N-Q 1 f30305nvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6200
Schwab Investments
(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: November 30, 2014
 
 
Item 1. Schedule of Investments.

 

 

Schwab Investments
Schwab Short-Term Bond Market Fund™
 
Portfolio Holdings as of November 30, 2014 (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   ($)   ($)
 
  66 .7%   U.S. Government and Government Agencies     276,393,001       277,502,299  
  7 .9%   Foreign Securities     32,325,468       32,626,398  
  24 .5%   Corporate Bonds     101,306,157       102,106,278  
  0 .2%   Municipal Bonds     893,657       901,926  
  0 .7%   Other Investment Companies     3,052,618       3,052,618  
 
 
  100 .0%   Total Investments     413,970,901       416,189,519  
  0 .0%   Other Assets and Liabilities, Net             18,342  
 
 
  100 .0%   Net Assets             416,207,861  
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 U.S. Government and Government Agencies 66.7% of net assets
 
U.S. Government Agency Securities 7.4%
Fannie Mae
2.38%, 04/11/16
    1,750,000       1,799,987  
0.63%, 08/26/16
    2,850,000       2,856,370  
1.20%, 07/17/17 (b)
    1,500,000       1,501,741  
0.88%, 08/28/17
    1,000,000       1,000,634  
0.88%, 10/26/17
    1,500,000       1,496,258  
1.13%, 03/28/18 (b)
    575,000       572,455  
1.13%, 05/25/18 (b)
    1,000,000       991,911  
1.75%, 06/20/19
    1,000,000       1,010,486  
1.75%, 09/12/19
    1,250,000       1,256,013  
Federal Farm Credit Bank
4.88%, 12/16/15
    150,000       157,260  
Federal Home Loan Bank
0.38%, 06/24/16
    1,150,000       1,150,243  
0.50%, 09/28/16
    2,000,000       2,000,478  
4.88%, 05/17/17
    1,500,000       1,648,836  
1.00%, 06/21/17
    1,000,000       1,003,604  
1.63%, 06/14/19
    400,000       399,893  
Freddie Mac
2.50%, 05/27/16
    2,000,000       2,064,970  
2.00%, 08/25/16
    2,000,000       2,054,068  
0.75%, 10/05/16 (b)
    2,000,000       2,001,028  
1.00%, 06/29/17
    1,250,000       1,256,750  
1.03%, 11/28/17 (b)
    975,000       971,496  
0.88%, 03/07/18
    2,100,000       2,084,699  
1.75%, 05/30/19
    1,500,000       1,509,415  
                 
              30,788,595  
 
U.S. Treasury Obligations 59.3%
U.S. Treasury Notes
0.25%, 12/31/15
    2,000,000       2,002,032  
2.13%, 12/31/15
    1,750,000       1,786,503  
0.38%, 01/15/16
    2,750,000       2,756,232  
2.00%, 01/31/16
    335,000       342,014  
0.38%, 02/15/16
    3,000,000       3,006,327  
0.25%, 02/29/16
    2,250,000       2,251,231  
2.13%, 02/29/16
    1,000,000       1,023,828  
2.63%, 02/29/16
    750,000       772,500  
0.38%, 03/15/16
    4,000,000       4,009,064  
2.25%, 03/31/16
    1,000,000       1,026,797  
2.38%, 03/31/16
    1,500,000       1,543,125  
0.25%, 04/15/16
    1,200,000       1,200,844  
0.38%, 04/30/16
    2,500,000       2,505,273  
2.00%, 04/30/16
    2,000,000       2,049,844  
0.25%, 05/15/16
    1,000,000       1,000,156  
0.38%, 05/31/16
    3,850,000       3,856,618  
1.75%, 05/31/16
    4,000,000       4,089,064  
3.25%, 05/31/16
    1,000,000       1,044,688  
0.50%, 06/15/16
    6,000,000       6,021,096  
0.50%, 06/30/16
    3,500,000       3,510,937  
1.50%, 06/30/16
    5,000,000       5,094,530  
3.25%, 06/30/16
    1,450,000       1,517,176  
0.63%, 07/15/16
    2,500,000       2,512,305  
1.50%, 07/31/16
    1,100,000       1,121,141  
0.63%, 08/15/16
    6,000,000       6,026,718  
4.88%, 08/15/16
    1,750,000       1,883,574  
3.00%, 08/31/16
    1,000,000       1,045,547  
0.88%, 09/15/16
    500,000       504,219  
0.50%, 09/30/16
    3,000,000       3,005,157  
1.00%, 09/30/16
    3,000,000       3,031,875  
0.63%, 10/15/16
    3,000,000       3,010,782  
0.38%, 10/31/16
    4,250,000       4,244,024  
3.13%, 10/31/16
    3,000,000       3,152,343  
4.63%, 11/15/16
    3,500,000       3,783,006  
0.50%, 11/30/16
    2,000,000       2,000,390  
0.88%, 11/30/16
    1,250,000       1,259,864  
2.75%, 11/30/16
    2,500,000       2,612,695  
0.88%, 12/31/16
    4,000,000       4,028,436  
3.25%, 12/31/16
    6,000,000       6,337,032  
0.88%, 02/28/17
    2,100,000       2,113,289  
0.75%, 03/15/17
    3,000,000       3,009,609  
1.00%, 03/31/17
    2,000,000       2,016,094  
0.88%, 04/30/17
    4,500,000       4,522,149  
3.13%, 04/30/17
    600,000       635,390  
0.88%, 05/15/17
    2,000,000       2,008,906  
0.63%, 05/31/17
    9,000,000       8,976,798  
2.75%, 05/31/17
    1,500,000       1,576,524  
0.88%, 06/15/17
    1,000,000       1,003,750  
0.75%, 06/30/17
    2,250,000       2,249,298  
2.50%, 06/30/17
    800,000       836,125  
0.88%, 07/15/17
    3,700,000       3,710,985  
0.50%, 07/31/17
    5,000,000       4,962,110  
2.38%, 07/31/17
    1,000,000       1,042,031  
0.63%, 08/31/17
    2,500,000       2,486,523  
1.00%, 09/15/17
    3,000,000       3,015,234  
 
 
 
 1

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
0.75%, 10/31/17
    3,500,000       3,487,148  
1.88%, 10/31/17
    1,000,000       1,028,672  
0.63%, 11/30/17
    6,500,000       6,443,125  
2.25%, 11/30/17
    1,500,000       1,558,946  
0.75%, 12/31/17
    6,500,000       6,459,375  
0.88%, 01/31/18
    4,750,000       4,733,299  
0.75%, 02/28/18
    1,250,000       1,239,355  
0.75%, 03/31/18
    1,000,000       990,469  
0.63%, 04/30/18
    3,000,000       2,955,702  
1.00%, 05/31/18
    5,000,000       4,982,810  
1.38%, 06/30/18
    2,500,000       2,521,680  
1.38%, 07/31/18
    1,000,000       1,007,812  
1.50%, 08/31/18
    5,250,000       5,311,115  
1.38%, 09/30/18
    3,500,000       3,521,602  
1.25%, 10/31/18
    3,000,000       3,001,173  
1.25%, 11/30/18
    3,000,000       2,997,657  
1.38%, 12/31/18
    4,000,000       4,012,188  
1.50%, 01/31/19
    4,500,000       4,532,346  
1.50%, 02/28/19
    5,500,000       5,536,525  
1.63%, 03/31/19
    4,000,000       4,043,436  
1.63%, 04/30/19
    3,500,000       3,536,368  
1.50%, 05/31/19
    6,750,000       6,776,892  
1.63%, 06/30/19
    2,250,000       2,270,039  
1.63%, 08/31/19
    3,000,000       3,022,266  
1.75%, 09/30/19
    6,000,000       6,073,596  
1.25%, 10/31/19
    1,000,000       988,750  
1.50%, 10/31/19
    1,300,000       1,300,000  
1.50%, 11/30/19
    6,250,000       6,247,556  
                 
              246,713,704  
                 
Total U.S. Government and Government Agencies
(Cost $276,393,001)     277,502,299  
         
                 
                 
 
 Foreign Securities 7.9% of net assets
 
Foreign Agencies 2.7%
                 
 
Austria 0.1%
Oesterreichische Kontrollbank AG
0.75%, 12/15/16
    500,000       501,520  
                 
 
Brazil 0.2%
Petrobras Global Finance BV
3.00%, 01/15/19
    500,000       476,395  
Petrobras International Finance Co., S.A.
3.88%, 01/27/16
    500,000       503,275  
                 
              979,670  
                 
 
Germany 1.4%
Kreditanstalt Fuer Wiederaufbau
2.63%, 02/16/16 (d)
    500,000       514,289  
2.00%, 06/01/16 (d)
    750,000       768,100  
4.88%, 01/17/17 (d)
    1,300,000       1,415,719  
0.88%, 12/15/17 (d)
    500,000       498,142  
4.50%, 07/16/18 (d)
    800,000       891,443  
1.88%, 04/01/19 (d)
    800,000       814,211  
Landwirtschaftliche Rentenbank
2.50%, 02/15/16 (d)
    750,000       770,217  
1.38%, 10/23/19 (d)
    250,000       247,254  
                 
              5,919,375  
                 
 
Japan 0.3%
Japan Finance Corp.
2.25%, 07/13/16
    250,000       257,200  
1.75%, 11/13/18
    100,000       101,101  
2.13%, 02/07/19
    750,000       768,311  
Japan Finance Organization for Municipalities
5.00%, 05/16/17
    200,000       219,747  
                 
              1,346,359  
                 
 
Mexico 0.1%
Pemex Project Funding Master Trust
5.75%, 03/01/18
    250,000       275,625  
Petroleos Mexicanos
3.50%, 07/18/18
    250,000       259,938  
                 
              535,563  
                 
 
Norway 0.1%
Statoil A.S.A.
1.15%, 05/15/18
    200,000       197,137  
                 
 
Republic of Korea 0.3%
Export-Import Bank of Korea
4.00%, 01/11/17
    600,000       633,579  
The Korea Development Bank
3.50%, 08/22/17
    600,000       630,520  
                 
              1,264,099  
                 
 
Sweden 0.2%
Svensk Exportkredit AB
1.75%, 05/30/17
    150,000       153,294  
1.13%, 04/05/18
    450,000       448,394  
                 
              601,688  
                 
              11,345,411  
 
Foreign Local Government 0.6%
                 
 
Canada 0.6%
Hydro Quebec
2.00%, 06/30/16
    300,000       306,932  
Province of Manitoba
1.13%, 06/01/18
    150,000       149,268  
Province of Nova Scotia
5.13%, 01/26/17
    250,000       273,431  
Province of Ontario
2.30%, 05/10/16
    600,000       615,392  
3.15%, 12/15/17
    250,000       264,510  
1.20%, 02/14/18
    500,000       498,371  
2.00%, 01/30/19
    250,000       254,245  
                 
              2,362,149  
 
Sovereign 1.0%
                 
 
Brazil 0.1%
Federative Republic of Brazil
6.00%, 01/17/17
    400,000       437,600  
                 
 
Canada 0.1%
Canada Government International Bond
0.88%, 02/14/17
    150,000       150,749  
                 
 
Colombia 0.1%
Republic of Colombia
7.38%, 01/27/17
    300,000       339,000  
                 
 
Italy 0.2%
Republic of Italy
4.75%, 01/25/16
    500,000       521,741  
5.38%, 06/12/17
    300,000       328,582  
                 
              850,323  
 
 
 
2 

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
                 
 
Mexico 0.1%
United Mexican States
5.63%, 01/15/17
    500,000       546,750  
                 
 
Philippines 0.0%
Republic of the Philippines
8.38%, 06/17/19
    100,000       127,250  
                 
 
Republic of Korea 0.1%
Republic of Korea
5.13%, 12/07/16
    250,000       271,903  
                 
 
South Africa 0.1%
Republic of South Africa
6.88%, 05/27/19
    200,000       231,390  
                 
 
Turkey 0.2%
Turkey Government International Bond
7.00%, 09/26/16
    150,000       164,250  
7.00%, 03/11/19
    650,000       753,513  
                 
              917,763  
                 
              3,872,728  
 
Supranational* 3.6%
African Development Bank
0.88%, 05/15/17
    300,000       300,510  
1.63%, 10/02/18
    350,000       352,993  
Asian Development Bank
2.50%, 03/15/16
    650,000       668,256  
1.75%, 09/11/18
    450,000       457,117  
1.88%, 04/12/19
    250,000       254,104  
Corp. Andina de Fomento S.A.
5.75%, 01/12/17
    100,000       109,943  
Council of Europe Development Bank
1.50%, 02/22/17
    400,000       406,848  
European Bank for Reconstruction & Development
1.38%, 10/20/16
    500,000       508,116  
1.00%, 02/16/17
    250,000       252,056  
European Investment Bank
4.88%, 02/16/16
    600,000       632,975  
2.25%, 03/15/16
    500,000       512,318  
2.50%, 05/16/16
    800,000       824,248  
5.13%, 09/13/16
    500,000       540,782  
4.88%, 01/17/17
    650,000       707,860  
1.75%, 03/15/17
    450,000       460,940  
1.00%, 06/15/18
    200,000       198,478  
1.63%, 12/18/18
    400,000       403,688  
1.88%, 03/15/19
    1,000,000       1,017,558  
Inter-American Development Bank
1.13%, 03/15/17
    500,000       504,402  
0.88%, 03/15/18
    700,000       694,076  
1.75%, 08/24/18
    250,000       254,096  
1.75%, 10/15/19
    300,000       302,688  
International Bank for Reconstruction & Development
2.13%, 03/15/16
    900,000       920,613  
1.00%, 09/15/16
    500,000       504,258  
0.88%, 04/17/17
    400,000       401,970  
1.88%, 03/15/19
    1,000,000       1,021,794  
International Finance Corp.
2.25%, 04/11/16
    200,000       205,003  
2.13%, 11/17/17
    650,000       670,025  
1.75%, 09/04/18
    200,000       203,273  
1.75%, 09/16/19
    250,000       251,706  
Nordic Investment Bank
1.00%, 03/07/17
    500,000       503,416  
                 
              15,046,110  
                 
Total Foreign Securities
(Cost $32,325,468)     32,626,398  
         
                 
                 
 
 Corporate Bonds 24.5% of net assets
 
Finance 10.6%
                 
 
Banking 8.2%
Abbey National Treasury Services PLC
4.00%, 04/27/16
    250,000       260,478  
3.05%, 08/23/18
    150,000       156,462  
2.35%, 09/10/19
    250,000       250,831  
American Express Centurion Bank
6.00%, 09/13/17
    250,000       280,800  
American Express Co.
6.80%, 09/01/66 (a)(b)
    200,000       212,000  
American Express Credit Corp.
2.80%, 09/19/16
    250,000       258,853  
2.13%, 07/27/18
    500,000       506,746  
Bank of America Corp.
6.50%, 08/01/16
    125,000       135,790  
5.30%, 03/15/17
    700,000       758,199  
6.00%, 09/01/17
    600,000       668,751  
5.75%, 12/01/17
    500,000       556,900  
2.00%, 01/11/18
    350,000       352,667  
6.88%, 04/25/18
    400,000       464,297  
2.65%, 04/01/19
    500,000       507,645  
Bank of Montreal
2.38%, 01/25/19 (b)
    500,000       506,587  
Barclays Bank PLC
2.50%, 02/20/19
    500,000       507,884  
BB&T Corp.
4.90%, 06/30/17
    250,000       272,202  
6.85%, 04/30/19
    300,000       359,180  
BNP Paribas S.A.
3.60%, 02/23/16
    500,000       516,839  
2.45%, 03/17/19
    250,000       253,808  
Capital One Bank USA NA
2.25%, 02/13/19 (b)
    500,000       500,559  
2.40%, 09/05/19 (b)
    250,000       250,258  
Capital One Financial Corp.
6.75%, 09/15/17
    200,000       227,763  
Citigroup, Inc.
1.70%, 07/25/16
    750,000       757,703  
4.45%, 01/10/17
    500,000       531,944  
6.00%, 08/15/17
    500,000       558,003  
2.50%, 07/29/19
    500,000       504,239  
Credit Suisse USA, Inc.
1.38%, 05/26/17
    350,000       350,664  
2.30%, 05/28/19
    400,000       402,096  
Deutsche Bank AG
3.25%, 01/11/16
    300,000       308,214  
1.35%, 05/30/17
    250,000       249,775  
Fifth Third Bancorp
3.63%, 01/25/16
    600,000       618,862  
First Tennessee Bank NA
2.95%, 12/01/19 (b)
    250,000       251,292  
HSBC USA, Inc.
1.63%, 01/16/18
    200,000       200,657  
 
 
 
 3

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
JPMorgan Chase & Co.
3.45%, 03/01/16
    600,000       619,584  
6.00%, 01/15/18
    400,000       451,772  
2.35%, 01/28/19
    400,000       405,442  
KeyBank NA
1.10%, 11/25/16 (b)
    250,000       250,291  
Lloyds Bank PLC
4.88%, 01/21/16
    200,000       209,226  
4.20%, 03/28/17
    300,000       320,043  
2.30%, 11/27/18
    200,000       202,427  
Manufacturers & Traders Trust Co.
2.30%, 01/30/19 (b)
    250,000       252,996  
Merrill Lynch & Co., Inc.
6.05%, 05/16/16
    1,200,000       1,281,436  
Morgan Stanley
5.75%, 10/18/16
    1,000,000       1,083,063  
6.25%, 08/28/17
    1,000,000       1,122,444  
2.38%, 07/23/19
    550,000       549,474  
MUFG Union Bank NA
3.00%, 06/06/16
    250,000       257,469  
PNC Bank NA
2.20%, 01/28/19 (b)
    250,000       252,466  
PNC Funding Corp.
2.70%, 09/19/16 (b)
    750,000       773,026  
Rabobank Nederland
3.38%, 01/19/17
    150,000       157,489  
Regions Financial Corp.
2.00%, 05/15/18 (b)
    600,000       597,192  
Royal Bank of Canada
2.88%, 04/19/16
    350,000       360,869  
2.15%, 03/15/19
    500,000       505,240  
State Street Corp.
2.88%, 03/07/16
    200,000       205,789  
Sumitomo Mitsui Banking Corp.
1.80%, 07/18/17
    250,000       252,133  
2.45%, 01/10/19
    250,000       253,158  
Svenska Handelsbanken AB
2.88%, 04/04/17
    300,000       312,346  
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)
    500,000       509,903  
The Bank of Nova Scotia
1.38%, 07/15/16
    500,000       504,866  
1.45%, 04/25/18
    250,000       247,892  
The Bear Stearns Cos. LLC
5.55%, 01/22/17
    500,000       544,177  
6.40%, 10/02/17
    750,000       848,386  
The Goldman Sachs Group, Inc.
6.25%, 09/01/17
    250,000       280,100  
5.95%, 01/18/18
    1,000,000       1,122,724  
6.15%, 04/01/18
    1,400,000       1,586,269  
2.63%, 01/31/19
    500,000       506,690  
The Toronto-Dominion Bank
2.50%, 07/14/16
    250,000       257,339  
2.63%, 09/10/18
    500,000       514,209  
2.13%, 07/02/19
    250,000       250,906  
UBS AG
5.88%, 12/20/17
    175,000       197,010  
5.75%, 04/25/18
    100,000       113,101  
2.38%, 08/14/19
    300,000       302,506  
Wells Fargo & Co.
1.40%, 09/08/17
    500,000       501,794  
5.63%, 12/11/17
    1,000,000       1,120,401  
Westpac Banking Corp.
2.25%, 01/17/19
    600,000       608,842  
                 
              34,191,438  
                 
 
Brokerage 0.2%
Jefferies Group LLC
5.50%, 03/15/16
    250,000       264,720  
5.13%, 04/13/18
    150,000       163,263  
Nomura Holdings, Inc.
4.13%, 01/19/16
    300,000       310,216  
2.75%, 03/19/19
    150,000       152,758  
                 
              890,957  
                 
 
Finance Company 0.7%
Air Lease Corp.
3.38%, 01/15/19 (b)(f)
    150,000       153,187  
GATX Corp.
1.25%, 03/04/17
    100,000       99,624  
2.50%, 07/30/19
    150,000       150,118  
General Electric Capital Corp.
1.50%, 07/12/16
    900,000       912,538  
2.30%, 04/27/17
    600,000       618,055  
5.63%, 05/01/18
    300,000       340,069  
HSBC Finance Corp.
5.50%, 01/19/16
    150,000       157,989  
Synchrony Financial
3.00%, 08/15/19 (b)
    500,000       507,952  
                 
              2,939,532  
                 
 
Insurance 1.0%
ACE INA Holdings, Inc.
5.70%, 02/15/17
    350,000       384,996  
American International Group, Inc.
5.85%, 01/16/18
    300,000       338,380  
2.30%, 07/16/19 (b)
    400,000       404,089  
Assurant, Inc.
2.50%, 03/15/18
    150,000       151,908  
Berkshire Hathaway Finance Corp.
2.00%, 08/15/18
    500,000       509,295  
Cigna Corp.
2.75%, 11/15/16
    250,000       258,216  
5.38%, 03/15/17
    100,000       108,859  
CNA Financial Corp.
6.50%, 08/15/16
    150,000       163,420  
Hartford Financial Services Group, Inc.
5.38%, 03/15/17
    300,000       326,541  
Lincoln National Corp.
7.00%, 05/17/66 (a)(b)
    100,000       102,500  
MetLife, Inc.
6.82%, 08/15/18
    200,000       234,917  
Prudential Financial, Inc.
6.00%, 12/01/17
    150,000       168,977  
The Chubb Corp.
6.38%, 03/29/67 (a)(b)
    100,000       109,000  
UnitedHealth Group, Inc.
1.40%, 10/15/17
    200,000       201,138  
Voya Financial, Inc.
2.90%, 02/15/18
    200,000       205,885  
WellPoint, Inc.
2.25%, 08/15/19
    300,000       298,845  
XL Group PLC
6.50%, 12/31/49 (a)(b)
    100,000       96,750  
                 
              4,063,716  
 
 
 
4 

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
                 
 
Real Estate Investment Trust 0.5%
Health Care REIT, Inc.
3.63%, 03/15/16
    200,000       206,946  
4.13%, 04/01/19 (b)
    350,000       375,351  
ProLogis LP
2.75%, 02/15/19 (b)
    450,000       459,391  
Simon Property Group LP
2.80%, 01/30/17 (b)
    250,000       258,739  
Ventas Realty LP
2.00%, 02/15/18 (b)
    250,000       251,394  
4.00%, 04/30/19 (b)
    500,000       534,419  
                 
