N-Q 1 f30054sinvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06200
Schwab Investments — Schwab 1000 Index Fund
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices)      (Zip code)
Marie Chandoha
Schwab Investments — Schwab 1000 Index Fund
211 Main St, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: October 31
Date of reporting period: January 31, 2013
 
 
Item 1. Schedule of Investments.

 

 

Schwab Investments
Schwab 1000 Index Fund
 
Portfolio Holdings as of January 31, 2013 (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   ($)   ($)
 
  99 .6%   Common Stock     1,947,578,898       5,066,303,107  
  0 .2%   Other Investment Company     11,409,506       11,409,506  
  0 .1%   Short-Term Investment     1,347,946       1,347,946  
 
 
  99 .9%   Total Investments     1,960,336,350       5,079,060,559  
  0 .7%   Collateral Invested for Securities on Loan     38,051,098       38,051,098  
  (0 .6)%   Other Assets and Liabilities, Net             (31,087,050 )
 
 
  100 .0%   Net Assets             5,086,024,607  
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Common Stock 99.6% of net assets
 
Automobiles & Components 0.9%
Autoliv, Inc. (b)
    32,400       2,131,920  
BorgWarner, Inc. *
    37,298       2,766,766  
Dana Holding Corp.
    50,100       805,608  
Ford Motor Co.
    1,271,387       16,464,462  
General Motors Co. *
    260,300       7,311,827  
Gentex Corp.
    48,772       933,008  
Harley-Davidson, Inc.
    73,892       3,873,418  
Johnson Controls, Inc.
    231,354       7,192,796  
Lear Corp.
    34,800       1,705,200  
Tesla Motors, Inc. (b)*
    22,500       843,975  
The Goodyear Tire & Rubber Co. *
    83,100       1,143,456  
TRW Automotive Holdings Corp. *
    35,300       2,034,339  
Visteon Corp. *
    17,500       985,075  
                 
              48,191,850  
 
Banks 2.8%
Associated Banc-Corp.
    59,048       842,615  
Bank of Hawaii Corp.
    15,832       761,361  
BankUnited, Inc.
    16,900       454,610  
BB&T Corp.
    228,600       6,922,008  
BOK Financial Corp.
    8,900       498,845  
CIT Group, Inc. *
    68,200       2,888,270  
City National Corp.
    15,532       822,575  
Comerica, Inc.
    67,528       2,320,262  
Commerce Bancshares, Inc.
    24,173       907,696  
Cullen/Frost Bankers, Inc.
    20,800       1,224,912  
East West Bancorp, Inc.
    50,400       1,181,880  
Fifth Third Bancorp
    286,884       4,673,340  
First Horizon National Corp.
    87,376       892,109  
First Niagara Financial Group, Inc.
    118,300       927,472  
First Republic Bank
    20,200       720,938  
Hancock Holding Co.
    28,800       870,336  
Hudson City Bancorp, Inc.
    146,840       1,255,482  
Huntington Bancshares, Inc.
    293,798       2,044,834  
KeyCorp
    324,014       3,045,732  
M&T Bank Corp.
    40,143       4,122,285  
New York Community Bancorp, Inc.
    149,882       2,000,925  
People’s United Financial, Inc.
    121,993       1,501,734  
PNC Financial Services Group, Inc.
    174,634       10,792,381  
Prosperity Bancshares, Inc.
    15,900       717,249  
Regions Financial Corp.
    481,506       3,746,117  
Signature Bank *
    15,700       1,160,701  
SunTrust Banks, Inc.
    182,593       5,180,163  
SVB Financial Group *
    14,900       988,913  
TFS Financial Corp. *
    27,300       279,279  
U.S. Bancorp
    633,605       20,972,325  
Valley National Bancorp
    67,062       656,537  
Wells Fargo & Co.
    1,642,196       57,197,687  
Zions Bancorp
    63,198       1,473,777  
                 
              144,045,350  
 
Capital Goods 8.2%
3M Co.
    212,654       21,382,360  
Acuity Brands, Inc.
    14,300       983,840  
AECOM Technology Corp. *
    39,200       1,002,344  
AGCO Corp. *
    33,000       1,749,000  
Air Lease Corp. *
    22,700       541,849  
Alliant Techsystems, Inc.
    11,238       727,323  
AMETEK, Inc.
    81,705       3,349,088  
Armstrong World Industries, Inc.
    7,100       390,429  
B/E Aerospace, Inc. *
    35,100       1,807,299  
Carlisle Cos., Inc.
    20,736       1,330,214  
Caterpillar, Inc.
    218,396       21,487,982  
Chicago Bridge & Iron Co., N.V., NY Shares
    33,700       1,712,297  
CLARCOR, Inc.
    17,100       862,866  
Colfax Corp. *
    21,700       968,037  
Crane Co.
    16,384       823,788  
Cummins, Inc.
    60,092       6,900,364  
Danaher Corp.
    193,640       11,604,845  
Deere & Co.
    129,346       12,166,285  
Donaldson Co., Inc.
    43,500       1,636,035  
Dover Corp.
    59,337       4,104,934  
Eaton Corp. plc
    155,301       8,844,392  
Emerson Electric Co.
    241,528       13,827,478  
Fastenal Co.
    91,400       4,540,752  
Flowserve Corp.
    17,341       2,718,549  
Fluor Corp.
    53,458       3,465,682  
Fortune Brands Home & Security, Inc. *
    52,900       1,731,946  
Foster Wheeler AG *
    39,800       1,039,178  
Gardner Denver, Inc.
    17,100       1,203,327  
GATX Corp.
    15,800       748,130  
 
 
 
 1

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Generac Holdings, Inc.
    8,700       323,466  
General Dynamics Corp.
    109,044       7,229,617  
General Electric Co.
    3,511,102       78,227,353  
Graco, Inc.
    20,294       1,160,817  
GrafTech International Ltd. *
    43,500       417,600  
HEICO Corp.
    15,125       686,070  
Hexcel Corp. *
    33,500       897,465  
Honeywell International, Inc.
    262,699       17,926,580  
Hubbell, Inc., Class B
    16,932       1,541,659  
IDEX Corp.
    28,406       1,417,175  
Illinois Tool Works, Inc.
    142,404       8,947,243  
Ingersoll-Rand plc
    95,700       4,918,023  
Jacobs Engineering Group, Inc. *
    44,056       2,119,534  
Joy Global, Inc.
    35,708       2,255,674  
KBR, Inc.
    50,600       1,579,732  
Kennametal, Inc.
    26,698       1,094,885  
L-3 Communications Holdings, Inc.
    31,474       2,389,506  
Lincoln Electric Holdings, Inc.
    29,000       1,563,970  
Lockheed Martin Corp.
    90,264       7,841,234  
Masco Corp.
    121,636       2,236,886  
Moog, Inc., Class A *
    15,400       674,520  
MSC Industrial Direct Co., Inc., Class A
    15,558       1,230,949  
Navistar International Corp. *
    24,700       644,423  
Nordson Corp.
    18,000       1,217,160  
Northrop Grumman Corp.
    84,132       5,471,945  
Oshkosh Corp. *
    31,100       1,218,498  
Owens Corning *
    41,100       1,712,637  
PACCAR, Inc.
    118,489       5,576,092  
Pall Corp.
    39,133       2,672,784  
Parker Hannifin Corp.
    48,553       4,513,972  
Pentair Ltd.
    71,195       3,608,163  
Polypore International, Inc. (b)*
    13,600       524,824  
Precision Castparts Corp.
    49,001       8,986,783  
Quanta Services, Inc. *
    72,100       2,088,737  
Raytheon Co.
    109,090       5,746,861  
Regal-Beloit Corp.
    14,400       1,067,904  
Robbins & Myers, Inc.
    15,600       909,168  
Rockwell Automation, Inc.
    48,249       4,303,328  
Rockwell Collins, Inc.
    48,253       2,841,137  
Roper Industries, Inc.
    32,591       3,827,813  
Sauer-Danfoss, Inc.
    4,000       214,680  
Seaboard Corp.
    105       283,848  
Sensata Technologies Holding N.V. *
    29,300       988,582  
Snap-on, Inc.
    19,750       1,600,145  
Spirit AeroSystems Holdings, Inc., Class A *
    37,400       596,156  
SPX Corp.
    17,314       1,292,144  
Stanley Black & Decker, Inc.
    54,441       4,182,702  
Teledyne Technologies, Inc. *
    12,600       860,076  
Terex Corp. *
    37,282       1,207,191  
Textron, Inc.
    94,538       2,718,913  
The Babcock & Wilcox Co.
    39,500       1,052,280  
The Boeing Co.
    226,189       16,708,581  
The Timken Co.
    28,594       1,532,924  
TransDigm Group, Inc.
    15,200       2,058,688  
Trinity Industries, Inc.
    26,900       1,067,930  
Triumph Group, Inc.
    16,900       1,189,253  
United Rentals, Inc. *
    31,467       1,592,860  
United Technologies Corp.
    282,803       24,765,059  
URS Corp.
    27,500       1,140,700  
Valmont Industries, Inc.
    7,600       1,107,472  
W.W. Grainger, Inc.
    20,576       4,481,864  
WABCO Holdings, Inc. *
    22,100       1,384,786  
Wabtec Corp.
    16,300       1,526,006  
Watsco, Inc.
    9,700       730,895  
WESCO International, Inc. *
    14,400       1,050,192  
Woodward, Inc.
    19,950       766,280  
Xylem, Inc.
    62,800       1,754,004  
                 
