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Schwab Investments
Schwab Short-Term Bond Market Fund™

Portfolio Holdings as of November 30, 2012 (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). For variable-rate obligations, the rate shown is the rate as of the report date. The maturity date shown for all the securities is the final legal maturity.


				Cost		Value
Holdings by Category				($)		($)

	72	.2%	U.S. Government and Government Agencies		316,658,350		320,162,234
	6	.8%	Foreign Securities		29,552,920		30,231,261
	20	.2%	Corporate Bonds		87,481,694		89,717,262
	0	.2%	Municipal Bonds		701,897		713,789
	0	.1%	Other Investment Company		490,383		490,383


	99	.5%	Total Investments		434,885,244		441,314,929
	0	.0%	Collateral Invested for Securities on Loan		163,300		163,300
	0	.5%	Other Assets and Liabilities, Net				2,253,135


	100	.0%	Net Assets				443,731,364


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

U.S. Government and Government Agencies 72.2% of net assets

U.S. Government Agency Securities 10.1%
Fannie Mae
0.75%, 12/18/13		1,000,000		1,006,035
2.75%, 02/05/14		1,250,000		1,288,149
0.75%, 12/19/14		1,750,000		1,766,394
0.63%, 01/30/15 (b)		2,000,000		2,001,604
0.38%, 03/16/15		4,500,000		4,507,285
0.50%, 09/28/15		500,000		501,947
2.38%, 04/11/16		2,000,000		2,131,320
1.25%, 09/28/16		1,000,000		1,029,590
1.30%, 05/10/17 (b)		1,000,000		1,005,238
1.20%, 07/17/17 (b)		1,500,000		1,507,967
0.88%, 08/28/17		1,000,000		1,011,835
0.88%, 10/26/17		1,000,000		1,009,443
Federal Farm Credit Bank
0.37%, 06/11/14 (b)		750,000		750,685
0.55%, 08/17/15		1,000,000		1,002,862
4.88%, 12/16/15		150,000		171,048
Federal Home Loan Bank
0.38%, 01/29/14		2,250,000		2,254,162
5.50%, 08/13/14		2,000,000		2,179,390
0.33%, 08/15/14 (b)		1,500,000		1,500,875
4.88%, 05/17/17		1,500,000		1,780,546
1.00%, 06/21/17		1,000,000		1,016,593
Freddie Mac
0.40%, 02/27/14 (b)		1,000,000		1,000,630
0.65%, 06/27/14 (b)		1,500,000		1,500,402
3.00%, 07/28/14		1,500,000		1,566,526
1.00%, 07/30/14		1,000,000		1,012,604
0.63%, 12/29/14		2,500,000		2,517,145
0.50%, 04/17/15		1,000,000		1,004,661
1.75%, 09/10/15		500,000		519,316
2.50%, 05/27/16		2,000,000		2,144,198
2.00%, 08/25/16		2,000,000		2,111,224
1.00%, 03/08/17		1,000,000		1,016,786
1.00%, 06/29/17		1,000,000		1,017,412

				44,833,872

U.S. Treasury Obligations 62.1%
U.S. Treasury Bond
10.63%, 08/15/15		2,000,000		2,554,062
U.S. Treasury Notes
0.13%, 12/31/13		7,750,000		7,744,249
1.50%, 12/31/13		6,500,000		6,590,902
0.25%, 01/31/14		1,500,000		1,500,762
4.00%, 02/15/14		1,000,000		1,045,352
0.25%, 02/28/14		3,000,000		3,001,407
1.25%, 03/15/14		5,750,000		5,825,469
0.25%, 03/31/14		6,500,000		6,502,795
1.25%, 04/15/14		2,000,000		2,027,892
0.25%, 04/30/14		4,500,000		4,501,935
1.88%, 04/30/14		1,000,000		1,023,203
1.00%, 05/15/14		700,000		707,820
2.25%, 05/31/14		5,000,000		5,150,390
0.25%, 06/30/14		2,500,000		2,500,685
2.63%, 06/30/14		1,250,000		1,296,826
0.63%, 07/15/14		1,000,000		1,006,289
0.13%, 07/31/14		10,000,000		9,981,250
2.63%, 07/31/14		1,000,000		1,039,531
0.25%, 08/31/14		1,750,000		1,750,343
2.38%, 08/31/14		2,475,000		2,566,555
0.25%, 09/15/14		14,000,000		14,001,092
0.25%, 09/30/14		3,000,000		3,000,468
2.38%, 09/30/14		1,600,000		1,662,062
2.38%, 10/31/14		1,000,000		1,040,313
4.25%, 11/15/14		3,000,000		3,232,851
0.25%, 11/30/14		5,000,000		5,000,780
2.13%, 11/30/14		2,000,000		2,074,062
0.25%, 12/15/14		3,000,000		2,999,532
2.63%, 12/31/14		2,500,000		2,622,853
2.25%, 01/31/15		5,000,000		5,213,280
0.25%, 02/15/15		3,000,000		2,998,593
2.38%, 02/28/15		3,000,000		3,140,391
0.38%, 03/15/15		3,400,000		3,407,970
0.38%, 04/15/15		4,600,000		4,610,065
2.50%, 04/30/15		2,500,000		2,633,008
0.25%, 05/15/15		6,000,000		5,995,314
2.13%, 05/31/15		2,500,000		2,613,673
0.38%, 06/15/15		1,250,000		1,252,638
1.88%, 06/30/15		2,350,000		2,445,285
0.25%, 07/15/15		10,000,000		9,988,280
1.75%, 07/31/15		750,000		778,652
0.25%, 08/15/15		2,000,000		1,997,188
1.25%, 08/31/15		4,000,000		4,102,812
0.25%, 09/15/15		4,500,000		4,492,620

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
1.25%, 09/30/15		1,000,000		1,026,328
0.25%, 10/15/15		4,750,000		4,741,464
1.25%, 10/31/15		7,000,000		7,187,579
0.38%, 11/15/15		7,000,000		7,011,487
1.38%, 11/30/15		1,000,000		1,030,781
2.13%, 12/31/15		750,000		790,723
2.00%, 01/31/16		335,000		352,326
2.13%, 02/29/16		1,000,000		1,057,031
2.63%, 02/29/16		750,000		804,785
2.25%, 03/31/16		1,000,000		1,062,266
2.38%, 03/31/16		1,500,000		1,599,141
2.00%, 04/30/16		2,000,000		2,110,156
1.75%, 05/31/16		4,000,000		4,188,440
3.25%, 05/31/16		1,000,000		1,098,828
1.50%, 06/30/16		3,500,000		3,636,171
1.50%, 07/31/16		1,100,000		1,143,484
1.00%, 08/31/16		4,500,000		4,595,976
3.00%, 08/31/16		1,000,000		1,095,391
1.00%, 09/30/16		2,000,000		2,042,970
3.13%, 10/31/16		4,500,000		4,966,173
4.63%, 11/15/16		3,500,000		4,070,391
2.75%, 11/30/16		2,500,000		2,726,173
3.25%, 12/31/16		7,500,000		8,340,825
1.00%, 03/31/17		5,000,000		5,104,300
0.88%, 04/30/17		4,500,000		4,569,259
3.13%, 04/30/17		600,000		667,922
0.63%, 05/31/17		9,000,000		9,038,673
0.75%, 06/30/17		2,500,000		2,523,048
0.50%, 07/31/17		5,000,000		4,985,550
2.38%, 07/31/17		1,000,000		1,083,047
0.63%, 08/31/17		7,000,000		7,018,046
0.63%, 09/30/17		3,500,000		3,506,017
0.75%, 10/31/17		4,000,000		4,029,064
0.63%, 11/30/17		6,500,000		6,503,048

				275,328,362

Total U.S. Government and Government Agencies
(Cost $316,658,350)				320,162,234




Foreign Securities 6.8% of net assets

Foreign Agencies 2.2%


Austria 0.1%
Oesterreichische Kontrollbank AG
1.13%, 07/06/15		200,000		203,120
1.75%, 10/05/15		300,000		309,754

				512,874


Canada 0.0%
Export Development Canada
3.13%, 04/24/14		200,000		207,891


Cayman Islands 0.1%
Petrobras International Finance Co.
7.75%, 09/15/14		100,000		110,625
2.88%, 02/06/15		300,000		309,506
3.88%, 01/27/16		200,000		212,916

				633,047


Germany 1.2%
Kreditanstalt Fuer Wiederaufbau
1.38%, 01/13/14 (d)		750,000		758,946
3.50%, 03/10/14 (d)		250,000		260,008
2.63%, 03/03/15 (d)		1,000,000		1,049,675
2.63%, 02/16/16 (d)		725,000		772,358
2.00%, 06/01/16 (d)		950,000		995,111
4.88%, 01/17/17 (d)		1,200,000		1,403,171

				5,239,269


Japan 0.3%
Japan Finance Corp.
2.88%, 02/02/15		600,000		631,704
2.25%, 07/13/16		400,000		423,359
Japan Finance Organization for Municipalities
5.00%, 05/16/17		200,000		235,399

				1,290,462


Mexico 0.1%
Petroleos Mexicanos
4.88%, 03/15/15		250,000		270,000


Norway 0.0%
Statoilhydro A.S.A.
3.88%, 04/15/14		150,000		156,592


Republic of Korea 0.3%
Export-Import Bank of Korea
8.13%, 01/21/14		200,000		216,082
5.88%, 01/14/15		250,000		274,535
4.00%, 01/11/17		600,000		656,104

				1,146,721


Sweden 0.1%
Svensk Exportkredit AB
3.25%, 09/16/14		200,000		209,711
1.75%, 05/30/17		150,000		154,652

				364,363

				9,821,219

Foreign Local Government 0.7%


Canada 0.7%
Hydro Quebec
2.00%, 06/30/16		500,000		522,501
Province of British Columbia
2.85%, 06/15/15		300,000		318,285
Province of Manitoba
1.38%, 04/28/14		150,000		152,198
Province of Nova Scotia
5.13%, 01/26/17		300,000		352,565
Province of Ontario
1.38%, 01/27/14		450,000		455,470
4.10%, 06/16/14		600,000		634,172
1.88%, 09/15/15		550,000		570,887
2.30%, 05/10/16		300,000		316,642

				3,322,720

Sovereign 0.8%


Brazil 0.1%
Federative Republic of Brazil
7.88%, 03/07/15		300,000		347,700


Canada 0.1%
Canada Government International Bond
0.88%, 02/14/17		300,000		303,462


Colombia 0.1%
Republic of Colombia
7.38%, 01/27/17		300,000		373,500

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)


Italy 0.1%
Republic of Italy
3.13%, 01/26/15		800,000		812,899
4.75%, 01/25/16		100,000		104,586

				917,485


Mexico 0.1%
United Mexican States
5.88%, 01/15/14		125,000		131,563
6.63%, 03/03/15		125,000		140,687
5.63%, 01/15/17		300,000		351,000

				623,250


Panama 0.1%
Republic of Panama
7.25%, 03/15/15		250,000		283,125


Poland 0.1%
Republic of Poland
5.25%, 01/15/14		350,000		368,480


Republic of Korea 0.1%
Republic of Korea
5.13%, 12/07/16		250,000		291,610

				3,508,612

Supranational 3.1%
African Development Bank
6.88%, 10/15/15		250,000		287,665
Asian Development Bank
2.75%, 05/21/14		750,000		776,732
2.63%, 02/09/15		500,000		524,729
Corp. Andina de Fomento S.A.
5.75%, 01/12/17		100,000		114,425
Council of Europe Development Bank
1.50%, 02/22/17		400,000		410,659
European Bank for Reconstruction & Development
5.00%, 05/19/14		300,000		319,930
1.63%, 09/03/15		200,000		206,172
1.00%, 02/16/17		250,000		254,317
European Investment Bank
3.13%, 06/04/14		1,400,000		1,456,606
1.63%, 09/01/15		300,000		308,877
4.88%, 02/16/16		600,000		680,491
2.25%, 03/15/16		500,000		525,867
2.50%, 05/16/16		350,000		371,842
5.13%, 09/13/16		350,000		406,950
4.88%, 01/17/17		700,000		816,975
1.75%, 03/15/17		1,500,000		1,562,144
Inter-American Development Bank
3.00%, 04/22/14		1,200,000		1,245,770
International Bank for Reconstruction & Development
0.50%, 03/26/14 (b)		250,000		250,875
2.13%, 03/15/16		500,000		527,414
0.88%, 04/17/17		1,200,000		1,221,571
International Finance Corp.
3.00%, 04/22/14		650,000		674,434
2.25%, 04/11/16		200,000		212,157
Nordic Investment Bank
2.50%, 07/15/15		400,000		422,108

				13,578,710

Total Foreign Securities
(Cost $29,552,920)				30,231,261




Corporate Bonds 20.2% of net assets

Finance 8.9%


Banking 6.5%
American Express Co.
6.80%, 09/01/66 (a)(b)		200,000		215,750
American Express Credit Corp.
5.13%, 08/25/14		500,000		537,760
2.38%, 03/24/17		500,000		526,112
Bank of America Corp.
7.38%, 05/15/14		500,000		543,131
1.50%, 10/09/15		1,000,000		1,004,250
6.50%, 08/01/16		125,000		145,315
3.88%, 03/22/17		500,000		544,265
6.00%, 09/01/17		250,000		291,198
Bank of Montreal
1.75%, 04/29/14		200,000		203,525
Bank of Nova Scotia
3.40%, 01/22/15		275,000		291,004
2.05%, 10/07/15		300,000		311,561
Bank One Corp.
4.90%, 04/30/15		300,000		323,263
Barclays Bank PLC
5.20%, 07/10/14		700,000		745,943
BB&T Corp.
5.20%, 12/23/15		175,000		195,081
4.90%, 06/30/17		250,000		284,695
BNP Paribas
3.60%, 02/23/16		500,000		531,093
Canadian Imperial Bank of Commerce
2.35%, 12/11/15		200,000		208,508
Capital One Financial Corp.
2.15%, 03/23/15		350,000		358,104
6.75%, 09/15/17		200,000		246,898
Citigroup, Inc.
5.13%, 05/05/14		439,000		463,415
6.38%, 08/12/14		350,000		379,367
5.00%, 09/15/14		650,000		684,749
4.45%, 01/10/17		1,100,000		1,221,616
Credit Suisse USA, Inc.
5.50%, 05/01/14		200,000		213,213
5.13%, 08/15/15		500,000		555,438
Deutsche Bank AG
3.45%, 03/30/15		250,000		264,735
3.25%, 01/11/16		300,000		318,689
Fifth Third Bancorp
3.63%, 01/25/16		300,000		321,785
HSBC Bank USA
4.63%, 04/01/14		450,000		471,215
JPMorgan Chase & Co.
4.88%, 03/15/14		650,000		678,705
3.45%, 03/01/16		100,000		106,704
3.15%, 07/05/16		750,000		795,763
2.00%, 08/15/17		750,000		764,944
KeyCorp
3.75%, 08/13/15		250,000		268,559
Merrill Lynch & Co., Inc.
5.45%, 07/15/14		400,000		426,874
6.05%, 05/16/16		350,000		387,190
Morgan Stanley
4.75%, 04/01/14		150,000		155,302
2.88%, 07/28/14		250,000		255,961
5.38%, 10/15/15		750,000		812,899

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
3.80%, 04/29/16		700,000		729,751
6.25%, 08/28/17		400,000		450,956
National Australia Bank Ltd.
1.60%, 08/07/15		250,000		254,629
PNC Funding Corp.
4.25%, 09/21/15		500,000		547,614
Rabobank Nederland
1.85%, 01/10/14		275,000		278,890
3.38%, 01/19/17		150,000		161,462
Royal Bank of Canada
1.15%, 03/13/15		250,000		253,354
2.63%, 12/15/15		300,000		316,650
Royal Bank of Scotland Group PLC
2.55%, 09/18/15		700,000		716,750
State Street Corp.
2.88%, 03/07/16		200,000		213,229
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)		750,000		776,496
The Bear Stearns Cos. LLC
5.55%, 01/22/17		500,000		566,242
The Goldman Sachs Group, Inc.
6.00%, 05/01/14		550,000		587,439
5.13%, 01/15/15		500,000		538,093
3.30%, 05/03/15		400,000		416,916
5.35%, 01/15/16		475,000		527,648
3.63%, 02/07/16		250,000		265,131
6.25%, 09/01/17		100,000		116,861
Toronto-Dominion Bank
2.50%, 07/14/16		250,000		263,730
UBS AG
2.25%, 01/28/14		300,000		304,766
Union Bank NA
3.00%, 06/06/16		250,000		265,231
US Bancorp
2.20%, 11/15/16 (b)		250,000		262,317
1.65%, 05/15/17 (b)		300,000		307,292
Wells Fargo & Co.
4.88%, 02/15/14		200,000		208,699
5.00%, 11/15/14		150,000		161,479
4.75%, 02/09/15		600,000		646,760
5.13%, 09/15/16		1,000,000		1,139,829
Westpac Banking Corp.
4.20%, 02/27/15		500,000		537,608

				28,870,401


Brokerage 0.2%
BlackRock, Inc.
3.50%, 12/10/14		200,000		211,614
Jefferies Group, Inc.
5.88%, 06/08/14		200,000		211,500
5.50%, 03/15/16		65,000		69,550
Nomura Holdings, Inc.
5.00%, 03/04/15		200,000		212,038
TD Ameritrade Holding Co.
4.15%, 12/01/14		150,000		160,126

				864,828


Finance Company 0.8%
GATX Corp.
4.75%, 05/15/15		150,000		160,732
General Electric Capital Corp.
2.15%, 01/09/15		1,000,000		1,026,358
2.30%, 04/27/17		1,250,000		1,293,013
HSBC Finance Corp.
5.00%, 06/30/15		400,000		434,974
5.50%, 01/19/16		150,000		166,880
SLM Corp.
4.63%, 09/25/17		400,000		407,750

				3,489,707


Insurance 0.9%
ACE INA Holdings, Inc.
5.70%, 02/15/17		250,000		296,241
Aflac, Inc.
3.45%, 08/15/15		150,000		160,088
American International Group, Inc.
3.00%, 03/20/15		100,000		103,970
2.38%, 08/24/15		100,000		102,088
5.05%, 10/01/15		100,000		110,041
4.88%, 09/15/16		350,000		392,150
Berkshire Hathaway Finance Corp.
4.85%, 01/15/15		500,000		545,649
Cigna Corp.
2.75%, 11/15/16		250,000		263,715
5.38%, 03/15/17		100,000		114,086
CNA Financial Corp.
6.50%, 08/15/16		150,000		173,697
Genworth Financial, Inc.
5.75%, 06/15/14		150,000		155,539
Jefferson-Pilot Corp.
4.75%, 01/30/14		100,000		104,221
MetLife, Inc.
2.38%, 02/06/14		325,000		331,884
Principal Financial Group, Inc.
7.88%, 05/15/14		100,000		109,964
Prudential Financial, Inc.
5.10%, 09/20/14		400,000		429,007
The Chubb Corp.
6.38%, 03/29/67 (a)(b)		100,000		107,125
The Travelers Co., Inc.
5.50%, 12/01/15		400,000		454,816
UnitedHealth Group, Inc.
1.40%, 10/15/17		250,000		252,022
WellPoint, Inc.
5.25%, 01/15/16		100,000		112,173

				4,318,476


Other Financial 0.1%
CME Group, Inc.
5.75%, 02/15/14		150,000		159,076
ORIX Corp.
4.71%, 04/27/15		150,000		159,647

				318,723


Real Estate Investment Trust 0.4%
Health Care REIT, Inc.
3.63%, 03/15/16		475,000		502,806
ProLogis LP
7.63%, 08/15/14		500,000		548,150
Simon Property Group LP
5.10%, 06/15/15		200,000		221,228
5.25%, 12/01/16 (b)		500,000		574,320

				1,846,504

				39,708,639

Industrial 9.9%


Basic Industry 0.8%
Alcoa, Inc.
5.55%, 02/01/17 (e)		150,000		166,518

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Barrick Gold Corp.
1.75%, 05/30/14		200,000		202,905
BHP Billiton Finance (USA) Ltd.
1.00%, 02/24/15		400,000		403,106
1.63%, 02/24/17		100,000		102,793
EI Du Pont de Nemours & Co.
1.75%, 03/25/14		150,000		152,486
5.25%, 12/15/16		250,000		290,465
Freeport-McMoRan Copper & Gold, Inc.
1.40%, 02/13/15		200,000		201,923
International Paper Co.
5.30%, 04/01/15		150,000		163,509
Monsanto Co.
2.75%, 04/15/16		200,000		213,402
Praxair, Inc.
4.38%, 03/31/14		400,000		420,220
Rio Tinto Finance USA Ltd.
1.88%, 11/02/15		150,000		154,201
Rio Tinto Finance USA PLC
1.13%, 03/20/15		250,000		253,011
The Dow Chemical Co.
5.90%, 02/15/15		400,000		443,383
Vale Overseas Ltd.
6.25%, 01/23/17		200,000		231,947

				3,399,869


Capital Goods 0.9%
3M Co.
1.38%, 09/29/16		150,000		153,532
Bemis Co., Inc.
5.65%, 08/01/14		50,000		53,614
Boeing Capital Corp.
2.13%, 08/15/16 (b)		300,000		314,127
Caterpillar Financial Services Corp.
1.25%, 11/06/17		750,000		754,365
CRH America, Inc.
6.00%, 09/30/16		75,000		84,479
Emerson Electric Co.
5.00%, 12/15/14		200,000		217,603
General Dynamics Corp.
2.25%, 07/15/16		100,000		105,414
General Electric Co.
0.85%, 10/09/15		100,000		100,115
Honeywell International, Inc.
3.88%, 02/15/14		150,000		156,158
Ingersoll-Rand Global Holding Co., Ltd.
9.50%, 04/15/14		100,000		111,380
John Deere Capital Corp.
5.50%, 04/13/17		150,000		177,795
2.80%, 09/18/17		500,000		537,146
Lockheed Martin Corp.
2.13%, 09/15/16		100,000		104,205
Northrop Grumman Corp.
3.70%, 08/01/14		225,000		236,185
Turlock Corp.
0.95%, 11/02/15		200,000		200,132
1.50%, 11/02/17		150,000		150,866
United Technologies Corp.
1.80%, 06/01/17		300,000		310,536
Waste Management, Inc.
5.00%, 03/15/14		50,000		52,661
6.38%, 03/11/15		100,000		112,383

				3,932,696


Communications 1.6%
America Movil, S.A.B. de CV
3.63%, 03/30/15		150,000		160,496
2.38%, 09/08/16		250,000		262,453
AT&T, Inc.
2.50%, 08/15/15		300,000		313,590
BellSouth Corp.
5.20%, 12/15/16		750,000		869,923
British Telecommunications PLC
2.00%, 06/22/15		100,000		102,899
Cellco Partnership / Verizon Wireless
5.55%, 02/01/14		350,000		368,600
Comcast Corp.
5.30%, 01/15/14		400,000		421,130
6.50%, 01/15/17		100,000		121,475
COX Communications, Inc.
5.50%, 10/01/15		150,000		169,197
Deutsche Telekom International Finance BV
4.88%, 07/08/14		200,000		212,288
DIRECTV Holdings LLC
4.75%, 10/01/14		100,000		106,876
3.13%, 02/15/16		300,000		315,549
France Telecom S.A.
4.38%, 07/08/14		200,000		210,712
NBCUniversal Media LLC
2.10%, 04/01/14		175,000		178,463
3.65%, 04/30/15		200,000		213,453
News America, Inc.
5.30%, 12/15/14		100,000		109,086
Omnicom Group, Inc.
5.90%, 04/15/16		200,000		229,317
Qwest Corp.
7.50%, 10/01/14		200,000		219,864
Telecom Italia Capital S.A.
6.18%, 06/18/14		150,000		157,875
Telefonica Emisiones S.A.U.
4.95%, 01/15/15		200,000		207,540
3.73%, 04/27/15		150,000		152,625
3.99%, 02/16/16		275,000		279,675
Time Warner Cable, Inc.
7.50%, 04/01/14		100,000		108,800
3.50%, 02/01/15		100,000		105,831
5.85%, 05/01/17		150,000		177,940
Verizon Communications, Inc.
0.70%, 11/02/15		250,000		250,381
2.00%, 11/01/16		200,000		208,204
Vodafone Group PLC
4.15%, 06/10/14		175,000		184,144
2.88%, 03/16/16		225,000		238,745
5.63%, 02/27/17		250,000		295,715

				6,952,846


Consumer Cyclical 1.4%
CVS Caremark Corp.
4.88%, 09/15/14		100,000		107,705
5.75%, 06/01/17		150,000		180,409
Daimler Finance North America LLC
2.30%, 01/09/15		100,000		102,610
eBay, Inc.
1.63%, 10/15/15		125,000		128,460
1.35%, 07/15/17		150,000		152,373
Ford Motor Credit Co. LLC
8.00%, 06/01/14		500,000		545,240
3.88%, 01/15/15		500,000		519,570
6.63%, 08/15/17		400,000		466,310

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Lowe’s Cos., Inc.
5.00%, 10/15/15		100,000		112,198
Macy’s Retail Holdings, Inc.
5.75%, 07/15/14		425,000		457,713
Marriott International, Inc.
6.20%, 06/15/16		150,000		174,147
McDonald’s Corp.
5.30%, 03/15/17		100,000		118,293
Nordstrom, Inc.
6.75%, 06/01/14		200,000		217,969
PACCAR, Inc.
6.88%, 02/15/14		150,000		161,043
Target Corp.
5.88%, 07/15/16		150,000		176,936
The Home Depot, Inc.
5.40%, 03/01/16		300,000		344,885
The Walt Disney Co.
0.88%, 12/01/14		150,000		151,186
1.35%, 08/16/16		150,000		152,680
Time Warner, Inc.
3.15%, 07/15/15		300,000		318,605
Toyota Motor Credit Corp.
0.88%, 07/17/15		200,000		200,662
2.80%, 01/11/16		500,000		529,007
Viacom, Inc.
1.25%, 02/27/15		100,000		101,069
2.50%, 12/15/16		150,000		157,355
Wal-Mart Stores, Inc.
3.20%, 05/15/14		350,000		364,178
2.80%, 04/15/16		225,000		241,383

				6,181,986


Consumer Non-Cyclical 2.8%
AbbVie, Inc.
1.75%, 11/06/17 (c)		400,000		406,096
Altria Group, Inc.
4.13%, 09/11/15		100,000		108,944
Amgen, Inc.
4.85%, 11/18/14		200,000		215,359
2.50%, 11/15/16		200,000		209,923
Anheuser-Busch InBev Worldwide, Inc.
4.13%, 01/15/15		150,000		160,855
1.38%, 07/15/17		700,000		708,377
Baxter International, Inc.
4.63%, 03/15/15		100,000		108,908
Boston Scientific Corp.
4.50%, 01/15/15		250,000		266,619
Bunge Ltd Finance Corp.
3.20%, 06/15/17		250,000		261,840
Coca-Cola Enterprises, Inc.
2.13%, 09/15/15		150,000		154,832
Colgate-Palmolive Co.
1.25%, 05/01/14		125,000		126,355
2.63%, 05/01/17		250,000		268,945
ConAgra Foods, Inc.
1.35%, 09/10/15		250,000		250,357
Diageo Capital PLC
7.38%, 01/15/14		200,000		214,829
Express Scripts Holding Co.
2.10%, 02/12/15 (c)		250,000		255,128
2.65%, 02/15/17 (c)		1,050,000		1,098,112
General Mills, Inc.
5.70%, 02/15/17		250,000		296,129
GlaxoSmithKline Capital PLC
0.75%, 05/08/15		200,000		201,270
1.50%, 05/08/17		150,000		153,120
Johnson & Johnson
1.20%, 05/15/14		150,000		151,929
2.15%, 05/15/16		50,000		52,536
Kellogg Co.
4.45%, 05/30/16		100,000		111,325
Kraft Foods, Inc.
4.13%, 02/09/16		300,000		328,477
6.50%, 08/11/17		300,000		368,992
Lorillard Tobacco Co.
2.30%, 08/21/17		100,000		101,757
Mattel, Inc.
2.50%, 11/01/16		100,000		104,640
McKesson Corp.
3.25%, 03/01/16		250,000		269,560
Medtronic, Inc.
2.63%, 03/15/16		200,000		211,940
Merck & Co., Inc.
2.25%, 01/15/16		300,000		314,313
Novartis Capital Corp.
4.13%, 02/10/14		350,000		364,967
2.90%, 04/24/15		150,000		158,613
PepsiCo, Inc.
2.50%, 05/10/16		200,000		212,209
1.25%, 08/13/17		300,000		304,006
Pfizer, Inc.
4.50%, 02/15/14		250,000		262,772
5.35%, 03/15/15		200,000		221,231
Philip Morris International, Inc.
1.13%, 08/21/17		250,000		250,767
Procter & Gamble Co.
4.95%, 08/15/14		200,000		215,617
1.80%, 11/15/15		250,000		259,883
Reynolds American, Inc.
1.05%, 10/30/15		250,000		250,306
7.63%, 06/01/16		43,000		51,630
Safeway, Inc.
6.25%, 03/15/14		200,000		211,776
6.35%, 08/15/17		150,000		171,645
Sanofi
2.63%, 03/29/16		250,000		263,760
Teva Pharmaceutical Finance III BV
1.70%, 03/21/14		200,000		202,765
Teva Pharmaceutical Finance IV LLC
1.70%, 11/10/14		250,000		254,896
The Coca-Cola Co.
1.50%, 11/15/15		450,000		462,776
Thermo Fisher Scientific, Inc.
2.25%, 08/15/16		250,000		260,120
Unilever Capital Corp.
0.45%, 07/30/15		150,000		149,657
0.85%, 08/02/17		100,000		99,237
Watson Pharmaceuticals, Inc.
1.88%, 10/01/17		400,000		407,925