              2,086,240  
                 
              44,171,883  
 
Industrial 12.6%
                 
 
Basic Industry 1.0%
Agrium, Inc.
6.75%, 01/15/19
    250,000       291,027  
Airgas, Inc.
1.65%, 02/15/18 (b)
    500,000       497,033  
Barrick Gold Corp.
2.50%, 05/01/18
    200,000       201,489  
CF Industries Holdings, Inc.
6.88%, 05/01/18
    100,000       115,250  
Domtar Corp.
10.75%, 06/01/17
    75,000       89,395  
Eastman Chemical Co.
2.70%, 01/15/20 (b)
    300,000       303,572  
Freeport-McMoRan, Inc.
2.38%, 03/15/18
    700,000       704,589  
LyondellBasell Industries N.V.
5.00%, 04/15/19 (b)
    300,000       330,585  
Monsanto Co.
2.75%, 04/15/16
    200,000       205,433  
Rio Tinto Finance (USA) PLC
2.25%, 12/14/18 (b)
    600,000       604,233  
Rock-Tenn Co.
4.45%, 03/01/19
    200,000       214,134  
The Dow Chemical Co.
5.70%, 05/15/18
    101,000       113,589  
Vale Overseas Ltd.
6.25%, 01/23/17
    300,000       326,045  
                 
              3,996,374  
                 
 
Capital Goods 1.1%
Boeing Capital Corp.
2.13%, 08/15/16 (b)
    100,000       102,420  
Caterpillar Financial Services Corp.
1.25%, 11/06/17
    350,000       351,282  
2.10%, 06/09/19
    500,000       503,625  
CRH America, Inc.
6.00%, 09/30/16
    75,000       81,367  
Eaton Corp.
5.60%, 05/15/18
    300,000       336,931  
General Dynamics Corp.
2.25%, 07/15/16
    100,000       102,727  
General Electric Co.
5.25%, 12/06/17
    750,000       832,691  
Ingersoll-Rand Luxembourg Finance S.A.
2.63%, 05/01/20 (b)
    300,000       301,090  
John Deere Capital Corp.
5.50%, 04/13/17
    150,000       165,534  
1.55%, 12/15/17
    300,000       301,170  
1.95%, 12/13/18
    250,000       251,719  
L-3 Communications Corp.
3.95%, 11/15/16
    200,000       210,160  
Lockheed Martin Corp.
2.13%, 09/15/16
    100,000       102,337  
Northrop Grumman Corp.
1.75%, 06/01/18
    200,000       199,282  
Owens Corning, Inc.
6.50%, 12/01/16
    6,000       6,582  
United Technologies Corp.
1.80%, 06/01/17
    500,000       509,367  
Waste Management, Inc.
2.60%, 09/01/16
    200,000       205,659  
6.10%, 03/15/18
    150,000       171,054  
                 
              4,734,997  
                 
 
Communications 1.9%
America Movil, S.A.B. de CV
2.38%, 09/08/16
    250,000       255,627  
American Tower Corp.
3.40%, 02/15/19
    350,000       358,864  
AT&T, Inc.
0.90%, 02/12/16
    150,000       149,915  
2.40%, 08/15/16
    200,000       204,880  
1.40%, 12/01/17
    200,000       199,171  
5.50%, 02/01/18
    250,000       278,444  
2.38%, 11/27/18
    300,000       304,499  
British Telecommunications PLC
1.63%, 06/28/16
    250,000       252,552  
2.35%, 02/14/19
    200,000       201,141  
Comcast Corp.
4.95%, 06/15/16
    300,000       319,040  
6.30%, 11/15/17
    100,000       114,073  
DIRECTV Holdings LLC
3.13%, 02/15/16
    500,000       513,560  
2.40%, 03/15/17
    100,000       102,336  
Grupo Televisa S.A.B.
6.00%, 05/15/18
    200,000       225,636  
Omnicom Group, Inc.
5.90%, 04/15/16
    300,000       319,526  
Orange S.A.
2.75%, 02/06/19
    200,000       205,033  
Qwest Corp.
6.50%, 06/01/17
    200,000       220,905  
Telefonica Emisiones S.A.U.
3.99%, 02/16/16
    275,000       284,884  
Time Warner Cable, Inc.
5.85%, 05/01/17
    500,000       550,340  
Time Warner, Inc.
5.88%, 11/15/16
    300,000       327,236  
2.10%, 06/01/19
    300,000       297,368  
Verizon Communications, Inc.
2.50%, 09/15/16
    309,000       317,808  
2.00%, 11/01/16
    200,000       203,860  
2.55%, 06/19/19
    700,000       712,757  
Viacom, Inc.
2.50%, 12/15/16
    150,000       153,682  
2.20%, 04/01/19
    300,000       296,367  
Vodafone Group PLC
5.63%, 02/27/17
    150,000       163,896  
1.25%, 09/26/17
    200,000       197,850  
                 
              7,731,250  
                 
 
Consumer Cyclical 1.5%
Alibaba Group Holding Ltd.
2.50%, 11/28/19 (b)(c)
    250,000       249,923  
 
 
 
 5

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Amazon.com, Inc.
1.20%, 11/29/17
    100,000       99,454  
American Honda Finance Corp.
1.13%, 10/07/16
    350,000       353,056  
CVS Health Corp.
2.25%, 08/12/19 (b)
    500,000       500,068  
eBay, Inc.
1.35%, 07/15/17
    150,000       149,454  
Ford Motor Credit Co. LLC
2.50%, 01/15/16
    250,000       254,397  
6.63%, 08/15/17
    500,000       562,617  
5.00%, 05/15/18
    750,000       821,052  
Kohl’s Corp.
6.25%, 12/15/17
    100,000       112,299  
Lowe’s Cos., Inc.
1.63%, 04/15/17 (b)
    200,000       202,091  
Macy’s Retail Holdings, Inc.
7.45%, 07/15/17
    250,000       286,772  
Marriott International, Inc.
6.20%, 06/15/16
    150,000       161,652  
McDonald’s Corp.
5.30%, 03/15/17
    250,000       274,749  
Nordstrom, Inc.
6.25%, 01/15/18
    200,000       227,201  
Starbucks Corp.
2.00%, 12/05/18 (b)
    250,000       252,339  
Starwood Hotels & Resorts Worldwide, Inc.
6.75%, 05/15/18
    150,000       173,369  
The Home Depot, Inc.
5.40%, 03/01/16
    300,000       318,006  
Toyota Motor Credit Corp.
2.80%, 01/11/16
    200,000       205,177  
2.05%, 01/12/17
    250,000       256,163  
1.38%, 01/10/18
    200,000       200,111  
Wal-Mart Stores, Inc.
2.80%, 04/15/16
    400,000       412,469  
5.38%, 04/05/17
    200,000       220,556  
1.13%, 04/11/18
    150,000       149,231  
                 
              6,442,206  
                 
 
Consumer Non-Cyclical 3.1%
AbbVie, Inc.
1.75%, 11/06/17
    500,000       503,028  
Actavis Funding SCS
2.45%, 06/15/19
    200,000       197,235  
Altria Group, Inc.
2.63%, 01/14/20 (b)
    500,000       503,473  
Amgen, Inc.
2.13%, 05/15/17
    300,000       305,057  
Anheuser-Busch InBev Finance, Inc.
1.13%, 01/27/17
    250,000       251,511  
2.15%, 02/01/19
    200,000       201,058  
Bottling Group LLC
5.50%, 04/01/16
    150,000       159,802  
Bunge Ltd Finance Corp.
3.20%, 06/15/17
    250,000       259,528  
Cardinal Health, Inc.
1.90%, 06/15/17
    350,000       354,364  
Celgene Corp.
2.30%, 08/15/18
    500,000       506,451  
Colgate-Palmolive Co.
2.63%, 05/01/17
    150,000       156,192  
ConAgra Foods, Inc.
1.30%, 01/25/16
    250,000       251,042  
1.90%, 01/25/18
    200,000       199,352  
Diageo Capital PLC
1.13%, 04/29/18
    150,000       148,056  
Dr. Pepper Snapple Group, Inc.
2.60%, 01/15/19
    300,000       306,818  
Express Scripts Holding Co.
2.65%, 02/15/17
    700,000       720,850  
General Mills, Inc.
5.70%, 02/15/17
    100,000       109,999  
5.65%, 02/15/19
    100,000       114,385  
Gilead Sciences, Inc.
3.05%, 12/01/16
    250,000       260,105  
2.05%, 04/01/19
    300,000       301,838  
Kellogg Co.
4.45%, 05/30/16
    100,000       105,251  
Kimberly-Clark Corp.
1.90%, 05/22/19
    300,000       301,380  
Kraft Foods Group, Inc.
2.25%, 06/05/17
    400,000       408,170  
Lorillard Tobacco Co.
2.30%, 08/21/17
    100,000       101,219  
Mattel, Inc.
2.50%, 11/01/16
    100,000       102,481  
McKesson Corp.
3.25%, 03/01/16
    100,000       102,853  
5.70%, 03/01/17
    150,000       164,208  
2.28%, 03/15/19
    200,000       200,464  
Merck & Co, Inc.
1.30%, 05/18/18
    350,000       347,817  
Mondelez International, Inc.
4.13%, 02/09/16
    300,000       311,476  
2.25%, 02/01/19 (b)
    200,000       201,427  
Mylan, Inc.
1.80%, 06/24/16
    200,000       201,992  
2.60%, 06/24/18
    150,000       152,886  
2.55%, 03/28/19
    450,000       450,971  
Newell Rubbermaid, Inc.
2.05%, 12/01/17
    300,000       300,892  
PepsiCo, Inc.
2.50%, 05/10/16
    100,000       102,614  
1.25%, 08/13/17
    100,000       100,205  
Pfizer, Inc.
2.10%, 05/15/19
    400,000       404,976  
Philip Morris International, Inc.
1.13%, 08/21/17
    150,000       149,312  
5.65%, 05/16/18
    250,000       283,547  
1.88%, 01/15/19
    150,000       150,286  
Quest Diagnostics, Inc.
2.70%, 04/01/19
    300,000       304,086  
Sanofi
2.63%, 03/29/16
    250,000       257,234  
1.25%, 04/10/18
    100,000       99,570  
The Coca-Cola Co.
1.15%, 04/01/18
    250,000       248,002  
4.88%, 03/15/19
    250,000       282,136  
The Kroger Co.
2.30%, 01/15/19 (b)
    300,000       301,653  
Thermo Fisher Scientific, Inc.
2.40%, 02/01/19
    200,000       201,263  
Tyson Foods, Inc.
2.65%, 08/15/19 (b)
    300,000       304,089  
Unilever Capital Corp.
0.85%, 08/02/17
    100,000       99,326  
Whirlpool Corp.
6.50%, 06/15/16
    250,000       271,139  
 
 
 
6 

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Zoetis, Inc.
1.15%, 02/01/16
    250,000       250,351  
                 
              13,073,420  
                 
 
Energy 2.2%
Anadarko Petroleum Corp.
5.95%, 09/15/16
    500,000       540,306  
Apache Corp.
1.75%, 04/15/17
    100,000       100,725  
BP Capital Markets PLC
3.20%, 03/11/16
    150,000       154,570  
1.85%, 05/05/17
    150,000       152,280  
1.38%, 05/10/18
    100,000       98,750  
Canadian Natural Resources Ltd.
1.75%, 01/15/18
    150,000       150,302  
Chevron Corp.
1.72%, 06/24/18 (b)
    100,000       100,764  
ConocoPhillips
5.20%, 05/15/18
    400,000       447,191  
Devon Energy Corp.
2.25%, 12/15/18 (b)
    200,000       200,629  
Dominion Gas Holdings LLC
1.05%, 11/01/16
    500,000       500,774  
Encana Corp.
6.50%, 05/15/19
    250,000       291,558  
Energy Transfer Partners LP
6.13%, 02/15/17
    200,000       219,585  
6.70%, 07/01/18
    350,000       401,080  
Ensco PLC
3.25%, 03/15/16
    400,000       411,299  
Exxon Mobil Corp.
0.92%, 03/15/17
    250,000       250,400  
Halliburton Co.
6.15%, 09/15/19
    150,000       175,549  
Hess Corp.
1.30%, 06/15/17
    250,000       247,639  
Kinder Morgan Energy Partners LP
5.95%, 02/15/18
    150,000       166,981  
2.65%, 02/01/19
    300,000       299,668  
Kinder Morgan, Inc.
3.05%, 12/01/19 (b)
    500,000       503,263  
Marathon Petroleum Corp.
3.50%, 03/01/16
    100,000       102,878  
Murphy Oil Corp.
2.50%, 12/01/17
    200,000       202,646  
Nabors Industries, Inc.
6.15%, 02/15/18
    250,000       279,138  
Occidental Petroleum Corp.
1.50%, 02/15/18 (b)
    600,000       597,310  
Shell International Finance BV
5.20%, 03/22/17
    150,000       164,332  
4.30%, 09/22/19
    150,000       165,876  
Spectra Energy Partners LP
2.95%, 09/25/18 (b)
    300,000       309,568  
Suncor Energy, Inc.
6.10%, 06/01/18
    500,000       572,014  
Total Capital International S.A.
2.10%, 06/19/19
    100,000       100,810  
Total Capital S.A.
2.30%, 03/15/16
    100,000       102,231  
1.50%, 02/17/17
    150,000       151,673  
Valero Energy Corp.
6.13%, 06/15/17
    200,000       221,761  
Weatherford International Ltd.
5.50%, 02/15/16
    350,000       367,534  
Williams Partners LP
7.25%, 02/01/17
    200,000       223,756  
                 
              8,974,840  
                 
 
Technology 1.5%
Amphenol Corp.
1.55%, 09/15/17
    200,000       200,720  
Apple, Inc.
1.00%, 05/03/18
    350,000       345,207  
Arrow Electronics, Inc.
3.00%, 03/01/18
    500,000       516,474  
Baidu, Inc.
3.25%, 08/06/18
    200,000       206,432  
Broadcom Corp.
2.70%, 11/01/18
    500,000       515,070  
Cisco Systems, Inc.
5.50%, 02/22/16
    200,000       212,133  
1.10%, 03/03/17
    150,000       150,610  
Fiserv, Inc.
6.80%, 11/20/17
    400,000       457,128  
Hewlett-Packard Co.
2.65%, 06/01/16
    500,000       511,622  
2.75%, 01/14/19
    400,000       402,296  
Intel Corp.
1.35%, 12/15/17
    150,000       149,990  
International Business Machines Corp.
1.88%, 05/15/19
    200,000       200,156  
KLA-Tencor Corp.
3.38%, 11/01/19 (b)
    500,000       511,160  
Microsoft Corp.
1.63%, 12/06/18
    150,000       151,759  
NetApp, Inc.
2.00%, 12/15/17
    750,000       755,574  
Oracle Corp.
5.25%, 01/15/16
    250,000       263,414  
Seagate HDD Cayman
3.75%, 11/15/18 (c)
    400,000       413,000  
Texas Instruments, Inc.
2.38%, 05/16/16
    150,000       154,092  
Xerox Corp.
2.95%, 03/15/17
    150,000       155,146  
                 
              6,271,983  
                 
 
Transportation 0.3%
Burlington Northern Santa Fe Corp.
5.75%, 03/15/18
    300,000       341,113  
Canadian National Railway Co.
1.45%, 12/15/16 (b)
    150,000       151,665  
CSX Corp.
5.60%, 05/01/17
    100,000       110,325  
Ryder System, Inc.
2.55%, 06/01/19 (b)
    300,000       302,797  
Southwest Airlines Co.
5.13%, 03/01/17
    200,000       215,732  
2.75%, 11/06/19 (b)
    200,000       202,116  
                 
              1,323,748  
                 
              52,548,818  
 
Utilities 1.3%
                 
 
Electric 1.2%
American Electric Power Co., Inc.
1.65%, 12/15/17 (b)
    400,000       402,278  
CMS Energy Corp.
5.05%, 02/15/18
    150,000       164,516  
 
 
 
 7

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Commonwealth Edison Co.
2.15%, 01/15/19 (b)
    500,000       506,779  
Consumers Energy Co.
5.50%, 08/15/16
    74,000       79,797  
5.15%, 02/15/17
    150,000       163,240  
Duke Energy Corp.
1.63%, 08/15/17
    150,000       151,160  
2.10%, 06/15/18 (b)
    200,000       203,307  
Duke Energy Ohio, Inc.
5.45%, 04/01/19
    400,000       458,940  
Edison International
3.75%, 09/15/17
    150,000       159,387  
MidAmerican Energy Co.
2.40%, 03/15/19 (b)
    300,000       306,492  
Oncor Electric Delivery Co., LLC
2.15%, 06/01/19 (b)(c)
    350,000       350,350  
Pacific Gas & Electric Co.
5.63%, 11/30/17
    200,000       224,299  
PPL Capital Funding Inc.
1.90%, 06/01/18 (b)
    100,000       100,450  
Sierra Pacific Power Co.
6.00%, 05/15/16
    300,000       322,543  
The Dayton Power & Light Co.
1.88%, 09/15/16
    300,000       303,305  
The Southern Co.
2.45%, 09/01/18
    150,000       154,027  
2.15%, 09/01/19 (b)
    300,000       300,041  
TransAlta Corp.
6.65%, 05/15/18
    100,000       112,412  
Xcel Energy, Inc.
0.75%, 05/09/16
    500,000       500,228  
                 
              4,963,551  
                 
 
Natural Gas 0.1%
ONE Gas, Inc.
2.07%, 02/01/19 (b)
    150,000       151,361  
Sempra Energy
6.50%, 06/01/16
    250,000       270,665  
                 
              422,026  
                 
              5,385,577  
                 
Total Corporate Bonds
(Cost $101,306,157)     102,106,278  
         
                 
                 
 
 Municipal Bonds 0.2% of net assets
 
Fixed-Rate Obligations 0.2%
California
GO Bonds Series 2010
6.20%, 03/01/19
    540,000       632,351  
Illinois
GO Bonds Series 2011
5.37%, 03/01/17
    250,000       269,575  
                 
Total Municipal Bonds
(Cost $893,657)     901,926  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Companies 0.7% of net assets
 
Money Market Fund 0.7%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    2,903,518       2,903,518  
 
Securities Lending Collateral 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    149,100       149,100  
                 
Total Other Investment Companies
(Cost $3,052,618)     3,052,618  
         
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $414,042,042 and the unrealized appreciation and depreciation were $2,468,491 and ($321,014), respectively, with a net unrealized appreciation of $2,147,477.
 
* Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others.
(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 $1,013,273 or 0.2% of net assets.
(d) Guaranteed by the Republic of Germany.
(e) The rate shown is the 7-day yield.
(f) All or a portion of this security is on loan. Securities on loan were valued at $145,018.
 
     
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.
 
 
 
8 

 

 
 Schwab Short-Term Bond Market 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 ask 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 may be valued at amortized cost, which approximates market value.
 
  •  Underlying funds: Mutual funds are valued at their respective net asset values (“NAVs”).
 
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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by the underlying fund.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active
 
 
 
 9

 

 
 Schwab Short-Term Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
U.S. Government and Government Agencies1
    $—       $277,502,299       $—       $277,502,299  
Foreign Securities1
    —       32,626,398       —       32,626,398  
Corporate Bonds1
    —       102,106,278       —       102,106,278  
Municipal Bonds1
    —       901,926       —       901,926  
Other Investment Companies1
    3,052,618       —       —       3,052,618  
                                 
Total
    $3,052,618       $413,136,901       $—       $416,189,519  
                                 
 
     
1
  As categorized in Portfolio Holdings.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2014.
 
REG406016NOV14
 
 
 
10 

 

Schwab Investments
Schwab Intermediate-Term Bond Fund™
 
Portfolio Holdings as of November 30, 2014 (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   ($)   ($)
 
  23 .4%   Corporate Bonds     85,255,874       86,677,402  
  0 .3%   Asset-Backed Obligations     1,102,557       1,119,543  
  35 .7%   Mortgage-Backed Securities     128,642,275       132,505,317  
  3 .2%   Commercial Mortgage-Backed Securities     11,572,945       11,849,443  
  38 .6%   U.S. Government and Government Agencies     141,610,875       143,259,182  
  4 .1%   Foreign Securities     14,934,114       15,258,770  
  0 .1%   Preferred Stock     350,700       350,700  
  0 .6%   Other Investment Company     2,088,365       2,088,365  
 
 
  106 .0%   Total Investments     385,557,705       393,108,722  
  (1 .2)%   TBA Sale Commitments     (4,432,813 )     (4,443,515 )
  (4 .8%)   Other Assets and Liabilities, Net             (17,877,271 )
 
 
  100 .0%   Net Assets             370,787,936  
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Corporate Bonds 23.4% of net assets
 
Finance 8.8%
                 
 
Banking 5.2%
Abbey National Treasury Services PLC
3.05%, 08/23/18
    500,000       521,540  
2.35%, 09/10/19
    500,000       501,661  
American Express Co.
5.50%, 09/12/16 (g)
    500,000       539,890  
Bank of America Corp.
5.42%, 03/15/17
    500,000       541,005  
1.27%, 01/15/19 (a)
    1,000,000       1,013,112  
5.63%, 07/01/20
    500,000       573,948  
4.00%, 04/01/24
    550,000       575,776  
BNP Paribas S.A.
3.60%, 02/23/16
    300,000       310,104  
3.25%, 03/03/23
    500,000       509,106  
BPCE S.A.
1.48%, 04/25/16 (a)
    1,000,000       1,013,123  
Capital One Financial Corp.
1.00%, 11/06/15
    500,000       501,127  
Citigroup, Inc.
3.95%, 06/15/16
    500,000       521,801  
1.19%, 07/25/16 (a)
    1,000,000       1,008,122  
Credit Suisse USA, Inc.
1.38%, 05/26/17
    150,000       150,284  
First Tennessee Bank NA
5.05%, 01/15/15
    1,000,000       1,005,141  
2.95%, 12/01/19 (b)
    250,000       251,292  
JPMorgan Chase & Co.
6.00%, 01/15/18
    750,000       847,072  
4.95%, 03/25/20
    500,000       559,194  
Lloyds Bank PLC
6.38%, 01/21/21
    1,000,000       1,207,739  
Manufacturers & Traders Trust Co.
5.63%, 12/01/21 (a)(b)
    500,000       523,960  
Merrill Lynch & Co., Inc.
5.00%, 01/15/15
    500,000       502,673  
Morgan Stanley
5.50%, 07/24/20
    1,000,000       1,137,916  
3.75%, 02/25/23
    100,000       103,043  
4.10%, 05/22/23
    250,000       255,073  
Rabobank Nederland
4.63%, 12/01/23
    700,000       743,210  
Regions Financial Corp.
2.00%, 05/15/18 (b)
    150,000       149,298  
Royal Bank of Scotland Group PLC
2.55%, 09/18/15
    250,000       253,257  
Skandinaviska Enskilda Banken AB
1.75%, 03/19/18 (c)
    500,000       501,299  
The Bear Stearns Cos. LLC
7.25%, 02/01/18
    250,000       291,621  
The Goldman Sachs Group, Inc.
3.30%, 05/03/15
    250,000       252,869  
5.63%, 01/15/17
    250,000       270,476  
2.38%, 01/22/18
    400,000       407,389  
6.15%, 04/01/18 (g)
    650,000       736,482  
3.85%, 07/08/24 (b)
    100,000       102,539  
Wells Fargo & Co.
5.63%, 12/11/17
    300,000       336,120  
4.60%, 04/01/21
    500,000       555,555  
                 