              415,117,011  
 
Commercial & Professional Supplies 0.8%
Avery Dennison Corp.
    35,760       1,377,118  
Cintas Corp.
    37,510       1,585,173  
Clean Harbors, Inc. *
    16,200       900,558  
Copart, Inc. *
    36,074       1,295,417  
Corrections Corp. of America
    33,800       1,280,682  
Equifax, Inc.
    41,200       2,418,440  
IHS, Inc., Class A *
    16,400       1,687,560  
Iron Mountain, Inc.
    57,693       1,973,678  
Manpower, Inc.
    27,791       1,431,236  
Nielsen Holdings N.V. *
    41,700       1,355,667  
Pitney Bowes, Inc. (b)
    67,841       977,589  
R.R. Donnelley & Sons Co. (b)
    63,819       587,135  
Republic Services, Inc.
    100,181       3,194,772  
Robert Half International, Inc.
    48,591       1,712,347  
Rollins, Inc.
    21,900       541,368  
Stericycle, Inc. *
    28,898       2,726,526  
The Dun & Bradstreet Corp.
    13,625       1,110,982  
Towers Watson & Co., Class A
    17,500       1,068,900  
Tyco International Ltd.
    156,200       4,721,926  
Verisk Analytics, Inc., Class A *
    47,800       2,636,648  
Waste Connections, Inc.
    37,900       1,365,158  
Waste Management, Inc.
    147,877       5,379,765  
                 
              41,328,645  
 
Consumer Durables & Apparel 1.3%
Carter’s, Inc. *
    17,300       1,041,979  
Coach, Inc.
    96,030       4,897,530  
D.R. Horton, Inc.
    94,597       2,238,165  
Deckers Outdoor Corp. (b)*
    13,100       523,345  
Fossil, Inc. *
    17,900       1,889,882  
Garmin Ltd. (b)
    32,586       1,234,683  
Hanesbrands, Inc. *
    33,000       1,236,840  
Harman International Industries, Inc.
    23,797       1,065,630  
Hasbro, Inc. (b)
    40,125       1,499,471  
Jarden Corp. *
    26,400       1,553,376  
Leggett & Platt, Inc.
    46,944       1,382,031  
Lennar Corp., Class A (b)
    54,675       2,271,199  
Mattel, Inc.
    115,197       4,334,863  
Mohawk Industries, Inc. *
    19,439       1,976,169  
Newell Rubbermaid, Inc.
    98,426       2,311,042  
NIKE, Inc., Class B
    244,656       13,223,657  
NVR, Inc. *
    1,398       1,439,465  
Polaris Industries, Inc.
    21,500       1,872,435  
PulteGroup, Inc. *
    114,499       2,374,709  
PVH Corp.
    23,000       2,734,010  
Ralph Lauren Corp.
    20,295       3,378,712  
Tempur-Pedic International, Inc. *
    13,900       541,544  
The Warnaco Group, Inc. *
    13,800       1,010,298  
 
 
 
2 

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Toll Brothers, Inc. *
    50,000       1,872,500  
Tupperware Brands Corp.
    19,500       1,485,900  
Under Armour, Inc., Class A *
    25,000       1,271,750  
VF Corp.
    29,682       4,380,470  
Whirlpool Corp.
    26,115       3,013,149  
                 
              68,054,804  
 
Consumer Services 2.1%
Apollo Group, Inc., Class A *
    30,371       614,102  
Brinker International, Inc.
    27,400       897,076  
Carnival Corp.
    150,060       5,810,323  
Chipotle Mexican Grill, Inc. *
    10,600       3,254,306  
Choice Hotels International, Inc.
    9,500       342,380  
Darden Restaurants, Inc.
    44,865       2,086,223  
DeVry, Inc.
    20,600       518,502  
Dunkin’ Brands Group, Inc.
    24,700       901,797  
Education Management Corp. (b)*
    8,700       37,671  
H&R Block, Inc.
    84,898       1,933,127  
Hyatt Hotels Corp., Class A *
    20,200       809,414  
International Game Technology
    81,126       1,246,907  
Las Vegas Sands Corp.
    120,063       6,633,481  
LIFE TIME FITNESS, Inc. *
    14,400       730,512  
Marriott International, Inc., Class A
    85,075       3,401,299  
McDonald’s Corp.
    337,136       32,125,689  
MGM Resorts International *
    121,387       1,550,112  
Panera Bread Co., Class A *
    8,600       1,374,366  
Penn National Gaming, Inc. *
    22,660       1,102,636  
Royal Caribbean Cruises Ltd.
    48,091       1,740,894  
Service Corp. International
    77,500       1,157,075  
Six Flags Entertainment Corp.
    18,700       1,176,978  
Sotheby’s
    23,000       826,160  
Starbucks Corp.
    246,627       13,840,707  
Starwood Hotels & Resorts Worldwide, Inc.
    65,342       4,012,652  
The Wendy’s Co.
    100,600       517,084  
Weight Watchers International, Inc. (b)
    9,029       482,781  
Wyndham Worldwide Corp.
    45,017       2,511,498  
Wynn Resorts Ltd.
    27,042       3,386,199  
Yum! Brands, Inc.
    152,876       9,927,767  
                 
              104,949,718  
 
Diversified Financials 6.3%
Affiliated Managers Group, Inc. *
    16,259       2,340,158  
American Capital Ltd. *
    115,500       1,543,080  
American Express Co.
    329,677       19,388,304  
Ameriprise Financial, Inc.
    71,457       4,739,028  
Ares Capital Corp.
    84,200       1,508,022  
Bank of America Corp.
    3,602,541       40,780,764  
BlackRock, Inc.
    42,965       10,151,770  
Capital One Financial Corp.
    193,353       10,889,641  
CBOE Holdings, Inc.
    30,600       1,036,728  
Citigroup, Inc.
    980,256       41,327,593  
CME Group, Inc.
    103,780       6,002,635  
Credit Acceptance Corp. *
    3,200       318,624  
Discover Financial Services
    173,524       6,661,586  
E*TRADE Financial Corp. *
    86,290       915,537  
Eaton Vance Corp.
    39,084       1,414,841  
Franklin Resources, Inc.
    46,586       6,376,692  
IntercontinentalExchange, Inc. *
    24,689       3,425,599  
Invesco Ltd.
    143,790       3,918,278  
Jefferies Group, Inc.
    41,252       822,152  
JPMorgan Chase & Co.
    1,274,778       59,978,305  
Lazard Ltd., Class A
    40,900       1,417,185  
Legg Mason, Inc.
    42,314       1,169,982  
Leucadia National Corp.
    67,764       1,724,594  
LPL Financial Holdings, Inc.
    13,900       462,870  
Moody’s Corp.
    66,426       3,641,473  
Morgan Stanley
    455,048       10,397,847  
MSCI, Inc. *
    40,550       1,368,157  
Northern Trust Corp.
    74,276       3,822,986  
NYSE Euronext
    79,400       2,744,858  
Raymond James Financial, Inc.
    34,749       1,550,848  
SEI Investments Co.
    42,148       1,136,310  
SLM Corp.
    157,824       2,665,647  
State Street Corp.
    161,450       8,984,692  
Stifel Financial Corp. *
    15,000       552,750  
T. Rowe Price Group, Inc.
    85,950       6,141,128  
TD Ameritrade Holding Corp.
    71,931       1,394,742  
The Bank of New York Mellon Corp.
    391,096       10,622,167  
The Charles Schwab Corp. (a)
    367,065       6,067,584  
The Goldman Sachs Group, Inc.
    147,632       21,828,868  
The McGraw-Hill Cos., Inc.
    94,736       5,449,215  
The NASDAQ OMX Group, Inc.
    43,337       1,227,304  
Waddell & Reed Financial, Inc., Class A
    29,000       1,151,300  
                 