				12,518,025


Energy 1.1%
Anadarko Petroleum Corp.
7.63%, 03/15/14		250,000		270,117
5.95%, 09/15/16		200,000		232,179
Apache Corp.
1.75%, 04/15/17		200,000		206,489
BP Capital Markets PLC
3.13%, 10/01/15		400,000		426,049
3.20%, 03/11/16		100,000		107,159

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
1.85%, 05/05/17		500,000		511,939
Canadian Natural Resources Ltd.
1.45%, 11/14/14		200,000		202,985
Chevron Corp.
3.95%, 03/03/14		100,000		104,242
Devon Energy Corp.
1.88%, 05/15/17 (b)		250,000		256,097
Marathon Oil Corp.
0.90%, 11/01/15		250,000		250,451
Marathon Petroleum Corp.
3.50%, 03/01/16		250,000		267,155
Occidental Petroleum Corp.
1.75%, 02/15/17		300,000		309,493
Phillips 66
2.95%, 05/01/17 (c)		300,000		320,089
Shell International Finance BV
4.00%, 03/21/14		250,000		261,291
3.10%, 06/28/15		300,000		318,918
Total Capital S.A.
3.00%, 06/24/15		100,000		105,933
2.30%, 03/15/16		100,000		104,877
1.50%, 02/17/17		200,000		203,383
Transocean, Inc.
4.95%, 11/15/15		450,000		494,045

				4,952,891


Technology 1.1%
Agilent Technologies, Inc.
5.50%, 09/14/15		250,000		279,635
Cisco Systems, Inc.
2.90%, 11/17/14		100,000		104,701
5.50%, 02/22/16		250,000		287,394
Dell, Inc.
2.30%, 09/10/15		200,000		206,808
Google, Inc.
1.25%, 05/19/14		250,000		253,172
Hewlett-Packard Co.
6.13%, 03/01/14		500,000		523,363
2.63%, 12/09/14		400,000		399,222
2.60%, 09/15/17		150,000		142,970
Intel Corp.
1.95%, 10/01/16		350,000		364,743
International Business Machines Corp.
1.25%, 02/06/17		1,200,000		1,215,763
Microsoft Corp.
2.95%, 06/01/14		150,000		155,889
1.63%, 09/25/15		250,000		257,493
Oracle Corp.
5.25%, 01/15/16		250,000		284,297
1.20%, 10/15/17		150,000		150,509
Texas Instruments Inc
2.38%, 05/16/16		150,000		157,713
Xerox Corp.
4.25%, 02/15/15		150,000		157,879
2.95%, 03/15/17		150,000		153,713

				5,095,264


Transportation 0.2%
Burlington Northern Santa Fe Corp.
7.00%, 02/01/14		150,000		160,900
CSX Corp.
6.25%, 04/01/15		250,000		280,807
Ryder System, Inc.
3.15%, 03/02/15		300,000		310,551
Southwest Airlines Co.
5.25%, 10/01/14		150,000		160,141

				912,399

				43,945,976

Utilities 1.4%


Electric 0.9%
Commonwealth Edison Co.
1.63%, 01/15/14		50,000		50,647
1.95%, 09/01/16 (b)		100,000		103,746
Dominion Resources, Inc.
1.80%, 03/15/14		500,000		507,142
5.15%, 07/15/15		200,000		221,627
Duke Energy Corp.
1.63%, 08/15/17		700,000		707,829
Exelon Corp.
4.90%, 06/15/15		400,000		438,347
FirstEnergy Solutions Corp.
4.80%, 02/15/15		250,000		269,447
National Rural Utilities Cooperative Finance Corp.
3.05%, 03/01/16		150,000		160,132
5.45%, 04/10/17		100,000		118,284
NextEra Energy Capital Holdings, Inc.
7.88%, 12/15/15		150,000		179,937
PPL Energy Supply LLC
6.20%, 05/15/16		150,000		172,880
PSEG Power LLC
5.50%, 12/01/15		150,000		168,189
Southern California Edison Co.
5.75%, 03/15/14		300,000		319,933
The Southern Co.
2.38%, 09/15/15		500,000		523,745

				3,941,885


Natural Gas 0.5%
Energy Transfer Partners LP
5.95%, 02/01/15		200,000		219,715
Enterprise Products Operating LLC
9.75%, 01/31/14		225,000		247,766
5.60%, 10/15/14		150,000		162,995
Kinder Morgan Energy Partners LP
3.50%, 03/01/16		300,000		321,030
ONEOK Partners LP
6.15%, 10/01/16		150,000		175,947
Plains All American Pipeline LP
3.95%, 09/15/15		150,000		162,190
Sempra Energy
6.50%, 06/01/16		200,000		236,655
TransCanada PipeLines Ltd.
3.40%, 06/01/15		100,000		106,274
Williams Partners LP
7.25%, 02/01/17		400,000		488,190

				2,120,762

				6,062,647

Total Corporate Bonds
(Cost $87,481,694)				89,717,262

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Municipal Bonds 0.2% of net assets

Fixed-Rate Obligations 0.2%
California
GO Bonds
3.95%, 11/01/15		350,000		379,179
Illinois
GO Bonds
4.42%, 01/01/15		50,000		53,085
GO Bonds Series 2011
5.37%, 03/01/17		250,000		281,525

Total Municipal Bonds
(Cost $701,897)				713,789



	Number		Value
Security	of Shares		($)

Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		490,383		490,383

Total Other Investment Company
(Cost $490,383)				490,383



End of Investments.



Collateral Invested for Securities on Loan 0.0% of net assets


State Street Institutional U.S. Government Money Market Fund		163,300		163,300

Total Collateral Invested for Securities on Loan
(Cost $163,300)				163,300



End of Collateral Invested for Securities on Loan

At 11/30/12, the tax basis cost of the fund’s investments was $435,013,483, and the unrealized appreciation and depreciation were $6,339,337 and ($37,891), respectively, with a net unrealized appreciation of $6,301,446.


(a)		Variable-rate security.
(b)		The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $2,079,425 or 0.5% of net assets.
(d)		Guaranteed by the Republic of Germany.
(e)		All or a portion of this security is on loan.


GO —		General obligation
REIT —		Real Estate Investment Trust

Under procedures approved by the fund’s Board of Trustees (the “Board”), the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair market value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued


	•	Underlying funds: valued at their respective net asset values.

In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America (GAAP), the fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2012:


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

U.S. Government and Government Agencies¹		$—		$320,162,234		$—		$320,162,234
Foreign Securities¹		—		30,231,261		—		30,231,261
Corporate Bonds¹		—		89,717,262		—		89,717,262
Municipal Bonds¹		—		713,789		—		713,789
Other Investment Company¹		490,383		—		—		490,383

Total		$490,383		$440,824,546		$—		$441,314,929

Other Financial Instruments
Collateral Invested for Securities on Loan		$163,300		$—		$—		$163,300


¹		As categorized in Portfolio Holdings.

Schwab Investments
Schwab Premier Income Fund

(as of December 15, 2012, known as Schwab Intermediate-Term Bond Fund)

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.


				Cost			Value
Holdings by Category				($)			($)

	23	.8%	Corporate Bonds		93,666,135			96,984,595
	0	.2%	Asset-Backed Obligations		1,008,015			1,007,476
	40	.1%	Mortgage-Backed Securities		159,235,911			163,646,677
	2	.2%	Commercial Mortgage Backed Securities		8,296,814			9,087,506
	35	.9%	U.S. Government and Government Agencies		142,486,348			146,318,167
	3	.2%	Foreign Securities		12,613,544			13,258,394
	0	.3%	Other Investment Company		1,074,979			1,074,979
	3	.7%	Short-Term Investments		14,999,174			14,999,287


	109	.4%	Total Investments		433,380,920			446,377,081
	(1	.9)%	TBA Sale Commitments		(7,639,844	)		(7,689,064	)
	(7	.5)%	Other Assets and Liabilities, Net					(30,758,896	)


	100	.0%	Net Assets					407,929,121


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Corporate Bonds 23.8% of net assets

Finance 9.9%


Banking 6.7%
American Express Co.
5.50%, 09/12/16		500,000		575,838
Banco Santander Chile
3.88%, 09/20/22		1,000,000		1,018,698
Bank of America Corp.
7.38%, 05/15/14		500,000		543,131
5.63%, 10/14/16		500,000		569,402
7.63%, 06/01/19		500,000		640,153
BB&T Corp.
3.95%, 03/22/22 (b)		250,000		273,394
BNP Paribas
5.00%, 01/15/21		300,000		335,847
Capital One Capital III
7.69%, 08/15/36		2,000,000		2,017,380
Capital One Financial Corp.
1.00%, 11/06/15		500,000		498,466
4.75%, 07/15/21		500,000		579,063
Citigroup, Inc.
5.00%, 09/15/14		1,250,000		1,316,825
Deutsche Bank Financial LLC
5.38%, 03/02/15		500,000		530,042
Fifth Third Bancorp
3.63%, 01/25/16		600,000		643,569
First Horizon National Corp.
4.50%, 05/15/13		1,000,000		1,013,098
JPMorgan Chase & Co.
3.70%, 01/20/15		700,000		738,162
6.00%, 01/15/18		1,000,000		1,194,581
4.40%, 07/22/20		250,000		280,387
3.25%, 09/23/22		1,000,000		1,036,482
Macquarie Group Ltd.
6.25%, 01/14/21 (c)		300,000		330,070
Merrill Lynch & Co., Inc.
6.88%, 04/25/18		500,000		602,128
Morgan Stanley
4.75%, 04/01/14		1,000,000		1,035,349
5.75%, 10/18/16		500,000		553,175
5.50%, 07/28/21		1,000,000		1,145,579
PNC Financial Services Group, Inc.
2.85%, 11/09/22 (a)		1,000,000		1,022,900
Rabobank Nederland
2.13%, 10/13/15		300,000		309,674
3.95%, 11/09/22		500,000		507,758
Royal Bank of Scotland Group PLC
2.55%, 09/18/15		1,000,000		1,023,929
Santander Holdings USA, Inc.
4.63%, 04/19/16		100,000		106,335
Societe Generale SA
2.75%, 10/12/17		1,000,000		1,011,890
Sumitomo Mitsui Banking Corp.
1.95%, 01/14/14 (c)		500,000		505,180
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)		1,000,000		1,035,328
The Goldman Sachs Group, Inc.
3.30%, 05/03/15		250,000		260,573
5.35%, 01/15/16		500,000		555,419
3.63%, 02/07/16		500,000		530,262
5.63%, 01/15/17		1,000,000		1,096,805
6.15%, 04/01/18		250,000		292,373
UBS AG
4.88%, 08/04/20		500,000		584,961
Wells Fargo & Co.
4.75%, 02/09/15		1,000,000		1,077,934

				27,392,140


Brokerage 0.1%
Nomura Holdings, Inc.
5.00%, 03/04/15		300,000		318,058


Finance Company 0.8%
General Electric Capital Corp.
0.51%, 06/20/13 (a)		1,300,000		1,300,291
5.63%, 05/01/18		500,000		596,433
HSBC Finance Corp.
5.50%, 01/19/16		300,000		333,760
SLM Corp.
4.63%, 09/25/17		600,000		611,625
7.25%, 01/25/22		350,000		385,875

				3,227,984

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)


Insurance 1.4%
American International Group, Inc.
4.25%, 05/15/13 (a)		503,000		510,891
2.38%, 08/24/15		600,000		612,529
Berkshire Hathaway Finance Corp.
5.40%, 05/15/18		500,000		605,128
Cigna Corp.
5.13%, 06/15/20		500,000		576,171
4.00%, 02/15/22 (b)		250,000		274,192
CNA Financial Corp.
5.88%, 08/15/20		250,000		294,700
ING US, Inc.
5.50%, 07/15/22		150,000		163,412
Nationwide Financial Services, Inc.
5.63%, 02/13/15		350,000		368,988
The Chubb Corp.
6.38%, 03/29/67 (a)(b)		100,000		107,125
Travelers Co., Inc.
5.90%, 06/02/19		150,000		187,823
UnitedHealth Group, Inc.
0.85%, 10/15/15		800,000		803,914
1.40%, 10/15/17		500,000		504,044
2.75%, 02/15/23 (b)		750,000		763,052

				5,771,969


Real Estate Investment Trust 0.9%
AvalonBay Communities, Inc.
2.95%, 09/15/22 (b)		750,000		751,183
Reckson Operating Partnership LP
6.00%, 03/31/16		1,000,000		1,103,266
Simon Property Group LP
2.80%, 01/30/17 (b)		300,000		319,077
Ventas Realty LP
3.13%, 11/30/15		500,000		528,951
3.25%, 08/15/22 (b)		100,000		99,507
WEA Finance LLC / WT Finance Aust Pty Ltd.
3.38%, 10/03/22 (b)		1,000,000		1,020,475

				3,822,459

				40,532,610

Industrial 12.0%


Basic Industry 1.2%
Alcoa, Inc.
6.75%, 07/15/18		500,000		580,509
Southern Copper Corp.
3.50%, 11/08/22		250,000		256,810
Teck Resources Ltd.
2.50%, 02/01/18		250,000		253,903
The Dow Chemical Co.
7.60%, 05/15/14		500,000		548,155
4.25%, 11/15/20 (b)		800,000		887,757
Vale Overseas Ltd.
4.38%, 01/11/22		400,000		425,670
Valspar Corp.
4.20%, 01/15/22 (b)		100,000		108,620
Xstrata Finance Canada Ltd.
2.85%, 11/10/14 (c)		100,000		102,607
1.80%, 10/23/15		1,000,000		1,005,129
4.00%, 10/25/22		500,000		506,885

				4,676,045


Capital Goods 1.3%
Caterpillar Financial Services Corp.
0.70%, 11/06/15		500,000		499,322
CRH America, Inc.
5.30%, 10/15/13		300,000		310,909
General Electric Co.
0.85%, 10/09/15		500,000		500,577
5.25%, 12/06/17		500,000		592,217
2.70%, 10/09/22		750,000		766,233
John Deere Capital Corp.
2.95%, 03/09/15		350,000		367,496
L-3 Communications Corp.
5.20%, 10/15/19		250,000		288,203
Lockheed Martin Corp.
2.13%, 09/15/16		300,000		312,616
The Boeing Co.
4.88%, 02/15/20		500,000		609,675
Turlock Corp.
0.95%, 11/02/15		100,000		100,066
1.50%, 11/02/17		100,000		100,577
2.75%, 11/02/22		750,000		757,087

				5,204,978


Communications 2.2%
America Movil, S.A.B. de CV
2.38%, 09/08/16		750,000		787,358
AT&T, Inc.
0.88%, 02/13/15		750,000		753,742
British Telecommunications PLC
1.50%, 12/20/13 (a)		200,000		201,404
2.00%, 06/22/15		100,000		102,899
CenturyLink, Inc.
5.80%, 03/15/22		500,000		529,324
Comcast Corp.
5.88%, 02/15/18		750,000		913,447
DIRECTV Holdings LLC
3.55%, 03/15/15		250,000		263,350
NBCUniversal Media LLC
4.38%, 04/01/21		750,000		853,174
Telecom Italia Capital S.A.
7.00%, 06/04/18		500,000		565,625
Telefonica Chile S.A.
3.88%, 10/12/22 (c)		500,000		495,989
Telefonica Emisiones S.A.U.
2.58%, 04/26/13		1,500,000		1,509,375
Time Warner Cable, Inc.
6.75%, 07/01/18		500,000		626,793
Verizon Communications, Inc.
0.70%, 11/02/15		750,000		751,143
2.45%, 11/01/22 (b)		500,000		503,025

				8,856,648


Consumer Cyclical 2.1%
Darden Restaurants, Inc.
3.35%, 11/01/22 (b)		250,000		251,411
Ford Motor Credit Co. LLC
7.00%, 10/01/13		1,500,000		1,572,484
4.25%, 09/20/22		1,000,000		1,040,537
Hyundai Capital America
1.63%, 10/02/15		1,000,000		1,007,674
2.13%, 10/02/17		1,000,000		1,013,646
International Game Technology
5.50%, 06/15/20		100,000		109,523
Macy’s Retail Holdings, Inc.
5.90%, 12/01/16		213,000		250,712
QVC, Inc.
5.13%, 07/02/22		500,000		530,830
Royal Caribbean Cruises Ltd.
7.00%, 06/15/13		1,050,000		1,084,125

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Target Corp.
6.00%, 01/15/18		500,000		620,367
The Gap, Inc.
5.95%, 04/12/21 (b)		500,000		571,256
Time Warner, Inc.
3.15%, 07/15/15		500,000		531,009
Viacom, Inc.
3.88%, 12/15/21		150,000		165,796

				8,749,370


Consumer Non-Cyclical 2.7%
AbbVie, Inc.
2.00%, 11/06/18		1,000,000		1,012,416
Amgen, Inc.
3.63%, 05/15/22 (b)		250,000		269,122
Anheuser-Busch InBev Worldwide, Inc.
1.38%, 07/15/17		700,000		708,377
Baxter International, Inc.
2.40%, 08/15/22		150,000		151,542
Boston Scientific Corp.
5.13%, 01/12/17		250,000		278,241
6.00%, 01/15/20		150,000		176,925
Express Scripts Holding Co.
2.10%, 02/12/15 (c)		250,000		255,128
Fresenius Medical Care US Finance II, Inc.
5.63%, 07/31/19		500,000		536,250
GlaxoSmithKline Capital PLC
2.85%, 05/08/22		250,000		262,434
Kraft Foods, Inc.
5.38%, 02/10/20		477,000		581,281
5.38%, 02/10/20 (c)		523,000		633,842
Lorillard Tobacco Co.
2.30%, 08/21/17		350,000		356,149
PepsiCo, Inc.
7.90%, 11/01/18		107,000		146,374
Philip Morris International, Inc.
1.13%, 08/21/17		400,000		401,227
2.50%, 08/22/22		600,000		605,628
Reynolds American, Inc.
1.05%, 10/30/15		650,000		650,796
3.25%, 11/01/22		100,000		101,946
Safeway, Inc.
3.95%, 08/15/20		925,000		923,072
Teva Pharmaceutical Finance Co. BV
2.40%, 11/10/16		750,000		786,394
Thermo Fisher Scientific, Inc.
2.25%, 08/15/16		500,000		520,241
Watson Pharmaceuticals, Inc.
1.88%, 10/01/17		1,000,000		1,019,812
3.25%, 10/01/22 (b)		500,000		515,337

				10,892,534


Energy 1.1%
Anadarko Petroleum Corp.
6.38%, 09/15/17		500,000		601,005
BP Capital Markets PLC
1.85%, 05/05/17		750,000		767,909
ConocoPhillips
6.00%, 01/15/20		600,000		770,673
Devon Energy Corp.
1.88%, 05/15/17 (b)		500,000		512,195
Halliburton Co.
6.15%, 09/15/19		150,000		190,455
Marathon Oil Corp.
0.90%, 11/01/15		250,000		250,451
Marathon Petroleum Corp.
3.50%, 03/01/16		250,000		267,155
Occidental Petroleum Corp.
4.10%, 02/01/21 (b)		250,000		289,504
Phillips 66
1.95%, 03/05/15 (c)		300,000		306,681
Schlumberger Investment S.A.
2.40%, 08/01/22 (b)		150,000		149,856
Total Capital S.A.
4.45%, 06/24/20		350,000		410,071
Transocean, Inc.
6.38%, 12/15/21		100,000		121,046

				4,637,001


Technology 1.1%
Google, Inc.
2.13%, 05/19/16		350,000		367,294
Hewlett-Packard Co.
3.30%, 12/09/16		500,000		497,619
3.75%, 12/01/20		1,000,000		916,573
IBM Corp.
5.70%, 09/14/17		500,000		606,487
Oracle Corp.
1.20%, 10/15/17		1,000,000		1,003,394
3.88%, 07/15/20		500,000		572,676
Seagate Technology International
10.00%, 05/01/14 (b)(c)		483,000		524,659

				4,488,702


Transportation 0.3%
Burlington Northern Santa Fe Corp.
7.00%, 02/01/14		100,000		107,267
3.60%, 09/01/20 (b)		250,000		274,010
CSX Corp.
7.38%, 02/01/19		300,000		384,704
FedEx Corp.
2.63%, 08/01/22		250,000		253,715
Union Pacific Corp.
5.75%, 11/15/17		200,000		241,867

				1,261,563

				48,766,841

Utilities 1.9%


Electric 1.0%
Ameren Illinois Co.
2.70%, 09/01/22		100,000		101,448
CenterPoint Energy Houston Electric LLC
2.25%, 08/01/22 (b)		100,000		99,818
Commonwealth Edison Co.
1.63%, 01/15/14		350,000		354,529
1.95%, 09/01/16 (b)		350,000		363,113
Dominion Resources, Inc.
6.40%, 06/15/18		500,000		627,144
Duke Energy Corp.
5.05%, 09/15/19		500,000		586,471
Pacific Gas & Electric Co.
3.50%, 10/01/20 (b)		500,000		554,776
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)		100,000		101,901
The Detroit Edison Co.
2.65%, 06/15/22 (b)		250,000		256,562
The Southern Co.
2.38%, 09/15/15		200,000		209,498

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
TransAlta Corp.
4.50%, 11/15/22 (b)		1,000,000		988,824

				4,244,084


Natural Gas 0.9%
Boardwalk Pipelines LP
3.38%, 02/01/23 (b)		1,000,000		986,667
CenterPoint Energy Resources Corp.
6.00%, 05/15/18		250,000		304,538
Energy Transfer Partners LP
8.50%, 04/15/14		401,000		437,779
Enterprise Products Operating LP
3.20%, 02/01/16		500,000		532,344
Kinder Morgan Energy Partners LP
3.45%, 02/15/23 (b)		200,000		205,070
Southwest Gas Corp.
3.88%, 04/01/22 (b)		300,000		333,786
Williams Partners LP
7.25%, 02/01/17		300,000		366,142
4.13%, 11/15/20 (b)		250,000		274,734

				3,441,060

				7,685,144

Total Corporate Bonds
(Cost $93,666,135)				96,984,595




Asset-Backed Obligations 0.2% of net assets


Chase Issuance Trust
Series 2012-A3 Class A3
0.79%, 06/15/17 (b)		1,000,000		1,007,476

Total Asset-Backed Obligations
(Cost $1,008,015)				1,007,476




Mortgage-Backed Securities 40.1% of net assets

Collateralized Mortgage Obligations 1.2%
ABN Amro Mortgage Corp.
Series 2003-9 Class A1
4.50%, 08/25/18 (b)		55,993		57,227
Chase Mortgage Finance Corp.
Series 2003-S13 Class A16
5.00%, 11/25/33 (b)		746,556		764,474
Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-23 Class 7A1
5.00%, 09/25/18 (b)		1,615,746		1,660,054
MASTR Asset Securitization Trust
Series 2003-10 Class 3A1
5.50%, 11/25/33 (b)		414,511		438,452
Residential Accredit Loans, Inc.
Series 2002-QS18 Class A1
5.50%, 12/25/17 (b)		61,402		62,925
Sequoia Mortgage Trust
Series 2011-1 Class A1
4.13%, 02/25/41 (b)		1,209,686		1,234,943
Series 2012-2 Class A2
3.50%, 04/25/42 (b)		840,784		872,542

				5,090,617

U.S. Government Agency Mortgages 38.9%
Fannie Mae
6.00%, 02/01/15 to 07/01/37 (b)		7,629,728		8,402,991
7.00%, 11/15/16 to 01/01/35 (b)		554,868		657,684
4.50%, 09/01/18 to 09/01/19 (b)		464,893		499,055
6.50%, 12/01/19 to 08/01/26 (b)		422,625		462,002
5.50%, 10/01/22 to 05/01/27 (b)		3,130,276		3,420,848
5.00%, 08/01/23 to 07/01/35 (b)		5,662,504		6,159,950
3.00%, 01/01/26 to 11/01/42 (b)		5,346,962		5,690,693
3.50%, 02/01/32 to 10/01/42 (b)		9,969,879		10,690,235
4.00%, 09/01/40 (b)		6,405,140		7,000,761
Fannie Mae REMICS
4.00%, 10/25/17 (b)		208,375		208,530
4.50%, 07/25/19 (b)		245,058		249,323
5.50%, 10/25/32 (b)		147,579		148,542
Fannie Mae TBA
2.50%, 12/01/27 (b)		1,500,000		1,569,375
3.50%, 12/01/27 to 12/01/42 (b)		3,500,000		3,723,828
4.00%, 12/01/27 to 12/01/42 (b)		4,500,000		4,819,297
4.50%, 12/01/27 to 12/01/42 (b)		13,000,000		14,009,531
3.00%, 12/01/42 (b)		2,000,000		2,105,000
6.00%, 12/01/42 (b)		2,000,000		2,192,813
Freddie Mac
4.50%, 01/01/13 to 12/01/39 (b)		4,143,100		4,435,775
6.50%, 10/01/13 to 04/01/26 (b)		646,461		716,249
6.00%, 06/01/16 to 08/01/22 (b)		433,006		479,485
4.00%, 12/01/20 to 10/01/41 (b)		6,006,309		6,412,299
5.50%, 02/01/23 to 10/01/33 (b)		8,546,662		9,278,896
5.00%, 01/01/24 (b)		776,106		848,468
3.00%, 03/01/27 (b)		432,706		455,377
Freddie Mac REMICS
4.00%, 09/15/17 to 11/15/23 (b)		1,843,850		1,881,119
4.50%, 03/15/19 (b)		671,942		682,320
5.00%, 02/15/32 to 08/15/32 (b)		1,223,768		1,240,492
6.00%, 07/15/33 (b)		539,893		544,920
Freddie Mac TBA
2.50%, 12/01/27 (b)		1,000,000		1,043,437
3.00%, 12/01/27 (b)		500,000		523,594
3.50%, 12/01/27 (b)		2,000,000		2,106,328
4.50%, 12/01/27 (b)		2,000,000		2,130,156
Ginnie Mae
4.00%, 12/15/24 to 11/15/40 (b)		5,461,503		5,992,648
7.63%, 08/15/28 (b)		169,395		191,257
7.38%, 09/15/28 to 02/15/30 (b)		401,140		459,736
7.13%, 02/15/29 to 03/15/29 (b)		246,131		286,766
7.00%, 04/15/29 to 05/15/29 (b)		244,440		289,448
5.50%, 02/15/33 to 08/20/34 (b)		9,953,692		11,050,696
5.00%, 02/20/33 to 11/15/34 (b)		14,384,364		15,849,170
4.50%, 09/20/41 to 11/20/41 (b)		9,419,854		10,392,329
3.50%, 06/20/42 to 09/20/42 (b)		3,501,828		3,823,230
Ginnie Mae TBA
3.00%, 12/01/42 (b)		1,000,000		1,067,344
3.50%, 12/01/42 (b)		2,500,000		2,722,266
4.00%, 12/01/42 (b)		1,500,000		1,641,797

				158,556,060

Total Mortgage-Backed Securities
(Cost $159,235,911)				163,646,677

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Commercial Mortgage Backed Securities 2.2% of net assets


Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (b)		3,000,000		3,366,471
Series 2006-T24 Class A4
5.54%, 10/12/41 (b)		1,000,000		1,159,833
Series 2007-T28 Class A4
5.74%, 09/11/42 (a)(b)		365,000		437,611
Greenwich Capital Commercial Funding Corp.
Series 2006-GG7 Class A4
6.06%, 07/10/38 (a)(b)		665,000		769,247
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		1,000,000		1,158,801
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5 Class A2
5.20%, 12/15/44 (b)		1,012,437		1,018,693
Series 2006-LDP9 Class A2S
5.30%, 05/15/47 (b)		73,195		74,821
Series 2007-LD12-A Class A2
5.83%, 02/15/51 (b)		226,544		232,658
LB-UBS Commercial Mortgage Trust
Series 2004-C4 Class A4
5.45%, 06/15/29 (a)(b)		100,000		106,640
Series 2006-C3 Class A3
5.69%, 03/15/32 (a)(b)		760,000		762,731

Total Commercial Mortgage Backed Securities
(Cost $8,296,814)				9,087,506




U.S. Government and Government Agencies 35.9% of net assets

U.S. Government Agency Securities 6.4%
Fannie Mae
1.63%, 10/26/15		7,000,000		7,253,505
2.38%, 04/11/16		2,000,000		2,131,320
0.88%, 10/26/17		8,000,000		8,075,544
Freddie Mac
2.50%, 05/27/16		7,500,000		8,040,742
1.25%, 08/01/19		600,000		605,827

				26,106,938

U.S. Treasury Obligations 29.5%
U.S. Treasury Notes
0.25%, 01/31/14		8,000,000		8,004,064
0.25%, 06/30/14		2,500,000		2,500,685
0.63%, 07/15/14		4,300,000		4,327,043
0.13%, 07/31/14		1,000,000		998,125
2.63%, 07/31/14		1,600,000		1,663,250
2.38%, 09/30/14		1,850,000		1,921,760
2.38%, 10/31/14		3,400,000		3,537,064
4.25%, 11/15/14		5,000,000		5,388,085
2.63%, 12/31/14		3,000,000		3,147,423
0.25%, 01/15/15		5,000,000		4,997,655
0.25%, 02/15/15		1,000,000		999,531
0.25%, 05/15/15		7,500,000		7,494,142
0.25%, 07/15/15		1,500,000		1,498,242
0.25%, 08/15/15		2,000,000		1,997,188
0.25%, 09/15/15		3,000,000		2,995,080
1.25%, 10/31/15		1,250,000		1,283,496
2.00%, 04/30/16		5,000,000		5,275,390
1.75%, 05/31/16		4,600,000		4,816,706
1.50%, 07/31/16		2,550,000		2,650,804
0.88%, 02/28/17		2,000,000		2,032,188
3.13%, 04/30/17		1,500,000		1,669,805
2.38%, 07/31/17		1,000,000		1,083,047
0.75%, 10/31/17		1,360,000		1,369,882
1.88%, 10/31/17		3,000,000		3,184,218
2.88%, 03/31/18		2,000,000		2,229,532
2.38%, 05/31/18		5,000,000		5,444,925
1.75%, 10/31/18		2,000,000		2,109,220
3.75%, 11/15/18		5,000,000		5,859,765
1.38%, 12/31/18		4,500,000		4,643,788
1.25%, 04/30/19		2,250,000		2,297,637
1.00%, 06/30/19		1,250,000		1,254,493
0.88%, 07/31/19		5,000,000		4,972,655
1.00%, 09/30/19		5,000,000		5,002,345
1.63%, 08/15/22		11,500,000		11,561,996

				120,211,229

Total U.S. Government and Government Agencies
(Cost $142,486,348)				146,318,167




Foreign Securities 3.2% of net assets

Foreign Agencies 1.5%


Cayman Islands 0.5%
Petrobras International Finance Co.
2.88%, 02/06/15		600,000		619,012
5.88%, 03/01/18		1,000,000		1,154,715

				1,773,727


Germany 0.5%
Kreditanstalt Fuer Wiederaufbau
3.50%, 03/10/14 (e)		750,000		780,025
4.00%, 01/27/20 (e)		1,000,000		1,177,396

				1,957,421


Mexico 0.3%
Petroleos Mexicanos
4.88%, 03/15/15		500,000		540,000
5.50%, 01/21/21		500,000		587,500

				1,127,500


Norway 0.1%
Statoil ASA
3.13%, 08/17/17		500,000		544,198


Republic of Korea 0.1%
Export-Import Bank of Korea
4.00%, 01/11/17		500,000		546,754

				5,949,600

Sovereign 1.1%


Brazil 0.2%
Federative Republic of Brazil
6.00%, 01/17/17		500,000		595,000
4.88%, 01/22/21		250,000		303,875

				898,875


Chile 0.2%
Republic of Chile
2.25%, 10/30/22		1,000,000		997,000

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)


Italy 0.3%
Republic of Italy
3.13%, 01/26/15		1,000,000		1,016,124


Mexico 0.2%
United Mexican States
5.13%, 01/15/20		500,000		601,000
3.63%, 03/15/22		250,000		275,938

				876,938


Republic of Korea 0.2%
Republic of Korea
5.13%, 12/07/16		750,000		874,829

				4,663,766

Supranational 0.6%
European Investment Bank
3.13%, 06/04/14		500,000		520,216
2.50%, 05/16/16		2,000,000		2,124,812

				2,645,028

Total Foreign Securities
(Cost $12,613,544)				13,258,394



	Number		Value
Security	of Shares		($)

Other Investment Company 0.3% of net assets

Money Market Fund 0.3%
State Street Institutional U.S. Government Money Market Fund		1,074,979		1,074,979

Total Other Investment Company
(Cost $1,074,979)				1,074,979



	Face
Issuer	Amount		Value
Rate, Maturity Date	($)		($)

Short-Term Investments 3.7% of net assets

U.S. Treasury Obligations 3.7%
U.S. Treasury Bills
0.13%, 12/13/12 (d)		10,000,000		9,999,653
0.16%, 12/20/12 (d)		5,000,000		4,999,634

Total Short-Term Investments
(Cost $14,999,174)				14,999,287



End of Investments.