              19,273,817  
                 
 
Brokerage 0.1%
Nomura Holdings, Inc.
5.00%, 03/04/15
    300,000       303,184  
2.75%, 03/19/19
    250,000       254,597  
                 
              557,781  
                 
 
Finance Company 1.2%
GATX Corp.
1.25%, 03/04/17
    600,000       597,744  
2.50%, 07/30/19
    600,000       600,473  
General Electric Capital Corp.
5.63%, 05/01/18 (g)
    500,000       566,781  
International Lease Finance Corp.
4.88%, 04/01/15
    1,000,000       1,011,250  
Synchrony Financial
3.00%, 08/15/19 (b)
    500,000       507,953  
3.75%, 08/15/21 (b)
    500,000       513,216  
4.25%, 08/15/24 (b)
    500,000       511,379  
                 
              4,308,796  
 
 
 
 1

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
                 
 
Insurance 1.1%
Aflac, Inc.
3.63%, 11/15/24
    300,000       305,173  
American International Group, Inc.
2.38%, 08/24/15
    600,000       607,086  
Assurant, Inc.
2.50%, 03/15/18
    750,000       759,540  
Cigna Corp.
5.13%, 06/15/20
    350,000       393,607  
CNA Financial Corp.
5.88%, 08/15/20
    250,000       288,340  
Prudential Financial, Inc.
4.50%, 11/15/20
    500,000       548,392  
The Chubb Corp.
6.38%, 03/29/67 (a)(b)
    100,000       109,000  
WellPoint, Inc.
2.30%, 07/15/18
    250,000       253,069  
2.25%, 08/15/19
    250,000       249,038  
3.50%, 08/15/24 (b)
    500,000       502,849  
                 
              4,016,094  
                 
 
Real Estate Investment Trust 1.2%
Brandywine Operating Partnership LP
3.95%, 02/15/23 (b)
    500,000       504,458  
Duke Realty LP
3.75%, 12/01/24 (b)
    900,000       904,478  
Kilroy Realty LP
6.63%, 06/01/20
    500,000       590,723  
4.25%, 08/15/29 (b)
    500,000       504,360  
Kimco Realty Corp.
3.20%, 05/01/21 (b)
    750,000       760,550  
ProLogis LP
4.50%, 08/15/17
    250,000       268,943  
Regency Centers LP
5.88%, 06/15/17
    320,000       355,351  
WP Carey, Inc.
4.60%, 04/01/24 (b)
    500,000       526,194  
                 
              4,415,057  
                 
              32,571,545  
 
Industrial 13.5%
                 
 
Basic Industry 1.7%
Airgas, Inc.
3.65%, 07/15/24 (b)
    500,000       511,210  
Alcoa, Inc.
5.13%, 10/01/24 (b)
    500,000       527,916  
Anglo American Capital PLC
1.18%, 04/15/16 (a)(c)
    500,000       502,066  
Barrick North America Finance LLC
4.40%, 05/30/21
    700,000       722,180  
BHP Billiton Finance (USA) Ltd.
3.25%, 11/21/21
    500,000       518,038  
Eastman Chemical Co.
2.70%, 01/15/20 (b)
    350,000       354,167  
3.80%, 03/15/25 (b)
    500,000       512,254  
Georgia-Pacific LLC
3.60%, 03/01/25 (b)(c)
    1,000,000       1,012,737  
Glencore Funding LLC
2.50%, 01/15/19 (c)
    500,000       499,089  
Kinross Gold Corp.
5.13%, 09/01/21 (b)
    250,000       240,348  
LYB International Finance BV
4.00%, 07/15/23
    500,000       524,628  
The Dow Chemical Co.
4.25%, 11/15/20 (b)
    500,000       541,141  
                 
              6,465,774  
                 
 
Capital Goods 0.8%
Caterpillar Financial Services Corp.
0.70%, 11/06/15
    500,000       501,393  
Eaton Corp.
0.95%, 11/02/15
    100,000       100,225  
2.75%, 11/02/22
    750,000       737,452  
General Electric Co.
0.85%, 10/09/15
    200,000       200,919  
5.25%, 12/06/17 (g)
    500,000       555,127  
John Deere Capital Corp.
2.95%, 03/09/15 (g)
    350,000       352,547  
Packaging Corp. of America
3.65%, 09/15/24 (b)
    650,000       649,237  
                 
              3,096,900  
                 
 
Communications 2.6%
21st Century Fox America, Inc.
4.00%, 10/01/23
    300,000       317,875  
America Movil, S.A.B. de CV
1.23%, 09/12/16 (a)
    1,000,000       1,007,305  
AT&T, Inc.
2.38%, 11/27/18
    200,000       202,999  
5.80%, 02/15/19
    750,000       859,459  
Comcast Corp.
5.88%, 02/15/18
    400,000       453,842  
5.70%, 07/01/19
    350,000       405,600  
DIRECTV Holdings LLC
5.20%, 03/15/20
    250,000       281,272  
Embarq Corp.
7.08%, 06/01/16
    750,000       809,686  
Grupo Televisa S.A.B.
6.00%, 05/15/18
    500,000       564,090  
Omnicom Group, Inc.
3.65%, 11/01/24 (b)
    500,000       503,295  
Orange S.A.
2.75%, 02/06/19
    400,000       410,067  
Telefonica Emisiones S.A.U.
4.95%, 01/15/15
    300,000       301,363  
Time Warner, Inc.
3.15%, 07/15/15
    250,000       253,991  
Verizon Communications, Inc.
0.63%, 06/09/17 (a)
    1,000,000       1,000,373  
4.50%, 09/15/20
    1,000,000       1,095,378  
3.50%, 11/01/24 (b)
    500,000       500,871  
Viacom, Inc.
4.50%, 03/01/21
    250,000       269,445  
3.88%, 04/01/24 (b)
    300,000       304,043  
                 
              9,540,954  
                 
 
Consumer Cyclical 1.5%
CVS Health Corp.
3.38%, 08/12/24 (b)
    500,000       503,472  
Ford Motor Credit Co. LLC
1.48%, 05/09/16 (a)
    1,000,000       1,011,554  
Hyundai Capital Services, Inc.
1.03%, 03/18/17 (a)(c)
    1,000,000       1,001,922  
Macy’s Retail Holdings, Inc.
5.90%, 12/01/16
    213,000       232,746  
4.38%, 09/01/23 (b)
    250,000       268,925  
Marriott International, Inc.
3.00%, 03/01/19 (b)
    650,000       670,117  
3.13%, 10/15/21 (b)
    600,000       607,500  
 
 
 
2 

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
QVC, Inc.
5.45%, 08/15/34 (b)(c)
    500,000       485,643  
The Gap, Inc.
5.95%, 04/12/21 (b)
    500,000       570,527  
Wyndham Worldwide Corp.
5.63%, 03/01/21
    100,000       111,650  
                 
              5,464,056  
                 
 
Consumer Non-Cyclical 1.8%
Altria Group, Inc.
4.75%, 05/05/21
    500,000       555,112  
Anheuser-Busch InBev Finance, Inc.
3.70%, 02/01/24
    250,000       260,683  
Cardinal Health, Inc.
4.63%, 12/15/20
    500,000       551,304  
3.20%, 06/15/22
    100,000       100,474  
3.20%, 03/15/23
    250,000       248,574  
Express Scripts Holding Co.
2.10%, 02/12/15
    250,000       250,656  
Gilead Sciences, Inc.
2.35%, 02/01/20
    1,000,000       1,013,277  
Kraft Foods Group, Inc.
5.38%, 02/10/20
    523,000       598,111  
McKesson Corp.
4.75%, 03/01/21 (b)
    500,000       554,612  
Mondelez International, Inc.
2.25%, 02/01/19 (b)
    350,000       352,497  
Mylan, Inc.
7.88%, 07/15/20 (b)(c)
    1,000,000       1,074,388  
PepsiCo, Inc.
2.25%, 01/07/19 (b)
    150,000       153,382  
Philip Morris International, Inc.
4.50%, 03/26/20
    500,000       556,523  
Thermo Fisher Scientific, Inc.
4.15%, 02/01/24 (b)
    150,000       158,559  
Zoetis, Inc.
3.25%, 02/01/23 (b)
    250,000       244,566  
                 
              6,672,718  
                 
 
Energy 2.9%
Anadarko Petroleum Corp.
6.38%, 09/15/17
    250,000       280,926  
Buckeye Partners LP
4.35%, 10/15/24 (b)
    500,000       503,219  
Canadian Natural Resources Ltd.
0.61%, 03/30/16 (a)
    250,000       250,264  
1.75%, 01/15/18
    850,000       851,708  
3.80%, 04/15/24
    250,000       254,161  
3.90%, 02/01/25 (b)
    500,000       509,747  
Continental Resources, Inc.
5.00%, 09/15/22 (b)
    500,000       515,610  
El Paso Pipeline Partners Operating Co., LLC
4.30%, 05/01/24 (b)
    1,000,000       1,004,740  
Encana Corp.
6.50%, 05/15/19
    500,000       583,115  
Energy Transfer Partners LP
6.70%, 07/01/18
    150,000       171,892  
4.15%, 10/01/20 (b)
    100,000       104,743  
Ensco PLC
4.70%, 03/15/21
    250,000       262,761  
4.50%, 10/01/24 (b)
    700,000       703,898  
Enterprise Products Operating LLC
2.55%, 10/15/19 (b)
    200,000       200,523  
3.75%, 02/15/25 (b)
    350,000       356,461  
Freeport-McMoran Oil & Gas LLC
6.50%, 11/15/20 (b)
    650,000       708,500  
Hess Corp.
8.13%, 02/15/19
    500,000       606,289  
Kinder Morgan, Inc.
4.30%, 06/01/25 (b)
    500,000       504,190  
Nabors Industries, Inc.
5.10%, 09/15/23 (b)
    250,000       260,190  
Plains All American Pipeline LP
3.85%, 10/15/23 (b)
    100,000       102,406  
The Williams Cos., Inc.
4.55%, 06/24/24 (b)
    1,000,000       990,899  
Valero Energy Corp.
9.38%, 03/15/19
    250,000       315,012  
Weatherford International Ltd.
9.63%, 03/01/19
    250,000       312,728  
Williams Partners LP
7.25%, 02/01/17
    300,000       335,634  
                 
              10,689,616  
                 
 
Technology 1.6%
Arrow Electronics, Inc.
3.00%, 03/01/18
    300,000       309,884  
4.50%, 03/01/23 (b)
    300,000       311,447  
Baidu, Inc.
3.25%, 08/06/18
    300,000       309,648  
Broadcom Corp.
3.50%, 08/01/24 (b)
    500,000       503,242  
Cisco Systems, Inc.
1.10%, 03/03/17
    400,000       401,628  
Hewlett-Packard Co.
1.17%, 01/14/19 (a)
    500,000       496,308  
KLA-Tencor Corp.
3.38%, 11/01/19 (b)
    500,000       511,160  
4.65%, 11/01/24 (b)
    800,000       816,326  
NetApp, Inc.
3.38%, 06/15/21 (b)
    500,000       506,463  
Oracle Corp.
0.43%, 07/07/17 (a)
    500,000       500,578  
Pitney Bowes, Inc.
4.63%, 03/15/24 (b)
    200,000       204,537  
Seagate HDD Cayman
4.75%, 01/01/25 (c)
    1,000,000       1,037,724  
Xerox Corp.
4.25%, 02/15/15
    250,000       251,871  
                 
              6,160,816  
                 
 
Transportation 0.6%
American Airlines 2013-1 Class A Pass Through Trust
4.00%, 01/15/27
    332,053       338,694  
Burlington Northern Santa Fe LLC
4.70%, 10/01/19
    300,000       335,675  
3.60%, 09/01/20 (b)(g)
    250,000       264,671  
Canadian National Railway Co.
0.40%, 11/14/17 (a)
    800,000       800,686  
CSX Corp.
7.38%, 02/01/19
    300,000       363,040  
                 
              2,102,766  
                 
              50,193,600  
 
Utilities 1.1%
                 
 
Electric 1.0%
CenterPoint Energy Houston Electric LLC
2.25%, 08/01/22 (b)
    100,000       96,238  
Dominion Resources, Inc.
6.40%, 06/15/18 (g)
    500,000       574,933  
 
 
 
 3

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Duke Energy Corp.
0.61%, 04/03/17 (a)
    1,000,000       1,003,126  
5.05%, 09/15/19 (g)
    750,000       847,845  
Exelon Generation Co., LLC
4.00%, 10/01/20 (b)
    500,000       527,177  
Oncor Electric Delivery Co., LLC
2.15%, 06/01/19 (b)(c)
    150,000       150,150  
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)
    100,000       98,834  
Sempra Energy
3.55%, 06/15/24 (b)
    250,000       254,689  
TransAlta Corp.
6.65%, 05/15/18
    100,000       112,412  
                 
              3,665,404  
                 
 
Natural Gas 0.1%
ONE Gas, Inc.
2.07%, 02/01/19 (b)
    100,000       100,907  
Sempra Energy
2.88%, 10/01/22 (b)
    150,000       145,946  
                 
              246,853  
                 
              3,912,257  
                 
Total Corporate Bonds
(Cost $85,255,874)     86,677,402  
         
                 
                 
 
 Asset-Backed Obligations 0.3% of net assets
                 
                 
Citibank Credit Card Issuance Trust
Series 2007-A8 Class A8
5.65%, 09/20/19 (b)
    1,000,000       1,119,543  
                 
Total Asset-Backed Obligations
(Cost $1,102,557)     1,119,543  
         
                 
                 
 
 Mortgage-Backed Securities 35.7% of net assets
 
Collateralized Mortgage Obligations 0.5%
Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-23 Class 7A1
5.00%, 09/25/18 (b)(g)
    878,567       898,917  
MASTR Asset Securitization Trust
Series 2003-10 Class 3A1
5.50%, 11/25/33 (b)(g)
    210,352       221,567  
Residential Accredit Loans, Inc.
Series 2002-QS18 Class A1
5.50%, 12/25/17 (b)(g)
    26,954       27,268  
Sequoia Mortgage Trust
Series 2011-1 Class A1
4.13%, 02/25/41 (b)(g)
    247,665       251,317  
Series 2012-2 Class A2
3.50%, 04/25/42 (b)(g)
    282,193       287,782  
Series 2013-5 Class A1
2.50%, 05/25/43 (b)(c)
    321,352       307,313  
                 
              1,994,164  
 
TBA Securities 5.5%
Fannie Mae TBA
2.00%, 12/01/29 (b)(f)
    400,000       399,047  
2.50%, 12/01/29 (b)(f)
    300,000       305,900  
3.00%, 12/01/29 to 01/01/45 (b)(f)
    2,800,000       2,849,219  
3.50%, 12/01/29 to 01/01/45 (b)(f)
    2,000,000       2,114,789  
4.00%, 12/01/44 (b)(f)
    2,100,000       2,242,242  
4.50%, 12/01/44 (b)(f)
    1,000,000       1,086,953  
Freddie Mac TBA
2.00%, 12/01/29 (b)(f)
    400,000       399,031  
2.50%, 12/01/29 (b)(f)
    900,000       917,297  
3.00%, 12/01/29 to 12/01/44 (b)(f)
    1,100,000       1,135,301  
3.50%, 12/01/29 to 01/01/45 (b)(f)
    3,900,000       4,069,328  
4.00%, 12/01/44 (b)(f)
    800,000       853,125  
Ginnie Mae TBA
3.00%, 12/01/44 to 01/01/45 (b)(f)
    3,000,000       3,067,148  
3.50%, 12/01/44 (b)(f)
    1,000,000       1,049,891  
                 
              20,489,271  
 
U.S. Government Agency Mortgages 29.7%
Fannie Mae
6.00%, 03/01/16 to 05/01/21 (b)(g)
    266,192       295,130  
7.00%, 11/15/16 to 01/01/35 (b)
    342,434       403,570  
6.00%, 06/01/17 to 10/01/39 (b)
    2,135,895       2,424,044  
4.50%, 03/01/18 to 10/01/43 (b)
    4,866,845       5,257,597  
6.50%, 03/01/19 to 09/01/22 (b)
    282,276       315,850  
6.50%, 07/01/21 (b)(g)
    21,011       23,915  
5.50%, 10/01/22 (b)(g)
    323,396       361,681  
5.50%, 01/01/23 to 05/01/40 (b)
    1,495,296       1,682,734  
5.00%, 08/01/23 (b)(g)
    1,245,860       1,381,027  
5.00%, 09/01/23 to 05/01/40 (b)
    1,850,706       2,051,801  
3.00%, 01/01/26 to 05/01/43 (b)
    10,005,168       10,233,652  
2.50%, 07/01/28 to 02/01/43 (b)
    3,258,702       3,312,871  
3.50%, 02/01/32 to 07/01/43 (b)
    9,681,264       10,124,845  
5.49%, 08/01/32 to 12/01/32 (b)
    656,795       738,944  
5.45%, 06/01/33 to 07/01/33 (b)
    87,159       97,288  
3.72%, 06/01/40 (a)(b)
    2,425,457       2,588,963  
4.00%, 09/01/40 (b)(g)
    4,896,212       5,248,540  
4.00%, 02/01/41 to 08/01/44 (b)
    785,432       842,331  
Fannie Mae REMICs
6.00%, 01/25/20 (b)
    63,518       67,764  
3.25%, 04/25/28 (b)
    16,982       17,336  
Freddie Mac
4.50%, 09/01/15 (b)(g)
    566       595  
6.50%, 03/01/16 to 02/01/21 (b)(g)
    138,068       152,699  
6.00%, 06/01/16 to 10/01/38 (b)
    455,938       523,161  
5.50%, 11/01/17 to 02/01/37 (b)
    842,570       937,112  
4.50%, 10/01/18 to 08/01/41 (b)
    4,341,750       4,738,106  
5.00%, 10/01/18 to 10/01/43 (b)
    1,921,502       2,115,348  
4.00%, 07/01/19 to 01/01/44 (b)
    4,701,383       5,048,255  
6.50%, 08/01/22 to 04/01/26 (b)
    124,659       141,916  
2.50%, 07/01/28 to 05/01/33 (b)
    1,404,483       1,436,496  
3.00%, 09/01/28 to 07/01/43 (b)
    4,090,895       4,166,256  
5.50%, 06/01/33 to 10/01/33 (b)(g)
    2,162,956       2,437,453  
3.50%, 03/01/42 to 07/01/43 (b)
    1,244,476       1,297,905  
Freddie Mac REMICs
3.00%, 08/15/19 (b)
    392,072       397,785  
2.00%, 07/15/20 (b)
    467,413       470,934  
0.70%, 05/15/23 (a)(b)
    47,107       47,315  
4.00%, 11/15/23 to 02/15/27 (b)
    726,798       739,508  
5.00%, 09/15/33 (b)
    96,632       97,805  
6.00%, 08/15/35 (b)
    67,463       69,442  
Ginnie Mae
6.00%, 03/15/17 to 03/15/38 (b)
    41,631       46,536  
9.50%, 03/20/17 to 05/20/20 (b)
    4,507       4,729  
5.00%, 12/15/17 to 08/15/40 (b)
    4,843,476       5,393,426  
10.00%, 04/15/18 to 06/20/19 (b)
    1,229       1,298  
5.50%, 06/15/18 to 08/20/40 (b)
    3,791,625       4,311,534  
4.00%, 08/15/18 to 10/20/44 (b)
    7,256,405       7,789,686  
4.50%, 11/15/18 to 10/20/44 (b)
    4,100,531       4,505,095  
 
 
 
4 

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
8.50%, 06/15/21 to 10/20/26 (b)
    1,504       1,553  
7.50%, 03/15/22 to 10/15/25 (b)
    2,551       2,670  
6.50%, 10/15/23 to 10/15/38 (b)
    21,882       25,290  
8.00%, 06/20/24 to 07/15/27 (b)
    2,605       2,845  
3.00%, 02/15/26 to 07/20/44 (b)
    3,035,592       3,124,997  
3.50%, 01/20/27 to 08/20/44 (b)
    6,059,615       6,378,662  
2.50%, 06/15/27 (b)
    334,168       344,297  
2.00%, 07/20/28 (b)
    22,189       22,160  
7.00%, 04/15/31 (b)
    6,638       7,567  
5.50%, 02/15/33 to 06/15/34 (b)(g)
    2,450,625       2,774,375  
5.00%, 10/15/34 (b)(g)
    1,691,738       1,879,287  
5.25%, 11/15/34 (b)
    127,899       142,183  
Ginnie Mae REMICs
6.46%, 08/20/34 (a)(b)
    828,347       975,718  
                 
              110,021,882  
                 
Total Mortgage-Backed Securities
(Cost $128,642,275)     132,505,317  
         
                 
                 
 
 Commercial Mortgage-Backed Securities 3.2% of net assets
                 
                 
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10 Class A4
5.41%, 12/11/40 (b)(g)
    2,475,347       2,551,953  
Series 2006-T24 Class A4
5.54%, 10/12/41 (b)
    943,195       1,005,779  
Series 2007-T28 Class A4
5.74%, 09/11/42 (a)(b)
    505,000       556,281  
Fannie Mae-Aces
Series 2011-M5 Class A2
2.94%, 07/25/21 (b)
    250,000       258,854  
Series 2014-M6 Class A2
2.68%, 05/25/21 (b)
    500,000       510,558  
FHLMC Multifamily Structured Pass-Through Certificates
Series K014 Class A1
2.79%, 10/25/20 (b)
    325,575       338,634  
Series K026 Class A2
2.51%, 11/25/22 (b)
    650,000       650,430  
Series K027 Class A2
2.64%, 01/25/23 (b)
    110,000       110,956  
Series K710 Class A2
1.88%, 05/25/19 (b)
    300,000       301,983  
Series K714 Class A2
3.03%, 10/25/20 (b)
    154,000       162,173  
Government National Mortgage Association
Series 2012-55 Class A
1.70%, 08/16/33 (b)
    60,755       61,239  
Greenwich Capital Commercial Funding Corp.
Series 2006-GG7 Class A4
6.01%, 07/10/38 (a)(b)
    641,371       675,056  
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)(g)
    1,000,000       1,073,048  
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2013-C13 Class A1
1.30%, 01/15/46 (b)
    333,535       335,661  
Series 2013-C16 Class A2
3.07%, 12/15/46 (b)
    3,000,000       3,133,315  
Morgan Stanley Capital I Trust
Series 2006-T21 Class A4
5.16%, 10/12/52 (a)(b)
    120,000       123,523  
                 