              319,061,844  
 
Energy 10.6%
Alpha Natural Resources, Inc. *
    74,713       661,957  
Anadarko Petroleum Corp.
    166,148       13,295,163  
Apache Corp.
    129,500       10,846,920  
Apco Oil & Gas International, Inc.
    3,100       40,393  
Arch Coal, Inc.
    72,000       512,640  
Atwood Oceanics, Inc. *
    18,900       997,353  
Baker Hughes, Inc.
    148,406       6,636,716  
Berry Petroleum Co., Class A
    15,500       570,710  
Cabot Oil & Gas Corp.
    71,448       3,771,025  
Cameron International Corp. *
    83,400       5,280,054  
CARBO Ceramics, Inc. (b)
    6,700       536,737  
Chesapeake Energy Corp.
    176,097       3,553,637  
Chevron Corp.
    655,937       75,531,145  
Cimarex Energy Co.
    29,115       1,859,284  
Cobalt International Energy, Inc. *
    59,900       1,450,179  
Concho Resources, Inc. *
    35,500       3,238,310  
ConocoPhillips
    405,966       23,546,028  
CONSOL Energy, Inc.
    77,098       2,416,251  
Continental Resources, Inc. *
    19,000       1,579,280  
Core Laboratories N.V.
    15,900       2,029,476  
CVR Energy, Inc. *
    4,300       252,625  
Denbury Resources, Inc. *
    135,108       2,517,062  
Devon Energy Corp.
    123,082       7,039,060  
Diamond Offshore Drilling, Inc.
    23,629       1,774,302  
Dresser-Rand Group, Inc. *
    25,600       1,562,880  
Dril-Quip, Inc. *
    11,500       932,535  
Energen Corp.
    24,496       1,179,237  
Energy XXI (Bermuda) Ltd.
    26,000       814,320  
EOG Resources, Inc.
    89,452       11,179,711  
EQT Corp.
    50,800       3,018,028  
Exxon Mobil Corp.
    1,528,963       137,560,801  
 
 
 
 3

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
FMC Technologies, Inc. *
    81,068       3,838,570  
Halliburton Co.
    312,888       12,728,284  
Helmerich & Payne, Inc.
    36,392       2,341,461  
Hess Corp.
    96,523       6,482,485  
HollyFrontier Corp.
    65,300       3,409,966  
Key Energy Services, Inc. *
    51,300       417,069  
Kinder Morgan, Inc.
    213,517       7,998,347  
Lufkin Industries, Inc.
    10,400       602,264  
Marathon Oil Corp.
    231,396       7,777,220  
Marathon Petroleum Corp.
    111,800       8,296,678  
McDermott International, Inc. *
    78,212       951,840  
McMoRan Exploration Co. *
    37,900       599,199  
Murphy Oil Corp.
    61,244       3,645,243  
Nabors Industries Ltd. *
    97,788       1,630,126  
National Oilwell Varco, Inc.
    140,626       10,426,012  
Newfield Exploration Co. *
    45,066       1,329,447  
Noble Corp.
    85,800       3,474,900  
Noble Energy, Inc.
    59,661       6,430,859  
Oasis Petroleum, Inc. *
    20,100       721,188  
Occidental Petroleum Corp.
    270,716       23,896,101  
Oceaneering International, Inc.
    36,800       2,326,128  
Oil States International, Inc. *
    17,400       1,349,892  
Patterson-UTI Energy, Inc.
    52,521       1,068,277  
Peabody Energy Corp.
    92,121       2,316,843  
Pioneer Natural Resources Co.
    41,611       4,890,957  
Plains Exploration & Production Co. *
    43,757       2,089,397  
QEP Resources, Inc.
    60,200       1,766,870  
Range Resources Corp.
    55,128       3,702,948  
Rosetta Resources, Inc. *
    18,000       954,360  
Rowan Cos. plc, Class A *
    42,483       1,464,814  
RPC, Inc. (b)
    21,900       327,843  
SandRidge Energy, Inc. (b)*
    106,534       754,261  
Schlumberger Ltd.
    443,647       34,626,648  
SEACOR Holdings, Inc.
    7,500       682,275  
SM Energy Co.
    21,713       1,262,828  
Southwestern Energy Co. *
    118,088       4,050,418  
Spectra Energy Corp.
    221,121       6,142,741  
Superior Energy Services, Inc. *
    53,947       1,347,057  
Tesoro Corp.
    48,412       2,357,180  
The Williams Cos., Inc.
    225,921       7,918,531  
Tidewater, Inc.
    17,668       868,736  
Transocean Ltd.
    121,900       6,912,949  
Ultra Petroleum Corp. *
    51,912       945,837  
Unit Corp. *
    14,100       678,633  
Valero Energy Corp.
    184,320       8,060,314  
Weatherford International Ltd. *
    257,900       3,442,965  
Whiting Petroleum Corp. *
    39,800       1,893,684  
World Fuel Services Corp.
    24,500       1,056,195  
WPX Energy, Inc. *
    66,800       1,004,004  
                 
              539,444,663  
 
Food & Staples Retailing 2.1%
Casey’s General Stores, Inc.
    12,900       706,017  
Costco Wholesale Corp.
    143,559       14,691,828  
CVS Caremark Corp.
    424,211       21,719,603  
Harris Teeter Supermarkets, Inc.
    16,800       697,032  
PriceSmart, Inc.
    6,200       477,462  
Safeway, Inc. (b)
    81,297       1,564,968  
Sysco Corp.
    193,130       6,135,740  
The Fresh Market, Inc. *
    13,900       679,571  
The Kroger Co.
    169,113       4,684,430  
United Natural Foods, Inc. *
    16,600       896,068  
Wal-Mart Stores, Inc.
    561,827       39,299,799  
Walgreen Co.
    289,069       11,551,197  
Whole Foods Market, Inc.
    58,316       5,612,915  
                 
              108,716,630  
 
Food, Beverage & Tobacco 5.3%
Altria Group, Inc.
    679,505       22,885,728  
Archer-Daniels-Midland Co.
    219,605       6,265,331  
Beam, Inc.
    52,828       3,240,469  
Brown-Forman Corp., Class B
    51,480       3,330,756  
Bunge Ltd.
    49,492       3,942,533  
Campbell Soup Co.
    60,958       2,237,768  
Coca-Cola Enterprises, Inc.
    91,472       3,189,629  
ConAgra Foods, Inc.
    136,097       4,449,011  
Constellation Brands, Inc., Class A *
    51,132       1,654,632  
Dr Pepper Snapple Group, Inc.
    67,720       3,052,140  
Flowers Foods, Inc.
    37,950       1,020,096  
General Mills, Inc.
    218,800       9,176,472  
Green Mountain Coffee Roasters, Inc. (b)*
    44,200       2,012,426  
H.J. Heinz Co.
    104,778       6,352,690  
Hillshire Brands Co.
    40,400       1,251,592  
Hormel Foods Corp.
    46,894       1,623,001  
Ingredion, Inc.
    25,800       1,704,606  
Kellogg Co.
    79,931       4,675,963  
Lorillard, Inc.
    132,000       5,157,240  
McCormick & Co., Inc. - Non Voting Shares
    44,954       2,802,882  
Mead Johnson Nutrition Co.
    69,200       5,259,200  
Molson Coors Brewing Co., Class B
    53,572       2,420,383  
Mondelez International, Inc., Class A
    591,564       16,439,564  
Monster Beverage Corp. *
    51,600       2,471,640  
PepsiCo, Inc.
    520,285       37,902,762  
Philip Morris International, Inc.
    558,865       49,269,538  
Reynolds American, Inc.
    111,268       4,893,567  
Smithfield Foods, Inc. *
    43,035       1,003,146  
The Coca-Cola Co.
    1,294,248       48,197,795  
The Hershey Co.
    48,764       3,874,300  
The JM Smucker Co.
    35,801       3,173,043  
TreeHouse Foods, Inc. *
    12,200       645,746  
Tyson Foods, Inc., Class A
    99,359       2,197,821  
                 