At 11/30/12, the tax basis cost of the fund’s investments was $433,407,231 and the unrealized appreciation and depreciation were $13,157,472 and ($187,622), respectively, with a net unrealized appreciation of $12,969,850.


	Face
Security	Amount		Value
Rate, Maturity Dates	($)		($)

TBA Sale Commitment 1.9% of net assets

U.S. Government Agency Mortgage 1.9%
Ginnie Mae TBA
5.50%, 12/01/42 (b)		7,000,000		7,689,064

Total TBA Sale Commitment
(Proceeds $7,639,844)				7,689,064


(a)		Variable-rate security.
(b)		The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,154,156 or 0.8% of net assets.
(d)		The rate shown is the purchase yield.
(e)		Guaranteed by the Republic of Germany.

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued


		determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.


	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

Schwab Premier Income Fund

Portfolio Holdings (Unaudited) continued

Assets Valuation Input


	Quoted Prices in					Significant
	Active Markets for		Significant Other			Unobservable
	Identical Assets		Observable Inputs			Inputs
Description	(Level 1)		(Level 2)			(Level 3)		Total

Corporate Bonds¹		$—		$96,984,595			$—		$96,984,595
Asset-Backed Obligations		—		1,007,476			—		1,007,476
Mortgage-Backed Securities¹		—		163,646,677			—		163,646,677
Commercial Mortgage Backed Securities		—		9,087,506			—		9,087,506
U.S. Government and Government Agencies¹		—		146,318,167			—		146,318,167
Foreign Securities¹		—		13,258,394			—		13,258,394
Other Investment Company¹		1,074,979		—			—		1,074,979
Short-Term Investments¹		—		14,999,287			—		14,999,287

Total		$1,074,979		$445,302,102			$—		$446,377,081



Liabilities Valuation Input


Other Financial Instruments
TBA Sale Commitment		$—		($7,689,064	)		$—		($7,689,064	)


¹		As categorized in Portfolio Holdings.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2012.

REG406020NOV12

Schwab Investments
Schwab Total Bond Market Fund™

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.


				Cost			Value
Holdings by Category				($)			($)

	29	.7%	Mortgage-Backed Securities		267,483,078			278,887,322
	21	.2%	Corporate Bonds		183,339,645			199,442,360
	41	.0%	U.S. Government and Government Agencies		361,193,770			385,772,529
	1	.9%	Commercial Mortgage Backed Securities		15,537,486			17,793,699
	0	.3%	Asset-Backed Obligations		3,173,544			3,163,400
	4	.5%	Foreign Securities		39,168,856			41,916,157
	1	.0%	Municipal Bonds		8,110,171			9,611,093
	0	.8%	Other Investment Company		7,694,005			7,694,005
	5	.1%	Short-Term Investments		47,998,130			47,998,466


	105	.5%	Total Investments		933,698,685			992,279,031
	0	.0%	Collateral Invested for Securities on Loan		142,025			142,025
	(0	.2)%	TBA Sale Commitments		(1,594,219	)		(1,595,859	)
	(5	.3)%	Other Assets and Liabilities, Net					(49,915,580	)


	100	.0%	Net Assets					940,909,617


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Mortgage-Backed Securities 29.7% of net assets

U.S. Government Agency Mortgages 29.7%
Fannie Mae
5.50%, 12/01/13 to 07/01/40 (b)		18,711,447		20,724,664
5.00%, 12/01/17 to 12/01/39 (b)		16,606,970		18,055,082
4.50%, 04/01/18 to 09/01/41 (b)		18,090,926		19,646,919
4.00%, 07/01/18 to 11/01/41 (b)		17,509,573		18,844,676
6.00%, 09/01/24 to 12/01/37 (b)		9,713,899		10,789,220
3.50%, 03/01/26 to 10/01/42 (b)		14,536,209		15,585,723
6.50%, 08/01/26 to 11/01/37 (b)		4,064,051		4,643,029
2.50%, 03/01/27 to 10/01/27 (b)		1,783,795		1,866,659
3.00%, 03/01/27 to 11/01/42 (b)		7,694,385		8,118,353
2.28%, 03/01/34 (a)(b)		1,167,303		1,241,337
2.52%, 03/01/35 (a)(b)		540,396		568,062
2.90%, 08/01/35 (a)(b)		1,826,389		1,936,562
7.00%, 04/01/37 (b)		1,127,443		1,300,153
3.64%, 03/01/40 (a)(b)		542,425		574,978
Fannie Mae TBA
2.50%, 12/01/27 (b)		3,000,000		3,138,750
3.00%, 12/01/27 to 12/01/42 (b)		3,000,000		3,158,652
3.50%, 12/01/27 to 12/01/42 (b)		5,000,000		5,318,749
4.00%, 12/01/27 to 12/01/42 (b)		6,500,000		6,963,593
4.50%, 12/01/42 (b)		4,000,000		4,311,875
Freddie Mac
6.00%, 04/01/15 to 10/01/38 (b)		3,056,688		3,368,154
4.50%, 06/01/19 to 02/01/40 (b)		12,435,192		13,323,237
4.00%, 12/01/20 to 10/01/41 (b)		10,460,923		11,200,266
5.00%, 06/01/23 to 04/01/40 (b)		7,009,477		7,551,094
3.50%, 07/01/26 to 09/01/42 (b)		10,148,904		10,806,022
3.00%, 10/01/26 to 04/01/27 (b)		3,618,720		3,804,102
2.60%, 05/01/37 (a)(b)		934,617		992,181
2.82%, 11/01/37 (a)(b)		1,083,044		1,159,069
5.50%, 10/01/39 to 02/01/40 (b)		887,176		965,908
3.00%, 05/01/41 (a)(b)		626,427		657,278
Freddie Mac TBA
2.50%, 12/01/27 (b)		1,000,000		1,043,438
3.00%, 12/01/27 to 12/01/42 (b)		2,000,000		2,095,938
3.50%, 12/01/27 (b)		2,000,000		2,106,328
4.00%, 12/01/42 (b)		500,000		533,203
4.50%, 12/01/42 (b)		2,000,000		2,141,250
5.00%, 12/01/42 (b)		2,000,000		2,146,251
Ginnie Mae
5.00%, 10/20/21 to 08/20/40 (b)		8,618,626		9,524,420
4.50%, 05/15/24 to 11/20/41 (b)		14,510,970		15,968,357
3.50%, 02/15/26 to 09/20/42 (b)		6,907,331		7,535,117
4.00%, 06/15/26 to 06/20/42 (b)		9,572,486		10,473,434
3.00%, 02/20/27 (b)		479,546		512,685
6.00%, 05/15/32 to 08/15/38 (b)		2,366,821		2,677,716
5.50%, 04/15/33 to 03/15/40 (b)		4,242,035		4,672,296
7.00%, 06/15/33 (b)		331,985		392,883
6.50%, 10/20/37 to 08/15/39 (b)		1,196,439		1,370,546
3.00%, 10/20/40 to 01/20/41 (a)(b)		896,464		954,894
Ginnie Mae TBA
3.00%, 12/01/42 (b)		2,000,000		2,134,687
3.50%, 12/01/42 (b)		5,000,000		5,444,531
4.00%, 12/01/42 (b)		2,000,000		2,189,063
4.50%, 12/01/42 (b)		2,000,000		2,179,375
5.00%, 01/01/43 (b)		2,000,000		2,176,563

Total Mortgage-Backed Securities
(Cost $267,483,078)				278,887,322




Corporate Bonds 21.2% of net assets

Finance 6.9%


Banking 4.5%
American Express Bank
7.00%, 03/19/18		300,000		383,795
American Express Co.
6.80%, 09/01/66 (a)(b)		500,000		539,375
American Express Credit Corp.
2.38%, 03/24/17		300,000		315,667
Bank of America Corp.
1.50%, 10/09/15		650,000		652,762
5.63%, 10/14/16		500,000		569,402
5.65%, 05/01/18		400,000		464,031
5.00%, 05/13/21		1,500,000		1,723,255
6.00%, 10/15/36		1,000,000		1,223,857

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Bank of Nova Scotia
3.40%, 01/22/15		100,000		105,820
4.38%, 01/13/21		500,000		580,685
Barclays Bank PLC
5.00%, 09/22/16		450,000		506,529
6.75%, 05/22/19		300,000		365,436
BB&T Corp.
3.95%, 03/22/22 (b)		200,000		218,715
BNP Paribas
3.60%, 02/23/16		300,000		318,656
5.00%, 01/15/21		250,000		279,872
Capital One Financial Corp.
2.15%, 03/23/15		100,000		102,316
6.15%, 09/01/16		650,000		748,514
Citigroup, Inc.
6.38%, 08/12/14		1,550,000		1,680,053
4.45%, 01/10/17		300,000		333,168
6.00%, 08/15/17		12,000		14,130
6.13%, 11/21/17		750,000		892,371
4.50%, 01/14/22		900,000		1,014,441
6.13%, 08/25/36		250,000		277,459
5.88%, 01/30/42		250,000		312,873
Credit Suisse USA, Inc.
5.50%, 05/01/14		1,050,000		1,119,366
Deutsche Bank AG
6.00%, 09/01/17		450,000		542,102
Fifth Third Bancorp
3.63%, 01/25/16		300,000		321,784
8.25%, 03/01/38		200,000		291,276
Goldman Sachs Capital l
6.35%, 02/15/34		200,000		206,608
HSBC Bank USA
5.88%, 11/01/34		500,000		586,238
HSBC Holdings PLC
4.00%, 03/30/22		850,000		935,991
7.63%, 05/17/32		150,000		196,928
JPMorgan Chase & Co.
3.70%, 01/20/15		1,000,000		1,054,517
6.00%, 01/15/18		1,000,000		1,194,581
4.25%, 10/15/20		1,500,000		1,668,025
5.50%, 10/15/40		100,000		122,451
JPMorgan Chase Bank NA
6.00%, 10/01/17		1,000,000		1,185,606
Key Bank NA
5.80%, 07/01/14		350,000		375,996
Merrill Lynch & Co., Inc.
6.88%, 04/25/18		450,000		541,916
Morgan Stanley
6.00%, 05/13/14		1,000,000		1,060,484
5.45%, 01/09/17		1,500,000		1,654,065
6.63%, 04/01/18		200,000		233,181
7.30%, 05/13/19		250,000		303,837
6.25%, 08/09/26		250,000		290,654
6.38%, 07/24/42		400,000		470,272
National City Corp.
6.88%, 05/15/19		100,000		125,004
PNC Financial Services Group, Inc.
2.85%, 11/09/22 (a)		300,000		306,870
PNC Funding Corp.
4.25%, 09/21/15		600,000		657,137
Rabobank Nederland
2.13%, 10/13/15		200,000		206,449
3.38%, 01/19/17		350,000		376,745
3.95%, 11/09/22		100,000		101,552
Royal Bank of Canada
2.63%, 12/15/15		500,000		527,750
Royal Bank of Scotland Group PLC
2.55%, 09/18/15		650,000		665,554
State Street Corp.
2.88%, 03/07/16		350,000		373,150
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)		500,000		517,664
The Goldman Sachs Group, Inc.
3.30%, 05/03/15		300,000		312,687
3.63%, 02/07/16		850,000		901,445
5.63%, 01/15/17		750,000		822,604
5.95%, 01/18/18		600,000		695,183
5.95%, 01/15/27		450,000		485,247
6.75%, 10/01/37		800,000		893,007
UBS AG
3.88%, 01/15/15		950,000		1,004,917
5.88%, 12/20/17		150,000		178,711
US Bancorp
2.20%, 11/15/16 (b)		750,000		786,951
3.00%, 03/15/22 (b)		200,000		211,864
Wachovia Bank NA
4.88%, 02/01/15		1,000,000		1,083,604
Wells Fargo & Co.
1.50%, 07/01/15		1,200,000		1,219,894
5.63%, 12/11/17		700,000		840,612
Westpac Banking Corp.
4.20%, 02/27/15		550,000		591,368

				41,865,029


Brokerage 0.2%
BlackRock, Inc.
3.50%, 12/10/14		200,000		211,614
5.00%, 12/10/19		300,000		357,952
Jefferies Group, Inc.
5.50%, 03/15/16		125,000		133,750
6.45%, 06/08/27		75,000		79,500
Nomura Holdings, Inc.
5.00%, 03/04/15		150,000		159,029
6.70%, 03/04/20		200,000		236,135
TD Ameritrade Holding Co.
4.15%, 12/01/14		200,000		213,502

				1,391,482


Finance Company 0.6%
GATX Corp.
4.75%, 05/15/15		100,000		107,155
GE Capital Trust I
6.38%, 11/15/67 (a)(b)		100,000		105,750
General Electric Capital Corp.
2.15%, 01/09/15		250,000		256,590
5.00%, 01/08/16		550,000		614,165
2.30%, 04/27/17		500,000		517,205
5.63%, 09/15/17		200,000		236,294
5.63%, 05/01/18		650,000		775,362
4.38%, 09/16/20		300,000		337,034
5.30%, 02/11/21		150,000		174,025
6.75%, 03/15/32		600,000		785,175
5.88%, 01/14/38		500,000		608,352
6.88%, 01/10/39		150,000		204,230
HSBC Finance Capital Trust IX
5.91%, 11/30/35 (a)(b)		400,000		397,000
HSBC Finance Corp.
5.00%, 06/30/15		82,000		89,170
5.50%, 01/19/16		100,000		111,253

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
SLM Corp.
4.63%, 09/25/17		750,000		764,531

				6,083,291


Insurance 1.2%
Aetna, Inc.
3.95%, 09/01/20		450,000		493,283
American International Group, Inc.
2.38%, 08/24/15		200,000		204,176
5.60%, 10/18/16		925,000		1,054,003
6.40%, 12/15/20		150,000		184,209
Berkshire Hathaway, Inc.
3.20%, 02/11/15		600,000		633,421
4.25%, 01/15/21		500,000		579,739
Chubb Corp.
5.75%, 05/15/18		400,000		496,165
6.00%, 05/11/37		100,000		132,222
Cigna Corp.
2.75%, 11/15/16		300,000		316,458
CNA Financial Corp.
7.35%, 11/15/19		625,000		788,417
Genworth Financial, Inc.
8.63%, 12/15/16		300,000		343,244
Hartford Financial Services Group, Inc.
6.30%, 03/15/18		200,000		238,682
6.00%, 01/15/19		100,000		116,446
ING US, Inc.
5.50%, 07/15/22		250,000		272,354
Lincoln National Corp.
6.25%, 02/15/20		300,000		357,710
MetLife, Inc.
5.00%, 06/15/15		150,000		165,785
6.82%, 08/15/18		450,000		568,093
4.75%, 02/08/21		200,000		233,063
Principal Financial Group, Inc.
6.05%, 10/15/36		300,000		371,889
Prudential Financial, Inc.
4.75%, 09/17/15		200,000		220,493
4.50%, 11/16/21		250,000		280,253
5.80%, 11/16/41		500,000		589,617
The Allstate Corp.
7.45%, 05/16/19		125,000		165,383
5.55%, 05/09/35		296,000		365,264
Travelers Co., Inc.
5.90%, 06/02/19		300,000		375,646
6.75%, 06/20/36		150,000		215,015
UnitedHealth Group, Inc.
0.85%, 10/15/15		100,000		100,489
1.40%, 10/15/17		100,000		100,809
2.75%, 02/15/23 (b)		150,000		152,610
5.80%, 03/15/36		350,000		431,743
3.95%, 10/15/42 (b)		250,000		249,340
WellPoint, Inc.
3.30%, 01/15/23		500,000		515,516
4.65%, 01/15/43		150,000		158,112

				11,469,649


Other Financial 0.0%
ORIX Corp.
4.71%, 04/27/15		350,000		372,510


Real Estate Investment Trust 0.4%
AvalonBay Communities, Inc.
2.95%, 09/15/22 (b)		150,000		150,237
Boston Properties LP
4.13%, 05/15/21		300,000		329,563
Digital Realty Trust LP
5.88%, 02/01/20		350,000		406,257
Duke Realty LP
7.38%, 02/15/15		400,000		448,245
HCP, Inc.
6.70%, 01/30/18		400,000		482,280
Health Care REIT, Inc.
3.63%, 03/15/16		400,000		423,415
Kimco Realty Corp.
4.30%, 02/01/18 (b)		250,000		277,020
ProLogis, Inc.
6.63%, 05/15/18		337,000		403,021
Regency Centers LP
4.80%, 04/15/21		150,000		167,701
Simon Property Group LP
5.25%, 12/01/16 (b)		300,000		344,592
2.80%, 01/30/17 (b)		200,000		212,718
3.38%, 03/15/22 (b)(f)		250,000		265,893
Ventas Realty LP
4.75%, 06/01/21 (b)		100,000		111,296

				4,022,238

				65,204,199

Industrial 11.9%


Basic Industry 1.1%
Alcoa, Inc.
5.55%, 02/01/17		300,000		333,036
5.87%, 02/23/22		750,000		801,594
Barrick Gold Corp.
6.95%, 04/01/19		500,000		626,653
BHP Billiton Finance (USA) Ltd.
1.13%, 11/21/14		500,000		505,845
3.25%, 11/21/21		200,000		216,638
4.13%, 02/24/42		250,000		269,101
CF Industries Holdings, Inc.
7.13%, 05/01/20		150,000		189,887
Cliffs Natural Resources, Inc.
4.80%, 10/01/20		150,000		147,297
Ecolab, Inc.
3.00%, 12/08/16		200,000		213,820
EI Du Pont de Nemours & Co.
4.75%, 03/15/15		750,000		818,566
International Paper Co.
7.40%, 06/15/14		300,000		326,370
7.95%, 06/15/18		100,000		129,604
7.30%, 11/15/39		400,000		552,188
Lubrizol Corp.
8.88%, 02/01/19		200,000		282,363
Monsanto Co.
2.75%, 04/15/16		100,000		106,701
Newmont Mining Corp.
4.88%, 03/15/42 (b)		250,000		262,328
Potash Corp. of Saskatchewan, Inc.
6.50%, 05/15/19		375,000		475,229
Praxair, Inc.
4.38%, 03/31/14		350,000		367,693
Rio Tinto Finance (USA) Ltd.
3.50%, 11/02/20		250,000		268,746
7.13%, 07/15/28		200,000		273,028
4.75%, 03/22/42 (b)		500,000		561,083
Southern Copper Corp.
5.25%, 11/08/42		200,000		196,854

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Teck Resources Ltd.
4.75%, 01/15/22 (b)		300,000		327,780
The Dow Chemical Co.
7.60%, 05/15/14		200,000		219,262
4.13%, 11/15/21 (b)		350,000		381,874
7.38%, 11/01/29		325,000		437,560
Vale Overseas Ltd.
4.38%, 01/11/22		375,000		399,066
Vale S.A.
5.63%, 09/11/42		500,000		542,431
Valspar Corp.
4.20%, 01/15/22 (b)		150,000		162,930

				10,395,527


Capital Goods 1.1%
Boeing Capital Corp.
3.25%, 10/27/14		450,000		473,346
Boeing Co.
6.88%, 03/15/39		100,000		154,997
Caterpillar Financial Services Corp.
0.70%, 11/06/15		500,000		499,322
1.25%, 11/06/17		700,000		704,074
Deere & Co.
5.38%, 10/16/29		550,000		718,019
General Electric Co.
0.85%, 10/09/15		200,000		200,231
5.25%, 12/06/17		750,000		888,326
2.70%, 10/09/22		150,000		153,247
4.13%, 10/09/42		100,000		104,759
Honeywell International, Inc.
5.00%, 02/15/19		350,000		420,797
5.38%, 03/01/41		250,000		327,445
Ingersoll-Rand Global Holding Co. Ltd.
6.88%, 08/15/18		150,000		186,171
John Deere Capital Corp.
1.70%, 01/15/20		250,000		249,484
Joy Global, Inc.
6.00%, 11/15/16		150,000		172,167
L-3 Communications Corp.
4.75%, 07/15/20		250,000		279,909
4.95%, 02/15/21 (b)		250,000		283,987
Lockheed Martin Corp.
4.25%, 11/15/19		100,000		114,031
6.15%, 09/01/36		200,000		265,655
5.50%, 11/15/39		100,000		121,494
Owens Corning
4.20%, 12/15/22 (b)		500,000		507,946
Raytheon Co.
3.13%, 10/15/20		200,000		215,066
4.88%, 10/15/40		250,000		294,258
Republic Services, Inc.
4.75%, 05/15/23		500,000		576,449
Turlock Corp.
0.95%, 11/02/15		150,000		150,099
1.50%, 11/02/17		200,000		201,154
2.75%, 11/02/22		250,000		252,362
4.00%, 11/02/32		150,000		153,214
4.15%, 11/02/42		150,000		153,772
United Technologies Corp.
1.80%, 06/01/17		250,000		258,780
6.13%, 02/01/19		500,000		630,076
4.50%, 06/01/42		500,000		570,945
Waste Management, Inc.
7.00%, 07/15/28		200,000		274,399

				10,555,981


Communications 2.2%
America Movil, S.A.B. de CV
3.63%, 03/30/15		300,000		320,992
5.00%, 10/16/19		450,000		532,229
4.38%, 07/16/42		600,000		624,368
AT&T, Inc.
5.10%, 09/15/14		500,000		539,492
0.88%, 02/13/15		250,000		251,247
2.95%, 05/15/16		500,000		531,564
3.00%, 02/15/22		350,000		366,902
BellSouth Corp.
6.00%, 11/15/34		500,000		572,329
British Telecommunications PLC
2.00%, 06/22/15		300,000		308,698
CBS Corp.
5.75%, 04/15/20		275,000		330,623
7.88%, 07/30/30		325,000		455,379
Cellco Partnership / Verizon Wireless
5.55%, 02/01/14		650,000		684,543
CenturyLink, Inc.
5.15%, 06/15/17		500,000		540,176
7.65%, 03/15/42		250,000		261,567
Comcast Corp.
5.30%, 01/15/14		500,000		526,413
5.90%, 03/15/16		600,000		694,393
6.50%, 11/15/35		175,000		227,295
Deutsche Telekom International Finance BV
6.00%, 07/08/19		500,000		616,636
DIRECTV Holdings LLC
3.13%, 02/15/16		500,000		525,916
6.00%, 08/15/40 (b)		350,000		382,905
Discovery Communications, Inc.
5.63%, 08/15/19		50,000		60,393
France Telecom S.A.
4.38%, 07/08/14		225,000		237,051
8.50%, 03/01/31 (a)		200,000		297,337
5.38%, 01/13/42		100,000		116,366
Grupo Televisa S.A.
6.63%, 03/18/25		400,000		529,056
NBCUniversal Media LLC
3.65%, 04/30/15		125,000		133,408
4.38%, 04/01/21		275,000		312,830
5.95%, 04/01/41		150,000		184,201
News America, Inc.
5.30%, 12/15/14		250,000		272,716
6.40%, 12/15/35		250,000		313,702
6.15%, 03/01/37		600,000		736,493
Pacific Bell Telephone Co.
7.13%, 03/15/26		750,000		1,019,312
TCI Communication, Inc.
7.13%, 02/15/28		350,000		469,062
Telecom Italia Capital S.A.
5.25%, 10/01/15		100,000		106,125
7.00%, 06/04/18		200,000		226,250
7.72%, 06/04/38		350,000		368,375
Telefonica Emisiones S.A.U.
6.42%, 06/20/16		350,000		378,875
5.13%, 04/27/20		400,000		402,000
7.05%, 06/20/36		100,000		102,750
Time Warner Cable, Inc.
5.85%, 05/01/17		600,000		711,758
8.25%, 04/01/19		200,000		267,117
4.50%, 09/15/42 (b)		700,000		685,846
Verizon Communications, Inc.
1.10%, 11/01/17		500,000		500,524

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
2.45%, 11/01/22 (b)		1,000,000		1,006,050
5.85%, 09/15/35		650,000		824,635
Vodafone Group PLC
4.63%, 07/15/18		825,000		965,267

				20,521,166


Consumer Cyclical 1.5%
CVS Caremark Corp.
3.25%, 05/18/15		500,000		530,989
4.75%, 05/18/20 (b)		200,000		236,673
Daimler Finance North America LLC
2.30%, 01/09/15		250,000		256,524
Darden Restaurants, Inc.
3.35%, 11/01/22 (b)		150,000		150,846
eBay, Inc.
1.63%, 10/15/15		400,000		411,071
Ford Motor Co.
7.45%, 07/16/31		250,000		315,000
Ford Motor Credit Co. LLC
3.88%, 01/15/15		250,000		259,785
6.63%, 08/15/17		500,000		582,887
4.25%, 09/20/22		750,000		780,403
Historic TW, Inc.
6.88%, 06/15/18		600,000		758,881
Home Depot, Inc.
5.88%, 12/16/36		500,000		665,861
Lowe’s Cos., Inc.
3.12%, 04/15/22 (b)		300,000		318,062
4.65%, 04/15/42 (b)		200,000		224,529
Macy’s Retail Holdings, Inc.
5.75%, 07/15/14		350,000		376,940
6.90%, 04/01/29		200,000		243,427
5.13%, 01/15/42 (b)		200,000		221,196
Marriott International, Inc.
3.00%, 03/01/19 (b)		350,000		362,421
McDonald’s Corp.
2.63%, 01/15/22		400,000		416,281
3.70%, 02/15/42		250,000		253,803
Nordstrom, Inc.
6.25%, 01/15/18		300,000		366,907
PACCAR, Inc.
6.88%, 02/15/14		650,000		697,853
QVC, Inc.
5.13%, 07/02/22		300,000		318,498
Target Corp.
6.35%, 11/01/32		625,000		824,725
The Gap, Inc.
5.95%, 04/12/21 (b)		200,000		228,503
The Walt Disney Co.
5.63%, 09/15/16		300,000		351,576
4.13%, 12/01/41		100,000		107,797
Time Warner, Inc.
4.88%, 03/15/20		400,000		467,742
5.38%, 10/15/41		100,000		113,439
Toyota Motor Credit Corp.
3.40%, 09/15/21		500,000		551,805
VF Corp.
6.45%, 11/01/37		50,000		68,566
Viacom, Inc.
3.88%, 12/15/21		350,000		386,857
6.88%, 04/30/36		250,000		342,778
Wal-Mart Stores, Inc.
5.80%, 02/15/18		300,000		370,857
3.25%, 10/25/20		500,000		550,731
5.88%, 04/05/27		275,000		373,830
5.25%, 09/01/35		100,000		123,950
6.50%, 08/15/37		150,000		214,346
6.20%, 04/15/38		125,000		173,678