Total Commercial Mortgage-Backed Securities
(Cost $11,572,945)     11,849,443  
         
                 
                 
 
 U.S. Government and Government Agencies 38.6% of net assets
 
U.S. Government Agency Securities 3.4%
Fannie Mae
0.63%, 08/26/16
    6,000,000       6,013,410  
1.63%, 01/10/20 (b)
    3,000,000       2,967,321  
Freddie Mac
2.50%, 05/27/16
    3,000,000       3,097,455  
1.25%, 08/01/19
    600,000       589,483  
                 
              12,667,669  
 
U.S. Treasury Obligations 35.2%
U.S. Treasury Notes
0.38%, 01/15/16
    6,000,000       6,013,596  
2.00%, 04/30/16 (g)
    3,000,000       3,074,766  
1.50%, 07/31/16
    2,550,000       2,599,008  
0.63%, 08/15/16
    8,000,000       8,035,624  
0.75%, 01/15/17 (g)
    16,000,000       16,068,752  
0.88%, 02/28/17
    5,000,000       5,031,640  
3.13%, 04/30/17 (g)
    1,500,000       1,588,476  
0.88%, 05/15/17
    3,000,000       3,013,359  
0.88%, 06/15/17
    3,000,000       3,011,250  
0.75%, 06/30/17
    10,000,000       9,996,880  
0.88%, 07/15/17
    1,500,000       1,504,454  
1.88%, 10/31/17 (g)
    3,000,000       3,086,016  
0.75%, 12/31/17
    6,000,000       5,962,500  
2.88%, 03/31/18 (g)
    2,000,000       2,120,312  
3.75%, 11/15/18 (g)
    2,000,000       2,193,906  
1.63%, 03/31/19
    3,000,000       3,032,577  
1.25%, 04/30/19
    2,250,000       2,237,344  
1.50%, 05/31/19
    1,500,000       1,505,976  
1.00%, 06/30/19
    3,250,000       3,187,538  
1.63%, 06/30/19
    1,500,000       1,513,359  
1.75%, 09/30/19
    4,000,000       4,049,064  
1.50%, 11/30/19
    3,000,000       2,998,827  
1.38%, 01/31/20
    2,500,000       2,476,758  
1.25%, 02/29/20
    4,500,000       4,425,822  
3.50%, 05/15/20
    5,000,000       5,490,625  
2.63%, 08/15/20
    2,000,000       2,100,468  
2.38%, 12/31/20
    4,000,000       4,138,752  
2.13%, 01/31/21
    2,500,000       2,548,632  
2.00%, 02/28/21
    3,000,000       3,033,516  
2.25%, 04/30/21
    1,000,000       1,025,234  
2.13%, 06/30/21
    2,500,000       2,540,820  
1.63%, 08/15/22
    2,000,000       1,947,656  
2.00%, 02/15/23
    1,500,000       1,494,843  
2.50%, 08/15/23
    2,000,000       2,065,156  
2.75%, 11/15/23
    1,000,000       1,051,953  
2.75%, 02/15/24
    2,500,000       2,626,562  
2.50%, 05/15/24
    1,750,000       1,799,492  
                 
              130,591,513  
                 
Total U.S. Government and Government Agencies
(Cost $141,610,875)     143,259,182  
         
                 
                 
 
 Foreign Securities 4.1% of net assets
 
Foreign Agencies 1.0%
                 
 
Germany 0.3%
Kreditanstalt Fuer Wiederaufbau
4.00%, 01/27/20 (d)
    1,000,000       1,113,065  
 
 
 
 5

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
                 
 
Mexico 0.3%
Petroleos Mexicanos
2.25%, 07/18/18 (a)
    500,000       516,875  
5.50%, 01/21/21
    500,000       556,875  
                 
              1,073,750  
                 
 
Norway 0.1%
Statoil A.S.A.
3.13%, 08/17/17
    500,000       525,442  
                 
 
Republic of Korea 0.3%
Export-Import Bank of Korea
4.00%, 01/11/17 (g)
    500,000       527,983  
Korea Development Bank
3.75%, 01/22/24
    500,000       530,854  
                 
              1,058,837  
                 
              3,771,094  
 
Foreign Local Government 0.3%
                 
 
Canada 0.3%
Province of Manitoba
1.13%, 06/01/18
    1,000,000       995,121  
 
Sovereign 0.9%
                 
 
Chile 0.1%
Republic of Chile
2.25%, 10/30/22
    250,000       242,188  
                 
 
Italy 0.1%
Republic of Italy
3.13%, 01/26/15
    100,000       100,354  
5.38%, 06/12/17
    250,000       273,818  
                 
              374,172  
                 
 
Mexico 0.2%
United Mexican States
5.13%, 01/15/20
    500,000       560,250  
3.63%, 03/15/22
    250,000       258,875  
                 
              819,125  
                 
 
Panama 0.1%
Republic of Panama
4.00%, 09/22/24 (b)
    500,000       512,000  
                 
 
Philippines 0.0%
Republic of the Philippines
4.20%, 01/21/24
    150,000       163,500  
                 
 
Poland 0.2%
Republic of Poland
6.38%, 07/15/19
    500,000       592,500  
                 
 
Republic of Korea 0.1%
Republic of Korea
5.13%, 12/07/16 (g)
    500,000       543,805  
                 
 
Turkey 0.1%
Republic of Turkey
3.25%, 03/23/23
    300,000       286,095  
                 
              3,533,385  
 
Supranational* 1.9%
Asian Development Bank
2.50%, 03/15/16
    750,000       771,064  
European Investment Bank
2.50%, 05/16/16 (g)
    2,000,000       2,060,620  
4.00%, 02/16/21
    750,000       843,133  
Inter-American Development Bank
1.38%, 10/18/16
    1,000,000       1,014,638  
International Bank for Reconstruction & Development
0.88%, 04/17/17
    1,000,000       1,004,924  
International Finance Corp.
1.13%, 11/23/16
    500,000       503,948  
1.75%, 09/04/18
    600,000       609,819  
1.75%, 09/16/19
    150,000       151,024  
                 
              6,959,170  
                 
Total Foreign Securities
(Cost $14,934,114)     15,258,770  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Preferred Stock 0.1% of net assets
 
Real Estate 0.1%
Duke Realty Corp.
    14,000       350,700  
                 
Total Preferred Stock
(Cost $350,700)     350,700  
         
                 
                 
 
 Other Investment Company 0.6% of net assets
 
Money Market Fund 0.6%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    2,088,365       2,088,365  
                 
Total Other Investment Company
(Cost $2,088,365)     2,088,365  
         
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $385,584,273 and the unrealized appreciation and depreciation were $7,963,796 and ($439,347), respectively, with a net unrealized appreciation of $7,524,449.
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Dates   ($)   ($)
 
 TBA Sale Commitments 1.2% of net assets
 
U.S. Government Agency Mortgages 1.2%
Ginnie Mae TBA
5.00%, 12/01/44 (b)(f)
    2,000,000       2,210,469  
5.50%, 12/01/44 (b)(f)
    2,000,000       2,233,046  
                 
              4,443,515  
                 
Total TBA Sale Commitments
(Proceeds $4,432,813)     4,443,515  
         
 
 
 
6 

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
* Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others.
(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 $6,572,331 or 1.8% of net assets.
(d) Guaranteed by the Republic of Germany.
(e) The rate shown is the 7-day yield.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(g) All or a portion of this security is designated as collateral for delayed-delivery securities.
 
     
REMIC —
  Real Estate Mortgage Investment Conduit
 
 
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 ask 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 may be valued at amortized cost, which approximates market value.
 
  •  Underlying funds: Mutual funds are valued at their respective net asset values (“NAVs”).
 
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.
 
 
 
 7

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
The three levels of the fair value hierarchy are as follows:
 
  •  Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities and futures contracts. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by the underlying fund.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
Assets Valuation Input
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Corporate Bonds1
    $—       $86,677,402       $—       $86,677,402  
Asset-Backed Obligations
    —       1,119,543       —       1,119,543  
Mortgage-Backed Securities1
    —       132,505,317       —       132,505,317  
Commercial Mortgage-Backed Securities
    —       11,849,443       —       11,849,443  
U.S. Government and Government Agencies1
    —       143,259,182       —       143,259,182  
Foreign Securities1
    —       15,258,770       —       15,258,770  
Preferred Stock1
    350,700       —       —       350,700  
Other Investment Company1
    2,088,365       —       —       2,088,365  
                                 
Total
    $2,439,065       $390,669,657       $—       $393,108,722  
                                 
                                 
                                 
Liabilities Valuation Input
                 
 
Other Financial Instruments
                               
TBA Sale Commitments1
    $—       ($4,443,515 )     $—       ($4,443,515 )
 
     
1
  As categorized in Portfolio Holdings.
 
 
 
8 

 

 
 Schwab Intermediate-Term Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
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
Investments in
 		  August 31,
 		  Discounts
 		  Gains
 		  Appreciation
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  November 30,
Securities
 
2014
 
(Premiums)
 
(Losses)
 
(Depreciation)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Corporate Bonds
    $339,525       $—       $—       $—       $—       $—       $—       ($339,525 )     $—  
                                                                         
Total
    $339,525       $—       $—       $—       $—       $—       $—       ($339,525 )     $—  
                                                                         
 
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 transfers out of Level 3 to Level 2. Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market-based data provided by third-party pricing services or other valuation techniques which utilize significant observable inputs. There were no transfers between Level 1 and Level 2 for the period ended November 30, 2014.
 
REG406020NOV14
 
 
 
 9

 

Schwab Investments
Schwab Total Bond Market Fund™
 
Portfolio Holdings as of November 30, 2014 (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   ($)   ($)
 
  28 .8%   Mortgage-Backed Securities     356,066,951       365,192,778  
  23 .1%   Corporate Bonds     282,505,688       293,423,180  
  38 .8%   U.S. Government and Government Agencies     477,832,033       492,152,297  
  2 .0%   Commercial Mortgage-Backed Securities     25,180,820       25,857,909  
  0 .5%   Asset-Backed Obligations     6,679,582       6,654,680  
  5 .2%   Foreign Securities     64,603,268       65,979,679  
  1 .0%   Municipal Bonds     11,272,334       12,409,939  
  3 .6%   Other Investment Companies     44,999,583       44,999,583  
  4 .7%   Short-Term Investments     59,199,234       59,199,234  
 
 
  107 .7%   Total Investments     1,328,339,493       1,365,869,279  
  (7 .7%)   Other Assets and Liabilities, Net             (97,189,840 )
 
 
  100 .0%   Net Assets             1,268,679,439  
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Mortgage-Backed Securities 28.8% of net assets
 
TBA Securities 4.6%
Fannie Mae TBA
2.00%, 12/01/29 (b)(g)
    1,400,000       1,396,664  
2.50%, 12/01/29 (b)(g)
    2,000,000       2,039,335  
3.00%, 12/01/29 (b)(g)
    2,000,000       2,082,812  
3.50%, 12/01/29 to 01/01/45 (b)(g)
    6,600,000       6,911,352  
4.00%, 12/01/44 (b)(g)
    4,100,000       4,377,711  
4.50%, 12/01/44 (b)(g)
    3,100,000       3,369,555  
Freddie Mac TBA
2.00%, 12/01/29 (b)(g)
    600,000       598,547  
2.50%, 12/01/29 (b)(g)
    1,700,000       1,732,672  
3.00%, 12/01/29 to 12/01/44 (b)(g)
    2,000,000       2,032,547  
3.50%, 12/01/29 to 01/01/45 (b)(g)
    8,400,000       8,765,389  
4.00%, 12/01/44 (b)(g)
    1,300,000       1,386,328  
4.50%, 12/01/44 (b)(g)
    3,000,000       3,257,461  
Ginnie Mae TBA
2.50%, 12/01/44 (b)(g)
    500,000       493,945  
3.00%, 12/01/44 to 01/01/45 (b)(g)
    4,600,000       4,704,854  
3.50%, 12/01/44 (b)(g)
    10,700,000       11,238,414  
4.50%, 12/01/44 (b)(g)
    2,500,000       2,736,328  
4.00%, 01/01/45 (b)(g)
    1,000,000       1,069,687  
                 
              58,193,601  
 
U.S. Government Agency Mortgages 24.2%
Fannie Mae
5.50%, 02/01/16 to 06/01/38 (b)(h)
    6,418,249       7,241,702  
5.00%, 12/01/17 to 12/01/39 (b)(h)
    5,772,273       6,376,470  
4.50%, 05/01/18 to 01/01/44 (b)
    9,746,836       10,625,761  
6.50%, 06/01/18 to 11/01/37 (b)(h)
    784,183       899,548  
6.50%, 08/01/18 to 11/01/37 (b)
    691,455       795,966  
5.00%, 05/01/19 to 06/01/42 (b)
    5,378,035       5,967,310  
5.50%, 05/01/23 to 08/01/40 (b)
    940,730       1,059,676  
4.00%, 04/01/24 to 10/01/44 (b)
    30,936,142       33,152,255  
6.00%, 09/01/24 to 05/01/41 (b)
    3,182,353       3,620,795  
3.50%, 01/01/26 to 10/01/44 (b)
    24,311,424       25,480,316  
3.00%, 10/01/26 to 07/01/43 (b)
    25,372,054       25,873,664  
2.50%, 10/01/27 to 02/01/43 (b)
    5,788,372       5,886,442  
2.50%, 07/01/28 (b)(h)
    3,064,891       3,135,833  
2.00%, 08/01/28 to 09/01/28 (b)
    178,153       177,922  
4.50%, 03/01/29 to 04/01/43 (b)(h)
    6,294,963       6,874,108  
1.92%, 03/01/34 (a)(b)
    784,851       838,708  
2.04%, 03/01/35 (a)(b)
    314,901       331,491  
2.54%, 08/01/35 (a)(b)(h)
    1,487,247       1,591,844  
6.00%, 06/01/36 to 07/01/37 (b)(h)
    2,277,012       2,605,119  
7.00%, 04/01/37 (b)
    143,498       161,745  
3.00%, 02/01/43 to 07/01/43 (b)(h)
    6,578,311       6,659,082  
3.50%, 03/01/43 (b)(h)
    3,805,977       3,972,944  
Freddie Mac
6.00%, 04/01/15 to 10/01/38 (b)(h)
    933,931       1,058,122  
4.50%, 06/01/18 to 09/01/43 (b)
    6,403,698       6,984,951  
5.00%, 01/01/19 to 08/01/39 (b)(h)
    2,765,608       3,072,771  
4.50%, 08/01/20 to 08/01/41 (b)(h)
    1,790,586       1,958,678  
5.50%, 08/01/22 to 07/01/40 (b)
    819,621       918,583  
6.00%, 12/01/23 to 02/01/38 (b)
    524,020       598,452  
4.00%, 03/01/24 to 09/01/44 (b)
    14,948,430       15,999,169  
3.00%, 10/01/26 to 09/01/43 (b)
    5,856,798       6,048,586  
2.50%, 08/01/27 to 07/01/43 (b)
    1,624,288       1,649,072  
2.00%, 04/01/28 (b)
    172,175       171,946  
2.50%, 07/01/28 (b)(h)
    3,031,564       3,104,134  
3.00%, 09/01/28 to 06/01/43 (b)(h)
    12,554,050       12,855,972  
3.50%, 07/01/32 to 09/01/44 (b)
    10,698,867       11,163,350  
5.00%, 04/01/34 to 06/01/40 (b)
    2,559,566       2,866,707  
5.50%, 12/01/34 to 02/01/39 (b)(h)
    2,476,140       2,790,742  
6.50%, 10/01/36 to 09/01/39 (b)
    231,143       263,170  
2.02%, 05/01/37 (a)(b)(h)
    802,471       848,327  
4.00%, 01/01/41 (b)(h)
    2,411,075       2,574,850  
Ginnie Mae
4.00%, 06/20/20 to 10/20/44 (b)
    16,287,165       17,513,491  
5.50%, 09/20/23 to 04/15/39 (b)
    1,800,747       2,023,305  
4.50%, 05/15/24 to 09/01/44 (b)
    9,611,674       10,580,870  
3.00%, 02/15/26 to 08/20/44 (b)
    7,409,824       7,634,442  
3.50%, 02/15/26 to 08/20/44 (b)
    8,657,129       9,133,047  
2.50%, 03/20/28 to 02/15/43 (b)
    747,163       765,073  
2.00%, 07/20/28 (b)
    44,377       44,320  
5.00%, 08/15/28 to 07/20/44 (b)
    7,652,692       8,527,687  
1.63%, 04/20/32 (a)(b)(h)
    259,876       270,764  
6.00%, 07/20/34 to 08/15/38 (b)
    1,274,005       1,460,318  
6.50%, 10/20/37 (b)
    293,219       332,796  
5.50%, 11/15/38 to 03/15/40 (b)(h)
    992,547       1,107,796  
3.00%, 10/20/40 to 08/20/44 (a)(b)
    729,924       758,838  
 
 
 
 1

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
4.50%, 05/15/41 (b)(h)
    2,530,123       2,776,528  
2.50%, 07/20/42 (a)(b)
    102,854       106,164  
3.00%, 12/20/42 to 03/15/43 (b)(h)
    5,878,811       6,034,580  
3.50%, 04/20/43 to 01/20/44 (b)(h)
    6,018,160       6,331,803  
4.00%, 09/15/43 (b)(h)
    3,095,055       3,341,072  
                 
              306,999,177  
                 
Total Mortgage-Backed Securities
(Cost $356,066,951)     365,192,778  
         
                 
                 
 
 Corporate Bonds 23.1% of net assets
 
Finance 7.6%
                 
 
Banking 5.1%
Abbey National Treasury Services PLC
4.00%, 04/27/16
    400,000       416,764  
3.05%, 08/23/18
    200,000       208,616  
2.35%, 09/10/19
    250,000       250,831  
American Express Co.
6.15%, 08/28/17
    250,000       281,235  
7.00%, 03/19/18 (h)
    300,000       350,337  
6.80%, 09/01/66 (a)(b)(h)
    500,000       530,000  
American Express Credit Corp.
2.80%, 09/19/16
    500,000       517,706  
1.13%, 06/05/17
    250,000       249,617  
2.25%, 08/15/19
    250,000       251,929  
Bank of America Corp.
6.50%, 08/01/16
    750,000       814,738  
5.30%, 03/15/17
    1,500,000       1,624,713  
6.88%, 04/25/18
    450,000       522,334  
5.65%, 05/01/18 (h)
    400,000       447,880  
6.88%, 11/15/18
    250,000       293,913  
2.65%, 04/01/19
    750,000       761,468  
5.88%, 01/05/21
    500,000       581,745  
5.00%, 05/13/21
    900,000       1,004,818  
3.30%, 01/11/23
    500,000       500,916  
4.00%, 04/01/24
    1,000,000       1,046,865  
6.00%, 10/15/36 (h)
    1,250,000       1,550,482  
4.88%, 04/01/44
    400,000       436,086  
Barclays Bank PLC
5.00%, 09/22/16 (h)
    150,000       160,837  
6.75%, 05/22/19
    300,000       357,566  
BB&T Corp.
3.95%, 03/22/22 (b)(h)
    1,000,000       1,055,332  
BNP Paribas S.A.
3.60%, 02/23/16
    300,000       310,104  
5.00%, 01/15/21 (h)
    250,000       282,834  
3.25%, 03/03/23
    250,000       254,553  
Capital One Bank USA NA
2.40%, 09/05/19 (b)
    500,000       500,515  
3.38%, 02/15/23
    250,000       248,419  
Capital One Financial Corp.
4.75%, 07/15/21
    1,000,000       1,108,797  
Citigroup, Inc.
1.70%, 07/25/16
    300,000       303,081  
4.45%, 01/10/17
    1,500,000       1,595,832  
6.00%, 08/15/17
    200,000       223,201  
4.05%, 07/30/22
    1,500,000       1,562,755  
6.13%, 08/25/36
    500,000       593,742  
5.88%, 01/30/42
    500,000       623,226  
6.68%, 09/13/43
    250,000       317,437  
Credit Suisse USA, Inc.
1.38%, 05/26/17
    500,000       500,948  
5.40%, 01/14/20
    250,000       281,694  
Deutsche Bank AG
6.00%, 09/01/17
    450,000       503,301  
3.70%, 05/30/24
    100,000       102,426  
Fifth Third Bancorp
8.25%, 03/01/38
    200,000       305,591  
First Tennessee Bank NA
2.95%, 12/01/19 (b)
    250,000       251,292  
HSBC Bank USA
5.88%, 11/01/34 (h)
    500,000       624,383  
HSBC Holdings PLC
4.00%, 03/30/22
    500,000       535,746  
7.63%, 05/17/32
    150,000       203,676  
6.50%, 09/15/37
    200,000       255,156  
JPMorgan Chase & Co.
2.60%, 01/15/16
    800,000       817,326  
1.13%, 02/26/16
    250,000       250,784  
3.15%, 07/05/16
    500,000       516,937  
6.00%, 01/15/18
    1,000,000       1,129,429  
4.25%, 10/15/20 (h)
    1,500,000       1,629,009  
3.20%, 01/25/23
    500,000       502,352  
6.40%, 05/15/38
    300,000       393,349  
5.50%, 10/15/40
    100,000       118,903  
JPMorgan Chase Bank NA
6.00%, 10/01/17
    500,000       560,614  
KeyBank NA
1.10%, 11/25/16 (b)
    200,000       200,232  
Lloyds Bank PLC
4.88%, 01/21/16
    400,000       418,452  
4.20%, 03/28/17
    500,000       533,405  
2.30%, 11/27/18
    300,000       303,641  
6.38%, 01/21/21
    500,000       603,869  
Manufacturers & Traders Trust Co.
5.63%, 12/01/21 (a)(b)
    250,000       261,980  
Morgan Stanley
1.75%, 02/25/16
    1,000,000       1,010,621  
5.45%, 01/09/17
    1,500,000       1,626,981  
6.63%, 04/01/18
    200,000       230,201  
7.30%, 05/13/19
    250,000       300,566  
2.38%, 07/23/19
    2,750,000       2,747,371  
4.10%, 05/22/23
    1,000,000       1,020,291  
6.25%, 08/09/26
    750,000       911,808  
6.38%, 07/24/42
    250,000       327,359  
National City Bank
5.80%, 06/07/17
    500,000       553,513  
National City Corp.
6.88%, 05/15/19
    100,000       118,308  
Rabobank Nederland
3.38%, 01/19/17
    350,000       367,475  
4.63%, 12/01/23
    100,000       106,173  
Regions Financial Corp.
2.00%, 05/15/18 (b)
    500,000       497,660  
Royal Bank of Canada
2.20%, 07/27/18
    500,000       508,687  
2.15%, 03/15/19
    1,000,000       1,010,479  
State Street Corp.
2.88%, 03/07/16
    350,000       360,131  
Sumitomo Mitsui Banking Corp.
3.40%, 07/11/24
    300,000       307,201  
Svenska Handelsbanken AB
2.88%, 04/04/17
    350,000       364,403  
The Bank of New York Mellon Corp.
1.97%, 06/20/17 (a)
    500,000       509,904  
The Bank of Nova Scotia
1.38%, 07/15/16
    600,000       605,839  
 
