UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-6200

Schwab Investments

(Exact name of registrant as specified in charter)

211 Main Street, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

Marie Chandoha
Schwab Investments
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 636-7000

Date of fiscal year end: August 31

Date of reporting period: May 31, 2013

Item 1. Schedule of Investments.

Schwab Investments
Schwab Short-Term Bond Market Fund™

Portfolio Holdings as of May 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.

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				($)		($)
	70	.0%	U.S. Government and Government Agencies		293,906,331		295,241,034
	7	.2%	Foreign Securities		30,003,695		30,375,414
	22	.2%	Corporate Bonds		92,474,331		93,648,670
	0	.2%	Municipal Bonds		694,293		705,497
	1	.0%	Other Investment Company		4,024,711		4,024,711
	100	.6%	Total Investments		421,103,361		423,995,326
	0	.1%	Collateral Invested for Securities on Loan		278,240		278,240
	(0	.7)%	Other Assets and Liabilities, Net				(2,752,153	)
	100	.0%	Net Assets				421,521,413

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
U.S. Government and Government Agencies 70.0% of net assets
U.S. Government Agency Securities 9.2%
Fannie Mae
0.75%, 12/19/14		1,750,000		1,762,360
0.38%, 03/16/15		4,500,000		4,505,215
0.40%, 07/30/15 (b)		2,000,000		1,998,150
0.50%, 09/28/15		500,000		501,184
2.38%, 04/11/16		3,250,000		3,422,156
1.25%, 09/28/16		1,000,000		1,019,755
1.20%, 07/17/17 (b)		1,500,000		1,489,843
0.88%, 08/28/17		1,000,000		994,782
0.88%, 10/26/17		1,500,000		1,490,142
Federal Farm Credit Bank
0.37%, 06/11/14		750,000		750,049
0.55%, 08/17/15		1,000,000		1,001,430
4.88%, 12/16/15		150,000		166,811
Federal Home Loan Bank
5.50%, 08/13/14		2,000,000		2,128,052
0.33%, 08/15/14 (b)		1,000,000		1,000,395
0.25%, 02/20/15		1,500,000		1,498,296
4.88%, 05/17/17		1,500,000		1,734,030
1.00%, 06/21/17		1,000,000		1,004,015
Freddie Mac
0.50%, 04/17/15		1,000,000		1,003,582
1.75%, 09/10/15		500,000		515,470
0.45%, 01/15/16 (b)		1,000,000		999,010
2.50%, 05/27/16		2,000,000		2,112,684
2.00%, 08/25/16		2,000,000		2,087,604
1.00%, 03/08/17		1,000,000		1,006,685
1.00%, 06/29/17		1,750,000		1,751,806
2.00%, 08/14/17 (b)		2,000,000		2,005,944
0.88%, 03/07/18		1,000,000		989,175
				38,938,625
U.S. Treasury Obligations 60.8%
U.S. Treasury Bond
10.63%, 08/15/15		2,000,000		2,450,938
U.S. Treasury Notes
0.25%, 06/30/14		2,500,000		2,502,638
2.63%, 06/30/14		1,250,000		1,283,106
0.63%, 07/15/14		1,000,000		1,005,117
0.13%, 07/31/14		10,000,000		9,995,710
2.63%, 07/31/14		1,000,000		1,028,438
0.25%, 08/31/14		1,750,000		1,751,642
2.38%, 08/31/14		2,475,000		2,542,387
0.25%, 09/15/14		14,000,000		14,011,494
0.25%, 09/30/14		3,000,000		3,002,463
2.38%, 09/30/14		1,600,000		1,646,187
2.38%, 10/31/14		1,000,000		1,030,274
4.25%, 11/15/14		3,000,000		3,174,258
0.25%, 11/30/14		2,000,000		2,000,860
2.13%, 11/30/14		2,000,000		2,056,406
0.25%, 12/15/14		3,500,000		3,501,096
0.13%, 12/31/14		4,000,000		3,993,596
2.63%, 12/31/14		2,500,000		2,594,043
2.25%, 01/31/15		5,000,000		5,165,040
0.25%, 02/15/15		6,000,000		5,997,894
0.38%, 03/15/15		2,400,000		2,404,032
0.38%, 04/15/15		4,600,000		4,607,010
2.50%, 04/30/15		5,500,000		5,730,312
0.25%, 05/15/15		6,000,000		5,994,144
2.13%, 05/31/15		2,500,000		2,590,040
0.38%, 06/15/15		1,250,000		1,251,465
1.88%, 06/30/15		2,350,000		2,425,273
0.25%, 07/15/15		10,000,000		9,982,810
1.75%, 07/31/15		750,000		772,793
0.25%, 08/15/15		2,000,000		1,995,938
1.25%, 08/31/15		4,000,000		4,080,624
0.25%, 09/15/15		4,500,000		4,488,399
1.25%, 09/30/15		1,000,000		1,020,469
0.25%, 10/15/15		2,000,000		1,994,062
1.25%, 10/31/15		3,000,000		3,062,109
1.38%, 11/30/15		4,000,000		4,096,252
0.25%, 12/15/15		4,000,000		3,983,440
2.13%, 12/31/15		1,750,000		1,826,699
0.38%, 01/15/16		4,000,000		3,994,376
2.00%, 01/31/16		335,000		348,793
0.38%, 02/15/16		3,000,000		2,993,907
2.13%, 02/29/16		1,000,000		1,045,469
2.63%, 02/29/16		750,000		794,180
0.38%, 03/15/16		1,000,000		997,422
2.25%, 03/31/16		1,000,000		1,049,766
2.38%, 03/31/16		1,500,000		1,579,922
0.25%, 04/15/16		1,200,000		1,191,937
2.00%, 04/30/16		2,000,000		2,086,094
0.25%, 05/15/16		5,000,000		4,963,280

1

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
1.75%, 05/31/16		4,000,000		4,145,312
3.25%, 05/31/16		1,000,000		1,081,016
1.50%, 06/30/16		3,500,000		3,601,993
1.50%, 07/31/16		1,100,000		1,132,141
1.00%, 08/31/16		4,500,000		4,558,711
3.00%, 08/31/16		1,000,000		1,077,344
1.00%, 09/30/16		2,000,000		2,025,470
3.13%, 10/31/16		4,500,000		4,878,985
4.63%, 11/15/16		3,500,000		3,975,233
2.75%, 11/30/16		2,500,000		2,680,078
3.25%, 12/31/16		7,500,000		8,183,205
1.00%, 03/31/17		5,000,000		5,046,095
0.88%, 04/30/17		4,500,000		4,517,226
3.13%, 04/30/17		600,000		654,656
0.63%, 05/31/17		9,000,000		8,937,423
0.75%, 06/30/17		2,000,000		1,993,906
0.50%, 07/31/17		5,000,000		4,928,125
2.38%, 07/31/17		1,000,000		1,063,203
0.63%, 08/31/17		7,000,000		6,928,362
0.63%, 09/30/17		3,500,000		3,459,533
0.75%, 10/31/17		2,000,000		1,985,626
0.63%, 11/30/17		3,500,000		3,452,421
2.25%, 11/30/17		1,500,000		1,588,125
0.75%, 12/31/17		6,500,000		6,438,048
0.88%, 01/31/18		4,750,000		4,726,991
0.75%, 02/28/18		1,250,000		1,235,840
0.75%, 03/31/18		1,000,000		987,344
0.63%, 04/30/18		3,000,000		2,941,641
1.00%, 05/31/18		4,000,000		3,993,752
				256,302,409
Total U.S. Government and Government Agencies
(Cost $293,906,331)				295,241,034
Foreign Securities 7.2% of net assets
Foreign Agencies 2.2%
Austria 0.1%
Oesterreichische Kontrollbank AG
1.13%, 07/06/15		200,000		202,612
1.75%, 10/05/15		300,000		308,186
				510,798
Canada 0.0%
Export Development Canada
2.25%, 05/28/15		200,000		207,522
Cayman Islands 0.1%
Petrobras International Finance Co.
7.75%, 09/15/14		100,000		107,730
2.88%, 02/06/15		300,000		304,752
				412,482
Germany 1.2%
Kreditanstalt Fuer Wiederaufbau
2.63%, 03/03/15 (d)		1,450,000		1,506,978
2.63%, 02/16/16 (d)		500,000		527,044
2.00%, 06/01/16 (d)		1,000,000		1,040,156
4.88%, 01/17/17 (d)		1,550,000		1,772,831
				4,847,009
Japan 0.2%
Japan Finance Corp.
2.88%, 02/02/15		300,000		312,081
2.25%, 07/13/16		400,000		418,735
Japan Finance Organization for Municipalities
5.00%, 05/16/17		200,000		229,765
				960,581
Mexico 0.1%
Petroleos Mexicanos
4.88%, 03/15/15		250,000		264,875
Netherlands 0.1%
Petrobras Global Finance BV
3.00%, 01/15/19		250,000		244,466
Norway 0.0%
Statoil A.S.A.
1.15%, 05/15/18		200,000		197,307
Republic of Korea 0.3%
Export-Import Bank of Korea
5.88%, 01/14/15		400,000		428,571
4.00%, 01/11/17		600,000		643,696
The Korea Development Bank
3.50%, 08/22/17		200,000		210,443
				1,282,710
Sweden 0.1%
Svensk Exportkredit AB
3.25%, 09/16/14		200,000		207,456
1.75%, 05/30/17		150,000		154,186
				361,642
				9,289,392
Foreign Local Government 0.7%
Canada 0.7%
Hydro Quebec
2.00%, 06/30/16		300,000		310,612
Province of British Columbia
2.85%, 06/15/15		300,000		314,526
Province of Manitoba
1.13%, 06/01/18		150,000		148,441
Province of Nova Scotia
5.13%, 01/26/17		250,000		287,097
Province of Ontario
4.10%, 06/16/14		600,000		623,019
1.88%, 09/15/15		550,000		568,317
2.30%, 05/10/16		300,000		313,423
3.15%, 12/15/17 (e)		350,000		378,852
				2,944,287
Sovereign 0.9%
Brazil 0.2%
Federative Republic of Brazil
7.88%, 03/07/15		300,000		337,500
6.00%, 01/17/17		750,000		854,250
				1,191,750
Canada 0.1%
Canada Government International Bond
0.88%, 02/14/17		300,000		301,233
Colombia 0.1%
Republic of Colombia
7.38%, 01/27/17		300,000		358,500
Italy 0.2%
Republic of Italy
3.13%, 01/26/15		500,000		513,055

2 

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
4.75%, 01/25/16		100,000		106,386
5.38%, 06/12/17		300,000		330,481
				949,922
Mexico 0.1%
United Mexican States
6.63%, 03/03/15		450,000		491,175
Panama 0.1%
Republic of Panama
7.25%, 03/15/15		250,000		277,375
Republic of Korea 0.1%
Republic of Korea
5.13%, 12/07/16		250,000		282,374
				3,852,329
Supranational 3.4%
African Development Bank
6.88%, 10/15/15		250,000		280,355
Asian Development Bank
2.63%, 02/09/15		650,000		674,900
2.50%, 03/15/16		250,000		263,427
Corp. Andina de Fomento S.A.
5.75%, 01/12/17		100,000		113,398
Council of Europe Development Bank
1.50%, 02/22/17		400,000		408,569
European Bank for Reconstruction & Development
1.63%, 09/03/15		200,000		205,254
1.00%, 02/16/17		600,000		604,062
European Investment Bank
3.13%, 06/04/14		1,400,000		1,438,870
2.88%, 01/15/15		1,000,000		1,038,811
1.63%, 09/01/15		300,000		307,369
4.88%, 02/16/16		600,000		668,462
2.25%, 03/15/16		750,000		783,154
2.50%, 05/16/16		350,000		368,939
5.13%, 09/13/16		350,000		399,025
4.88%, 01/17/17		900,000		1,027,314
1.75%, 03/15/17		1,000,000		1,031,425
Inter-American Development Bank
0.88%, 03/15/18		1,250,000		1,234,950
International Bank for Reconstruction & Development
2.13%, 03/15/16		750,000		783,299
0.88%, 04/17/17		1,200,000		1,203,314
International Finance Corp.
2.25%, 04/11/16		200,000		209,473
2.13%, 11/17/17		550,000		576,349
Nordic Investment Bank
2.50%, 07/15/15		400,000		416,855
1.00%, 03/07/17		250,000		251,832
				14,289,406
Total Foreign Securities
(Cost $30,003,695)				30,375,414
Corporate Bonds 22.2% of net assets
Finance 10.1%
Banking 7.5%
Abbey National Treasury Services PLC
4.00%, 04/27/16		250,000		267,768
American Express Centurion Bank
6.00%, 09/13/17		250,000		294,438
American Express Co.
6.80%, 09/01/66 (a)(b)		200,000		219,250
American Express Credit Corp.
5.13%, 08/25/14		500,000		527,790
2.38%, 03/24/17		300,000		310,894
Bank of America Corp.
1.50%, 10/09/15		500,000		503,166
6.50%, 08/01/16		125,000		143,015
3.88%, 03/22/17		250,000		267,422
6.00%, 09/01/17		750,000		865,010
5.75%, 12/01/17		1,000,000		1,146,293
2.00%, 01/11/18		250,000		248,028
Bank of Nova Scotia
3.40%, 01/22/15		275,000		287,313
2.05%, 10/07/15		300,000		308,565
Bank One Corp.
4.90%, 04/30/15		300,000		320,669
Barclays Bank PLC
5.20%, 07/10/14		700,000		734,405
BB&T Corp.
5.20%, 12/23/15		175,000		192,736
4.90%, 06/30/17		250,000		278,186
BNP Paribas S.A.
3.60%, 02/23/16		500,000		528,912
Canadian Imperial Bank of Commerce
2.35%, 12/11/15		200,000		207,836
Capital One Financial Corp.
2.15%, 03/23/15		350,000		357,002
6.75%, 09/15/17		200,000		241,027
Citigroup, Inc.
6.38%, 08/12/14		650,000		691,201
5.00%, 09/15/14		900,000		941,751
4.70%, 05/29/15		200,000		213,985
1.25%, 01/15/16		100,000		99,918
4.45%, 01/10/17		500,000		547,207
6.00%, 08/15/17		500,000		579,606
Credit Suisse USA, Inc.
5.13%, 08/15/15		500,000		547,344
Deutsche Bank AG
3.45%, 03/30/15		250,000		261,991
3.25%, 01/11/16		300,000		316,628
Fifth Third Bancorp
3.63%, 01/25/16		300,000		318,822
HSBC USA, Inc.
1.63%, 01/16/18		200,000		198,622
JPMorgan Chase & Co.
5.25%, 05/01/15		750,000		807,712
3.45%, 03/01/16		100,000		106,038
3.15%, 07/05/16		300,000		316,327
2.00%, 08/15/17		500,000		505,820
6.00%, 01/15/18		400,000		467,231
1.80%, 01/25/18		350,000		348,589
KeyCorp
3.75%, 08/13/15		250,000		265,547
Lloyds TSB Bank PLC
4.20%, 03/28/17		150,000		163,725
Merrill Lynch & Co., Inc.
6.05%, 05/16/16		850,000		944,888
6.88%, 04/25/18		400,000		476,981
Morgan Stanley
5.38%, 10/15/15		1,000,000		1,089,420
1.75%, 02/25/16		750,000		751,743
6.25%, 08/28/17		800,000		923,829

3

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
National Australia Bank Ltd.
1.60%, 08/07/15		250,000		254,568
PNC Funding Corp.
4.25%, 09/21/15		500,000		538,719
Rabobank Nederland
3.38%, 01/19/17		150,000		159,654
Regions Financial Corp.
2.00%, 05/15/18 (b)		250,000		245,120
Royal Bank of Canada
1.15%, 03/13/15		250,000		252,533
2.63%, 12/15/15		300,000		314,251
Royal Bank of Scotland Group PLC
2.55%, 09/18/15		500,000		513,857
State Street Corp.
2.88%, 03/07/16		200,000		211,388
Svenska Handelsbanken AB
2.88%, 04/04/17		300,000		315,858
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)		500,000		511,319
The Bear Stearns Cos. LLC
5.55%, 01/22/17		500,000		560,895
6.40%, 10/02/17		750,000		887,382
The Goldman Sachs Group, Inc.
5.35%, 01/15/16		300,000		330,014
5.95%, 01/18/18		1,000,000		1,154,273
6.15%, 04/01/18		1,000,000		1,163,767
Toronto-Dominion Bank
2.50%, 07/14/16		250,000		261,197
UBS AG
5.88%, 12/20/17		175,000		205,371
5.75%, 04/25/18		100,000		117,886
Union Bank NA
3.00%, 06/06/16		250,000		263,673
US Bancorp
1.65%, 05/15/17 (b)		300,000		304,044
Wells Fargo & Co.
4.75%, 02/09/15		600,000		638,632
5.75%, 05/16/16		300,000		339,576
5.13%, 09/15/16		250,000		280,052
5.63%, 12/11/17		1,000,000		1,166,108
Westpac Banking Corp.
4.20%, 02/27/15		500,000		531,112
				31,655,899
Brokerage 0.2%
BlackRock, Inc.
3.50%, 12/10/14		200,000		209,022
Jefferies Group, Inc.
5.88%, 06/08/14		200,000		211,500
5.50%, 03/15/16		65,000		71,500
Nomura Holdings, Inc.
5.00%, 03/04/15		200,000		213,476
TD Ameritrade Holding Co.
4.15%, 12/01/14		150,000		157,686
				863,184
Finance Company 0.7%
GATX Corp.
4.75%, 05/15/15		150,000		158,402
General Electric Capital Corp.
2.15%, 01/09/15		1,000,000		1,023,833
2.30%, 04/27/17		1,200,000		1,236,130
5.63%, 05/01/18		100,000		117,208
HSBC Finance Corp.
5.00%, 06/30/15		300,000		323,069
5.50%, 01/19/16		150,000		165,769
				3,024,411
Insurance 1.1%
ACE INA Holdings, Inc.
5.70%, 02/15/17		350,000		403,572
American International Group, Inc.
3.00%, 03/20/15		100,000		103,623
2.38%, 08/24/15		100,000		102,399
5.05%, 10/01/15		100,000		109,130
4.88%, 09/15/16		200,000		221,697
5.85%, 01/16/18		150,000		173,066
Berkshire Hathaway Finance Corp.
4.85%, 01/15/15		500,000		535,148
Cigna Corp.
2.75%, 11/15/16		250,000		263,452
5.38%, 03/15/17		100,000		112,525
CNA Financial Corp.
6.50%, 08/15/16		150,000		171,323
Genworth Holdings, Inc.
4.95%, 10/01/15		250,000		267,265
Hartford Financial Services Group, Inc.
5.38%, 03/15/17		500,000		563,210
ING US, Inc.
2.90%, 02/15/18		500,000		509,664
The Chubb Corp.
6.38%, 03/29/67 (a)(b)		100,000		113,000
The Travelers Co., Inc.
5.50%, 12/01/15		400,000		447,238
UnitedHealth Group, Inc.
1.40%, 10/15/17		350,000		349,983
WellPoint, Inc.
5.25%, 01/15/16		100,000		110,483
				4,556,778
Other Financial 0.1%
ORIX Corp.
4.71%, 04/27/15		150,000		158,308
Real Estate Investment Trust 0.5%
AvalonBay Communities, Inc.
5.70%, 03/15/17		250,000		287,017
Health Care REIT, Inc.
3.63%, 03/15/16		475,000		503,261
ProLogis LP
7.63%, 08/15/14		500,000		541,800
Simon Property Group LP
5.10%, 06/15/15		350,000		380,767
5.25%, 12/01/16 (b)		300,000		339,013
2.15%, 09/15/17 (b)		150,000		153,554
				2,205,412
				42,463,992
Industrial 10.6%
Basic Industry 0.8%
Airgas, Inc.
1.65%, 02/15/18 (b)		250,000		247,303
Alcoa, Inc.
5.55%, 02/01/17 (e)		150,000		162,543
Barrick Gold Corp.
2.50%, 05/01/18 (c)		250,000		247,023
BHP Billiton Finance (USA) Ltd.
1.00%, 02/24/15		400,000		403,385
1.63%, 02/24/17		100,000		101,099

4 

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Domtar Corp.
10.75%, 06/01/17		75,000		95,526
EI Du Pont de Nemours & Co.
5.25%, 12/15/16		250,000		286,438
Freeport-McMoRan Copper & Gold, Inc.
1.40%, 02/13/15		100,000		100,710
International Paper Co.
5.30%, 04/01/15		150,000		161,403
Monsanto Co.
2.75%, 04/15/16		200,000		210,531
Rio Tinto Finance USA Ltd.
1.88%, 11/02/15		150,000		153,386
Rio Tinto Finance USA PLC
1.13%, 03/20/15		250,000		251,136
The Dow Chemical Co.
5.90%, 02/15/15		500,000		542,869
Vale Overseas Ltd.
6.25%, 01/23/17		300,000		342,164
				3,305,516
Capital Goods 1.0%
3M Co.
1.38%, 09/29/16		150,000		152,906
Bemis Co., Inc.
5.65%, 08/01/14		50,000		52,649
Boeing Capital Corp.
2.13%, 08/15/16 (b)		100,000		103,587
Caterpillar Financial Services Corp.
1.25%, 11/06/17		750,000		745,161
CRH America, Inc.
6.00%, 09/30/16		75,000		85,150
Eaton Corp.
0.95%, 11/02/15		200,000		200,119
1.50%, 11/02/17		150,000		148,535
5.60%, 05/15/18		150,000		173,836
Emerson Electric Co.
5.00%, 12/15/14		200,000		213,284
General Dynamics Corp.
2.25%, 07/15/16		100,000		104,157
General Electric Co.
0.85%, 10/09/15		100,000		100,290
5.25%, 12/06/17		400,000		462,601
John Deere Capital Corp.
5.50%, 04/13/17		150,000		172,447
2.80%, 09/18/17		350,000		370,296
Lockheed Martin Corp.
2.13%, 09/15/16		100,000		102,957
Northrop Grumman Corp.
3.70%, 08/01/14		225,000		233,351
The Boeing Co.
0.95%, 05/15/18		250,000		243,575
United Technologies Corp.
1.80%, 06/01/17		300,000		306,271
Waste Management, Inc.
6.38%, 03/11/15		100,000		109,471
				4,080,643
Communications 1.7%
America Movil, S.A.B. de CV
3.63%, 03/30/15		150,000		156,842
2.38%, 09/08/16		250,000		257,961
AT&T, Inc.
2.50%, 08/15/15		400,000		414,627
0.90%, 02/12/16		300,000		299,587
2.40%, 08/15/16		200,000		207,933
1.40%, 12/01/17		400,000		397,390
5.50%, 02/01/18		250,000		292,943
British Telecommunications PLC
2.00%, 06/22/15		100,000		102,442
Comcast Corp.
6.50%, 01/15/17		100,000		118,164
6.30%, 11/15/17		350,000		421,783
COX Communications, Inc.
5.50%, 10/01/15		100,000		110,632
Deutsche Telekom International Finance BV
4.88%, 07/08/14		200,000		209,007
DIRECTV Holdings LLC
4.75%, 10/01/14		100,000		105,055
3.13%, 02/15/16		300,000		314,839
France Telecom S.A.
4.38%, 07/08/14		200,000		207,365
NBCUniversal Media LLC
3.65%, 04/30/15		350,000		369,857
News America, Inc.
5.30%, 12/15/14		100,000		106,922
Omnicom Group, Inc.
5.90%, 04/15/16		150,000		168,944
Qwest Corp.
7.50%, 10/01/14		200,000		216,765
Telecom Italia Capital S.A.
6.18%, 06/18/14		150,000		156,826
Telefonica Emisiones S.A.U.
4.95%, 01/15/15		500,000		527,606
3.99%, 02/16/16		275,000		288,098
Time Warner Cable, Inc.
3.50%, 02/01/15		100,000		104,090
5.85%, 05/01/17		150,000		172,865
Verizon Communications, Inc.
0.70%, 11/02/15		250,000		249,256
2.00%, 11/01/16		200,000		205,444
5.50%, 04/01/17		200,000		229,356
Vodafone Group PLC
4.15%, 06/10/14		175,000		180,823
2.88%, 03/16/16		225,000		235,829
5.63%, 02/27/17		250,000		285,574
				7,114,825
Consumer Cyclical 1.6%
Amazon.com, Inc.
1.20%, 11/29/17		100,000		98,614
CVS Caremark Corp.
4.88%, 09/15/14		100,000		105,452
5.75%, 06/01/17		175,000		203,833
Daimler Finance North America LLC
2.30%, 01/09/15		100,000		101,931
eBay, Inc.
1.63%, 10/15/15		125,000		128,014
1.35%, 07/15/17		150,000		150,113
Ford Motor Credit Co. LLC
3.88%, 01/15/15		250,000		259,393
3.00%, 06/12/17		250,000		256,768
6.63%, 08/15/17		700,000		814,847
5.00%, 05/15/18		550,000		607,249
Lowe’s Cos., Inc.
5.00%, 10/15/15		100,000		110,039
Macy’s Retail Holdings, Inc.
5.75%, 07/15/14		425,000		447,855
Marriott International, Inc.
6.20%, 06/15/16		150,000		169,448
McDonald’s Corp.
5.30%, 03/15/17		100,000		114,455

5

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Nordstrom, Inc.
6.25%, 01/15/18		200,000		237,152
Starwood Hotels & Resorts Worldwide, Inc.
6.75%, 05/15/18		150,000		182,113
Target Corp.
5.88%, 07/15/16		150,000		172,782
The Home Depot, Inc.
5.40%, 03/01/16		300,000		337,290
The Walt Disney Co.
0.88%, 12/01/14		150,000		151,157
1.35%, 08/16/16		150,000		152,446
Time Warner, Inc.
3.15%, 07/15/15		350,000		366,693
Toyota Motor Credit Corp.
0.88%, 07/17/15		200,000		200,965
2.80%, 01/11/16		300,000		315,153
Viacom, Inc.
1.25%, 02/27/15		100,000		100,590
2.50%, 12/15/16		150,000		155,912
Wal-Mart Stores, Inc.
4.50%, 07/01/15		300,000		324,609
2.80%, 04/15/16		100,000		105,727
5.38%, 04/05/17		200,000		231,099
Yum! Brands, Inc.
6.25%, 03/15/18		155,000		183,618
				6,785,317
Consumer Non-Cyclical 2.8%
AbbVie, Inc.
1.75%, 11/06/17 (c)		500,000		498,918
Actavis, Inc.
1.88%, 10/01/17		500,000		497,193
Altria Group, Inc.
4.13%, 09/11/15		100,000		107,137
AmerisourceBergen Corp.
5.88%, 09/15/15		150,000		166,515
Amgen, Inc.
4.85%, 11/18/14		200,000		212,111
2.50%, 11/15/16		200,000		208,457
2.13%, 05/15/17		150,000		153,224
Anheuser-Busch InBev Worldwide, Inc.
4.13%, 01/15/15		150,000		158,228
1.38%, 07/15/17		700,000		699,273
Baxter International, Inc.
4.63%, 03/15/15		100,000		106,783
Boston Scientific Corp.
4.50%, 01/15/15		250,000		264,051
Bottling Group LLC
5.50%, 04/01/16		150,000		168,726
Bunge Ltd Finance Corp.
3.20%, 06/15/17		250,000		258,988
Coca-Cola Enterprises, Inc.
2.13%, 09/15/15		150,000		153,876
Colgate-Palmolive Co.
2.63%, 05/01/17		250,000		262,856
ConAgra Foods, Inc.
1.30%, 01/25/16		250,000		251,739
Diageo Capital PLC
1.13%, 04/29/18		350,000		343,153
Express Scripts Holding Co.
2.10%, 02/12/15		250,000		255,325
2.65%, 02/15/17		850,000		882,162
Genentech, Inc.
4.75%, 07/15/15		150,000		162,724
General Mills, Inc.
5.70%, 02/15/17		350,000		403,026
Gilead Sciences Inc
3.05%, 12/01/16		150,000		159,815
GlaxoSmithKline Capital PLC
0.75%, 05/08/15		200,000		201,168
Kellogg Co.
4.45%, 05/30/16		100,000		109,499
Lorillard Tobacco Co.
2.30%, 08/21/17		100,000		100,435
Mattel, Inc.
2.50%, 11/01/16		100,000		103,876
McKesson Corp.
3.25%, 03/01/16		250,000		265,703
5.70%, 03/01/17		150,000		172,459
Medtronic, Inc.
2.63%, 03/15/16		100,000		104,631
Merck & Co, Inc.
1.30%, 05/18/18		450,000		445,059
Mondelez International, Inc.
4.13%, 02/09/16		300,000		323,944
6.50%, 08/11/17		300,000		356,017
Novartis Capital Corp.
2.90%, 04/24/15		150,000		156,677
PepsiCo, Inc.
2.50%, 05/10/16		200,000		209,578
1.25%, 08/13/17		100,000		99,630
Pfizer, Inc.
5.35%, 03/15/15		200,000		216,307
Philip Morris International, Inc.
1.13%, 08/21/17		150,000		148,251
Procter & Gamble Co.
4.95%, 08/15/14		200,000		210,968
1.80%, 11/15/15		250,000		257,299
Reynolds American, Inc.
1.05%, 10/30/15		100,000		100,296
7.63%, 06/01/16		43,000		50,917
Safeway, Inc.
3.40%, 12/01/16		75,000		78,516
6.35%, 08/15/17		200,000		230,291
Sanofi
1.25%, 04/10/18		200,000		197,291
Sanofi-Aventis S.A.
2.63%, 03/29/16		250,000		262,573
Teva Pharmaceutical Finance III LLC
3.00%, 06/15/15		250,000		261,066
The Coca Cola Co.
1.15%, 04/01/18		250,000		247,197
Thermo Fisher Scientific, Inc.
2.25%, 08/15/16		250,000		255,730
Unilever Capital Corp.
0.45%, 07/30/15		150,000		149,690
0.85%, 08/02/17		100,000		98,420
Zoetis, Inc.
1.15%, 02/01/16		250,000		250,770
				12,038,538
Energy 1.2%
Anadarko Petroleum Corp.
5.95%, 09/15/16		200,000		228,137
Apache Corp.
1.75%, 04/15/17		200,000		202,462
BP Capital Markets PLC
3.13%, 10/01/15		400,000		421,779
3.20%, 03/11/16		100,000		105,982