				14,000,017


Consumer Non-Cyclical 3.0%
AbbVie, Inc.
2.00%, 11/06/18		500,000		506,208
4.40%, 11/06/42 (c)		100,000		106,486
Altria Group, Inc.
9.70%, 11/10/18		169,000		238,784
2.85%, 08/09/22		200,000		198,472
4.25%, 08/09/42		250,000		249,359
AmerisourceBergen Corp.
3.50%, 11/15/21 (b)		500,000		542,894
Amgen, Inc.
2.50%, 11/15/16		500,000		524,809
5.70%, 02/01/19		500,000		604,666
3.63%, 05/15/22 (b)		500,000		538,243
Anheuser-Busch InBev Worldwide, Inc.
5.38%, 11/15/14		175,000		190,683
1.38%, 07/15/17		800,000		809,574
5.00%, 04/15/20		600,000		725,776
4.38%, 02/15/21		150,000		176,539
3.75%, 07/15/42		100,000		101,344
Archer-Daniels-Midland Co.
4.48%, 03/01/21 (a)		300,000		345,613
AstraZeneca PLC
6.45%, 09/15/37		500,000		688,586
Baxter International, Inc.
2.40%, 08/15/22		250,000		252,570
Boston Scientific Corp.
4.50%, 01/15/15		200,000		213,295
Bristol-Myers Squibb Co.
3.25%, 08/01/42		250,000		235,649
ConAgra Foods, Inc.
5.88%, 04/15/14		250,000		266,520
2.10%, 03/15/18		250,000		251,518
Covidien International Finance
6.00%, 10/15/17		400,000		488,952
Diageo Capital PLC
7.38%, 01/15/14		500,000		537,074
5.88%, 09/30/36		150,000		194,281
Express Scripts Holding Co.
2.10%, 02/12/15 (c)		500,000		510,255
2.65%, 02/15/17 (c)		250,000		261,455
4.75%, 11/15/21 (c)		450,000		515,894
General Mills, Inc.
5.70%, 02/15/17		500,000		592,257
GlaxoSmithKline Capital, Inc.
6.38%, 05/15/38		400,000		563,318
Hospira, Inc.
6.05%, 03/30/17		230,000		269,104
Johnson & Johnson
4.95%, 05/15/33		100,000		124,136
4.85%, 05/15/41		300,000		377,941
Kellogg Co.
7.45%, 04/01/31		250,000		350,508
Kimberly-Clark Corp.
7.50%, 11/01/18		325,000		436,374
Koninklijke Philips Electronics NV
5.00%, 03/15/42		300,000		347,744
Kraft Foods, Inc.
4.13%, 02/09/16		500,000		547,461
5.38%, 02/10/20		358,000		436,266

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
5.38%, 02/10/20 (c)		392,000		475,079
5.00%, 06/04/42 (c)		300,000		337,901
Lorillard Tobacco Co.
2.30%, 08/21/17		350,000		356,149
6.88%, 05/01/20		100,000		122,350
Mead Johnson Nutrition Co.
3.50%, 11/01/14		300,000		314,265
Merck & Co., Inc.
5.00%, 06/30/19		500,000		604,530
3.88%, 01/15/21 (b)		700,000		795,509
Molson Coors Brewing Co.
3.50%, 05/01/22		100,000		105,913
PepsiCo, Inc.
5.00%, 06/01/18		350,000		418,841
4.50%, 01/15/20		350,000		410,740
4.88%, 11/01/40		500,000		590,514
Pfizer, Inc.
5.35%, 03/15/15		350,000		387,155
6.20%, 03/15/19		500,000		639,210
7.20%, 03/15/39		250,000		390,764
Philip Morris International, Inc.
1.13%, 08/21/17		250,000		250,767
2.50%, 08/22/22		300,000		302,814
3.88%, 08/21/42		300,000		305,858
Procter & Gamble Co.
4.95%, 08/15/14		750,000		808,564
4.70%, 02/15/19		650,000		776,366
Reynolds American, Inc.
1.05%, 10/30/15		100,000		100,123
3.25%, 11/01/22		100,000		101,946
4.75%, 11/01/42		100,000		101,847
Safeway, Inc.
6.25%, 03/15/14		250,000		264,720
7.25%, 02/01/31		150,000		165,871
Sanofi
2.63%, 03/29/16		300,000		316,512
Teva Pharmaceutical Finance Co. LLC
5.55%, 02/01/16		250,000		283,210
6.15%, 02/01/36		250,000		335,161
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21		200,000		217,119
The Coca-Cola Co.
3.15%, 11/15/20		1,000,000		1,100,991
The Kroger Co.
3.90%, 10/01/15		200,000		216,407
3.40%, 04/15/22 (b)		150,000		156,444
5.40%, 07/15/40 (b)		50,000		56,941
Thermo Fisher Scientific
3.20%, 03/01/16		1,000,000		1,068,675
Watson Pharmaceuticals, Inc.
1.88%, 10/01/17		200,000		203,962
3.25%, 10/01/22 (b)		350,000		360,736
4.63%, 10/01/42 (b)		250,000		264,966
Zimmer Holdings, Inc.
5.75%, 11/30/39		400,000		491,722

				28,521,250


Energy 1.6%
Anadarko Petroleum Corp.
6.38%, 09/15/17		500,000		601,005
6.45%, 09/15/36		100,000		125,977
Apache Corp.
6.90%, 09/15/18		150,000		190,587
6.00%, 01/15/37		150,000		192,970
Baker Hughes, Inc.
7.50%, 11/15/18		300,000		401,030
5.13%, 09/15/40		150,000		184,355
BP Capital Markets PLC
1.85%, 05/05/17		150,000		153,582
3.56%, 11/01/21		600,000		651,482
3.25%, 05/06/22		250,000		263,370
Canadian Natural Resources Ltd.
5.70%, 05/15/17		250,000		297,018
6.25%, 03/15/38		200,000		261,035
Devon Energy Corp.
4.75%, 05/15/42 (b)		500,000		540,085
Devon Financing Corp ULC
7.88%, 09/30/31		200,000		292,759
Encana Corp.
5.80%, 05/01/14		500,000		533,955
Halliburton Co.
7.45%, 09/15/39		225,000		341,149
Hess Corp.
7.30%, 08/15/31		500,000		684,605
Husky Energy, Inc.
7.25%, 12/15/19		163,000		215,193
Marathon Oil Corp.
0.90%, 11/01/15		100,000		100,180
2.80%, 11/01/22 (b)		200,000		200,996
Nabors Industries, Inc.
6.15%, 02/15/18		350,000		415,079
Nexen, Inc.
6.20%, 07/30/19		125,000		153,343
5.88%, 03/10/35		300,000		366,510
Noble Energy, Inc.
8.25%, 03/01/19		100,000		132,536
6.00%, 03/01/41 (b)		250,000		301,173
Occidental Petroleum Corp.
2.50%, 02/01/16		500,000		528,070
4.13%, 06/01/16		200,000		223,951
Phillips 66
1.95%, 03/05/15 (c)		100,000		102,227
5.88%, 05/01/42 (c)		150,000		181,067
Shell International Finance BV
5.20%, 03/22/17		500,000		589,077
6.38%, 12/15/38		250,000		360,328
Suncor Energy, Inc.
6.50%, 06/15/38		500,000		663,330
Tosco Corp.
7.80%, 01/01/27		850,000		1,265,383
Total Capital S.A.
2.30%, 03/15/16		150,000		157,316
4.13%, 01/28/21		350,000		399,676
Transocean, Inc.
6.00%, 03/15/18		300,000		350,018
3.80%, 10/15/22 (b)		500,000		511,500
Valero Energy Corp.
6.13%, 06/15/17		250,000		301,307
10.50%, 03/15/39		200,000		319,566
Weatherford International Ltd.
4.50%, 04/15/22 (b)		500,000		512,742
XTO Energy, Inc.
6.75%, 08/01/37		300,000		475,405

				14,540,937


Other Industrial 0.0%
Thomas & Betts Corp.
5.63%, 11/15/21		250,000		312,243

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)


Technology 1.0%
Agilent Technologies, Inc.
6.50%, 11/01/17		550,000		670,030
Cisco Systems, Inc.
5.50%, 02/22/16		700,000		804,705
4.45%, 01/15/20		550,000		644,425
5.90%, 02/15/39		150,000		198,498
Harris Corp.
6.15%, 12/15/40		150,000		179,317
Hewlett-Packard Co.
6.13%, 03/01/14		1,500,000		1,570,089
2.60%, 09/15/17		300,000		285,939
4.65%, 12/09/21		350,000		339,199
Intel Corp.
1.95%, 10/01/16		500,000		521,062
International Business Machines Corp.
7.63%, 10/15/18		700,000		943,050
5.60%, 11/30/39		500,000		649,567
Microsoft Corp.
2.95%, 06/01/14		150,000		155,889
3.00%, 10/01/20		300,000		330,042
5.30%, 02/08/41		150,000		191,923
Oracle Corp.
3.75%, 07/08/14		800,000		841,230
5.38%, 07/15/40		350,000		444,096
Science Applications International Corp.
5.50%, 07/01/33		150,000		156,315
Xerox Corp.
4.25%, 02/15/15		300,000		315,758

				9,241,134


Transportation 0.4%
Burlington Northern Santa Fe Corp.
5.65%, 05/01/17		300,000		357,002
Canadian National Railway Co.
6.20%, 06/01/36		100,000		139,106
CSX Corp.
3.70%, 10/30/20 (b)		500,000		545,362
4.10%, 03/15/44 (b)		400,000		397,554
FedEx Corp.
2.63%, 08/01/22		300,000		304,459
3.88%, 08/01/42		300,000		303,167
Norfolk Southern Corp.
5.90%, 06/15/19		500,000		614,272
Ryder System, Inc.
3.15%, 03/02/15		200,000		207,034
Southwest Airlines Co.
5.25%, 10/01/14		500,000		533,803
Union Pacific Corp.
4.16%, 07/15/22 (b)		500,000		571,217
United Parcel Service, Inc.
6.20%, 01/15/38		150,000		208,982

				4,181,958

				112,270,213

Utilities 2.4%


Electric 1.6%
Alabama Power Co.
4.10%, 01/15/42		100,000		105,525
Ameren Illinois Co.
2.70%, 09/01/22		400,000		405,792
Appalachian Power Co.
6.38%, 04/01/36		100,000		127,155
7.00%, 04/01/38		300,000		411,783
Commonwealth Edison Co.
1.63%, 01/15/14		100,000		101,294
1.95%, 09/01/16 (b)		500,000		518,733
Cons Edison Co. of New York, Inc.
5.30%, 03/01/35		350,000		427,426
Dominion Resources, Inc.
4.45%, 03/15/21		450,000		524,340
5.25%, 08/01/33 (b)		500,000		586,108
Duke Energy Carolinas LLC
4.30%, 06/15/20		850,000		983,997
6.45%, 10/15/32		350,000		462,989
Exelon Generation Co., LLC
5.20%, 10/01/19		200,000		230,539
First Energy Corp.
7.38%, 11/15/31		150,000		197,364
Florida Power & Light Co.
6.20%, 06/01/36		500,000		693,573
Florida Power Corp.
4.55%, 04/01/20		750,000		866,873
Georgia Power Co.
4.75%, 09/01/40		200,000		226,260
National Rural Utilities Cooperative Finance Corp.
3.05%, 03/01/16		500,000		533,772
Pacific Gas & Electric Co.
4.80%, 03/01/14		156,000		163,924
3.50%, 10/01/20 (b)		200,000		221,910
6.05%, 03/01/34		300,000		391,774
5.80%, 03/01/37		400,000		506,328
Pacificorp
5.50%, 01/15/19		150,000		184,112
6.00%, 01/15/39		500,000		674,521
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)		400,000		407,603
PSEG Power LLC
5.13%, 04/15/20		150,000		173,254
8.63%, 04/15/31		500,000		746,420
Public Service Co. of Colorado
5.50%, 04/01/14		250,000		266,193
San Diego Gas & Electric Co.
4.50%, 08/15/40		250,000		290,914
Sierra Pacific Power Co.
6.00%, 05/15/16		200,000		233,196
Southern California Edison Co.
5.75%, 03/15/14		350,000		373,255
5.50%, 08/15/18		500,000		615,574
4.50%, 09/01/40 (b)		275,000		312,163
The Detroit Edison Co.
3.95%, 06/15/42 (b)		250,000		262,786
The Southern Co.
2.38%, 09/15/15		800,000		837,992
Union Electric Co.
3.90%, 09/15/42 (b)		400,000		413,243
Westar Energy, Inc.
4.13%, 03/01/42 (b)		100,000		108,206

				14,586,891


Natural Gas 0.8%
CenterPoint Energy Resources Corp.
5.85%, 01/15/41 (b)		250,000		321,852
El Paso Pipeline Partners Operating Co., LLC
4.70%, 11/01/42 (b)		100,000		99,075
Energy Transfer Partners LP
9.00%, 04/15/19		187,000		247,179
5.20%, 02/01/22 (b)		500,000		563,288

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Enterprise Products Operating LP
6.30%, 09/15/17		700,000		854,048
4.85%, 08/15/42 (b)		250,000		261,506
Kinder Morgan Energy Partners LP
6.85%, 02/15/20		400,000		505,443
6.95%, 01/15/38		250,000		318,633
5.00%, 08/15/42 (b)		200,000		205,436
Magellan Midstream Partners LP
4.20%, 12/01/42 (b)		250,000		248,088
ONEOK Partners LP
6.65%, 10/01/36		250,000		312,516
Plains All American Pipeline LP
3.95%, 09/15/15		250,000		270,316
Sempra Energy
6.15%, 06/15/18		500,000		616,083
Southern Natural Gas Co.
5.90%, 04/01/17 (c)		575,000		681,959
Southwest Gas Corp.
3.88%, 04/01/22 (b)		100,000		111,262
TransCanada PipeLines Ltd.
6.50%, 08/15/18		325,000		413,204
6.20%, 10/15/37		150,000		200,950
Williams Partners LP
7.25%, 02/01/17		250,000		305,119
4.13%, 11/15/20 (b)		500,000		549,469

				7,085,426


Other Utilities 0.0%
Veolia Environment
6.00%, 06/01/18		250,000		295,631

				21,967,948

Total Corporate Bonds
(Cost $183,339,645)				199,442,360




U.S. Government and Government Agencies 41.0% of net assets

U.S. Government Agency Securities 4.9%
Egypt Government AID Bonds
4.45%, 09/15/15		1,000,000		1,111,906
Fannie Mae
2.75%, 02/05/14		2,250,000		2,318,668
0.65%, 04/30/15 (b)		4,000,000		4,006,028
0.50%, 05/27/15		1,000,000		1,004,112
4.38%, 10/15/15		2,000,000		2,228,508
1.25%, 09/28/16		3,000,000		3,088,770
5.38%, 06/12/17		1,000,000		1,211,584
1.20%, 07/17/17 (b)		1,000,000		1,005,311
0.88%, 08/28/17		2,500,000		2,529,587
6.63%, 11/15/30		500,000		774,802
Federal Farm Credit Bank
0.33%, 02/03/14 (b)		1,000,000		1,000,012
4.88%, 01/17/17		500,000		588,554
Federal Home Loan Bank
0.38%, 01/29/14		1,250,000		1,252,313
5.50%, 08/13/14		1,000,000		1,089,695
5.38%, 05/18/16		1,000,000		1,170,352
1.00%, 11/09/17 (b)		1,000,000		1,002,968
5.00%, 11/17/17		1,750,000		2,114,089
5.38%, 05/15/19		500,000		632,475
5.50%, 07/15/36		500,000		704,988
Freddie Mac
0.65%, 06/27/14 (b)		2,000,000		2,000,536
3.00%, 07/28/14		2,500,000		2,610,877
1.00%, 07/30/14		1,000,000		1,012,604
0.63%, 12/29/14		2,500,000		2,517,145
4.75%, 11/17/15		2,000,000		2,257,762
2.00%, 08/25/16		1,000,000		1,055,612
2.00%, 08/14/17 (b)		1,000,000		1,012,614
4.88%, 06/13/18		2,000,000		2,435,846
2.38%, 01/13/22		1,500,000		1,579,791
Tennessee Valley Authority
4.65%, 06/15/35		1,000,000		1,223,298

				46,540,807

U.S. Treasury Obligations 36.1%
U.S. Treasury Bonds
7.25%, 05/15/16		1,000,000		1,234,844
8.13%, 08/15/19		1,000,000		1,469,844
6.00%, 02/15/26		3,500,000		5,149,921
6.13%, 11/15/27		1,000,000		1,514,063
5.25%, 02/15/29		1,250,000		1,766,797
5.38%, 02/15/31		500,000		729,297
4.50%, 02/15/36		1,000,000		1,344,219
5.00%, 05/15/37		1,000,000		1,442,188
4.38%, 02/15/38		1,000,000		1,326,563
4.50%, 05/15/38		1,000,000		1,351,563
3.50%, 02/15/39		1,000,000		1,157,656
4.25%, 05/15/39		1,500,000		1,958,907
4.50%, 08/15/39		500,000		678,047
4.38%, 11/15/39		500,000		665,782
4.63%, 02/15/40		2,500,000		3,457,032
4.38%, 05/15/40		1,750,000		2,332,423
3.88%, 08/15/40		5,300,000		6,525,625
4.25%, 11/15/40		1,650,000		2,157,632
4.75%, 02/15/41		1,450,000		2,046,086
4.38%, 05/15/41		1,250,000		1,667,774
3.75%, 08/15/41		2,000,000		2,409,688
3.13%, 11/15/41		2,285,000		2,454,234
3.13%, 02/15/42		2,230,000		2,393,417
2.75%, 08/15/42		1,000,000		992,188
U.S. Treasury Notes
1.50%, 12/31/13		16,000,000		16,223,760
1.75%, 01/31/14		4,000,000		4,071,564
4.00%, 02/15/14		1,000,000		1,045,352
1.88%, 02/28/14		5,000,000		5,102,735
1.75%, 03/31/14		2,700,000		2,754,421
1.25%, 04/15/14		4,350,000		4,410,665
0.25%, 04/30/14		4,000,000		4,001,720
1.88%, 04/30/14		2,000,000		2,046,406
4.75%, 05/15/14		1,000,000		1,065,391
2.25%, 05/31/14		700,000		721,055
2.63%, 06/30/14		850,000		881,842
0.63%, 07/15/14		1,000,000		1,006,289
2.63%, 07/31/14		1,000,000		1,039,531
0.50%, 08/15/14		3,750,000		3,766,552
4.25%, 08/15/14		1,000,000		1,067,969
2.38%, 08/31/14		2,575,000		2,670,254
0.25%, 09/15/14		4,000,000		4,000,312
0.50%, 10/15/14		1,000,000		1,004,610
2.38%, 10/31/14		2,600,000		2,704,814
0.38%, 11/15/14		4,750,000		4,761,319
4.25%, 11/15/14		4,750,000		5,118,681
2.13%, 11/30/14		3,500,000		3,629,608
0.25%, 12/15/14		4,500,000		4,499,298
2.63%, 12/31/14		1,530,000		1,605,186
0.25%, 01/15/15		3,000,000		2,998,593
2.25%, 01/31/15		2,050,000		2,137,445

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
0.25%, 02/15/15		4,000,000		3,998,124
4.00%, 02/15/15		2,000,000		2,163,282
2.38%, 02/28/15		1,425,000		1,491,686
0.38%, 03/15/15		1,500,000		1,503,516
2.50%, 04/30/15		3,300,000		3,475,570
0.25%, 05/15/15		8,250,000		8,243,557
4.13%, 05/15/15		1,000,000		1,093,594
2.13%, 05/31/15		7,000,000		7,318,283
0.38%, 06/15/15		4,265,000		4,273,999
4.25%, 08/15/15		1,000,000		1,105,625
1.25%, 08/31/15		4,000,000		4,102,812
0.25%, 09/15/15		5,000,000		4,991,800
1.25%, 09/30/15		2,000,000		2,052,656
0.25%, 10/15/15		3,500,000		3,493,710
0.38%, 11/15/15		2,000,000		2,003,282
4.50%, 11/15/15		1,000,000		1,122,031
1.38%, 11/30/15		1,000,000		1,030,781
2.13%, 12/31/15		2,700,000		2,846,602
2.00%, 01/31/16		2,250,000		2,366,368
4.50%, 02/15/16		1,000,000		1,131,797
2.13%, 02/29/16		1,000,000		1,057,031
2.63%, 04/30/16		1,000,000		1,075,781
5.13%, 05/15/16		1,000,000		1,161,641
3.25%, 05/31/16		1,000,000		1,098,828
3.25%, 06/30/16		1,000,000		1,101,094
1.50%, 07/31/16		1,000,000		1,039,531
3.25%, 07/31/16		1,850,000		2,040,926
4.88%, 08/15/16		1,000,000		1,163,281
1.00%, 08/31/16		1,500,000		1,531,992
3.00%, 08/31/16		2,100,000		2,300,321
3.00%, 09/30/16		1,000,000		1,097,344
1.00%, 10/31/16		2,000,000		2,043,126
4.63%, 11/15/16		1,000,000		1,162,969
2.75%, 11/30/16		5,000,000		5,452,345
0.88%, 12/31/16		3,750,000		3,811,230
3.13%, 01/31/17		3,700,000		4,102,375
0.88%, 02/28/17		4,500,000		4,572,423
1.00%, 03/31/17		1,500,000		1,531,290
3.25%, 03/31/17		2,000,000		2,234,220
3.13%, 04/30/17		5,250,000		5,844,316
4.50%, 05/15/17		3,000,000		3,523,359
0.63%, 05/31/17		2,500,000		2,510,742
2.38%, 07/31/17		3,500,000		3,790,664
0.63%, 08/31/17		2,000,000		2,005,156
0.63%, 09/30/17		1,000,000		1,001,719
4.25%, 11/15/17		3,000,000		3,532,032
0.63%, 11/30/17		3,000,000		3,001,407
2.63%, 01/31/18		2,000,000		2,200,312
3.50%, 02/15/18		1,000,000		1,144,610
2.88%, 03/31/18		3,000,000		3,344,298
3.88%, 05/15/18		3,000,000		3,508,830
4.00%, 08/15/18		2,000,000		2,365,156
1.50%, 08/31/18		2,000,000		2,080,782
1.38%, 09/30/18		2,000,000		2,066,406
1.75%, 10/31/18		4,000,000		4,218,440
3.75%, 11/15/18		3,000,000		3,515,859
1.38%, 11/30/18		4,500,000		4,645,548
1.38%, 12/31/18		2,000,000		2,063,906
2.75%, 02/15/19		1,500,000		1,671,446
1.50%, 03/31/19		2,000,000		2,075,156
1.00%, 06/30/19		1,500,000		1,505,391
3.63%, 08/15/19		1,750,000		2,055,020
1.25%, 10/31/19		1,500,000		1,523,907
3.38%, 11/15/19		3,000,000		3,479,532
3.63%, 02/15/20		5,000,000		5,893,360
2.63%, 08/15/20		5,875,000		6,509,318
3.63%, 02/15/21		2,000,000		2,371,094
3.13%, 05/15/21		6,600,000		7,563,191
2.13%, 08/15/21		5,500,000		5,842,034
2.00%, 02/15/22		2,000,000		2,091,720
1.75%, 05/15/22		3,250,000		3,316,524
1.63%, 08/15/22		4,000,000		4,021,564
1.63%, 11/15/22		1,000,000		1,000,938

				339,231,722

Total U.S. Government and Government Agencies
(Cost $361,193,770)				385,772,529




Commercial Mortgage Backed Securities 1.9% of net assets


Banc of America Commercial Mortgage Trust
Series 2007-4 Class A4
5.92%, 02/10/51 (a)(b)		3,000,000		3,572,257
Banc of America Commercial Mortgage, Inc.
Series 2005-3 Class AJ
4.77%, 07/10/43 (a)(b)		1,100,000		1,103,637
Series 2006-3 Class AM
6.05%, 07/10/44 (a)(b)		800,000		820,031
Series 2007-1 Class A4
5.45%, 01/15/49 (b)		1,000,000		1,162,889
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (b)		3,737,000		4,193,501
Credit Suisse Mortgage Capital Certificates
Series 2006-C1 Class AM
5.59%, 02/15/39 (a)(b)		650,000		715,769
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		800,000		927,040
GS Mortgage Securities Corp II
Series 2006-GG6 Class A4
5.55%, 04/10/38 (a)(b)		1,100,000		1,245,131
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5 Class AJ
5.49%, 12/15/44 (a)(b)		1,025,000		1,110,283
Series 2007-LD12 Class A3
6.16%, 02/15/51 (a)(b)		2,000,000		2,134,960
Series 2007-LD12-A Class A2
5.83%, 02/15/51 (b)		30,893		31,726
Merrill Lynch Mortgage Trust
Series 2005-LC1 Class AM
5.50%, 01/12/44 (a)(b)		700,000		776,475

Total Commercial Mortgage Backed Securities
(Cost $15,537,486)				17,793,699




Asset-Backed Obligations 0.3% of net assets


Chase Issuance Trust
Series 2007-A3 Class A3
5.23%, 04/15/19 (b)		1,515,000		1,790,199
Citibank Credit Card Issuance Trust
Series 2005-A2 Class A2
4.85%, 03/10/17 (b)		700,000		768,148

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Discover Card Master Trust
Series 2012-A1 Class A1
0.81%, 08/15/17 (b)		600,000		605,053

Total Asset-Backed Obligations
(Cost $3,173,544)				3,163,400




Foreign Securities 4.5% of net assets

Foreign Agencies 1.4%


Austria 0.0%
Oesterreichische Kontrollbank AG
1.13%, 07/06/15		400,000		406,239


Canada 0.1%
Pemex Project Funding Master Trust
6.63%, 06/15/35		600,000		762,000


Cayman Islands 0.2%
Petrobras International Finance Co.
3.88%, 01/27/16		500,000		532,290
5.75%, 01/20/20		400,000		458,953
5.38%, 01/27/21		500,000		564,795
6.88%, 01/20/40		100,000		127,964

				1,684,002


Germany 0.6%
Kreditanstalt Fuer Wiederaufbau
3.50%, 03/10/14 (d)		1,700,000		1,768,058
1.25%, 10/26/15 (d)		1,000,000		1,021,726
2.63%, 02/16/16 (d)		1,000,000		1,065,321
4.88%, 01/17/17 (d)		850,000		993,913
4.00%, 01/27/20 (d)		350,000		412,088
2.75%, 09/08/20 (d)		750,000		818,711

				6,079,817


Japan 0.1%
Japan Bank for International Cooperation
2.50%, 01/21/16		400,000		422,851
Japan Finance Corp.
2.25%, 07/13/16		300,000		317,519

				740,370


Mexico 0.1%
Petroleos Mexicanos
4.88%, 03/15/15		425,000		459,000
5.50%, 01/21/21		500,000		587,500

				1,046,500


Norway 0.1%
Statoil ASA
2.90%, 10/15/14		150,000		156,536
3.13%, 08/17/17		200,000		217,679
5.10%, 08/17/40		250,000		309,568

				683,783


Republic of Korea 0.2%
Export-Import Bank of Korea
8.13%, 01/21/14		600,000		648,246
4.00%, 01/11/17		600,000		656,104
Korea Development Bank
8.00%, 01/23/14		450,000		485,725

				1,790,075

				13,192,786

Foreign Local Government 0.5%


Canada 0.5%
Province of Ontario
4.10%, 06/16/14		1,575,000		1,664,703
4.40%, 04/14/20		975,000		1,161,721
Province of Quebec
5.13%, 11/14/16		450,000		526,303
7.50%, 09/15/29		650,000		1,006,378

				4,359,105

Sovereign 1.2%


Brazil 0.3%
Federative Republic of Brazil
6.00%, 01/17/17		500,000		595,000
4.88%, 01/22/21		250,000		303,875
8.88%, 04/15/24		675,000		1,100,250
5.63%, 01/07/41		500,000		662,500

				2,661,625


Chile 0.0%
Republic of Chile
3.88%, 08/05/20		200,000		227,500
3.63%, 10/30/42		150,000		151,500

				379,000


Colombia 0.1%
Republic of Colombia
7.38%, 09/18/37		750,000		1,174,125


Italy 0.1%
Republic of Italy
3.13%, 01/26/15		750,000		762,093
6.88%, 09/27/23		250,000		292,750
5.38%, 06/15/33		300,000		296,571

				1,351,414


Mexico 0.3%
United Mexican States
6.63%, 03/03/15		200,000		225,100
5.63%, 01/15/17		300,000		351,000
3.63%, 03/15/22		500,000		551,875
6.75%, 09/27/34		750,000		1,084,875
6.05%, 01/11/40		150,000		203,400

				2,416,250


Panama 0.1%
Republic of Panama
7.25%, 03/15/15		400,000		453,000
6.70%, 01/26/36		200,000		286,200

				739,200


Peru 0.1%
Republic of Peru
7.13%, 03/30/19		650,000		856,375


Poland 0.1%
Republic of Poland
5.13%, 04/21/21		750,000		891,345


Republic of Korea 0.0%
Republic of Korea
5.75%, 04/16/14		300,000		320,051

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)


South Africa 0.1%
Republic of South Africa
6.88%, 05/27/19		500,000		635,250

				11,424,635

Supranational 1.4%
African Development Bank
2.50%, 03/15/16		350,000		372,590
Asian Development Bank
2.50%, 03/15/16		1,750,000		1,866,769
European Bank for Reconstruction & Development
2.50%, 03/15/16		500,000		529,339
European Investment Bank
1.25%, 02/14/14		500,000		505,264
3.13%, 06/04/14		1,000,000		1,040,433
1.63%, 09/01/15		400,000		411,836
2.50%, 05/16/16		800,000		849,925
5.13%, 05/30/17		1,600,000		1,901,238
2.88%, 09/15/20		800,000		876,610
4.88%, 02/15/36		150,000		181,628
Inter-American Development Bank
3.00%, 04/22/14		1,000,000		1,038,142
3.88%, 09/17/19		500,000		589,095
International Bank for Reconstruction & Development
0.55%, 04/25/14 (b)		200,000		200,310
2.38%, 05/26/15		550,000		577,572
2.13%, 03/15/16		800,000		843,862
0.88%, 04/17/17		250,000		254,494
International Finance Corp.
2.75%, 04/20/15		350,000		370,131
2.25%, 04/11/16		500,000		530,393

				12,939,631

Total Foreign Securities
(Cost $39,168,856)				41,916,157




Municipal Bonds 1.0% of net assets

Fixed-Rate Obligations 1.0%
Bay Area Toll Auth
San Francisco Bay Area Toll Bridge RB (Build America Bonds) Series 2009F2
6.26%, 04/01/49		1,050,000		1,470,315
California
GO (Build America Bonds) Series 2009
7.50%, 04/01/34		1,000,000		1,398,110
Catholic Health Initiatives
1.60%, 11/01/17		150,000		152,311
Connecticut
GO (Build America Bonds) Series 2010D
5.09%, 10/01/30		100,000		115,670
GO (Teachers’ Retirement Fund) Series 2008A
5.85%, 03/15/32		300,000		383,511
East Bay Municipal Utility District
Water System RB (Build America Bonds) Series 2010
5.87%, 06/01/40		1,000,000		1,341,720
Illinois
GO Bonds Series 2011
5.37%, 03/01/17		1,000,000		1,126,100
GO Bonds (Pension Funding) Series 2003
5.10%, 06/01/33		1,000,000		1,010,060
Metropolitan Government of Nashville & Davidson Cnty
GO (Build America Bonds) Series 2010B
5.71%, 07/01/34		200,000		253,628
Metropolitan Transportation Authority
GO (Build America Bonds) Series 2010E
6.81%, 11/15/40		350,000		470,036
New Jersey State Turnpike Auth
RB (Build America Bonds) Series 2009F
7.41%, 01/01/40		100,000		148,513
RB (Build America Bonds) Series 2010A
7.10%, 01/01/41		700,000		1,005,921
Texas State Transportation Commission
RB (Build America Bonds) Series 2010B
5.03%, 04/01/26		600,000		735,198

Total Municipal Bonds
(Cost $8,110,171)				9,611,093



	Number		Value
Security	of Shares		($)

Other Investment Company 0.8% of net assets

Money Market Fund 0.8%
State Street Institutional U.S. Government Money Market Fund		7,694,005		7,694,005

Total Other Investment Company
(Cost $7,694,005)				7,694,005



	Face
Issuer	Amount		Value
Rate, Maturity Date	($)		($)

Short-Term Investments 5.1% of net assets

U.S. Treasury Obligations 5.1%
U.S. Treasury Bills
0.12%, 12/06/12 (e)		13,000,000		12,999,873
0.13%, 12/13/12 (e)		30,000,000		29,998,959
0.16%, 12/20/12 (e)		5,000,000		4,999,634

Total Short-Term Investments
(Cost $47,998,130)				47,998,466



End of Investments.