 
 
2 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
4.38%, 01/13/21
    500,000       555,245  
The Bear Stearns Cos. LLC
7.25%, 02/01/18
    200,000       233,297  
The Goldman Sachs Group, Inc.
5.63%, 01/15/17
    750,000       811,427  
6.25%, 09/01/17
    1,000,000       1,120,399  
5.95%, 01/18/18
    600,000       673,634  
2.38%, 01/22/18
    300,000       305,542  
6.15%, 04/01/18
    250,000       283,262  
7.50%, 02/15/19
    1,000,000       1,199,601  
3.85%, 07/08/24 (b)
    1,000,000       1,025,392  
5.95%, 01/15/27
    450,000       520,507  
6.75%, 10/01/37
    600,000       744,430  
4.80%, 07/08/44 (b)
    750,000       788,324  
The PNC Financial Services Group, Inc.
3.90%, 04/29/24 (b)
    500,000       510,641  
The Royal Bank of Scotland PLC
4.38%, 03/16/16
    500,000       521,475  
The Toronto-Dominion Bank
2.13%, 07/02/19
    500,000       501,812  
UBS AG
5.88%, 12/20/17
    850,000       956,906  
5.75%, 04/25/18
    1,000,000       1,131,014  
2.38%, 08/14/19
    1,000,000       1,008,353  
US Bancorp
2.20%, 11/15/16 (b)
    250,000       256,308  
Wells Fargo & Co.
1.40%, 09/08/17
    150,000       150,538  
5.63%, 12/11/17 (h)
    700,000       784,281  
3.45%, 02/13/23
    800,000       804,593  
3.30%, 09/09/24
    1,000,000       1,010,078  
5.38%, 02/07/35
    500,000       588,905  
5.38%, 11/02/43
    625,000       707,041  
                 
              64,623,695  
                 
 
Brokerage 0.2%
BlackRock, Inc.
5.00%, 12/10/19 (h)
    300,000       342,137  
Jefferies Group LLC
5.50%, 03/15/16
    1,000,000       1,058,880  
5.13%, 04/13/18
    250,000       272,105  
6.45%, 06/08/27
    75,000       85,347  
Nomura Holdings, Inc.
4.13%, 01/19/16
    250,000       258,514  
6.70%, 03/04/20
    200,000       238,628  
                 
              2,255,611  
                 
 
Finance Company 0.5%
GATX Corp.
5.20%, 03/15/44 (b)
    150,000       163,924  
GE Capital Trust I
6.38%, 11/15/67 (a)(b)
    250,000       270,625  
General Electric Capital Corp.
5.00%, 01/08/16
    650,000       681,929  
1.50%, 07/12/16
    500,000       506,965  
2.30%, 04/27/17
    500,000       515,045  
5.63%, 09/15/17
    200,000       223,537  
5.63%, 05/01/18
    650,000       736,816  
2.30%, 01/14/19
    250,000       255,667  
4.38%, 09/16/20
    300,000       330,856  
5.30%, 02/11/21
    150,000       171,499  
6.75%, 03/15/32
    300,000       403,398  
5.88%, 01/14/38
    250,000       311,173  
6.88%, 01/10/39
    150,000       208,630  
HSBC Finance Capital Trust IX
5.91%, 11/30/35 (a)(b)
    1,000,000       1,022,800  
HSBC Finance Corp.
5.50%, 01/19/16
    100,000       105,326  
International Lease Finance Corp.
7.13%, 09/01/18 (c)
    200,000       227,500  
Synchrony Financial
3.75%, 08/15/21 (b)
    250,000       256,608  
4.25%, 08/15/24 (b)
    250,000       255,689  
                 
              6,647,987  
                 
 
Insurance 1.2%
ACE INA Holdings, Inc.
5.80%, 03/15/18
    250,000       283,220  
2.70%, 03/13/23
    500,000       490,190  
Aetna, Inc.
3.95%, 09/01/20 (h)
    250,000       267,596  
Aflac, Inc.
3.63%, 06/15/23
    250,000       255,740  
3.63%, 11/15/24
    500,000       508,622  
American International Group, Inc.
5.60%, 10/18/16 (h)
    925,000       1,001,701  
6.40%, 12/15/20
    59,000       70,891  
6.25%, 05/01/36
    250,000       319,262  
8.18%, 05/15/68 (a)(b)
    100,000       137,500  
Assurant, Inc.
6.75%, 02/15/34
    200,000       248,259  
Berkshire Hathaway Finance Corp.
5.40%, 05/15/18
    1,000,000       1,128,605  
4.25%, 01/15/21 (h)
    500,000       553,106  
Cigna Corp.
2.75%, 11/15/16 (h)
    450,000       464,788  
5.38%, 02/15/42 (b)
    150,000       172,995  
CNA Financial Corp.
7.35%, 11/15/19
    325,000       392,542  
Lincoln National Corp.
4.00%, 09/01/23
    200,000       208,714  
Marsh & McLennan Cos., Inc.
4.80%, 07/15/21 (b)
    100,000       111,474  
MetLife, Inc.
6.82%, 08/15/18
    450,000       528,563  
4.88%, 11/13/43
    250,000       277,049  
Principal Financial Group, Inc.
6.05%, 10/15/36
    300,000       374,329  
Prudential Financial, Inc.
4.50%, 11/16/21
    750,000       820,808  
The Allstate Corp.
4.50%, 06/15/43
    200,000       213,955  
The Chubb Corp.
6.00%, 05/11/37
    100,000       129,549  
The Hartford Financial Services Group, Inc.
6.30%, 03/15/18
    200,000       227,899  
6.00%, 01/15/19
    100,000       114,338  
5.13%, 04/15/22
    1,000,000       1,127,591  
6.10%, 10/01/41
    500,000       630,396  
The Travelers Co., Inc.
5.90%, 06/02/19
    300,000       350,411  
6.75%, 06/20/36
    150,000       207,401  
UnitedHealth Group, Inc.
1.40%, 10/15/17
    100,000       100,569  
2.75%, 02/15/23 (b)
    150,000       147,516  
5.80%, 03/15/36
    350,000       427,495  
Voya Financial, Inc.
2.90%, 02/15/18
    200,000       205,885  
5.50%, 07/15/22
    500,000       565,663  
WellPoint, Inc.
2.25%, 08/15/19
    300,000       298,845  
 
 
 
 3

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
3.30%, 01/15/23
    500,000       500,259  
3.50%, 08/15/24 (b)
    250,000       251,425  
4.65%, 08/15/44 (b)
    500,000       517,734  
                 
              14,632,885  
                 
 
Real Estate Investment Trust 0.6%
Boston Properties LP
5.63%, 11/15/20 (b)
    150,000       172,641  
3.80%, 02/01/24 (b)
    150,000       153,780  
Brandywine Operating Partnership LP
3.95%, 02/15/23 (b)
    250,000       252,229  
Digital Realty Trust LP
5.88%, 02/01/20
    250,000       282,249  
Duke Realty LP
4.38%, 06/15/22 (b)
    400,000       425,283  
3.75%, 12/01/24 (b)
    100,000       100,498  
ERP Operating LP
4.63%, 12/15/21 (b)
    500,000       552,169  
Essex Portfolio LP
3.88%, 05/01/24 (b)
    100,000       102,612  
Federal Realty Investment Trust
4.50%, 12/01/44 (b)
    650,000       663,507  
HCP, Inc.
6.70%, 01/30/18
    400,000       460,747  
Health Care REIT, Inc.
4.13%, 04/01/19 (b)
    200,000       214,486  
4.50%, 01/15/24 (b)
    150,000       158,172  
Kilroy Realty LP
3.80%, 01/15/23 (b)
    200,000       203,148  
4.25%, 08/15/29 (b)
    300,000       302,616  
Kimco Realty Corp.
5.78%, 03/15/16
    500,000       530,862  
4.30%, 02/01/18 (b)
    250,000       269,384  
3.20%, 05/01/21 (b)
    150,000       152,110  
Omega Healthcare Investors, Inc.
4.95%, 04/01/24 (b)
    650,000       669,175  
ProLogis LP
2.75%, 02/15/19 (b)
    150,000       153,130  
4.25%, 08/15/23 (b)
    200,000       211,508  
Regency Centers LP
4.80%, 04/15/21
    150,000       165,457  
Simon Property Group LP
2.80%, 01/30/17 (b)
    200,000       206,991  
2.75%, 02/01/23 (b)
    500,000       490,333  
3.75%, 02/01/24 (b)
    500,000       524,389  
Ventas Realty LP
4.75%, 06/01/21 (b)
    100,000       109,254  
4.25%, 03/01/22 (b)
    500,000       525,975  
                 
              8,052,705  
                 
              96,212,883  
 
Industrial 13.7%
                 
 
Basic Industry 1.2%
Agrium, Inc.
6.75%, 01/15/19
    250,000       291,027  
6.13%, 01/15/41 (b)
    150,000       174,359  
Airgas, Inc.
1.65%, 02/15/18 (b)
    350,000       347,923  
3.65%, 07/15/24 (b)
    300,000       306,726  
Barrick Gold Corp.
6.95%, 04/01/19
    500,000       575,698  
4.10%, 05/01/23
    250,000       244,960  
Barrick North America Finance LLC
4.40%, 05/30/21
    500,000       515,843  
5.75%, 05/01/43
    500,000       505,327  
Barrick PD Australia Finance Pty Ltd.
4.95%, 01/15/20
    250,000       270,777  
BHP Billiton Finance (USA) Ltd.
3.25%, 11/21/21 (h)
    700,000       725,254  
4.13%, 02/24/42 (h)
    250,000       249,636  
CF Industries, Inc.
7.13%, 05/01/20 (h)
    150,000       180,883  
Domtar Corp.
10.75%, 06/01/17
    250,000       297,983  
4.40%, 04/01/22 (b)
    100,000       103,145  
Eastman Chemical Co.
3.60%, 08/15/22 (b)
    100,000       102,440  
3.80%, 03/15/25 (b)
    250,000       256,127  
Ecolab, Inc.
3.00%, 12/08/16
    200,000       207,394  
Freeport-McMoran Oil & Gas LLC
6.75%, 02/01/22 (b)
    228,000       255,075  
Freeport-McMoRan, Inc.
2.15%, 03/01/17
    500,000       504,407  
Glencore Canada Corp.
6.20%, 06/15/35
    250,000       269,963  
International Paper Co.
7.50%, 08/15/21
    250,000       312,743  
7.30%, 11/15/39
    300,000       392,889  
Kinross Gold Corp.
5.13%, 09/01/21 (b)
    150,000       144,209  
5.95%, 03/15/24 (b)(c)
    150,000       143,607  
Lubrizol Corp.
8.88%, 02/01/19
    200,000       252,100  
LYB International Finance BV
4.00%, 07/15/23
    150,000       157,388  
5.25%, 07/15/43
    500,000       539,392  
LyondellBasell Industries N.V.
5.00%, 04/15/19 (b)
    500,000       550,974  
Monsanto Co.
2.75%, 04/15/16
    100,000       102,717  
4.20%, 07/15/34 (b)
    750,000       775,612  
Newmont Mining Corp.
4.88%, 03/15/42 (b)
    250,000       212,671  
Packaging Corp of America
3.90%, 06/15/22 (b)
    100,000       102,660  
Rio Tinto Finance (USA) Ltd.
3.50%, 11/02/20
    250,000       260,491  
7.13%, 07/15/28
    200,000       262,421  
Rio Tinto Finance (USA) PLC
2.25%, 12/14/18 (b)
    500,000       503,527  
4.75%, 03/22/42 (b)
    500,000       505,823  
Rock-Tenn Co.
4.45%, 03/01/19
    250,000       267,668  
Teck Resources Ltd.
4.75%, 01/15/22 (b)
    300,000       306,181  
The Dow Chemical Co.
4.25%, 11/15/20 (b)
    1,000,000       1,082,282  
7.38%, 11/01/29
    325,000       440,926  
4.25%, 10/01/34 (b)
    150,000       149,518  
The Mosaic Co.
4.25%, 11/15/23 (b)
    150,000       157,181  
The Valspar Corp.
4.20%, 01/15/22 (b)
    150,000       160,723  
Vale Overseas Ltd.
4.38%, 01/11/22
    375,000       376,354  
 
 
 
4 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Vale S.A.
5.63%, 09/11/42
    500,000       484,275  
                 
              15,029,279  
                 
 
Capital Goods 1.1%
Caterpillar Financial Services Corp.
1.25%, 11/06/17
    700,000       702,564  
7.15%, 02/15/19
    500,000       603,069  
Caterpillar, Inc.
3.80%, 08/15/42
    250,000       243,684  
Deere & Co.
5.38%, 10/16/29
    550,000       672,515  
Eaton Corp.
1.50%, 11/02/17
    200,000       200,299  
2.75%, 11/02/22
    1,250,000       1,229,086  
4.00%, 11/02/32
    150,000       151,075  
General Electric Co.
5.25%, 12/06/17
    250,000       277,564  
3.38%, 03/11/24
    150,000       155,767  
4.13%, 10/09/42
    250,000       257,184  
4.50%, 03/11/44
    250,000       272,179  
Honeywell International, Inc.
5.00%, 02/15/19
    150,000       170,655  
5.38%, 03/01/41
    250,000       310,148  
Ingersoll-Rand Global Holding Co., Ltd.
6.88%, 08/15/18
    150,000       175,238  
Ingersoll-Rand Luxembourg Finance S.A.
2.63%, 05/01/20 (b)
    200,000       200,726  
John Deere Capital Corp.
1.55%, 12/15/17
    500,000       501,949  
1.70%, 01/15/20
    150,000       146,484  
Joy Global, Inc.
6.00%, 11/15/16
    150,000       163,216  
L-3 Communications Corp.
4.95%, 02/15/21 (b)
    250,000       274,287  
Lockheed Martin Corp.
6.15%, 09/01/36
    200,000       256,185  
5.50%, 11/15/39
    100,000       120,790  
Northrop Grumman Corp.
1.75%, 06/01/18
    350,000       348,743  
Owens Corning
4.20%, 12/15/22 (b)
    500,000       506,018  
Packaging Corp. of America
3.65%, 09/15/24 (b)
    250,000       249,707  
Raytheon Co.
3.13%, 10/15/20
    200,000       208,539  
4.88%, 10/15/40
    150,000       171,194  
Republic Services, Inc.
3.80%, 05/15/18
    1,000,000       1,065,339  
4.75%, 05/15/23 (b)
    500,000       553,123  
Textron, Inc.
5.95%, 09/21/21 (b)
    500,000       582,764  
The Boeing Co.
3.75%, 11/20/16
    300,000       317,706  
6.88%, 03/15/39 (h)
    100,000       144,722  
United Technologies Corp.
1.80%, 06/01/17
    250,000       254,683  
6.13%, 02/01/19
    500,000       585,725  
3.10%, 06/01/22
    750,000       770,038  
4.50%, 06/01/42
    700,000       759,444  
Valmont Industries, Inc.
5.00%, 10/01/44 (b)
    300,000       298,423  
Waste Management, Inc.
7.00%, 07/15/28
    200,000       264,538  
                 
              14,165,370  
                 
 
Communications 2.5%
21st Century Fox America, Inc.
6.90%, 03/01/19
    500,000       593,000  
4.00%, 10/01/23
    300,000       317,875  
6.40%, 12/15/35
    250,000       323,273  
6.15%, 03/01/37
    450,000       564,406  
America Movil, S.A.B. de CV
2.38%, 09/08/16
    500,000       511,255  
5.00%, 10/16/19 (h)
    200,000       224,508  
4.38%, 07/16/42
    300,000       292,545  
American Tower Corp.
3.40%, 02/15/19
    500,000       512,663  
5.00%, 02/15/24
    500,000       533,823  
AT&T, Inc.
0.90%, 02/12/16
    500,000       499,716  
3.00%, 02/15/22 (h)
    350,000       348,895  
6.15%, 09/15/34
    300,000       362,963  
5.35%, 09/01/40
    250,000       271,595  
5.55%, 08/15/41
    100,000       112,129  
4.80%, 06/15/44 (b)
    600,000       612,066  
CBS Corp.
5.75%, 04/15/20 (h)
    275,000       314,835  
4.90%, 08/15/44 (b)
    100,000       101,814  
Comcast Corp.
5.90%, 03/15/16
    600,000       639,961  
5.70%, 07/01/19
    200,000       231,771  
3.38%, 02/15/25 (b)
    350,000       357,004  
6.50%, 11/15/35
    175,000       231,925  
Deutsche Telekom International Finance BV
6.00%, 07/08/19
    400,000       466,552  
DIRECTV Holdings LLC
3.13%, 02/15/16
    500,000       513,560  
5.20%, 03/15/20
    100,000       112,509  
3.80%, 03/15/22
    500,000       513,478  
4.45%, 04/01/24 (b)
    150,000       158,209  
6.00%, 08/15/40 (b)
    350,000       396,241  
Discovery Communications LLC
3.25%, 04/01/23
    300,000       292,942  
Grupo Televisa S.A.B.
6.00%, 05/15/18
    1,500,000       1,692,270  
5.00%, 05/13/45
    400,000       407,616  
Historic TW, Inc.
6.88%, 06/15/18
    500,000       582,254  
NBCUniversal Media LLC
5.15%, 04/30/20
    250,000       286,904  
5.95%, 04/01/41
    150,000       189,780  
4.45%, 01/15/43
    250,000       263,068  
Omnicom Group, Inc.
3.65%, 11/01/24 (b)
    250,000       251,648  
Orange S.A.
2.75%, 02/06/19
    150,000       153,775  
9.00%, 03/01/31 (a)
    200,000       302,948  
5.38%, 01/13/42
    100,000       112,374  
Pacific Bell Telephone Co.
7.13%, 03/15/26
    750,000       961,981  
Qwest Corp.
6.75%, 12/01/21
    300,000       346,170  
Rogers Communications, Inc.
3.00%, 03/15/23 (b)
    400,000       391,957  
TCI Communication, Inc.
7.13%, 02/15/28
    350,000       473,507  
Telefonica Emisiones S.A.U.
6.42%, 06/20/16
    350,000       378,192  
5.13%, 04/27/20
    100,000       111,823  
5.46%, 02/16/21
    500,000       566,341  
 
 
 
 5

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
7.05%, 06/20/36
    100,000       130,845  
Telefonos de Mexico, S.A.B. de CV
5.50%, 11/15/19
    1,250,000       1,431,312  
The Walt Disney Co.
5.63%, 09/15/16
    300,000       326,625  
4.13%, 12/01/41
    100,000       105,567  
Time Warner Cable, Inc.
5.85%, 05/01/17
    600,000       660,408  
8.25%, 04/01/19
    200,000       247,564  
4.50%, 09/15/42 (b)
    250,000       252,021  
Time Warner Entertainment Co. LP
8.38%, 07/15/33
    350,000       519,240  
Time Warner, Inc.
2.10%, 06/01/19
    300,000       297,368  
4.88%, 03/15/20
    400,000       442,418  
3.55%, 06/01/24 (b)
    250,000       250,926  
6.50%, 11/15/36
    250,000       314,248  
Verizon Communications, Inc.
2.50%, 09/15/16
    206,000       211,872  
1.35%, 06/09/17
    250,000       250,287  
3.65%, 09/14/18
    350,000       371,753  
4.50%, 09/15/20
    1,000,000       1,095,378  
3.00%, 11/01/21 (b)
    200,000       200,907  
5.15%, 09/15/23
    500,000       562,511  
4.15%, 03/15/24 (b)
    200,000       210,808  
3.50%, 11/01/24 (b)
    200,000       200,349  
7.75%, 12/01/30
    250,000       348,165  
6.40%, 09/15/33
    500,000       620,015  
4.40%, 11/01/34 (b)
    1,000,000       996,526  
5.85%, 09/15/35
    650,000       766,286  
6.55%, 09/15/43
    1,000,000       1,293,548  
Viacom, Inc.
2.50%, 12/15/16
    300,000       307,365  
4.25%, 09/01/23 (b)
    150,000       156,590  
Vodafone Group PLC
4.63%, 07/15/18
    500,000       545,534  
6.15%, 02/27/37
    250,000       297,960  
                 
              31,298,517  
                 
 
Consumer Cyclical 1.5%
Alibaba Group Holding Ltd.
2.50%, 11/28/19 (b)(c)
    1,000,000       999,692  
Amazon.com, Inc.
2.50%, 11/29/22 (b)
    200,000       190,966  
CVS Health Corp.
6.13%, 08/15/16
    1,000,000       1,086,549  
2.25%, 08/12/19 (b)
    250,000       250,034  
4.75%, 05/18/20 (b)
    350,000       395,103  
2.75%, 12/01/22 (b)
    1,000,000       979,170  
3.38%, 08/12/24 (b)
    250,000       251,736  
Delphi Corp.
6.13%, 05/15/21 (b)
    700,000       763,000  
4.15%, 03/15/24 (b)
    500,000       519,915  
eBay, Inc.
2.60%, 07/15/22 (b)
    300,000       284,614  
Ford Motor Co.
7.45%, 07/16/31
    100,000       135,344  
4.75%, 01/15/43
    750,000       778,043  
Ford Motor Credit Co. LLC
6.63%, 08/15/17
    750,000       843,925  
5.00%, 05/15/18
    350,000       383,158  
4.25%, 09/20/22
    350,000       370,981  
Johnson Controls, Inc.
3.63%, 07/02/24 (b)
    300,000       303,949  
4.63%, 07/02/44 (b)
    300,000       303,419  
Kohl’s Corp.
4.00%, 11/01/21 (b)
    500,000       522,765  
Lowe’s Cos., Inc.
3.12%, 04/15/22 (b)
    150,000       154,459  
4.65%, 04/15/42 (b)
    100,000       109,270  
Macy’s Retail Holdings, Inc.
2.88%, 02/15/23 (b)
    500,000       483,471  
6.90%, 04/01/29
    200,000       255,741  
5.13%, 01/15/42 (b)
    250,000       268,946  
Marriott International, Inc.
6.20%, 06/15/16
    167,000       179,973  
3.00%, 03/01/19 (b)
    200,000       206,190  
3.13%, 10/15/21 (b)
    200,000       202,500  
McDonald’s Corp.
2.63%, 01/15/22
    400,000       398,609  
3.70%, 02/15/42
    200,000       185,905  
NIKE, Inc.
2.25%, 05/01/23 (b)
    200,000       193,893  
3.63%, 05/01/43 (b)
    100,000       97,762  
Nordstrom, Inc.
6.25%, 01/15/18
    100,000       113,600  
QVC, Inc.
5.45%, 08/15/34 (b)(c)
    300,000       291,386  
Starbucks Corp.
6.25%, 08/15/17
    500,000       566,626  
3.85%, 10/01/23 (b)
    300,000       318,721  
Starwood Hotels & Resorts Worldwide, Inc.
4.50%, 10/01/34 (b)
    250,000       250,023  
Target Corp.
3.50%, 07/01/24
    400,000       412,535  
The Gap, Inc.
5.95%, 04/12/21 (b)
    100,000       114,105  
The Home Depot, Inc.
3.75%, 02/15/24 (b)
    150,000       159,941  
5.88%, 12/16/36
    500,000       642,343  
4.88%, 02/15/44 (b)
    150,000       173,300  
Toyota Motor Credit Corp.
2.80%, 01/11/16
    500,000       512,943  
3.40%, 09/15/21
    100,000       105,400  
VF Corp.
6.45%, 11/01/37
    50,000       66,149  
Wal-Mart Stores, Inc.
5.80%, 02/15/18
    300,000       343,123  
3.25%, 10/25/20
    500,000       527,830  
5.88%, 04/05/27
    275,000       352,778  
5.25%, 09/01/35
    1,100,000       1,312,683  
6.50%, 08/15/37
    150,000       204,521  
6.20%, 04/15/38
    350,000       462,744  
Wyndham Worldwide Corp.
5.63%, 03/01/21
    250,000       279,126  
                 