6 

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
1.85%, 05/05/17		300,000		304,150
1.38%, 05/10/18		100,000		98,278
Canadian Natural Resources Ltd.
1.45%, 11/14/14		200,000		201,787
Ensco PLC
3.25%, 03/15/16		150,000		158,662
Marathon Oil Corp.
0.90%, 11/01/15		250,000		249,911
Marathon Petroleum Corp.
3.50%, 03/01/16		100,000		106,116
Occidental Petroleum Corp.
1.50%, 02/15/18 (b)		350,000		349,824
Petrohawk Energy Corp.
7.88%, 06/01/15 (b)		250,000		255,563
7.25%, 08/15/18 (b)		250,000		278,438
Shell International Finance BV
3.10%, 06/28/15		300,000		316,027
5.20%, 03/22/17		150,000		172,258
Total Capital S.A.
3.00%, 06/24/15		250,000		262,354
2.30%, 03/15/16		100,000		103,910
1.50%, 02/17/17		350,000		352,000
Transocean, Inc.
2.50%, 10/15/17		500,000		505,137
6.00%, 03/15/18		100,000		114,786
Valero Energy Corp.
6.13%, 06/15/17		200,000		234,899
				5,022,460
Technology 1.3%
Apple, Inc.
0.45%, 05/03/16		150,000		149,085
1.00%, 05/03/18		350,000		343,852
Arrow Electronics, Inc.
3.00%, 03/01/18		350,000		356,021
Cisco Systems, Inc.
2.90%, 11/17/14		100,000		103,574
5.50%, 02/22/16		200,000		225,172
Fiserv, Inc.
6.80%, 11/20/17		400,000		474,715
Hewlett-Packard Co.
2.63%, 12/09/14		200,000		204,725
2.35%, 03/15/15		400,000		408,669
2.60%, 09/15/17		150,000		152,674
Intel Corp.
1.35%, 12/15/17		150,000		149,208
International Business Machines Corp.
1.25%, 02/06/17		900,000		901,575
Microsoft Corp.
1.63%, 09/25/15		250,000		256,584
1.00%, 05/01/18		150,000		147,931
NetApp, Inc.
2.00%, 12/15/17		250,000		247,419
Oracle Corp.
5.25%, 01/15/16		250,000		278,950
5.75%, 04/15/18		300,000		357,672
Texas Instruments, Inc.
2.38%, 05/16/16		150,000		156,948
Xerox Corp.
4.25%, 02/15/15		450,000		472,908
2.95%, 03/15/17		150,000		153,993
				5,541,675
Transportation 0.2%
CSX Corp.
6.25%, 04/01/15		250,000		274,859
5.60%, 05/01/17		100,000		114,753
Ryder System, Inc.
3.15%, 03/02/15		300,000		310,445
Southwest Airlines Co.
5.13%, 03/01/17		200,000		220,041
				920,098
				44,809,072
Utilities 1.5%
Electric 0.9%
CMS Energy Corp.
5.05%, 02/15/18		150,000		169,959
Consumers Energy Co.
5.50%, 08/15/16		150,000		171,453
Dominion Resources, Inc.
5.15%, 07/15/15		400,000		436,040
Duke Energy Corp.
1.63%, 08/15/17		700,000		700,391
Edison International
3.75%, 09/15/17		300,000		322,808
Exelon Corp.
4.90%, 06/15/15		400,000		431,278
Firstenergy Corp.
2.75%, 03/15/18 (b)		500,000		501,300
NextEra Energy Capital Holdings, Inc.
7.88%, 12/15/15		150,000		175,368
Pacific Gas & Electric Co.
5.63%, 11/30/17		200,000		235,844
PPL Energy Supply LLC
6.20%, 05/15/16		150,000		169,387
PSEG Power LLC
5.50%, 12/01/15		200,000		221,312
The Southern Co.
2.38%, 09/15/15		350,000		362,456
				3,897,596
Natural Gas 0.6%
Energy Transfer Partners LP
5.95%, 02/01/15		200,000		215,437
6.13%, 02/15/17		200,000		228,380
Enterprise Products Operating LLC
5.60%, 10/15/14		150,000		159,715
5.00%, 03/01/15		400,000		427,975
Kinder Morgan Energy Partners LP
5.95%, 02/15/18		400,000		473,977
Plains All American Pipeline LP
3.95%, 09/15/15		150,000		160,448
Sempra Energy
6.50%, 06/01/16		200,000		230,825
TransCanada PipeLines Ltd.
3.40%, 06/01/15		100,000		105,273
Williams Partners LP
7.25%, 02/01/17		400,000		475,980
				2,478,010
				6,375,606
Total Corporate Bonds
(Cost $92,474,331)				93,648,670

7

 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		377,261
Illinois
GO Bonds
4.42%, 01/01/15		50,000		52,549
GO Bonds Series 2011
5.37%, 03/01/17		250,000		275,687
Total Municipal Bonds
(Cost $694,293)				705,497
	Number		Value
Security	of Shares		($)
Other Investment Company 1.0% of net assets
Money Market Fund 1.0%
State Street Institutional U.S. Government Money Market Fund		4,024,711		4,024,711
Total Other Investment Company
(Cost $4,024,711)				4,024,711
End of Investments.
Collateral Invested for Securities on Loan 0.1% of net assets
State Street Institutional U.S. Government Money Market Fund		278,240		278,240
Total Collateral Invested for Securities on Loan
(Cost $278,240)				278,240
End of Collateral Invested for Securities on Loan

At 05/31/13, the tax basis cost of the fund’s investments was $421,215,475, and the unrealized appreciation and depreciation were $3,610,199 and ($830,348), respectively, with a net unrealized appreciation of $2,779,851.

(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 $745,941 or 0.2% 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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon

8 

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices.

•  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.

9

 Schwab Short-Term Bond Market Fund

Portfolio Holdings (Unaudited) continued

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 May 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
U.S. Government and Government Agencies1		$—		$295,241,034		$—		$295,241,034
Foreign Securities1		—		30,375,414		—		30,375,414
Corporate Bonds1		—		93,648,670		—		93,648,670
Municipal Bonds1		—		705,497		—		705,497
Other Investment Company1		4,024,711		—		—		4,024,711
Total		$4,024,711		$419,970,615		$—		$423,995,326
Other Financial Instruments
Collateral Invested for Securities on Loan		$278,240		$—		$—		$278,240

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 May 31, 2013.

REG406016MAY13

10 

Schwab Investments
Schwab Intermediate-Term Bond Fund™

Portfolio Holdings as of May 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.

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				($)			($)
	20	.7%	Corporate Bonds		77,164,065			78,370,207
	0	.2%	Asset-Backed Obligations		1,006,743			1,004,892
	38	.8%	Mortgage-Backed Securities		145,315,472			146,996,906
	2	.3%	Commercial Mortgage Backed Securities		8,061,280			8,674,631
	42	.8%	U.S. Government and Government Agencies		160,926,217			162,338,664
	3	.9%	Foreign Securities		14,694,703			14,932,916
	0	.3%	Preferred Stock		1,103,170			1,104,775
	0	.4%	Other Investment Company		1,456,566			1,456,566
	109	.4%	Total Investments		409,728,216			414,879,557
	(3	.4)%	TBA Sale Commitments		(13,031,094	)		(12,976,956	)
	(6	.0)%	Other Assets and Liabilities, Net					(22,819,846	)
	100	.0%	Net Assets					379,082,755

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Corporate Bonds 20.7% of net assets
Finance 8.8%
Banking 5.6%
American Express Co.
5.50%, 09/12/16		500,000		566,789
ANZ New Zealand Int’l Ltd.
1.13%, 03/24/16 (c)		250,000		249,745
Bank of America Corp.
5.63%, 10/14/16		500,000		563,576
7.63%, 06/01/19		500,000		630,562
5.00%, 05/13/21		250,000		277,346
BNP Paribas S.A.
3.60%, 02/23/16		300,000		317,347
Capital One Financial Corp.
7.38%, 05/23/14		750,000		797,836
1.00%, 11/06/15		500,000		497,207
Citigroup, Inc.
1.73%, 01/13/14 (a)		500,000		503,411
5.00%, 09/15/14		1,250,000		1,307,987
1.25%, 01/15/16		600,000		599,506
3.50%, 05/15/23		500,000		471,193
Deutsche Bank Financial LLC
5.38%, 03/02/15		250,000		266,700
Fifth Third Bancorp
3.63%, 01/25/16		100,000		106,274
JPMorgan Chase & Co.
3.70%, 01/20/15		700,000		732,065
6.00%, 01/15/18		750,000		876,058
3.38%, 05/01/23		100,000		95,203
Manufacturers & Traders Trust Co.
5.63%, 12/01/21 (a)(b)		500,000		518,750
Merrill Lynch & Co., Inc.
5.00%, 01/15/15		500,000		529,353
6.88%, 04/25/18		500,000		596,226
Morgan Stanley
4.75%, 04/01/14		1,575,000		1,618,591
5.50%, 07/24/20		1,000,000		1,130,338
3.75%, 02/25/23		100,000		99,391
4.10%, 05/22/23		250,000		239,997
Nordea Bank AB
0.74%, 05/13/16 (a)(c)		1,000,000		1,000,157
Rabobank Nederland
2.13%, 10/13/15		300,000		309,221
3.95%, 11/09/22		500,000		498,624
Regions Financial Corp.
2.00%, 05/15/18 (b)		150,000		147,072
Royal Bank of Scotland Group PLC
5.00%, 11/12/13		225,000		228,994
2.55%, 09/18/15		250,000		256,928
Santander Holdings USA, Inc.
4.63%, 04/19/16		100,000		107,052
Skandinaviska Enskilda Banken AB
1.75%, 03/19/18 (c)		500,000		498,420
The Bear Stearns Cos. LLC
5.30%, 10/30/15		500,000		549,093
7.25%, 02/01/18		250,000		305,802
The Goldman Sachs Group, Inc.
1.28%, 07/29/13 (a)		100,000		100,140
3.30%, 05/03/15		250,000		260,106
5.35%, 01/15/16		500,000		550,023
3.63%, 02/07/16		500,000		529,181
5.63%, 01/15/17		250,000		277,988
6.15%, 04/01/18		250,000		290,942
Wells Fargo & Co.
5.63%, 12/11/17		500,000		583,054
4.60%, 04/01/21		500,000		561,505
3.45%, 02/13/23		500,000		490,480
				21,136,233
Brokerage 0.1%
Nomura Holdings, Inc.
5.00%, 03/04/15		300,000		320,214
Finance Company 0.9%
General Electric Capital Corp.
0.41%, 06/20/13 (a)		1,300,000		1,300,048
5.63%, 05/01/18		500,000		586,041
HSBC Finance Corp.
0.53%, 01/15/14 (a)		500,000		499,773
International Lease Finance Corp.
2.22%, 06/15/16 (a)		1,000,000		1,010,000
				3,395,862

1

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Insurance 1.4%
American International Group, Inc.
2.38%, 08/24/15		600,000		614,392
Berkshire Hathaway Finance Corp.
5.40%, 05/15/18		500,000		588,645
Cigna Corp.
5.13%, 06/15/20		500,000		570,098
CNA Financial Corp.
5.88%, 08/15/20		250,000		293,273
Genworth Financial, Inc.
6.15%, 11/15/66 (a)(b)		500,000		471,875
ING US, Inc.
2.90%, 02/15/18		1,000,000		1,019,328
Liberty Mutual Group, Inc.
5.75%, 03/15/14 (c)		1,000,000		1,031,598
Nationwide Financial Services, Inc.
5.63%, 02/13/15		350,000		372,918
The Chubb Corp.
6.38%, 03/29/67 (a)(b)		100,000		113,000
UnitedHealth Group, Inc.
2.75%, 02/15/23 (b)		250,000		242,001
				5,317,128
Real Estate Investment Trust 0.8%
Kilroy Realty LP
6.63%, 06/01/20		500,000		593,232
Piedmont Operating Partnership LP
3.40%, 06/01/23 (b)(c)		750,000		723,106
ProLogis LP
4.50%, 08/15/17		750,000		817,759
Simon Property Group LP
2.80%, 01/30/17 (b)		300,000		313,288
Ventas Realty LP
3.25%, 08/15/22 (b)		100,000		98,056
WEA Finance LLC / WT Finance Aust Pty Ltd.
3.38%, 10/03/22 (b)		500,000		503,561
				3,049,002
				33,218,439
Industrial 10.3%
Basic Industry 1.2%
Barrick Gold Corp.
2.50%, 05/01/18 (c)		600,000		592,854
4.10%, 05/01/23 (c)		650,000		619,125
Carpenter Technology Corp.
4.45%, 03/01/23 (b)		500,000		506,365
Glencore Funding LLC
1.43%, 05/27/16 (a)(c)		1,000,000		999,300
The Dow Chemical Co.
4.25%, 11/15/20 (b)		800,000		879,709
Xstrata Finance Canada Ltd.
2.85%, 11/10/14 (c)		100,000		102,225
1.80%, 10/23/15		1,000,000		1,008,751
				4,708,329
Capital Goods 0.9%
Caterpillar Financial Services Corp.
0.70%, 11/06/15		500,000		500,659
Eaton Corp.
0.95%, 11/02/15		100,000		100,059
2.75%, 11/02/22		750,000		729,606
General Electric Co.
0.85%, 10/09/15		500,000		501,449
5.25%, 12/06/17		500,000		578,250
John Deere Capital Corp.
2.95%, 03/09/15		350,000		364,858
L-3 Communications Corp.
5.20%, 10/15/19		250,000		279,920
The Boeing Co.
4.88%, 02/15/20		250,000		290,818
				3,345,619
Communications 1.5%
America Movil, S.A.B. de CV
2.38%, 09/08/16		750,000		773,882
AT&T, Inc.
0.88%, 02/13/15		750,000		752,261
British Telecommunications PLC
2.00%, 06/22/15		100,000		102,442
Comcast Corp.
5.88%, 02/15/18		750,000		895,513
DIRECTV Holdings LLC
3.55%, 03/15/15		250,000		261,135
NBCUniversal Media LLC
1.97%, 04/15/19 (c)		500,000		499,797
4.38%, 04/01/21		750,000		838,306
Rogers Communications, Inc.
3.00%, 03/15/23 (b)		350,000		341,130
Telefonica Emisiones S.A.U.
4.95%, 01/15/15		250,000		263,803
5.88%, 07/15/19		250,000		279,617
Verizon Communications, Inc.
0.70%, 11/02/15		500,000		498,512
2.45%, 11/01/22 (b)		100,000		93,754
				5,600,152
Consumer Cyclical 1.2%
Ford Motor Credit Co. LLC
1.53%, 05/09/16 (a)		1,000,000		1,005,025
6.63%, 08/15/17		265,000		308,478
4.25%, 09/20/22		250,000		257,442
Hyundai Capital America
1.63%, 10/02/15		500,000		503,764
International Game Technology
5.50%, 06/15/20		100,000		107,179
Macy’s Retail Holdings, Inc.
5.90%, 12/01/16		213,000		245,039
QVC, Inc.
5.13%, 07/02/22		500,000		535,169
The Gap, Inc.
5.95%, 04/12/21 (b)		1,000,000		1,162,798
Time Warner, Inc.
3.15%, 07/15/15		250,000		261,923
Viacom, Inc.
3.88%, 12/15/21		150,000		157,104
				4,543,921
Consumer Non-Cyclical 2.4%
Actavis, Inc.
1.88%, 10/01/17		1,000,000		994,386
3.25%, 10/01/22 (b)		500,000		492,266
AmerisourceBergen Corp.
4.88%, 11/15/19		500,000		569,918
Anheuser-Busch InBev Worldwide, Inc.
1.38%, 07/15/17		700,000		699,273
Boston Scientific Corp.
5.13%, 01/12/17		250,000		277,196
6.00%, 01/15/20		150,000		174,988
Diageo Capital PLC
1.13%, 04/29/18		250,000		245,109

2 

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
2.63%, 04/29/23 (b)		500,000		480,499
Express Scripts Holding Co.
2.10%, 02/12/15		250,000		255,325
Kraft Foods Group, Inc.
5.38%, 02/10/20		523,000		609,887
Lorillard Tobacco Co.
2.30%, 08/21/17		350,000		351,521
Mondelez International, Inc.
5.38%, 02/10/20		477,000		554,025
Mylan, Inc.
7.88%, 07/15/20 (b)(c)		1,000,000		1,162,714
PepsiCo, Inc.
7.90%, 11/01/18		107,000		140,081
Reynolds American, Inc.
1.05%, 10/30/15		350,000		351,037
Safeway, Inc.
6.35%, 08/15/17		500,000		575,727
3.95%, 08/15/20		500,000		510,507
Thermo Fisher Scientific, Inc.
2.25%, 08/15/16		500,000		511,460
Zoetis, Inc.
3.25%, 02/01/23 (b)(c)		250,000		247,843
				9,203,762
Energy 1.8%
Anadarko Petroleum Corp.
7.63%, 03/15/14		750,000		790,781
6.38%, 09/15/17		500,000		590,117
BP Capital Markets PLC
1.38%, 05/10/18		550,000		540,526
2.75%, 05/10/23		300,000		286,490
Hess Corp.
7.00%, 02/15/14		205,000		213,721
8.13%, 02/15/19		500,000		644,362
Petrohawk Energy Corp.
7.88%, 06/01/15 (b)		500,000		511,125
7.25%, 08/15/18 (b)		500,000		556,875
Plains Exploration & Production Co.
6.50%, 11/15/20 (b)		1,000,000		1,112,500
Transocean, Inc.
6.38%, 12/15/21		1,000,000		1,168,984
Valero Energy Corp.
9.38%, 03/15/19		250,000		339,005
				6,754,486
Technology 0.9%
Apple, Inc.
0.45%, 05/03/16		500,000		496,948
1.00%, 05/03/18		250,000		245,609
Arrow Electronics, Inc.
3.00%, 03/01/18		300,000		305,161
4.50%, 03/01/23 (b)		300,000		303,109
Hewlett-Packard Co.
3.30%, 12/09/16		500,000		524,849
Motorola Solutions, Inc.
3.50%, 03/01/23		500,000		490,059
Oracle Corp.
1.20%, 10/15/17		500,000		496,181
Xerox Corp.
4.25%, 02/15/15		500,000		525,453
				3,387,369
Transportation 0.4%
American Airlines Pass-Through Trust
4.00%, 07/15/25		700,000		705,250
Burlington Northern Santa Fe Corp.
3.60%, 09/01/20 (b)		250,000		265,798
CSX Corp.
7.38%, 02/01/19		300,000		378,823
Union Pacific Corp.
5.75%, 11/15/17		200,000		235,365
				1,585,236
				39,128,874
Utilities 1.6%
Electric 0.8%
Ameren Illinois Co.
2.70%, 09/01/22 (b)		100,000		98,507
CenterPoint Energy Houston Electric LLC
2.25%, 08/01/22 (b)		100,000		95,858
Dominion Resources, Inc.
6.40%, 06/15/18		500,000		607,373
Duke Energy Corp.
5.05%, 09/15/19		500,000		579,584
Pacific Gas & Electric Co.
3.50%, 10/01/20 (b)		500,000		537,241
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)		100,000		97,690
The Detroit Edison Co.
2.65%, 06/15/22 (b)		250,000		248,309
The Southern Co.
2.38%, 09/15/15		200,000		207,118
TransAlta Corp.
4.50%, 11/15/22 (b)		500,000		498,655
				2,970,335
Natural Gas 0.8%
CenterPoint Energy Resources Corp.
6.00%, 05/15/18		250,000		298,269
Energy Transfer Partners LP
8.50%, 04/15/14		401,000		426,985
Kinder Morgan Energy Partners LP
5.95%, 02/15/18		1,000,000		1,184,942
3.45%, 02/15/23 (b)		200,000		196,992
Southwest Gas Corp.
3.88%, 04/01/22 (b)		300,000		322,412
Williams Partners LP
7.25%, 02/01/17		300,000		356,985
4.13%, 11/15/20 (b)		250,000		265,974
				3,052,559
				6,022,894
Total Corporate Bonds
(Cost $77,164,065)				78,370,207
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		1,004,892
Total Asset-Backed Obligations
(Cost $1,006,743)				1,004,892

3

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Mortgage-Backed Securities 38.8% of net assets
Collateralized Mortgage Obligations 1.0%
ABN Amro Mortgage Corp.
Series 2003-9 Class A1
4.50%, 08/25/18 (b)		37,646		38,344
Chase Mortgage Finance Corp.
Series 2003-S13 Class A16
5.00%, 11/25/33 (b)		600,568		625,741
Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-23 Class 7A1
5.00%, 09/25/18 (b)		1,469,613		1,506,144
MASTR Asset Securitization Trust
Series 2003-10 Class 3A1
5.50%, 11/25/33 (b)		337,207		356,163
Residential Accredit Loans, Inc.
Series 2002-QS18 Class A1
5.50%, 12/25/17 (b)		51,312		53,006
Sequoia Mortgage Trust
Series 2011-1 Class A1
4.13%, 02/25/41 (b)		594,729		609,048
Series 2012-2 Class A2
3.50%, 04/25/42 (b)		532,475		548,529
				3,736,975
U.S. Government Agency Mortgages 37.8%
Fannie Mae
6.00%, 02/01/15 to 07/01/37 (b)		6,021,105		6,593,896
7.00%, 11/15/16 to 01/01/35 (b)		495,921		580,995
4.50%, 09/01/18 to 06/01/30 (b)		1,412,588		1,508,554
6.50%, 12/01/19 to 08/01/26 (b)		347,276		377,336
5.50%, 10/01/22 to 05/01/27 (b)		2,535,816		2,751,240
5.00%, 08/01/23 to 07/01/35 (b)		4,522,309		4,882,754
3.00%, 01/01/26 to 02/01/43 (b)		5,416,299		5,601,233
3.50%, 02/01/32 to 03/01/43 (b)		9,081,101		9,426,950
4.00%, 09/01/40 to 02/01/42 (b)		5,582,954		5,978,135
Fannie Mae REMICS
4.50%, 07/25/19 (b)		115,113		116,284
Fannie Mae TBA
2.00%, 06/01/28 (b)		400,000		396,750
2.50%, 06/01/28 to 06/01/43 (b)		3,700,000		3,739,516
3.00%, 06/01/28 to 06/01/43 (b)		5,500,000		5,534,922
3.50%, 06/01/28 to 06/01/43 (b)		2,500,000		2,601,933
4.00%, 06/01/28 to 06/01/43 (b)		2,000,000		2,120,019
4.50%, 06/01/28 to 06/01/43 (b)		7,000,000		7,480,117
6.00%, 06/01/43 (b)		1,500,000		1,632,657
Freddie Mac
4.50%, 07/01/13 to 12/01/39 (b)		3,334,606		3,536,948
6.50%, 10/01/13 to 04/01/26 (b)		519,882		562,230
6.00%, 06/01/16 to 08/01/22 (b)		355,737		392,771
4.00%, 12/01/20 to 10/01/41 (b)		5,001,372		5,302,262
5.50%, 02/01/23 to 10/01/33 (b)		6,777,523		7,335,450
5.00%, 01/01/24 (b)		622,759		665,955
3.00%, 03/01/27 (b)		371,664		387,899
3.50%, 03/01/42 (b)		994,684		1,028,625
Freddie Mac REMICS
4.50%, 03/15/19 (b)		267,942		269,829
2.00%, 07/15/20 (b)		807,498		813,486
4.00%, 11/15/23 (b)		879,440		900,012
5.00%, 02/15/32 to 08/15/32 (b)		158,661		160,173
Freddie Mac TBA
2.00%, 06/01/28 (b)		200,000		198,781
2.50%, 06/01/28 (b)		1,900,000		1,933,457
3.00%, 06/01/28 to 06/01/43 (b)		4,500,000		4,531,836
3.50%, 06/01/28 (b)		2,000,000		2,096,875
4.50%, 06/01/43 (b)		1,500,000		1,591,289
Ginnie Mae
4.00%, 12/15/24 to 08/20/41 (b)		5,807,336		6,203,138
7.63%, 08/15/28 (b)		166,524		186,213
7.38%, 09/15/28 to 02/15/30 (b)		389,879		435,237
7.13%, 02/15/29 to 03/15/29 (b)		239,988		274,190
7.00%, 04/15/29 to 05/15/29 (b)		240,017		280,353
5.50%, 02/15/33 to 08/20/34 (b)		8,416,627		9,344,086
5.00%, 02/20/33 to 11/15/34 (b)		12,385,637		13,555,280
4.50%, 01/20/34 to 09/20/41 (b)		7,653,318		8,190,850
3.00%, 11/20/42 to 04/20/43 (b)		1,577,813		1,609,210
3.50%, 02/20/43 to 05/20/43 (b)		4,743,247		4,982,708
Ginnie Mae TBA
3.00%, 06/01/43 (b)		2,900,000		2,951,059
3.50%, 06/01/43 (b)		1,600,000		1,681,438
4.50%, 06/01/43 (b)		500,000		535,000
				143,259,931
Total Mortgage-Backed Securities
(Cost $145,315,472)				146,996,906
Commercial Mortgage Backed Securities 2.3% of net assets
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (b)		3,000,000		3,280,753
Series 2006-T24 Class A4
5.54%, 10/12/41 (b)		1,000,000		1,125,069
Series 2007-T28 Class A4
5.74%, 09/11/42 (a)(b)		365,000		423,261
Greenwich Capital Commercial Funding Corp.
Series 2006-GG7 Class A4
5.86%, 07/10/38 (a)(b)		665,000		746,736
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		1,000,000		1,129,908
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5 Class A2
5.20%, 12/15/44 (b)		880,626		885,479
Series 2006-LDP9 Class A2S
5.30%, 05/15/47 (b)		69,582		70,697
Series 2007-LD12-A Class A2
5.83%, 02/15/51 (b)		215,055		220,114
LB-UBS Commercial Mortgage Trust
Series 2004-C4 Class A4
5.53%, 06/15/29 (a)(b)		100,000		103,329
Series 2006-C3 Class A3
5.69%, 03/15/32 (a)(b)		688,690		689,285
Total Commercial Mortgage Backed Securities
(Cost $8,061,280)				8,674,631
U.S. Government and Government Agencies 42.8% of net assets
U.S. Government Agency Securities 15.4%
Fannie Mae
1.63%, 10/26/15		7,000,000		7,202,734
2.38%, 04/11/16		2,000,000		2,105,942
0.88%, 10/26/17		8,000,000		7,947,424

4 

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Federal Home Loan Bank
0.00%, 06/07/13 (e)		9,600,000		9,599,990
0.00%, 06/14/13 (e)		15,000,000		14,999,955
0.00%, 06/28/13 (e)		8,000,000		7,999,944
Freddie Mac
2.50%, 05/27/16		7,500,000		7,922,565
1.25%, 08/01/19		600,000		589,498
				58,368,052
U.S. Treasury Obligations 27.4%
U.S. Treasury Notes
2.38%, 10/31/14		3,400,000		3,502,932
4.25%, 11/15/14		5,000,000		5,290,430
2.63%, 12/31/14		3,000,000		3,112,851
0.25%, 05/15/15		7,500,000		7,492,680
0.25%, 07/15/15		1,500,000		1,497,422
0.25%, 08/15/15		2,000,000		1,995,938
0.25%, 09/15/15		3,000,000		2,992,266
1.25%, 10/31/15		1,250,000		1,275,879
0.38%, 03/15/16		6,500,000		6,483,243
2.00%, 04/30/16		5,000,000		5,215,235
1.75%, 05/31/16		4,600,000		4,767,109
1.50%, 07/31/16		2,550,000		2,624,508
0.88%, 02/28/17		2,000,000		2,010,938
3.13%, 04/30/17		1,500,000		1,636,641
1.88%, 10/31/17		3,000,000		3,126,330
0.88%, 01/31/18		4,500,000		4,478,202
2.88%, 03/31/18		2,000,000		2,176,876
2.38%, 05/31/18		1,000,000		1,064,922
1.75%, 10/31/18		2,000,000		2,063,594
3.75%, 11/15/18		5,000,000		5,693,360
1.38%, 12/31/18		4,500,000		4,545,000
1.25%, 04/30/19		2,250,000		2,246,661
1.00%, 06/30/19		1,250,000		1,226,270
0.88%, 07/31/19		5,000,000		4,858,985
1.00%, 09/30/19		5,000,000		4,882,030
1.00%, 11/30/19		2,500,000		2,434,180
1.38%, 01/31/20		2,500,000		2,484,765
1.25%, 02/29/20		4,500,000		4,430,038
1.63%, 08/15/22		2,000,000		1,929,376
2.00%, 02/15/23		6,500,000		6,431,951
				103,970,612
Total U.S. Government and Government Agencies
(Cost $160,926,217)				162,338,664
Foreign Securities 3.9% of net assets
Foreign Agencies 1.5%
Germany 0.3%
Kreditanstalt Fuer Wiederaufbau
4.00%, 01/27/20 (d)		1,000,000		1,139,992
Mexico 0.3%
Petroleos Mexicanos
4.88%, 03/15/15		500,000		529,750
5.50%, 01/21/21		500,000		557,500
				1,087,250
Netherlands 0.6%
Petrobras Global Finance BV
1.89%, 05/20/16 (a)		1,500,000		1,507,500
3.00%, 01/15/19		750,000		733,398
4.38%, 05/20/23		150,000		146,037
				2,386,935
Norway 0.1%
Statoil ASA
3.13%, 08/17/17		500,000		535,669
Republic of Korea 0.2%
Export-Import Bank of Korea
4.00%, 01/11/17		500,000		536,413
				5,686,259
Foreign Local Government 0.3%
Canada 0.3%
Province of Manitoba
1.13%, 06/01/18		1,000,000		989,610
Sovereign 0.7%
Brazil 0.2%
Federative Republic of Brazil
6.00%, 01/17/17		500,000		569,500
4.88%, 01/22/21		250,000		281,875
				851,375
Chile 0.1%
Republic of Chile
2.25%, 10/30/22		250,000		234,375
Italy 0.1%
Republic of Italy
3.13%, 01/26/15		100,000		102,611
5.38%, 06/12/17		250,000		275,401
				378,012
Mexico 0.2%
United Mexican States
5.13%, 01/15/20		500,000		572,500
3.63%, 03/15/22		250,000		259,375
				831,875
Republic of Korea 0.1%
Republic of Korea
5.13%, 12/07/16		500,000		564,747
				2,860,384
Supranational 1.4%
Asian Development Bank
2.50%, 03/15/16		750,000		790,282
European Investment Bank
2.50%, 05/16/16		2,000,000		2,108,224
Inter-American Development Bank
0.88%, 03/15/18		1,000,000		987,960
International Bank for Reconstruction & Development
0.88%, 04/17/17		1,000,000		1,002,762
International Finance Corp.
1.13%, 11/23/16		500,000		507,435
				5,396,663
Total Foreign Securities
(Cost $14,694,703)				14,932,916

5

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

	Number		Value
Security	of Shares		($)
Preferred Stock 0.3% of net assets
Utilities 0.3%
Consumers Energy Co.		10,700		1,104,775
Total Preferred Stock
(Cost $1,103,170)				1,104,775
Other Investment Company 0.4% of net assets
Money Market Fund 0.4%
State Street Institutional U.S. Government Money Market Fund		1,456,566		1,456,566
Total Other Investment Company
(Cost $1,456,566)				1,456,566
End of Investments.