	Number		Value
Security	of Shares		($)

Collateral Invested for Securities on Loan 0.0% of net assets


State Street Institutional U.S. Government Money Market Fund		142,025		142,025

Total Collateral Invested for Securities on Loan
(Cost $142,025)				142,025



End of Collateral Invested for Securities on Loan.

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

At 11/30/12, the tax basis cost of the fund’s investments was $934,303,654 and the unrealized appreciation and depreciation were $58,279,598 and ($304,221), respectively, with a net unrealized appreciation of $57,975,377.


	Face
Security	Amount		Value
Rate, Maturity Dates	($)		($)

TBA Sale Commitment 0.2% of net assets

U.S. Government Agency Mortgages 0.2%
Freddie Mac TBA
3.50%, 12/01/42 (b)		1,500,000		1,595,859

Total TBA Sale Commitment
(Proceeds $1,594,219)				1,595,859


(a)		Variable-rate security.
(b)		The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $3,172,323 or 0.3% of net assets.
(d)		Guaranteed by the Republic of Germany.
(e)		The rate shown is the purchase yield.
(f)		All or a portion of this security is on loan.


GO —		General obligation
RB —		Revenue bond
REIT —		Real Estate Investment Trust

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

Assets Valuation Input


	Quoted Prices in					Significant
	Active Markets for		Significant Other			Unobservable
	Identical Assets		Observable Inputs			Inputs
Description	(Level 1)		(Level 2)			(Level 3)		Total

Mortgage-Backed Securities¹		$—		$278,887,322			$—		$278,887,322
Corporate Bonds¹		—		199,442,360			—		199,442,360
U.S. Government and Government Agencies¹		—		385,772,529			—		385,772,529
Commercial Mortgage Backed Securities		—		17,793,699			—		17,793,699
Asset-Backed Obligations		—		3,163,400			—		3,163,400
Foreign Securities¹		—		41,916,157			—		41,916,157
Municipal Bonds¹		—		9,611,093			—		9,611,093
Other Investment Company¹		7,694,005		—			—		7,694,005
Short-Term Investments¹		—		47,998,466			—		47,998,466

Total		$7,694,005		$984,585,026			$—		$992,279,031

Other Financial Instruments
Collateral Invested for Securities on Loan		$142,025		$—			$—		$142,025


Liabilities Valuation Input


Other Financial Instruments
TBA Sale Commitment		$—		($1,595,859	)		$—		($1,595,859	)


¹		As categorized in Portfolio Holdings.

Schwab Investments
Schwab GNMA Fund™

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.


				Cost			Value
Holdings by Category				($)			($)

	105	.1%	Mortgage-Backed Securities		642,210,087			660,181,854
	1	.0%	Other Investment Company		6,453,711			6,453,711
	10	.3%	Short-Term Investments		64,998,817			64,999,242


	116	.4%	Total Investments		713,662,615			731,634,807
	(1	.4)%	TBA Sale Commitments		(8,710,625	)		(8,753,283	)
	(15	.0)%	Other Assets and Liabilities, Net					(94,472,759	)


	100	.0%	Net Assets					628,408,765


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

Mortgage-Backed Securities 105.1% of net assets

U.S. Government Agency Mortgages 105.1%
Fannie Mae
2.50%, 03/01/27 (b)		177,362		185,718
3.00%, 06/01/27 (b)		1,936,590		2,076,135
5.45%, 12/01/31 to 07/01/32 (b)		245,900		269,879
5.49%, 09/01/29 to 09/01/31 (b)		179,769		196,836
5.50%, 09/01/17 (b)		182,889		196,786
5.81%, 12/01/31 to 01/01/32 (b)		204,113		227,026
6.50%, 04/01/31 (b)		215,869		251,239
7.17%, 11/01/30 (b)		21,429		21,486
Fannie Mae REMICS
3.75%, 05/25/33 (b)		1,993,540		2,041,447
4.00%, 10/25/17 (b)		314,527		314,762
4.50%, 07/25/19 (b)		280,066		284,941
5.50%, 10/25/32 (b)		147,579		148,542
7.00%, 09/25/22 (b)		117,771		133,229
Federal Home Loan Bank
5.27%, 12/28/12 (b)		263,955		264,879
Freddie Mac
4.00%, 12/01/20 (b)		1,705,207		1,819,431
Freddie Mac REMICS
4.00%, 09/15/17 to 02/15/33 (b)		3,132,236		3,188,275
4.50%, 05/15/17 to 03/15/19 (b)		1,089,755		1,101,384
5.00%, 03/15/18 to 08/15/32 (b)		1,434,097		1,452,824
6.00%, 07/15/33 (b)		573,637		578,977
6.50%, 03/15/14 (b)		53,156		1,584
Ginnie Mae
1.63%, 12/20/30 to 02/20/32 (a)(b)		96,014		99,778
1.75%, 07/20/24 to 04/20/37 (a)(b)		769,319		804,445
2.25%, 08/20/33 (a)(b)		85,515		89,474
2.50%, 04/15/27 to 10/20/27 (b)		1,473,741		1,558,209
3.00%, 02/20/27 (b)		4,804,682		5,136,706
3.50%, 02/20/16 (a)(b)		35,524		37,298
3.50%, 01/15/26 to 09/20/42 (b)		72,303,907		78,883,795
4.00%, 12/15/24 to 06/20/42 (b)		75,702,775		82,654,723
4.25%, 06/16/24 to 09/20/41 (b)		385,425		419,557
4.38%, 05/15/29 to 04/15/32 (b)		483,066		534,410
4.50%, 12/15/17 to 01/20/42 (b)		132,197,327		145,674,987
4.63%, 07/20/40 to 12/20/40 (b)		7,825,699		8,637,666
4.75%, 06/15/28 (b)		126,916		140,353
5.00%, 11/15/17 to 04/20/40 (b)		102,581,068		112,924,163
5.13%, 03/15/31 (b)		257,497		282,676
5.25%, 04/15/31 to 11/15/31 (b)		462,608		507,842
5.45%, 05/15/29 to 02/15/33 (b)		6,294,582		6,902,003
5.49%, 10/20/28 to 08/15/32 (b)		4,502,083		4,964,047
5.50%, 08/20/15 to 12/20/34 (b)		35,624,691		39,258,253
5.81%, 06/20/31 to 02/20/32 (b)		572,658		633,938
5.90%, 07/15/31 to 05/15/32 (b)		428,623		474,620
6.00%, 04/20/13 to 11/15/39 (b)		23,187,743		26,326,064
6.05%, 09/15/31 (b)		64,799		73,585
6.10%, 07/20/28 to 09/15/31 (b)		2,079,397		2,351,965
6.15%, 04/20/29 to 04/20/30 (b)		1,001,694		1,134,006
6.25%, 10/20/28 to 03/20/30 (b)		1,861,842		2,106,820
6.50%, 09/20/13 to 10/20/37 (b)		11,001,192		12,820,973
7.00%, 05/15/13 to 04/15/39 (b)		3,167,765		3,720,310
7.10%, 12/15/30 (b)		61,649		64,693
7.17%, 04/20/30 to 03/20/31 (b)		392,144		460,832
7.50%, 06/15/17 to 11/15/37 (b)		377,301		440,977
8.00%, 07/15/26 to 02/15/30 (b)		75,523		84,737
8.50%, 08/20/25 to 01/20/30 (b)		13,634		15,566
9.00%, 09/20/15 to 09/20/30 (b)		357,214		400,979
13.00%, 07/20/14 (b)		6		6
Ginnie Mae TBA
3.00%, 12/01/42 (b)		20,500,000		21,880,546
3.50%, 12/01/42 (b)		40,000,000		43,556,252
4.00%, 12/01/42 (b)		29,000,000		31,741,408
4.50%, 12/01/42 (b)		7,000,000		7,627,812

Total Mortgage-Backed Securities
(Cost $642,210,087)				660,181,854



	Number		Value
Security	of Shares		($)

Other Investment Company 1.0% of net assets

Money Market Fund 1.0%
State Street Institutional U.S. Government Money Market Fund		6,453,711		6,453,711

Total Other Investment Company
(Cost $6,453,711)				6,453,711

Schwab GNMA Fund

Portfolio Holdings (Unaudited) continued


	Face
Issuer	Amount		Value
Rate, Maturity Date	($)		($)

Short-Term Investments 10.3% of net assets

U.S. Treasury Obligations 10.3%
U.S. Treasury Bills
0.12%, 12/06/12 (c)		60,000,000		59,999,415
0.13%, 12/13/12 (c)		5,000,000		4,999,827

Total Short-Term Investments
(Cost $64,998,817)				64,999,242



End of Investments.

At 11/30/12, the tax basis cost of the fund’s investments was $713,665,408 and the unrealized appreciation and depreciation were $18,144,614 and ($175,215), respectively, with a net unrealized appreciation of $17,969,399.


	Face
Security	Amount		Value
Rate, Maturity Dates	($)		($)

TBA Sale Commitments 1.4% of net assets

U.S. Government Agency Mortgages 1.4%
Ginnie Mae TBA
5.00%, 12/01/42 (b)		3,000,000		3,261,094
5.50%, 12/01/42 (b)		5,000,000		5,492,189

Total TBA Sale Commitment
(Proceeds $8,710,625)				8,753,283


(a)		Variable-rate security.
(b)		The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c)		The rate shown is the purchase yield.

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

Schwab GNMA Fund

Portfolio Holdings (Unaudited) continued

normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

Assets Valuation Input


	Quoted Prices in					Significant
	Active Markets for		Significant Other			Unobservable
	Identical Assets		Observable Inputs			Inputs
Description	(Level 1)		(Level 2)			(Level 3)		Total

Mortgage-Backed Securities¹		$—		$660,181,854			$—		$660,181,854
Other Investment Company¹		6,453,711		—			—		6,453,711
Short-Term Investments¹		—		64,999,242			—		64,999,242

Total		$6,453,711		$725,181,096			$—		$731,634,807



Liabilities Valuation Input


Other Financial Instruments
TBA Sale Commitments¹		$—		($8,753,283	)		$—		($8,753,283	)


¹		As categorized in Portfolio Holdings.

REG406018NOV12

Schwab Investments
Schwab Treasury Inflation Protected Securities Fund

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

Cost

Value

Holdings by Category

($)

.5%

U.S. Government Securities

373,142,304

418,929,826

.6%

Other Investment Company

2,610,501

100

.1%

Total Investments

375,752,805

421,540,327

.1)%

Other Assets and Liabilities, Net

(243,455

)

100

.0%

Net Assets

421,296,872


	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)

U.S. Government Securities 99.5% of net assets

U.S. Treasury Obligations 99.5%
U.S. Treasury Inflation Protected Securities
2.00%, 01/15/14		12,974,450		13,398,196
1.25%, 04/15/14		8,233,453		8,486,878
2.00%, 07/15/14		11,502,894		12,131,987
1.63%, 01/15/15		11,355,408		12,057,967
0.50%, 04/15/15		11,179,762		11,654,901
1.88%, 07/15/15		9,969,516		10,868,367
2.00%, 01/15/16		9,770,238		10,858,740
0.13%, 04/15/16		19,646,267		20,705,397
2.50%, 07/15/16		9,567,765		11,031,346
2.38%, 01/15/17		8,296,208		9,676,781
0.13%, 04/15/17		15,078,389		16,178,659
2.63%, 07/15/17		7,112,169		8,557,931
1.63%, 01/15/18		7,511,076		8,755,061
1.38%, 07/15/18		7,404,390		8,664,321
2.13%, 01/15/19		6,897,920		8,431,604
1.88%, 07/15/19		7,824,820		9,584,153
1.38%, 01/15/20		9,491,788		11,320,476
1.25%, 07/15/20		14,589,713		17,427,850
1.13%, 01/15/21		16,692,558		19,751,970
0.63%, 07/15/21		17,721,015		20,323,878
0.13%, 01/15/22		19,558,514		21,477,791
0.13%, 07/15/22		20,346,673		22,349,599
2.38%, 01/15/25		13,000,603		17,747,903
2.00%, 01/15/26		9,467,109		12,564,652
2.38%, 01/15/27		7,596,257		10,599,133
1.75%, 01/15/28		7,621,533		9,988,934
3.63%, 04/15/28		8,112,184		13,035,306
2.50%, 01/15/29		7,372,152		10,665,440
3.88%, 04/15/29		9,571,817		16,061,222
3.38%, 04/15/32		2,959,377		4,957,873
2.13%, 02/15/40		4,539,430		6,794,255
2.13%, 02/15/41		6,984,658		10,532,655
0.75%, 02/15/42		10,947,528		12,288,600

Total U.S. Government Securities
(Cost $373,142,304)				418,929,826



	Number		Value
Security	of Shares		($)

Other Investment Company 0.6% of net assets

Money Market Fund 0.6%
State Street Institutional U.S. Government Money Market Fund		2,610,501		2,610,501

Total Other Investment Company
(Cost $2,610,501)				2,610,501



End of Investments.

At 11/30/12, the tax basis cost of the fund’s investments was $377,312,786 and the unrealized appreciation and depreciation were $44,227,541 and ($0), respectively, with a net unrealized appreciation of $44,227,541.

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

Schwab Treasury Inflation Protected Securities Fund

Portfolio Holdings (Unaudited) continued


	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

Schwab Treasury Inflation Protected Securities Fund

Portfolio Holdings (Unaudited) continued

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total²

U.S. Government Securities¹

$—

$418,929,826

$—

$418,929,826

Other Investment Company¹

2,610,501

—

2,610,501

Total

$2,610,501

$418,929,826

$—

$421,540,327


¹		As categorized in Portfolio Holdings.
²		The fund had no Other Financial Instruments.

REG406019NOV12

Schwab Investments
Schwab Tax-Free Bond Fund™

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

Cost

Value

Holdings by Category

($)

.6%

Fixed-Rate Obligations

665,875,061

710,103,180

.7%

Variable-Rate Obligations

34,615,074

34,834,911

101

.3%

Total Investments

700,490,135

744,938,091

.3)%

Other Assets and Liabilities, Net

(9,861,614

)

100

.0%

Net Assets

735,076,477


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)

Fixed-Rate Obligations 96.6% of net assets

ALABAMA 1.3%
Birmingham
GO Refunding Warrants Series 2010A		5.00%		02/01/18	(f)		1,260,000		1,509,820
Camden IDB
Facilities RB (Weyerhaeuser) Series 2003A		6.13%		12/01/24	(b)(f)(h)		1,725,000		1,824,860
Huntsville
Water Revenue Warrant Series 2008		5.00%		11/01/15			250,000		280,788
Pell City Special Care Facilities Financing Auth
RB (Noland Health Services) Series 2012A		5.00%		12/01/19			1,840,000		2,124,354
RB (Noland Health Services) Series 2012A		5.00%		12/01/20			1,000,000		1,158,830
RB (Noland Health Services) Series 2012A		5.00%		12/01/21			2,250,000		2,606,085

									9,504,737

ALASKA 0.5%
Alaska Housing Finance Corp
State Capital Project Bonds II Series 2012A		3.00%		06/01/16			2,080,000		2,240,119
State Capital Project Bonds II Series 2012A		5.00%		12/01/17			980,000		1,168,189

									3,408,308

ARIZONA 1.6%
Glendale IDA
RB (Midwestern Univ) Series 2010		5.00%		05/15/15			415,000		445,374
Maricopa Cnty UHSD No.210 (Phoenix)
GO Bonds Series 2012A		3.00%		07/01/21			500,000		552,485
GO Bonds Series 2012A		4.00%		07/01/26	(b)		425,000		487,148
Payson USD No.10
School Improvement Bonds Series 2008B		5.75%		07/01/28	(b)(f)		1,375,000		1,664,960
Phoenix Civic Improvement Corp
Sr Lien Airport Refunding RB Series 2008C		5.00%		07/01/13			75,000		77,045
Pima Cnty
GO Bonds Series 2012A		3.00%		07/01/21			50,000		53,594
GO Bonds Series 2012A		4.00%		07/01/22			625,000		723,375
GO Bonds Series 2012A		4.00%		07/01/23	(b)		950,000		1,085,403
Univ Medical Center Corp
Hospital RB Series 2009		5.00%		07/01/14			615,000		656,377
Hospital RB Series 2009		5.00%		07/01/15			170,000		186,131
Hospital RB Series 2009		5.50%		07/01/16			250,000		283,345
Hospital RB Series 2009		6.00%		07/01/18			450,000		543,141

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Hospital RB Series 2009		5.75%		07/01/19			350,000		423,255
Hospital RB Series 2011		5.00%		07/01/19			1,850,000		2,140,820
Hospital RB Series 2011		5.00%		07/01/20			1,370,000		1,595,680
Yavapai Cnty IDA
Hospital Refunding RB (Northern Arizona Healthcare) Series 2011		3.00%		10/01/13			600,000		610,794

									11,528,927

ARKANSAS 0.5%
Fort Smith
Sales & Use Tax Refunding Bonds Series 2012		2.38%		05/01/27	(b)		820,000		824,871
Little Rock
Library Construction & Refunding Bonds Series 2012		3.10%		03/01/32	(b)		2,500,000		2,565,725

									3,390,596

CALIFORNIA 16.7%
Anaheim Public Financing Auth
Lease Refunding RB Series 2008		5.00%		08/01/17			955,000		1,130,720
California
GO Bonds		4.00%		09/01/16			635,000		710,197
GO Bonds		5.00%		11/01/32	(b)(f)		1,240,000		1,424,227
GO Refunding Bonds		5.00%		09/01/16			7,000,000		8,086,330
GO Refunding Bonds		5.00%		09/01/25	(b)		5,000,000		6,245,950
RAN 2012-2013 Series A2		2.50%		06/20/13			4,500,000		4,554,855
California Dept of Water Resources
Power Supply RB Series 2005G4		5.00%		05/01/16	(f)		750,000		862,448
California Educational Facilities Auth
RB (Univ of San Francisco) Series 2011		5.00%		10/01/21			750,000		904,845
California Health Facilities Financing Auth
RB (Children’s Hospital Orange Cnty) Series 2009A		6.50%		11/01/38	(b)(f)		1,850,000		2,296,719
RB (Community Program for Persons with Developmental Disabilities) Series 2011A		5.50%		02/01/21	(a)		375,000		440,584
California Infrastructure & Economic Development Bank
RB (Sanford Consortium) Series 2010A		5.00%		05/15/27	(b)(f)		2,005,000		2,380,958
RB (Sanford Consortium) Series 2010A		5.00%		05/15/28	(b)(f)		2,060,000		2,436,980
California Public Works Board
Lease RB Series 2009I1		6.63%		11/01/34	(b)(f)		1,985,000		2,530,220
Lease RB Series 2012A		5.00%		04/01/24	(b)(f)		3,900,000		4,670,289
California Statewide Communities Development Auth
RB (Proposition 1A Receivables) Series 2009		5.00%		06/15/13	(f)		4,000,000		4,099,720
RB (St. Joseph Health) Series 2000		4.50%		07/01/18	(f)		1,875,000		2,012,981
East Bay Municipal Utility District
Water System Refunding RB Series 2013A		5.00%		06/01/18	(e)		1,000,000		1,202,520
Water System Refunding RB Series 2013A		5.00%		06/01/19	(e)		1,000,000		1,227,070
Emery USD
GO Bonds Series 2011A		6.50%		08/01/31	(b)		2,500,000		3,269,325
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25%		06/01/33	(b)(f)(h)		1,620,000		1,667,466
Jefferson UHSD
GO Bonds Series 2006D		0.00%		08/01/37	(b)(g)		1,545,000		286,057
GO Bonds Series 2006D		0.00%		08/01/39	(b)(g)		3,750,000		584,625
Kern Cnty
Refunding COP 2011 Series A		5.00%		11/01/16			1,935,000		2,198,837
Los Angeles
Judgment Obligation Bonds Series 2010A		4.00%		06/01/19			4,245,000		4,921,611
Los Angeles Cnty
Refunding COP 2012		5.00%		03/01/23			1,500,000		1,824,750
Los Angeles Dept of Water & Power
Power System RB Series 2012C		4.00%		01/01/16	(b)		3,075,000		3,374,382
Power System RB Series 2012C		5.00%		01/01/16	(b)		1,230,000		1,384,168
Water System RB Series 2012C		5.00%		07/01/22			1,000,000		1,299,600
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2009A		5.00%		04/01/17			1,375,000		1,565,754
Lease RB (Capital Equipment) Series 2009C		4.00%		09/01/16			1,050,000		1,144,678

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Lease RB (Capital Equipment) Series 2009C		4.00%		09/01/17			1,000,000		1,102,350
Lease RB (Capital Equipment) Series 2009C		5.00%		09/01/18			600,000		699,948
Lease RB (Capital Equipment) Series 2009C		4.50%		09/01/19			1,050,000		1,209,694
Lease RB (Real Property) Series 2009E		5.13%		09/01/27	(b)		1,590,000		1,806,113
Los Angeles USD
Refunding COP (Headquarters Building) Series 2012A		5.00%		10/01/22			3,130,000		3,744,356
Refunding COP (Headquarters Building) Series 2012B		5.00%		10/01/30	(b)		900,000		1,032,309
Refunding COP (Headquarters Building) Series 2012B		5.00%		10/01/31	(b)		1,000,000		1,142,490
Midpeninsula Regional Open Space District
RB Series 2011		6.00%		09/01/41	(b)		2,000,000		2,418,760
Palo Alto
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		3.00%		09/02/18			385,000		400,462
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		4.00%		09/02/19			480,000		524,712
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		4.00%		09/02/21			400,000		427,684
Palomar Health
COP 2010		5.25%		11/01/21	(b)		760,000		849,467
Pasadena Public Financing Auth
Lease RB (Rose Bowl Renovation) Series 2010A		5.00%		03/01/22	(b)		360,000		444,420
Riverside Cnty Transportation Commission
Limited Sales Tax RB Series 2010A		5.00%		06/01/32	(b)		3,530,000		4,056,499
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A		3.88%		03/01/18			2,215,000		2,461,330
San Diego USD
GO Bonds Series 2010C		0.00%		07/01/31	(g)		2,000,000		914,180
GO Bonds Series 2010C		0.00%		07/01/32	(g)		1,500,000		647,340
GO Bonds Series 2010C		0.00%		07/01/33	(g)		1,000,000		408,460
GO Bonds Series 2010C		0.00%		07/01/34	(g)		1,750,000		674,328
GO Bonds Series 2010C		0.00%		07/01/35	(g)		1,300,000		476,099
San Mateo-Foster City SD
GO Refunding Bonds Series 2012		3.00%		09/01/15			1,730,000		1,844,561
GO Refunding Bonds Series 2012		4.00%		09/01/18			1,885,000		2,189,333
GO Refunding Bonds Series 2012		5.00%		09/01/20			2,195,000		2,756,130
Santa Cruz HSD
GO Refunding Bonds Series 2005		5.00%		08/01/29	(b)		5,180,000		5,334,727
Santa Monica Public Financing Auth
Lease RB Series 2011A		5.00%		06/01/31	(b)		2,440,000		2,901,916
South Orange Cnty Public Financing Auth
Facility Lease Refunding RB (Juvenile Justice Center) Series 2012		5.00%		06/01/19			1,250,000		1,499,012
Tiburon/Belvedere Wastewater Financing Auth
RB (Marin Cnty Sanitary District No. 5) Series 2012		3.00%		10/01/21			490,000		553,112
Turlock Irrigation District
Sub Refunding RB Series 2011		5.00%		01/01/31	(b)		2,155,000		2,480,254
Upland
COP (San Antonio Community Hospital) Series 2011		5.50%		01/01/19			1,165,000		1,355,757
West Basin Municipal Water District
Refunding RB Series 2012A		5.00%		08/01/28	(b)		3,345,000		4,095,986
Woodland Finance Auth
Water RB Series 2011		6.00%		03/01/41	(b)		1,500,000		1,806,810

									122,997,465

COLORADO 1.2%
Aspen Valley Hospital District
Refunding RB Series 2012		5.00%		10/15/30	(b)		750,000		831,217
Refunding RB Series 2012		5.00%		10/15/33	(b)		500,000		549,805
Colorado Health Facilities Auth
RB (Catholic Health Initiatives) Series 2008D1		5.00%		10/01/14	(f)		550,000		594,941
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/18	(f)		1,630,000		1,827,083
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/19	(f)		1,735,000		1,961,227
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/21			1,975,000		2,236,608
Univ of Colorado Hospital Auth
RB Series 2012A		4.00%		11/15/14			250,000		265,905

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
RB Series 2012A		5.00%		11/15/16			500,000		572,980

									8,839,766

CONNECTICUT 1.8%
Danbury
GO Refunding Bonds Series 2012		4.00%		08/01/22	(b)		505,000		599,006
GO Refunding Bonds Series 2012		2.25%		08/01/24	(b)		1,050,000		1,063,230
GO Refunding Bonds Series 2012		4.00%		08/01/25	(b)		745,000		860,944
New Haven
GO Bonds Series 2011A		5.00%		03/01/15			1,260,000		1,369,242
Oxford
GO Refunding Bonds 2011		3.00%		08/01/16			705,000		763,952
GO Refunding Bonds 2011		4.00%		08/01/17			1,405,000		1,610,046
GO Refunding Bonds 2011		4.00%		08/01/18			1,575,000		1,846,467
GO Refunding Bonds 2011		4.00%		08/01/19			500,000		598,125
GO Refunding Bonds 2011		3.00%		08/01/21	(b)		130,000		143,696
GO Refunding Bonds 2011		3.13%		08/01/22	(b)		125,000		137,569
West Haven
GO Bonds 2012		4.00%		08/01/19			1,360,000		1,484,331
GO Bonds 2012		5.00%		08/01/20			2,230,000		2,592,553

									13,069,161

DELAWARE 0.3%
Delaware State Housing Auth
Sr S/F Mortgage RB Series 2011A2		4.25%		07/01/29	(b)		1,880,000		2,018,575

DISTRICT OF COLUMBIA 0.4%
District of Columbia
Income Tax Secured RB Series 2009A		5.25%		12/01/27	(b)(f)		300,000		373,254
Income Tax Secured Refunding RB Series 2010A		5.00%		12/01/30	(b)		1,210,000		1,453,851
District of Columbia Water & Sewer Auth
Public Utility Sr Lien RB Series 2009A		4.00%		10/01/17			50,000		57,426
Metropolitan Washington Airports Auth
Airport System RB Series 2009B		5.00%		10/01/18	(a)(f)		825,000		1,009,090

									2,893,621

FLORIDA 4.7%
Alachua Cnty Health Facilities Auth
Health Facilities RB (Shands HealthCare) Series 2008D1		6.25%		12/01/18			500,000		616,515
Florida Higher Educational Facilities Financing Auth
Refunding RB (Univ Tampa) Series 2012A		5.25%		04/01/42	(b)		400,000		445,484
Refunding RB (UnivTampa) Series 2012A		5.00%		04/01/19			1,220,000		1,405,001
Florida Ports Financing Commission
Refunding RB (State Transportation Trust Fund-Intermodal Program) Series 2011A		5.00%		10/01/28	(b)		1,500,000		1,816,335
Highlands Cnty Health Facilities Auth
Hospital RB (Adventist Health/Sunbelt) Series 2008A		6.10%		11/15/37	(b)(f)		1,000,000		1,048,640
Hillsborough Cnty School Board
Refunding COP (Master Lease Program) Series 2010A		5.00%		07/01/24	(b)		3,900,000		4,595,253
Jacksonville Electric Auth
Electric System RB Series Three 2010A		3.00%		10/01/13			295,000		301,732
Kissimmee Utility Auth
Electric System Sub Refunding RB Series 2003		5.25%		10/01/18			200,000		238,582
Lee Cnty
Non-Ad Valorem Refunding RB Series 2012		3.00%		10/01/14			355,000		369,821
Non-Ad Valorem Refunding RB Series 2012		4.00%		10/01/15			950,000		1,032,156
Miami-Dade Cnty
Aviation RB (Miami Int’l Airport) Series 2010A		5.00%		10/01/20			500,000		616,245
Aviation RB (Miami Int’l Airport) Series 2010A		5.50%		10/01/26	(b)		4,750,000		5,715,438
Miami-Dade Cnty Educational Facilities Auth
RB (Univ of Miami) Series 2008A		5.25%		04/01/16	(f)		1,100,000		1,250,436

