	%		09/01/31			835		852
Evergreen Elementary SD
Bonds Series 2009		0.00	%		08/01/22	(a)(f)		1,350		668
Gilroy Public Facilities Financing Auth
BAN Series 2009		2.00	%		09/01/10			5,000		5,040

3

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Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25	%		06/01/13	(a)		7,565		8,422
Golden West Schools Financing Auth
GO RB (Rowland USD) Series 2005		5.25	%		09/01/23			3,255		3,510
GO RB (Rowland USD) Series 2005		5.25	%		09/01/24			1,725		1,861
Huntington Beach
Lease RB Series 2000A		5.50	%		09/01/20			1,000		1,021
Imperial Community College District
TRAN 2009-2010		3.00	%		05/31/10			2,000		2,010
Los Angeles Cnty Metropolitan Transportation Auth
First Tier Sr Sales Tax Refunding RB Series 2009A		2.00	%		07/01/11			2,685		2,731
First Tier Sr Sales Tax Refunding RB Series 2009A		3.00	%		07/01/13			4,750		4,999
Second Sr Sales Tax Refunding RB Series 2009E		5.00	%		07/01/26			5,000		5,345
Los Angeles Community College District
GO Bonds Series 2009A		6.00	%		08/01/33			2,000		2,171
Los Angeles Community Redevelopment Agency
Lease RB (Vermont Manchester Social Services) Series 2005		5.00	%		09/01/17			1,340		1,372
Los Angeles Dept of Water & Power
Power System RB Series 2001A1		5.25	%		07/01/14			1,355		1,437
Power System RB Series 2008A2		5.00	%		07/01/13			500		560
Power System RB Series 2008A2		5.00	%		07/01/16			960		1,091
Power System RB Series 2009B		5.25	%		07/01/23			2,850		3,172
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2007A		5.00	%		08/01/14			175		193
Lease RB (Capital Equipment) Series 2009A		4.00	%		04/01/14	(a)		380		408
Los Angeles USD
GO Bonds Series 2003A		5.00	%		07/01/13	(a)		1,205		1,379
GO Bonds Series 2006C		5.00	%		07/01/16			2,600		2,921
GO Bonds Series 2007E		5.00	%		07/01/24			525		555
GO Bonds Series 2009D		4.00	%		07/01/17			400		420
GO Bonds Series 2009F		4.00	%		07/01/17			500		525
Lynwood Public Financing Auth
Lease Refunding RB Series 2003		5.00	%		09/01/18			1,000		1,050
M-S-R Public Power Agency
Sub Lien RB Series 2008L		5.00	%		07/01/16	(a)		1,240		1,424
Sub Lien RB Series 2008L		5.00	%		07/01/17	(a)		855		978
Malibu
City Hall COP Series 2009A		4.00	%		07/01/14			70		76
City Hall COP Series 2009A		4.00	%		07/01/17			100		106
City Hall COP Series 2009A		4.00	%		07/01/18			75		78
City Hall COP Series 2009A		5.00	%		07/01/20			175		193
City Hall COP Series 2009A		5.00	%		07/01/21			110		120
City Hall COP Series 2009A		5.00	%		07/01/22			150		162
City Hall COP Series 2009A		5.00	%		07/01/32			870		882
City Hall COP Series 2009A		5.00	%		07/01/39			2,100		2,090
Marin Community College District
GO Bonds Series B		3.00	%		08/01/10			1,000		1,017
Marina Joint Powers Financing Auth
M/F Housing RB (Abrams B Apts) Series 2006		3.90	%		11/15/16	(a)		2,850		2,941
Menifee Union SD
GO Bonds Series A		5.50	%		08/01/27			525		551
GO Bonds Series A		5.50	%		08/01/29			180		186