              267,773,470  
 
Health Care Equipment & Services 4.2%
Abbott Laboratories
    530,046       17,957,959  
Accretive Health, Inc. (b)*
    12,700       163,957  
Aetna, Inc.
    110,377       5,323,483  
Allscripts Healthcare Solutions, Inc. *
    64,100       710,228  
AmerisourceBergen Corp.
    76,520       3,471,712  
athenahealth, Inc. *
    12,000       1,037,640  
Baxter International, Inc.
    184,225       12,497,824  
Becton, Dickinson & Co.
    67,465       5,669,759  
Boston Scientific Corp. *
    460,607       3,440,734  
Brookdale Senior Living, Inc. *
    34,900       942,649  
 
 
 
4 

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
C.R. Bard, Inc.
    26,500       2,704,855  
Cardinal Health, Inc.
    111,710       4,894,015  
CareFusion Corp. *
    76,400       2,371,456  
Centene Corp. *
    17,100       738,036  
Cerner Corp. *
    49,252       4,065,753  
Cigna Corp.
    97,054       5,662,130  
Coventry Health Care, Inc.
    42,362       1,941,450  
Covidien plc
    161,500       10,067,910  
DaVita HealthCare Partners, Inc. *
    26,725       3,084,332  
DENTSPLY International, Inc.
    48,100       2,008,656  
Edwards Lifesciences Corp. *
    38,792       3,488,565  
Express Scripts Holding Co. *
    270,689       14,460,206  
HCA Holdings, Inc.
    53,400       2,010,510  
Health Net, Inc. *
    28,200       767,040  
Henry Schein, Inc. *
    30,719       2,652,278  
HMS Holdings Corp. *
    28,900       787,814  
Hologic, Inc. *
    89,470       2,132,965  
Humana, Inc.
    51,991       3,866,051  
IDEXX Laboratories, Inc. *
    19,098       1,818,321  
Intuitive Surgical, Inc. *
    13,095       7,521,506  
Laboratory Corp. of America Holdings *
    32,022       2,865,969  
McKesson Corp.
    78,947       8,307,593  
MEDNAX, Inc. *
    16,654       1,424,916  
Medtronic, Inc.
    340,568       15,870,469  
Omnicare, Inc.
    38,833       1,512,545  
Patterson Cos., Inc.
    29,800       1,076,674  
Quality Systems, Inc.
    13,600       248,064  
Quest Diagnostics, Inc.
    53,647       3,108,844  
ResMed, Inc.
    49,616       2,173,181  
Sirona Dental Systems, Inc. *
    18,900       1,256,283  
St. Jude Medical, Inc.
    101,655       4,137,359  
Stryker Corp.
    98,054       6,143,083  
Teleflex, Inc.
    13,846       1,038,450  
Tenet Healthcare Corp. *
    36,925       1,433,798  
The Cooper Cos., Inc.
    16,200       1,641,870  
UnitedHealth Group, Inc.
    345,192       19,058,050  
Universal Health Services, Inc., Class B
    27,874       1,578,783  
Varian Medical Systems, Inc. *
    38,271       2,703,846  
WellCare Health Plans, Inc. *
    14,600       740,366  
WellPoint, Inc.
    101,523       6,580,721  
Zimmer Holdings, Inc.
    58,012       4,327,695  
                 
              215,488,353  
 
Household & Personal Products 2.2%
Avon Products, Inc.
    146,436       2,486,484  
Church & Dwight Co., Inc.
    48,594       2,808,247  
Colgate-Palmolive Co.
    149,027       16,001,029  
Energizer Holdings, Inc.
    22,700       1,975,127  
Herbalife Ltd. (b)
    34,218       1,242,798  
Kimberly-Clark Corp.
    131,204       11,744,070  
Nu Skin Enterprises, Inc., Class A
    18,400       779,424  
The Clorox Co.
    41,725       3,271,657  
The Estee Lauder Cos., Inc., Class A
    81,468       4,963,845  
The Procter & Gamble Co.
    920,719       69,201,240  
                 
              114,473,921  
 
Insurance 4.3%
ACE Ltd.
    114,500       9,770,285  
Aflac, Inc.
    158,713       8,421,312  
Alleghany Corp. *
    5,786       2,086,374  
Allied World Assurance Co. Holdings AG
    13,000       1,102,790  
Alterra Capital Holdings Ltd.
    30,500       929,335  
American Financial Group, Inc.
    26,205       1,115,285  
American International Group, Inc. *
    495,076       18,728,725  
Aon plc
    105,703       6,103,291  
Arch Capital Group Ltd. *
    45,600       2,116,752  
Arthur J. Gallagher & Co.
    38,520       1,423,314  
Assurant, Inc.
    24,592       940,398  
Assured Guaranty Ltd.
    62,000       1,124,060  
Axis Capital Holdings Ltd.
    37,362       1,429,844  
Berkshire Hathaway, Inc., Class B *
    613,012       59,419,253  
Brown & Brown, Inc.
    39,476       1,079,274  
Cincinnati Financial Corp.
    49,617       2,105,745  
CNA Financial Corp.
    9,150       285,022  
Erie Indemnity Co., Class A
    8,285       591,052  
Everest Re Group Ltd.
    18,220       2,110,058  
Fidelity National Financial, Inc., Class A
    74,569       1,871,682  
Genworth Financial, Inc., Class A *
    166,939       1,530,831  
Hartford Financial Services Group, Inc.
    140,595       3,486,756  
HCC Insurance Holdings, Inc.
    31,057       1,201,285  
Lincoln National Corp.
    92,559       2,682,360  
Loews Corp.
    103,858       4,504,321  
Markel Corp. *
    3,231       1,538,376  
Marsh & McLennan Cos., Inc.
    182,920       6,490,002  
MBIA, Inc. *
    50,600       435,666  
Mercury General Corp.
    12,335       488,466  
MetLife, Inc.
    365,844       13,660,615  
Old Republic International Corp.
    86,909       990,763  
PartnerRe Ltd.
    19,809       1,737,051  
Principal Financial Group, Inc.
    94,109       2,918,320  
ProAssurance Corp.
    20,800       936,832  
Protective Life Corp.
    28,200       892,248  
Prudential Financial, Inc.
    156,097       9,034,894  
Reinsurance Group of America, Inc.
    25,110       1,441,063  
RenaissanceRe Holdings Ltd.
    17,607       1,507,863  
The Allstate Corp.
    159,498       7,001,962  
The Chubb Corp.
    88,212       7,084,306  
The Progressive Corp.
    190,142       4,276,294  
The Travelers Cos., Inc.
    124,447       9,764,112  
Torchmark Corp.
    32,365       1,803,054  
Unum Group
    88,014       2,051,606  
Validus Holdings Ltd.
    33,709       1,227,345  
W. R. Berkley Corp.
    37,725       1,553,138  
White Mountains Insurance Group Ltd.
    1,813       998,347  
XL Group plc
    98,667       2,735,049  
                 
              216,726,776  
 
Materials 3.9%
Air Products & Chemicals, Inc.
    71,578       6,258,065  
 
 
 