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Orange Cnty Health Facilities Auth
RB (Nemours Foundation) Series 2009A		4.00%		01/01/13			800,000		802,032
RB (Nemours Foundation) Series 2009A		4.00%		01/01/14			300,000		310,620
RB (Nemours Foundation) Series 2009A		4.00%		01/01/15			440,000		468,406
RB (Nemours Foundation) Series 2009A		4.00%		01/01/16			625,000		680,000
RB (Nemours Foundation) Series 2009A		4.00%		01/01/17			560,000		623,079
RB (Nemours Foundation) Series 2009A		5.00%		01/01/18			300,000		353,988
RB (Nemours Foundation) Series 2009A		5.00%		01/01/19			545,000		651,815
Orlando Utilities Commission
Water & Electric RB Series 1996A		3.75%		10/01/23	(b)		1,900,000		1,954,910
Palm Beach Cnty Solid Waste Auth
Improvement RB Series 2009		5.25%		10/01/18	(a)		2,200,000		2,691,238
Pasco Cnty
Water & Sewer RB Series 2009A		5.00%		10/01/16			75,000		85,434
Port St. Lucie
Refunding COP Series 2008		5.00%		09/01/13			845,000		869,995
Water & Sewer Special Assessment Refunding Bonds Series 2011A		1.50%		09/01/13			200,000		200,940
Tampa
Sales Tax Refunding RB Series 2010		4.00%		10/01/20			535,000		630,337
Sales Tax Refunding RB Series 2010		5.00%		10/01/21	(b)		390,000		491,696
Tampa Bay Water
Utility System Refunding RB Series 2011		5.00%		10/01/18			1,250,000		1,526,550
Tohopekaliga Water Auth
Utility System Refunding RB Series 2011A		5.75%		10/01/30	(b)		1,500,000		1,890,525
Utility System Refunding RB Series 2011A		5.75%		10/01/31	(b)		580,000		726,821

									34,410,024

GEORGIA 1.7%
Albany Dougherty Cnty Hosp Auth
Revenue Anticipation Certificates (Phoebe Putney Memorial) Series 2012		4.00%		12/01/42	(b)(e)		1,000,000		1,032,460
Cobb Cnty Kennestone Hospital Auth
Revenue Anticipation Refunding Certificates Series 2012		4.00%		04/01/31	(b)		5,000,000		5,385,600
Dawson Cnty SD
GO School Bonds Series 2010		3.00%		02/01/13	(f)		600,000		602,646
Fulton Cnty Development Auth
RB (Georgia State Univ-Student Recreation Center) Series 2011		5.00%		10/01/15			825,000		910,033
RB (Georgia State Univ-Student Recreation Center) Series 2011		5.00%		10/01/17			185,000		215,477
RB (Tuff Morehouse) Series 2002A		5.50%		02/01/22	(b)(f)		2,130,000		2,137,583
Macon-Bibb Cnty Hospital Auth
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		4.00%		08/01/19			250,000		287,392
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		5.00%		08/01/21	(b)		95,000		112,221
Private Colleges & Universities Auth
RB (Mercer Univ) Series 2012C		5.00%		10/01/17			500,000		574,320
RB (Mercer Univ) Series 2012C		4.00%		10/01/22			1,000,000		1,108,740

									12,366,472

HAWAII 1.5%
Hawaii
GO Bonds Series 2004DD		5.00%		05/01/19	(b)		2,275,000		2,424,513
GO Bonds Series 2011DZ		5.00%		12/01/21			3,155,000		4,089,574
Hawaii State Housing Finance & Development Corp
S/F Mortgage Purchase RB Series 2011B		4.50%		01/01/26	(b)		2,180,000		2,382,784
Honolulu
GO Bonds Series 2011A		5.25%		08/01/30	(b)		1,900,000		2,391,929
GO Bonds Series 2011A		5.25%		08/01/31	(b)		50,000		62,674

									11,351,474

IDAHO 1.0%
Boise ISD
GO Refunding Bonds Series 2012B		3.00%		08/01/17			1,870,000		2,063,040

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Nampa SD No. 131
GO Refunding Bonds Series 2011B		3.50%		08/15/19	(f)		1,915,000		2,205,467
GO Refunding Bonds Series 2011B		4.00%		08/15/21	(f)		1,885,000		2,254,178
GO Refunding Bonds Series 2011B		4.00%		08/15/22	(f)		1,000,000		1,192,920

									7,715,605

ILLINOIS 4.2%
Arlington Heights Park District
GO Refunding Park Bonds Series 2010B		2.00%		12/01/12			705,000		705,000
GO Refunding Park Bonds Series 2010B		2.00%		12/01/15			200,000		205,218
Chicago
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/17	(f)		1,000,000		1,151,440
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/18	(f)		1,200,000		1,409,508
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/19	(f)		750,000		893,160
Elk Grove Village
GO Bonds Series 2012		4.00%		01/01/23	(e)		1,295,000		1,549,779
GO Bonds Series 2012		4.00%		01/01/24	(b)(e)		1,340,000		1,578,024
GO Bonds Series 2012		4.00%		01/01/25	(b)(e)		1,385,000		1,615,921
Illinois
Building Receipts RB (Unemployment Insurance Fund) Series 2012C		1.50%		06/15/21			1,000,000		1,002,820
GO Bonds Series January 2012A		4.00%		01/01/21			1,575,000		1,747,919
GO Bonds Series March 2012		5.00%		03/01/20			1,000,000		1,182,720
GO Bonds Series March 2012		5.00%		03/01/21			2,400,000		2,840,232
GO Refunding Bonds Series 2012		5.00%		08/01/18			3,000,000		3,471,990
GO Refunding Bonds Series February 2010		5.00%		01/01/18			2,375,000		2,721,940
GO Refunding Bonds Series June 2006		5.00%		01/01/19			1,220,000		1,422,972
Sales Tax Jr Obligation Bonds Series June 2010		5.00%		06/15/14			200,000		213,902
Sales Tax Jr Obligation Bonds Series June 2010		5.00%		06/15/20			400,000		503,192
Illinois Finance Auth
RB (Ascension Health Alliance) Series 2012E2		5.00%		11/15/42	(b)		1,300,000		1,526,018
Refunding RB (Alexian Brothers Health) Series 2010		4.00%		02/15/13			2,000,000		2,010,020
Pennsylvania Economic Development Financing Auth
Unemployment Compensation RB Series 2012B		5.00%		07/01/23	(b)		1,900,000		2,118,766
Railsplitter Tobacco Settlement Auth
Tobacco Settlement RB Series 2010		4.00%		06/01/13			50,000		50,856
Village of Homer Glen
GO Bonds Series 2012A		2.00%		12/01/13			1,185,000		1,201,566

									31,122,963

INDIANA 2.7%
Indiana Finance Auth
Educational Facilities Refunding RB (Butler Univ) Series 2012A		5.00%		02/01/22			900,000		1,062,882
Educational Facilities Refunding RB (Butler Univ) Series 2012A		5.00%		02/01/24	(b)		3,545,000		4,108,797
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		4.50%		08/15/15			1,370,000		1,467,585
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		4.50%		08/15/16			1,355,000		1,473,007
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		5.13%		08/15/27	(b)		1,000,000		1,091,110
Hospital RB (Parkview Health System) Series 2012A		4.00%		05/01/17			450,000		498,186
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/16			400,000		447,324
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/17			480,000		549,585
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/18			1,000,000		1,164,710
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/19			1,000,000		1,180,900
RB (Community Foundation of Northwest Indiana) Series 2012		4.00%		03/01/34	(b)		2,000,000		2,027,700
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/41	(b)		1,000,000		1,109,980
State Revolving Fund Refunding Bonds Series 2010A		5.00%		02/01/19			945,000		1,174,569
Indiana Health Facility Financing Auth
RB (Ascension Health) Series 2001A1		1.50%		11/15/36	(b)		2,500,000		2,538,250

									19,894,585

IOWA 0.3%
Iowa
Special Obligation Bonds (Prison Infrastructure Fund) Series 2010		5.00%		06/15/25	(b)		950,000		1,170,638

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Iowa Higher Education Loan Auth
Private College Facility RB (Grinnell College) Series 2010		4.00%		12/01/12			1,000,000		1,000,000

									2,170,638

KANSAS 0.5%
Johnson Cnty USD No. 231
GO Refunding Bonds (Gardner-Edgerton) Series 2012A		5.00%		10/01/24	(b)		380,000		466,731
GO Refunding Bonds (Gardner-Edgerton) Series 2012A		5.00%		10/01/25	(b)		300,000		366,999
Kansas Development Finance Auth
Health Facilities RB (Hays Medical Center) Series 2010Q		3.00%		05/15/13			100,000		100,929
Hospital RB (Adventist Health/Sunbelt) Series 2009D		5.00%		11/15/14			50,000		53,781
Hospital RB (Adventist Health/Sunbelt) Series 2009D		5.00%		11/15/15			185,000		205,221
Olathe
Health Facilities RB (Olathe Medical Center) Series 2012B		4.00%		09/01/20			365,000		408,201
Health Facilities RB (Olathe Medical Center) Series 2012B		4.00%		09/01/21			325,000		363,048
Health Facilities RB (Olathe Medical Center) Series 2012B		5.00%		09/01/24	(b)		440,000		515,676
Wichita
Hospital Facilities Refunding RB (Via Christi Health) Series 2009X		5.25%		11/15/24	(b)		890,000		1,048,856

									3,529,442

KENTUCKY 0.4%
Kentucky Economic Development Finance Auth
Hospital RB (Baptist Healthcare) Series 2009A		5.00%		08/15/18			1,000,000		1,164,780
Kentucky State Property & Buildings Commission
Refunding RB (Project No. 100) Series A		5.00%		08/01/20			1,210,000		1,513,202

									2,677,982

MARYLAND 0.4%
Maryland Community Development Admin
Housing RB Series 1996A		5.88%		07/01/16	(b)		50,000		50,050
Maryland Health & Higher Educational Facilities Auth
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/20	(e)		335,000		402,422
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/21	(e)		400,000		480,824
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/23	(b)(e)		1,000,000		1,188,210
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/27	(b)(e)		450,000		524,799
Prince George’s Cnty
COP Series 2011		5.00%		10/01/30	(b)		400,000		480,068

									3,126,373

MASSACHUSETTS 3.1%
Chatham
GO Refunding Bonds		4.00%		07/01/13	(f)		285,000		291,224
GO Refunding Bonds		4.00%		07/01/14	(f)		60,000		63,460
GO Refunding Bonds		5.00%		07/01/16	(f)		250,000		288,433
GO Refunding Bonds		5.00%		07/01/17	(f)		245,000		291,837
Massachusetts Bay Transportation Auth
Assessment Bonds Series 2004A		5.25%		07/01/31	(b)(f)(h)		6,700,000		7,221,997
Assessment Bonds Series 2005A		5.00%		07/01/14	(h)		535,000		574,146
Assessment Bonds Series 2005A		5.00%		07/01/14			315,000		337,894
Sr Sales Tax Bonds Series 2005A		5.00%		07/01/31			2,795,000		3,823,001
Massachusetts Development Finance Agency
RB (New England Conservatory of Music) Series 2008		4.00%		07/01/15			325,000		345,933
RB (Tufts Medical Center) Series 2011I		4.00%		01/01/13			700,000		701,673
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/14			915,000		953,631
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/17			1,000,000		1,126,350
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/18			885,000		1,006,944
Massachusetts Health & Educational Facilities Auth
RB (Northeastern Univ) Series 2008T3		2.70%		10/01/37	(b)		2,000,000		2,045,100
Massachusetts School Building Auth
Sr Dedicated Sales Tax Refunding Bonds Series 2012B		4.00%		08/15/17			1,000,000		1,152,130
Sr Dedicated Sales Tax Refunding Bonds Series 2012B		5.00%		08/15/17			1,360,000		1,629,593

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Massachusetts Turnpike Auth
Turnpike RB Series 1993A		5.00%		01/01/20	(h)		725,000		851,135

									22,704,481

MICHIGAN 2.3%
Grand Rapids
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/25			950,000		1,217,872
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/26			1,245,000		1,609,573
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/27			1,950,000		2,544,243
Michigan
Refunding Bonds (State Trunk Line Fund) Series 2009		5.00%		11/01/22	(b)		2,200,000		2,683,934
Michigan Finance Auth
Refunding RB (Trinity Health) Series 2010A		4.00%		12/01/13			1,000,000		1,035,390
Refunding RB (Trinity Health) Series 2010A		5.00%		12/01/15			1,000,000		1,121,270
Unemployment Obligation Assessment RB Series 2012B		5.00%		07/01/23	(b)		1,000,000		1,076,460
Michigan State Hospital Finance Auth
Refunding RB (Trinity Health) Series 2008A1		5.25%		12/01/15			1,500,000		1,692,945
Wayne Cnty Community College
Improvement Bonds Series 1999		5.50%		07/01/19	(b)		1,000,000		1,003,260
Western Townships Utiltites Auth
Sewage Disposal System Limited Tax GO Refunding Bonds Series 2012		3.00%		01/01/16			400,000		424,520
Sewage Disposal System Limited Tax GO Refunding Bonds Series 2012		4.00%		01/01/19			1,240,000		1,416,948
Sewage Disposal System Limited Tax GO Refunding Bonds Series 2012		4.00%		01/01/20			750,000		859,635

									16,686,050

MINNESOTA 0.8%
Olmsted Cnty
GO Crossover Refunding Bonds Series 2012A		4.00%		02/01/23	(b)		1,935,000		2,325,367
Shakopee ISD No. 720
GO Crossover Refunding Bonds Series 2012A		4.00%		02/01/19			840,000		989,520
GO Crossover Refunding Bonds Series 2012A		5.00%		02/01/21			1,000,000		1,294,370
St. Paul Housing & Redevelopment Auth
Health Care RB (Gillette Children’s Specialty Healthcare) Series 2010		3.00%		02/01/13			240,000		240,912
Univ of Minnesota
GO Bonds Series 2011D		5.00%		12/01/20			220,000		282,152
GO Bonds Series 2011D		5.00%		12/01/21			475,000		616,165

									5,748,486

MISSISSIPPI 0.3%
Mississippi Home Corp
Homeownership Mortgage RB Series 2011A		4.50%		06/01/25	(b)		2,300,000		2,499,755

MISSOURI 0.8%
Boone Cnty
Hospital RB (Boone Hospital Center) Series 2008		5.00%		08/01/13	(f)		1,550,000		1,583,279
Hospital Refunding RB (Boone Hospital Center) Series 2012		4.00%		08/01/17			1,000,000		1,088,460
Hospital Refunding RB (Boone Hospital Center) Series 2012		4.00%		08/01/18			400,000		439,872
Missouri Health & Educational Facilities Auth
Health Facilities RB (St. Luke’s Episcopal-Presbyterian Hospitals) Series 2011		3.00%		12/01/12			1,150,000		1,150,000
St. Charles SD
GO Refunding Bonds Series 2011		4.00%		03/01/17	(a)		1,400,000		1,580,096

									5,841,707

NEBRASKA 0.1%
Nebraska Public Power District
General RB Series 2010C		5.00%		01/01/19			425,000		519,303

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)

NEVADA 2.1%
Carson City
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		2.00%		09/01/13			785,000		791,280
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		3.00%		09/01/14			550,000		566,308
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		4.00%		09/01/15			370,000		393,595
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		5.00%		09/01/18			1,265,000		1,443,947
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		5.00%		09/01/33	(b)		700,000		766,017
Clark Cnty
Airport Passenger Facility Charge Sub Lien RB Series 2008A		5.00%		07/01/15	(f)		1,115,000		1,229,767
Airport System RB Sr Series 2010D		5.00%		07/01/17	(f)		1,000,000		1,164,680
Airport System RB Sr Series 2010D		5.00%		07/01/18	(f)		1,920,000		2,299,507
Nevada
Highway Improvement RB (Motor Vehicle Fuel Tax) Series 2004		5.50%		12/01/18	(b)		340,000		374,602
Nevada System of Higher Education
Univ RB Series 2011A		5.00%		07/01/18			5,375,000		6,469,457

									15,499,160

NEW HAMPSHIRE 0.5%
New Hampshire Health & Education Facilities Auth
RB (Dartmouth College) Series 2009		5.00%		06/01/19			305,000		382,772
RB (Dartmouth-Hitchcock) Series 2009		6.00%		08/01/38	(b)		400,000		475,880
New Hampshire HFA
S/F Mortgage Acquisition RB Series 2008E		6.63%		07/01/38	(b)		1,170,000		1,273,042
S/F Mortgage Acquisition RB Series 2011E		4.50%		01/01/28	(b)		1,500,000		1,636,500

									3,768,194

NEW JERSEY 5.8%
Bergen Cnty
GO Bonds Series 2011A		2.25%		12/01/21	(f)		1,975,000		2,088,878
Cranbury Township
General Improvement Refunding Bonds		2.75%		12/01/15	(f)		430,000		455,895
General Improvement Refunding Bonds		3.00%		12/01/16			320,000		347,715
General Improvement Refunding Bonds		3.00%		12/01/17			285,000		312,964
General Improvement Refunding Bonds		4.00%		12/01/18			400,000		469,080
Essex Cnty Utilities Auth
Water System Notes Series 2012		2.00%		11/07/14			2,500,000		2,564,350
Gloucester Cnty Improvement Auth
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/17			425,000		480,475
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/18			465,000		545,598
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/19			485,000		563,070
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/20			510,000		598,108
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/21			355,000		418,261
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/22			480,000		565,104
Kearny
GO Refunding Bonds Series 2011		2.00%		01/15/13			2,355,000		2,358,509
Mercer Cnty Improvement Auth
Refunding RB Series 2011		4.00%		09/01/14			215,000		228,051
Refunding RB Series 2011		4.00%		09/01/15			1,000,000		1,085,370
Refunding RB Series 2011		4.00%		09/01/16			150,000		167,057
Refunding RB Series 2011		4.00%		09/01/17			1,620,000		1,841,956
Middlesex Cnty
Refunding COP (Civic Square II Redevelopment Associates) Series 2011		4.00%		06/15/18			650,000		720,220
Refunding COP (Civic Square II Redevelopment Associates) Series 2011		3.00%		06/15/19			1,020,000		1,076,998
Refunding COP (Civic Square II Redevelopment Associates) Series 2011		4.00%		06/15/20			1,000,000		1,119,820
Refunding COP (Civic Square II Redevelopment Associates) Series 2011		4.00%		06/15/21			565,000		632,484
Middlesex Cnty Improvement Auth
Lease RB Series 2008		4.00%		12/15/15			415,000		454,906
Lease Refunding RB (Youth Detention Center) Series 2010		2.00%		07/01/14			430,000		440,157
Lease Refunding RB (Youth Detention Center) Series 2010		3.00%		07/01/16			225,000		242,397
Open Space Trust Fund Refunding RB Series 2011		3.00%		09/15/16			1,520,000		1,649,519
Refunding RB (Open Space Trust Fund) Series 2011		4.00%		09/15/21			625,000		737,838
Monmouth Cnty Improvement Auth
Governmental Loan RB (Atlantic Highlands) Series 2010		3.00%		02/01/13			245,000		246,085

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Governmental Loan RB Series 2008		5.25%		12/01/18			85,000		105,893
Montgomery Township
GO Refunding Bonds Series 2012		2.00%		08/01/14			2,635,000		2,698,319
GO Refunding Bonds Series 2012		3.00%		08/01/15			770,000		815,676
Morris Cnty Improvement Auth
Guaranteed Pooled Program Bonds Series 2012A		3.00%		02/01/19			705,000		771,735
Guaranteed Pooled Program Bonds Series 2012A		3.00%		02/01/20			695,000		762,012
New Jersey
COP (Equipment Lease Purchase) Series 2009A		5.25%		06/15/29	(b)		150,000		170,063
New Jersey Building Auth
Refunding RB Series 2009B		4.00%		12/15/19			135,000		156,067
New Jersey Economic Development Auth
School Facilities Construction Refunding Bonds Series 2011GG		5.00%		09/01/16			920,000		1,056,537
School Facilities Construction Refunding Bonds Series 2011GG		5.00%		09/01/19			2,500,000		3,073,175
New Jersey Transportation Trust Fund Auth
Transportation System Bonds Series 2001C		5.50%		12/15/15			10,000		11,419
Transportation System Bonds Series 2011A		5.13%		06/15/29	(b)		1,000,000		1,214,170
Transportation System Bonds Series 2011B		5.50%		06/15/31	(b)		150,000		185,796
Passaic Cnty
General Improvement Refunding Bonds Series 2011		5.00%		05/01/17			4,180,000		4,824,556
GO Refunding Bonds Series 2012		3.00%		08/15/14	(e)		500,000		522,625
GO Refunding Bonds Series 2012		3.00%		08/15/16	(e)		1,400,000		1,497,608
GO Refunding Bonds Series 2012		4.00%		02/01/17			1,160,000		1,282,310
GO Refunding Bonds Series 2012		4.00%		02/01/18			100,000		112,516
GO Refunding Bonds Series 2012		4.00%		02/01/19			600,000		679,944
Princeton Township
General Improvement Refunding Bonds		4.00%		09/01/13			125,000		128,515

									42,479,801

NEW MEXICO 0.4%
Bernalillo Cnty
GO Refunding Bonds Series 2010		4.00%		02/01/19			500,000		589,655
GO Refunding Bonds Series 2010		4.00%		02/01/20			105,000		125,259
New Mexico Hospital Equipment Loan Council
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.25%		08/01/15			500,000		553,455
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.50%		08/01/16			10,000		11,494
Santa Fe
Gross Receipt Tax Improvement & Refunding RB Series 2012A		4.00%		06/01/18			735,000		852,056
Gross Receipt Tax Improvement & Refunding RB Series 2012A		4.00%		06/01/19			1,000,000		1,174,970

									3,306,889

NEW YORK 10.4%
Buffalo
School Refunding Bonds Series 2012E		3.00%		02/01/14			300,000		308,100
School Refunding Bonds Series 2012E		3.00%		02/01/15			250,000		261,620
School Refunding Bonds Series 2012E		3.00%		02/01/16			275,000		292,749
School Refunding Bonds Series 2012E		4.00%		02/01/17			420,000		469,518
Lake Success
GO Refunding Bonds Series 2010B		4.00%		12/01/18			360,000		418,759
GO Refunding Bonds Series 2010B		4.00%		12/01/19			125,000		147,113
Long Island Power Auth
Electric System General RB Series 2012B		5.00%		09/01/25	(b)		1,000,000		1,231,400
Metropolitan Transportation Auth
Dedicated Tax Fund Refunding Bonds Series 2008B2		5.00%		11/01/15			320,000		360,294
Dedicated Tax Fund Refunding Bonds Series 2011A		4.00%		11/15/13			1,000,000		1,035,250
Transportation RB Series 2011A		5.00%		11/15/21			2,500,000		3,116,075
Transportation RB Series 2012C		5.00%		11/15/41	(b)		800,000		928,464
Transportation Refunding RB Series 2002D1		4.00%		11/01/22			2,760,000		3,207,976
Transportation Refunding RB Series 2012F		5.00%		11/15/18			4,000,000		4,831,240
Nassau Cnty Interim Finance Auth
Sales Tax Secured Bonds Series 2009A		5.00%		11/15/18			145,000		179,809
New York City
GO Bonds Fiscal 2006 Series F1		5.00%		09/01/17	(b)		3,090,000		3,464,137

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
GO Bonds Fiscal 2012 Series I		5.00%		08/01/19			5,000,000		6,219,050
New York City Housing Development Corp
M/F Housing RB Series 2012H		0.95%		05/01/16			975,000		977,281
M/F Housing RB Series 2012H		1.50%		05/01/18			830,000		836,034
New York City Municipal Water Finance Auth
Water & Sewer System RB Fiscal 2012 Series DD		4.00%		06/15/18	(b)		2,500,000		2,811,175
New York City Transitional Finance Auth
Future Tax Secured Sub RB Fiscal 2010 Series C1		4.00%		08/01/16			3,000,000		3,374,040
Future Tax Secured Sub RB Fiscal 2010 Series I-2		5.00%		11/01/18			900,000		1,114,092
Future Tax Secured Sub RB Fiscal 2010 Series I-2		5.00%		11/01/20	(b)		200,000		253,212
Future Tax Secured Sub RB Fiscal 2011 Series D1		5.00%		02/01/35	(b)		5,000,000		5,937,200
New York State Bridge Auth
General RB Series 2012		4.00%		01/01/21			6,580,000		7,706,167
New York State Dormitory Auth
Master BOCES Program Lease RB (Oneida Herkimer Madison) Series 2008		5.25%		08/15/16			750,000		848,670
Mental Health Services Facilities RB Series 2010A		4.00%		02/15/13	(h)		5,000		5,037
Mental Health Services Facilities RB Series 2010A		4.00%		02/15/13			945,000		951,785
RB (Cornell Univ) Series 1990B		5.00%		07/01/18			80,000		98,030
RB (New York Univ Hospitals Center) Series 2011A		5.00%		07/01/15			1,000,000		1,099,440
RB (New York Univ Hospitals Center) Series 2011A		5.00%		07/01/19			1,370,000		1,639,630
State Personal Income Tax RB Series 2009A		5.00%		02/15/18			3,000,000		3,638,100
State Personal Income Tax RB Series 2012B		5.00%		03/15/20			5,000,000		6,336,200
New York State Municipal Bond Bank Agency
Special School Purpose RB (Prior Year Claims) Series 2012A		5.00%		12/01/16			3,000,000		3,491,130
New York State Thruway Auth
General RB Series I		5.00%		01/01/20			500,000		615,875
General RB Series I		5.00%		01/01/21			1,000,000		1,246,210
Local Highway & Bridge Service Contract Bonds Series 2009		4.00%		04/01/16			505,000		559,979
Local Highway & Bridge Service Contract Bonds Series 2009		5.00%		04/01/16			1,590,000		1,815,239
Local Highway & Bridge Service Contract Bonds Series 2009		4.00%		04/01/17			750,000		850,388
New York State Urban Development Corp
State Personal Income Tax RB Series 2009A1		5.00%		12/15/17			570,000		688,993
North Syracuse CSD
GO Refunding Bonds Series 2012B		3.00%		06/15/16			1,260,000		1,348,490
GO Refunding Bonds Series 2012B		4.00%		06/15/17			800,000		902,576
Scarsdale UFSD
School District GO Refunding Serial Bonds 2012		5.00%		02/01/17			320,000		375,683
School District GO Refunding Serial Bonds 2012		5.00%		02/01/18			350,000		424,095
School District GO Refunding Serial Bonds 2012		4.00%		02/01/19			260,000		307,473

									76,723,778

NORTH CAROLINA 1.6%
Durham Cnty
COP Series 2009A		4.00%		06/01/18			1,800,000		2,052,558
North Carolina
Limited Obligation Refunding Bonds Series 2011B		5.00%		11/01/23	(b)		500,000		632,985
North Carolina HFA
Home Ownership RB Series 2009-2		4.25%		01/01/28	(b)		1,500,000		1,632,390
North Carolina Medical Care Commission
Health Care Facilities Refunding RB (Blue Ridge) Series 2010A		4.00%		01/01/15			915,000		962,644
Health Care Facilities Refunding RB (Blue Ridge) Series 2010A		3.50%		01/01/18			120,000		129,423
Health Care Facilities Refunding RB (WakeMed) Series 2012A		5.00%		10/01/21			5,000,000		6,067,800
Wake Cnty
GO Refunding Bonds Series 2009D		4.00%		02/01/17			525,000		598,148

									12,075,948

OHIO 3.0%
Akron, Bath & Copley Jt Township Hospital District
Hospital Refunding RB (Children’s Hospital Medical Center) Series 2012		5.00%		11/15/24	(b)		1,190,000		1,379,151
Bowling Green State Univ
General Receipts Bonds Series 2010A		3.00%		06/01/13			170,000		172,181
Butler Cnty
Hospital Facilities RB (UC Health) Series 2010		3.00%		11/01/14			585,000		602,872

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Hospital Facilities RB (UC Health) Series 2010		3.00%		11/01/15			580,000		602,620
Columbus
Unlimited Tax GO Bonds Series 2011A		5.00%		07/01/18			2,000,000		2,450,760
Unlimited Tax GO Refunding Bonds Series 2012-3		5.00%		08/15/17			2,000,000		2,392,360
Lakota Local SD
GO Unlimited Tax Refunding Bonds Series 2012		5.00%		12/01/16			1,330,000		1,547,162
Ohio HFA
M/F Housing RB (Haddon Hall Apts) Series 2012F		1.00%		08/01/14	(b)(h)		3,000,000		3,001,020
Ohio Water Development Auth
RB (Water Pollution Control Loan Fund) Series 2010		5.00%		12/01/23	(b)		2,185,000		2,698,781
Toledo
GO Refunding Bonds Series 2012		3.00%		12/01/14			1,000,000		1,042,310
GO Refunding Bonds Series 2012		3.00%		12/01/15			1,810,000		1,907,559
GO Refunding Bonds Series 2012		3.00%		12/01/16			1,440,000		1,530,230
Univ of Toledo
General Receipts Bonds Series 2011B		5.00%		06/01/18			1,100,000		1,309,792
General Receipts Bonds Series 2011B		5.00%		06/01/30	(b)		1,000,000		1,170,960
Westerville
GO Limited Tax Bonds Series 2010		4.00%		12/01/18			365,000		430,828