              19,308,959  
                 
 
Consumer Non-Cyclical 3.1%
AbbVie, Inc.
2.00%, 11/06/18
    500,000       500,626  
4.40%, 11/06/42
    300,000       299,338  
Altria Group, Inc.
9.70%, 11/10/18
    111,000       142,627  
4.75%, 05/05/21
    150,000       166,534  
2.85%, 08/09/22
    200,000       194,743  
4.00%, 01/31/24
    600,000       625,762  
5.38%, 01/31/44
    250,000       279,895  
AmerisourceBergen Corp.
4.88%, 11/15/19
    250,000       279,934  
 
 
 
6 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Amgen, Inc.
2.50%, 11/15/16 (h)
    250,000       256,743  
5.70%, 02/01/19 (h)
    500,000       566,403  
3.63%, 05/15/22 (b)
    150,000       154,964  
Anheuser-Busch InBev Finance, Inc.
1.13%, 01/27/17
    150,000       150,906  
2.15%, 02/01/19
    300,000       301,586  
3.70%, 02/01/24
    300,000       312,820  
4.63%, 02/01/44
    650,000       692,343  
Anheuser-Busch InBev Worldwide, Inc.
1.38%, 07/15/17
    350,000       351,146  
5.00%, 04/15/20
    450,000       507,568  
4.38%, 02/15/21 (h)
    150,000       164,216  
Archer-Daniels-Midland Co.
5.45%, 03/15/18
    150,000       168,902  
AstraZeneca PLC
6.45%, 09/15/37
    500,000       664,477  
Baxter International, Inc.
4.50%, 06/15/43 (b)
    200,000       210,724  
Bristol-Myers Squibb Co.
3.25%, 08/01/42
    150,000       130,170  
Bunge Ltd. Finance Corp.
8.50%, 06/15/19
    100,000       124,293  
Cardinal Health, Inc.
3.20%, 06/15/22
    500,000       502,370  
3.20%, 03/15/23
    250,000       248,574  
4.60%, 03/15/43
    100,000       105,356  
Celgene Corp.
3.63%, 05/15/24 (b)
    1,000,000       1,016,968  
4.63%, 05/15/44 (b)
    1,000,000       1,026,057  
ConAgra Foods, Inc.
3.20%, 01/25/23 (b)
    724,000       712,297  
4.65%, 01/25/43 (b)
    165,000       167,477  
Covidien International Finance S.A.
6.00%, 10/15/17
    400,000       451,188  
Delhaize Group S.A.
5.70%, 10/01/40
    500,000       530,210  
Diageo Capital PLC
5.75%, 10/23/17
    1,000,000       1,122,652  
1.13%, 04/29/18
    100,000       98,704  
5.88%, 09/30/36
    150,000       187,361  
Dr Pepper Snapple Group, Inc.
3.20%, 11/15/21 (b)
    500,000       511,850  
Express Scripts Holding Co.
2.65%, 02/15/17
    250,000       257,447  
4.75%, 11/15/21
    450,000       497,912  
Forest Laboratories, Inc.
4.88%, 02/15/21 (c)
    500,000       540,056  
General Mills, Inc.
5.65%, 02/15/19
    500,000       571,924  
Gilead Sciences, Inc.
4.40%, 12/01/21 (b)
    500,000       551,821  
3.50%, 02/01/25 (b)
    500,000       516,113  
5.65%, 12/01/41 (b)
    1,000,000       1,209,794  
4.50%, 02/01/45 (b)
    250,000       262,893  
GlaxoSmithKline Capital, Inc.
6.38%, 05/15/38
    400,000       524,060  
Hasbro, Inc.
6.30%, 09/15/17
    100,000       111,647  
Johnson & Johnson
4.38%, 12/05/33 (b)
    100,000       112,229  
4.85%, 05/15/41
    200,000       236,942  
Kellogg Co.
7.45%, 04/01/31
    250,000       335,888  
Kimberly-Clark Corp.
6.13%, 08/01/17
    500,000       564,896  
7.50%, 11/01/18
    325,000       394,287  
5.30%, 03/01/41
    200,000       242,604  
Koninklijke Philips N.V.
5.00%, 03/15/42
    300,000       327,724  
Kraft Foods Group, Inc.
5.38%, 02/10/20
    392,000       448,297  
3.50%, 06/06/22
    1,000,000       1,034,154  
5.00%, 06/04/42
    300,000       325,594  
Lorillard Tobacco Co.
2.30%, 08/21/17
    100,000       101,219  
6.88%, 05/01/20
    100,000       118,962  
McKesson Corp.
2.28%, 03/15/19
    650,000       651,507  
Medtronic, Inc.
3.13%, 03/15/22 (b)
    250,000       252,383  
3.63%, 03/15/24 (b)
    650,000       667,211  
Merck & Co., Inc.
3.88%, 01/15/21 (b)
    700,000       758,035  
Merck Sharp & Dohme Corp.
5.00%, 06/30/19
    200,000       226,230  
Molson Coors Brewing Co.
3.50%, 05/01/22
    100,000       101,509  
Mondelez International, Inc.
4.13%, 02/09/16 (h)
    750,000       778,689  
2.25%, 02/01/19 (b)
    200,000       201,427  
Mylan, Inc.
1.80%, 06/24/16
    200,000       201,992  
2.60%, 06/24/18
    300,000       305,771  
4.20%, 11/29/23 (b)
    350,000       363,805  
5.40%, 11/29/43 (b)
    200,000       218,078  
Newell Rubbermaid, Inc.
2.05%, 12/01/17
    150,000       150,446  
4.70%, 08/15/20
    200,000       217,028  
PepsiCo, Inc.
2.25%, 01/07/19 (b)
    200,000       204,509  
4.50%, 01/15/20
    250,000       279,132  
4.88%, 11/01/40
    500,000       552,662  
Perrigo Finance PLC
3.90%, 12/15/24 (b)(g)
    500,000       504,928  
Pfizer, Inc.
6.20%, 03/15/19
    500,000       585,628  
7.20%, 03/15/39
    250,000       362,302  
Philip Morris International, Inc.
1.13%, 08/21/17
    600,000       597,247  
4.50%, 03/26/20
    350,000       389,566  
2.50%, 08/22/22
    100,000       97,596  
6.38%, 05/16/38
    250,000       321,616  
Quest Diagnostics, Inc.
6.40%, 07/01/17
    500,000       561,481  
4.70%, 04/01/21
    750,000       819,687  
Reynolds American, Inc.
3.25%, 11/01/22
    100,000       98,326  
4.75%, 11/01/42
    150,000       145,843  
Safeway, Inc.
7.25%, 02/01/31 (i)
    250,000       249,118  
Sanofi
2.63%, 03/29/16
    800,000       823,147  
1.25%, 04/10/18
    250,000       248,925  
Teva Pharmaceutical Finance Co. LLC
6.15%, 02/01/36
    250,000       303,053  
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21
    200,000       205,948  
 
 
 
 7

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
The Coca-Cola Co.
3.15%, 11/15/20 (h)
    200,000       210,694  
2.50%, 04/01/23
    750,000       735,359  
The Kroger Co.
3.85%, 08/01/23 (b)
    100,000       103,796  
5.40%, 07/15/40 (b)
    50,000       56,686  
The Procter & Gamble Co.
4.70%, 02/15/19
    400,000       448,062  
Thermo Fisher Scientific, Inc.
3.20%, 03/01/16
    100,000       102,867  
4.15%, 02/01/24 (b)
    300,000       317,118  
5.30%, 02/01/44 (b)
    300,000       340,678  
Unilever Capital Corp.
4.25%, 02/10/21
    700,000       779,178  
Zimmer Holdings, Inc.
5.75%, 11/30/39
    400,000       474,462  
Zoetis, Inc.
4.70%, 02/01/43 (b)
    100,000       98,327  
                 
              39,326,299  
                 
 
Energy 2.6%
Anadarko Petroleum Corp.
6.38%, 09/15/17
    250,000       280,925  
6.45%, 09/15/36 (h)
    100,000       122,232  
Apache Corp.
5.10%, 09/01/40 (b)
    250,000       255,455  
Baker Hughes, Inc.
7.50%, 11/15/18 (h)
    100,000       120,253  
BP Capital Markets PLC
1.85%, 05/05/17 (h)
    150,000       152,280  
2.24%, 05/10/19
    250,000       251,902  
4.50%, 10/01/20
    300,000       327,295  
3.56%, 11/01/21
    600,000       621,567  
Buckeye Partners LP
4.35%, 10/15/24 (b)
    200,000       201,287  
5.60%, 10/15/44 (b)
    300,000       298,066  
Canadian Natural Resources Ltd.
5.70%, 05/15/17
    250,000       275,562  
3.90%, 02/01/25 (b)
    500,000       509,747  
5.85%, 02/01/35
    250,000       286,692  
6.25%, 03/15/38
    200,000       239,786  
CenterPoint Energy Resources Corp.
5.85%, 01/15/41 (b)
    100,000       125,243  
Chevron Corp.
3.19%, 06/24/23 (b)
    500,000       514,454  
Continental Resources, Inc.
5.00%, 09/15/22 (b)
    250,000       257,805  
4.90%, 06/01/44 (b)
    100,000       92,066  
Devon Energy Corp.
2.25%, 12/15/18 (b)
    300,000       300,944  
Dominion Gas Holdings LLC
4.80%, 11/01/43 (b)
    400,000       429,878  
El Paso Pipeline Partners Operating Co., LLC
4.30%, 05/01/24 (b)
    450,000       452,133  
4.70%, 11/01/42 (b)
    100,000       90,880  
Encana Corp.
6.50%, 05/15/19
    400,000       466,492  
Energy Transfer Partners LP
9.00%, 04/15/19
    187,000       235,746  
5.20%, 02/01/22 (b)
    250,000       273,500  
6.63%, 10/15/36
    200,000       231,383  
6.50%, 02/01/42 (b)
    100,000       114,452  
5.15%, 02/01/43 (b)
    150,000       149,026  
Ensco PLC
4.70%, 03/15/21
    350,000       367,866  
4.50%, 10/01/24 (b)
    150,000       150,835  
5.75%, 10/01/44 (b)
    850,000       889,410  
Enterprise Products Operating LLC
2.55%, 10/15/19 (b)
    100,000       100,261  
3.90%, 02/15/24 (b)
    100,000       103,644  
3.75%, 02/15/25 (b)
    500,000       509,230  
6.65%, 10/15/34
    250,000       326,279  
4.85%, 03/15/44 (b)
    900,000       943,973  
EOG Resources, Inc.
2.45%, 04/01/20 (b)
    300,000       300,867  
Freeport-McMoran Oil & Gas LLC
6.50%, 11/15/20 (b)
    1,325,000       1,444,250  
Halliburton Co.
2.00%, 08/01/18 (b)
    300,000       301,171  
7.45%, 09/15/39
    225,000       311,527  
Hess Corp.
8.13%, 02/15/19
    300,000       363,774  
7.30%, 08/15/31 (h)
    300,000       381,692  
5.60%, 02/15/41
    100,000       110,517  
Husky Energy, Inc.
7.25%, 12/15/19
    163,000       195,335  
4.00%, 04/15/24 (b)
    1,000,000       1,016,489  
Kerr-McGee Corp.
6.95%, 07/01/24
    250,000       309,570  
Kinder Morgan Energy Partners LP
6.85%, 02/15/20
    400,000       469,581  
6.95%, 01/15/38
    500,000       583,725  
5.00%, 08/15/42 (b)
    200,000       189,279  
5.40%, 09/01/44 (b)
    100,000       100,087  
Kinder Morgan, Inc.
3.05%, 12/01/19 (b)
    250,000       251,632  
4.30%, 06/01/25 (b)
    250,000       252,095  
5.55%, 06/01/45 (b)
    700,000       713,952  
Magellan Midstream Partners LP
4.20%, 12/01/42 (b)
    250,000       235,335  
Marathon Oil Corp.
2.80%, 11/01/22 (b)
    200,000       190,812  
Marathon Petroleum Corp.
3.63%, 09/15/24 (b)
    1,000,000       992,317  
6.50%, 03/01/41 (b)
    250,000       296,484  
Nabors Industries, Inc.
2.35%, 09/15/16
    200,000       202,261  
6.15%, 02/15/18
    450,000       502,448  
5.10%, 09/15/23 (b)
    300,000       312,227  
Nexen Energy ULC
6.20%, 07/30/19
    125,000       145,272  
5.88%, 03/10/35
    300,000       351,203  
Nisource Finance Corp.
5.25%, 02/15/43 (b)
    300,000       338,305  
Noble Energy, Inc.
8.25%, 03/01/19
    100,000       122,757  
6.00%, 03/01/41 (b)
    400,000       457,202  
Occidental Petroleum Corp.
4.13%, 06/01/16
    200,000       209,102  
Phillips 66
5.88%, 05/01/42
    150,000       173,330  
Plains All American Pipeline LP
5.75%, 01/15/20
    500,000       575,592  
Shell International Finance BV
5.20%, 03/22/17
    500,000       547,773  
3.63%, 08/21/42
    250,000       236,633  
Southern Natural Gas Co., LLC
5.90%, 04/01/17 (c)(h)
    150,000       164,797  
Spectra Energy Partners LP
2.95%, 09/25/18 (b)
    300,000       309,568  
 
 
 
8 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Suncor Energy, Inc.
6.10%, 06/01/18
    500,000       572,014  
5.95%, 12/01/34
    250,000       303,102  
6.50%, 06/15/38
    500,000       644,783  
Talisman Energy, Inc.
7.75%, 06/01/19
    250,000       294,669  
6.25%, 02/01/38
    250,000       253,237  
The Williams Cos., Inc.
7.88%, 09/01/21
    200,000       240,304  
8.75%, 03/15/32 (a)
    350,000       432,092  
5.75%, 06/24/44 (b)
    500,000       479,864  
Tosco Corp.
7.80%, 01/01/27
    750,000       1,034,953  
Total Capital International S.A.
3.75%, 04/10/24
    150,000       157,253  
Total Capital S.A.
2.30%, 03/15/16
    150,000       153,346  
4.13%, 01/28/21
    350,000       383,761  
TransCanada PipeLines Ltd.
6.50%, 08/15/18
    325,000       377,192  
6.20%, 10/15/37
    150,000       180,278  
Valero Energy Corp.
9.38%, 03/15/19
    250,000       315,012  
10.50%, 03/15/39
    200,000       324,469  
Weatherford International Ltd.
4.50%, 04/15/22 (b)
    500,000       495,226  
Williams Partners LP
7.25%, 02/01/17
    250,000       279,695  
4.13%, 11/15/20 (b)
    250,000       262,483  
6.30%, 04/15/40
    650,000       748,683  
XTO Energy, Inc.
6.75%, 08/01/37 (h)
    100,000       145,845  
                 
              32,805,771  
                 
 
Other Industrial 0.0%
Thomas & Betts Corp.
5.63%, 11/15/21
    250,000       295,554  
                 
 
Technology 1.2%
Amphenol Corp.
1.55%, 09/15/17
    300,000       301,081  
3.13%, 09/15/21 (b)
    600,000       609,007  
Apple, Inc.
0.45%, 05/03/16
    100,000       100,045  
1.00%, 05/03/18
    200,000       197,261  
2.40%, 05/03/23
    300,000       292,846  
3.85%, 05/03/43
    100,000       97,487  
Arrow Electronics, Inc.
3.00%, 03/01/18
    500,000       516,474  
4.50%, 03/01/23 (b)
    500,000       519,078  
Broadcom Corp.
3.50%, 08/01/24 (b)
    300,000       301,945  
4.50%, 08/01/34 (b)
    850,000       881,171  
Cisco Systems, Inc.
5.50%, 02/22/16
    700,000       742,465  
4.45%, 01/15/20 (h)
    500,000       555,260  
5.90%, 02/15/39
    150,000       186,034  
EMC Corp.
1.88%, 06/01/18
    250,000       249,231  
Fiserv, Inc.
3.13%, 06/15/16
    250,000       258,246  
Google, Inc.
3.38%, 02/25/24
    300,000       313,219  
Harris Corp.
6.15%, 12/15/40
    150,000       178,240  
Hewlett-Packard Co.
2.60%, 09/15/17
    300,000       307,081  
2.75%, 01/14/19
    200,000       201,148  
3.75%, 12/01/20
    550,000       565,274  
4.65%, 12/09/21
    350,000       373,417  
Intel Corp.
1.95%, 10/01/16
    250,000       255,444  
3.30%, 10/01/21
    400,000       420,152  
4.80%, 10/01/41
    150,000       163,664  
International Business Machines Corp.
5.70%, 09/14/17
    400,000       449,103  
7.63%, 10/15/18 (h)
    700,000       851,428  
KLA-Tencor Corp.
4.65%, 11/01/24 (b)
    350,000       357,142  
Microsoft Corp.
5.30%, 02/08/41
    500,000       604,059  
Motorola Solutions, Inc.
3.50%, 03/01/23
    500,000       493,023  
NetApp, Inc.
2.00%, 12/15/17
    1,000,000       1,007,432  
3.38%, 06/15/21 (b)
    350,000       354,524  
Oracle Corp.
5.25%, 01/15/16
    100,000       105,366  
3.40%, 07/08/24 (b)
    250,000       257,265  
4.30%, 07/08/34 (b)
    250,000       261,181  
Pitney Bowes, Inc.
4.63%, 03/15/24 (b)
    200,000       204,537  
Seagate HDD Cayman
3.75%, 11/15/18 (c)
    500,000       516,250  
4.75%, 06/01/23
    250,000       263,966  
4.75%, 01/01/25 (c)
    750,000       778,293  
5.75%, 12/01/34 (b)(c)(g)
    250,000       261,282  
Xerox Corp.
2.75%, 03/15/19
    400,000       404,086  
                 
              15,754,207  
                 
 
Transportation 0.5%
American Airlines 2013-1 Class A Pass Through Trust
4.00%, 01/15/27
    664,107       677,389  
Burlington Northern Santa Fe LLC
5.65%, 05/01/17 (h)
    400,000       441,898  
3.60%, 09/01/20 (b)
    300,000       317,605  
4.55%, 09/01/44 (b)
    300,000       313,230  
Canadian National Railway Co.
2.95%, 11/21/24 (b)
    500,000       499,617  
6.20%, 06/01/36
    100,000       133,024  
4.50%, 11/07/43 (b)
    100,000       110,467  
Canadian Pacific Railway Ltd.
4.50%, 01/15/22
    500,000       554,359  
Continental Airlines 2010-1 Class A Pass Through Trust
4.75%, 07/12/22
    290,422       311,304  
CSX Corp.
3.70%, 10/30/20 (b)
    500,000       532,421  
4.10%, 03/15/44 (b)
    400,000       387,788  
FedEx Corp.
2.63%, 08/01/22
    200,000       195,719  
3.88%, 08/01/42
    200,000       188,055  
Norfolk Southern Corp.
5.90%, 06/15/19
    300,000       348,251  
2.90%, 02/15/23 (b)
    250,000       246,920  
4.84%, 10/01/41
    100,000       110,297  
Ryder System, Inc.
2.55%, 06/01/19 (b)
    200,000       201,865  
Southwest Airlines Co.
2.75%, 11/06/19 (b)
    300,000       303,173  
 
 
 
 9

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
United Parcel Service, Inc.
1.13%, 10/01/17
    250,000       249,775  
6.20%, 01/15/38
    150,000       199,916  
                 
              6,323,073  
                 
              174,307,029  
 
Utilities 1.8%
                 
 
Electric 1.6%
Ameren Illinois Co.
2.70%, 09/01/22 (b)
    400,000       397,257  
American Electric Power Co., Inc.
1.65%, 12/15/17 (b)
    1,000,000       1,005,696  
Appalachian Power Co.
6.38%, 04/01/36 (h)
    650,000       833,428  
7.00%, 04/01/38 (h)
    400,000       549,706  
Berkshire Hathaway Energy Co.
3.75%, 11/15/23 (b)
    500,000       519,717  
CMS Energy Corp.
4.70%, 03/31/43 (b)
    1,500,000       1,573,966  
Commonwealth Edison Co.
1.95%, 09/01/16 (b)
    500,000       509,869  
Consolidated Edison Co. of New York, Inc.
5.30%, 03/01/35
    350,000       415,322  
Consumers Energy Co.
3.38%, 08/15/23 (b)
    500,000       517,401  
3.95%, 05/15/43 (b)
    400,000       400,426  
Dominion Resources, Inc.
4.45%, 03/15/21
    450,000       494,196  
5.25%, 08/01/33 (b)
    500,000       575,050  
DTE Electric Co.
3.65%, 03/15/24 (b)
    150,000       158,608  
Duke Energy Carolinas LLC
4.30%, 06/15/20
    100,000       110,463  
6.45%, 10/15/32
    350,000       466,126  
Duke Energy Corp.
3.75%, 04/15/24 (b)
    250,000       261,690  
Duke Energy Florida, Inc.
4.55%, 04/01/20
    750,000       835,073  
Duke Energy Progress, Inc.
4.15%, 12/01/44 (b)
    600,000       624,349  
Exelon Generation Co., LLC
4.00%, 10/01/20 (b)
    300,000       316,306  
5.60%, 06/15/42 (b)
    300,000       328,006  
Florida Power & Light Co.
6.20%, 06/01/36
    500,000       677,729  
Georgia Power Co.
4.75%, 09/01/40
    350,000       387,337  
LG&E & KU Energy LLC
3.75%, 11/15/20 (b)
    600,000       631,976  
National Rural Utilities Cooperative Finance Corp.
3.05%, 03/01/16 (h)
    500,000       515,492  
NextEra Energy Capital Holdings, Inc.
3.63%, 06/15/23 (b)
    200,000       203,029  
Oncor Electric Delivery Co., LLC
2.15%, 06/01/19 (b)(c)
    800,000       800,799  
4.55%, 12/01/41 (b)
    500,000       553,812  
Pacific Gas & Electric Co.
3.50%, 10/01/20 (b)
    200,000       209,930  
6.05%, 03/01/34
    300,000       378,079  
5.80%, 03/01/37
    400,000       482,520  
Pacificorp
5.50%, 01/15/19
    150,000       170,833  
6.00%, 01/15/39
    500,000       643,375  
PPL Electric Utilities Corp.
2.50%, 09/01/22 (b)
    200,000       197,668  
PSEG Power LLC
5.13%, 04/15/20
    150,000       168,129  
8.63%, 04/15/31
    500,000       731,566  
San Diego Gas & Electric Co.
4.50%, 08/15/40
    250,000       272,329  
Sempra Energy
3.55%, 06/15/24 (b)
    150,000       152,813  
Sierra Pacific Power Co.
6.00%, 05/15/16
    200,000       215,029  
Southern California Edison Co.
5.50%, 08/15/18
    250,000       284,465  
The Southern Co.
2.15%, 09/01/19 (b)
    500,000       500,069  
TransAlta Corp.
6.65%, 05/15/18
    100,000       112,412  
Union Electric Co.
3.90%, 09/15/42 (b)
    200,000       201,633  
Westar Energy, Inc.
4.13%, 03/01/42 (b)
    100,000       103,177  
Xcel Energy, Inc.
4.70%, 05/15/20 (b)
    315,000       352,715  
4.80%, 09/15/41 (b)
    750,000       822,716  
                 