 5

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Airgas, Inc.
    23,251       2,214,425  
Albemarle Corp.
    30,200       1,851,562  
Alcoa, Inc.
    361,920       3,199,373  
Allegheny Technologies, Inc.
    36,152       1,144,211  
Allied Nevada Gold Corp. *
    30,400       720,176  
AptarGroup, Inc.
    22,500       1,159,425  
Ashland, Inc.
    23,300       1,829,283  
Ball Corp.
    49,376       2,198,219  
Bemis Co., Inc.
    35,049       1,250,548  
Cabot Corp.
    21,716       812,830  
Carpenter Technology Corp.
    15,000       784,950  
Celanese Corp., Series A
    53,043       2,486,656  
CF Industries Holdings, Inc.
    21,112       4,838,237  
Cliffs Natural Resources, Inc. (b)
    48,600       1,813,266  
Coeur d’Alene Mines Corp. *
    30,500       661,850  
Compass Minerals International, Inc.
    11,200       806,960  
Crown Holdings, Inc. *
    51,376       1,945,095  
Cytec Industries, Inc.
    13,500       989,550  
Domtar Corp.
    12,400       1,032,052  
E.I. du Pont de Nemours & Co.
    310,117       14,715,052  
Eastman Chemical Co.
    51,762       3,682,866  
Ecolab, Inc.
    86,028       6,228,427  
FMC Corp.
    43,504       2,674,191  
Freeport-McMoRan Copper & Gold, Inc.
    314,830       11,097,757  
Greif, Inc., Class A
    10,500       493,290  
Huntsman Corp.
    64,700       1,140,661  
International Flavors & Fragrances, Inc.
    27,508       1,937,388  
International Paper Co.
    148,607       6,155,302  
Kronos Worldwide, Inc. (b)
    7,500       145,425  
LyondellBasell Industries N.V., Class A
    127,300       8,073,366  
Martin Marietta Materials, Inc.
    15,549       1,535,153  
MeadWestvaco Corp.
    58,683       1,839,712  
Molycorp, Inc. (b)*
    18,800       138,744  
Monsanto Co.
    178,134       18,053,881  
NewMarket Corp.
    3,600       918,576  
Newmont Mining Corp.
    162,928       6,999,387  
Nucor Corp.
    107,676       4,954,173  
Owens-Illinois, Inc. *
    55,877       1,329,873  
Packaging Corp. of America
    33,230       1,277,029  
PPG Industries, Inc. (b)
    49,806       6,866,753  
Praxair, Inc.
    99,128       10,940,757  
Reliance Steel & Aluminum Co.
    25,122       1,625,896  
Rock-Tenn Co., Class A
    23,985       1,893,616  
Rockwood Holdings, Inc.
    26,200       1,433,926  
Royal Gold, Inc.
    21,800       1,627,806  
RPM International, Inc.
    44,600       1,391,966  
Sealed Air Corp.
    65,302       1,222,453  
Sensient Technologies Corp.
    17,000       647,700  
Sigma-Aldrich Corp.
    40,908       3,163,416  
Silgan Holdings, Inc.
    16,700       716,430  
Sonoco Products Co.
    33,970       1,052,730  
Steel Dynamics, Inc.
    74,400       1,131,624  
The Dow Chemical Co.
    398,656       12,836,723  
The Mosaic Co.
    93,795       5,744,944  
The Scotts Miracle-Gro Co., Class A
    14,668       641,285  
The Sherwin-Williams Co.
    27,690       4,489,657  
The Valspar Corp.
    27,446       1,819,121  
United States Steel Corp. (b)
    48,968       1,094,435  
Vulcan Materials Co.
    43,925       2,484,398  
W.R. Grace & Co. *
    24,900       1,787,820  
Walter Energy, Inc.
    21,200       796,060  
Westlake Chemical Corp.
    7,000       643,020  
                 
              197,439,522  
 
Media 3.5%
AMC Networks, Inc., Class A *
    19,500       1,110,915  
Cablevision Systems Corp., Class A
    75,110       1,099,610  
CBS Corp., Class B - Non Voting Shares
    195,205       8,143,953  
Charter Communications, Inc., Class A *
    15,400       1,200,738  
Cinemark Holdings, Inc.
    34,600       973,644  
Clear Channel Outdoor Holdings, Inc., Class A *
    14,500       108,750  
Comcast Corp., Class A
    894,523       34,063,436  
DIRECTV *
    200,625       10,259,962  
Discovery Communications, Inc., Class A *
    81,000       5,619,780  
DISH Network Corp., Class A
    77,372       2,883,654  
Gannett Co., Inc.
    81,054       1,591,090  
John Wiley & Sons, Inc., Class A
    15,480       592,884  
Lamar Advertising Co., Class A *
    20,370       868,577  
Liberty Global, Inc., Class A *
    83,566       5,706,722  
Liberty Media Corp. *
    37,746       4,209,056  
Live Nation Entertainment, Inc. *
    50,300       516,078  
Morningstar, Inc.
    8,150       551,674  
News Corp., Class A
    680,528       18,877,847  
Omnicom Group, Inc.
    89,088       4,835,697  
Scripps Networks Interactive, Class A
    29,100       1,797,507  
Sirius XM Radio, Inc.
    1,096,600       3,443,324  
Starz - Liberty Capital *
    37,746       601,671  
The Interpublic Group of Cos., Inc.
    143,264       1,734,927  
The Madison Square Garden Co., Class A *
    20,800       1,082,016  
The Walt Disney Co.
    591,960       31,894,805  
The Washington Post Co., Class B
    1,654       637,915  
Time Warner Cable, Inc.
    99,136       8,856,810  
Time Warner, Inc.
    313,980       15,862,270  
Viacom Inc., Class B
    156,246       9,429,446  
                 
              178,554,758  
 
Pharmaceuticals, Biotechnology & Life Sciences 7.7%
AbbVie, Inc.
    530,046       19,447,388  
Actavis, Inc. *
    43,200       3,732,048  
Agilent Technologies, Inc.
    118,031       5,285,428  
Alexion Pharmaceuticals, Inc. *
    65,400       6,146,946  
Alkermes plc *
    41,300       951,965  
Allergan, Inc.
    103,762       10,896,048  
Amgen, Inc.
    257,702       22,023,213  
ARIAD Pharmaceuticals, Inc. *
    52,500       1,043,700  
Bio-Rad Laboratories, Inc., Class A *
    6,900       785,151  
Biogen Idec, Inc. *
    79,655       12,432,552  
BioMarin Pharmaceutical, Inc. *
    41,900       2,299,891  
Bristol-Myers Squibb Co.
    561,239       20,283,177  
 
 
 
6 

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Bruker Corp. *
    31,600       533,092  
Celgene Corp. *
    143,220       14,173,051  
Cepheid, Inc. *
    21,800       789,596  
Covance, Inc. *
    17,300       1,154,083  
Cubist Pharmaceuticals, Inc. *
    20,900       899,536  
Dendreon Corp. (b)*
    50,700       298,116  
Eli Lilly & Co.
    341,371       18,328,209  
Endo Health Solutions, Inc. *
    39,728       1,257,788  
Forest Laboratories, Inc. *
    79,346       2,880,260  
Gilead Sciences, Inc. *
    504,344       19,896,371  
Hospira, Inc. *
    56,040       1,912,085  
Illumina, Inc. *
    41,300       2,091,019  
Incyte Corp. (b)*
    42,900       788,502  
Johnson & Johnson
    929,387       68,700,287  
Life Technologies Corp. *
    55,906       3,616,559  
Merck & Co., Inc.
    1,018,118       44,033,604  
Mettler-Toledo International, Inc. *
    10,700       2,274,071  
Mylan, Inc. *
    137,700       3,892,779  
Onyx Pharmaceuticals, Inc. *
    21,200       1,643,424  
PerkinElmer, Inc.
    38,500       1,356,740  
Perrigo Co.
    29,500       2,965,045  
Pfizer, Inc.
    2,469,051       67,355,711  
Questcor Pharmaceuticals, Inc. (b)
    21,300       542,724  
Regeneron Pharmaceuticals, Inc. *
    24,500       4,261,530  
Salix Pharmaceuticals Ltd. *
    15,500       742,450  
Seattle Genetics, Inc. (b)*
    33,600       989,520  
Techne Corp.
    12,563       900,516  
Thermo Fisher Scientific, Inc.
    120,598       8,699,940  
United Therapeutics Corp. *
    17,800       959,242  
Vertex Pharmaceuticals, Inc. *
    73,212       3,278,433  
ViroPharma, Inc. *
    24,000       639,840  
Warner Chilcott plc, Class A
    57,900       820,443  
Waters Corp. *
    27,700       2,536,489  
                 