									22,238,586

OKLAHOMA 0.7%
Grady Cnty School Finance Auth
Educational Facilities Lease RB (Bridge Creek Public Schools) Series 2008		5.00%		09/01/16	(f)		695,000		785,816
Tulsa Cnty Industrial Auth
Educational Facilities Lease RB (Broken Arrow Public Schools) Series 2012		4.00%		09/01/22			3,750,000		4,303,275

									5,089,091

OREGON 2.6%
Forest Grove
Student Housing RB (Oak Tree Foundation) Series 2007		5.00%		03/01/14	(c)(d)		600,000		613,650
Hillsboro SD No. 1J
GO Refunding Bonds Series 2012		4.00%		06/15/22	(a)		3,000,000		3,613,350
GO Refunding Bonds Series 2012		4.00%		06/15/23	(a)(b)		4,550,000		5,409,677
Lane Community College
GO Bonds Series 2012		4.00%		06/15/20	(a)		2,395,000		2,832,782
Oregon Health & Science Univ
RB Series 2012A		5.00%		07/01/20			1,000,000		1,219,240
RB Series 2012A		5.00%		07/01/22			1,100,000		1,362,383
RB Series 2012A		5.00%		07/01/26	(b)		500,000		611,060
Oregon State Facilities Auth
RB (Providence Health & Services) Series 2011C		5.00%		10/01/21			400,000		499,536
RB (Providence Health & Services) Series 2011C		5.00%		10/01/22	(b)		300,000		363,000
Refunding RB (Legacy Health) Series 2011A		5.25%		05/01/21			2,000,000		2,465,760

									18,990,438

PENNSYLVANIA 3.0%
Beaver Cnty Hospital Auth
RB (Heritage Valley Health) Series 2012		3.00%		05/15/13			500,000		504,800
Lehigh Cnty General Purpose Auth
Hospital RB (St Luke’s Hospital of Bethlehem) Series 2003		5.38%		08/15/33	(b)(h)		1,900,000		1,967,792
Pennsylvania
COP (Dept of Corrections) Series 2010A		3.00%		04/01/18			620,000		668,056
COP (Dept of Corrections) Series 2010A		3.05%		10/01/18			1,580,000		1,713,273
COP (Dept of Corrections) Series 2010A		3.30%		10/01/19			955,000		1,053,021
COP (Dept of Corrections) Series 2010A		3.50%		04/01/20			465,000		517,982
Pennsylvania Economic Development Financing Auth
Solid Waste Disposal RB (Waste Management) Series 2006		2.75%		09/01/13			2,000,000		2,031,800
Unemployment Compensation RB Series 2012B		5.00%		01/01/23	(b)		2,500,000		2,835,150
Pennsylvania Higher Educational Facilities Auth
RB (Temple Univ) First Series 2012		3.00%		04/01/15			660,000		695,686
RB (Temple Univ) First Series 2012		4.00%		04/01/16			300,000		331,095

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
RB (Temple Univ) First Series 2012		4.00%		04/01/17			610,000		686,940
RB (Temple Univ) First Series 2012		4.00%		04/01/18			400,000		455,800
Pennsylvania Intergovernmental Coop Auth
Special Tax Refunding RB (Philadelphia Funding Program) Series 2010		5.00%		06/15/18			2,000,000		2,418,400
Special Tax Refunding RB (Philadelphia Funding Program) Series 2010		5.00%		06/15/20			1,070,000		1,342,561
Philadelphia
GO Refunding Bonds Series 2008A		5.25%		12/15/19	(b)		4,080,000		4,854,955

									22,077,311

PUERTO RICO 1.7%
Puerto Rico
GO Public Improvement Refunding Bonds Series 2006A		5.00%		07/01/16			850,000		911,039
Puerto Rico Electric Power Auth
Power RB Series LL		5.50%		07/01/19			2,240,000		2,565,987
Power RB Series ZZ		5.25%		07/01/23	(b)		1,850,000		2,027,581
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Fincg Auth
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		4.00%		10/01/14			300,000		313,428
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		5.00%		10/01/15			1,000,000		1,091,400
Puerto Rico Sales Tax Financing Corp
Sales Tax RB First Sub Series 2009A		5.75%		08/01/37	(b)		5,000,000		5,577,650

									12,487,085

SOUTH CAROLINA 0.1%
Beaufort-Jasper Water & Sewer Auth
Refunding RB Series 2010B		5.00%		03/01/22			95,000		124,252
Refunding RB Series 2010B		5.00%		03/01/23			495,000		657,751

									782,003

SOUTH DAKOTA 0.3%
South Dakota Building Auth
RB Series 2011		3.00%		06/01/13			300,000		303,627
RB Series 2011		3.00%		06/01/15			620,000		651,657
RB Series 2011		3.00%		06/01/16			615,000		656,635
RB Series 2011		4.00%		06/01/21	(b)		305,000		342,344
South Dakota Health & Educational Facilities Auth
RB (Sanford Health) Series 2009		5.00%		11/01/17			250,000		291,103

									2,245,366

TENNESSEE 0.6%
Memphis
Electric System Sub Refunding RB Series 2010		2.50%		12/01/14			70,000		72,980
Electric System Sub Refunding RB Series 2010		5.00%		12/01/14			900,000		982,872
Refunding Bonds Series 2011		5.00%		05/01/20			2,000,000		2,543,480
Metro Government of Nashville & Davidson Cnty Health & Educational Facilities Board
RB (Belmont Univ) Series 2012		4.00%		11/01/21			820,000		895,719

									4,495,051

TEXAS 7.8%
Arlington ISD
Unlimited Tax GO Bonds Series 2011A		5.00%		02/15/36	(a)(b)(f)		3,650,000		4,353,282
Beaumont ISD
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/33	(a)(b)(f)		2,315,000		2,790,825
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/36	(a)(b)(f)		1,900,000		2,254,559
Burkburnett ISD
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/18	(a)(b)		250,000		252,055
Cedar Hill ISD
Unlimited Tax Refunding Bonds Series 2012A		0.00%		02/15/23	(a)(g)		125,000		99,106
Unlimited Tax Refunding Bonds Series 2012A		0.00%		02/15/24	(a)(g)		450,000		346,059

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Collin Cnty
Limited Tax Refunding & Permanent Improvement Bonds Series 2009A		4.00%		02/15/19	(f)		695,000		816,271
Crandall ISD
Unlimited Tax Refunding Bonds Series 2012A		0.00%		08/15/24	(a)(b)(e)(g)		1,000,000		726,840
Unlimited Tax Refunding Bonds Series 2012A		0.00%		08/15/25	(a)(b)(e)(g)		1,000,000		702,740
Dallas-Fort Worth
Jt Refunding RB Series 2012B		5.00%		11/01/22	(b)		1,530,000		1,859,072
Del Valle ISD
Unlimited Tax Refunding Bonds Series 2010		4.00%		02/01/13	(a)		250,000		251,495
Denton ISD
Unlimited Tax Refunding Bonds Series 2012D		3.00%		08/15/33	(a)(b)		1,000,000		1,021,120
Denver City ISD
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/16	(a)(b)		580,000		585,052
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/17	(a)(b)		1,000,000		1,008,150
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/18	(a)(b)		1,220,000		1,229,260
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/19	(a)(b)		1,775,000		1,786,999
El Paso
Water & Sewer Refunding RB Series 2008C		5.00%		03/01/19	(b)		200,000		239,712
Ferris ISD
Unlimited Tax Refunding Bonds Series 2011		2.00%		08/15/17	(a)		345,000		362,405
Unlimited Tax Refunding Bonds Series 2011		2.50%		08/15/18	(a)		150,000		162,077
Unlimited Tax Refunding Bonds Series 2011		2.50%		08/15/19	(a)(b)		340,000		362,899
Fort Bend Cnty
Limited Tax & Refunding Bonds Series 2009		5.00%		03/01/17			100,000		117,744
Fort Worth
Combination Tax & Parking Revenue GO Bonds Series 2009		4.45%		03/01/18	(c)		1,880,000		2,072,418
Frisco ISD
Unlimited Tax Refunding Bonds Series 2012B		5.00%		08/15/33	(a)(b)(e)		3,570,000		4,403,202
Garland ISD
Unlimited Tax Refunding Bonds Series 2012A		3.00%		02/15/22	(a)(b)		1,465,000		1,474,522
Unlimited Tax Refunding Bonds Series 2012A		3.00%		02/15/23	(a)(b)		1,525,000		1,533,128
Harris Cnty Cultural Education Facilities Finance Corp
Refunding RB (Methodist Hospital) Series 2009B2		5.00%		12/01/41	(b)		1,000,000		1,021,050
Houston Community College System
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/16			500,000		569,330
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/17			500,000		588,485
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/18			1,000,000		1,212,700
Klein ISD
Unlimited Tax Refunding Bonds Series 2009A		4.00%		08/01/17			660,000		756,320
Lone Star College System
Maintenance Tax Notes Series 2009		3.25%		09/15/18			150,000		169,080
Loop ISD
Unlimited Tax GO Bonds Series 2012		2.00%		02/15/16	(a)(b)		375,000		378,135
Unlimited Tax GO Bonds Series 2012		2.00%		02/15/18	(a)(b)		350,000		352,534
Lubbock Health Facilities Development Corp
Refunding RB (St. Joseph Health) Series 2008B		5.00%		07/01/20			1,750,000		2,121,280
Midland ISD
Unlimited Tax Refunding Bonds Series 2011		5.00%		02/15/18	(a)		625,000		755,813
Unlimited Tax Refunding Bonds Series 2011		4.00%		02/15/20	(a)		860,000		1,028,104
Unlimited Tax Refunding Bonds Series 2012		4.00%		02/15/20	(a)		510,000		609,690
Unlimited Tax Refunding Bonds Series 2012		4.00%		02/15/21	(a)		1,210,000		1,456,888
North Central Texas Health Facilities Development Corp
Hospital RB (Children’s Medical Center of Dallas) Series 2012		5.00%		08/15/26	(b)		1,000,000		1,210,180
North Texas Tollway Auth
System RB Series 2011A		5.00%		09/01/21			500,000		630,675
Plano
GO Refunding RB Series 2011		5.00%		09/01/21			750,000		960,690
Rockwall ISD
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/20	(a)		185,000		232,732
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/22	(a)(b)		450,000		561,821
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/24	(a)(b)		475,000		587,209
San Antonio
Electric & Gas Systems Refunding RB Series 2002		5.38%		02/01/14			200,000		211,626
Electric & Gas Systems Refunding RB Series 2009D		5.00%		02/01/17			1,130,000		1,330,688
Sunnyvale ISD
Unlimted Tax GO Bonds Series 2011		5.00%		02/15/19	(a)		195,000		241,866

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Unlimted Tax GO Bonds Series 2011		3.00%		02/15/20	(a)		110,000		123,930
Unlimted Tax GO Bonds Series 2011		5.00%		02/15/22	(a)(b)		220,000		278,192
Tatum ISD
Unlimited Tax GO Bonds Series 2012		5.00%		02/15/23	(a)(b)		750,000		923,663
Unlimited Tax GO Bonds Series 2012		5.00%		02/15/25	(a)(b)		680,000		833,347
Texas Public Finance Auth
Unemployment Compensation Obligation Assessment RB Series 2010A		2.60%		07/01/20			765,000		770,386
Texas State Affordable Housing Corp
S/F Mortgage RB Series 2011B		4.45%		09/01/28	(b)		865,000		945,194
Tomball ISD
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/21	(a)		250,000		320,333
Travis Cnty
Limited Tax Refunding Bonds Series 2009		5.00%		03/01/18			1,625,000		1,965,177
Williamson Cnty
Limited Tax GO Refunding Bonds Series 2011		5.00%		02/15/21			1,000,000		1,285,810
Wink Loving ISD
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/15	(a)		700,000		738,143
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/16	(a)		700,000		752,612
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/17	(a)		500,000		545,715

									57,280,390

UTAH 0.3%
Riverton
RB (IHC Health Services) Series 2009		5.00%		08/15/15			950,000		1,062,907
Salt Lake Cnty
Sales Tax Refunding RB Series 2010A		3.00%		02/01/15			725,000		759,496
Sales Tax Refunding RB Series 2010A		3.00%		02/01/16			300,000		320,814

									2,143,217

VERMONT 0.7%
Vermont HFA
RB Series 2011A		4.50%		02/01/26	(b)		4,455,000		4,906,603

VIRGINIA 1.3%
Chesterfield Cnty Economic Development Auth
Public Facility Refunding RB (Juvenile Courts) Series 2010A		4.00%		01/01/19	(f)		455,000		531,131
Hanover Cnty
Public Improvement Refunding RB Series 2011A		5.25%		01/15/31	(b)		345,000		423,919
Henrico Cnty
GO Refunding Bonds Series 2009		4.00%		03/01/18			95,000		111,098
GO Refunding Bonds Series 2010		5.00%		07/15/17			500,000		599,145
Leesburg
GO Refunding Bonds Series 2009B		3.00%		02/01/13			60,000		60,260
Prince William Cnty IDA
Life Sciences Lab RB (George Mason Univ) Series 2011AA		5.00%		09/01/17			445,000		511,576
Life Sciences Lab RB (George Mason Univ) Series 2011AA		4.00%		09/01/18			255,000		283,685
Life Sciences Lab RB (George Mason Univ) Series 2011AA		4.00%		09/01/20			325,000		364,198
Life Sciences Lab RB (George Mason Univ) Series 2011AA		5.50%		09/01/34	(b)		405,000		476,179
Richmond
GO Bonds Series 2009A		4.00%		07/15/16			85,000		95,049
Virginia Beach Development Auth
M/F Housing RB (New Sands Apts) Series 2011		1.10%		12/01/13	(b)(h)		2,925,000		2,932,400
Virginia Commonwealth Univ Health System Auth
General RB Series 2011		5.00%		07/01/26	(b)		590,000		713,794
General RB Series 2011		5.00%		07/01/27	(b)		1,000,000		1,204,640
Virginia Housing Development Auth
Homeownership Mortgage Bonds Series 2010A		4.00%		03/01/20	(b)		175,000		191,637
Virginia Resources Auth
Water & Sewer System Refunding RB (Goochland Cnty & Tuckahoe Creek Services District) Series 2012		0.00%		11/01/33	(b)(g)		1,000,000		473,760
Water & Sewer System Refunding RB (Goochland Cnty & Tuckahoe Creek Services District) Series 2012		0.00%		11/01/34	(b)(g)		1,000,000		449,870

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Water & Sewer System Refunding RB (Goochland Cnty & Tuckahoe Creek Services District) Series 2012		0.00%		11/01/36	(b)(g)		500,000		201,410

									9,623,751

WASHINGTON 3.4%
Bellevue
Limited Tax GO Refunding Bonds Series 2012B		4.00%		12/01/43	(b)		1,000,000		1,070,940
Camas SD No. 117
Unlimited Tax GO Refunding Bonds 2012		2.00%		12/01/13	(a)		1,950,000		1,980,576
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/17	(a)		2,850,000		3,435,817
Clark Cnty SD No. 122 (Ridgefield)
Unlimited Tax GO Bonds 2012		3.00%		12/01/20	(a)		1,520,000		1,681,393
Energy Northwest
Electric Refunding RB (Project No. 3) Series 1989B		7.13%		07/01/16			4,150,000		5,085,742
Electric Refunding RB (Project No. 3) Series 2009A		5.25%		07/01/18			1,000,000		1,238,340
Washington
GO Bonds Series 1990A		6.75%		02/01/15			640,000		685,984
Washington Health Care Facilities Auth
RB (Providence Health & Services) Series 2012A		5.00%		10/01/20			700,000		868,511
RB (Providence Health & Services) Series 2012A		5.00%		10/01/22			1,800,000		2,241,180
Washougal SD No. 112-6
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/15	(a)		830,000		934,854
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/18	(a)		2,390,000		2,927,248
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/19	(a)		1,280,000		1,601,242
Yakima Cnty SD No. 119 (Selah)
Unlimited Tax GO Bonds 2012		3.00%		12/01/21	(a)		845,000		926,602

									24,678,429

WISCONSIN 1.2%
Kaukauna Area SD
GO Refunding Bonds		3.00%		03/01/13			1,000,000		1,006,200
GO Refunding Bonds		3.00%		03/01/14			495,000		509,701
Wisconsin Health & Educational Facilities Auth
RB (Aurora Health Care) Series 2009B1		4.75%		08/15/25	(b)		475,000		504,184
RB (Aurora Health Care) Series 2009B2		5.13%		08/15/27	(b)		1,250,000		1,407,425
RB (Aurora Health Care) Series 2012A		5.00%		07/15/26	(b)		2,000,000		2,331,220
RB (Children’s Hospital of Wisconsin) Series 2008B		4.20%		08/15/18			450,000		504,050
RB (Children’s Hospital of Wisconsin) Series 2008B		5.38%		08/15/24	(b)		805,000		980,160
RB (Gundersen Lutheran) Series 2011A		2.50%		10/15/13			750,000		762,090
Refunding RB (Hospital Sisters Services) Series 2012B		4.00%		08/15/15			1,100,000		1,190,563

									9,195,593

Total Fixed-Rate Obligations
(Cost $665,875,061)									710,103,180




Variable-Rate Obligations 4.7% of net assets

CONNECTICUT 2.2%
Connecticut
GO Bonds Series 2011A		1.08%		05/15/18			5,275,000		5,354,863
GO Bonds Series 2011C		1.26%		05/15/19			5,000,000		5,087,950
GO Bonds Series 2012A		1.41%		04/15/20	(b)(f)		1,000,000		1,020,370
GO Bonds Series 2012D		0.93%		09/15/18	(b)		1,000,000		1,005,850
Connecticut HFA
Housing Mortgage Finance Program Series 2009A2		0.18%		05/15/39	(a)(b)		4,000,000		4,000,000

									16,469,033

DISTRICT OF COLUMBIA 0.5%
District of Columbia
Income Tax Secured Refunding RB Series 2011E		0.91%		12/01/17	(b)		3,240,000		3,256,913

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer

Face Amount

Value

Type of Security, Series

Rate

Maturity

($)

GEORGIA 0.3%

Burke Cnty Development Auth

Pollution Control RB (Georgia Power Plant Vogtle) First Series 2009

0.20%

07/01/49

(b)

2,500,000

2,500,000

LOUISIANA 0.4%

St. James Parish

RB (Nucor Steel) Series 2010B1

0.44%

11/01/40

(b)

3,000,000

3,000,000

MASSACHUSETTS 0.3%

Massachusetts

GO Refunding Bonds Series 2010A

0.54%

02/01/13

(b)

1,500,000

1,500,495

GO Refunding Bonds Series 2011A

0.82%

02/01/15

(b)

1,000,000

1,006,580

2,507,075

NEW YORK 0.8%

New York City

GO Bonds Fiscal 1995 Series B5

0.19%

08/15/22

(a)(b)

4,600,000

GO Bonds Fiscal 1995 Series B7

0.19%

08/15/18

(a)(b)

1,000,000

5,600,000

PENNSYLVANIA 0.2%

Allegheny Cnty Hospital Development Auth

RB (Univ of Pittsburgh Medical Center) Series 2010F

1.21%

05/15/38

(b)(f)

1,500,000

1,501,890

Total Variable-Rate Obligations

(Cost $34,615,074)

34,834,911

End of Investments.

At 11/30/12, the tax basis cost of the fund’s investments was $700,474,401 and the unrealized appreciation and depreciation were $44,503,390 and ($39,700), respectively, with a net unrealized appreciation of $44,463,690.


(a)		Credit-enhanced or liquidity-enhanced.
(b)		The effective maturity may be shorter than the final maturity shown because the security is subject to a put, demand or call feature.
(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 $2,686,068 or 0.4% of net assets.
(d)		Illiquid security. At the period end, the value of these amounted to $613,650 or 0.1% of net assets.
(e)		Delayed-delivery security.
(f)		All or a portion of this security is designated as collateral for delayed-delivery securities.
(g)		Zero Coupon Bond.
(h)		Refunded bond.


COP —		Certificate of participation
CSD —		Central school district
GO —		General obligation
HFA —		Housing finance agency/authority
HSD —		High school district
IDA —		Industrial development agency/authority
IDB —		Industrial development board
ISD —		Independent school district
RAN —		Revenue anticipation note
RB —		Revenue bond
SD —		School district
S/F —		Single-family
TRAN —		Tax and revenue anticipation note
UFSD —		Union free school district
UHSD —		Union high school district
USD —		Unified school district

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Futures Contracts: valued at their settlement prices as of the close of their exchanges.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the fund’s own assumption in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund in estimating the value

Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


		of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total²

Fixed-Rate Obligations¹

$—

$710,103,180

$—

$710,103,180

Variable-Rate Obligations¹

—

34,834,911

—

34,834,911

Total

$—

$744,938,091

$—

$744,938,091


¹		As categorized in Portfolio Holdings.
²		The fund had no Other Financial Instruments.

REG406022NOV12

Schwab Investments
Schwab California Tax-Free Bond Fund™

Portfolio Holdings as of November 30, 2012 (Unaudited)

The following are the portfolio holdings as of the report date. For more information, please refer to the fund’s semiannual or annual shareholder reports.

Cost

Value

Holdings by Category

($)

.1%

Fixed-Rate Obligations

402,977,857

435,503,418

.9%

Variable-Rate Obligations

26,975,000

27,022,117

101

.0%

Total Investments

429,952,857

462,525,535

.0)%

Other Assets and Liabilities, Net

(4,467,406

)

100

.0%

Net Assets

458,058,129


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)

Fixed-Rate Obligations 95.1% of net assets

CALIFORNIA 93.3%
ABAG Finance Auth
RB (Casa de las Campanas) Series 2010		5.13%		09/01/20	(a)(e)		3,500,000		4,145,400
RB (Odd Fellows Home of California) Series 2012A		5.00%		04/01/17	(a)		2,000,000		2,290,960
RB (Sharp HealthCare) Series 2009B		6.00%		08/01/24	(b)(e)		875,000		1,066,459
RB (Sharp HealthCare) Series 2011A		6.00%		08/01/30	(b)(e)		2,000,000		2,511,580
RB (Sharp HealthCare) Series 2012A		5.00%		08/01/28	(b)(e)		535,000		612,709
Alhambra USD
Refunding GO Bonds Series 2012A		5.00%		08/01/21			500,000		617,765
Refunding GO Bonds Series 2012A		5.00%		08/01/22			500,000		620,680
Refunding GO Bonds Series 2012A		5.00%		08/01/24	(b)		675,000		826,733
Anaheim Public Financing Auth
Electric System Distribution Facilities RB Series 2011A		5.00%		10/01/25	(b)(e)		2,000,000		2,432,180
Lease Refunding RB Series 2008		4.50%		08/01/17	(e)		565,000		656,123
Bay Area Toll Auth
Toll Bridge RB Series 2012F1		4.00%		04/01/18			850,000		986,629
Berkeley Joint Powers Financing Auth
Refunding Lease RB Series 2012 (1999 & 2003 Refinancing)		4.00%		10/01/16			750,000		835,357
Beverly Hills Public Finance Auth
Lease RB Series 2010A		4.00%		06/01/16	(e)		100,000		111,428
Bret Harte UHSD
GO BAN 2012		3.00%		03/15/15	(e)		2,500,000		2,614,025
California
Economic Recovery Bonds Series 2004A		5.25%		07/01/13	(g)		165,000		169,762
Economic Recovery Bonds Series 2004A		5.25%		07/01/13			275,000		282,890
GO Bonds		4.00%		09/01/17			1,500,000		1,714,485
GO Bonds		5.00%		09/01/17			2,000,000		2,378,540
GO Bonds		5.63%		05/01/18	(b)		50,000		50,200
GO Bonds		4.00%		09/01/18			1,500,000		1,744,890
GO Bonds		5.00%		09/01/18			3,000,000		3,656,370
GO Bonds		5.50%		04/01/19			1,000,000		1,263,810
GO Bonds		5.00%		11/01/19			3,000,000		3,746,550
GO Bonds		5.00%		09/01/20			2,560,000		3,235,789
GO Bonds		5.00%		11/01/24	(b)		2,000,000		2,469,600
GO Bonds		5.00%		11/01/25	(b)(e)		2,090,000		2,563,469
GO Bonds		5.25%		12/01/28	(b)(g)		525,000		563,577
GO Bonds		6.50%		04/01/33	(b)		1,425,000		1,831,353
GO Bonds		6.00%		11/01/35	(b)		1,440,000		1,826,770
GO Refunding Bonds		5.00%		02/01/14			500,000		526,430
GO Refunding Bonds		5.00%		09/01/16			5,000,000		5,775,950

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
GO Refunding Bonds		5.00%		10/01/17			435,000		518,520
GO Refunding Bonds		5.00%		09/01/21			1,455,000		1,852,841
GO Refunding Bonds		5.25%		10/01/22			2,785,000		3,625,986
GO Refunding Bonds		5.25%		10/01/32	(b)(e)		4,350,000		5,215,432
GO Refunding Bonds		5.00%		10/01/41	(b)		1,000,000		1,151,470
RAN 2012-2013 Series A2		2.50%		06/20/13			3,330,000		3,370,593
California Dept of Veterans Affairs
Home Purchase RB Series 2011A		3.00%		12/01/19			500,000		522,805
Home Purchase RB Series 2012A		2.75%		12/01/20			1,625,000		1,673,295
Home Purchase RB Series 2012A		3.00%		12/01/21	(b)		3,105,000		3,249,724
California Dept of Water Resources
Power Supply RB Series 2008H		4.50%		05/01/17			1,550,000		1,807,284
Power Supply RB Series 2010M		4.00%		05/01/19			750,000		891,825
Water System RB (Central Valley) Series AI		5.00%		12/01/16			2,000,000		2,346,340
California Educational Facilities Auth
RB (Pepperdine Univ) Series 2012		5.00%		09/01/27	(b)		600,000		747,720
RB (Pomona College) Series 2011		4.00%		01/01/13	(e)		320,000		320,890
RB (Pomona College) Series 2011		4.00%		01/01/14	(e)		395,000		410,851
RB (Pomona College) Series 2011		4.00%		01/01/15	(e)		280,000		299,034
RB (Pomona College) Series 2011		4.00%		01/01/16	(e)		400,000		440,948
RB (Pomona College) Series 2011		4.00%		01/01/17	(e)		200,000		225,162
RB (Univ of San Francisco) Series 2011		5.00%		10/01/21	(e)		575,000		693,714
RB (Univ of Southern California) Series 2009C		5.25%		10/01/24	(e)		2,000,000		2,721,580
Refunding RB (Univ of San Diego) Series 2011		4.50%		10/01/17	(e)		1,230,000		1,392,434
Refunding RB (Univ of San Diego) Series 2011		5.00%		10/01/18	(e)		680,000		801,808
Refunding RB (Univ of San Diego) Series 2011		5.00%		10/01/21	(e)		500,000		608,115
California Health Facilities Financing Auth
RB (Adventist Health/West) Series 2009C		5.00%		03/01/14	(e)		750,000		789,510
RB (Catholic Healthcare West) Series 2009F		5.00%		07/01/27	(b)(e)		1,500,000		1,592,145
RB (Chinese Hospital Assoc) Series 2012		4.00%		06/01/18	(a)		860,000		964,198
RB (Chinese Hospital Assoc) Series 2012		5.00%		06/01/37	(a)(b)		500,000		570,075
RB (City of Hope) Series 2012A		5.00%		11/15/21			700,000		864,745
RB (City of Hope) Series 2012A		5.00%		11/15/22			750,000		928,327
RB (Community Program for Persons with Developmental Disabilities) Series 2011A		5.25%		02/01/20	(a)(e)		1,000,000		1,151,530
RB (Memorial Health Services) Series 2012A		4.00%		10/01/17	(e)		750,000		842,475
RB (Memorial Health Services) Series 2012A		5.00%		10/01/17	(e)		1,000,000		1,169,830
RB (NCROC Paradise Valley Estates) Series 2005		4.25%		12/01/12	(a)(e)		100,000		100,000
RB (NCROC Paradise Valley Estates) Series 2005		4.38%		12/01/13	(a)(e)		170,000		173,800
RB (NCROC Paradise Valley Estates) Series 2005		4.63%		12/01/15	(a)(e)		150,000		166,394
RB (NCROC Paradise Valley Estates) Series 2005		4.75%		12/01/16	(a)(e)		340,000		389,735
RB (NCROC Paradise Valley Estates) Series 2005		4.88%		12/01/17	(a)(e)		200,000		236,446
RB (NCROC Paradise Valley Estates) Series 2005		5.00%		12/01/18	(a)(e)		175,000		213,204
RB (Rady Children’s Hospital) Series 2011		5.50%		08/15/26	(b)(e)		3,935,000		4,636,610
RB (Scripps Health) Series 2008A		5.00%		10/01/16	(e)		3,285,000		3,775,188
RB (St. Joseph Health) Series 2009C		5.00%		07/01/34	(b)(e)		3,000,000		3,212,910
Refunding RB (Marshall Medical Center) Series 2012A		3.00%		11/01/13	(a)		270,000		275,570
Refunding RB (Marshall Medical Center) Series 2012A		4.00%		11/01/16	(a)		1,330,000		1,468,985
California HFA
Limited Obligation M/F Housing RB (Woolf House Apts) Series 2011B		1.05%		01/01/14	(b)(e)		5,950,000		5,968,326
California Infrastructure & Economic Development Bank
RB (California ISO) Series 2009A		5.25%		02/01/21	(b)(e)		1,925,000		2,084,794
RB (Sanford Consortium) Series 2010A		4.00%		05/15/17			315,000		359,075
RB (Sanford Consortium) Series 2010A		4.00%		05/15/18			775,000		901,922
RB (Sanford Consortium) Series 2010A		5.00%		05/15/20			245,000		310,312
RB (USC-Soto St. Health Sciences Building) Series 2010		5.00%		12/01/19			470,000		593,704
RB (USC-Soto St. Health Sciences Building) Series 2010		3.25%		12/01/21	(b)		750,000		848,467
RB (USC-Soto St. Health Sciences Building) Series 2010		5.00%		12/01/23	(b)		720,000		890,122
Refunding RB (Pepperdine Univ) Series 2010		5.00%		11/01/26	(b)		400,000		471,664
Refunding RB (Pepperdine Univ) Series 2010		5.00%		11/01/27	(b)		200,000		234,852
California Municipal Finance Auth
Refunding RB (Univ of San Diego) Series 2012A		5.00%		10/01/31	(b)		1,000,000		1,180,210
California Public Works Board
Lease RB (California State Univ) Series 2009J		6.00%		11/01/29	(b)		400,000		490,840
Lease RB (Dept of Corrections & Rehabilitation) Series 2011C		5.75%		10/01/31	(b)		1,000,000		1,216,050
Lease RB (Dept of Corrections) Series 1993E		5.50%		06/01/15			350,000		371,046