At 05/31/13, the tax basis cost of the fund’s investments was $409,728,849 and the unrealized appreciation and depreciation were $7,369,394 and ($2,218,686), respectively, with a net unrealized appreciation of $5,150,708.

	Face
Security	Amount		Value
Rate, Maturity Dates	($)		($)
TBA Sale Commitments 3.4% of net assets
U.S. Government Agency Mortgages 3.4%
Ginnie Mae TBA
5.00%, 06/01/43 (b)		7,000,000		7,557,814
5.50%, 06/01/43 (b)		5,000,000		5,419,142
				12,976,956
Total TBA Sale Commitments
(Proceeds $13,031,094)				12,976,956

(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 $7,726,884 or 2.0% of net assets.
(d)	Guaranteed by the Republic of Germany.
(e)	Zero coupon bond.

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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

6 

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices.

•  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.

7

 Schwab Intermediate-Term Bond Fund

Portfolio Holdings (Unaudited) continued

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 May 31, 2013:

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		$—		$39,241,333			$—		$39,241,333
Industrial1		—		37,543,638			—		37,543,638
Transportation		—		879,986			705,250		1,585,236
Asset-Backed Obligations		—		1,004,892			—		1,004,892
Mortgage-Backed Securities1		—		146,996,906			—		146,996,906
Commercial Mortgage Backed Securities		—		8,674,631			—		8,674,631
U.S. Government and Government Agencies1		—		162,338,664			—		162,338,664
Foreign Securities1		—		14,932,916			—		14,932,916
Preferred Stock1		1,104,775		—			—		1,104,775
Other Investment Company1		1,456,566		—			—		1,456,566
Total		$2,561,341		$411,612,966			$705,250		$414,879,557
Liabilities Valuation Input
Other Financial Instruments
TBA Sale Commitments1		$—		($12,976,956	)		$—		($12,976,956	)

¹ As categorized in Portfolio Holdings.

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
	August 31,		Gains		Gains		Gross		Gross		Transfers		Transfers		May 31,
Investments in Securities	2012		(Losses)		(Losses)		Purchases		Sales		in		out		2013
Corporate Bonds		$—		$—		$5,250		$700,000		$—		$—		$—		$705,250
Total		$—		$—		$5,250		$700,000		$—		$—		$—		$705,250

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 May 31, 2013.

REG406020MAY13

8 

Schwab Investments
Schwab Total Bond Market Fund™

Portfolio Holdings as of May 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.

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				($)		($)
	35	.0%	Mortgage-Backed Securities		326,097,882		328,967,281
	21	.6%	Corporate Bonds		193,601,269		202,756,615
	44	.8%	U.S. Government and Government Agencies		406,452,403		420,142,674
	1	.7%	Commercial Mortgage Backed Securities		14,119,790		15,787,560
	0	.3%	Asset-Backed Obligations		3,341,054		3,299,895
	4	.9%	Foreign Securities		44,598,130		45,739,885
	1	.0%	Municipal Bonds		8,058,355		9,133,478
	0	.5%	Other Investment Company		5,026,428		5,026,428
	109	.8%	Total Investments		1,001,295,311		1,030,853,816
	(9	.8)%	Other Assets and Liabilities, Net				(92,103,529	)
	100	.0%	Net Assets				938,750,287

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Mortgage-Backed Securities 35.0% of net assets
U.S. Government Agency Mortgages 35.0%
Fannie Mae
5.50%, 12/01/13 to 07/01/40 (b)		13,802,747		15,198,073
5.00%, 12/01/17 to 12/01/39 (b)		12,067,778		13,108,985
4.00%, 07/01/18 to 04/01/42 (b)		7,648,161		8,114,885
4.50%, 07/01/19 to 07/01/42 (b)		14,474,919		15,524,565
6.00%, 09/01/24 to 12/01/37 (b)		6,701,628		7,390,145
3.50%, 03/01/26 to 03/01/43 (b)		14,390,423		14,978,573
6.50%, 08/01/26 to 10/01/39 (b)		3,293,379		3,710,331
3.00%, 01/01/27 to 02/01/43 (b)		7,689,963		7,864,299
2.50%, 10/01/27 to 11/01/27 (b)		1,696,174		1,732,847
2.05%, 03/01/34 (a)(b)		1,158,315		1,220,897
2.29%, 03/01/35 (a)(b)		445,441		465,656
2.83%, 08/01/35 (a)(b)		1,734,561		1,842,490
7.00%, 04/01/37 (b)		904,019		1,029,128
3.65%, 03/01/40 (a)(b)		448,573		477,631
Fannie Mae TBA
2.00%, 06/01/28 (b)		1,000,000		991,219
2.50%, 06/01/28 to 06/01/43 (b)		6,100,000		6,169,832
3.00%, 06/01/28 to 06/01/43 (b)		14,300,000		14,447,391
3.50%, 06/01/28 to 06/01/43 (b)		7,000,000		7,275,508
4.00%, 06/01/28 to 06/01/43 (b)		12,000,000		12,666,797
4.50%, 06/01/43 (b)		3,500,000		3,740,625
5.00%, 06/01/43 (b)		750,000		808,975
Federal Home Loan Bank
0.00%, 06/12/13 (e)		45,000,000		44,999,865
Freddie Mac
0.00%, 06/24/13 (e)		11,000,000		10,999,934
6.00%, 04/01/15 to 10/01/38 (b)		2,461,606		2,705,584
4.50%, 06/01/19 to 02/01/40 (b)		8,172,133		8,680,574
4.00%, 12/01/20 to 10/01/41 (b)		7,877,949		8,335,744
5.00%, 06/01/23 to 04/01/40 (b)		5,550,309		6,066,753
3.00%, 10/01/26 to 04/01/27 (b)		1,582,550		1,650,991
2.28%, 05/01/37 (a)(b)		910,911		964,614
5.50%, 10/01/39 to 02/01/40 (b)		402,654		435,884
2.99%, 05/01/41 (a)(b)		534,060		561,461
3.50%, 04/01/42 to 03/01/43 (b)		5,346,650		5,529,093
Freddie Mac TBA
2.00%, 06/01/28 (b)		300,000		298,172
2.50%, 06/01/28 (b)		4,000,000		4,069,687
3.00%, 06/01/28 to 06/01/43 (b)		11,000,000		11,105,664
3.50%, 06/01/28 to 06/01/43 (b)		4,800,000		4,996,250
4.00%, 06/01/28 to 06/01/43 (b)		2,000,000		2,106,211
4.50%, 06/01/43 (b)		6,500,000		6,894,024
5.00%, 06/01/43 (b)		500,000		534,492
Ginnie Mae
5.00%, 10/20/21 to 08/20/40 (b)		7,494,930		8,242,365
4.50%, 05/15/24 to 11/20/41 (b)		12,175,939		13,163,997
3.50%, 02/15/26 to 05/20/43 (b)		9,416,000		9,894,495
4.00%, 06/15/26 to 04/20/43 (b)		6,435,153		6,906,125
3.00%, 02/20/27 to 03/15/43 (b)		6,222,517		6,357,901
2.50%, 03/20/28 (b)		494,028		507,154
6.00%, 05/15/32 to 08/15/38 (b)		1,920,547		2,153,930
5.50%, 04/15/33 to 03/15/40 (b)		3,323,474		3,617,410
7.00%, 06/15/33 (b)		294,121		348,054
6.50%, 10/20/37 (b)		500,356		572,498
3.00%, 10/20/40 to 01/20/41 (a)(b)		789,513		835,794
Ginnie Mae TBA
2.50%, 06/01/43 (b)		300,000		288,938
3.00%, 06/01/43 (b)		3,600,000		3,668,168
3.50%, 06/01/43 to 07/01/43 (b)		5,000,000		5,246,485
4.00%, 06/01/43 (b)		3,500,000		3,715,742
4.50%, 06/01/43 (b)		2,500,000		2,674,688
5.00%, 06/01/43 (b)		1,000,000		1,079,688
Total Mortgage-Backed Securities
(Cost $326,097,882)				328,967,281
Corporate Bonds 21.6% of net assets
Finance 7.1%
Banking 4.6%
Abbey National Treasury Services PLC
4.00%, 04/27/16		400,000		428,428
American Express Bank
7.00%, 03/19/18		300,000		369,383
American Express Co.
6.80%, 09/01/66 (a)(b)		500,000		548,125
American Express Credit Corp.
2.38%, 03/24/17		300,000		310,894

1

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Bank of America Corp.
1.50%, 10/09/15		650,000		654,116
6.50%, 08/01/16		250,000		286,029
5.63%, 10/14/16		500,000		563,577
5.65%, 05/01/18		400,000		458,596
5.00%, 05/13/21		1,500,000		1,664,074
3.30%, 01/11/23		300,000		291,198
6.00%, 10/15/36		1,000,000		1,175,356
Bank of Nova Scotia
3.40%, 01/22/15		100,000		104,478
4.38%, 01/13/21		500,000		559,594
Barclays Bank PLC
5.00%, 09/22/16		450,000		503,994
6.75%, 05/22/19		300,000		370,026
BB&T Corp.
3.95%, 03/22/22 (b)		200,000		209,694
BNP Paribas
5.00%, 01/15/21		250,000		276,529
3.25%, 03/03/23		250,000		239,965
BNP Paribas S.A.
3.60%, 02/23/16		300,000		317,347
Capital One Financial Corp.
2.15%, 03/23/15		100,000		102,001
6.15%, 09/01/16		650,000		738,288
Citigroup, Inc.
6.38%, 08/12/14		750,000		797,539
1.25%, 01/15/16		150,000		149,877
4.45%, 01/10/17		650,000		711,370
6.00%, 08/15/17		12,000		13,911
6.13%, 11/21/17		750,000		878,220
4.50%, 01/14/22		800,000		867,971
4.05%, 07/30/22		1,000,000		1,001,861
6.13%, 08/25/36		250,000		272,438
5.88%, 01/30/42		250,000		292,500
Credit Suisse USA, Inc.
4.88%, 01/15/15		500,000		533,089
5.40%, 01/14/20		500,000		566,468
Deutsche Bank AG
6.00%, 09/01/17		450,000		528,175
Fifth Third Bancorp
8.25%, 03/01/38		200,000		276,968
Goldman Sachs Capital l
6.35%, 02/15/34		200,000		206,194
HSBC Bank USA
5.88%, 11/01/34		500,000		570,003
HSBC Holdings PLC
4.00%, 03/30/22		850,000		902,871
7.63%, 05/17/32		150,000		197,765
JPMorgan Chase & Co.
3.70%, 01/20/15		750,000		784,355
6.00%, 01/15/18		1,000,000		1,168,078
4.25%, 10/15/20		1,500,000		1,630,722
3.38%, 05/01/23		750,000		714,022
5.50%, 10/15/40		100,000		114,109
JPMorgan Chase Bank NA
6.00%, 10/01/17		1,000,000		1,168,375
Key Bank NA
5.80%, 07/01/14		350,000		368,935
Lloyds TSB Bank PLC
6.38%, 01/21/21		500,000		610,650
Manufacturers & Traders Trust Co.
5.63%, 12/01/21 (a)(b)		250,000		259,375
Merrill Lynch & Co., Inc.
6.88%, 04/25/18		450,000		536,604
Morgan Stanley
1.75%, 02/25/16		1,000,000		1,002,324
5.45%, 01/09/17		1,500,000		1,666,957
6.63%, 04/01/18		200,000		235,647
7.30%, 05/13/19		250,000		306,686
6.25%, 08/09/26		250,000		292,980
6.38%, 07/24/42		400,000		471,517
National City Corp.
6.88%, 05/15/19		100,000		122,594
PNC Funding Corp.
4.25%, 09/21/15		600,000		646,463
Rabobank Nederland
2.13%, 10/13/15		200,000		206,147
3.38%, 01/19/17		350,000		372,526
3.95%, 11/09/22		100,000		99,725
Regions Financial Corp.
2.00%, 05/15/18 (b)		500,000		490,239
Royal Bank of Canada
2.63%, 12/15/15		500,000		523,752
Royal Bank of Scotland Group PLC
2.55%, 09/18/15		650,000		668,013
State Street Corp.
2.88%, 03/07/16		350,000		369,929
Svenska Handelsbanken AB
2.88%, 04/04/17		350,000		368,501
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)		500,000		511,319
The Goldman Sachs Group, Inc.
3.30%, 05/03/15		300,000		312,127
3.63%, 02/07/16		850,000		899,607
5.63%, 01/15/17		750,000		833,965
5.95%, 01/18/18		600,000		692,564
5.95%, 01/15/27		450,000		490,188
6.75%, 10/01/37		800,000		875,187
UBS AG
3.88%, 01/15/15		552,000		579,798
5.88%, 12/20/17		50,000		58,677
US Bancorp
2.20%, 11/15/16 (b)		250,000		259,951
Wachovia Bank NA
4.88%, 02/01/15		1,000,000		1,066,447
Wells Fargo & Co.
5.63%, 12/11/17		700,000		816,276
3.45%, 02/13/23		1,250,000		1,226,200
Westpac Banking Corp.
4.20%, 02/27/15		550,000		584,224
				43,344,667
Brokerage 0.1%
BlackRock, Inc.
3.50%, 12/10/14		200,000		209,022
5.00%, 12/10/19		300,000		351,889
Jefferies Group, Inc.
5.50%, 03/15/16		125,000		137,500
6.45%, 06/08/27		75,000		83,625
Nomura Holdings, Inc.
5.00%, 03/04/15		150,000		160,107
6.70%, 03/04/20		200,000		236,373
TD Ameritrade Holding Co.
4.15%, 12/01/14		200,000		210,248
				1,388,764
Finance Company 0.6%
GATX Corp.
4.75%, 05/15/15		100,000		105,601

2 

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
GE Capital Trust I
6.38%, 11/15/67 (a)(b)		100,000		106,500
General Electric Capital Corp.
2.15%, 01/09/15		250,000		255,958
2.25%, 11/09/15		500,000		516,600
5.00%, 01/08/16		900,000		990,599
2.30%, 04/27/17		500,000		515,054
5.63%, 09/15/17		200,000		231,525
5.63%, 05/01/18		650,000		761,853
4.38%, 09/16/20		300,000		328,534
5.30%, 02/11/21		150,000		169,500
6.75%, 03/15/32		300,000		374,877
5.88%, 01/14/38		500,000		572,439
6.88%, 01/10/39		150,000		192,183
HSBC Finance Capital Trust IX
5.91%, 11/30/35 (a)(b)		400,000		411,000
HSBC Finance Corp.
5.00%, 06/30/15		82,000		88,306
5.50%, 01/19/16		100,000		110,513
				5,731,042
Insurance 1.3%
ACE INA Holdings, Inc.
2.60%, 11/23/15		200,000		209,051
Aetna, Inc.
3.95%, 09/01/20		250,000		267,274
American International Group, Inc.
2.38%, 08/24/15		200,000		204,797
5.60%, 10/18/16		925,000		1,047,552
6.40%, 12/15/20		150,000		181,604
Berkshire Hathaway, Inc.
3.20%, 02/11/15		600,000		627,067
4.25%, 01/15/21		500,000		558,272
Chubb Corp.
5.75%, 05/15/18		400,000		478,377
6.00%, 05/11/37		100,000		125,441
Cigna Corp.
2.75%, 11/15/16		450,000		474,214
5.38%, 02/15/42 (b)		150,000		169,305
CNA Financial Corp.
7.35%, 11/15/19		325,000		406,821
Genworth Financial, Inc.
8.63%, 12/15/16		300,000		363,009
6.52%, 05/22/18		500,000		574,001
6.50%, 06/15/34		500,000		531,742
Hartford Financial Services Group, Inc.
6.30%, 03/15/18		200,000		235,388
6.00%, 01/15/19		100,000		117,979
4.30%, 04/15/43		350,000		331,452
ING US, Inc.
2.90%, 02/15/18		200,000		203,866
Lincoln National Corp.
6.25%, 02/15/20		300,000		357,017
MetLife, Inc.
6.82%, 08/15/18		450,000		558,659
4.75%, 02/08/21		100,000		113,565
Principal Financial Group, Inc.
6.05%, 10/15/36		300,000		370,823
Prudential Financial, Inc.
4.75%, 09/17/15		200,000		216,768
4.50%, 11/16/21		250,000		274,371
5.80%, 11/16/41		250,000		288,179
The Allstate Corp.
7.45%, 05/16/19		125,000		162,928
5.55%, 05/09/35		296,000		354,844
Travelers Co., Inc.
5.90%, 06/02/19		300,000		368,017
6.75%, 06/20/36		150,000		203,962
UnitedHealth Group, Inc.
1.40%, 10/15/17		100,000		99,995
2.75%, 02/15/23 (b)		150,000		145,200
5.80%, 03/15/36		350,000		410,572
3.95%, 10/15/42 (b)		250,000		230,037
WellPoint, Inc.
3.30%, 01/15/23		500,000		497,317
4.65%, 01/15/43		150,000		149,526
				11,908,992
Other Financial 0.0%
ORIX Corp.
4.71%, 04/27/15		350,000		369,384
Real Estate Investment Trust 0.5%
AvalonBay Communities, Inc.
2.95%, 09/15/22 (b)		150,000		145,770
Boston Properties LP
4.13%, 05/15/21		300,000		322,158
Digital Realty Trust LP
5.88%, 02/01/20		250,000		289,224
Duke Realty LP
7.38%, 02/15/15		400,000		440,049
Federal Realty Investment Trust
2.75%, 06/01/23 (b)		200,000		190,452
HCP, Inc.
6.70%, 01/30/18		400,000		480,728
Health Care REIT, Inc.
3.63%, 03/15/16		400,000		423,798
4.13%, 04/01/19 (b)		200,000		216,064
Kilroy Realty LP
3.80%, 01/15/23 (b)		200,000		199,117
Kimco Realty Corp.
4.30%, 02/01/18 (b)		250,000		275,891
Piedmont Operating Partnership LP
3.40%, 06/01/23 (b)(c)		150,000		144,621
ProLogis, Inc.
6.63%, 05/15/18		337,000		402,691
Regency Centers LP
4.80%, 04/15/21		150,000		164,754
Simon Property Group LP
5.25%, 12/01/16 (b)		300,000		339,013
2.80%, 01/30/17 (b)		200,000		208,859
Ventas Realty LP
4.75%, 06/01/21 (b)		100,000		109,442
				4,352,631
				67,095,480
Industrial 12.1%
Basic Industry 1.2%
Airgas, Inc.
1.65%, 02/15/18 (b)		350,000		346,225
Alcoa, Inc.
5.55%, 02/01/17		300,000		325,085
5.87%, 02/23/22		250,000		257,098
Barrick Gold Corp.
2.50%, 05/01/18 (c)		150,000		148,214
4.10%, 05/01/23 (c)		250,000		238,125
Barrick North America Finance LLC
5.75%, 05/01/43 (c)		900,000		846,418

3

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
BHP Billiton Finance (USA) Ltd.
1.13%, 11/21/14		250,000		252,363
3.25%, 11/21/21		200,000		206,966
4.13%, 02/24/42		250,000		246,917
CF Industries Holdings, Inc.
7.13%, 05/01/20		150,000		186,371
Cliffs Natural Resources, Inc.
4.80%, 10/01/20		150,000		144,737
Domtar Corp.
10.75%, 06/01/17		250,000		318,421
Eastman Chemical Co.
3.60%, 08/15/22 (b)		350,000		358,482
Ecolab, Inc.
3.00%, 12/08/16		200,000		212,388
EI Du Pont de Nemours & Co.
4.75%, 03/15/15		750,000		805,297
Freeport-McMoRan Copper & Gold, Inc.
2.15%, 03/01/17		500,000		505,732
International Paper Co.
7.95%, 06/15/18		100,000		127,275
7.50%, 08/15/21		250,000		322,443
7.30%, 11/15/39		400,000		529,180
Lubrizol Corp.
8.88%, 02/01/19		200,000		272,007
LyondellBasell Industries NV
6.00%, 11/15/21 (b)		500,000		592,098
Monsanto Co.
2.75%, 04/15/16		100,000		105,266
Newmont Mining Corp.
4.88%, 03/15/42 (b)		250,000		215,651
Potash Corp. of Saskatchewan, Inc.
6.50%, 05/15/19		375,000		460,606
Rio Tinto Finance (USA) Ltd.
3.50%, 11/02/20		250,000		258,664
7.13%, 07/15/28		200,000		262,167
4.75%, 03/22/42 (b)		500,000		507,938
Southern Copper Corp.
5.25%, 11/08/42		200,000		174,366
Teck Resources Ltd.
4.75%, 01/15/22 (b)		300,000		316,578
The Dow Chemical Co.
5.90%, 02/15/15		200,000		217,148
4.13%, 11/15/21 (b)		350,000		372,790
7.38%, 11/01/29		325,000		426,107
Vale Overseas Ltd.
4.38%, 01/11/22		375,000		374,340
5.63%, 09/11/42		500,000		468,677
Valspar Corp.
4.20%, 01/15/22 (b)		150,000		158,838
				11,560,978
Capital Goods 1.1%
Boeing Capital Corp.
3.25%, 10/27/14		300,000		311,470
Boeing Co.
6.88%, 03/15/39		100,000		139,698
Caterpillar Financial Services Corp.
0.70%, 11/06/15		250,000		250,329
1.25%, 11/06/17		700,000		695,484
Deere & Co.
5.38%, 10/16/29		550,000		660,872
Eaton Corp.
0.95%, 11/02/15		150,000		150,089
1.50%, 11/02/17		200,000		198,046
2.75%, 11/02/22		250,000		243,202
4.00%, 11/02/32		150,000		147,036
General Electric Co.
0.85%, 10/09/15		100,000		100,290
5.25%, 12/06/17		750,000		867,376
2.70%, 10/09/22		150,000		147,738
4.13%, 10/09/42		250,000		239,555
Honeywell International, Inc.
5.00%, 02/15/19		350,000		410,124
5.38%, 03/01/41		250,000		303,027
Ingersoll-Rand Global Holding Co. Ltd.
6.88%, 08/15/18		150,000		180,792
John Deere Capital Corp.
1.70%, 01/15/20		150,000		145,272
Joy Global, Inc.
6.00%, 11/15/16		150,000		171,315
L-3 Communications Corp.
5.20%, 10/15/19		500,000		559,840
4.75%, 07/15/20		250,000		270,250
4.95%, 02/15/21 (b)		250,000		272,582
Lockheed Martin Corp.
4.25%, 11/15/19		100,000		111,865
6.15%, 09/01/36		200,000		242,362
5.50%, 11/15/39		100,000		112,543
Owens Corning
4.20%, 12/15/22 (b)		500,000		514,932
Raytheon Co.
3.13%, 10/15/20		200,000		206,514
4.88%, 10/15/40		250,000		268,813
Republic Services, Inc.
4.75%, 05/15/23 (b)		500,000		548,356
United Technologies Corp.
1.80%, 06/01/17		250,000		255,226
6.13%, 02/01/19		500,000		611,224
4.50%, 06/01/42		500,000		518,253
Waste Management, Inc.
7.00%, 07/15/28		200,000		258,629
				10,113,104
Communications 2.1%
America Movil, S.A.B. de CV
3.63%, 03/30/15		300,000		313,683
5.00%, 10/16/19		450,000		501,654
4.38%, 07/16/42		300,000		267,685
AT&T, Inc.
5.10%, 09/15/14		500,000		528,493
0.90%, 02/12/16		500,000		499,311
3.00%, 02/15/22		350,000		349,592
BellSouth Corp.
6.00%, 11/15/34		750,000		814,843
British Telecommunications PLC
2.00%, 06/22/15		300,000		307,326
CBS Corp.
5.75%, 04/15/20		275,000		318,889
7.88%, 07/30/30		325,000		430,431
Comcast Corp.
5.90%, 03/15/16		600,000		681,185
5.70%, 07/01/19		200,000		242,099
2.85%, 01/15/23		250,000		247,400
6.50%, 11/15/35		175,000		222,122
Deutsche Telekom International Finance BV
6.00%, 07/08/19		400,000		483,390
DIRECTV Holdings LLC
3.13%, 02/15/16		500,000		524,731
6.00%, 08/15/40 (b)		350,000		375,077

4 

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Discovery Communications, Inc.
5.63%, 08/15/19		50,000		59,067
France Telecom S.A.
4.38%, 07/08/14		125,000		129,603
8.50%, 03/01/31 (a)		200,000		286,832
5.38%, 01/13/42		100,000		107,277
Grupo Televisa S.A.
6.63%, 03/18/25		400,000		491,745
NBCUniversal Media LLC
3.65%, 04/30/15		125,000		132,092
4.38%, 04/01/21		275,000		307,379
5.95%, 04/01/41		150,000		181,348
4.45%, 01/15/43		250,000		249,214
News America, Inc.
5.30%, 12/15/14		250,000		267,306
6.40%, 12/15/35		250,000		296,265
6.15%, 03/01/37		450,000		520,101
Pacific Bell Telephone Co.
7.13%, 03/15/26		750,000		962,134
Rogers Communications, Inc.
3.00%, 03/15/23 (b)		400,000		389,863
TCI Communication, Inc.
7.13%, 02/15/28		350,000		461,152
Telecom Italia Capital S.A.
7.00%, 06/04/18		200,000		233,067
7.72%, 06/04/38		150,000		162,984
Telefonica Emisiones S.A.U.
3.99%, 02/16/16		500,000		523,813
6.42%, 06/20/16		350,000		392,385
5.13%, 04/27/20		400,000		428,080
7.05%, 06/20/36		100,000		114,903
Telefonos de Mexico, S.A.B. de CV
5.50%, 11/15/19		900,000		1,031,137
Time Warner Cable, Inc.
5.85%, 05/01/17		600,000		691,459
8.25%, 04/01/19		200,000		257,911
4.50%, 09/15/42 (b)		500,000		447,699
Verizon Communications, Inc.
1.10%, 11/01/17		500,000		492,324
2.45%, 11/01/22 (b)		900,000		843,785
5.85%, 09/15/35		650,000		738,941
Vodafone Group PLC
4.63%, 07/15/18		825,000		934,380
6.15%, 02/27/37		250,000		298,711
				19,540,868
Consumer Cyclical 1.6%
Amazon.com, Inc.
2.50%, 11/29/22 (b)		200,000		190,125
CVS Caremark Corp.
3.25%, 05/18/15		500,000		523,140
4.75%, 05/18/20 (b)		200,000		226,779
Daimler Finance North America LLC
2.30%, 01/09/15		250,000		254,827
Darden Restaurants, Inc.
3.35%, 11/01/22 (b)		150,000		144,297
eBay, Inc.
1.63%, 10/15/15		400,000		409,644
Ford Motor Co.
7.45%, 07/16/31		100,000		126,496
4.75%, 01/15/43		200,000		187,067
Ford Motor Credit Co. LLC
3.88%, 01/15/15		250,000		259,393
2.75%, 05/15/15		1,250,000		1,279,221
6.63%, 08/15/17		750,000		873,050
4.25%, 09/20/22		550,000		566,371
Historic TW, Inc.
6.88%, 06/15/18		500,000		613,323
Home Depot, Inc.
5.88%, 12/16/36		500,000		612,528
Lowe’s Cos., Inc.
3.12%, 04/15/22 (b)		300,000		304,882
4.65%, 04/15/42 (b)		200,000		206,431
Macy’s Retail Holdings, Inc.
5.75%, 07/15/14		350,000		368,822
6.90%, 04/01/29		200,000		243,688
5.13%, 01/15/42 (b)		250,000		255,860
Marriott International, Inc.
3.00%, 03/01/19 (b)		350,000		362,364
McDonald’s Corp.
2.63%, 01/15/22		400,000		399,076
3.70%, 02/15/42		200,000		185,009
NIKE, Inc.
2.25%, 05/01/23 (b)		200,000		192,305
3.63%, 05/01/43 (b)		100,000		92,847
Nordstrom, Inc.
6.25%, 01/15/18		300,000		355,728
QVC, Inc.
5.13%, 07/02/22		300,000		321,102
Target Corp.
6.35%, 11/01/32		500,000		640,197
The Gap, Inc.
5.95%, 04/12/21 (b)		400,000		465,119
The Walt Disney Co.
5.63%, 09/15/16		300,000		344,921
4.13%, 12/01/41		100,000		99,601
Time Warner, Inc.
4.88%, 03/15/20		400,000		453,408
5.38%, 10/15/41		100,000		106,609
Toyota Motor Credit Corp.
3.40%, 09/15/21		100,000		104,591
VF Corp.
6.45%, 11/01/37		50,000		61,626
Viacom, Inc.
3.88%, 12/15/21		350,000		366,575
6.88%, 04/30/36		750,000		912,505
Wal-Mart Stores, Inc.
5.80%, 02/15/18		300,000		358,543
3.25%, 10/25/20		500,000		529,829
5.88%, 04/05/27		275,000		349,775
5.25%, 09/01/35		100,000		114,303
6.50%, 08/15/37		150,000		197,979
6.20%, 04/15/38		125,000		160,163
				14,820,119
Consumer Non-Cyclical 3.0%
AbbVie, Inc.
2.00%, 11/06/18		500,000		499,460
4.40%, 11/06/42 (c)		100,000		98,071
Actavis, Inc.
1.88%, 10/01/17		200,000		198,877
3.25%, 10/01/22 (b)		1,300,000		1,279,892
4.63%, 10/01/42 (b)		250,000		244,718
Altria Group, Inc.
9.70%, 11/10/18		169,000		231,034
2.85%, 08/09/22		200,000		190,851
4.25%, 08/09/42		250,000		221,396
AmerisourceBergen Corp.
4.88%, 11/15/19		600,000		683,902
3.50%, 11/15/21 (b)		500,000		522,305