              390,538,562  
 
Real Estate 3.1%
Alexandria Real Estate Equities, Inc.
    21,100       1,529,750  
American Campus Communities, Inc.
    31,200       1,452,984  
American Tower Corp.
    133,689       10,180,417  
Apartment Investment & Management Co., Class A
    49,418       1,348,123  
AvalonBay Communities, Inc.
    38,349       4,977,317  
BioMed Realty Trust, Inc.
    52,300       1,064,305  
Boston Properties, Inc.
    50,205       5,285,582  
BRE Properties, Inc.
    25,624       1,303,749  
Camden Property Trust
    26,864       1,864,093  
CBL & Associates Properties, Inc.
    50,400       1,083,096  
CBRE Group, Inc., Class A *
    102,237       2,206,274  
DDR Corp.
    79,000       1,310,610  
Digital Realty Trust, Inc.
    41,400       2,811,474  
Douglas Emmett, Inc.
    47,600       1,110,032  
Duke Realty Corp.
    88,237       1,359,732  
EPR Properties
    16,500       773,190  
Equity Lifestyle Properties, Inc.
    13,900       995,240  
Equity One, Inc.
    20,300       458,983  
Equity Residential
    107,872       5,975,030  
Essex Property Trust, Inc.
    11,817       1,817,218  
Extra Space Storage, Inc.
    32,100       1,278,864  
Federal Realty Investment Trust
    21,596       2,285,937  
Forest City Enterprises, Inc., Class A *
    47,200       798,152  
General Growth Properties, Inc.
    152,700       2,980,704  
HCP, Inc.
    151,580       7,031,796  
Health Care REIT, Inc.
    85,221       5,355,288  
Highwoods Properties, Inc.
    24,700       889,200  
Home Properties, Inc.
    16,400       1,008,108  
Hospitality Properties Trust
    41,981       1,058,761  
Host Hotels & Resorts, Inc.
    240,139       4,031,934  
Jones Lang LaSalle, Inc.
    14,800       1,363,672  
Kilroy Realty Corp.
    23,300       1,162,670  
Kimco Realty Corp.
    138,331       2,873,135  
LaSalle Hotel Properties
    28,500       778,050  
Liberty Property Trust
    39,504       1,547,372  
Mack-Cali Realty Corp.
    29,247       794,641  
Mid-America Apartment Communities, Inc.
    13,900       908,643  
National Retail Properties, Inc. (b)
    35,200       1,127,104  
Omega Healthcare Investors, Inc. (b)
    35,100       897,156  
Piedmont Office Realty Trust, Inc., Class A
    58,800       1,136,604  
Plum Creek Timber Co., Inc.
    54,798       2,640,168  
Post Properties, Inc.
    18,100       878,031  
ProLogis, Inc.
    155,780       6,215,622  
Public Storage
    48,309       7,436,204  
Rayonier, Inc.
    41,734       2,246,959  
Realty Income Corp. (b)
    56,300       2,459,184  
Regency Centers Corp.
    30,582       1,523,901  
Senior Housing Properties Trust
    55,300       1,332,177  
Simon Property Group, Inc.
    103,750       16,618,675  
SL Green Realty Corp. (b)
    29,251       2,351,195  
Tanger Factory Outlet Centers, Inc.
    30,900       1,094,478  
Taubman Centers, Inc.
    19,800       1,613,700  
The Macerich Co.
    44,845       2,678,143  
UDR, Inc.
    85,262       2,036,909  
Ventas, Inc.
    100,229       6,644,180  
Vornado Realty Trust REIT
    57,334       4,842,430  
Weingarten Realty Investors
    40,802       1,176,730  
Weyerhaeuser Co.
    182,450       5,495,394  
                 
              157,499,070  
 
Retailing 4.3%
Aaron’s, Inc.
    25,700       762,005  
Abercrombie & Fitch Co., Class A
    28,919       1,445,950  
Advance Auto Parts, Inc.
    24,622       1,810,209  
Amazon.com, Inc. *
    120,941       32,109,836  
American Eagle Outfitters, Inc.
    55,385       1,119,331  
Ascena Retail Group, Inc. *
    45,800       776,310  
AutoNation, Inc. *
    10,166       493,051  
AutoZone, Inc. *
    12,733       4,707,390  
Bed Bath & Beyond, Inc. *
    78,720       4,620,864  
Best Buy Co., Inc.
    86,026       1,398,783  
Big Lots, Inc. *
    22,300       716,945  
CarMax, Inc. *
    77,000       3,035,340  
Dick’s Sporting Goods, Inc.
    32,800       1,560,952  
Dillard’s, Inc., Class A
    11,200       945,392  
Dollar General Corp. *
    85,500       3,951,810  
Dollar Tree, Inc. *
    78,124       3,124,179  
DSW, Inc., Class A
    9,800       655,914  
Expedia, Inc.
    32,204       2,101,311  
 
 
 
 7

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Family Dollar Stores, Inc.
    32,860       1,863,162  
Foot Locker, Inc.
    50,909       1,748,724  
GameStop Corp., Class A (b)
    40,000       928,000  
Genuine Parts Co.
    52,930       3,600,828  
GNC Holdings, Inc., Class A
    26,800       963,192  
Guess?, Inc.
    22,800       617,652  
HomeAway, Inc. *
    2,700       64,719  
HSN, Inc.
    13,700       816,520  
J.C. Penney Co., Inc. (b)
    48,622       988,485  
Kohl’s Corp.
    71,965       3,331,260  
Liberty Interactive Corp., Class A *
    167,108       3,552,716  
Liberty Ventures, Series A *
    8,980       670,177  
Limited Brands, Inc.
    78,823       3,785,081  
LKQ Corp. *
    99,600       2,230,044  
Lowe’s Cos., Inc.
    380,036       14,513,575  
Macy’s, Inc.
    136,276       5,384,265  
Netflix, Inc. *
    18,800       3,106,512  
Nordstrom, Inc.
    50,600       2,794,638  
O’Reilly Automotive, Inc. *
    36,166       3,350,780  
Penske Automotive Group, Inc.
    15,300       503,676  
PetSmart, Inc.
    34,595       2,262,859  
Priceline.com, Inc. *
    16,546       11,341,787  
Rent-A-Center, Inc.
    20,000       713,600  
Ross Stores, Inc.
    76,012       4,537,916  
Sally Beauty Holdings, Inc. *
    53,200       1,411,928  
Sears Holdings Corp. (b)*
    13,094       614,763  
Signet Jewelers Ltd.
    26,900       1,683,402  
Staples, Inc.
    216,770       2,922,060  
Target Corp.
    217,362       13,130,838  
The Buckle, Inc. (b)
    9,200       430,376  
The Gap, Inc.
    101,155       3,305,745  
The Home Depot, Inc.
    503,935       33,723,330  
The TJX Cos., Inc.
    244,290       11,037,022  
Tiffany & Co.
    39,273       2,582,200  
Tractor Supply Co.
    24,200       2,508,814  
TripAdvisor, Inc. *
    37,200       1,721,616  
Ulta Salon, Cosmetics & Fragrance, Inc.
    19,900       1,946,618  
Urban Outfitters, Inc. *
    37,796       1,617,291  
Williams-Sonoma, Inc.
    29,400       1,293,600  
                 
              218,935,343  
 
Semiconductors & Semiconductor Equipment 2.0%
Advanced Micro Devices, Inc. (b)*
    199,031       517,481  
Altera Corp.
    101,969       3,407,804  
Analog Devices, Inc.
    101,274       4,419,597  
Applied Materials, Inc.
    385,589       4,977,954  
Atmel Corp. *
    160,100       1,072,670  
Broadcom Corp., Class A
    174,025       5,647,111  
Cree, Inc. *
    38,900       1,678,535  
Cypress Semiconductor Corp. *
    52,700       541,229  
First Solar, Inc. (b)*
    20,000       563,600  
Freescale Semiconductor Ltd. *
    15,000       216,750  
Intel Corp.
    1,672,380       35,186,875  
KLA-Tencor Corp.
    56,638       3,109,993  
Lam Research Corp. *
    58,419       2,403,358  
Linear Technology Corp.
    77,466       2,836,805  
LSI Corp. *
    191,598       1,348,850  
Marvell Technology Group Ltd.
    160,162       1,481,498  
Maxim Integrated Products, Inc.
    99,200       3,119,840  
Microchip Technology, Inc.
    65,366       2,186,493  
Micron Technology, Inc. *
    335,800       2,538,648  
NVIDIA Corp.
    206,199       2,528,000  
ON Semiconductor Corp. *
    152,900       1,200,265  
Skyworks Solutions, Inc. *
    63,900       1,529,766  
Teradyne, Inc. *
    62,600       1,011,616  
Texas Instruments, Inc.
    380,375       12,582,805  
Xilinx, Inc.
    89,205       3,255,090  
                 