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Lease RB (Judicial Council of California) Series 2011D		5.00%		12/01/22	(b)		1,000,000		1,218,120
Lease RB (Univ of California) Series 2011G		5.00%		12/01/25	(b)		3,000,000		3,745,470
Lease RB (Univ of California) Series 2011G		5.25%		12/01/26	(b)		1,000,000		1,255,870
Lease RB Series 2009I1		6.63%		11/01/34	(b)		2,735,000		3,486,222
Lease RB Series 2012A		5.00%		04/01/23	(b)		3,000,000		3,606,300
Lease RB Series 2012G		4.00%		11/01/16			1,000,000		1,111,770
Lease RB Series 2012G		4.00%		11/01/17			1,000,000		1,127,900
Lease RB Series 2012G		5.00%		11/01/18			1,990,000		2,384,677
Lease Refunding RB (Dept of Corrections & Rehabilitation) Series 2012C		5.00%		06/01/18			1,500,000		1,780,845
California Statewide Communities Development Auth
Health Facility RB (Monterey Peninsula Community Hospital) Series 2011A		6.00%		06/01/33	(b)		1,000,000		1,207,530
M/F Housing RB (740 S Olive St Apts) Series 2009L		2.10%		07/20/14	(a)		330,000		331,211
RB (Cottage Health) Series 2010		5.00%		11/01/16			225,000		252,848
RB (Cottage Health) Series 2010		5.00%		11/01/17			475,000		543,172
RB (Cottage Health) Series 2010		5.00%		11/01/18			600,000		697,242
RB (Enloe Medical Center) Series 2008A		5.50%		08/15/13	(a)		250,000		256,595
RB (Kaiser Permanente) Series 2009A		5.00%		04/01/14			4,340,000		4,586,338
RB (Kaiser Permanente) Series 2009A		4.63%		04/01/19			100,000		118,118
RB (Proposition 1A Receivables) Series 2009		5.00%		06/15/13			5,095,000		5,222,018
RB (St. Joseph Health) Series 2000		4.50%		07/01/18			4,520,000		4,852,627
RB (Sutter Health) Series 2011A		6.00%		08/15/42	(b)		875,000		1,064,866
Refunding RB Series 2012		5.00%		05/15/20	(d)		605,000		715,261
Refunding RB Series 2012		5.00%		05/15/21	(d)		300,000		355,767
Refunding RB Series 2012		5.00%		05/15/24	(b)(d)		620,000		722,982
Refunding RB Series 2012		5.00%		05/15/42	(b)(d)		1,000,000		1,112,080
Sr Living RB (Southern California Presbyterian Homes) Series 2009		5.25%		11/15/14			435,000		461,309
Carson Redevelopment Agency
Tax Allocation Sub Bonds (Merged & Amended Area) Series 2003D		6.00%		01/01/35	(b)(g)		500,000		530,315
Centralia SD
2012 GO Refunding Bonds		4.00%		08/01/20			205,000		244,055
2012 GO Refunding Bonds		4.00%		08/01/21			350,000		418,576
2012 GO Refunding Bonds		4.00%		08/01/24	(b)		575,000		679,937
Cerritos CCD
GO Bonds Series 2012D		0.00%		08/01/26	(f)		1,000,000		599,680
Chula Vista
Industrial Development Refunding RB Series 2006A		1.65%		07/01/18	(b)		2,000,000		2,034,920
Citrus Heights Water District
Revenue Refunding COP Series 2010		3.00%		10/01/13			200,000		204,348
Revenue Refunding COP Series 2010		4.00%		10/01/20			120,000		134,525
Contra Costa CCD
GO Refunding Bonds 2012		4.00%		08/01/16			1,690,000		1,903,988
GO Refunding Bonds 2012		4.00%		08/01/17			625,000		720,550
GO Refunding Bonds Series 2011		5.00%		08/01/22	(b)		1,000,000		1,271,930
Convention Center Expansion Financing Auth
Lease Refunding RB Series 2012A		4.00%		04/15/17			575,000		633,408
Lease Refunding RB Series 2012A		4.00%		04/15/18			1,000,000		1,115,190
Lease Refunding RB Series 2012A		5.00%		04/15/19			1,000,000		1,179,640
Cupertino Public Facilities Corp
COP (Refinancing) Series 2012		3.00%		07/01/20			2,265,000		2,497,072
COP (Refinancing) Series 2012		3.00%		07/01/21	(b)		1,605,000		1,744,314
Cupertino Union SD
GO Refunding Bonds Series 2011A		5.00%		08/01/23	(b)		240,000		300,638
GO Refunding Bonds Series 2011A		5.00%		08/01/24	(b)		600,000		746,166
GO Refunding Bonds Series 2011A		5.00%		08/01/26	(b)		325,000		396,643
East Bay Municipal Utility District
Water System Refunding RB Series 2013A		5.00%		06/01/20	(d)		2,000,000		2,493,980
Water System Refunding RB Series 2013A		5.00%		06/01/21	(d)		3,000,000		3,792,270
East Bay Regional Park District
GO Refunding Bonds Series 2008		5.00%		09/01/13			135,000		139,689
El Camino CCD
GO Refunding Bonds Series 2012		5.00%		08/01/23	(b)		1,500,000		1,911,435
Emery USD
GO Bonds Series 2011A		6.50%		08/01/31	(b)		2,500,000		3,269,325
Foothill-DeAnza CCD
GO Refunding Bonds Series 2012		5.00%		08/01/22			1,380,000		1,806,848

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Forestville Union SD
GO Bonds Series 2011		6.25%		08/01/32	(b)		835,000		1,086,393
Franklin-McKinley SD
GO Bonds Series 2012B		4.00%		08/01/16			325,000		358,183
GO Bonds Series 2012B		4.00%		08/01/17			150,000		168,453
GO Bonds Series 2012B		4.00%		08/01/18			500,000		566,080
Glendale Redevelopment Agency
Tax Allocation Bonds Series 2002		5.25%		12/01/19	(b)		3,275,000		3,368,599
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25%		06/01/33	(b)(g)		4,545,000		4,678,168
Golden West Schools Financing Auth
GO RB (Rowland USD) Series 2005		5.25%		09/01/24			1,675,000		2,205,003
Grossmont UHSD
GO Refunding Bonds Series 2012		4.00%		08/01/20			2,500,000		2,998,375
Guerneville Elementary SD
GO Bonds Series 2012A		6.13%		08/01/42	(b)		1,105,000		1,371,592
Healdsburg Redevelopment Agency
Tax Allocation Bonds (Sotoyome) Series 2010		5.00%		08/01/25	(b)		575,000		674,578
Tax Allocation Bonds (Sotoyome) Series 2010		5.25%		08/01/30	(b)		1,000,000		1,166,980
Huntington Beach Public Finance Auth
Lease Refunding RB Series 2011A		2.50%		09/01/13			750,000		762,502
Imperial Irrigation District
Electric System Refunding RB Series 2011C		5.00%		11/01/14			200,000		217,046
Electric System Refunding RB Series 2011C		5.00%		11/01/15			365,000		409,501
Electric System Refunding RB Series 2011C		5.00%		11/01/17			600,000		712,392
Electric System Refunding RB Series 2011C		5.00%		11/01/18			425,000		516,804
Electric System Refunding RB Series 2011D		5.00%		11/01/19			720,000		883,656
Electric System Refunding RB Series 2011D		5.00%		11/01/20			750,000		931,725
Electric System Refunding RB Series 2011D		5.00%		11/01/21			1,235,000		1,543,836
Kern Cnty
Refunding COP 2011 Series A		5.00%		11/01/17			1,460,000		1,698,535
Refunding COP 2011 Series A		5.00%		11/01/18			1,235,000		1,471,465
Lodi Public Financing Auth
Wastewater Refunding RB Series 2012A		4.00%		10/01/16			300,000		331,167
Wastewater Refunding RB Series 2012A		4.00%		10/01/17			325,000		363,620
Wastewater Refunding RB Series 2012A		4.00%		10/01/18			500,000		564,965
Wastewater Refunding RB Series 2012A		4.00%		10/01/19			750,000		852,375
Wastewater Refunding RB Series 2012A		4.00%		10/01/20			450,000		512,415
Wastewater Refunding RB Series 2012A		4.00%		10/01/21			725,000		820,410
Long Beach CCD
GO Bonds Series 2012B		5.00%		08/01/24	(b)(d)		770,000		968,814
GO Bonds Series 2012B		3.25%		08/01/42	(b)(d)		500,000		481,510
Los Angeles
Airport Sr RB Series 2010A		4.00%		05/15/20			225,000		266,393
Judgment Obligation Bonds Series 2010A		5.00%		06/01/20			5,690,000		7,077,506
Wastewater System Sub Refunding RB Series 2012A		4.00%		06/01/16			575,000		641,131
Wastewater System Sub Refunding RB Series 2012A		5.00%		06/01/17			2,500,000		2,965,700
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/18			250,000		291,853
Wastewater System Sub Refunding RB Series 2012B		5.00%		06/01/19			250,000		312,678
Wastewater System Sub Refunding RB Series 2012B		5.00%		06/01/20			500,000		635,695
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/22			490,000		590,754
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/24	(b)		1,075,000		1,259,975
Wastewater System Sub Refunding RB Series 2012C		5.00%		06/01/21			225,000		289,204
Los Angeles CCD
GO Bonds Series 2009A		6.00%		08/01/33	(b)		1,545,000		1,952,463
Los Angeles Cnty
Refunding COP 2012		5.00%		09/01/22			2,250,000		2,724,817
Los Angeles Dept of Airports
Airport Sub RB (Los Angeles Int’l Airport) Series 2010B		5.00%		05/15/21	(b)		430,000		522,123
Los Angeles Dept of Water & Power
Power System RB Series 2009B		5.25%		07/01/23	(b)		1,700,000		2,099,942
Power System RB Series 2011A		4.00%		07/01/16			515,000		576,208
Power System RB Series 2011A		5.00%		07/01/18			3,350,000		4,100,936
Power System RB Series 2012C		4.00%		01/01/16	(b)		1,925,000		2,112,418
Power System RB Series 2012C		5.00%		01/01/16	(b)		770,000		866,512
Water System RB Series 2011A		5.00%		07/01/19			125,000		156,456

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Los Angeles Harbor Dept
Refunding RB Series 2011B		5.00%		08/01/24	(b)		1,000,000		1,246,320
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2007A		5.00%		08/01/14			175,000		186,853
Lease RB (Capital Equipment) Series 2010A		4.00%		11/01/16			170,000		185,858
Lease RB (Capital Equipment) Series 2012A		4.00%		03/01/16			1,200,000		1,299,636
Lease RB (Capital Equipment) Series 2012A		5.00%		03/01/16			2,500,000		2,786,500
Lease RB (Real Property) Series 2012B		4.00%		03/01/24	(b)		560,000		611,016
Los Angeles USD
Refunding COP (Headquarters Building) Series 2012A		5.00%		10/01/20			2,375,000		2,824,112
Refunding COP (Headquarters Building) Series 2012A		5.00%		10/01/21			2,000,000		2,397,100
Refunding COP (Headquarters Building) Series 2012A		5.00%		10/01/22			3,000,000		3,588,840
Refunding COP (Headquarters Building) Series 2012B		4.00%		10/01/17			285,000		315,358
Los Gatos
COP (Library) 2010		5.00%		08/01/21	(b)		500,000		598,100
M-S-R Public Power Agency
Sub Lien RB Series 2008L		5.00%		07/01/16			830,000		940,581
Sub Lien RB Series 2008L		5.00%		07/01/17			855,000		994,981
Malibu
COP (City Hall) Series 2009A		4.00%		07/01/14			70,000		73,968
COP (City Hall) Series 2009A		4.00%		07/01/17			100,000		110,215
COP (City Hall) Series 2009A		4.00%		07/01/18			75,000		83,500
COP (City Hall) Series 2009A		5.00%		07/01/20	(b)		75,000		88,235
COP (City Hall) Series 2009A		5.00%		07/01/21	(b)		110,000		128,018
COP (City Hall) Series 2009A		5.00%		07/01/22	(b)		100,000		115,983
Midpeninsula Regional Open Space District
RB Series 2011		6.00%		09/01/41	(b)		3,000,000		3,628,140
Modesto Irrigation District
Electric System Refunding RB Series 2011A		5.00%		07/01/14			500,000		534,455
Electric System Refunding RB Series 2011A		5.00%		07/01/15			945,000		1,045,586
Electric System Refunding RB Series 2012A		5.00%		07/01/16			200,000		228,004
Electric System Refunding RB Series 2012A		5.00%		07/01/17			100,000		117,002
Electric System Refunding RB Series 2012A		5.00%		07/01/18			250,000		299,118
Electric System Refunding RB Series 2012A		5.00%		07/01/19			200,000		243,234
Mountain View Shoreline Regional Park Community
RB Series 2011A		5.00%		08/01/19			420,000		476,557
RB Series 2011A		5.00%		08/01/20			200,000		227,464
RB Series 2011A		5.00%		08/01/21			550,000		624,310
RB Series 2011A		5.75%		08/01/40	(b)		700,000		795,417
Mt. Diablo Hospital District
Hospital RB Series 1993A		5.00%		12/01/13	(g)		935,000		953,466
Newport Beach
RB (Hoag Memorial Hospital Presbyterian) Series 2009D		5.00%		12/01/38	(b)		2,500,000		2,520,425
Newport-Mesa USD
GO Refunding Bonds Series 2012		5.00%		08/01/26	(b)		900,000		1,127,007
GO Refunding Bonds Series 2012		5.00%		08/01/27	(b)		1,220,000		1,525,293
North City West School Facilities Financing Auth CFD No. 1
Sub Special Tax RB Series 2012A		4.00%		09/01/18			730,000		813,381
Sub Special Tax RB Series 2012A		4.00%		09/01/19			755,000		845,185
Northern California Transmission Agency
RB (California-Oregon Transmission) Series 1990A		7.00%		05/01/13			355,000		364,766
Novato Redevelopment Agency
Tax Allocation Bonds (Hamilton Field Redevelopment) Series 2011		6.75%		09/01/40	(b)		1,000,000		1,157,870
Oakland
GO Refunding Bonds Series 2012		5.00%		01/15/24	(b)		710,000		848,194
Oakland State Building Auth
Lease Refunding RB (Elihu M. Harris State Office Building) Series 2005A		4.50%		04/01/13			750,000		758,535
Palo Alto
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		5.00%		09/02/27	(b)		570,000		646,021
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		5.00%		09/02/30	(b)		440,000		489,069
Palomar Health
COP 2009		5.50%		11/01/19			3,000,000		3,440,400
Pasadena Area CCD
GO Bonds Series 2009D		5.00%		08/01/21	(b)		130,000		155,981

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Pasadena Public Financing Auth
Lease RB (Rose Bowl Renovation) Series 2010A		5.00%		03/01/25	(b)		200,000		242,652
Placentia-Yorba Linda USD
GO Refunding Bonds 2012		4.00%		08/01/16			950,000		1,064,408
GO Refunding Bonds 2012		5.00%		08/01/19			500,000		625,535
Pomona
S/F Mortgage Refunding RB Series 1990B		7.50%		08/01/23	(g)		900,000		1,181,421
Riverside Cnty Palm Desert Financing Auth
Lease RB (Cnty Facilities) Series 2008A		5.50%		05/01/18			1,790,000		2,116,496
Roseville
Special Tax Refunding RB Series 2010		3.00%		09/01/14			2,200,000		2,260,236
Roseville City SD
GO Refunding Bonds Series 2011		4.00%		08/01/14			500,000		530,440
GO Refunding Bonds Series 2011		5.00%		08/01/25	(b)		780,000		961,623
GO Refunding Bonds Series 2011		5.00%		08/01/28	(b)		1,000,000		1,212,530
Ross Valley SD
GO Bonds Series A		5.00%		08/01/31	(b)		1,000,000		1,188,320
San Bernardino CCD
GO Bonds Series A		6.25%		08/01/23	(b)		1,275,000		1,591,978
San Diego CCD
GO Bonds Series 2011		5.00%		08/01/36	(b)		2,000,000		2,390,360
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A		5.00%		09/01/19			1,010,000		1,207,849
Lease Refunding RB Series 2010A		4.25%		03/01/20			950,000		1,085,109
Lease Refunding RB Series 2010A		5.00%		09/01/20			795,000		951,957
San Diego Regional Building Auth
Lease RB Series 2009A		3.00%		02/01/13			25,000		25,092
Lease RB Series 2009A		4.00%		02/01/16			415,000		450,873
Lease RB Series 2009A		4.00%		02/01/17			890,000		985,746
San Diego USD
GO Refunding Bonds Series 2005C2		5.50%		07/01/21			2,570,000		3,329,281
San Francisco
COP Series 2009A		5.00%		04/01/15			550,000		601,166
COP Series 2009A		5.00%		04/01/17			950,000		1,100,290
COP Series 2009A		5.00%		04/01/21	(b)		4,225,000		5,001,682
Refunding COP (Moscone Center South) Series 2011A		5.00%		09/01/24	(b)		2,340,000		2,827,211
San Francisco Airport Commission
Second Series RB Series 2009E		5.25%		05/01/24	(b)		300,000		366,408
Second Series Refunding RB Series 2009D		4.00%		05/01/24	(b)(d)		1,625,000		1,874,437
Second Series Refunding RB Series 2011B		5.50%		05/01/21			750,000		968,940
Second Series Refunding RB Series 2012A		5.00%		05/01/26	(b)		450,000		544,181
San Francisco Bay Area Rapid Transit District
GO Bonds Series 2007B		5.00%		08/01/35	(b)		2,565,000		2,939,798
Sales Tax RB Series 2012B		5.00%		07/01/31	(b)		3,505,000		4,327,448
San Francisco CCD
GO Bonds Series 2004B		4.38%		06/15/23	(b)		2,700,000		2,761,371
San Francisco Public Utilities Commission
Water RB Series 2010F		4.00%		11/01/19			2,535,000		2,980,146
Water RB Series 2011A		5.00%		11/01/20			2,360,000		3,024,175
San Francisco Redevelopment Financing Auth
Tax Allocation RB Series 2011B		6.63%		08/01/41	(b)		1,190,000		1,435,937
Tax Allocation Refunding RB Series 2007B		5.00%		08/01/15			1,000,000		1,085,850
San Jose
Airport RB Series 2011A2		5.00%		03/01/19			610,000		722,319
Airport RB Series 2011A2		5.00%		03/01/21			1,110,000		1,329,125
San Lorenzo Valley USD
GO Bonds Series 2008A		0.00%		08/01/28	(f)		500,000		268,550
GO Bonds Series 2008A		0.00%		08/01/30	(f)		250,000		121,475
San Mateo Cnty Jt Powers Financing Auth
Lease Refunding RB (Youth Services Campus) Series 2008A		4.00%		07/15/17			425,000		472,562
Lease Refunding RB (Youth Services Campus) Series 2008A		5.00%		07/15/20	(b)		350,000		408,699
San Mateo-Foster City SD
GO Refunding Bonds Series 2012		2.00%		09/01/13			1,635,000		1,656,353
GO Refunding Bonds Series 2012		4.00%		09/01/17			1,840,000		2,120,674
GO Refunding Bonds Series 2012		4.00%		09/01/19			1,960,000		2,307,273

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Santa Clara Cnty Financing Auth
Lease RB (VMC Refunding) Series 2008A		5.00%		11/15/22	(b)		1,600,000		1,858,016
RB (El Camino Hospital) Series 2007A		5.00%		02/01/17			230,000		259,139
RB (El Camino Hospital) Series 2007B		5.00%		02/01/16	(e)		50,000		55,129
RB (El Camino Hospital) Series 2007B		5.00%		02/01/17			115,000		129,569
RB (El Camino Hospital) Series 2007C		5.00%		02/01/17			300,000		338,007
Santa Cruz Cnty Redevelopment Agency
Tax Allocation Bonds Series 2009A		7.00%		09/01/36	(b)		900,000		1,075,644
Santa Cruz HSD
GO Refunding Bonds Series 2005		5.00%		08/01/29	(b)		5,680,000		5,849,662
Santa Monica Public Financing Auth
Lease RB Series 2011A		5.00%		06/01/28	(b)		1,195,000		1,441,505
Lease RB Series 2011A		5.00%		06/01/30	(b)		2,420,000		2,890,375
Santa Monica Redevelopment Agency
Tax Allocation Bonds (Earthquake Recovery) Series 2011		5.88%		07/01/36	(b)		1,125,000		1,375,470
Santa Monica-Malibu USD
GO Bonds Series B		5.00%		08/01/17			115,000		135,241
GO Bonds Series B		5.00%		08/01/18			100,000		120,777
GO Bonds Series B		5.00%		08/01/19			75,000		92,475
Sonoma-Marina Area Rail Transit District
Sales Tax RB Series 2011A		5.00%		03/01/18			500,000		597,030
Sales Tax RB Series 2011A		5.00%		03/01/20			500,000		617,680
Sales Tax RB Series 2011A		5.00%		03/01/29	(b)		500,000		605,285
South Orange Cnty Public Financing Auth
Facility Lease Refunding RB (Juvenile Justice Center) Series 2012		2.00%		06/01/14			600,000		610,722
Facility Lease Refunding RB (Juvenile Justice Center) Series 2012		4.00%		06/01/16			1,500,000		1,643,085
Southern California Metropolitan Water District
Water Refunding RB Series 1993A		5.75%		07/01/21			5,195,000		6,527,673
Water Refunding RB Series 2012F		5.00%		07/01/27	(b)		2,000,000		2,560,420
Tamalpais UHSD
GO Refunding Bonds Series 2011		5.00%		08/01/27	(b)		1,000,000		1,256,310
Tuolumne Wind Project Auth
RB Series 2009A		5.00%		01/01/22	(b)		475,000		550,497
Tustin USD
GO Bonds 2008 Election Series B		6.00%		08/01/36	(b)		950,000		1,230,468
Univ of California
General RB Series 2009Q		5.25%		05/15/26	(b)		3,980,000		4,736,240
General RB Series 2011AB		3.00%		05/15/18			845,000		941,457
Upland
COP (San Antonio Community Hospital) Series 2011		5.50%		01/01/19			1,165,000		1,355,757
COP (San Antonio Community Hospital) Series 2011		6.50%		01/01/41	(b)		1,500,000		1,825,800
Washington Township Health Care District
RB Series 2009A		4.50%		07/01/13			250,000		254,733
RB Series 2009A		5.00%		07/01/14			300,000		316,638
RB Series 2009A		5.00%		07/01/15			300,000		325,284
RB Series 2009A		5.00%		07/01/16	(e)		75,000		83,156
RB Series 2009A		5.13%		07/01/17			200,000		225,496
RB Series 2009A		5.25%		07/01/18			250,000		288,078
RB Series 2009A		5.50%		07/01/19			300,000		352,440
RB Series 2009A		6.00%		07/01/29	(b)		1,000,000		1,165,390
West Basin Municipal Water District
Refunding RB Series 2012A		5.00%		08/01/28	(b)		2,330,000		2,853,108
West Kern Water District
Revenue COP Series 2011		4.00%		06/01/18			70,000		77,474
Revenue COP Series 2011		4.00%		06/01/19			500,000		557,990
Revenue COP Series 2011		5.00%		06/01/20			500,000		593,520
Revenue COP Series 2011		5.00%		06/01/28	(b)		900,000		1,037,655
Westlands Water District
Refunding RB Series 2012A		2.00%		09/01/13			250,000		252,763
Refunding RB Series 2012A		3.00%		09/01/14			575,000		597,914
Refunding RB Series 2012A		4.00%		09/01/17			250,000		281,780
Refunding RB Series 2012A		4.00%		09/01/18			250,000		285,423
Refunding RB Series 2012A		4.00%		09/01/19			270,000		310,489
Whittier
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/15			700,000		761,250
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/16			2,100,000		2,333,772

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued


Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/17			2,050,000		2,325,028
Woodland Finance Auth
Water RB Series 2011		3.85%		03/01/18			145,000		157,673
Water RB Series 2011		4.15%		03/01/19			180,000		201,132
Water RB Series 2011		4.45%		03/01/20			100,000		113,972
Water RB Series 2011		4.65%		03/01/21			115,000		133,210

									427,227,212

PUERTO RICO 1.8%
Puerto Rico
GO Public Improvement Refunding Bonds Series 2012A		5.25%		07/01/23	(b)		1,500,000		1,619,355
Puerto Rico Electric Power Auth
Power RB Series NN		5.00%		07/01/32	(b)(g)		925,000		950,326
Power RB Series ZZ		5.25%		07/01/18			3,000,000		3,375,060
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Fincg Auth
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		5.00%		10/01/16			500,000		552,585
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		5.00%		10/01/17			500,000		556,680
Puerto Rico Sales Tax Financing Corp
Sales Tax RB Sr Series 2011C		5.00%		08/01/22	(b)		1,000,000		1,222,200

									8,276,206

Total Fixed-Rate Obligations
(Cost $402,977,857)									435,503,418




Variable-Rate Obligations 5.9% of net assets

CALIFORNIA 4.8%
California
Economic Recovery Bonds Series 2004C3		0.16%		07/01/23	(a)(b)		1,000,000		1,000,000
Economic Recovery Bonds Series 2004C4		0.14%		07/01/23	(a)(b)		3,485,000		3,485,000
GO Bonds Series 2004A5		0.18%		05/01/34	(a)(b)		1,000,000		1,000,000
GO Bonds Series 2004B3		0.16%		05/01/34	(a)(b)		2,000,000		2,000,000
GO Refunding Bonds 2012B		1.06%		05/01/18	(b)		1,000,000		1,005,160
GO Refunding Bonds 2012B		1.31%		05/01/20	(b)		1,000,000		1,007,000
California Educational Facilities Auth
Refunding RB (Loyola Marymount Univ) Series 2010B		0.96%		10/01/15	(b)(e)		4,190,000		4,211,537
California Statewide Communities Development Auth
RB (Kaiser Permanente) Series 2012B		1.11%		04/01/52	(b)		2,000,000		2,011,160
Irvine Ranch Water District
Consolidated Bonds Series 2009B		0.17%		10/01/41	(a)(b)		800,000		800,000
Los Angeles Dept of Water & Power
Power System RB Series 2001B3		0.17%		07/01/34	(a)(b)		1,200,000		1,200,000
Southern California Metropolitan Water District
Water RB Series 2000B3		0.14%		07/01/35	(a)(b)		1,300,000		1,300,000
Water Refunding RB Series 2012B1		0.51%		07/01/27	(b)		2,000,000		2,002,260
Univ of California
Medical Center Pooled RB Series 2007B1		0.16%		05/15/32	(a)(b)		1,000,000		1,000,000

									22,022,117

PUERTO RICO 1.1%
Puerto Rico Sales Tax Financing Corp
First Sub Sales Tax RB Series 2010A		0.41%		02/01/34	(a)(b)(c)		5,000,000		5,000,000

Total Variable-Rate Obligations
(Cost $26,975,000)									27,022,117



End of Investments.

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

At 11/30/12, the tax basis cost of the fund’s investments was $429,940,605 and the unrealized appreciation and depreciation were $32,598,417 and ($13,487), respectively, with a net unrealized appreciation of $32,584,930.


(a)		Credit-enhanced or liquidity-enhanced.
(b)		The effective maturity may be shorter than the final maturity shown because the security is subject to a put, demand or call feature.
(c)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $5,000,000 or 1.1% of net assets.
(d)		Delayed-delivery security.
(e)		All or a portion of this security is designated as collateral for delayed-delivery securities.
(f)		Zero Coupon Bond.
(g)		Refunded bond.


BAN —		Bond anticipation note
CCD —		Community college district
CFD —		Community facilities district
COP —		Certificate of participation
GO —		General obligation
HFA —		Housing finance agency/authority
HSD —		High school district
M/F —		Multi-family
RAN —		Revenue anticipation note
RB —		Revenue bond
SD —		School district
S/F —		Single-family
UHSD —		Union high school district
USD —		Unified school district

The fund values the securities in its portfolio every business day. The fund uses the following policies to value various types of securities:


	•	Bonds and notes: valued at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Securities for which no quoted value is available: The Board has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when it is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. The fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the procedures.

	•	Futures Contracts: valued at their settlement prices as of the close of their exchanges.

	•	Short-term securities (60 days or less to maturity): valued at amortized cost, which approximates market value.

	•	Underlying funds: valued at their respective net asset values.

Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

the fund determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

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


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

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

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total²

Fixed-Rate Obligations¹

$—

$435,503,418

$—

$435,503,418

Variable-Rate Obligations¹

—

27,022,117

—

27,022,117

Total

$—

$462,525,535

$—

$462,525,535


¹		As categorized in Portfolio Holdings.
²		The fund had no Other Financial Instruments.

REG406024NOV12

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, Marie Chandoha 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/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date:		1/24/2013

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/ Marie Chandoha Marie Chandoha
		Chief Executive Officer

Date:		1/24/2013

By:		/s/ George Pereira George Pereira
		Principal Financial Officer

Date:		1/24/2013