4

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Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Mojave Water Agency
Revenue COP Series 2009A		5.50	%		06/01/29			5,590		5,912
Mt. Diablo Hospital District
Hospital RB Series 1993A		5.00	%		12/01/13	(a)		3,495		3,733
Newport Beach
RB (Hoag Memorial Hospital Presbyterian) Series 2009D		5.00	%		02/07/13			2,500		2,683
Northern California Transmission Agency
RB (California-Oregon Transmission) Series 1990A		4.00	%		05/01/13			1,000		1,083
Oceanside Community Development Commission
M/F Rental Housing Refunding RB (Vista Del Oro Apts) Series 2001A		4.45	%		04/01/11	(a)		1,250		1,252
Ohlone Community College District
GO Bonds Series 2002B		5.00	%		08/01/24	(a)		2,590		2,725
Orange Cnty
Airport RB Series 2009B		5.00	%		07/01/15			2,410		2,706
Orange Cove Irrigation District
Water Refunding RB Series 2009		3.75	%		02/01/16			1,240		1,263
Water Refunding RB Series 2009		4.00	%		02/01/17			1,465		1,489
Palomar Pomerado Health
COP 2009		5.50	%		11/01/19			3,000		2,944
Pasadena
Refunding COP Series 2008C		5.00	%		02/01/28			1,170		1,218
Pasadena Area Community College District
GO Bonds Series 2009D		5.00	%		08/01/21			230		255
GO Bonds Series 2009D		5.00	%		08/01/22			500		552
GO Bonds Series 2009D		5.00	%		08/01/24			350		381
Perris Public Financing Auth
Refunding RB Series 2007A		5.00	%		09/01/24			1,065		1,000
Pomona
S/F Mortgage Refunding RB (GNMA & FHLMC Mortgage-Backed Securities) Series 1990B		7.50	%		08/01/23	(a)		1,000		1,326
Port of Oakland
RB Series 2002M		5.25	%		11/01/12	(a)		3,600		4,047
Redlands USD
GO Bonds Series 2008		5.00	%		07/01/27	(a)		90		96
GO Bonds Series 2008		5.00	%		07/01/28	(a)		60		63
Rio Hondo Community College District
GO Bonds Series 2009B		0.00	%		08/01/32	(f)		1,365		322
Riverside Cnty Transportation Commission
Sales Tax RB Series 2008A2		4.00	%		12/01/09	(h)		5,000		5,000
Sacramento Cogeneration Auth
Refunding RB (Procter & Gamble) Series 2009		4.00	%		07/01/11			535		557
Sacramento Finance Auth
RB Series 1999		5.88	%		12/01/09	(a)(h)		1,000		1,020
San Bernardino Cnty Transportation Auth
Sales Tax Revenue Notes (Limited Tax Bonds) Series 2009A		4.00	%		05/01/12			5,500		5,778
San Bernardino Community College District
GO Bonds Series 2008A		6.25	%		08/01/33			1,000		1,126
San Diego Cnty
Refunding COP (Justice Facilities) Series 2009		5.00	%		10/01/20			2,000		2,207
Refunding COP (Justice Facilities) Series 2009		5.00	%		10/01/23			1,000		1,075

5

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
San Diego Public Facilities Financing Auth
Water Refunding RB Series 2009A		5.00	%		08/01/26			700		744
San Diego Regional Building Auth
Lease RB (Cnty Operations Center & Annex Redevelopment) Series 2009A		3.00	%		02/01/13			500		521
Lease RB (Cnty Operations Center & Annex Redevelopment) Series 2009A		3.25	%		02/01/14			80		84
Lease RB (Cnty Operations Center & Annex Redevelopment) Series 2009A		4.00	%		02/01/16			415		438
Lease RB (Cnty Operations Center & Annex Redevelopment) Series 2009A		4.00	%		02/01/17			890		930
San Diego USD
GO Bonds Series 2009A		0.00	%		07/01/19	(f)		3,330		2,116
GO Refunding Bonds Series 2006F1		5.25	%		07/01/27			3,000		3,329
San Francisco
COP Series 2009A		5.00	%		04/01/15			800		875
COP Series 2009A		5.00	%		04/01/17			1,000		1,083
COP Series 2009A		5.00	%		04/01/21			4,225		4,437
San Francisco Airport Commission
RB Second Series 2009E		5.25	%		05/01/24			1,000		1,064
RB Second Series 2009E		5.50	%		05/01/25			2,000		2,170
RB Second Series 2009E		5.50	%		05/01/26			2,000		2,157
San Francisco Bay Area Rapid Transit District
GO Bonds Series 2007B		5.00	%		08/01/24			5,300		5,770
San Joaquin Cnty Transportation Auth
Sr Sales Tax Revenue Notes Series 2008		4.00	%		04/01/11			4,310		4,442
San Lorenzo Valley USD
GO Bonds Series 2008A		0.00	%		08/01/27	(a)(f)		1,000		346
GO Bonds Series 2008A		0.00	%		08/01/28	(a)(f)		700		224
GO Bonds Series 2008A		0.00	%		08/01/30	(a)(f)		350		96
GO Bonds Series 2008A		0.00	%		08/01/31	(a)(f)		950		239
San Mateo Cnty Joint Powers Financing Auth
Lease Refunding RB (Youth Services Campus) Series 2008A		4.00	%		07/15/12			500		533
Lease Refunding RB (Youth Services Campus) Series 2008A		4.00	%		07/15/17			875		926
Lease Refunding RB (Youth Services Campus) Series 2008A		5.00	%		07/15/20			650		710
Santa Clara Cnty Financing Auth
Lease RB (VMC Facility) Series 1994A		7.75	%		11/15/10			1,460		1,558
RB (El Camino Hospital) Series 2007A		5.00	%		02/01/17			125		134
RB (El Camino Hospital) Series 2007B		5.00	%		02/01/16			150		162
RB (El Camino Hospital) Series 2007B		5.00	%		02/01/17			115		124
RB (El Camino Hospital) Series 2007B		5.00	%		02/01/18			110		117
RB (El Camino Hospital) Series 2007C		5.00	%		02/01/15			100		108
RB (El Camino Hospital) Series 2007C		5.00	%		02/01/17			300		323
Santa Clara Redevelopment Agency
Tax Allocation Refunding Bonds (Bayshore North) 1992		7.00	%		07/01/10			340		342
Santa Clara Valley Transportation Auth
Sales Tax Refunding RB Series 2007A		5.00	%		04/01/25			1,840		1,951
Santa Cruz Cnty Redevelopment Agency
Tax Allocation Bonds Series 2009A		7.00	%		09/01/36			1,000		1,097