              99,362,633  
 
Software & Services 9.4%
Accenture plc, Class A
    214,100       15,391,649  
Activision Blizzard, Inc.
    130,838       1,490,245  
Adobe Systems, Inc. *
    166,913       6,314,319  
Akamai Technologies, Inc. *
    61,009       2,483,676  
Alliance Data Systems Corp. *
    17,071       2,690,390  
Amdocs Ltd.
    51,600       1,841,604  
ANSYS, Inc. *
    31,400       2,311,040  
Autodesk, Inc. *
    77,072       2,996,559  
Automatic Data Processing, Inc.
    162,751       9,649,507  
Bankrate, Inc. *
    6,800       84,116  
BMC Software, Inc. *
    49,712       2,065,534  
Booz Allen Hamilton Holding Corp.
    11,600       160,776  
Broadridge Financial Solutions, Inc.
    43,100       1,015,867  
CA, Inc.
    115,981       2,878,648  
Cadence Design Systems, Inc. *
    92,587       1,289,737  
Citrix Systems, Inc. *
    63,400       4,638,344  
Cognizant Technology Solutions Corp., Class A *
    100,566       7,862,250  
CommVault Systems, Inc. *
    14,800       1,135,604  
Computer Sciences Corp.
    52,731       2,204,156  
Concur Technologies, Inc. *
    15,850       1,060,365  
DST Systems, Inc.
    11,380       761,777  
eBay, Inc. *
    387,670       21,682,383  
Electronic Arts, Inc. *
    111,481       1,753,596  
Equinix, Inc. *
    16,100       3,468,423  
FactSet Research Systems, Inc.
    12,900       1,193,508  
Fidelity National Information Services, Inc.
    82,508       3,061,872  
Fiserv, Inc. *
    45,289       3,637,160  
FleetCor Technologies, Inc. *
    12,400       742,016  
Fortinet, Inc. *
    44,600       1,052,114  
Gartner, Inc. *
    32,300       1,663,773  
Genpact Ltd.
    44,550       746,212  
Global Payments, Inc.
    26,838       1,322,040  
Google, Inc., Class A *
    89,257       67,450,622  
IAC/InterActiveCorp
    27,930       1,152,112  
Informatica Corp. *
    36,200       1,339,762  
International Business Machines Corp.
    356,140       72,321,350  
Intuit, Inc.
    93,644       5,841,513  
Jack Henry & Associates, Inc.
    29,400       1,219,512  
LinkedIn Corp., Class A *
    22,600       2,797,654  
MasterCard, Inc., Class A
    35,877       18,598,637  
MICROS Systems, Inc. *
    27,200       1,252,016  
Microsoft Corp.
    2,540,238       69,780,338  
NetSuite, Inc. *
    7,600       533,748  
NeuStar, Inc., Class A *
    22,200       1,002,108  
Nuance Communications, Inc. *
    79,800       1,919,190  
Oracle Corp.
    1,260,510       44,760,710  
 
 
 
8 

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Paychex, Inc.
    109,628       3,577,162  
PTC, Inc. *
    39,700       920,246  
QLIK Technologies, Inc. *
    24,700       548,587  
Rackspace Hosting, Inc. *
    35,200       2,652,320  
Red Hat, Inc. *
    65,583       3,643,791  
Rovi Corp. *
    37,400       646,646  
SAIC, Inc.
    93,900       1,136,190  
Salesforce.com, Inc. *
    43,810       7,541,015  
Solarwinds, Inc. *
    20,600       1,121,052  
Solera Holdings, Inc.
    24,100       1,320,921  
Symantec Corp. *
    237,489       5,170,136  
Synopsys, Inc. *
    48,700       1,628,528  
Teradata Corp. *
    56,944       3,795,887  
The Western Union Co.
    192,140       2,734,152  
TIBCO Software, Inc. *
    55,500       1,300,920  
Total System Services, Inc.
    55,100       1,281,075  
VeriFone Systems, Inc. *
    35,800       1,242,976  
VeriSign, Inc. *
    54,105       2,348,698  
Visa, Inc., Class A
    174,700       27,586,877  
VMware, Inc., Class A *
    28,900       2,210,272  
WEX, Inc. *
    13,100       1,029,791  
Yahoo! Inc. *
    341,379       6,701,270  
                 
              480,757,044  
 
Technology Hardware & Equipment 6.4%
Acme Packet, Inc. *
    19,200       464,064  
ADTRAN, Inc. (b)
    22,400       452,480  
Amphenol Corp., Class A
    52,320       3,535,262  
Anixter International, Inc.
    9,300       625,704  
Apple, Inc.
    315,460       143,632,093  
Arrow Electronics, Inc. *
    38,000       1,459,960  
Aruba Networks, Inc. *
    36,400       838,656  
Avnet, Inc. *
    42,546       1,504,427  
AVX Corp.
    16,150       183,948  
Brocade Communications Systems, Inc. *
    154,700       884,884  
Cisco Systems, Inc.
    1,780,415       36,623,137  
Corning, Inc.
    494,263       5,931,156  
Dell, Inc.
    491,849       6,512,081  
Diebold, Inc.
    21,300       627,072  
Dolby Laboratories, Inc., Class A
    17,400       562,194  
EchoStar Corp., Class A *
    13,254       482,180  
EMC Corp. *
    699,524       17,215,286  
F5 Networks, Inc. *
    27,000       2,831,760  
FLIR Systems, Inc.
    53,000       1,259,810  
Fusion-io, Inc. (b)*
    22,800       398,544  
Harris Corp.
    39,396       1,820,095  
Hewlett-Packard Co.
    650,168       10,734,274  
Ingram Micro, Inc., Class A *
    53,851       979,011  
IPG Photonics Corp.
    9,400       615,512  
Jabil Circuit, Inc.
    62,300       1,178,093  
JDS Uniphase Corp. *
    77,900       1,130,329  
Juniper Networks, Inc. *
    178,894       4,003,648  
Lexmark International, Inc., Class A (b)
    24,459       588,484  
Loral Space & Communications, Inc.
    4,200       246,498  
Molex, Inc.
    46,621       1,266,226  
Motorola Solutions, Inc.
    90,112       5,261,640  
National Instruments Corp.
    31,200       886,080  
NCR Corp. *
    53,544       1,486,917  
NetApp, Inc. *
    121,900       4,388,400  
Polycom, Inc. *
    60,200       664,006  
QUALCOMM, Inc.
    569,378       37,596,029  
Riverbed Technology, Inc. *
    52,200       1,012,680  
SanDisk Corp. *
    81,758       4,087,082  
Seagate Technology plc
    115,137       3,912,355  
TE Connectivity Ltd.
    144,300       5,610,384  
Tech Data Corp. *
    13,900       707,649  
Trimble Navigation Ltd. *
    42,000       2,625,000  
ViaSat, Inc. *
    14,400       553,104  
Western Digital Corp.
    73,112       3,436,264  
Xerox Corp.
    439,645       3,521,556  
                 
              324,336,014  
 
Telecommunication Services 2.8%
AT&T, Inc.
    1,904,777       66,267,192  
CenturyLink, Inc.
    210,011       8,494,945  
Crown Castle International Corp. *
    99,427       7,011,592  
Frontier Communications Corp. (b)
    338,406       1,546,515  
Level 3 Communications, Inc. *
    46,700       1,112,394  
MetroPCS Communications, Inc. *
    99,800       1,000,994  
NII Holdings, Inc. (b)*
    57,641       403,487  
SBA Communications Corp., Class A *
    41,300       2,876,958  
Sprint Nextel Corp. *
    1,018,657       5,735,039  
Telephone & Data Systems, Inc.
    30,811       779,210  
tw telecom, Inc. *
    50,800       1,403,604  
United States Cellular Corp. *
    4,900       186,396  
Verizon Communications, Inc.
    957,057       41,737,256  
Windstream Corp. (b)
    198,148       1,929,962  
                 