              20,662,287  
                 
 
Natural Gas 0.2%
Atmos Energy Corp.
4.13%, 10/15/44 (b)
    850,000       868,149  
ONE Gas, Inc.
3.61%, 02/01/24 (b)
    500,000       525,538  
4.66%, 02/01/44 (b)
    150,000       167,625  
Sempra Energy
6.15%, 06/15/18
    500,000       571,793  
Southwest Gas Corp.
3.88%, 04/01/22 (b)
    100,000       107,876  
                 
              2,240,981  
                 
              22,903,268  
                 
Total Corporate Bonds
(Cost $282,505,688)     293,423,180  
         
                 
                 
 
 U.S. Government and Government Agencies 38.8% of net assets
 
U.S. Government Agency Securities 3.4%
Fannie Mae
2.38%, 04/11/16
    1,000,000       1,028,564  
1.25%, 09/28/16
    3,000,000       3,043,272  
5.38%, 06/12/17 (h)
    1,000,000       1,115,292  
1.20%, 07/17/17 (b)
    1,000,000       1,001,161  
0.88%, 08/28/17
    2,500,000       2,501,585  
1.00%, 09/27/17
    4,850,000       4,856,368  
1.50%, 10/17/19 (b)
    3,000,000       2,953,227  
2.25%, 10/17/22 (b)
    1,500,000       1,462,779  
6.63%, 11/15/30 (h)
    500,000       728,407  
Federal Farm Credit Bank
4.88%, 01/17/17
    500,000       545,138  
Federal Home Loan Bank
5.38%, 05/18/16
    1,000,000       1,073,672  
0.38%, 06/24/16
    1,500,000       1,500,317  
1.00%, 11/09/17 (b)
    1,000,000       995,382  
5.00%, 11/17/17
    750,000       837,830  
5.38%, 05/15/19
    500,000       581,631  
 
 
 
10 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
1.88%, 12/09/22 (h)
    3,500,000       3,372,393  
5.50%, 07/15/36
    500,000       673,798  
Freddie Mac
2.00%, 08/25/16
    1,000,000       1,027,034  
0.88%, 10/14/16
    2,250,000       2,263,194  
1.38%, 10/16/17 (b)
    2,000,000       2,002,408  
0.88%, 03/07/18 (h)
    3,750,000       3,722,677  
4.88%, 06/13/18
    1,000,000       1,128,482  
1.38%, 05/01/20
    1,250,000       1,223,354  
2.38%, 01/13/22
    1,500,000       1,522,687  
Tennessee Valley Authority
3.88%, 02/15/21
    340,000       376,076  
4.65%, 06/15/35
    1,000,000       1,171,556  
                 
              42,708,284  
 
U.S. Treasury Obligations 35.4%
U.S. Treasury Bonds
7.25%, 05/15/16
    1,000,000       1,100,703  
8.13%, 08/15/19
    1,000,000       1,304,688  
6.00%, 02/15/26 (h)
    3,500,000       4,787,891  
6.50%, 11/15/26
    1,000,000       1,435,547  
6.63%, 02/15/27
    1,000,000       1,454,141  
6.38%, 08/15/27
    1,000,000       1,438,594  
6.13%, 11/15/27
    400,000       566,375  
5.25%, 11/15/28
    1,000,000       1,330,234  
5.25%, 02/15/29 (h)
    2,750,000       3,664,160  
5.38%, 02/15/31
    2,000,000       2,755,000  
5.00%, 05/15/37
    500,000       694,375  
4.25%, 05/15/39
    1,000,000       1,254,844  
4.38%, 11/15/39
    1,000,000       1,278,984  
4.63%, 02/15/40
    2,000,000       2,653,438  
4.38%, 05/15/40
    1,750,000       2,248,066  
3.88%, 08/15/40 (h)
    2,300,000       2,737,359  
4.25%, 11/15/40
    1,650,000       2,082,739  
4.75%, 02/15/41
    1,450,000       1,975,512  
4.38%, 05/15/41
    1,250,000       1,614,746  
3.75%, 08/15/41
    2,000,000       2,343,438  
3.13%, 11/15/41
    3,785,000       3,966,563  
3.13%, 02/15/42
    2,230,000       2,331,222  
3.00%, 05/15/42
    1,000,000       1,019,922  
2.75%, 08/15/42
    2,025,000       1,961,877  
2.75%, 11/15/42
    2,000,000       1,935,468  
3.13%, 02/15/43
    1,000,000       1,040,938  
2.88%, 05/15/43
    3,000,000       2,973,282  
3.63%, 08/15/43
    3,000,000       3,421,407  
3.75%, 11/15/43
    1,000,000       1,165,781  
3.63%, 02/15/44
    3,000,000       3,423,282  
3.38%, 05/15/44
    3,500,000       3,816,368  
3.13%, 08/15/44
    1,000,000       1,040,938  
3.00%, 11/15/44
    2,000,000       2,034,376  
U.S. Treasury Notes
0.25%, 12/15/15
    6,500,000       6,506,604  
2.13%, 12/31/15
    2,700,000       2,756,319  
0.38%, 01/15/16
    5,000,000       5,011,330  
2.00%, 01/31/16
    2,250,000       2,297,111  
0.38%, 02/15/16
    4,000,000       4,008,436  
4.50%, 02/15/16
    1,000,000       1,051,719  
2.13%, 02/29/16
    1,000,000       1,023,828  
0.38%, 03/15/16
    2,000,000       2,004,532  
0.38%, 03/31/16
    5,000,000       5,008,595  
0.25%, 04/15/16 (h)
    8,000,000       8,005,624  
0.38%, 04/30/16
    6,000,000       6,012,654  
2.63%, 04/30/16
    1,000,000       1,033,750  
0.25%, 05/15/16
    4,500,000       4,500,702  
5.13%, 05/15/16
    1,000,000       1,070,703  
3.25%, 05/31/16
    1,000,000       1,044,688  
0.50%, 06/15/16
    3,000,000       3,010,548  
0.50%, 06/30/16
    3,000,000       3,009,375  
1.50%, 06/30/16
    2,000,000       2,037,812  
3.25%, 06/30/16
    1,000,000       1,046,328  
0.63%, 07/15/16
    4,000,000       4,019,688  
0.50%, 07/31/16
    3,000,000       3,008,907  
1.50%, 07/31/16
    1,000,000       1,019,219  
3.25%, 07/31/16
    1,850,000       1,939,031  
0.63%, 08/15/16
    1,500,000       1,506,680  
4.88%, 08/15/16
    1,000,000       1,076,328  
1.00%, 08/31/16
    1,500,000       1,516,172  
3.00%, 08/31/16
    2,100,000       2,195,649  
0.88%, 09/15/16
    3,000,000       3,025,314  
0.50%, 09/30/16
    5,500,000       5,509,454  
1.00%, 09/30/16
    3,000,000       3,031,875  
3.00%, 09/30/16
    1,000,000       1,046,719  
1.00%, 10/31/16
    2,000,000       2,021,406  
4.63%, 11/15/16
    1,000,000       1,080,859  
0.88%, 11/30/16
    2,000,000       2,015,782  
2.75%, 11/30/16 (h)
    5,000,000       5,225,390  
0.88%, 12/31/16
    3,750,000       3,776,659  
0.75%, 01/15/17
    3,000,000       3,012,891  
0.88%, 01/31/17
    3,000,000       3,019,452  
3.13%, 01/31/17 (h)
    3,700,000       3,904,366  
0.88%, 02/28/17
    7,750,000       7,799,042  
0.75%, 03/15/17
    5,500,000       5,517,616  
1.00%, 03/31/17
    2,000,000       2,016,094  
3.25%, 03/31/17
    2,000,000       2,121,250  
0.88%, 04/30/17
    3,000,000       3,014,766  
3.13%, 04/30/17 (h)
    5,250,000       5,559,666  
0.88%, 05/15/17
    3,000,000       3,013,359  
4.50%, 05/15/17
    3,000,000       3,278,673  
0.63%, 05/31/17
    2,500,000       2,493,555  
0.75%, 06/30/17
    3,000,000       2,999,064  
0.88%, 07/15/17
    2,000,000       2,005,938  
0.50%, 07/31/17
    4,000,000       3,969,688  
2.38%, 07/31/17
    3,500,000       3,647,108  
0.63%, 08/31/17
    6,500,000       6,464,958  
1.88%, 08/31/17
    2,000,000       2,057,032  
1.00%, 09/15/17
    5,000,000       5,025,390  
0.63%, 09/30/17
    1,000,000       993,281  
0.75%, 10/31/17
    3,000,000       2,988,984  
4.25%, 11/15/17
    3,000,000       3,293,436  
0.63%, 11/30/17
    5,500,000       5,451,875  
0.75%, 12/31/17
    1,000,000       993,750  
2.63%, 01/31/18
    2,000,000       2,102,188  
3.50%, 02/15/18
    1,000,000       1,079,297  
0.75%, 03/31/18
    3,000,000       2,971,407  
2.88%, 03/31/18
    2,500,000       2,650,390  
3.88%, 05/15/18
    2,500,000       2,738,673  
1.00%, 05/31/18
    1,000,000       996,562  
1.38%, 07/31/18
    1,500,000       1,511,718  
4.00%, 08/15/18
    2,000,000       2,207,344  
1.50%, 08/31/18
    3,000,000       3,034,923  
1.38%, 09/30/18
    4,000,000       4,024,688  
1.25%, 10/31/18
    1,000,000       1,000,391  
1.75%, 10/31/18
    4,000,000       4,076,876  
3.75%, 11/15/18
    3,000,000       3,290,859  
1.25%, 11/30/18
    6,000,000       5,995,314  
1.38%, 11/30/18
    3,000,000       3,012,891  
1.38%, 12/31/18
    5,000,000       5,015,235  
1.50%, 01/31/19
    2,000,000       2,014,376  
2.75%, 02/15/19
    1,500,000       1,586,718  
 
 
 
 11

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
1.50%, 02/28/19
    4,500,000       4,529,884  
1.50%, 03/31/19
    2,000,000       2,011,094  
1.63%, 03/31/19
    5,000,000       5,054,295  
1.63%, 04/30/19
    1,500,000       1,515,587  
3.13%, 05/15/19
    3,000,000       3,223,593  
1.50%, 05/31/19
    3,000,000       3,011,952  
1.00%, 06/30/19
    1,500,000       1,471,172  
1.63%, 06/30/19
    3,000,000       3,026,718  
1.63%, 07/31/19
    2,500,000       2,520,508  
3.63%, 08/15/19
    3,000,000       3,296,016  
1.00%, 08/31/19
    2,000,000       1,956,406  
1.63%, 08/31/19
    3,500,000       3,525,977  
1.75%, 09/30/19
    5,500,000       5,567,463  
1.50%, 10/31/19
    2,500,000       2,500,000  
3.38%, 11/15/19
    3,000,000       3,267,657  
1.00%, 11/30/19
    1,500,000       1,462,734  
1.50%, 11/30/19
    4,000,000       3,998,436  
3.63%, 02/15/20 (h)
    5,000,000       5,518,360  
1.13%, 04/30/20
    1,000,000       974,297  
1.38%, 05/31/20
    1,000,000       986,016  
1.88%, 06/30/20
    1,550,000       1,568,648  
2.00%, 07/31/20
    3,000,000       3,056,016  
2.63%, 08/15/20 (h)
    2,000,000       2,100,468  
2.00%, 09/30/20
    1,000,000       1,015,391  
2.63%, 11/15/20
    4,000,000       4,196,876  
2.00%, 11/30/20
    1,000,000       1,013,594  
2.38%, 12/31/20
    6,250,000       6,466,800  
2.13%, 01/31/21
    2,000,000       2,038,906  
3.63%, 02/15/21
    2,000,000       2,216,406  
2.00%, 02/28/21
    2,850,000       2,881,840  
2.25%, 04/30/21
    2,500,000       2,563,085  
3.13%, 05/15/21 (h)
    6,600,000       7,117,169  
2.00%, 05/31/21
    2,000,000       2,018,282  
2.13%, 06/30/21
    1,000,000       1,016,328  
2.25%, 07/31/21
    1,200,000       1,228,687  
2.13%, 08/15/21 (h)
    1,000,000       1,015,156  
2.00%, 08/31/21
    2,000,000       2,013,438  
2.00%, 10/31/21
    2,000,000       2,012,812  
2.00%, 11/15/21
    5,750,000       5,789,531  
1.88%, 11/30/21
    3,000,000       2,992,500  
2.00%, 02/15/22
    3,000,000       3,015,702  
1.75%, 05/15/22
    1,250,000       1,231,445  
1.63%, 08/15/22
    3,000,000       2,921,484  
1.63%, 11/15/22
    2,500,000       2,426,368  
2.00%, 02/15/23
    3,000,000       2,989,686  
1.75%, 05/15/23
    4,250,000       4,138,106  
2.50%, 08/15/23
    2,500,000       2,581,445  
2.50%, 05/15/24
    1,000,000       1,028,281  
2.38%, 08/15/24
    6,000,000       6,097,032  
2.25%, 11/15/24
    3,000,000       3,015,234  
                 
              449,444,013  
                 
Total U.S. Government and Government Agencies
(Cost $477,832,033)     492,152,297  
         
                 
                 
 
 Commercial Mortgage-Backed Securities 2.0% of net assets
                 
                 
Banc of America Commercial Mortgage Trust
Series 2007-1 Class A4
5.45%, 01/15/49 (b)(h)
    945,981       1,020,075  
Series 2007-2 Class A4
5.78%, 04/10/49 (a)(b)
    1,600,000       1,730,110  
Series 2007-4 Class A4
5.95%, 02/10/51 (a)(b)
    2,335,538       2,568,311  
Bear Stearns Commercial Mortgage Securities
Series 2007-T28 Class A4
5.74%, 09/11/42 (a)(b)
    380,000       418,588  
Citigroup Commercial Mortgage Trust
Series 2013-GC17 Class A4
4.13%, 11/10/46 (b)
    450,000       489,434  
COMM 2013-CCRE11 Mortgage Trust
Series 2013-CR10 Class A4
4.21%, 08/10/46 (b)
    1,500,000       1,642,579  
Credit Suisse Commercial Mortgage Trust
Series 2006-C1 Class AM
5.64%, 02/15/39 (a)(b)
    650,000       679,475  
Fannie Mae-Aces
Series 2011-M5 Class A2
2.94%, 07/25/21 (b)
    700,000       724,792  
Series 2014-M6 Class A2
2.68%, 05/25/21 (b)
    1,000,000       1,021,116  
FHLMC Multifamily Structured Pass-Through Certificates
Series K014 Class A1
2.79%, 10/25/20 (b)
    868,201       903,025  
Series K021 Class A2
2.40%, 06/25/22 (b)
    195,000       194,855  
Series K022 Class A2
2.36%, 07/25/22 (b)
    210,000       209,019  
Series K024 Class A2
2.57%, 09/25/22 (b)
    200,000       201,275  
Series K026 Class A2
2.51%, 11/25/22 (b)
    1,400,000       1,400,925  
Series K027 Class A2
2.64%, 01/25/23 (b)
    300,000       302,608  
Series K029 Class A2
3.32%, 02/25/23 (a)(b)
    100,000       105,685  
Series K035 Class A2
3.46%, 08/25/23 (a)(b)
    1,500,000       1,597,464  
Series K714 Class A2
3.03%, 10/25/20 (b)
    380,000       400,166  
Greenwich Capital Commercial Funding Corp.
Series 2007-GG9 Class A4
5.44%, 03/10/39 (b)(h)
    800,000       858,439  
JPMBB Commercial Mortgage Securities Trust
Series 2013-C14 Class A2
3.02%, 08/15/46 (b)
    4,400,000       4,593,626  
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2005-LDP5 Class AJ
5.53%, 12/15/44 (a)(b)(h)
    1,025,000       1,063,487  
Merrill Lynch Mortgage Trust
Series 2005-LC1 Class AM
5.49%, 01/12/44 (a)(b)
    700,000       728,171  
Morgan Stanley Bank of America Merrill Lynch Trust
Series 2013-C11 Class A2
3.09%, 08/15/46 (b)
    400,000       418,718  
Series 2013-C13 Class A2
2.94%, 11/15/46 (b)
    200,000       207,417  
Wells Fargo Commercial Mortgage Trust
Series 2013-LC12 Class A4
4.22%, 07/15/46 (a)(b)
    1,500,000       1,643,349  
WFRBS Commercial Mortgage Trust
Series 2013-C11 Class A2
2.03%, 03/15/45 (b)
    400,000       406,185  
Series 2013-C14 Class A2
2.13%, 06/15/46 (b)
    324,000       329,015  
                 
Total Commercial Mortgage-Backed Securities
(Cost $25,180,820)     25,857,909  
         
                 
                 
 
 
 
12 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Asset-Backed Obligations 0.5% of net assets
                 
                 
Capital One Multi-Asset Execution Trust
Series 2007-A7 Class A7
5.75%, 07/15/20 (b)
    100,000       112,190  
Chase Issuance Trust
Series 2007-A3 Class A3
5.23%, 04/15/19 (b)
    1,515,000       1,655,157  
Citibank Credit Card Issuance Trust
Series 2005-A2 Class A2
4.85%, 03/10/17 (b)
    700,000       708,796  
Series 2007-A8 Class A8
5.65%, 09/20/19 (b)
    850,000       951,611  
Series 2014-A5 Class A5
2.68%, 06/07/23 (b)
    1,500,000       1,526,173  
Ford Credit Auto Owner Trust
Series 2013-A Class A4
0.78%, 05/15/18 (b)
    150,000       150,044  
Honda Auto Receivables Owner Trust
Series 2012-4 Class A3
0.52%, 08/18/16 (b)
    120,527       120,566  
Hyundai Auto Receivables Trust
Series 2013-A Class A4
0.75%, 09/17/18 (b)
    630,000       630,003  
Series 2013-C Class A4
1.55%, 03/15/19 (b)
    100,000       100,974  
Mercedes Benz Auto Lease Trust
Series 2013-B Class A4
0.76%, 07/15/19 (b)
    100,000       100,113  
Nissan Auto Receivables Owner Trust
Series 2013-A Class A4
0.75%, 07/15/19 (b)
    200,000       200,012  
Volkswagen Auto Loan Enhanced Trust
Series 2012-2 Class A4
0.66%, 03/20/19 (b)
    400,000       399,041  
                 
Total Asset-Backed Obligations
(Cost $6,679,582)     6,654,680  
         
                 
                 
 
 Foreign Securities 5.2% of net assets
 
Foreign Agencies 1.7%
                 
 
Austria 0.0%
Oesterreichische Kontrollbank AG
5.00%, 04/25/17
    400,000       439,738  
                 
 
Brazil 0.2%
Petrobras Global Finance BV
4.38%, 05/20/23
    500,000       463,030  
5.63%, 05/20/43
    500,000       435,545  
Petrobras International Finance Co., S.A.
3.88%, 01/27/16
    500,000       503,275  
5.75%, 01/20/20
    700,000       719,236  
5.38%, 01/27/21
    500,000       500,340  
                 
              2,621,426  
                 
 
Germany 0.8%
Kreditanstalt Fuer Wiederaufbau
2.63%, 02/16/16 (d)
    3,000,000       3,085,734  
2.00%, 06/01/16 (d)
    900,000       921,719  
0.50%, 07/15/16 (d)
    350,000       350,365  
4.88%, 01/17/17 (d)
    850,000       925,663  
4.38%, 03/15/18 (d)
    500,000       552,087  
4.50%, 07/16/18 (d)
    1,250,000       1,392,880  
4.00%, 01/27/20 (d)
    550,000       612,186  
2.75%, 09/08/20 (d)
    750,000       788,716  
Landwirtschaftliche Rentenbank
1.00%, 04/04/18 (d)
    150,000       149,196  
1.88%, 09/17/18 (d)
    1,000,000       1,021,025  
                 
              9,799,571  
                 
 
Japan 0.1%
Japan Finance Corp.
2.50%, 01/21/16
    400,000       410,045  
2.25%, 07/13/16
    300,000       308,640  
                 
              718,685  
                 
 
Mexico 0.2%
Petroleos Mexicanos
5.50%, 01/21/21
    500,000       556,875  
6.63%, 06/15/35
    1,000,000       1,175,000  
6.50%, 06/02/41
    200,000       232,500  
5.50%, 06/27/44
    1,000,000       1,035,000  
                 
              2,999,375  
                 
 
Norway 0.1%
Statoil A.S.A.
3.13%, 08/17/17
    200,000       210,177  
7.75%, 06/15/23
    100,000       136,001  
3.70%, 03/01/24
    600,000       617,218  
5.10%, 08/17/40
    250,000       286,714  
                 
              1,250,110  
                 
 
Republic of Korea 0.2%
Export-Import Bank of Korea
4.00%, 01/11/17
    600,000       633,579  
The Korea Development Bank
4.00%, 09/09/16
    1,000,000       1,050,272  
3.00%, 09/14/22
    1,250,000       1,258,029  
                 