5

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Amgen, Inc.
2.50%, 11/15/16		500,000		521,142
5.70%, 02/01/19		500,000		590,789
3.63%, 05/15/22 (b)		150,000		156,721
Anheuser-Busch InBev Worldwide, Inc.
5.38%, 11/15/14		500,000		533,195
1.38%, 07/15/17		800,000		799,169
5.00%, 04/15/20		600,000		699,985
4.38%, 02/15/21		150,000		167,844
3.75%, 07/15/42		200,000		182,477
Archer-Daniels-Midland Co.
4.48%, 03/01/21 (a)		300,000		333,603
AstraZeneca PLC
6.45%, 09/15/37		500,000		636,642
Baxter International, Inc.
2.40%, 08/15/22		250,000		238,895
Boston Scientific Corp.
4.50%, 01/15/15		200,000		211,241
Bristol-Myers Squibb Co.
3.25%, 08/01/42		250,000		213,314
ConAgra Foods, Inc.
1.90%, 01/25/18		250,000		251,539
3.20%, 01/25/23 (b)		100,000		98,730
Covidien International Finance
6.00%, 10/15/17		400,000		471,975
Diageo Capital PLC
1.13%, 04/29/18		250,000		245,109
2.63%, 04/29/23 (b)		300,000		288,299
5.88%, 09/30/36		150,000		183,072
Express Scripts Holding Co.
2.10%, 02/12/15		500,000		510,650
2.65%, 02/15/17		250,000		259,460
4.75%, 11/15/21		450,000		503,899
General Mills, Inc.
5.20%, 03/17/15		250,000		269,784
5.70%, 02/15/17		500,000		575,751
GlaxoSmithKline Capital, Inc.
6.38%, 05/15/38		400,000		515,370
Hasbro, Inc.
6.30%, 09/15/17		100,000		115,273
Hospira, Inc.
6.05%, 03/30/17		230,000		254,154
Johnson & Johnson
4.95%, 05/15/33		100,000		116,761
4.85%, 05/15/41		200,000		229,217
Kellogg Co.
7.45%, 04/01/31		250,000		337,146
Kimberly-Clark Corp.
7.50%, 11/01/18		325,000		423,106
Koninklijke Philips Electronics NV
5.00%, 03/15/42		300,000		320,567
Kraft Foods Group, Inc.
5.38%, 02/10/20		392,000		457,123
5.00%, 06/04/42		300,000		315,689
Lorillard Tobacco Co.
2.30%, 08/21/17		350,000		351,521
6.88%, 05/01/20		100,000		119,896
Mead Johnson Nutrition Co.
3.50%, 11/01/14		300,000		309,906
Medtronic, Inc.
3.13%, 03/15/22 (b)		250,000		256,411
Merck & Co., Inc.
5.00%, 06/30/19		200,000		234,742
3.88%, 01/15/21 (b)		700,000		767,082
Molson Coors Brewing Co.
3.50%, 05/01/22		100,000		102,424
Mondelez International, Inc.
4.13%, 02/09/16		500,000		539,907
6.13%, 02/01/18		400,000		471,408
5.38%, 02/10/20		358,000		415,809
PepsiCo, Inc.
5.00%, 06/01/18		350,000		403,554
4.50%, 01/15/20		350,000		397,542
4.88%, 11/01/40		500,000		536,001
Pfizer, Inc.
5.35%, 03/15/15		350,000		378,538
6.20%, 03/15/19		500,000		617,380
7.20%, 03/15/39		250,000		353,857
Philip Morris International, Inc.
1.13%, 08/21/17		250,000		247,086
2.50%, 08/22/22		100,000		96,038
3.88%, 08/21/42		300,000		271,074
Procter & Gamble Co.
4.95%, 08/15/14		600,000		632,903
4.70%, 02/15/19		650,000		753,061
Reynolds American, Inc.
1.05%, 10/30/15		100,000		100,296
3.25%, 11/01/22		100,000		97,343
4.75%, 11/01/42		100,000		94,128
Safeway, Inc.
7.25%, 02/01/31		500,000		575,226
Sanofi
1.25%, 04/10/18		250,000		246,614
Sanofi-Aventis S.A.
2.63%, 03/29/16		800,000		840,235
Teva Pharmaceutical Finance Co. LLC
6.15%, 02/01/36		250,000		312,995
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21		200,000		208,329
The Coca-Cola Co.
3.15%, 11/15/20		200,000		212,485
The Kroger Co.
3.90%, 10/01/15		200,000		213,064
3.40%, 04/15/22 (b)		150,000		152,525
5.40%, 07/15/40 (b)		50,000		53,110
Thermo Fisher Scientific, Inc.
3.20%, 03/01/16		100,000		104,951
Zimmer Holdings, Inc.
5.75%, 11/30/39		400,000		469,400
Zoetis, Inc.
4.70%, 02/01/43 (b)		100,000		100,010
				28,235,048
Energy 1.6%
Anadarko Petroleum Corp.
6.38%, 09/15/17		500,000		590,117
6.45%, 09/15/36		100,000		122,184
Apache Corp.
6.90%, 09/15/18		350,000		435,660
6.00%, 01/15/37		150,000		177,890
Baker Hughes, Inc.
7.50%, 11/15/18		100,000		128,887
5.13%, 09/15/40		150,000		170,302
BP Capital Markets PLC
1.85%, 05/05/17		150,000		152,075
1.38%, 05/10/18		250,000		245,694
3.56%, 11/01/21		600,000		625,967
3.25%, 05/06/22		250,000		252,315
2.75%, 05/10/23		700,000		668,476

6 

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Canadian Natural Resources Ltd.
5.70%, 05/15/17		250,000		288,292
6.25%, 03/15/38		200,000		236,900
Halliburton Co.
7.45%, 09/15/39		225,000		324,910
Hess Corp.
8.13%, 02/15/19		300,000		386,618
7.30%, 08/15/31		300,000		376,418
7.13%, 03/15/33		84,000		104,432
Husky Energy, Inc.
7.25%, 12/15/19		163,000		207,214
Kerr-McGee Corp.
6.95%, 07/01/24		250,000		308,739
Marathon Oil Corp.
0.90%, 11/01/15		100,000		99,964
2.80%, 11/01/22 (b)		200,000		193,148
Nabors Industries, Inc.
6.15%, 02/15/18		350,000		398,236
Nexen, Inc.
6.20%, 07/30/19		125,000		151,688
5.88%, 03/10/35		300,000		345,494
Noble Energy, Inc.
8.25%, 03/01/19		100,000		129,557
6.00%, 03/01/41 (b)		250,000		296,618
Occidental Petroleum Corp.
4.13%, 06/01/16		200,000		218,967
Petrohawk Energy Corp.
7.88%, 06/01/15 (b)		650,000		664,462
7.25%, 08/15/18 (b)		300,000		334,125
Phillips 66
5.88%, 05/01/42		150,000		175,085
Shell International Finance BV
5.20%, 03/22/17		500,000		574,194
3.63%, 08/21/42		250,000		231,927
Suncor Energy, Inc.
6.50%, 06/15/38		500,000		614,729
Tosco Corp.
7.80%, 01/01/27		750,000		1,051,563
Total Capital S.A.
2.30%, 03/15/16		150,000		155,865
4.13%, 01/28/21		350,000		387,435
Transocean, Inc.
4.95%, 11/15/15		200,000		216,725
6.00%, 03/15/18		300,000		344,359
6.38%, 12/15/21		500,000		584,492
Valero Energy Corp.
9.38%, 03/15/19		250,000		339,005
10.50%, 03/15/39		200,000		322,248
Weatherford International Ltd.
4.50%, 04/15/22 (b)		500,000		515,301
XTO Energy, Inc.
6.75%, 08/01/37		300,000		436,673
				14,584,950
Other Industrial 0.0%
Thomas & Betts Corp.
5.63%, 11/15/21		250,000		297,910
Technology 1.1%
Apple, Inc.
0.45%, 05/03/16		100,000		99,390
1.00%, 05/03/18		200,000		196,487
2.40%, 05/03/23		300,000		286,780
3.85%, 05/04/43		100,000		92,163
Arrow Electronics, Inc.
3.38%, 11/01/15		250,000		259,112
3.00%, 03/01/18		200,000		203,441
4.50%, 03/01/23 (b)		500,000		505,181
Cisco Systems, Inc.
5.50%, 02/22/16		700,000		788,101
4.45%, 01/15/20		800,000		906,750
5.90%, 02/15/39		150,000		184,971
Fiserv, Inc.
3.13%, 06/15/16		250,000		262,497
Harris Corp.
6.15%, 12/15/40		150,000		172,694
Hewlett-Packard Co.
2.60%, 09/15/17		300,000		305,348
4.65%, 12/09/21		350,000		361,045
6.00%, 09/15/41		400,000		404,930
Intel Corp.
1.95%, 10/01/16		250,000		258,388
International Business Machines Corp.
7.63%, 10/15/18		700,000		911,180
5.60%, 11/30/39		250,000		303,385
Microsoft Corp.
2.95%, 06/01/14		150,000		153,940
5.30%, 02/08/41		150,000		178,248
Motorola Solutions, Inc.
3.50%, 03/01/23		500,000		490,058
Oracle Corp.
3.75%, 07/08/14		800,000		828,759
5.25%, 01/15/16		100,000		111,580
2.50%, 10/15/22		1,000,000		960,625
5.38%, 07/15/40		100,000		116,415
Science Applications International Corp.
5.50%, 07/01/33		150,000		151,286
Xerox Corp.
4.25%, 02/15/15		800,000		840,725
				10,333,479
Transportation 0.4%
American Airlines Pass-Through Trust
4.00%, 07/15/25		200,000		201,500
Burlington Northern Santa Fe LLC
5.65%, 05/01/17		300,000		346,052
3.05%, 03/15/22 (b)		500,000		505,061
Canadian National Railway Co.
6.20%, 06/01/36		100,000		130,733
CSX Corp.
3.70%, 10/30/20 (b)		500,000		532,472
4.10%, 03/15/44 (b)		400,000		371,010
FedEx Corp.
2.63%, 08/01/22		200,000		192,706
3.88%, 08/01/42		200,000		183,791
Norfolk Southern Corp.
5.90%, 06/15/19		300,000		363,640
Ryder System, Inc.
3.15%, 03/02/15		200,000		206,964
Southwest Airlines Co.
5.25%, 10/01/14		500,000		526,442
5.13%, 03/01/17		200,000		220,041
United Parcel Service, Inc.
6.20%, 01/15/38		150,000		196,320
				3,976,732
				113,463,188

7

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Utilities 2.4%
Electric 1.5%
Alabama Power Co.
4.10%, 01/15/42		100,000		96,898
Ameren Illinois Co.
2.70%, 09/01/22 (b)		400,000		394,026
Appalachian Power Co.
6.38%, 04/01/36		100,000		122,980
7.00%, 04/01/38		300,000		394,109
Commonwealth Edison Co.
1.95%, 09/01/16 (b)		500,000		515,714
Cons Edison Co. of New York, Inc.
5.30%, 03/01/35		350,000		407,307
Consumers Energy Co.
3.95%, 05/15/43		400,000		388,423
Dominion Resources, Inc.
4.45%, 03/15/21		450,000		503,725
5.25%, 08/01/33 (b)		500,000		562,199
Duke Energy Carolinas LLC
4.30%, 06/15/20		100,000		112,806
6.45%, 10/15/32		350,000		447,161
Duke Energy Florida, Inc.
4.55%, 04/01/20		750,000		853,171
Duke Energy Progress, Inc.
4.10%, 05/15/42 (b)		250,000		242,204
Exelon Generation Co. LLC
5.20%, 10/01/19		200,000		225,024
5.60%, 06/15/42 (b)		300,000		318,385
First Energy Corp.
4.25%, 03/15/23 (b)		1,000,000		987,722
7.38%, 11/15/31		150,000		169,754
Florida Power & Light Co.
6.20%, 06/01/36		500,000		645,731
Georgia Power Co.
4.75%, 09/01/40		200,000		208,790
National Rural Utilities Cooperative Finance Corp.
3.05%, 03/01/16		500,000		527,871
Pacific Gas & Electric Co.
3.50%, 10/01/20 (b)		200,000		214,896
6.05%, 03/01/34		300,000		373,967
5.80%, 03/01/37		400,000		479,358
Pacificorp
5.50%, 01/15/19		150,000		178,952
6.00%, 01/15/39		500,000		632,162
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)		400,000		390,761
PSEG Power LLC
5.13%, 04/15/20		150,000		168,293
8.63%, 04/15/31		500,000		726,147
San Diego Gas & Electric Co.
4.50%, 08/15/40		250,000		269,768
Sierra Pacific Power Co.
6.00%, 05/15/16		200,000		228,553
Southern California Edison Co.
5.50%, 08/15/18		500,000		599,270
4.50%, 09/01/40 (b)		275,000		291,111
The Southern Co.
2.38%, 09/15/15		800,000		828,471
TransAlta Corp.
4.50%, 11/15/22 (b)		250,000		249,328
Union Electric Co.
3.90%, 09/15/42 (b)		200,000		191,594
Westar Energy, Inc.
4.13%, 03/01/42 (b)		100,000		100,095
				14,046,726
Natural Gas 0.9%
CenterPoint Energy Resources Corp.
5.85%, 01/15/41 (b)		250,000		311,841
El Paso Pipeline Partners Operating Co., LLC
4.70%, 11/01/42 (b)		100,000		95,252
Energy Transfer Partners LP
9.00%, 04/15/19		187,000		244,288
5.20%, 02/01/22 (b)		500,000		551,664
6.63%, 10/15/36		550,000		629,827
5.15%, 02/01/43 (b)		500,000		484,522
Enterprise Products Operating LP
6.30%, 09/15/17		700,000		831,303
4.85%, 08/15/42 (b)		250,000		250,021
Kinder Morgan Energy Partners LP
6.00%, 02/01/17		300,000		343,906
6.85%, 02/15/20		400,000		495,901
6.95%, 01/15/38		250,000		309,566
5.00%, 08/15/42 (b)		200,000		198,497
Magellan Midstream Partners LP
4.20%, 12/01/42 (b)		250,000		232,080
Nisource Finance Corp.
5.25%, 02/15/43 (b)		300,000		312,421
Plains All American Pipeline LP
3.95%, 09/15/15		250,000		267,414
Sempra Energy
6.15%, 06/15/18		500,000		601,673
Southern Natural Gas Co.
5.90%, 04/01/17 (c)		150,000		174,351
Southwest Gas Corp.
3.88%, 04/01/22 (b)		100,000		107,471
TransCanada PipeLines Ltd.
6.50%, 08/15/18		325,000		399,671
6.20%, 10/15/37		150,000		184,958
Williams Partners LP
7.25%, 02/01/17		250,000		297,487
4.13%, 11/15/20 (b)		500,000		531,948
				7,856,062
Other Utilities 0.0%
Veolia Environment
6.00%, 06/01/18		250,000		295,159
				22,197,947
Total Corporate Bonds
(Cost $193,601,269)				202,756,615
U.S. Government and Government Agencies 44.8% of net assets
U.S. Government Agency Securities 8.7%
Egypt Government AID Bonds
4.45%, 09/15/15		1,000,000		1,089,941
Fannie Mae
0.50%, 05/27/15		1,000,000		1,003,090
4.38%, 10/15/15		2,000,000		2,186,828
2.38%, 04/11/16		1,000,000		1,052,971
1.25%, 09/28/16		3,000,000		3,059,265
5.38%, 06/12/17		1,000,000		1,178,129
1.20%, 07/17/17 (b)		1,000,000		993,229
0.88%, 08/28/17		2,500,000		2,486,955
1.50%, 10/17/19 (b)		4,000,000		3,927,668

8 

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
6.63%, 11/15/30		500,000		723,558
Federal Farm Credit Bank
4.88%, 01/17/17		500,000		571,076
Federal Home Loan Bank
0.00%, 06/07/13 (e)		16,000,000		15,999,984
0.00%, 06/14/13 (e)		9,000,000		8,999,973
0.00%, 06/21/13 (e)		3,460,000		3,459,983
0.00%, 06/28/13 (e)		10,000,000		9,999,930
5.50%, 08/13/14		1,000,000		1,064,026
0.25%, 02/20/15		1,250,000		1,248,580
5.38%, 05/18/16		1,000,000		1,142,278
0.38%, 06/24/16		1,000,000		993,505
1.00%, 11/09/17 (b)		1,000,000		994,982
5.00%, 11/17/17		750,000		880,170
5.38%, 05/15/19		500,000		611,946
5.50%, 07/15/36		500,000		650,411
Freddie Mac
0.63%, 12/29/14		2,500,000		2,513,277
4.75%, 11/17/15		2,000,000		2,211,892
2.00%, 08/25/16		1,000,000		1,043,802
2.00%, 08/14/17 (b)		1,000,000		1,002,972
0.88%, 03/07/18		2,500,000		2,472,937
4.88%, 06/13/18		2,000,000		2,360,420
3.00%, 07/31/19 (b)		3,000,000		3,012,900
2.38%, 01/13/22		1,500,000		1,528,164
Tennessee Valley Authority
4.65%, 06/15/35		1,000,000		1,123,016
				81,587,858
U.S. Treasury Obligations 36.1%
U.S. Treasury Bonds
7.25%, 05/15/16		1,000,000		1,196,953
8.13%, 08/15/19		1,000,000		1,408,360
6.00%, 02/15/26		3,500,000		4,848,046
6.13%, 11/15/27		400,000		566,812
5.25%, 02/15/29		1,750,000		2,302,617
4.50%, 02/15/36		1,000,000		1,232,813
5.00%, 05/15/37		500,000		660,235
3.50%, 02/15/39		1,000,000		1,052,656
4.25%, 05/15/39		1,000,000		1,190,156
4.38%, 11/15/39		500,000		606,485
4.63%, 02/15/40		2,500,000		3,151,953
4.38%, 05/15/40		1,750,000		2,124,063
3.88%, 08/15/40		5,300,000		5,931,861
4.25%, 11/15/40		1,650,000		1,963,500
4.75%, 02/15/41		1,450,000		1,864,382
4.38%, 05/15/41		1,250,000		1,517,774
3.75%, 08/15/41		2,000,000		2,188,126
3.13%, 11/15/41		2,285,000		2,221,806
3.13%, 02/15/42		2,230,000		2,166,585
2.75%, 08/15/42		1,925,000		1,725,582
2.75%, 11/15/42		2,000,000		1,790,626
3.13%, 02/15/43		1,000,000		968,281
U.S. Treasury Notes
2.63%, 06/30/14		850,000		872,512
0.63%, 07/15/14		1,000,000		1,005,117
0.13%, 07/31/14		2,500,000		2,498,928
2.63%, 07/31/14		1,000,000		1,028,438
0.50%, 08/15/14		3,750,000		3,764,797
4.25%, 08/15/14		1,000,000		1,048,906
2.38%, 08/31/14		2,575,000		2,645,110
0.25%, 09/15/14		4,000,000		4,003,284
0.50%, 10/15/14		10,000,000		10,040,630
2.38%, 10/31/14		2,600,000		2,678,712
4.25%, 11/15/14		4,750,000		5,025,908
2.13%, 11/30/14		3,500,000		3,598,710
0.25%, 12/15/14		1,000,000		1,000,313
2.63%, 12/31/14		1,530,000		1,587,554
0.25%, 01/15/15		8,000,000		8,000,000
2.25%, 01/31/15		2,050,000		2,117,666
0.25%, 02/15/15		2,000,000		1,999,298
4.00%, 02/15/15		2,000,000		2,126,328
0.38%, 03/15/15		6,000,000		6,010,080
2.50%, 04/30/15		5,800,000		6,042,875
0.25%, 05/15/15		8,250,000		8,241,948
4.13%, 05/15/15		1,000,000		1,074,024
2.13%, 05/31/15		7,000,000		7,252,112
0.38%, 06/15/15		4,265,000		4,269,999
4.25%, 08/15/15		1,000,000		1,085,469
1.25%, 08/31/15		4,000,000		4,080,624
0.25%, 09/15/15		5,000,000		4,987,110
1.25%, 09/30/15		2,000,000		2,040,938
0.25%, 10/15/15		3,500,000		3,489,608
0.38%, 11/15/15		2,000,000		1,999,062
4.50%, 11/15/15		1,000,000		1,099,766
1.38%, 11/30/15		1,000,000		1,024,063
0.25%, 12/15/15		1,000,000		995,860
2.13%, 12/31/15		2,700,000		2,818,336
2.00%, 01/31/16		2,250,000		2,342,637
0.38%, 02/15/16		4,000,000		3,991,876
4.50%, 02/15/16		1,000,000		1,108,594
2.13%, 02/29/16		1,000,000		1,045,469
0.38%, 03/15/16		2,000,000		1,994,844
0.25%, 04/15/16		8,000,000		7,946,248
2.63%, 04/30/16		1,000,000		1,061,094
0.25%, 05/15/16		6,500,000		6,452,264
5.13%, 05/15/16		1,000,000		1,134,922
3.25%, 05/31/16		1,000,000		1,081,016
3.25%, 06/30/16		1,000,000		1,082,656
1.50%, 07/31/16		1,000,000		1,029,219
3.25%, 07/31/16		1,850,000		2,006,382
4.88%, 08/15/16		1,000,000		1,136,094
1.00%, 08/31/16		1,500,000		1,519,571
3.00%, 08/31/16		2,100,000		2,262,422
3.00%, 09/30/16		1,000,000		1,078,672
1.00%, 10/31/16		2,000,000		2,024,532
4.63%, 11/15/16		1,000,000		1,135,781
2.75%, 11/30/16		5,000,000		5,360,155
0.88%, 12/31/16		3,750,000		3,775,196
3.13%, 01/31/17		3,700,000		4,024,619
0.88%, 02/28/17		4,500,000		4,524,610
1.00%, 03/31/17		1,500,000		1,513,829
3.25%, 03/31/17		2,000,000		2,189,688
3.13%, 04/30/17		5,250,000		5,728,243
4.50%, 05/15/17		3,000,000		3,435,234
0.63%, 05/31/17		2,500,000		2,482,618
2.38%, 07/31/17		3,500,000		3,721,210
0.63%, 08/31/17		2,000,000		1,979,532
0.63%, 09/30/17		1,000,000		988,438
4.25%, 11/15/17		3,000,000		3,438,282
0.63%, 11/30/17		3,000,000		2,959,218
0.75%, 12/31/17		1,000,000		990,469
2.63%, 01/31/18		2,000,000		2,152,188
3.50%, 02/15/18		1,000,000		1,116,953
0.75%, 03/31/18		3,000,000		2,962,032
2.88%, 03/31/18		3,000,000		3,265,314
3.88%, 05/15/18		3,000,000		3,414,609
1.00%, 05/31/18		3,000,000		2,995,314
4.00%, 08/15/18		2,000,000		2,297,812

9

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
1.50%, 08/31/18		2,000,000		2,040,312
1.38%, 09/30/18		2,000,000		2,025,156
1.75%, 10/31/18		4,000,000		4,127,188
3.75%, 11/15/18		3,000,000		3,416,016
1.38%, 11/30/18		4,500,000		4,549,572
1.38%, 12/31/18		2,000,000		2,020,000
2.75%, 02/15/19		1,500,000		1,626,797
1.50%, 03/31/19		2,000,000		2,027,656
1.00%, 06/30/19		1,500,000		1,471,524
3.38%, 11/15/19		3,000,000		3,372,423
1.00%, 11/30/19		1,500,000		1,460,508
3.63%, 02/15/20		5,000,000		5,702,735
1.13%, 03/31/20		4,500,000		4,387,851
1.13%, 04/30/20		1,000,000		973,360
1.38%, 05/31/20		1,500,000		1,483,829
2.63%, 08/15/20		5,875,000		6,290,380
3.63%, 02/15/21		2,000,000		2,279,532
3.13%, 05/15/21		6,600,000		7,269,801
2.13%, 08/15/21		5,500,000		5,623,750
2.00%, 02/15/22		3,000,000		3,015,234
1.75%, 05/15/22		1,250,000		1,225,195
1.63%, 08/15/22		4,000,000		3,858,752
1.63%, 11/15/22		2,500,000		2,400,195
2.00%, 02/15/23		4,000,000		3,958,124
1.75%, 05/15/23		1,000,000		965,313
				338,554,816
Total U.S. Government and Government Agencies
(Cost $406,452,403)				420,142,674
Commercial Mortgage Backed Securities 1.7% of net assets
Banc of America Commercial Mortgage Trust
Series 2007-4 Class A4
5.74%, 02/10/51 (a)(b)		3,000,000		3,450,412
Banc of America Commercial Mortgage, Inc.
Series 2005-3 Class AJ
4.77%, 07/10/43 (a)(b)		1,100,000		1,096,734
Series 2006-3 Class AM
5.86%, 07/10/44 (a)(b)		800,000		844,296
Series 2007-1 Class A4
5.45%, 01/15/49 (b)		1,000,000		1,128,716
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (b)		2,237,000		2,446,349
Credit Suisse Mortgage Capital Certificates
Series 2006-C1 Class AM
5.40%, 02/15/39 (a)(b)		650,000		711,469
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)		800,000		903,926
GS Mortgage Securities Corp II
Series 2006-GG6 Class A4
5.55%, 04/10/38 (a)(b)		1,100,000		1,211,572
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2005-LDP5 Class AJ
5.32%, 12/15/44 (a)(b)		1,025,000		1,108,430
Series 2007-LD12 Class A3
5.93%, 02/15/51 (a)(b)		2,000,000		2,089,911
Series 2007-LD12-A Class A2
5.83%, 02/15/51 (b)		29,326		30,016
Merrill Lynch Mortgage Trust
Series 2005-LC1 Class AM
5.31%, 01/12/44 (a)(b)		700,000		765,729
Total Commercial Mortgage Backed Securities
(Cost $14,119,790)				15,787,560
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		1,743,322
Citibank Credit Card Issuance Trust
Series 2005-A2 Class A2
4.85%, 03/10/17 (b)		700,000		753,578
Discover Card Master Trust
Series 2012-A1 Class A1
0.81%, 08/15/17 (b)		600,000		602,981
Honda Auto Receivables Owner Trust
Series 2012-4 Class A3
0.52%, 08/18/16 (b)		200,000		200,014
Total Asset-Backed Obligations
(Cost $3,341,054)				3,299,895
Foreign Securities 4.9% of net assets
Foreign Agencies 1.5%
Austria 0.0%
Oesterreichische Kontrollbank AG
1.13%, 07/06/15		400,000		405,223
Canada 0.1%
Pemex Project Funding Master Trust
6.63%, 06/15/35		600,000		690,000
Cayman Islands 0.1%
Petrobras International Finance Co.
3.88%, 01/27/16		500,000		524,192
5.75%, 01/20/20		200,000		218,514
5.38%, 01/27/21		500,000		531,167
				1,273,873
Germany 0.7%
Kreditanstalt Fuer Wiederaufbau
1.25%, 10/26/15 (d)		1,000,000		1,018,200
2.63%, 02/16/16 (d)		1,000,000		1,054,089
4.88%, 01/17/17 (d)		850,000		972,198
4.50%, 07/16/18 (d)		1,900,000		2,199,898
4.00%, 01/27/20 (d)		250,000		284,998
2.75%, 09/08/20 (d)		750,000		791,878
				6,321,261
Japan 0.1%
Japan Finance Corp.
2.88%, 02/02/15		300,000		312,081
2.50%, 01/21/16		400,000		418,692
2.25%, 07/13/16		300,000		314,051
				1,044,824
Mexico 0.1%
Petroleos Mexicanos
4.88%, 03/15/15		425,000		450,288
5.50%, 01/21/21		500,000		557,500
				1,007,788