              140,485,544  
 
Transportation 1.9%
Alaska Air Group, Inc. *
    24,200       1,116,346  
C.H. Robinson Worldwide, Inc.
    51,948       3,436,360  
CSX Corp.
    340,826       7,508,397  
Delta Air Lines, Inc. *
    288,100       4,001,709  
Expeditors International of Washington, Inc.
    72,098       3,093,004  
FedEx Corp.
    96,528       9,792,766  
Genesee & Wyoming, Inc., Class A *
    14,700       1,243,326  
Hertz Global Holdings, Inc. *
    102,000       1,864,560  
J.B. Hunt Transport Services, Inc.
    30,591       2,057,857  
Kansas City Southern
    37,600       3,500,936  
Kirby Corp. *
    18,900       1,335,285  
Landstar System, Inc.
    15,900       906,936  
Norfolk Southern Corp.
    106,886       7,361,239  
Old Dominion Freight Line, Inc. *
    24,000       894,720  
Ryder System, Inc.
    16,964       963,216  
Southwest Airlines Co.
    249,888       2,801,244  
Union Pacific Corp.
    157,762       20,739,393  
United Continental Holdings, Inc. *
    112,582       2,718,855  
United Parcel Service, Inc., Class B
    240,335       19,056,162  
                 
              94,392,311  
 
Utilities 3.5%
AGL Resources, Inc.
    40,487       1,692,357  
 
 
 
 9

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
Alliant Energy Corp.
    37,400       1,714,416  
Ameren Corp.
    83,085       2,695,277  
American Electric Power Co., Inc.
    164,171       7,435,305  
American Water Works Co., Inc.
    59,700       2,285,316  
Aqua America, Inc.
    47,134       1,283,459  
Atmos Energy Corp.
    30,718       1,147,624  
Calpine Corp. *
    130,200       2,568,846  
CenterPoint Energy, Inc.
    144,811       2,959,937  
Cleco Corp.
    20,600       880,650  
CMS Energy Corp.
    85,733       2,203,338  
Consolidated Edison, Inc.
    95,306       5,421,005  
Dominion Resources, Inc.
    189,108       10,232,634  
DTE Energy Co.
    57,597       3,646,466  
Duke Energy Corp.
    234,695       16,132,934  
Edison International
    110,754       5,337,235  
Entergy Corp.
    59,862       3,867,085  
Exelon Corp.
    281,219       8,841,525  
FirstEnergy Corp.
    136,391       5,522,472  
Great Plains Energy, Inc.
    52,000       1,112,800  
Hawaiian Electric Industries, Inc.
    32,648       880,517  
IDACORP, Inc.
    16,900       784,329  
Integrys Energy Group, Inc.
    26,455       1,446,824  
ITC Holdings Corp.
    17,400       1,409,400  
MDU Resources Group, Inc.
    64,217       1,497,540  
National Fuel Gas Co.
    28,047       1,525,757  
New Jersey Resources Corp.
    14,100       592,623  
NextEra Energy, Inc.
    139,908       10,080,371  
NiSource, Inc.
    103,880       2,807,876  
Northeast Utilities
    107,012       4,358,599  
NRG Energy, Inc.
    108,030       2,592,720  
NV Energy, Inc.
    80,200       1,518,186  
OGE Energy Corp.
    33,380       1,959,740  
ONEOK, Inc.
    70,124       3,296,529  
Pepco Holdings, Inc.
    76,274       1,488,868  
PG&E Corp.
    144,737       6,171,586  
Piedmont Natural Gas Co., Inc.
    24,500       778,120  
Pinnacle West Capital Corp.
    37,087       1,979,704  
PPL Corp.
    196,661       5,956,862  
Public Service Enterprise Group, Inc.
    172,072       5,365,205  
Questar Corp.
    60,420       1,403,557  
SCANA Corp.
    44,531       2,084,496  
Sempra Energy
    76,278       5,724,664  
TECO Energy, Inc.
    59,217       1,052,286  
The AES Corp.
    196,902       2,134,418  
The Southern Co.
    291,318       12,884,995  
UGI Corp.
    39,248       1,383,100  
Vectren Corp.
    27,800       877,368  
Westar Energy, Inc.
    39,800       1,196,786  
WGL Holdings, Inc.
    17,500       733,775  
Wisconsin Energy Corp.
    78,636       3,100,617  
Xcel Energy, Inc.
    164,909       4,581,172  
                 
              180,629,271  
                 
Total Common Stock
(Cost $1,947,578,898)     5,066,303,107  
         
                 
                 
 
 Other Investment Company 0.2% of net assets
 
Money Market Fund 0.2%
State Street Institutional U.S. Government Money Market Fund
    11,409,506       11,409,506  
                 
Total Other Investment Company
(Cost $11,409,506)     11,409,506  
         
                 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Short-Term Investment 0.1% of net assets
 
U.S. Treasury Obligation 0.1%
U.S. Treasury Bill
0.04%, 03/14/13 (c)(d)
    1,348,000       1,347,946  
                 
Total Short-Term Investment
(Cost $1,347,946)     1,347,946  
         
 
End of Investments.
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Collateral Invested for Securities on Loan 0.7% of net assets
                 
                 
State Street Institutional U.S. Government Money Market Fund
    38,051,098       38,051,098  
                 
Total Collateral Invested for Securities on Loan
(Cost $38,051,098)     38,051,098  
         
 
End of Collateral Invested for Securities on Loan
 
At 01/31/13, tax basis cost of the fund’s investments was $1,937,260,145 and the unrealized appreciation and depreciation were $3,205,585,524 and ($63,785,110), respectively, with a net unrealized appreciation of $3,141,800,414.
 
* Non-income producing security.
(a) Issuer is affiliated with the fund’s adviser.
(b) All or a portion of this security is on loan.
(c) All or a portion of this security is held as collateral for open futures contracts.
(d) The rate shown is the purchase yield.
 
     
REIT —
  Real Estate Investment Trust
 
 
 
10 

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
In addition to the above, the fund held the following at 01/31/13.
 
                         
        Contract
 		  Unrealized
    Number of
 		  Value
 		  Gains
    Contracts   ($)   ($)
 
 Futures Contract
S&P 500 Index, e-mini, Long, expires 03/15/13
    160       11,946,400       524,120  
 
 
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:
 
  •  Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported at halfway between the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
 
  •  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.
 
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.
 
 
 
 11

 

 
 Schwab 1000 Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  •  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.
 
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 January 31, 2013:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Significant Other
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Common Stock1
    $5,066,303,107       $—       $—       $5,066,303,107  
Other Investment Company1
    11,409,506       —       —       11,409,506  
Short-Term Investment1
    —       1,347,946       —       1,347,946  
                                 
Total
    $5,077,712,613       $1,347,946       $—       $5,079,060,559  
                                 
Other Financial Instruments
                               
Collateral Invested for Securities on Loan
    $38,051,098       $—       $—       $38,051,098  
Futures Contract2
    524,120       —       —       524,120  
 
     
1
  As categorized in Portfolio Holdings.
2
  Futures contracts are not included in Investments and are valued at unrealized appreciation or depreciation.
 
The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
 
                                                                 
    Balance
 		      Change in
 		                  Balance
    as of
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
    October 31,
 		  Gains
 		  Gains
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  January 31,
Investments in Securities
 
2012
 
(Losses)
 
(Losses)
 
Purchases
 
Sales
 
in
 
out
 
2013
 
Common Stock
    $64,997       $3,754       ($4,047 )             ($64,704 )     $—       $—       $—  
                                                                 
Total
    $64,997       $3,754       ($4,047 )     $$—       ($64,704 )     $—       $—       $—  
                                                                 
 
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 January 31, 2013.
 
On January 31, 2013, the fund had open equity index futures contracts (“futures”). The fund invests in futures to equitize available cash. The primary risk associated with investing in futures is market risk.
 
REG46851JAN13
 
 
 
12 

 

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 — Schwab 1000 Index Fund
         
By:
  /s/ Marie Chandoha    
 
       
 
  Marie Chandoha    
 
  Chief Executive Officer    
Date: 03/21/2013
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: 03/21/2013
         
By:
  /s/ George Pereira    
 
       
 
  George Pereira    
 
  Principal Financial Officer    
Date: 03/21/2013