6

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Santa Monica Community College District
GO Bonds Series 2009C		5.25	%		08/01/22			450		496
Santa Monica-Malibu USD
GO Bonds Series 2006B		5.00	%		08/01/17			115		131
GO Bonds Series 2006B		5.00	%		08/01/18			200		228
GO Bonds Series 2006B		5.00	%		08/01/19			200		228
Santa Rosa
Wastewater RB Series 2008A		5.25	%		09/01/25	(a)		90		97
South Coast Local Education Agencies
Pooled TRAN Series 2009A		2.00	%		09/29/10			5,000		5,063
South Orange Cnty Public Financing Auth
Special Tax RB Series 1999A		5.25	%		08/15/18	(a)		6,995		7,071
Southern California Metropolitan Water District
Water Refunding RB Series 1993A		5.75	%		07/01/21			1,000		1,190
Stockton USD
BAN Series 2009		4.00	%		02/01/11			1,500		1,505
Taft City Elementary SD
GO Bonds Series 2001A		4.90	%		08/01/20			1,030		1,051
Tuolumne Wind Project Auth
RB (Tuolumne Co) Series 2009A		5.00	%		01/01/22			2,000		2,087
Univ of California
General RB Series 2009Q		5.25	%		05/15/26			6,030		6,630
Washington Health Care District
GO Bonds Series 2009A		6.00	%		08/01/11			1,160		1,244
GO Bonds Series 2009A		6.00	%		08/01/12			1,000		1,102
GO Bonds Series 2009A		6.50	%		08/01/13			250		284
GO Bonds Series 2009A		6.50	%		08/01/14			750		860
RB Series 2009A		4.50	%		07/01/11	(g)		150		153
RB Series 2009A		4.50	%		07/01/12	(g)		275		282
RB Series 2009A		4.50	%		07/01/13	(g)		250		255
RB Series 2009A		5.00	%		07/01/14	(g)		300		310
RB Series 2009A		5.00	%		07/01/15	(g)		300		306
RB Series 2009A		5.00	%		07/01/16	(g)		275		278
RB Series 2009A		5.13	%		07/01/17	(g)		200		201
RB Series 2009A		5.25	%		07/01/18	(g)		250		250
RB Series 2009A		5.50	%		07/01/19	(g)		300		302
RB Series 2009A		6.00	%		07/01/29	(g)		1,000		1,000
Whittier
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2002		5.60	%		06/01/12	(a)		2,000		2,250
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00	%		06/01/15			1,000		1,052
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00	%		06/01/16			2,000		2,086
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00	%		06/01/17			2,000		2,071
William S. Hart Union High SD
GO BAN 2009		5.00	%		12/01/11			1,500		1,560
PUERTO RICO 0.9%
Puerto Rico Electric Power Auth
RB Series NN		5.00	%		07/01/13	(a)		1,175		1,343