10 

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Netherlands 0.2%
Petrobras Global Finance BV
4.38%, 05/20/23		1,250,000		1,216,974
5.63%, 05/20/43		350,000		327,448
				1,544,422
Norway 0.1%
Statoil ASA
2.90%, 10/15/14		150,000		154,991
3.13%, 08/17/17		200,000		214,268
5.10%, 08/17/40		250,000		278,475
				647,734
Republic of Korea 0.1%
Export-Import Bank of Korea
4.00%, 01/11/17		600,000		643,696
Korea Development Bank
3.00%, 09/14/22		500,000		477,374
				1,121,070
				14,056,195
Foreign Local Government 0.5%
Canada 0.5%
Province of British Columbia
2.00%, 10/23/22		400,000		383,535
Province of Manitoba
1.13%, 06/01/18		650,000		643,247
Province of Ontario
4.00%, 10/07/19		400,000		449,944
4.40%, 04/14/20		975,000		1,118,832
Province of Quebec
5.13%, 11/14/16		450,000		514,402
7.50%, 09/15/29		650,000		942,401
				4,052,361
Sovereign 1.5%
Brazil 0.2%
Federative Republic of Brazil
6.00%, 01/17/17		500,000		569,500
4.88%, 01/22/21		250,000		281,875
8.88%, 04/15/24		675,000		995,625
5.63%, 01/07/41		500,000		558,750
				2,405,750
Chile 0.1%
Republic of Chile
3.88%, 08/05/20		600,000		652,500
3.63%, 10/30/42		200,000		182,000
				834,500
Colombia 0.1%
Republic of Colombia
7.38%, 09/18/37		650,000		892,125
Italy 0.2%
Republic of Italy
3.13%, 01/26/15		550,000		564,361
5.38%, 06/12/17		700,000		771,121
6.88%, 09/27/23		250,000		301,750
5.38%, 06/15/33		300,000		313,929
				1,951,161
Mexico 0.3%
United Mexican States
5.63%, 01/15/17		300,000		340,500
3.63%, 03/15/22		1,650,000		1,711,875
6.75%, 09/27/34		750,000		961,875
6.05%, 01/11/40		150,000		178,500
				3,192,750
Panama 0.1%
Republic of Panama
7.25%, 03/15/15		200,000		221,900
6.70%, 01/26/36		200,000		256,500
				478,400
Peru 0.1%
Republic of Peru
7.13%, 03/30/19		650,000		815,750
Poland 0.1%
Republic of Poland
5.13%, 04/21/21		750,000		855,000
South Africa 0.1%
Republic of South Africa
6.88%, 05/27/19		500,000		598,125
Turkey 0.2%
Republic of Turkey
5.63%, 03/30/21		1,000,000		1,170,000
7.38%, 02/05/25		500,000		658,750
4.88%, 04/16/43		500,000		497,500
				2,326,250
				14,349,811
Supranational 1.4%
African Development Bank
2.50%, 03/15/16		350,000		368,273
Asian Development Bank
2.50%, 03/15/16		1,150,000		1,211,766
5.59%, 07/16/18		500,000		601,133
European Bank for Reconstruction & Development
2.50%, 03/15/16		500,000		525,959
European Investment Bank
1.63%, 09/01/15		400,000		409,826
2.50%, 05/16/16		800,000		843,290
5.13%, 05/30/17		1,900,000		2,206,839
1.00%, 06/15/18		1,000,000		984,839
2.88%, 09/15/20		800,000		844,506
4.88%, 02/15/36		150,000		176,934
Inter-American Development Bank
2.25%, 07/15/15		500,000		519,509
1.13%, 03/15/17		500,000		504,604
3.88%, 09/17/19		500,000		570,906
International Bank for Reconstruction & Development
2.38%, 05/26/15		1,000,000		1,040,070
2.13%, 03/15/16		800,000		835,519
International Finance Corp.
2.75%, 04/20/15		350,000		365,583
2.25%, 04/11/16		500,000		523,682
Nordic Investment Bank
0.50%, 04/14/16		750,000		748,280
				13,281,518
Total Foreign Securities
(Cost $44,598,130)				45,739,885

11

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
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		1,398,873
California
GO (Build America Bonds) Series 2009
7.50%, 04/01/34		1,000,000		1,389,130
Catholic Health Initiatives
1.60%, 11/01/17		150,000		149,372
Connecticut
GO (Build America Bonds) Series 2010D
5.09%, 10/01/30		100,000		113,963
GO (Teachers’ Retirement Fund) Series 2008A
5.85%, 03/15/32		300,000		367,029
East Bay Municipal Utility District
Water System RB (Build America Bonds) Series 2010
5.87%, 06/01/40		700,000		885,871
Illinois
GO Bonds Series 2011
5.37%, 03/01/17		750,000		827,062
JobsOhio Beverage System
Statewide Senior Lien Liquor Profits RB Series 2013B
3.99%, 01/01/29		750,000		763,470
Maryland State Transportation Auth
RB (Build America Bonds) Series 2009B
5.89%, 07/01/43		100,000		125,836
Metropolitan Government of Nashville & Davidson Cnty
GO (Build America Bonds) Series 2010B
5.71%, 07/01/34		200,000		240,138
Metropolitan Transportation Authority
GO (Build America Bonds) Series 2010E
6.81%, 11/15/40		350,000		457,030
New Jersey State Turnpike Auth
RB (Build America Bonds) Series 2009F
7.41%, 01/01/40		100,000		144,784
RB (Build America Bonds) Series 2010A
7.10%, 01/01/41		700,000		980,728
New York City Municipal Water Finance Auth
Water and Sewer Systems Second General Resolution RB (Build America Bonds) Series 2011CC
5.88%, 06/15/44		150,000		189,596
President and Fellows of Harvard College
3.62%, 10/01/37		400,000		380,362
Texas State Transportation Commission
RB (Build America Bonds) Series 2010B
5.03%, 04/01/26		600,000		720,234
Total Municipal Bonds
(Cost $8,058,355)				9,133,478
	Number		Value
Security	of Shares		($)
Other Investment Company 0.5% of net assets
Money Market Fund 0.5%
State Street Institutional U.S. Government Money Market Fund		5,026,428		5,026,428
Total Other Investment Company
(Cost $5,026,428)				5,026,428
End of Investments.
End of Collateral Invested for Securities on Loan.

At 05/31/13, the tax basis cost of the fund’s investments was $1,001,930,557 and the unrealized appreciation and depreciation were $35,316,813 and ($6,393,554), respectively, with a net unrealized appreciation of $28,923,259.

(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 $1,649,800 or 0.2% of net assets.
(d)	Guaranteed by the Republic of Germany.
(e)	Zero coupon bond.

GO —	General obligation
RB —	Revenue bond
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: Bonds and notes are 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 independent bond-pricing services.

12 

 Schwab Total Bond Market 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices.

•  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.

13

 Schwab Total Bond Market Fund

Portfolio Holdings (Unaudited) continued

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 May 31, 2013:

	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total2
Mortgage-Backed Securities1		$—		$328,967,281		$—		$328,967,281
Corporate Bonds1		—		89,293,427		—		89,293,427
Industrial1		—		109,486,456		—		109,486,456
Transportation		—		3,775,232		201,500		3,976,732
U.S. Government and Government Agencies1		—		420,142,674		—		420,142,674
Commercial Mortgage Backed Securities		—		15,787,560		—		15,787,560
Asset-Backed Obligations		—		3,299,895		—		3,299,895
Foreign Securities1		—		45,739,885		—		45,739,885
Municipal Bonds1		—		9,133,478		—		9,133,478
Other Investment Company1		5,026,428		—		—		5,026,428
Total		$5,026,428		$1,025,625,888		$201,500		$1,030,853,816

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

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		Accrued		Realized		Unrealized						Gross		Gross		as of
	August 31,		Discounts		Gain		Gains		Gross		Gross		Transfers		Transfers		May 31,
Investments in Securities	2012		(Premiums)		(Loss)		(Losses)		Purchases		Sales		in		out		2013
Corporate Bonds		$—		$—		$—		$1,500		$200,000		$—		$—		$—		$201,500
Total		$—		$—		$—		$1,500		$200,000		$—		$—		$—		$201,500

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 May 31, 2013.

REG406017MAY13

14 

Schwab Investments
Schwab GNMA Fund™

Portfolio Holdings as of May 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.

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				($)			($)
	120	.9%	Mortgage-Backed Securities		569,697,059			573,649,548
	0	.3%	Other Investment Company		1,397,524			1,397,524
	121	.2%	Total Investments		571,094,583			575,047,072
	(7	.7)%	TBA Sale Commitments		(36,891,563	)		(36,742,508	)
	(13	.5)%	Other Assets and Liabilities, Net					(63,945,982	)
	100	.0%	Net Assets					474,358,582

	Face
Security	Amount		Value
Rate, Maturity Date	($)		($)
Mortgage-Backed Securities 120.9% of net assets
U.S. Government Agency Mortgages 120.9%
Fannie Mae
3.00%, 06/01/27 (b)		1,317,629		1,386,573
5.45%, 12/01/31 to 07/01/32 (b)		240,436		262,876
5.49%, 09/01/29 to 09/01/31 (b)		174,055		189,949
5.50%, 09/01/17 (b)		146,883		157,228
5.81%, 12/01/31 to 01/01/32 (b)		199,966		221,310
6.50%, 04/01/31 (b)		201,443		231,472
7.17%, 11/01/30 (b)		19,230		19,308
Fannie Mae REMICS
3.75%, 05/25/33 (b)		1,291,224		1,316,843
4.50%, 07/25/19 (b)		131,558		132,896
7.00%, 09/25/22 (b)		97,104		109,546
Fannie Mae TBA
2.50%, 06/01/28 to 07/01/28 (b)		1,500,000		1,528,809
Federal Home Loan Bank
0.00%, 06/07/13 (c)		11,209,000		11,208,989
0.00%, 06/12/13 (c)		15,000,000		14,999,955
Freddie Mac
0.00%, 06/24/13 (c)		15,000,000		14,999,910
4.00%, 12/01/20 (b)		1,288,424		1,365,459
Freddie Mac REMICS
2.00%, 07/15/20 (b)		807,498		813,486
4.00%, 11/15/23 to 02/15/33 (b)		1,259,173		1,287,970
4.50%, 03/15/19 (b)		290,271		292,314
5.00%, 02/15/32 to 08/15/32 (b)		197,263		199,337
6.50%, 03/15/14 (b)		23,087		429
Ginnie Mae
1.63%, 12/20/30 to 02/20/32 (a)(b)		84,401		88,301
1.75%, 07/20/24 to 04/20/37 (a)(b)		610,253		640,063
2.25%, 08/20/33 (a)(b)		83,932		87,632
2.50%, 04/15/27 to 10/20/27 (b)		1,406,810		1,443,607
3.00%, 02/20/27 to 04/20/43 (b)		13,448,368		13,831,853
3.50%, 02/20/16 (a)(b)		26,602		27,839
3.50%, 01/15/26 to 05/20/43 (b)		78,722,640		82,727,600
4.00%, 12/15/24 to 04/20/43 (b)		55,402,382		59,236,426
4.25%, 09/20/41 (b)		370,892		394,600
4.38%, 05/15/29 to 04/15/32 (b)		440,035		472,475
4.50%, 12/15/17 to 10/20/41 (b)		81,557,654		88,155,637
4.63%, 07/20/40 to 12/20/40 (b)		7,743,303		8,412,148
4.75%, 06/15/28 (b)		124,077		134,771
5.00%, 11/15/17 to 04/20/40 (b)		76,907,610		84,114,151
5.13%, 03/15/31 (b)		208,328		227,130
5.25%, 04/15/31 to 11/15/31 (b)		454,098		495,080
5.45%, 05/15/29 to 02/15/33 (b)		5,828,670		6,351,524
5.49%, 10/20/28 to 08/15/32 (b)		4,109,933		4,494,890
5.50%, 04/15/17 to 12/20/34 (b)		29,273,438		32,388,682
5.81%, 06/20/31 to 02/20/32 (b)		491,241		538,805
5.90%, 07/15/31 to 05/15/32 (b)		351,117		384,182
6.00%, 09/20/13 to 11/15/39 (b)		16,306,780		18,285,343
6.05%, 09/15/31 (b)		63,910		72,305
6.10%, 07/20/28 to 08/15/31 (b)		1,864,437		2,084,790
6.15%, 04/20/29 to 04/20/30 (b)		914,831		1,019,121
6.25%, 10/20/28 to 03/20/30 (b)		1,820,564		2,028,696
6.50%, 09/20/13 to 08/20/34 (b)		8,278,048		9,540,953
7.00%, 07/15/13 to 04/15/39 (b)		2,874,280		3,350,703
7.10%, 12/15/30 (b)		60,392		62,366
7.17%, 04/20/30 to 03/20/31 (b)		310,209		358,765
7.50%, 06/15/17 to 11/15/37 (b)		343,347		393,153
8.00%, 07/15/26 to 02/15/30 (b)		73,397		80,705
8.50%, 08/20/25 to 01/20/30 (b)		13,150		14,769
9.00%, 09/20/15 to 09/20/30 (b)		306,897		335,784
13.00%, 07/20/14 (b)		2		2
Ginnie Mae TBA
2.50%, 06/01/43 (b)		2,500,000		2,407,813
3.00%, 06/01/43 to 07/01/43 (b)		55,000,000		55,928,124
3.50%, 06/01/43 to 07/01/43 (b)		18,000,000		18,882,773
4.00%, 06/01/43 (b)		13,000,000		13,801,328
4.50%, 06/01/43 (b)		9,000,000		9,630,000
Total Mortgage-Backed Securities
(Cost $569,697,059)				573,649,548
	Number		Value
Security	of Shares		($)
Other Investment Company 0.3% of net assets
Money Market Fund 0.3%
State Street Institutional U.S. Government Money Market Fund		1,397,524		1,397,524
Total Other Investment Company
(Cost $1,397,524)				1,397,524
End of Investments.

1

 Schwab GNMA Fund

Portfolio Holdings (Unaudited) continued

At 05/31/13, the tax basis cost of the fund’s investments was $571,106,146 and the unrealized appreciation and depreciation were $9,505,835 and ($5,564,909), respectively, with a net unrealized appreciation of $3,940,926.

	Face
Security	Amount		Value
Rate, Maturity Dates	($)		($)
TBA Sale Commitments 7.7% of net assets
U.S. Government Agency Mortgages 7.7%
Ginnie Mae TBA
5.00%, 06/01/43 (b)		26,000,000		28,071,880
5.50%, 06/01/43 (b)		8,000,000		8,670,628
Total TBA Sale Commitments
(Proceeds $36,891,563)				36,742,508

(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)	Zero coupon bond.

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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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.

2 

 Schwab GNMA 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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices.

•  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 May 31, 2013:

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		$—		$573,649,548			$—		$573,649,548
Other Investment Company1		1,397,524		—			—		1,397,524
Total		$1,397,524		$573,649,548			$—		$575,047,072
Liabilities Valuation Input
Other Financial Instruments
TBA Sale Commitments1		$—		($36,742,508	)		$—		($36,742,508	)

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 May 31, 2013.

REG406018MAY13

3

Schwab Investments
Schwab Treasury Inflation Protected Securities Index Fund

Portfolio Holdings as of May 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.

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				($)		($)
	99	.5%	U.S. Government Securities		344,221,927		367,995,696
	0	.4%	Other Investment Company		1,665,207		1,665,207
	99	.9%	Total Investments		345,887,134		369,660,903
	0	.1%	Other Assets and Liabilities, Net				212,531
	100	.0%	Net Assets				369,873,434

	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%, 07/15/14		10,285,801		10,650,638
1.63%, 01/15/15		10,202,612		10,641,018
0.50%, 04/15/15		10,042,087		10,330,797
1.88%, 07/15/15		8,950,716		9,571,627
2.00%, 01/15/16		8,783,448		9,513,528
0.13%, 04/15/16		17,651,828		18,261,345
2.50%, 07/15/16		8,586,271		9,611,301
2.38%, 01/15/17		7,444,329		8,385,366
0.13%, 04/15/17		19,859,847		20,710,047
2.63%, 07/15/17		6,389,983		7,401,389
1.63%, 01/15/18		6,743,828		7,562,596
0.13%, 04/15/18		7,984,636		8,378,837
1.38%, 07/15/18		6,648,855		7,471,651
2.13%, 01/15/19		6,190,153		7,224,094
1.88%, 07/15/19		7,031,080		8,209,910
1.38%, 01/15/20		8,524,612		9,660,772
1.25%, 07/15/20		13,105,950		14,865,031
1.13%, 01/15/21		14,991,757		16,793,166
0.63%, 07/15/21		15,913,904		17,259,107
0.13%, 01/15/22		17,564,385		18,113,272
0.13%, 07/15/22		18,117,122		18,674,767
0.13%, 01/15/23		18,211,219		18,547,033
2.38%, 01/15/25		11,656,415		14,692,562
2.00%, 01/15/26		8,478,547		10,370,365
2.38%, 01/15/27		6,821,083		8,721,368
1.75%, 01/15/28		6,843,820		8,165,499
3.63%, 04/15/28		6,792,363		9,983,687
2.50%, 01/15/29		6,602,107		8,646,714
3.88%, 04/15/29		7,914,482		12,085,652
3.38%, 04/15/32		2,648,805		3,965,341
2.13%, 02/15/40		3,962,881		5,158,561
2.13%, 02/15/41		5,324,828		6,945,599
0.75%, 02/15/42		8,714,305		8,279,984
0.63%, 02/15/43		3,452,142		3,143,072
Total U.S. Government Securities
(Cost $344,221,927)				367,995,696
	Number		Value
Security	of Shares		($)
Other Investment Company 0.4% of net assets
Money Market Fund 0.4%
State Street Institutional U.S. Government Money Market Fund		1,665,207		1,665,207
Total Other Investment Company
(Cost $1,665,207)				1,665,207
End of Investments.

At 05/31/13, the tax basis cost of the fund’s investments was $347,320,297 and the unrealized appreciation and depreciation were $25,573,136 and ($3,232,530), respectively, with a net unrealized appreciation of $22,340,606.

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.

1

 Schwab Treasury Inflation Protected Securities Index 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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices.

•  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

2 

 Schwab Treasury Inflation Protected Securities Index Fund

Portfolio Holdings (Unaudited) continued

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 May 31, 2013:

	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		$—		$367,995,696		$—		$367,995,696
Other Investment Company1		1,665,207		—		—		1,665,207
Total		$1,665,207		$367,995,696		$—		$369,660,903

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

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 May 31, 2013.

REG406019MAY13

3

Schwab Investments
Schwab Tax-Free Bond Fund™

Portfolio Holdings as of May 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.

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				($)		($)
	94	.2%	Fixed-Rate Obligations		633,151,263		659,080,878
	4	.0%	Variable-Rate Obligations		28,015,000		28,492,082
	98	.2%	Total Investments		661,166,263		687,572,960
	1	.8%	Other Assets and Liabilities, Net				12,256,706
	100	.0%	Net Assets				699,829,666

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Fixed-Rate Obligations 94.2% of net assets
ALABAMA 1.0%
Birmingham
GO Bonds Series 2013A		0.00%		03/01/43	(b)(g)		500,000		446,815
GO Refunding Warrants Series 2010A		5.00%		02/01/18	(f)		1,260,000		1,476,140
Camden IDB
Facilities RB (Weyerhaeuser) Series 2003A		6.13%		12/01/24	(b)(f)(h)		1,725,000		1,774,749
Huntsville
Water Revenue Warrant Series 2008		5.00%		11/01/15			250,000		275,913
Pell Special Care Facilities Financing Auth
RB (Noland Health Services) Series 2012A		5.00%		12/01/19			1,790,000		2,059,986
RB (Noland Health Services) Series 2012A		5.00%		12/01/20			1,000,000		1,150,610
									7,184,213
ALASKA 0.5%
Alaska Housing Finance Corp
State Capital Project Bonds II Series 2012A		3.00%		06/01/16			2,080,000		2,218,694
State Capital Project Bonds II Series 2012A		5.00%		12/01/17			1,105,000		1,294,298
									3,512,992
ARIZONA 1.2%
Glendale IDA
RB (Midwestern Univ) Series 2010		5.00%		05/15/15			415,000		442,647
Maricopa Cnty UHSD No. 210 (Phoenix)
GO Bonds Series 2012A		3.00%		07/01/21			450,000		473,760
GO Bonds Series 2012A		4.00%		07/01/26	(b)		425,000		457,130
Payson USD No.10
GO Bonds Series 2008B		5.75%		07/01/28	(b)(f)		1,375,000		1,618,884
Phoenix Civic Improvement Corp
Sr Lien Airport Refunding RB Series 2008C		5.00%		07/01/13			75,000		75,269
Pima Cnty
COP Series 2013A		5.00%		12/01/17			550,000		640,805
COP Series 2013A		5.00%		12/01/18			400,000		472,576
COP Series 2013A		5.00%		12/01/19			500,000		591,525
GO Bonds Series 2012A		4.00%		07/01/22			625,000		700,669
Refunding COP Series 2013B		5.00%		12/01/16			625,000		713,050
Univ Medical Center Corp
Hospital RB Series 2009		5.00%		07/01/14			615,000		641,845
Hospital RB Series 2009		5.00%		07/01/15			170,000		182,274

1

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Hospital RB Series 2009		5.50%		07/01/16			250,000		277,365
Hospital RB Series 2009		6.00%		07/01/18			450,000		530,928
Hospital RB Series 2009		5.75%		07/01/19			300,000		355,350
Yavapai Cnty IDA
Hospital Refunding RB (Northern Arizona Healthcare) Series 2011		3.00%		10/01/13			600,000		605,190
									8,779,267
ARKANSAS 0.6%
Cabot
Sales & Use Tax Refunding & Improvement Bonds Series 2013		2.55%		06/01/43	(b)(e)		1,500,000		1,496,610
Fort Smith
Sales & Use Tax Refunding Bonds Series 2012		2.38%		05/01/27	(b)		640,000		643,981
Little Rock
Library Construction & Refunding Bonds Series 2012		3.10%		03/01/32	(b)		2,250,000		2,184,345
									4,324,936
CALIFORNIA 16.3%
Anaheim Public Financing Auth
Lease Refunding RB Series 2008		5.00%		08/01/17			955,000		1,105,030
Bellflower USD
GO Bonds Series 2012A		4.25%		08/01/42	(b)		2,680,000		2,666,546
California
GO Bonds		4.00%		09/01/16			635,000		699,618
GO Bonds		5.00%		10/01/18			3,000,000		3,575,760
GO Bonds		5.00%		11/01/32	(b)(f)		1,240,000		1,360,392
GO Bonds		5.00%		04/01/38	(b)		1,000,000		1,072,860
California Dept of Water Resources
Power Supply RB Series 2005G4		5.00%		05/01/16	(f)		750,000		846,765
California Educational Facilities Auth
RB (Univ of San Francisco) Series 2011		5.00%		10/01/21			750,000		887,595
California Health Facilities Financing Auth
RB (Children’s Hospital Orange Cnty) Series 2009A		6.50%		11/01/38	(b)(f)		1,850,000		2,208,086
RB (Community Program for Persons with Developmental Disabilities) Series 2011A		5.50%		02/01/21	(a)		310,000		367,772
Refunding RB (NCROC - Paradise Valley Estates) Series 2013		5.00%		01/01/19	(a)		1,000,000		1,152,300
Refunding RB (NCROC - Paradise Valley Estates) Series 2013		3.00%		01/01/21	(a)		1,250,000		1,272,937
Refunding RB (NCROC - Paradise Valley Estates) Series 2013		4.00%		01/01/22	(a)		1,075,000		1,159,076
California Infrastructure & Economic Development Bank
RB (Sanford Consortium) Series 2010A		5.00%		05/15/27	(b)(f)		2,005,000		2,243,996
RB (Sanford Consortium) Series 2010A		5.00%		05/15/28	(b)(f)		2,060,000		2,296,014
California Public Works Board
Lease RB (Judicial Council of California) Series 2013A		5.00%		03/01/28	(b)		1,000,000		1,111,490
Lease RB Series 2012A		5.00%		04/01/24	(b)(f)		3,350,000		3,896,854
California Statewide Communities Development Auth
RB (Proposition 1A Receivables) Series 2009		5.00%		06/15/13	(f)		4,000,000		4,006,320
RB (St. Joseph Health) Series 2000		4.50%		07/01/18	(f)		1,875,000		1,994,869
East Bay Municipal Utility District
Water System Refunding RB Series 2013A		5.00%		06/01/18			1,000,000		1,197,420
Water System Refunding RB Series 2013A		5.00%		06/01/19			1,000,000		1,215,730
Emery USD
GO Bonds Series 2011A		6.50%		08/01/31	(b)		2,500,000		3,057,800
GO Bonds Series 2012D		0.00%		08/01/42	(b)(g)		3,500,000		731,885
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25%		06/01/33	(b)(f)(h)		1,620,000		1,620,000
Jefferson UHSD
GO Bonds Series 2006D		0.00%		08/01/37	(b)(g)		1,545,000		290,306
GO Bonds Series 2006D		0.00%		08/01/39	(b)(g)		3,750,000		590,625
Kern Cnty
Refunding COP 2011 Series A		5.00%		11/01/16			1,935,000		2,161,743
Los Angeles
Judgment Obligation Bonds Series 2010A		4.00%		06/01/19			4,245,000		4,734,618
Los Angeles Cnty
Refunding COP 2012		5.00%		03/01/23			1,500,000		1,761,360

2 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Los Angeles Dept of Water & Power
Power System RB Series 2012C		5.00%		01/01/16	(b)		1,230,000		1,358,535
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2009A		5.00%		04/01/17			1,375,000		1,554,190
Lease RB (Capital Equipment) Series 2009C		4.00%		09/01/16			1,050,000		1,140,310
Lease RB (Capital Equipment) Series 2009C		4.00%		09/01/17			350,000		386,103
Lease RB (Capital Equipment) Series 2009C		5.00%		09/01/18			550,000		639,392
Lease RB (Capital Equipment) Series 2009C		4.50%		09/01/19			1,050,000		1,195,950
Lease RB (Real Property) Series 2009E		5.13%		09/01/27	(b)		1,090,000		1,257,021
Los Angeles USD
Refunding COP Series 2012A		5.00%		10/01/22			3,130,000		3,683,008
Refunding COP Series 2012B		5.00%		10/01/30	(b)		350,000		386,162
Refunding COP Series 2012B		5.00%		10/01/31	(b)		950,000		1,045,000
Midpeninsula Regional Open Space District
RB Series 2011		6.00%		09/01/41	(b)		2,000,000		2,342,580
Palmdale Water District Public Financing Auth
Water RB Series 2013A		5.00%		10/01/27	(b)		2,435,000		2,737,792
Water RB Series 2013A		5.00%		10/01/28	(b)		2,560,000		2,861,901
Palo Alto
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		3.00%		09/02/18			385,000		397,266
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		4.00%		09/02/19			480,000		516,466
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		4.00%		09/02/21			400,000		420,340
Pasadena Public Financing Auth
Lease RB (Rose Bowl Renovation) Series 2010A		5.00%		03/01/22	(b)		360,000		421,024
Puente Basin Water Agency
Water RB (Walnut Valley Water District) Series 2013A		5.00%		06/01/38	(b)		3,255,000		3,625,810
Riverside Cnty Transportation Commission
Limited Sales Tax RB Series 2010A		5.00%		06/01/32	(b)		3,530,000		3,830,685
San Bernardino City USD
GO Refunding Bonds Series 2013A		5.00%		08/01/17	(e)		1,600,000		1,839,408
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A		3.88%		03/01/18			2,215,000		2,409,167
San Diego USD
GO Bonds Series 2010C		0.00%		07/01/31	(g)		2,000,000		888,560
GO Bonds Series 2010C		0.00%		07/01/32	(g)		1,500,000		630,075
GO Bonds Series 2010C		0.00%		07/01/33	(g)		1,000,000		397,460
GO Bonds Series 2010C		0.00%		07/01/34	(g)		1,750,000		657,493
GO Bonds Series 2010C		0.00%		07/01/35	(g)		1,300,000		461,253
San Francisco Public Utilities Commission
Wastewater RB Series 2013B		4.00%		10/01/33	(b)		2,270,000		2,355,874
San Mateo-Foster City SD
GO Refunding Bonds Series 2012		3.00%		09/01/15			1,730,000		1,826,569
GO Refunding Bonds Series 2012		4.00%		09/01/18			1,885,000		2,138,853
GO Refunding Bonds Series 2012		5.00%		09/01/20			2,195,000		2,651,450
Santa Cruz HSD
GO Refunding Bonds Series 2005		5.00%		08/01/29	(b)		5,180,000		5,322,813
Santa Monica Public Financing Auth
Lease RB Series 2011A		5.00%		06/01/31	(b)		2,440,000		2,720,136
Santa Monica-Malibu USD
GO Bonds Series D		0.00%		07/01/34	(b)(g)		5,355,000		1,955,485
South Orange Cnty Public Financing Auth
Facility Lease Refunding RB Series 2012		5.00%		06/01/19			1,250,000		1,481,587
Tiburon/Belvedere Wastewater Financing Auth
RB (Marin Cnty Sanitary District No. 5) Series 2012		3.00%		10/01/21			490,000		523,501
Turlock Irrigation District
Sub Refunding RB Series 2011		5.00%		01/01/31	(b)		2,155,000		2,335,524
Upland
COP (San Antonio Community Hospital) Series 2011		5.50%		01/01/19			1,165,000		1,373,593
Woodland Finance Auth
Water RB Series 2011		6.00%		03/01/41	(b)		1,000,000		1,163,720
									114,217,823

3

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
COLORADO 1.4%
Adams Cnty SD No. 14
GO Refunding Bonds Series 2013		5.25%		12/01/29	(b)		1,000,000		1,199,200
Aspen Valley Hospital District
Refunding RB Series 2012		5.00%		10/15/30	(b)		750,000		817,837
Refunding RB Series 2012		5.00%		10/15/33	(b)		500,000		541,135
Colorado Health Facilities Auth
RB (Catholic Health Initiatives) Series 2008D1		5.00%		10/01/14	(f)		550,000		582,725
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/18	(f)		1,630,000		1,807,230
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/19	(f)		1,735,000		1,935,375
Refunding RB (National Jewish Health) Series 2012		5.00%		01/01/21			1,900,000		2,135,125
Univ of Colorado Hospital Auth
RB Series 2012A		4.00%		11/15/14			250,000		261,873
RB Series 2012A		5.00%		11/15/16			440,000		496,725
									9,777,225
CONNECTICUT 1.4%
Danbury
GO Refunding Bonds Series 2012		4.00%		08/01/25	(b)		645,000		706,488
New Haven
GO Bonds Series 2011A		5.00%		03/01/15			1,260,000		1,358,721
Oxford
GO Refunding Bonds 2011		3.00%		08/01/16			705,000		754,146
GO Refunding Bonds 2011		4.00%		08/01/17			1,405,000		1,577,351
GO Refunding Bonds 2011		4.00%		08/01/18			1,575,000		1,798,193
GO Refunding Bonds 2011		4.00%		08/01/19			500,000		574,815
GO Refunding Bonds 2011		3.00%		08/01/21	(b)		130,000		137,879
GO Refunding Bonds 2011		3.13%		08/01/22	(b)		125,000		131,915
West Haven
GO Bonds 2012		4.00%		08/01/19			365,000		393,883
GO Bonds 2012		5.00%		08/01/20			2,230,000		2,539,836
									9,973,227
DELAWARE 0.3%
Delaware State Housing Auth
Sr S/F Mortgage RB Series 2011A2		4.25%		07/01/29	(b)		1,675,000		1,791,915
DISTRICT OF COLUMBIA 0.4%
District of Columbia
Income Tax Secured RB Series 2009A		5.25%		12/01/27	(b)(f)		300,000		354,450
Income Tax Secured Refunding RB Series 2010A		5.00%		12/01/30	(b)		1,210,000		1,379,557
Metropolitan Washington Airports Auth
Airport System RB Series 2009B		5.00%		10/01/18	(a)(f)		825,000		992,764
									2,726,771
FLORIDA 5.0%
Alachua Cnty Health Facilities Auth
Health Facilities RB (Shands HealthCare) Series 2008D1		6.25%		12/01/18			500,000		599,015
Florida Higher Educational Facilities Financing Auth
Refunding RB (Univ Tampa) Series 2012A		5.00%		04/01/19			1,220,000		1,381,443
Refunding RB (Univ Tampa) Series 2012A		5.25%		04/01/42	(b)		400,000		439,020
Florida Ports Financing Commission
Refunding RB (State Transportation Trust Fund-Intermodal Program) Series 2011A		5.00%		10/01/28	(b)		1,500,000		1,715,865
Highlands Cnty Health Facilities Auth
Hospital RB (Adventist Health/Sunbelt) Series 2008A		6.10%		11/15/37	(b)(f)		1,000,000		1,023,770
Hillsborough Cnty School Board
Refunding COP (Master Lease Program) Series 2010A		5.00%		07/01/24	(b)		3,900,000		4,396,275
JEA
Electric System RB Series Three 2010A		3.00%		10/01/13			295,000		297,658

4 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Kissimmee Utility Auth
Electric System Sub Refunding RB Series 2003		5.25%		10/01/18			200,000		232,876
Lee Cnty
Non-Ad Valorem Refunding RB Series 2012		3.00%		10/01/14			355,000		366,967
Non-Ad Valorem Refunding RB Series 2012		4.00%		10/01/15			950,000		1,027,815
Miami-Dade Cnty
Aviation RB (Miami Int’l Airport) Series 2010A		5.00%		10/01/20			500,000		599,050
Aviation RB (Miami Int’l Airport) Series 2010A		5.50%		10/01/26	(b)		4,750,000		5,596,972
Miami-Dade Cnty Educational Facilities Auth
RB (Univ of Miami) Series 2008A		5.25%		04/01/16	(f)		1,100,000		1,228,128
Miami-Dade Cnty School Board
COP Series 2013A		5.00%		05/01/31	(b)		2,550,000		2,822,748
Orange Cnty Health Facilities Auth
RB (Nemours Foundation) Series 2009A		4.00%		01/01/14			405,000		412,687
RB (Nemours Foundation) Series 2009A		4.00%		01/01/15			440,000		461,881
RB (Nemours Foundation) Series 2009A		4.00%		01/01/16			625,000		669,356
RB (Nemours Foundation) Series 2009A		4.00%		01/01/17			560,000		611,374
RB (Nemours Foundation) Series 2009A		5.00%		01/01/18			300,000		344,652
RB (Nemours Foundation) Series 2009A		5.00%		01/01/19			545,000		628,004
Orlando Utilities Commission
Water & Electric RB Series 1996A		3.75%		10/01/23	(b)		1,900,000		1,921,641
Palm Beach Cnty Solid Waste Auth
RB Series 2009		5.25%		10/01/18	(a)		2,200,000		2,659,272
Pasco Cnty
Water & Sewer RB Series 2009A		5.00%		10/01/16			75,000		85,359
Port St. Lucie
Refunding COP Series 2008		5.00%		09/01/13			845,000		853,129
Tampa
Sales Tax Refunding RB Series 2010		4.00%		10/01/20			535,000		606,364
Sales Tax Refunding RB Series 2010		5.00%		10/01/21	(b)		390,000		467,552
Tampa Bay Water
Utility System Refunding RB Series 2011		5.00%		10/01/18			1,250,000		1,499,887
Tohopekaliga Water Auth
Utility System Refunding RB Series 2011A		5.75%		10/01/30	(b)		1,250,000		1,486,237
Utility System Refunding RB Series 2011A		5.75%		10/01/31	(b)		405,000		478,937
									34,913,934
GEORGIA 1.5%
Cobb Cnty Kennestone Hospital Auth
Revenue Anticipation Refunding Certificates Series 2012		4.00%		04/01/31	(b)		5,000,000		5,085,250
Fulton Cnty Development Auth
RB (Georgia State Univ) Series 2011		5.00%		10/01/15			825,000		896,371
RB (Georgia State Univ) Series 2011		5.00%		10/01/17			185,000		211,329
RB (Tuff Morehouse) Series 2002A		5.50%		02/01/22	(b)(f)		2,130,000		2,136,710
Macon-Bibb Cnty Hospital Auth
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		4.00%		08/01/19			250,000		277,135
Revenue Anticipation Certificates (Medical Center of Central Georgia) Series 2009		5.00%		08/01/21	(b)		95,000		108,353
Private Colleges & Universities Auth
RB (Mercer Univ) Series 2012C		5.00%		10/01/17			500,000		563,350
RB (Mercer Univ) Series 2012C		4.00%		10/01/22			1,000,000		1,091,820
									10,370,318
HAWAII 1.5%
Hawaii
GO Bonds Series 2004DD		5.00%		05/01/19	(b)(h)		2,275,000		2,372,893
GO Bonds Series 2011DZ		5.00%		12/01/21			3,155,000		3,885,067
Hawaii State Housing Finance & Development Corp
S/F Mortgage Purchase RB Series 2011B		4.50%		01/01/26	(b)		2,105,000		2,286,009
Honolulu
GO Bonds Series 2011A		5.25%		08/01/30	(b)		1,900,000		2,255,528

5

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
GO Bonds Series 2011A		5.25%		08/01/31	(b)		50,000		59,115
									10,858,612
IDAHO 1.1%
Boise ISD
GO Refunding Bonds Series 2012B		3.00%		08/01/17			1,870,000		2,029,006
Nampa SD No. 131
GO Refunding Bonds Series 2011B		3.50%		08/15/19	(a)(f)		1,915,000		2,131,127
GO Refunding Bonds Series 2011B		4.00%		08/15/21	(a)(f)		1,885,000		2,148,711
GO Refunding Bonds Series 2011B		4.00%		08/15/22	(a)(f)		1,000,000		1,131,280
									7,440,124
ILLINOIS 4.5%
Arlington Heights Park District
GO Refunding Park Bonds Series 2010B		2.00%		12/01/15			200,000		205,402
Chicago
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/17	(f)		1,000,000		1,136,240
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/18	(f)		1,200,000		1,394,724
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D		5.00%		01/01/19	(f)		750,000		878,865
DuPage CCD No. 502
GO Community College Bonds Series 2013A		5.00%		06/01/18			1,195,000		1,417,449
GO Community College Bonds Series 2013A		4.00%		06/01/19			1,550,000		1,770,209
GO Community College Bonds Series 2013A		5.00%		06/01/27	(b)		2,000,000		2,358,160
Elk Grove Village
GO Bonds Series 2012		4.00%		01/01/24	(b)		1,340,000		1,496,847
GO Bonds Series 2012		4.00%		01/01/25	(b)		1,385,000		1,526,132
Illinois
GO Bonds Series January 2012A		4.00%		01/01/21			1,575,000		1,669,988
GO Bonds Series March 2012		5.00%		03/01/20			1,000,000		1,137,500
GO Bonds Series March 2012		5.00%		03/01/21			2,400,000		2,718,576
GO Refunding Bonds Series 2012		5.00%		08/01/18			3,000,000		3,433,980
GO Refunding Bonds Series February 2010		5.00%		01/01/18			2,375,000		2,690,352
GO Refunding Bonds Series June 2006		5.00%		01/01/19			1,220,000		1,386,542
Sales Tax Jr Obligation Bonds Series June 2010		5.00%		06/15/14			200,000		209,746
Sales Tax Jr Obligation Bonds Series June 2010		5.00%		06/15/20			400,000		484,728
Unemployment Insurance Fund Building Receipts RB Series 2012C		1.50%		06/15/21			610,000		610,226
Illinois Finance Auth
RB (Ascension Health Alliance) Series 2012E2		5.00%		11/15/42	(b)		1,300,000		1,498,679
Railsplitter Tobacco Settlement Auth
Tobacco Settlement RB Series 2010		4.00%		06/01/13			50,000		50,000
Village of Homer Glen
GO Bonds Series 2012A		2.00%		12/01/13			1,185,000		1,193,437
Will Cnty Community HSD No. 210
Refunding GO Bonds Series 2013A		5.00%		01/01/31	(b)		2,000,000		2,256,060
									31,523,842
INDIANA 2.3%
Indiana Finance Auth
Educational Facilities Refunding RB (Butler Univ) Series 2012A		5.00%		02/01/22			800,000		938,448
Educational Facilities Refunding RB (Butler Univ) Series 2012A		5.00%		02/01/24	(b)		3,250,000		3,744,812
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		4.50%		08/15/15			1,370,000		1,438,610
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		4.50%		08/15/16			1,355,000		1,442,818
Hospital RB (King’s Daughters Hospital & Health Services) Series 2010		5.13%		08/15/27	(b)		1,000,000		1,082,670
Hospital RB (Parkview Health System) Series 2012A		4.00%		05/01/17			450,000		491,976
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/16			400,000		441,968
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/17			480,000		542,347
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/18			1,000,000		1,147,650
RB (Community Foundation of Northwest Indiana) Series 2012		5.00%		03/01/19			1,000,000		1,157,160
State Revolving Fund Refunding Bonds Series 2010A		5.00%		02/01/19			945,000		1,136,759
Indiana Health Facility Financing Auth
RB (Ascension Health) Series 2001A1		1.50%		11/15/36	(b)		2,500,000		2,534,000
									16,099,218

6 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
IOWA 0.2%
Iowa
Special Obligation Bonds (Prison Infrastructure Fund) Series 2010		5.00%		06/15/25	(b)		950,000		1,105,515
KANSAS 0.3%
Kansas Development Finance Auth
Hospital RB (Adventist Health/Sunbelt) Series 2009D		5.00%		11/15/14			50,000		53,309
Hospital RB (Adventist Health/Sunbelt) Series 2009D		5.00%		11/15/15			185,000		204,771
Olathe
Health Facilities RB (Olathe Medical Center) Series 2012B		4.00%		09/01/20			365,000		399,014
Health Facilities RB (Olathe Medical Center) Series 2012B		4.00%		09/01/21			325,000		351,764
Health Facilities RB (Olathe Medical Center) Series 2012B		5.00%		09/01/24	(b)		440,000		495,581
Wichita
Hospital Facilities Refunding RB (Via Christi Health) Series 2009X		5.25%		11/15/24	(b)		540,000		618,532
									2,122,971
KENTUCKY 0.4%
Kentucky Economic Development Finance Auth
Hospital RB (Baptist Healthcare) Series 2009A		5.00%		08/15/18			1,000,000		1,167,170
Kentucky State Property & Buildings Commission
Refunding RB (Project No.100) Series A		5.00%		08/01/20			1,210,000		1,461,620
									2,628,790
MARYLAND 0.3%
Maryland Community Development Admin
Housing RB Series 1996A		5.88%		07/01/16	(b)		45,000		45,043
Maryland Health & Higher Educational Facilities Auth
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/20			335,000		394,439
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/21			400,000		472,040
RB (Frederick Memorial Hospital) Series 2012A		5.00%		07/01/27	(b)		450,000		510,678
Prince George’s Cnty
COP Series 2011		5.00%		10/01/30	(b)		400,000		459,304
									1,881,504
MASSACHUSETTS 3.0%
Chatham
GO Refunding Bonds		4.00%		07/01/13	(f)		285,000		285,827
GO Refunding Bonds		4.00%		07/01/14	(f)		60,000		62,434
GO Refunding Bonds		5.00%		07/01/16	(f)		150,000		169,815
GO Refunding Bonds		5.00%		07/01/17	(f)		245,000		285,609
Massachusetts Bay Transportation Auth
Assessment Bonds Series 2004A		5.25%		07/01/31	(b)(f)(h)		6,700,000		7,061,465
Assessment Bonds Series 2005A		5.00%		07/01/14	(h)		535,000		562,135
Assessment Bonds Series 2005A		5.00%		07/01/14			315,000		331,081
Sr Sales Tax Bonds Series 2005A		5.00%		07/01/31			3,995,000		4,840,542
Massachusetts Development Finance Agency
RB (New England Conservatory of Music) Series 2008		4.00%		07/01/15			325,000		340,629
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/14			915,000		934,709
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/17			1,000,000		1,105,830
RB (Tufts Medical Center) Series 2011I		5.00%		01/01/18			885,000		989,350
Massachusetts Health & Educational Facilities Auth
RB (Northeastern Univ) Series 2008T3		2.70%		10/01/37	(b)		2,000,000		2,027,340
Massachusetts School Building Auth
Sr Dedicated Sales Tax Refunding Bonds Series 2012B		4.00%		08/15/17			1,000,000		1,125,990
Massachusetts Turnpike Auth
Turnpike RB Series 1993A		5.00%		01/01/20	(h)		725,000		833,380
									20,956,136

7

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
MICHIGAN 2.5%
Grand Rapids
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/25			950,000		1,152,207
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/26			1,245,000		1,512,912
Sanitary Sewer System Refunding RB Series 2010		5.00%		01/01/27			1,950,000		2,374,827
Sanitary Sewer System Refunding RB Series 2013		5.00%		01/01/24	(b)		250,000		301,255
Sanitary Sewer System Refunding RB Series 2013		5.00%		01/01/25	(b)		610,000		728,206
Sanitary Sewer System Refunding RB Series 2013		5.00%		01/01/34	(b)		1,000,000		1,140,300
Michigan
Refunding Bonds (State Trunk Line Fund) Series 2009		5.00%		11/01/22	(b)		2,200,000		2,539,108
Michigan Finance Auth
Refunding RB (Trinity Health) Series 2010A		4.00%		12/01/13			1,000,000		1,018,360
Refunding RB (Trinity Health) Series 2010A		5.00%		12/01/15			1,000,000		1,103,560
Unemployment Obligation Assessment RB Series 2012B		5.00%		07/01/23	(b)		1,000,000		1,046,070
Michigan State Hospital Finance Auth
Refunding RB (Trinity Health) Series 2008A1		5.25%		12/01/15			1,500,000		1,664,550
Wayne Cnty Community College
Improvement Bonds Series 1999		5.50%		07/01/19	(b)		1,000,000		1,023,390
Western Townships Utiltites Auth
Sewage Disposal System Limited Tax GO Refunding Bonds Series 2012		4.00%		01/01/19			1,265,000		1,397,066
Sewage Disposal System Limited Tax GO Refunding Bonds Series 2012		4.00%		01/01/20			750,000		825,427
									17,827,238
MINNESOTA 1.6%
Olmsted Cnty
GO Crossover Refunding Bonds Series 2012A		4.00%		02/01/23	(b)		1,935,000		2,236,144
Shakopee ISD No. 720
GO Refunding Bonds Series 2012A		4.00%		02/01/19			840,000		962,279
GO Refunding Bonds Series 2012A		5.00%		02/01/21			1,000,000		1,219,880
GO Refunding Bonds Series 2013A		5.00%		02/01/20			1,500,000		1,818,630
GO Refunding Bonds Series 2013A		5.00%		02/01/21			1,150,000		1,402,862
St. Paul Port Authority
Lease Refunding RB (Minnesota Anderson Office Building) Series 2013-3		5.00%		12/01/24	(b)		1,000,000		1,210,910
Univ of Minnesota
GO Bonds Series 2011D		5.00%		12/01/20			220,000		272,767
GO Bonds Series 2011D		5.00%		12/01/21			475,000		600,561
GO Bonds Series 2013A		4.00%		02/01/20			1,595,000		1,840,088
									11,564,121
MISSISSIPPI 0.7%
Mississippi Development Bank
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A		5.00%		04/01/15			250,000		265,340
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A		5.00%		04/01/16			400,000		435,288
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A		5.00%		04/01/17			585,000		650,169
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A		5.00%		04/01/28	(b)		1,000,000		1,106,190
Mississippi Home Corp
Homeownership Mortgage RB Series 2011A		4.50%		06/01/25	(b)		2,115,000		2,289,382
									4,746,369
MISSOURI 0.5%
Boone Cnty
Hospital RB (Boone Hospital Center) Series 2008		5.00%		08/01/13	(f)		1,550,000		1,559,874
Hospital Refunding RB (Boone Hospital Center) Series 2012		4.00%		08/01/18			400,000		439,200
St. Charles SD
GO Refunding Bonds Series 2011		4.00%		03/01/17	(a)		1,400,000		1,561,938
									3,561,012
NEBRASKA 0.3%
Nebraska Investment Finance Auth
S/F Housing RB Series 2013A		2.50%		09/01/34	(b)		1,500,000		1,549,875

8 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Nebraska Public Power District
General RB Series 2010C		5.00%		01/01/19			425,000		503,230
									2,053,105
NEVADA 2.2%
Carson City
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		2.00%		09/01/13			785,000		786,994
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		3.00%		09/01/14			550,000		561,517
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		4.00%		09/01/15			370,000		389,196
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		5.00%		09/01/18			1,265,000		1,429,956
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012		5.00%		09/01/33	(b)		700,000		764,890
Clark Cnty
Airport Passenger Facility Charge Sub Lien RB Series 2008A		5.00%		07/01/15	(f)		1,115,000		1,212,496
Airport System RB Sr Series 2010D		5.00%		07/01/17	(f)		1,000,000		1,154,460
Airport System RB Sr Series 2010D		5.00%		07/01/18	(f)		1,920,000		2,256,249
Nevada
Highway Improvement RB (Motor Vehicle Fuel Tax) Series 2004		5.50%		12/01/18	(b)		340,000		366,139
Nevada System of Higher Education
Univ RB Series 2011A		5.00%		07/01/18			5,375,000		6,316,324
									15,238,221
NEW HAMPSHIRE 0.5%
New Hampshire Health & Education Facilities Auth
RB (Dartmouth College) Series 2009		5.00%		06/01/19			305,000		367,281
RB (Dartmouth-Hitchcock) Series 2009		6.00%		08/01/38	(b)		400,000		453,976
New Hampshire HFA
S/F Mortgage Acquisition RB Series 2008E		6.63%		07/01/38	(b)		1,035,000		1,117,003
S/F Mortgage Acquisition RB Series 2011E		4.50%		01/01/28	(b)		1,415,000		1,534,497
									3,472,757
NEW JERSEY 4.8%
Bergen Cnty
GO Bonds Series 2011A		2.25%		12/01/21	(f)		1,925,000		1,957,860
Cranbury Township
General Improvement Refunding Bonds		2.75%		12/01/15	(f)		430,000		452,149
Refunding Bonds		3.00%		12/01/16			320,000		343,373
Refunding Bonds		3.00%		12/01/17			285,000		307,743
Refunding Bonds		4.00%		12/01/18			400,000		457,264
Essex Cnty Utilities Auth
Water System Notes Series 2012		2.00%		11/07/14			2,500,000		2,549,475
Gloucester Cnty Improvement Auth
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/17			425,000		471,346
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/18			465,000		531,834
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/19			485,000		542,502
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/20			510,000		572,689
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/21			355,000		398,097
Refunding RB (Shady Lane Nursing Home) Series 2012		4.00%		12/01/22			480,000		534,902
Mercer Cnty Improvement Auth
Refunding RB Series 2011		4.00%		09/01/14			215,000		224,746
Refunding RB Series 2011		4.00%		09/01/15			1,000,000		1,078,990
Refunding RB Series 2011		4.00%		09/01/16			65,000		71,681
Refunding RB Series 2011		4.00%		09/01/17			1,620,000		1,819,033
Middlesex Cnty
Refunding COP Series 2011		4.00%		06/15/18			590,000		640,286
Refunding COP Series 2011		3.00%		06/15/19			1,020,000		1,045,490
Refunding COP Series 2011		4.00%		06/15/20			1,000,000		1,077,390
Refunding COP Series 2011		4.00%		06/15/21			265,000		283,781
Middlesex Cnty Improvement Auth
Lease RB Series 2008		4.00%		12/15/15			415,000		451,769
Lease Refunding RB Series 2010		2.00%		07/01/14			430,000		437,215
Lease Refunding RB Series 2010		3.00%		07/01/16			225,000		239,427
Open Space Trust Fund Refunding RB Series 2011		3.00%		09/15/16			1,520,000		1,628,467

9

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Refunding RB (Open Space Trust Fund) Series 2011		4.00%		09/15/21			625,000		702,650
Monmouth Cnty Improvement Auth
Governmental Loan RB Series 2008		5.25%		12/01/18			85,000		102,982
Montgomery Township
GO Refunding Bonds Series 2012		3.00%		08/01/15			770,000		812,073
Morris Cnty Improvement Auth
Guaranteed Pooled Program Bonds Series 2012A		3.00%		02/01/19			705,000		762,923
Guaranteed Pooled Program Bonds Series 2012A		3.00%		02/01/20			695,000		748,439
New Jersey
COP (Equipment Lease Purchase) Series 2009A		5.25%		06/15/29	(b)		150,000		166,300
New Jersey Building Auth
Refunding RB Series 2009B		4.00%		12/15/19			135,000		150,483
New Jersey Economic Development Auth
School Facilities Construction Refunding Bonds Series 2011GG		5.00%		09/01/16			920,000		1,043,924
School Facilities Construction Refunding Bonds Series 2011GG		5.00%		09/01/19			2,500,000		2,949,025
New Jersey Transportation Trust Fund Auth
Transportation System Bonds Series 2001C		5.50%		12/15/15			10,000		11,241
Transportation System Bonds Series 2011A		5.13%		06/15/29	(b)		1,000,000		1,149,060
Transportation System Bonds Series 2011B		5.50%		06/15/31	(b)		150,000		174,138
Passaic Cnty
GO Refunding Bonds Series 2012		3.00%		08/15/14			500,000		516,265
GO Refunding Bonds Series 2012		4.00%		02/01/17			660,000		716,747
GO Refunding Bonds Series 2012		4.00%		02/01/18			100,000		110,063
GO Refunding Bonds Series 2012		4.00%		02/01/19			600,000		657,456
Refunding Bonds Series 2011		5.00%		05/01/17			4,180,000		4,721,017
Princeton Township
Refunding Bonds		4.00%		09/01/13			125,000		126,142
									33,738,437
NEW MEXICO 0.5%
Bernalillo Cnty
GO Refunding Bonds Series 2010		4.00%		02/01/19			500,000		569,565
GO Refunding Bonds Series 2010		4.00%		02/01/20			105,000		120,348
New Mexico Hospital Equipment Loan Council
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.25%		08/01/15			500,000		543,960
Hospital System RB (Presbyterian Healthcare) Series 2008A		5.50%		08/01/16			10,000		11,264
Santa Fe
Gross Receipt Tax Improvement & Refunding RB Series 2012A		4.00%		06/01/18			735,000		832,843
Gross Receipt Tax Improvement & Refunding RB Series 2012A		4.00%		06/01/19			1,000,000		1,140,840
									3,218,820
NEW YORK 9.2%
Buffalo
School Refunding Bonds Series 2012E		3.00%		02/01/14			300,000		304,722
School Refunding Bonds Series 2012E		3.00%		02/01/15			250,000		259,573
School Refunding Bonds Series 2012E		3.00%		02/01/16			275,000		290,565
School Refunding Bonds Series 2012E		4.00%		02/01/17			420,000		462,567
Lake Success
GO Refunding Bonds Series 2010B		4.00%		12/01/18			210,000		237,917
GO Refunding Bonds Series 2010B		4.00%		12/01/19			125,000		141,606
Long Island Power Auth
Electric System General RB Series 2012B		5.00%		09/01/25	(b)		1,000,000		1,153,320
Metropolitan Transportation Auth
Dedicated Tax Fund Refunding Bonds Series 2008B2		5.00%		11/01/15			320,000		354,470
Dedicated Tax Fund Refunding Bonds Series 2011A		4.00%		11/15/13			1,000,000		1,016,830
Sales Tax Refunding RB Series 2008D		4.00%		11/15/43	(b)(e)		1,500,000		1,455,165
Transportation RB Series 2011A		5.00%		11/15/21			2,500,000		2,998,375
Transportation RB Series 2013C		5.00%		11/15/42	(b)(e)		2,000,000		2,147,220
Transportation Refunding RB Series 2012F		5.00%		11/15/18			3,850,000		4,565,214
Nassau Cnty Interim Finance Auth
Sales Tax Secured Bonds Series 2009A		5.00%		11/15/18			145,000		174,548
New York City
GO Bonds Fiscal 2006 Series F1		5.00%		09/01/17	(b)		3,090,000		3,388,247

10 

 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		5,982,950
New York City Housing Development Corp
M/F Housing RB Series 2012H		0.95%		05/01/16			975,000		975,556
M/F Housing RB Series 2012H		1.50%		05/01/18			780,000		780,733
New York City Municipal Water Finance Auth
Water & Sewer System RB Fiscal 2012 Series DD		4.00%		06/15/18	(b)		2,500,000		2,752,000
New York City Transitional Finance Auth
Future Tax Secured Sub RB Fiscal 2010 Series C1		4.00%		08/01/16			3,000,000		3,320,340
Future Tax Secured Sub RB Fiscal 2010 Series I2		5.00%		11/01/18			900,000		1,081,611
Future Tax Secured Sub RB Fiscal 2010 Series I2		5.00%		11/01/20	(b)		200,000		241,814
Future Tax Secured Sub RB Fiscal 2011 Series D1		5.00%		02/01/35	(b)		5,000,000		5,570,700
New York State Dormitory Auth
Master BOCES Program Lease RB (Oneida Herkimer Madison) Series 2008		5.25%		08/15/16			650,000		725,953
RB (Cornell Univ) Series 1990B		5.00%		07/01/18			80,000		95,176
RB (New York Univ Hospitals Center) Series 2011A		5.00%		07/01/15			1,000,000		1,088,300
RB (New York Univ Hospitals Center) Series 2011A		5.00%		07/01/19			1,370,000		1,593,680
State Personal Income Tax RB Series 2009A		5.00%		02/15/18			3,000,000		3,539,850
State Personal Income Tax RB Series 2012B		5.00%		03/15/20			5,000,000		6,037,750
New York State Thruway Auth
General RB Series I		5.00%		01/01/20			500,000		596,355
General RB Series I		5.00%		01/01/21			1,000,000		1,199,710
Local Highway & Bridge Service Contract Bonds Series 2009		4.00%		04/01/16			505,000		553,121
Local Highway & Bridge Service Contract Bonds Series 2009		5.00%		04/01/16			1,540,000		1,729,790
Local Highway & Bridge Service Contract Bonds Series 2009		4.00%		04/01/17			750,000		838,358
New York State Urban Development Corp
State Personal Income Tax RB Series 2009A1		5.00%		12/15/17			570,000		673,734
North Syracuse CSD
GO Refunding Bonds Series 2012B		4.00%		06/15/17			800,000		888,488
Scarsdale UFSD
School District GO Refunding Serial Bonds 2012		5.00%		02/01/17			320,000		366,698
School District GO Refunding Serial Bonds 2012		5.00%		02/01/18			350,000		412,125
School District GO Refunding Serial Bonds 2012		4.00%		02/01/19			260,000		296,174
Triborough Bridge & Tunnel Auth
Sub Refunding RB (MTA Bridges & Tunnels) Series 2013A		0.00%		11/15/30	(g)		4,000,000		2,004,520
Sub Refunding RB (MTA Bridges & Tunnels) Series 2013A		0.00%		11/15/31	(g)		2,500,000		1,191,175
Sub Refunding RB (MTA Bridges & Tunnels) Series 2013A		0.00%		11/15/32	(g)		1,900,000		859,750
									64,346,750
NORTH CAROLINA 1.9%
Cary
Combined Enterprise System Refunding RB Series 2013		4.00%		12/01/37	(b)		500,000		531,670
Combined Enterprise System Refunding RB Series 2013		5.00%		12/01/42	(b)		950,000		1,086,477
Durham Cnty
COP Series 2009A		4.00%		06/01/18			1,800,000		2,016,450
North Carolina
Limited Obligation Refunding Bonds Series 2011B		5.00%		11/01/23	(b)		350,000		419,773
North Carolina Housing Finance Agency
Home Ownership RB Series 2009-2		4.25%		01/01/28	(b)		1,500,000		1,629,435
North Carolina Medical Care Commission
Health Care Facilities Refunding RB (Blue Ridge) Series 2010A		4.00%		01/01/15			915,000		955,800
Health Care Facilities Refunding RB (Blue Ridge) Series 2010A		3.50%		01/01/18			120,000		127,178
Health Care Facilities Refunding RB (WakeMed) Series 2012A		5.00%		10/01/21			5,000,000		5,987,750
Wake Cnty
GO Refunding Bonds Series 2009D		4.00%		02/01/17			525,000		586,409
									13,340,942
OHIO 2.0%
Akron, Bath & Copley Jt Township Hospital District
Hospital Refunding RB (Children’s Hospital Medical Center) Series 2012		5.00%		11/15/24	(b)		930,000		1,062,404
Bowling Green State Univ
General Receipts Bonds Series 2010A		3.00%		06/01/13			170,000		170,000
Butler Cnty
Hospital Facilities RB (UC Health) Series 2010		3.00%		11/01/14			585,000		599,958