7

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer				Maturity			Face Amount		Value
Type of Security, Series	Rate			Date			($ x 1,000)		($ x 1,000)
Puerto Rico Sales Tax Financing Corp
RB First Sub Series 2009A		5.00	%		08/01/11			2,000		2,071
Total Fixed-Rate Obligations (Cost $378,935)										386,647
Variable-Rate Obligations 4.2% of net assets
CALIFORNIA 4.2%
Assoc of Bay Area Governments
RB (Brandeis Hillel Day School) Series 2001		0.40	%		12/03/09	(a)		465		465
California Dept of Water Resources
Power Supply RB Series 2005F2		0.20	%		12/01/09	(a)		5,000		5,000
California Educational Facilities Auth
RB (Chapman Univ) Series 2000		0.28	%		12/02/09	(a)		300		300
California Infrastructure & Economic Development Bank
Refunding RB (PG&E) Series 2009A		0.21	%		12/01/09	(a)		400		400
California Statewide Communities Development Auth
COP (Eskaton Properties) Series 1999		0.70	%		12/31/09	(c)(d)(e)		1,600		1,518
RB (Center for Early Education) Series 2001		0.40	%		12/03/09	(a)		100		100
Irvine Assessment District
Limited Obligation Bonds (Assessment District No.03-19) Series A		0.20	%		12/01/09	(a)		2,450		2,450
Los Angeles
COP (Windward School) Series 2007A		0.40	%		12/03/09	(a)		250		250
Southern California Public Power Auth
Sub Refunding RB (Southern Transmission) Series 2001A		0.32	%		12/02/09	(a)(b)		2,000		2,000
Univ of California
Medical Center Pooled RB Series 2007B1		0.22	%		12/01/09	(b)		3,750		3,750
Total Variable-Rate Obligations (Cost $16,315)										16,233

End of Investments.

(All dollar amounts are x 1, 000)

At 11/30/09, the tax basis cost of the fund’s investment was $395,246 and the unrealized appreciation and depreciation were $8,879 and ($1,245), respectively, with a net unrealized appreciation of $7,634.

(a)	Credit-enhanced security.
(b)	Liquidity-enhanced security.
(c)	Illiquid security. At the period end, the value of these amounted to $1,518 or 0.4% of net assets.
(d)	Failed Auction Rate Bond — this security’s interest payments are adjusted periodically through an auction process. The process typically serves as a means for buying and selling the bond, and the maturity date listed in the portfolio holdings is the next auction date. Auctions that fail to attract enough buyers for all the bonds offered for sale are deemed to have “failed”. Although the auctions have failed, the issuer continues to pay a formula-based interest rate which resets at each scheduled auction.
(e)	Fair-valued by Management in accordance with procedures approved by the Board of Trustees.
(f)	Zero Coupon Bond.

8

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

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

BAN — Bond anticipation note
COP — Certificate of participation
GO — General obligation
HFA — Housing finance agency/authority
M/F — Multi-family
RB — Revenue bond
SD — School district
S/F — Single-family
TRAN — Tax and revenue anticipation note
USD — Unified school district

Various inputs are used on determining the value of the funds’ investments. The fair value measurements and disclosures establish 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 funds do not adjust the quoted price for such investments, even in situations where the funds hold 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 certain 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. In addition, international securities whose markets close hours before the funds value their holdings may require revised valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Board of Trustees has approved a vendor that would calculate revised valuations of international securities based on a number of factors that appear to correlate to the movements in the U.S. markets. 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 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. The following is a summary of the inputs used to value the funds’ investments as of November 30, 2009:

9

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

	Quoted Prices
	in Active		Significant
	Markets for		Other		Significant
	Identical		Observable		Unobservable
	Assets		Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total*
Fixed-Rate Obligations(a)	$	—	$	386,647	$	—	$	386,647
Variable-Rate Obligations(a)
California		—		14,715		1,518		16,233
Total	$	—	$	401,362	$	1,518	$	402,880

*	The fund had no Other Financial Instruments.
(a)	as categorized in Portfolio Holdings

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

			Change in
			Unrealized
	Balance as of		Appreciation		Balance as of
Investments in Securities	August 31, 2009		(Depreciation)		November 30, 2009
Variable-Rate Obligations	$	1,440	$	78	$	1,518
Total	$	1,440	$	78	$	1,518

10

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 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

By:	/s/ Randall W. Merk Randall W. Merk
	Chief Executive Officer
Date:	January 19, 2010

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:	January 19, 2010
By:	/s/ George Pereira George Pereira
	Principal Financial Officer
Date:	January 19, 2010