11

 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		601,733
Columbus
Unlimited Tax GO Bonds Series 2011A		5.00%		07/01/18			2,000,000		2,389,220
Ohio Housing Finance Agency
M/F Housing RB (Haddon Hall Apts) Series 2012F		1.00%		08/01/14	(b)(h)		3,000,000		3,001,560
Toledo
GO Refunding Bonds Series 2012		3.00%		12/01/14			1,000,000		1,032,500
GO Refunding Bonds Series 2012		3.00%		12/01/15			1,810,000		1,917,152
GO Refunding Bonds Series 2012		3.00%		12/01/16			290,000		311,805
Univ of Toledo
General Receipts Bonds Series 2011B		5.00%		06/01/18			1,100,000		1,283,238
General Receipts Bonds Series 2011B		5.00%		06/01/30	(b)		805,000		893,252
Westerville
GO Limited Tax Bonds Series 2010		4.00%		12/01/18			365,000		419,761
									13,682,583
OKLAHOMA 0.7%
Grady Cnty School Finance Auth
Educational Facilities Lease RB (Bridge Creek Public Schools) Series 2008		5.00%		09/01/16	(f)		645,000		718,046
Tulsa Cnty Industrial Auth
Educational Facilities Lease RB (Broken Arrow Public Schools) Series 2012		4.00%		09/01/22			3,750,000		4,091,625
									4,809,671
OREGON 3.3%
Forest Grove
Student Housing RB (Oak Tree Foundation) Series 2007		5.00%		03/01/14	(c)(d)		335,000		339,057
Jefferson Cnty SD No 509J
GO Refunding Bonds Series 2013		4.00%		06/15/20	(a)		1,475,000		1,686,220
GO Refunding Bonds Series 2013		4.00%		06/15/21	(a)		1,580,000		1,803,207
GO Refunding Bonds Series 2013		5.00%		06/15/30	(a)(b)		1,000,000		1,155,210
GO Refunding Bonds Series 2013		5.00%		06/15/31	(a)(b)		1,410,000		1,621,006
GO Refunding Bonds Series 2013		5.00%		06/15/32	(a)(b)		1,515,000		1,733,342
GO Refunding Bonds Series 2013		5.00%		06/15/33	(a)(b)		1,000,000		1,144,120
Lane Community College
GO Bonds Series 2012		4.00%		06/15/20	(a)		2,395,000		2,737,964
Oregon
GO Bonds (Oregon Univ System) Series 2013A		3.25%		08/01/38	(b)		500,000		458,450
GO Bonds (Oregon Univ System) Series 2013C		3.13%		08/01/36	(b)		200,000		181,370
Oregon Health & Science Univ
RB Series 2012A		5.00%		07/01/20			1,000,000		1,184,600
RB Series 2012A		5.00%		07/01/22			1,100,000		1,307,218
RB Series 2012A		5.00%		07/01/26	(b)		500,000		572,915
Oregon State Facilities Auth
RB (Providence Health & Services) Series 2011C		5.00%		10/01/21			400,000		480,024
RB (Providence Health & Services) Series 2011C		5.00%		10/01/22	(b)		300,000		356,274
Refunding RB (Legacy Health) Series 2011A		5.25%		05/01/21			2,000,000		2,365,520
Silver Falls SD No. 4J
GO Refunding Bonds Series 2013		4.00%		06/15/20	(a)		2,525,000		2,877,641
GO Refunding Bonds Series 2013		4.00%		06/15/23	(a)		1,000,000		1,133,260
									23,137,398
PENNSYLVANIA 3.9%
Allegheny Cnty Higher Education Building Auth
RB (Duquesne Univ) Series 2013A		2.50%		03/01/14			205,000		208,233
RB (Duquesne Univ) Series 2013A		3.00%		03/01/15			360,000		375,242
RB (Duquesne Univ) Series 2013A		4.00%		03/01/16			600,000		650,034
RB (Duquesne Univ) Series 2013A		4.00%		03/01/17			500,000		550,260
RB (Duquesne Univ) Series 2013A		4.00%		03/01/20			1,455,000		1,619,124
RB (Duquesne Univ) Series 2013A		5.00%		03/01/33	(b)		600,000		671,598
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		1,919,057

12 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Pennsylvania
COP (Dept of Corrections) Series 2010A		3.00%		04/01/18			620,000		655,092
COP (Dept of Corrections) Series 2010A		3.05%		10/01/18			1,580,000		1,678,134
COP (Dept of Corrections) Series 2010A		3.30%		10/01/19			955,000		1,017,247
COP (Dept of Corrections) Series 2010A		3.50%		04/01/20			465,000		497,304
Pennsylvania Economic Development Financing Auth
Solid Waste Disposal RB (Waste Management) Series 2006		2.75%		09/01/13			2,000,000		2,011,780
Unemployment Compensation RB Series 2012B		5.00%		01/01/23	(b)		2,500,000		2,750,600
Unemployment Compensation RB Series 2012B		5.00%		07/01/23	(b)		1,900,000		2,053,425
Pennsylvania Higher Educational Facilities Auth
RB (Temple Univ) First Series 2012		3.00%		04/01/15			660,000		691,126
RB (Temple Univ) First Series 2012		4.00%		04/01/16			300,000		326,646
RB (Temple Univ) First Series 2012		4.00%		04/01/17			610,000		676,270
RB (Temple Univ) First Series 2012		4.00%		04/01/18			400,000		447,928
Pennsylvania Intergovernmental Coop Auth
Special Tax Refunding RB (Philadelphia Funding Program) Series 2010		5.00%		06/15/18			2,000,000		2,371,880
Special Tax Refunding RB (Philadelphia Funding Program) Series 2010		5.00%		06/15/20			1,070,000		1,296,647
Philadelphia
GO Refunding Bonds Series 2008A		5.25%		12/15/19	(b)		4,080,000		4,692,245
									27,159,872
PUERTO RICO 2.0%
Puerto Rico
GO Public Improvement Refunding Bonds Series 2006A		5.00%		07/01/16			850,000		892,126
Puerto Rico Electric Power Auth
Power RB Series LL		5.50%		07/01/19			2,240,000		2,440,883
Power RB Series ZZ		5.25%		07/01/23	(b)		1,850,000		1,911,679
Power RB Series ZZ		5.25%		07/01/26	(b)		2,250,000		2,291,130
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		308,979
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		5.00%		10/01/15			1,000,000		1,070,310
Puerto Rico Sales Tax Financing Corp
Sales Tax RB First Sub Series 2009A		5.75%		08/01/37	(b)		5,000,000		5,349,100
									14,264,207
SOUTH CAROLINA 0.5%
Beaufort-Jasper Water & Sewer Auth
Refunding RB Series 2010B		5.00%		03/01/22			95,000		119,216
Refunding RB Series 2010B		5.00%		03/01/23			495,000		629,318
Charleston Educational Excellence Financing Corporation
Installment Purchase Refunding RB Series 2013B		5.00%		12/01/22			1,050,000		1,266,583
Installment Purchase Refunding RB Series 2013B		5.00%		12/01/24	(b)		1,000,000		1,194,740
									3,209,857
SOUTH DAKOTA 0.2%
South Dakota Building Auth
RB Series 2011		3.00%		06/01/13			300,000		300,000
RB Series 2011		3.00%		06/01/15			620,000		649,121
RB Series 2011		3.00%		06/01/16			165,000		174,243
RB Series 2011		4.00%		06/01/21	(b)		255,000		277,188
South Dakota Health & Educational Facilities Auth
RB (Sanford Health) Series 2009		5.00%		11/01/17			100,000		116,118
									1,516,670
TENNESSEE 0.6%
Memphis
Electric System Sub Refunding RB Series 2010		2.50%		12/01/14			70,000		72,297
Electric System Sub Refunding RB Series 2010		5.00%		12/01/14			900,000		962,928
Refunding Bonds Series 2011		5.00%		05/01/20			2,000,000		2,450,180

13

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Metro Government of Nashville & Davidson Cnty Health & Educational Facilities Board
RB (Belmont Univ) Series 2012		4.00%		11/01/21			570,000		627,182
									4,112,587
TEXAS 7.4%
Arlington ISD
Unlimited Tax GO Bonds Series 2011A		5.00%		02/15/36	(a)(b)(f)		3,650,000		4,141,728
Beaumont ISD
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/33	(a)(b)(f)		2,315,000		2,639,447
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/36	(a)(b)(f)		1,900,000		2,145,366
Burkburnett ISD
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/18	(a)(b)		250,000		250,458
Cedar Hill ISD
Unlimited Tax Refunding Bonds Series 2012A		0.00%		02/15/24	(a)(g)		400,000		302,484
Collin Cnty
Limited Tax Refunding & Permanent Improvement Bonds Series 2009A		4.00%		02/15/19	(f)		695,000		789,075
Crandall ISD
Unlimited Tax Refunding Bonds Series 2012A		0.00%		08/15/24	(a)(b)(g)		950,000		691,296
Unlimited Tax Refunding Bonds Series 2012A		0.00%		08/15/25	(a)(b)(g)		1,000,000		696,340
Dallas-Fort Worth
Jt Refunding RB Series 2012B		5.00%		11/01/22	(b)		1,530,000		1,772,520
Denton ISD
Unlimited Tax Refunding Bonds Series 2012D		3.00%		08/15/33	(a)(b)		1,000,000		917,960
Denver City ISD
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/16	(a)(b)		580,000		581,392
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/17	(a)(b)		1,000,000		1,002,050
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/18	(a)(b)		1,220,000		1,222,025
Unlimited Tax Refunding Bonds Series 2012		2.00%		02/15/19	(a)(b)		1,775,000		1,776,864
El Paso
Water & Sewer Refunding RB Series 2008C		5.00%		03/01/19	(b)		200,000		231,802
Ferris ISD
Unlimited Tax Refunding Bonds Series 2011		2.00%		08/15/17	(a)		345,000		359,135
Unlimited Tax Refunding Bonds Series 2011		2.50%		08/15/18	(a)		150,000		159,323
Unlimited Tax Refunding Bonds Series 2011		2.50%		08/15/19	(a)(b)		290,000		301,925
Fort Bend Cnty
Limited Tax & Refunding Bonds Series 2009		5.00%		03/01/17			100,000		115,239
Fort Worth
Combination Tax & Parking Revenue Bonds Series 2009		4.45%		03/01/18	(c)		1,750,000		1,913,625
Garland ISD
Unlimited Tax Refunding Bonds Series 2012A		3.00%		02/15/23	(a)(b)		1,525,000		1,531,618
Gregory-Portland ISD
Unlimited Tax GO Bonds Series 2013		3.00%		08/15/21	(a)(b)		1,635,000		1,726,854
Harris Cnty Cultural Education Facilities Finance Corp
Refunding RB (Methodist Hospital) Series 2009B2		5.00%		12/01/41	(b)		1,000,000		1,000,000
Houston Community College System
Limited Tax GO Bonds Series 2013		5.00%		02/15/37	(b)		2,000,000		2,198,340
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/16			500,000		558,850
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/17			500,000		575,305
Limited Tax Refunding Bonds Series 2011		5.00%		02/15/18			1,000,000		1,175,940
Klein ISD
Unlimited Tax Refunding Bonds Series 2009A		4.00%		08/01/17			660,000		743,259
La Joya ISD
Unlimited Tax Refunding Bonds Series 2013		3.00%		02/15/21	(a)		500,000		537,335
Lone Star College System
Maintenance Tax Notes Series 2009		3.25%		09/15/18			150,000		165,518
Loop ISD
Unlimited Tax GO Bonds Series 2012		2.00%		02/15/18	(a)(b)		350,000		350,546
Lubbock Health Facilities Development Corp
Refunding RB (St. Joseph Health) Series 2008B		5.00%		07/01/20			1,750,000		2,074,310
Midland ISD
Unlimited Tax Refunding Bonds Series 2011		5.00%		02/15/18	(a)		625,000		737,469
Unlimited Tax Refunding Bonds Series 2011		4.00%		02/15/20	(a)		860,000		990,522
Unlimited Tax Refunding Bonds Series 2012		4.00%		02/15/20	(a)		510,000		587,403
Unlimited Tax Refunding Bonds Series 2012		4.00%		02/15/21	(a)		1,210,000		1,392,008

14 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
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		1,144,920
North Texas Tollway Auth
System RB Series 2011A		5.00%		09/01/21			500,000		599,950
Plano
GO Refunding RB Series 2011		5.00%		09/01/21			750,000		922,020
Rockwall ISD
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/20	(a)		185,000		224,908
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/22	(a)(b)		450,000		538,362
Unlimited Tax Refunding Bonds Series 2012		5.00%		02/15/24	(a)(b)		275,000		325,969
San Antonio
Electric & Gas Systems Refunding RB Series 2002		5.38%		02/01/14			200,000		206,736
Electric & Gas Systems Refunding RB Series 2009D		5.00%		02/01/17			1,130,000		1,300,630
Sunnyvale ISD
Unlimted Tax GO Bonds Series 2011		5.00%		02/15/19	(a)		195,000		233,526
Unlimted Tax GO Bonds Series 2011		3.00%		02/15/20	(a)		110,000		119,519
Unlimted Tax GO Bonds Series 2011		5.00%		02/15/22	(a)(b)		120,000		144,224
Tatum ISD
Unlimited Tax GO Bonds Series 2012		5.00%		02/15/23	(a)(b)		750,000		883,770
Unlimited Tax GO Bonds Series 2012		5.00%		02/15/25	(a)(b)		680,000		793,648
Texas State Affordable Housing Corp
S/F Mortgage RB Series 2011B		4.45%		09/01/28	(b)		805,000		874,117
Tomball ISD
Unlimited Tax GO Bonds Series 2011		5.00%		02/15/21	(a)		250,000		305,028
Travis Cnty
Limited Tax Refunding Bonds Series 2009		5.00%		03/01/18			1,625,000		1,915,176
Williamson Cnty
Limited Tax GO Refunding Bonds Series 2011		5.00%		02/15/21			1,000,000		1,220,910
Wink Loving ISD
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/15	(a)		700,000		731,794
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/16	(a)		700,000		744,639
Unlimited Tax GO Bonds Series 2012		3.00%		02/15/17	(a)		500,000		538,445
									52,123,622
UTAH 0.5%
Riverton
RB (IHC Health Services) Series 2009		5.00%		08/15/15			950,000		1,043,395
Salt Lake Cnty
Sales Tax Refunding RB Series 2010A		3.00%		02/01/15			725,000		757,545
Sales Tax Refunding RB Series 2010A		3.00%		02/01/16			300,000		316,980
West Valley City
Sales Tax Refunding RB Series 2013A		2.00%		07/15/16			410,000		422,653
Sales Tax Refunding RB Series 2013A		2.00%		07/15/19			425,000		428,910
Sales Tax Refunding RB Series 2013A		3.00%		07/15/21			470,000		489,608
									3,459,091
VERMONT 0.7%
Vermont HFA
RB Series 2011A		4.50%		02/01/26	(b)		4,315,000		4,659,466
VIRGINIA 1.3%
Chesterfield Cnty Economic Development Auth
Public Facility Refunding RB (Juvenile Courts) Series 2010A		4.00%		01/01/19	(f)		455,000		511,957
Hanover Cnty
Refunding RB Series 2011A		5.25%		01/15/31	(b)		295,000		341,813
Henrico Cnty
GO Refunding Bonds Series 2009		4.00%		03/01/18			95,000		108,205
GO Refunding Bonds Series 2010		5.00%		07/15/17			500,000		585,645
Prince William Cnty IDA
Life Sciences Lab RB (George Mason Univ) Series 2011AA		5.00%		09/01/17			445,000		501,301
Life Sciences Lab RB (George Mason Univ) Series 2011AA		4.00%		09/01/18			255,000		277,458
Life Sciences Lab RB (George Mason Univ) Series 2011AA		4.00%		09/01/20			325,000		349,502
Life Sciences Lab RB (George Mason Univ) Series 2011AA		5.50%		09/01/34	(b)		405,000		450,259

15

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Richmond
GO Bonds Series 2009A		4.00%		07/15/16			85,000		93,866
Virginia Beach Development Auth
M/F Housing RB (New Sands Apts) Series 2011		1.10%		12/01/13	(b)(h)		2,925,000		2,925,000
Virginia Commonwealth Univ Health System Auth
General RB Series 2011		5.00%		07/01/26	(b)		590,000		681,344
General RB Series 2011		5.00%		07/01/27	(b)		1,000,000		1,147,820
Virginia Housing Development Auth
Homeownership Mortgage Bonds Series 2010A		4.00%		03/01/20	(b)		175,000		187,873
Virginnia 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		435,980
Water & Sewer System Refunding RB (Goochland Cnty & Tuckahoe Creek Services District) Series 2012		0.00%		11/01/34	(b)(g)		1,000,000		411,630
Water & Sewer System Refunding RB (Goochland Cnty & Tuckahoe Creek Services District) Series 2012		0.00%		11/01/36	(b)(g)		500,000		184,295
									9,193,948
WASHINGTON 2.6%
Bellevue
Limited Tax GO Refunding Bonds Series 2012B		4.00%		12/01/43	(b)		1,000,000		1,015,870
Camas SD No. 117
Unlimited Tax GO Refunding Bonds 2012		2.00%		12/01/13	(a)		1,950,000		1,966,653
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/17	(a)		2,850,000		3,354,678
Energy Northwest
Electric Refunding RB (Project No. 3) Series 2009A		5.25%		07/01/18			1,000,000		1,203,630
Ridgefield SD No. 122
Unlimited Tax GO Bonds 2012		3.00%		12/01/20	(a)		1,520,000		1,617,599
Washington
GO Bonds Series 1990A		6.75%		02/01/15			440,000		470,136
Washington Health Care Facilities Auth
RB (Providence Health & Services) Series 2012A		5.00%		10/01/20			700,000		839,720
RB (Providence Health & Services) Series 2012A		5.00%		10/01/22			1,800,000		2,160,468
Washougal SD No. 112-6
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/15	(a)		830,000		919,208
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/18	(a)		2,390,000		2,844,435
Unlimited Tax GO Refunding Bonds 2012		5.00%		12/01/19	(a)		1,280,000		1,540,211
									17,932,608
WISCONSIN 0.6%
Kaukauna Area SD
GO Refunding Bonds		3.00%		03/01/14			495,000		504,519
Wisconsin Health & Educational Facilities Auth
RB (Aurora Health Care) Series 2009B1		4.75%		08/15/25	(b)		475,000		495,686
RB (Aurora Health Care) Series 2009B2		5.13%		08/15/27	(b)		1,250,000		1,382,950
RB (Children’s Hospital of Wisconsin) Series 2008B		4.20%		08/15/18			400,000		448,872
RB (Children’s Hospital of Wisconsin) Series 2008B		5.38%		08/15/24	(b)		805,000		934,436
RB (Gundersen Lutheran) Series 2011A		2.50%		10/15/13			750,000		755,730
									4,522,193
Total Fixed-Rate Obligations
(Cost $633,151,263)									659,080,878
Variable-Rate Obligations 4.0% of net assets
CONNECTICUT 1.8%
Connecticut
GO Bonds Series 2011A		1.04%		05/15/18			5,275,000		5,405,873
GO Bonds Series 2011C		1.22%		05/15/19			5,000,000		5,150,000
GO Bonds Series 2012A		1.37%		04/15/20	(f)		1,000,000		1,041,750
GO Bonds Series 2012D		0.89%		09/15/18			1,000,000		1,016,820
									12,614,443

16 

 Schwab Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
DISTRICT OF COLUMBIA 0.5%
District of Columbia
Income Tax Secured Refunding RB Series 2011E		0.87%		12/01/17	(b)		3,240,000		3,258,889
MASSACHUSETTS 0.8%
Massachusetts
GO Refunding Bonds Series 2011A		0.78%		02/01/15	(b)		1,000,000		1,006,130
Massachusetts Development Finance Agency
RB (Boston Univ) Series U1		0.73%		10/01/40	(b)		1,000,000		1,000,320
RB (Boston Univ) Series U6E		0.67%		10/01/42	(b)		4,000,000		4,001,120
									6,007,570
NEW JERSEY 0.7%
New Jersey Economic Development Auth
School Facilities Construction Refunding Notes Series 2013I		1.72%		03/01/28	(b)		5,000,000		5,110,250
PENNSYLVANIA 0.2%
Allegheny Cnty Hospital Development Auth
RB (Univ of Pittsburgh Medical Center) Series 2010F		1.17%		05/15/38	(b)(f)		1,500,000		1,500,930
Total Variable-Rate Obligations
(Cost $28,015,000)									28,492,082
End of Investments.

At 05/31/13, the tax basis cost of the fund’s investments was $661,145,229 and the unrealized appreciation and depreciation were $28,610,475 and ($2,182,744), respectively, with a net unrealized appreciation of $26,427,731.

(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 $2,252,682 or 0.3% of net assets.
(d)	Illiquid security. At the period end, the value of these amounted to $339,057 or 0.0% 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.

CCD —	Community college district
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
M/F —	Multi-family
RB —	Revenue bond
SD —	School district
S/F —	Single-family
UFSD —	Union free school district
UHSD —	Union high school district
USD —	Unified school district

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.

17

 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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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 fund in estimating the value

18 

 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.

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 May 31, 2013:

	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		$—		$659,080,878		$—		$659,080,878
Variable-Rate Obligations1		—		28,492,082		—		28,492,082
Total		$—		$687,572,960		$—		$687,572,960

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

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 May 31, 2013.

REG406022MAY13

19

Schwab Investments
Schwab California Tax-Free Bond Fund™

Portfolio Holdings as of May 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.

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				($)		($)
	95	.1%	Fixed-Rate Obligations		413,592,166		433,514,366
	4	.9%	Variable-Rate Obligations		22,085,000		22,150,244
	100	.0%	Total Investments		435,677,166		455,664,610
	0	.0%	Other Assets and Liabilities, Net				(17,142	)
	100	.0%	Net Assets				455,647,468

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		4,112,395
RB (Sharp HealthCare) Series 2009B		6.00%		08/01/24	(b)(e)		875,000		1,018,832
RB (Sharp HealthCare) Series 2011A		6.00%		08/01/30	(b)(e)		2,000,000		2,366,000
RB (Sharp HealthCare) Series 2012A		5.00%		08/01/28	(b)(e)		235,000		261,301
Refunding RB (Episcopal Sr Communities) Series 2012B		2.00%		07/01/13			275,000		275,303
Refunding RB (Episcopal Sr Communities) Series 2012B		2.00%		07/01/14			340,000		343,907
Refunding RB (Episcopal Sr Communities) Series 2012B		3.00%		07/01/15			410,000		425,486
Refunding RB (Episcopal Sr Communities) Series 2012B		3.00%		07/01/16			815,000		846,581
Refunding RB (Episcopal Sr Communities) Series 2012B		4.00%		07/01/17			1,580,000		1,697,836
Refunding RB (Episcopal Sr Communities) Series 2012B		5.00%		07/01/20			530,000		603,967
Refunding RB (Eskaton Properties) Series 2013		2.00%		11/15/13	(d)		425,000		427,278
Refunding RB (Eskaton Properties) Series 2013		3.00%		11/15/15	(d)		1,175,000		1,220,308
Alameda Corridor Transportation Auth
Sr Lien Refunding RB Series 2013A		5.00%		10/01/20			500,000		597,175
Sr Lien Refunding RB Series 2013A		5.00%		10/01/21			1,250,000		1,496,937
Alhambra USD
Refunding GO Bonds Series 2012A		5.00%		08/01/21			500,000		584,855
Refunding GO Bonds Series 2012A		5.00%		08/01/22			500,000		585,635
Refunding GO Bonds Series 2012A		5.00%		08/01/24	(b)		675,000		780,597
Anaheim Public Financing Auth
Electric System Distribution Facilities RB Series 2011A		5.00%		10/01/25	(b)(e)		2,000,000		2,298,000
Lease Refunding RB Series 2008		4.50%		08/01/17	(e)		465,000		528,635
Bay Area Toll Auth
Toll Bridge RB Series 2012F1		4.00%		04/01/18			850,000		967,164
Bellflower USD
GO Bonds Series 2012A		5.00%		08/01/29	(b)		1,750,000		1,948,905
GO Bonds Series 2012A		5.00%		08/01/30	(b)		1,090,000		1,208,995
GO Bonds Series 2012A		5.00%		08/01/31	(b)		1,240,000		1,370,956
Berkeley Joint Powers Financing Auth
Refunding Lease RB Series 2012 (1999 & 2003 Refinancing)		4.00%		10/01/16			750,000		822,817
Beverly Hills Public Finance Auth
Lease RB Series 2010A		4.00%		06/01/16	(e)		100,000		109,775
Bret Harte UHSD
GO BAN 2012		3.00%		03/15/15	(e)		2,500,000		2,593,275
Brisbane SD
GO Bonds Series 2005		0.00%		07/01/36	(f)		755,000		213,023
GO Bonds Series 2005		0.00%		07/01/37	(f)		1,275,000		338,168

1

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
California
Economic Recovery Bonds Series 2004A		5.25%		07/01/13	(g)		165,000		165,602
Economic Recovery Bonds Series 2004A		5.25%		07/01/13			275,000		276,045
GO Bonds		4.00%		09/01/17			1,500,000		1,684,290
GO Bonds		5.00%		09/01/17			2,000,000		2,328,460
GO Bonds		4.00%		09/01/18			1,500,000		1,708,530
GO Bonds		5.00%		09/01/18			3,000,000		3,568,710
GO Bonds		5.00%		10/01/18			2,000,000		2,383,840
GO Bonds		5.50%		04/01/19			1,000,000		1,219,690
GO Bonds		5.00%		11/01/19			3,000,000		3,616,590
GO Bonds		5.00%		09/01/20			2,560,000		3,102,003
GO Bonds		5.00%		11/01/24	(b)		2,000,000		2,319,940
GO Bonds		5.00%		11/01/25	(b)(e)		2,090,000		2,424,337
GO Bonds		5.25%		12/01/28	(b)(g)		525,000		551,019
GO Bonds		6.50%		04/01/33	(b)		1,425,000		1,756,327
GO Bonds		6.00%		11/01/35	(b)		1,440,000		1,758,499
GO Bonds		5.00%		04/01/38	(b)		1,255,000		1,346,439
GO Bonds		5.50%		03/01/40	(b)		945,000		1,096,880
GO Bonds		4.00%		02/01/43	(b)		2,000,000		1,965,780
GO Bonds Series 2000		5.63%		05/01/18	(b)		25,000		25,093
GO Refunding Bonds		5.00%		02/01/14			500,000		515,615
GO Refunding Bonds		5.00%		10/01/17			185,000		215,882
GO Refunding Bonds		5.00%		09/01/21			1,455,000		1,773,892
GO Refunding Bonds		5.25%		10/01/22			2,785,000		3,439,141
GO Refunding Bonds		5.25%		10/01/32	(b)(e)		4,350,000		4,989,972
RAN 2012-2013 Series A2		2.50%		06/20/13			3,330,000		3,333,663
California Dept of Veterans Affairs
Home Purchase RB Series 2012A		3.00%		12/01/21	(b)		3,105,000		3,185,016
California Dept of Water Resources
Power Supply RB Series 2008H		4.50%		05/01/17			1,550,000		1,771,371
Power Supply RB Series 2010M		4.00%		05/01/19			750,000		862,905
Water System RB (Central Valley) Series AI		5.00%		12/01/16			2,000,000		2,306,380
Water System RB (Central Valley) Series AP		4.00%		12/01/33	(b)		795,000		850,411
California Educational Facilities Auth
RB (Pomona College) Series 2011		4.00%		01/01/14	(e)		395,000		403,627
RB (Pomona College) Series 2011		4.00%		01/01/15	(e)		280,000		296,330
RB (Pomona College) Series 2011		4.00%		01/01/16	(e)		400,000		433,804
RB (Pomona College) Series 2011		4.00%		01/01/17	(e)		200,000		220,854
RB (Univ of San Francisco) Series 2011		5.00%		10/01/21	(e)		595,000		704,159
RB (Univ of Southern California) Series 2009C		5.25%		10/01/24	(e)		2,000,000		2,550,700
Refunding RB (Univ of San Diego) Series 2011		4.50%		10/01/17	(e)		1,230,000		1,386,050
Refunding RB (Univ of San Diego) Series 2011		5.00%		10/01/18	(e)		680,000		791,826
Refunding RB (Univ of San Diego) Series 2011		5.00%		10/01/21	(e)		500,000		589,675
California Health Facilities Financing Auth
Insured RB (NCROC Paradise Valley Estates) Series 2005		4.38%		12/01/13	(a)(e)		170,000		173,239
RB (Adventist Health/West) Series 2009C		5.00%		03/01/14	(e)		750,000		774,060
RB (Catholic Healthcare West) Series 2009F		5.00%		07/01/27	(b)(e)		1,500,000		1,572,255
RB (Chinese Hospital Assoc) Series 2012		5.00%		06/01/37	(a)(b)		500,000		542,550
RB (City of Hope) Series 2012A		5.00%		11/15/21			700,000		837,767
RB (City of Hope) Series 2012A		5.00%		11/15/22			750,000		897,780
RB (Community Program for Persons with Developmental Disabilities) Series 2011A		5.25%		02/01/20	(a)(e)		905,000		1,063,972
RB (Memorial Health Services) Series 2012A		4.00%		10/01/17	(e)		750,000		841,552
RB (NCROC Paradise Valley Estates) Series 2005		4.63%		12/01/15	(a)(e)		150,000		163,877
RB (NCROC Paradise Valley Estates) Series 2005		4.75%		12/01/16	(a)(e)		340,000		382,860
RB (NCROC Paradise Valley Estates) Series 2005		4.88%		12/01/17	(a)(e)		200,000		231,268
RB (NCROC Paradise Valley Estates) Series 2005		5.00%		12/01/18	(a)(e)		175,000		207,359
RB (Rady Children’s Hospital) Series 2011		5.50%		08/15/26	(b)(e)		3,435,000		4,000,367
RB (Scripps Health) Series 2008A		5.00%		10/01/16	(e)		3,285,000		3,701,768
RB (St. Joseph Health) Series 2009C		5.00%		07/01/34	(b)(e)		3,000,000		3,156,660
Refunding RB (Marshall Medical Center) Series 2012A		3.00%		11/01/13	(a)		270,000		272,819
Refunding RB (Marshall Medical Center) Series 2012A		4.00%		11/01/16	(a)		1,330,000		1,448,769
Refunding RB (NCROC - Paradise Valley Estates) Series 2013		2.00%		01/01/14	(a)		1,975,000		1,992,814
Refunding RB (NCROC - Paradise Valley Estates) Series 2013		3.00%		01/01/15	(a)		500,000		518,110
California HFA
Limited Obligation M/F Housing RB (Woolf House Apts) Series 2011B		1.05%		01/01/14	(b)(e)(g)		5,950,000		5,952,201

2 

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
California Infrastructure & Economic Development Bank
RB (California ISO) Series 2009A		5.25%		02/01/21	(b)(e)		1,925,000		2,044,850
RB (Sanford Consortium) Series 2010A		4.00%		05/15/17			315,000		351,978
RB (Sanford Consortium) Series 2010A		4.00%		05/15/18			775,000		879,664
RB (Sanford Consortium) Series 2010A		5.00%		05/15/20			245,000		295,076
RB (USC) Series 2010		5.00%		12/01/19			470,000		567,798
RB (USC) Series 2010		3.25%		12/01/21	(b)		750,000		806,242
RB (USC) Series 2010		5.00%		12/01/23	(b)		720,000		843,847
Refunding RB (Pepperdine Univ) Series 2010		5.00%		11/01/26	(b)		400,000		449,020
Refunding RB (Pepperdine Univ) Series 2010		5.00%		11/01/27	(b)		200,000		223,272
California Public Works Board
Lease RB (California State Univ) Series 2009J		6.00%		11/01/29	(b)		400,000		478,456
Lease RB (Dept of Corrections & Rehabilitation) Series 2011C		5.75%		10/01/31	(b)		1,000,000		1,169,040
Lease RB (Dept of Corrections) Series 1993E		5.50%		06/01/15			240,000		249,751
Lease RB (Judicial Council of California) Series 2011D		5.00%		12/01/22	(b)		1,000,000		1,186,780
Lease RB (Judicial Council of California) Series 2013A		5.00%		03/01/27	(b)		1,000,000		1,117,580
Lease RB (Univ of California) Series 2011G		5.00%		12/01/25	(b)		2,700,000		3,197,529
Lease RB (Univ of California) Series 2011G		5.25%		12/01/26	(b)		1,000,000		1,199,010
Lease RB Series 2009G1		5.25%		10/01/24	(b)		2,100,000		2,434,383
Lease RB Series 2012A		5.00%		04/01/23	(b)		3,000,000		3,533,190
Lease RB Series 2012G		4.00%		11/01/16			1,000,000		1,105,150
Lease RB Series 2012G		4.00%		11/01/17			1,000,000		1,122,080
Lease RB Series 2012G		5.00%		11/01/18			1,990,000		2,351,444
Lease Refunding RB (Dept of Corrections & Rehabilitation) Series 2012C		5.00%		06/01/18			1,500,000		1,752,240
California Statewide Communities Development Auth
Health Facility RB (Monterey Peninsula Community Hospital) Series 2011A		6.00%		06/01/33	(b)		1,000,000		1,175,200
M/F Housing RB (740 S Olive St Apts) Series 2009L		2.10%		07/20/14	(a)		250,000		250,528
RB (Cottage Health) Series 2010		5.00%		11/01/16			225,000		255,139
RB (Cottage Health) Series 2010		5.00%		11/01/17			475,000		551,114
RB (Cottage Health) Series 2010		5.00%		11/01/18			600,000		707,274
RB (Enloe Medical Center) Series 2008A		5.50%		08/15/13	(a)		250,000		251,870
RB (Kaiser Permanente) Series 2009A		5.00%		04/01/14			4,340,000		4,508,826
RB (Kaiser Permanente) Series 2009A		4.63%		04/01/19			100,000		117,480
RB (Proposition 1A Receivables) Series 2009		5.00%		06/15/13			5,095,000		5,103,050
RB (St. Joseph Health) Series 2000		4.50%		07/01/18			4,520,000		4,808,964
RB (Sutter Health) Series 2011A		6.00%		08/15/42	(b)		875,000		1,040,567
Refunding RB (Episcopal Communities & Services) Series 2012		5.00%		05/15/24	(b)		620,000		688,870
Refunding RB (Episcopal Communities & Services) Series 2012		5.00%		05/15/21			300,000		342,126
Sr Living RB (Southern California Presbyterian Homes) Series 2009		5.25%		11/15/14			435,000		453,501
Carson Redevelopment Agency
Tax Allocation Sub Bonds (Merged Area Redevelopment) Series 2003D		6.00%		01/01/35	(b)(g)		500,000		516,400
Centralia SD
2012 GO Refunding Bonds		4.00%		08/01/20			205,000		232,644
2012 GO Refunding Bonds		4.00%		08/01/21			350,000		396,232
2012 GO Refunding Bonds		4.00%		08/01/24	(b)		575,000		641,683
Cerritos CCD
GO Bonds Series 2012D		0.00%		08/01/26	(f)		1,000,000		581,780
Chula Vista
Refunding IDRB (SDG&E) Series 2006A		1.65%		07/01/18	(b)		2,000,000		2,020,120
Citrus Heights Water District
Revenue Refunding COP Series 2010		3.00%		10/01/13			200,000		201,796
Revenue Refunding COP Series 2010		4.00%		10/01/20			120,000		128,566
Contra Costa CCD
GO Refunding Bonds 2012		4.00%		08/01/30	(b)		2,060,000		2,163,103
GO Refunding Bonds Series 2011		5.00%		08/01/22	(b)		1,040,000		1,250,267
Contra Costa Transportation Auth
Sales Tax RB Series 2012B		5.00%		03/01/25	(b)		1,000,000		1,178,560
Convention Center Expansion Financing Auth
Lease Refunding RB Series 2012A		4.00%		04/15/17			575,000		627,590
Lease Refunding RB Series 2012A		4.00%		04/15/18			1,000,000		1,101,450
Lease Refunding RB Series 2012A		5.00%		04/15/19			1,000,000		1,153,160
Cotati-Rohnert Park USD
GO Refunding Bonds 2013		3.00%		08/01/14			515,000		528,122
GO Refunding Bonds 2013		4.00%		08/01/15			775,000		823,592
GO Refunding Bonds 2013		4.00%		08/01/16			500,000		541,275

3

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Cupertino Union SD
GO Refunding Bonds Series 2011A		5.00%		08/01/23	(b)		240,000		289,514
GO Refunding Bonds Series 2011A		5.00%		08/01/24	(b)		600,000		706,158
GO Refunding Bonds Series 2011A		5.00%		08/01/26	(b)		325,000		379,379
East Bay Municipal Utility District
Water System Refunding RB Series 2013A		5.00%		06/01/20			2,000,000		2,465,780
Water System Refunding RB Series 2013A		5.00%		06/01/21			3,000,000		3,726,480
East Bay Regional Park District
GO Refunding Bonds Series 2008		5.00%		09/01/13			135,000		136,540
El Camino CCD
GO Refunding Bonds Series 2012		5.00%		08/01/23	(b)		1,500,000		1,817,430
Emery USD
GO Bonds Series 2011A		6.50%		08/01/31	(b)		2,500,000		3,057,800
GO Bonds Series 2012D		0.00%		08/01/36	(b)(f)		2,550,000		766,326
GO Bonds Series 2012D		0.00%		08/01/42	(b)(f)		3,500,000		731,885
Foothill-DeAnza CCD
GO Refunding Bonds Series 2012		5.00%		08/01/22			1,380,000		1,711,724
Forestville Union SD
GO Bonds Series 2011		6.25%		08/01/32	(b)		835,000		1,016,496
Franklin-McKinley SD
GO Bonds Series 2012B		4.00%		08/01/16			325,000		355,209
GO Bonds Series 2012B		4.00%		08/01/17			150,000		166,716
Glendale Redevelopment Agency
Tax Allocation Bonds Series 2002		5.25%		12/01/19	(b)		3,275,000		3,349,244
Golden State Tobacco Securitization Corp
Tobacco Settlement Asset-Backed Bonds Series 2003A1		6.25%		06/01/33	(b)(g)		4,545,000		4,545,000
Golden West Schools Financing Auth
GO RB (Rowland USD) Series 2005		5.25%		09/01/24			1,675,000		2,062,829
Grossmont UHSD
GO Refunding Bonds Series 2012		4.00%		08/01/20			2,500,000		2,856,850
Guerneville Elementary SD
GO Bonds Series 2012A		6.13%		08/01/42	(b)		1,105,000		1,282,551
Healdsburg Redevelopment Agency
Tax Allocation Bonds (Sotoyome) Series 2010		5.00%		08/01/25	(b)		575,000		640,314
Tax Allocation Bonds (Sotoyome) Series 2010		5.25%		08/01/30	(b)		1,000,000		1,098,590
Huntington Beach Public Finance Auth
Lease Refunding RB Series 2011A		2.50%		09/01/13			750,000		754,080
Imperial Irrigation District
Electric System Refunding RB Series 2011C		5.00%		11/01/14			200,000		212,676
Electric System Refunding RB Series 2011C		5.00%		11/01/15			365,000		403,205
Electric System Refunding RB Series 2011C		5.00%		11/01/17			600,000		700,356
Electric System Refunding RB Series 2011C		5.00%		11/01/18			425,000		505,113
Electric System Refunding RB Series 2011D		5.00%		11/01/19			720,000		861,682
Electric System Refunding RB Series 2011D		5.00%		11/01/20			750,000		886,590
Electric System Refunding RB Series 2011D		5.00%		11/01/21			1,235,000		1,459,523
Jefferson Elementary SD
GO Bonds Series 2012A		4.00%		09/01/37	(b)(d)		1,160,000		1,114,621
Kern Cnty
Refunding COP 2011 Series A		5.00%		11/01/17			1,460,000		1,663,655
Refunding COP 2011 Series A		5.00%		11/01/18			1,235,000		1,433,526
Lodi Public Financing Auth
Wastewater Refunding RB Series 2012A		4.00%		10/01/16			300,000		326,556
Wastewater Refunding RB Series 2012A		4.00%		10/01/18			500,000		552,370
Wastewater Refunding RB Series 2012A		4.00%		10/01/19			750,000		820,440
Wastewater Refunding RB Series 2012A		4.00%		10/01/20			450,000		489,555
Wastewater Refunding RB Series 2012A		4.00%		10/01/21			725,000		778,570
Long Beach CCD
GO Bonds Series 2012B		5.00%		08/01/24	(b)		770,000		925,933
Los Angeles
Airport Sr RB Series 2010A		4.00%		05/15/20			225,000		258,919
Judgment Obligation Bonds Series 2010A		5.00%		06/01/20			5,690,000		6,737,074
Wastewater System Sub Refunding RB Series 2012A		4.00%		06/01/16			575,000		633,006
Wastewater System Sub Refunding RB Series 2012A		5.00%		06/01/17			2,500,000		2,901,800
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/18			250,000		284,710
Wastewater System Sub Refunding RB Series 2012B		5.00%		06/01/20			500,000		607,195
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/22			490,000		560,717

4 

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Wastewater System Sub Refunding RB Series 2012B		4.00%		06/01/24	(b)		1,075,000		1,197,679
Wastewater System Sub Refunding RB Series 2012C		5.00%		06/01/21			225,000		274,608
Los Angeles CCD
GO Bonds Series 2009A		6.00%		08/01/33	(b)		1,545,000		1,860,489
Los Angeles Cnty
Refunding COP 2012		5.00%		09/01/22			2,250,000		2,658,442
Los Angeles Cnty Metropolitan Transportation Auth
First Tier Sr Sales Tax Refunding RB Series 2013A		5.00%		07/01/20			2,500,000		3,085,025
Los Angeles Dept of Airports
Airport Sub RB (Los Angeles Int’l Airport) Series 2010B		5.00%		05/15/21	(b)		230,000		272,562
Los Angeles Dept of Water & Power
Power System RB Series 2009B		5.25%		07/01/23	(b)		1,700,000		2,026,196
Power System RB Series 2011A		4.00%		07/01/16			515,000		567,721
Power System RB Series 2011A		5.00%		07/01/18			3,380,000		4,028,554
Power System RB Series 2012C		4.00%		01/01/16	(b)		1,925,000		2,081,753
Power System RB Series 2012C		5.00%		01/01/16	(b)		770,000		850,465
Power System RB Series 2013A		5.00%		07/01/28	(b)		3,100,000		3,595,690
Los Angeles Harbor Dept
Refunding RB Series 2011B		5.00%		08/01/24	(b)		1,000,000		1,178,540
Los Angeles Municipal Improvement Corp
Lease RB (Capital Equipment) Series 2007A		5.00%		08/01/14			175,000		183,395
Lease RB (Capital Equipment) Series 2010A		4.00%		11/01/16			95,000		103,583
Lease RB (Capital Equipment) Series 2012A		4.00%		03/01/16			1,200,000		1,287,888
Lease RB (Capital Equipment) Series 2012A		5.00%		03/01/16			2,500,000		2,750,175
Lease RB (Real Property) Series 2012B		4.00%		03/01/24	(b)		50,000		52,988
Los Angeles USD
Refunding COP Series 2012A		5.00%		10/01/20			2,375,000		2,813,567
Refunding COP Series 2012A		5.00%		10/01/21			2,195,000		2,583,274
Refunding COP Series 2012A		5.00%		10/01/22			2,800,000		3,294,704
Refunding COP Series 2012B		4.00%		10/01/17			185,000		205,596
Los Gatos
COP 2010		5.00%		08/01/21	(b)		500,000		570,875
M-S-R Public Power Agency
Sub Lien RB Series 2008L		5.00%		07/01/16			830,000		934,497
Sub Lien RB Series 2008L		5.00%		07/01/17			855,000		988,542
Malibu
COP Series 2009A		4.00%		07/01/14			70,000		72,755
COP Series 2009A		4.00%		07/01/17			100,000		111,348
COP Series 2009A		4.00%		07/01/18			75,000		84,633
COP Series 2009A		5.00%		07/01/20	(b)		75,000		88,321
COP Series 2009A		5.00%		07/01/21	(b)		110,000		127,280
COP Series 2009A		5.00%		07/01/22	(b)		100,000		114,426
Midpeninsula Regional Open Space District
RB Series 2011		6.00%		09/01/41	(b)		3,000,000		3,513,870
Modesto Irrigation District
Electric System Refunding RB Series 2011A		5.00%		07/01/14			500,000		523,865
Electric System Refunding RB Series 2011A		5.00%		07/01/15			945,000		1,029,474
Electric System Refunding RB Series 2012A		5.00%		07/01/16			200,000		224,856
Electric System Refunding RB Series 2012A		5.00%		07/01/17			100,000		115,446
Electric System Refunding RB Series 2012A		5.00%		07/01/19			200,000		238,050
Mountain View Shoreline Regional Park Community
RB Series 2011A		5.00%		08/01/19			420,000		478,519
RB Series 2011A		5.00%		08/01/20			200,000		228,624
RB Series 2011A		5.00%		08/01/21			550,000		628,606
RB Series 2011A		5.75%		08/01/40	(b)		700,000		763,126
Mountain View Whisman SD
GO Bonds Series A		4.00%		09/01/30	(b)		840,000		896,734
Mt. Diablo Hospital District
Insured Hospital RB Series 1993A		5.00%		12/01/13	(g)		935,000		956,683
Newport-Mesa USD
GO Refunding Bonds Series 2012		5.00%		08/01/27	(b)		1,220,000		1,430,023
North City West School Facilities Financing Auth CFD No. 1
Sub Special Tax RB Series 2012A		4.00%		09/01/19			755,000		828,258
Novato Redevelopment Agency
Tax Allocation Bonds (Hamilton Field Redevelopment) Series 2011		6.75%		09/01/40	(b)		1,000,000		1,137,880

5

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Oakland
GO Refunding Bonds Series 2012		5.00%		01/15/24	(b)		710,000		820,597
Palmdale Water District Public Financing Auth
Water RB Series 2013A		5.00%		10/01/32	(b)		3,400,000		3,727,250
Palo Alto
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		5.00%		09/02/27	(b)		570,000		634,079
Limited Obligation Refunding Bonds (Univ Ave Area Off-St Parking Assessment District) Series 2012		5.00%		09/02/30	(b)		440,000		480,440
Pasadena Area CCD
GO Bonds Series 2009D		5.00%		08/01/21	(b)		130,000		152,233
Pasadena Public Financing Auth
Lease RB (Rose Bowl Renovation) Series 2010A		5.00%		03/01/25	(b)		200,000		228,770
Placentia-Yorba Linda USD
GO Refunding Bonds 2012		4.00%		08/01/16			950,000		1,047,042
Pomona
S/F Mortgage Refunding RB Series 1990B		7.50%		08/01/23	(g)		875,000		1,134,061
Puente Basin Water Agency
Water RB (Walnut Valley Water District) Series 2013A		5.00%		06/01/38	(b)		2,080,000		2,316,954
Riverside Cnty Palm Desert Financing Auth
Lease RB (Cnty Facilities) Series 2008A		5.50%		05/01/18			1,790,000		2,063,226
Roseville
Special Tax Refunding RB Series 2010		3.00%		09/01/14			2,200,000		2,241,426
Roseville City SD
GO Refunding Bonds Series 2011		4.00%		08/01/14			500,000		521,560
GO Refunding Bonds Series 2011		5.00%		08/01/25	(b)		780,000		907,405
GO Refunding Bonds Series 2011		5.00%		08/01/28	(b)		1,000,000		1,135,180
Ross Valley SD
GO Bonds Series A		5.00%		08/01/31	(b)		1,000,000		1,130,570
Sacramento Municipal Utility District
Electric Refunding RB Series 2013C		5.00%		08/15/16	(d)		2,000,000		2,246,740
San Bernardino CCD
GO Bonds Series A		6.25%		08/01/23	(b)		1,275,000		1,609,050
San Bernardino City USD
GO Refunding Bonds Series 2013A		2.00%		08/01/13	(d)		660,000		661,709
GO Refunding Bonds Series 2013A		5.00%		08/01/20	(d)		1,475,000		1,743,804
San Diego CCD
GO Bonds Series 2011		5.00%		08/01/36	(b)		2,000,000		2,253,480
San Diego Cnty Regional Airport Auth
Airport Sr RB Series 2013A		5.00%		07/01/23			200,000		242,290
Airport Sr RB Series 2013A		5.00%		07/01/24	(b)		350,000		419,206
Airport Sr RB Series 2013A		5.00%		07/01/25	(b)		505,000		599,470
Airport Sr RB Series 2013A		5.00%		07/01/26	(b)		490,000		573,241
Airport Sr RB Series 2013A		4.00%		07/01/30	(b)		925,000		957,588
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A		5.00%		09/01/19			1,010,000		1,163,177
Lease Refunding RB Series 2010A		4.25%		03/01/20			950,000		1,036,469
Lease Refunding RB Series 2010A		5.00%		09/01/20			795,000		911,094
San Diego Regional Building Auth
Lease RB Series 2009A		4.00%		02/01/16			415,000		444,714
Lease RB Series 2009A		4.00%		02/01/17			890,000		968,845
San Diego USD
GO Refunding Bonds Series 2005C2		5.50%		07/01/21			2,520,000		3,065,378
San Francisco
COP Series 2009A		5.00%		04/01/15			550,000		594,941
COP Series 2009A		5.00%		04/01/17			950,000		1,076,834
COP Series 2009A		5.00%		04/01/21	(b)		4,225,000		4,781,644
Refunding COP (Moscone Center South) Series 2011A		5.00%		09/01/24	(b)		2,340,000		2,677,428
San Francisco Airport Commission
Second Series RB Series 2009E		5.25%		05/01/24	(b)		300,000		353,316
Second Series Refunding RB Series 2009D		4.00%		05/01/24	(b)		1,525,000		1,679,543
Second Series Refunding RB Series 2011B		5.50%		05/01/21			750,000		926,835
Second Series Refunding RB Series 2012A		5.00%		05/01/26	(b)		450,000		517,968
San Francisco Bay Area Rapid Transit District
GO Bonds Series 2007B		5.00%		08/01/35	(b)		2,565,000		2,895,449

6 

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
San Francisco CCD
GO Bonds Series 2004B		4.38%		06/15/23	(b)		2,700,000		2,734,155
San Francisco Public Utilities Commission
Wastewater RB Series 2013B		4.00%		10/01/33	(b)		2,000,000		2,075,660
Water RB Series 2010F		4.00%		11/01/19			2,535,000		2,897,328
Water RB Series 2011A		5.00%		11/01/20			2,360,000		2,868,580
San Francisco Redevelopment Financing Auth
Tax Allocation RB Series 2011B		6.63%		08/01/41	(b)		1,060,000		1,270,474
Tax Allocation Refunding RB Series 2007B		5.00%		08/01/15			1,000,000		1,068,650
San Jose
Airport RB Series 2011A2		5.00%		03/01/19			360,000		418,482
Airport RB Series 2011A2		5.00%		03/01/21			810,000		948,542
San Jose Financing Auth
Lease Refunding RB (Civic Center) Series 2013A		5.00%		06/01/26	(b)		1,000,000		1,151,930
San Lorenzo Valley USD
GO Bonds Series 2008A		0.00%		08/01/28	(f)		500,000		261,225
GO Bonds Series 2008A		0.00%		08/01/30	(f)		250,000		117,103
San Mateo Cnty Jt Powers Financing Auth
Lease Refunding RB (Youth Services Campus) Series 2008A		4.00%		07/15/17			375,000		418,271
Lease Refunding RB (Youth Services Campus) Series 2008A		5.00%		07/15/20	(b)		350,000		406,679
San Mateo-Foster City SD
GO Refunding Bonds Series 2012		4.00%		09/01/17			1,840,000		2,076,698
GO Refunding Bonds Series 2012		4.00%		09/01/19			1,960,000		2,229,461
Santa Clara Cnty Financing Auth
Lease RB (VMC Refunding) Series 2008A		5.00%		11/15/22	(b)		1,450,000		1,639,732
RB (El Camino Hospital) Series 2007A		5.00%		02/01/17			230,000		256,006
RB (El Camino Hospital) Series 2007B		5.00%		02/01/17			115,000		128,003
RB (El Camino Hospital) Series 2007C		5.00%		02/01/17			300,000		333,921
Santa Cruz Cnty Redevelopment Agency
Tax Allocation Bonds Series 2009A		7.00%		09/01/36	(b)		900,000		1,062,945
Santa Cruz HSD
GO Refunding Bonds Series 2005		5.00%		08/01/29	(b)		5,680,000		5,836,598
Santa Maria-Bonita SD
COP Series 2013		2.00%		06/01/16			200,000		202,736
COP Series 2013		2.00%		06/01/17			200,000		201,226
COP Series 2013		2.00%		06/01/18			330,000		327,360
COP Series 2013		2.00%		06/01/19			290,000		278,908
Santa Monica Public Financing Auth
Lease RB Series 2011A		5.00%		06/01/28	(b)		1,195,000		1,350,063
Lease RB Series 2011A		5.00%		06/01/30	(b)		2,370,000		2,649,139
Santa Monica Redevelopment Agency
Tax Allocation Bonds (Earthquake Recovery) Series 2011		5.88%		07/01/36	(b)		1,125,000		1,322,685
Santa Monica-Malibu USD
GO Bonds Series B		5.00%		08/01/17			115,000		134,702
GO Bonds Series B		5.00%		08/01/18			100,000		119,994
GO Bonds Series B		5.00%		08/01/19			75,000		91,265
GO Bonds Series D		5.00%		07/01/27	(b)		1,000,000		1,184,190
GO Bonds Series D		0.00%		07/01/34	(b)(f)		3,430,000		1,252,533
Sonoma-Marina Area Rail Transit District
Sales Tax RB Series 2011A		5.00%		03/01/18			500,000		585,250
Sales Tax RB Series 2011A		5.00%		03/01/20			500,000		595,850
Sales Tax RB Series 2011A		5.00%		03/01/29	(b)		500,000		567,705
South Orange Cnty Public Financing Auth
Facility Lease Refunding RB Series 2012		2.00%		06/01/14			600,000		607,554
Facility Lease Refunding RB Series 2012		4.00%		06/01/16			1,500,000		1,636,830
Southern California Metropolitan Water District
Water Refunding RB Series 1993A		5.75%		07/01/21			5,195,000		6,287,612
Tamalpais UHSD
GO Refunding Bonds Series 2011		5.00%		08/01/27	(b)		1,000,000		1,185,000
Tuolumne Wind Project Auth
RB Series 2009A		5.00%		01/01/22	(b)		475,000		543,310
Tustin USD
GO Bonds 2008 Election Series B		6.00%		08/01/36	(b)		950,000		1,143,353
Univ of California
General RB Series 2009Q		5.25%		05/15/26	(b)		3,980,000		4,578,751
General RB Series 2011AB		3.00%		05/15/18			845,000		924,185

7

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
Upland
COP (San Antonio Community Hospital) Series 2011		5.50%		01/01/19			1,165,000		1,373,593
COP (San Antonio Community Hospital) Series 2011		5.75%		01/01/21			100,000		120,987
COP (San Antonio Community Hospital) Series 2011		6.50%		01/01/41	(b)		1,450,000		1,687,843
Ventura Cnty Public Financing Auth
Lease RB Series 2013A		5.00%		11/01/20			250,000		297,778
Lease RB Series 2013A		5.00%		11/01/21			425,000		505,091
Lease RB Series 2013A		5.00%		11/01/22			1,000,000		1,192,640
Lease RB Series 2013A		5.00%		11/01/32	(b)		1,000,000		1,117,600
Washington Township Health Care District
RB Series 2009A		4.50%		07/01/13			250,000		250,640
RB Series 2009A		5.00%		07/01/14			300,000		311,778
RB Series 2009A		5.00%		07/01/15			300,000		321,660
RB Series 2009A		5.00%		07/01/16	(e)		75,000		82,614
RB Series 2009A		5.13%		07/01/17			200,000		225,576
RB Series 2009A		5.25%		07/01/18			250,000		287,698
RB Series 2009A		5.50%		07/01/19			300,000		356,355
West Kern Water District
Revenue COP Series 2011		4.00%		06/01/18			70,000		75,888
Revenue COP Series 2011		4.00%		06/01/19			500,000		538,300
Revenue COP Series 2011		5.00%		06/01/20			500,000		567,005
Revenue COP Series 2011		5.00%		06/01/28	(b)		900,000		975,105
Westlands Water District
Refunding RB Series 2012A		2.00%		09/01/13			250,000		250,965
Refunding RB Series 2012A		3.00%		09/01/14			575,000		593,239
Refunding RB Series 2012A		4.00%		09/01/18			250,000		283,395
Refunding RB Series 2012A		4.00%		09/01/19			270,000		306,437
Whittier
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/15			700,000		754,999
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/16			2,100,000		2,328,354
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D		5.00%		06/01/17			2,050,000		2,316,602
Woodland Finance Auth
Water RB Series 2011		3.85%		03/01/18			145,000		155,843
Water RB Series 2011		4.15%		03/01/19			180,000		195,881
Water RB Series 2011		4.45%		03/01/20			100,000		110,518
Water RB Series 2011		4.65%		03/01/21			115,000		128,181
									425,093,216
PUERTO RICO 1.8%
Puerto Rico
Refunding Bonds Series 2002A		5.50%		07/01/14			1,435,000		1,484,105
Puerto Rico Electric Power Auth
Power RB Series NN		5.00%		07/01/32	(b)(g)		1,425,000		1,429,945
Power RB Series ZZ		5.25%		07/01/18			3,000,000		3,236,190
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		548,135
Higher Education & Refunding RB (Inter American Univ of Puerto Rico) Series 2012		5.00%		10/01/17			500,000		547,455
Puerto Rico Sales Tax Financing Corp
Sales Tax RB Sr Series 2011C		5.00%		08/01/22	(b)		1,000,000		1,175,320
									8,421,150
Total Fixed-Rate Obligations
(Cost $413,592,166)									433,514,366
Variable-Rate Obligations 4.9% of net assets
CALIFORNIA 4.9%
Bay Area Toll Auth
Toll Bridge RB Series 2007A1		0.82%		04/01/47	(b)		1,000,000		1,002,780
Toll Bridge RB Series 2008A1		1.02%		04/01/45	(b)		2,000,000		2,010,880

8 

 Schwab California Tax-Free Bond Fund

Portfolio Holdings (Unaudited) continued

Issuer						Face Amount		Value
Type of Security, Series	Rate		Maturity			($)		($)
California
GO Refunding Bonds 2012B		1.02%		05/01/18	(b)		1,000,000		1,005,940
GO Refunding Bonds 2012B		1.27%		05/01/20	(b)		1,000,000		1,009,520
California Educational Facilities Auth
Refunding RB (Loyola Marymount Univ) Series 2010B		0.92%		10/01/15	(b)(e)		4,190,000		4,210,363
California Statewide Communities Development Auth
RB (Kaiser Permanente) Series 2012B		1.07%		04/01/52	(b)		2,000,000		2,012,020
East Bay Municipal Utility District
Wastewater System Refunding RB Series 2011A		0.44%		06/01/38	(b)		2,015,000		2,015,081
Los Angeles Dept of Water & Power
Power System RB Series 2001B6		0.04%		07/01/34	(a)(b)		500,000		500,000
Southern California Metropolitan Water District
Water Refunding RB Series 2011A4		0.27%		07/01/36	(b)		2,000,000		2,000,000
Water Refunding RB Series 2012B1		0.47%		07/01/27	(b)		2,000,000		2,003,660
Univ of California
General RB Series 2007J		0.07%		05/15/15	(a)(b)(c)		2,000,000		2,000,000
Medical Center Pooled RB Series 2007B1		0.06%		05/15/32	(a)(b)		2,380,000		2,380,000
Total Variable-Rate Obligations
(Cost $22,085,000)									22,150,244
End of Investments.

At 05/31/13, the tax basis cost of the fund’s investments was $435,660,778 and the unrealized appreciation and depreciation were $21,192,010 and ($1,188,178), respectively, with a net unrealized appreciation of $20,003,832.

(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 $2,000,000 or 0.4% 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
IDRB —	Industrial development revenue bond
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

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.

9

 Schwab California 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: Bonds and notes are 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 independent bond-pricing services.

•  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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

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

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

•  Underlying funds: Mutual funds are 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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 fund in estimating the value

10 

 Schwab California 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.

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 May 31, 2013:

	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		$—		$433,514,366		$—		$433,514,366
Variable-Rate Obligations1		—		22,150,244		—		22,150,244
Total		$—		$455,664,610		$—		$455,664,610

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

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 May 31, 2013.

REG406024MAY13

11

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:	July 25, 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:	July 25, 2013
By:	/s/ George Pereira
	George Pereira
	Principal Financial Officer
Date:	July 25, 2013