              2,941,880  
                 
 
Sweden 0.1%
Svensk Exportkredit AB
1.13%, 04/05/18
    750,000       747,323  
                 
              21,518,108  
 
Foreign Local Government 0.4%
                 
 
Canada 0.4%
Province of British Columbia
2.00%, 10/23/22
    400,000       392,567  
Province of Manitoba
1.13%, 06/01/18
    500,000       497,560  
Province of Ontario
1.00%, 07/22/16
    300,000       301,559  
4.00%, 10/07/19
    400,000       440,461  
4.40%, 04/14/20 (h)
    975,000       1,095,189  
Province of Quebec
5.13%, 11/14/16
    350,000       380,222  
3.50%, 07/29/20
    1,000,000       1,079,669  
7.50%, 09/15/29
    650,000       958,810  
                 
              5,146,037  
 
Sovereign 1.5%
                 
 
Brazil 0.1%
Federative Republic of Brazil
6.00%, 01/17/17 (h)
    500,000       547,000  
4.88%, 01/22/21
    250,000       270,812  
8.88%, 04/15/24 (h)
    200,000       276,000  
 
 
 
 13

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
4.25%, 01/07/25
    200,000       202,750  
5.63%, 01/07/41
    500,000       547,500  
                 
              1,844,062  
                 
 
Chile 0.1%
Republic of Chile
3.88%, 08/05/20
    600,000       650,250  
3.63%, 10/30/42
    200,000       180,700  
                 
              830,950  
                 
 
Colombia 0.1%
Republic of Colombia
7.38%, 09/18/37
    650,000       882,375  
                 
 
Italy 0.1%
Republic of Italy
5.38%, 06/12/17
    500,000       547,636  
6.88%, 09/27/23
    250,000       320,824  
                 
              868,460  
                 
 
Mexico 0.3%
United Mexican States
5.63%, 01/15/17
    500,000       546,750  
3.50%, 01/21/21
    350,000       362,075  
3.63%, 03/15/22
    1,000,000       1,035,500  
6.75%, 09/27/34
    750,000       973,125  
6.05%, 01/11/40
    1,000,000       1,225,250  
                 
              4,142,700  
                 
 
Panama 0.1%
Republic of Panama
5.20%, 01/30/20
    100,000       110,900  
4.00%, 09/22/24 (b)
    300,000       307,200  
6.70%, 01/26/36
    200,000       254,500  
                 
              672,600  
                 
 
Peru 0.1%
Republic of Peru
7.13%, 03/30/19
    650,000       786,500  
                 
 
Philippines 0.2%
Republic of the Philippines
4.00%, 01/15/21
    1,000,000       1,087,500  
4.20%, 01/21/24
    750,000       817,500  
5.00%, 01/13/37
    500,000       583,125  
                 
              2,488,125  
                 
 
Poland 0.1%
Republic of Poland
5.13%, 04/21/21
    750,000       849,510  
                 
 
Republic of Korea 0.0%
Republic of Korea
7.13%, 04/16/19
    250,000       304,873  
                 
 
South Africa 0.1%
Republic of South Africa
6.88%, 05/27/19
    500,000       578,475  
5.88%, 09/16/25
    1,000,000       1,145,500  
                 
              1,723,975  
                 
 
Turkey 0.2%
Republic of Turkey
7.50%, 07/14/17
    1,000,000       1,132,500  
5.63%, 03/30/21
    1,000,000       1,115,000  
7.38%, 02/05/25
    500,000       631,275  
4.88%, 04/16/43
    500,000       505,500  
                 
              3,384,275  
                 
              18,778,405  
 
Supranational* 1.6%
African Development Bank
2.50%, 03/15/16
    350,000       359,785  
0.88%, 05/15/17
    200,000       200,340  
Asian Development Bank
2.50%, 03/15/16 (h)
    750,000       771,064  
5.59%, 07/16/18
    500,000       570,637  
Corp Andina de Fomento
3.75%, 01/15/16
    300,000       310,770  
European Bank for Reconstruction & Development
2.50%, 03/15/16
    500,000       514,355  
1.00%, 02/16/17
    400,000       403,289  
European Investment Bank
2.50%, 05/16/16
    1,000,000       1,030,310  
5.13%, 05/30/17
    1,250,000       1,383,606  
1.00%, 06/15/18
    2,000,000       1,984,778  
1.88%, 03/15/19
    1,000,000       1,017,558  
2.88%, 09/15/20
    600,000       635,781  
3.25%, 01/29/24
    1,000,000       1,077,510  
4.88%, 02/15/36
    500,000       632,542  
Inter-American Development Bank
0.63%, 09/12/16
    750,000       751,103  
1.13%, 03/15/17
    1,000,000       1,008,804  
0.88%, 03/15/18
    350,000       347,038  
3.88%, 09/17/19
    500,000       552,627  
4.38%, 01/24/44
    250,000       300,212  
International Bank for Reconstruction & Development
2.13%, 03/15/16
    800,000       818,322  
0.88%, 04/17/17
    2,000,000       2,009,848  
2.13%, 02/13/23
    500,000       506,806  
4.75%, 02/15/35
    500,000       621,964  
International Finance Corp.
2.25%, 04/11/16
    500,000       512,508  
1.13%, 11/23/16
    750,000       755,921  
1.75%, 09/04/18
    350,000       355,728  
1.75%, 09/16/19
    350,000       352,388  
Nordic Investment Bank
0.50%, 04/14/16
    750,000       751,535  
                 
              20,537,129  
                 
Total Foreign Securities
(Cost $64,603,268)     65,979,679  
         
                 
                 
 
 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 (h)
    750,000       1,044,510  
San Francisco Bay Area Toll Bridge RB (Build America Bonds) Series 2010S3
6.91%, 10/01/50
    750,000       1,075,605  
California
GO (Build America Bonds) Series 2009
7.50%, 04/01/34 (h)
    1,000,000       1,458,440  
GO (Build America Bonds) Series 2010
7.95%, 03/01/36 (b)
    210,000       260,463  
GO (Build America Bonds) Series 2009
7.55%, 04/01/39
    300,000       453,309  
 
 
 
14 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
Catholic Health Initiatives
CO Taxable Bonds Series 2012
1.60%, 11/01/17
    150,000       150,224  
Connecticut
GO (Build America Bonds) Series 2010D
5.09%, 10/01/30
    100,000       113,822  
GO (Teachers’ Retirement Fund) Series 2008A
5.85%, 03/15/32
    300,000       373,419  
East Bay Municipal Utility District
Water System RB (Build America Bonds) Series 2010
5.87%, 06/01/40 (h)
    700,000       923,916  
Georgia
GO (Build America Bonds) Series 2009H
4.50%, 11/01/25
    900,000       998,937  
Harvard College
MA Taxable Bonds Series 2013A
3.62%, 10/01/37
    400,000       394,922  
Illinois
GO Bonds Series 2011
5.37%, 03/01/17
    750,000       808,725  
GO Bonds (Pension Funding) Series 2003
5.10%, 06/01/33
    300,000       295,779  
JobsOhio Beverage System
Statewide Senior Lien Liquor Profits RB Series 2013B
3.99%, 01/01/29
    750,000       776,602  
Maryland State Transportation Auth
RB (Build America Bonds) Series 2009B
5.89%, 07/01/43
    100,000       130,020  
Metropolitan Government of Nashville & Davidson Cnty
GO (Build America Bonds) Series 2010B
5.71%, 07/01/34
    200,000       241,128  
Metropolitan Transportation Auth
GO (Build America Bonds) Series 2010E
6.81%, 11/15/40
    350,000       481,824  
New Jersey State Turnpike Auth
RB (Build America Bonds) Series 2009F
7.41%, 01/01/40
    100,000       148,312  
RB (Build America Bonds) Series 2010A
7.10%, 01/01/41
    200,000       285,214  
New Jersey Transportation Trust Fund Auth
RB (Build America Bonds) Series 2010C
5.75%, 12/15/28
    250,000       288,753  
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       198,140  
New York City Transitional Finance Auth
Future Tax Secured RB (Qualified School Construction Bonds) Series 2010G3
5.27%, 05/01/27
    250,000       292,035  
Future Tax Secured RB (Build America Bonds) Series 2011A
5.51%, 08/01/37
    100,000       123,273  
Texas State Transportation Commission
RB (Build America Bonds) Series 2010B
5.03%, 04/01/26
    600,000       703,344  
GO (Build America Bonds) Series 2009A
5.52%, 04/01/39
    300,000       389,223  
                 
Total Municipal Bonds
(Cost $11,272,334)     12,409,939  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Companies 3.6% of net assets
 
Money Market Fund 3.6%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    44,751,326       44,751,326  
 
Securities Lending Collateral 0.0%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (e)
    248,257       248,257  
                 
Total Other Investment Companies
(Cost $44,999,583)     44,999,583  
         
                 
                 
    Face
 		   
Issuer
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Short-Term Investments 4.7% of net assets
 
U.S. Government Agency Securities 2.3%
Federal Home Loan Bank
0.04%, 12/03/14 (f)
    10,000,000       9,999,978  
0.07%, 12/19/14 (f)
    14,200,000       14,199,539  
0.07%, 12/24/14 (f)
    5,000,000       4,999,776  
                 
              29,199,293  
 
U.S. Treasury Obligation 2.4%
U.S. Treasury Bill
0.01%, 12/11/14 (f)
    30,000,000       29,999,941  
                 
Total Short-Term Investments
(Cost $59,199,234)     59,199,234  
         
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $1,328,798,833 and the unrealized appreciation and depreciation were $38,928,788 and ($1,858,342), respectively, with a net unrealized appreciation of $37,070,446.
 
* Supranational bonds represent the debt of international organizations or institutions such as the World Bank, the International Monetary Fund, regional multilateral development banks and others.
(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 $4,723,662 or 0.4% of net assets.
(d) Guaranteed by the Republic of Germany.
(e) The rate shown is the 7-day yield.
(f) The rate shown is the purchase yield.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) All or a portion of this security is designated as collateral for delayed-delivery securities.
(i) All or a portion of this security is on loan. Securities on loan were valued at $236,164.
 
 
 
 
 15

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
     
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 ask 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 may be valued at amortized cost, which approximates market value.
 
  •  Underlying funds: Mutual funds are valued at their respective net asset values (“NAVs”).
 
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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by the underlying fund.
 
  •  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
 
 
 
16 

 

 
 Schwab Total Bond Market Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Mortgage-Backed Securities1
    $—       $365,192,778       $—       $365,192,778  
Corporate Bonds1
    —       293,423,180       —       293,423,180  
U.S. Government and Government Agencies1
    —       492,152,297       —       492,152,297  
Commercial Mortgage-Backed Securities
    —       25,857,909       —       25,857,909  
Asset-Backed Obligations
    —       6,654,680       —       6,654,680  
Foreign Securities1
    —       65,979,679       —       65,979,679  
Municipal Bonds1
    —       12,409,939       —       12,409,939  
Other Investment Companies1
    44,999,583       —       —       44,999,583  
Short-Term Investments1
    —       59,199,234       —       59,199,234  
                                 
Total
    $44,999,583       $1,320,869,696       $—       $1,365,869,279  
                                 
 
     
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
 		  Accrued
 		  Realized
 		  Unrealized
 		          Gross
 		  Gross
 		  as of
Investments in
 		  August 31,
 		  Discounts
 		  Gains
 		  Appreciation
 		  Gross
 		  Gross
 		  Transfers
 		  Transfers
 		  November 30,
Securities
 
2014
 
(Premiums)
 
(Losses)
 
(Depreciation)
 
Purchases
 
Sales
 
in
 
out
 
2014
 
Corporate Bonds
    $679,049       $—       $—       $—       $—       $—       $—       ($679,049 )     $—  
                                                                         
Total
    $679,049       $—       $—       $—       $—       $—       $—       ($679,049 )     $—  
                                                                         
 
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 transfers out of Level 3 to Level 2. Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market-based data provided by third-party pricing services or other valuation techniques which utilize significant observable inputs. There were no transfers between Level 1 and Level 2 for the period ended November 30, 2014.
 
REG406017NOV14
 
 
 
 17

 

Schwab Investments
Schwab GNMA Fund™
 
Portfolio Holdings as of November 30, 2014 (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   ($)   ($)
 
  111 .4%   Mortgage-Backed Securities     332,016,070       339,407,980  
  1 .6%   Other Investment Company     4,750,682       4,750,682  
  8 .2%   Short-Term Investments     24,999,578       24,999,578  
 
 
  121 .2%   Total Investments     361,766,330       369,158,240  
  (6 .9)%   TBA Sale Commitments     (21,004,531 )     (21,055,897 )
  (14 .3%)   Other Assets and Liabilities, Net             (43,524,527 )
 
 
  100 .0%   Net Assets             304,577,816  
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Mortgage-Backed Securities 111.4% of net assets
 
TBA Securities 20.4%
Ginnie Mae TBA
2.50%, 12/01/44 (b)(e)
    1,500,000       1,481,836  
3.00%, 12/01/44 to 01/01/45 (b)(e)
    38,500,000       39,345,596  
3.50%, 12/01/44 (b)(e)
    15,000,000       15,749,765  
4.50%, 12/01/44 (b)(e)
    5,000,000       5,472,655  
                 
              62,049,852  
 
U.S. Government Agency Mortgages 91.0%
Fannie Mae
5.45%, 12/01/31 to 07/01/32 (b)(f)
    222,918       250,733  
5.49%, 09/01/29 to 09/01/31 (b)(f)
    101,492       114,163  
5.50%, 09/01/17 (b)(f)
    62,372       66,240  
5.81%, 12/01/31 (b)(f)
    70,730       79,761  
6.50%, 04/01/31 (b)(f)
    118,542       130,411  
7.17%, 11/01/30 (b)(f)
    12,106       12,149  
Fannie Mae REMICs
1.50%, 11/25/17 (b)
    42,924       42,895  
3.75%, 05/25/33 (b)(f)
    35,139       35,137  
4.00%, 04/25/18 to 02/25/23 (b)
    1,201,912       1,215,187  
4.50%, 01/25/30 to 11/25/36 (b)
    313,418       320,356  
5.00%, 09/25/25 to 11/25/33 (b)
    1,483,717       1,510,225  
5.50%, 09/25/34 (b)
    152,466       155,117  
7.00%, 09/25/22 (b)(f)
    69,275       77,034  
Federal Home Loan Bank
4.95%, 02/25/15 (b)
    161,223       162,554  
Freddie Mac REMICs
2.00%, 07/15/20 (b)(f)
    469,780       473,319  
3.00%, 08/15/19 to 12/15/40 (b)
    1,465,304       1,482,538  
3.50%, 03/15/28 (b)(f)
    3,017,209       3,075,587  
4.00%, 11/15/23 (b)(f)
    360,769       366,673  
4.00%, 07/15/24 to 10/15/27 (b)
    528,602       538,605  
4.50%, 03/15/18 to 09/15/35 (b)
    70,863       71,708  
5.00%, 05/15/34 (b)
    20,454       20,649  
5.50%, 08/15/35 (b)
    283,821       289,245  
Ginnie Mae
1.63%, 07/20/24 to 04/20/37 (a)(b)(f)
    446,728       465,101  
2.00%, 07/20/28 (b)(f)
    177,509       177,279  
2.13%, 08/20/33 (a)(b)(f)
    79,074       79,865  
2.50%, 06/15/27 to 06/15/28 (b)(f)
    1,553,170       1,599,412  
2.50%, 08/15/27 (b)
    381,633       393,148  
3.00%, 02/15/26 to 04/20/43 (b)(f)
    13,621,973       14,068,643  
3.00%, 07/20/44 (b)
    1,959,812       2,010,362  
3.50%, 02/20/16 (a)(b)(f)
    10,793       10,893  
3.50%, 01/15/26 to 06/20/44 (b)(f)
    32,872,900       34,603,797  
3.50%, 01/20/27 to 08/20/44 (b)
    27,345,559       28,771,094  
4.00%, 06/20/20 to 10/20/44 (b)
    22,721,126       24,407,349  
4.00%, 12/15/24 to 05/20/44 (b)(f)
    15,307,108       16,434,689  
4.00%, 11/20/43 (b)(e)
    3,062,117       3,288,977  
4.50%, 12/15/17 to 09/15/41 (b)(f)
    14,611,222       16,038,645  
4.50%, 08/20/19 to 10/20/44 (b)
    19,803,291       21,712,440  
5.00%, 11/15/17 to 04/20/40 (b)(f)
    32,464,641       36,105,204  
5.00%, 08/15/18 to 08/15/40 (b)
    111,253       123,066  
5.50%, 04/15/17 to 07/15/34 (b)(f)
    13,244,188       15,047,878  
5.50%, 05/15/22 (b)
    38,058       40,417  
6.00%, 05/15/16 to 06/20/37 (b)(f)
    1,093,971       1,216,419  
6.00%, 01/15/29 to 10/15/37 (b)
    81,519       92,804  
6.50%, 07/15/16 to 07/15/31 (b)(f)
    145,041       166,347  
6.50%, 10/15/23 (b)
    11,113       12,201  
7.00%, 09/20/16 to 05/15/17 (b)(f)
    8,492       8,582  
Ginnie Mae REMICs
2.00%, 08/20/36 (b)
    431,606       436,640  
2.25%, 03/20/36 (b)
    823,572       832,197  
2.50%, 02/20/33 (b)
    129,833       129,971  
3.00%, 01/20/31 (b)
    277,192       279,576  
4.00%, 02/20/32 (b)(f)
    6,008       6,026  
4.25%, 10/20/43 (a)(b)
    18,481,002       20,204,864  
4.50%, 08/20/33 to 08/20/36 (b)
    454,669       462,855  
5.00%, 09/20/31 to 03/20/36 (b)
    911,719       932,638  
5.50%, 03/20/35 (b)
    238,849       243,337  
5.66%, 12/20/37 (a)(b)
    14,691,196       16,708,179  
6.46%, 08/20/34 (a)(b)(f)
    8,283,274       9,756,947  
                 
              277,358,128  
                 
Total Mortgage-Backed Securities
(Cost $332,016,070)     339,407,980  
         
                 
                 
 
 
 
 1

 

 
 Schwab GNMA Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Company 1.6% of net assets
 
Money Market Fund 1.6%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (c)
    4,750,682       4,750,682  
                 
Total Other Investment Company
(Cost $4,750,682)     4,750,682  
         
                 
                 
    Face
 		   
Issuer
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 Short-Term Investments 8.2% of net assets
 
U.S. Government Agency Securities 8.2%
Federal Home Loan Bank
0.02%, 12/17/14 (d)
    15,000,000       14,999,600  
0.06%, 12/03/14 (d)
    10,000,000       9,999,978  
                 
Total Short-Term Investments
(Cost $24,999,578)     24,999,578  
         
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $361,938,200 and the unrealized appreciation and depreciation were $7,309,786 and ($89,746), respectively, with a net unrealized appreciation of $7,220,040.
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Dates   ($)   ($)
 
 TBA Sale Commitments 6.9% of net assets
 
U.S. Government Agency Mortgages 6.9%
Ginnie Mae TBA
5.00%, 12/01/44 (b)(e)
    14,000,000       15,473,281  
5.50%, 12/01/44 (b)(e)
    5,000,000       5,582,616  
                 
Total TBA Sale Commitments
(Proceeds $21,004,531)     21,055,897  
         
 
(a) Variable-rate security.
(b) The effective maturity may be shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or as the result of embedded demand features (puts or calls).
(c) The rate shown is the 7-day yield.
(d) The rate shown is the purchase yield.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) All or a portion of this security is designated as collateral for delayed-delivery securities.
 
     
REMIC —
  Real Estate Mortgage Investment Conduit
 
 
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 ask 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 may be valued at amortized cost, which approximates market value.
 
 
 
2 

 

 
 Schwab GNMA Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  •  Underlying funds: Mutual funds are valued at their respective net asset values (“NAVs”).
 
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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by the underlying fund.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
Assets Valuation Input
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Mortgage-Backed Securities1
    $—       $339,407,980       $—       $339,407,980  
Other Investment Company1
    4,750,682       —       —       4,750,682  
Short-Term Investments1
    —       24,999,578       —       24,999,578  
                                 
Total
    $4,750,682       $364,407,558       $—       $369,158,240  
                                 
                                 
                                 
 
 
 
 3

 

 
 Schwab GNMA Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                 
Liabilities Valuation Input
                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Other Financial Instruments
                               
TBA Sale Commitments1
    $—       ($21,055,897 )     $—       ($21,055,897 )
 
     
1
  As categorized in Portfolio Holdings.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2014.
 
REG406018NOV14
 
 
 
4 

 

Schwab Investments
Schwab® Treasury Inflation Protected Securities Index Fund
 
Portfolio Holdings as of November 30, 2014 (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 .6%   U.S. Government Securities     254,654,451       266,370,964  
  0 .1%   Other Investment Company     216,935       216,935  
 
 
  99 .7%   Total Investments     254,871,386       266,587,899  
  0 .3%   Other Assets and Liabilities, Net             711,995  
 
 
  100 .0%   Net Assets             267,299,894  
 
                 
    Face
 		   
Security
 		  Amount
 		  Value
    Rate, Maturity Date   ($)   ($)
 
 U.S. Government Securities 99.6% of net assets
 
U.S. Treasury Obligations 99.6%
U.S. Treasury Inflation Protected Securities
2.00%, 01/15/16
    5,807,967       5,962,226  
0.13%, 04/15/16
    11,672,056       11,745,006  
2.50%, 07/15/16
    5,683,305       5,995,886  
2.38%, 01/15/17
    4,928,932       5,239,307  
0.13%, 04/15/17
    13,135,128       13,301,418  
2.63%, 07/15/17
    4,225,184       4,590,282  
1.63%, 01/15/18
    4,461,777       4,737,827  
0.13%, 04/15/18
    14,603,203       14,758,435  
1.38%, 07/15/18
    4,400,890       4,680,742  
2.13%, 01/15/19
    4,094,207       4,479,963  
0.13%, 04/15/19
    9,835,072       9,896,541  
1.88%, 07/15/19
    4,651,976       5,084,470  
1.38%, 01/15/20
    5,641,138       6,027,217  
1.25%, 07/15/20
    8,669,226       9,265,236  
1.13%, 01/15/21
    9,916,942       10,490,241  
0.63%, 07/15/21
    10,526,047       10,843,513  
0.13%, 01/15/22
    11,618,627       11,493,378  
0.13%, 07/15/22
    11,983,922       11,869,715  
0.13%, 01/15/23
    12,039,374       11,817,368  
0.38%, 07/15/23
    11,942,209       11,983,290  
0.63%, 01/15/24
    11,913,979       12,135,460  
0.13%, 07/15/24
    11,707,546       11,418,487  
2.38%, 01/15/25
    7,706,559       9,157,550  
2.00%, 01/15/26
    5,613,686       6,506,599  
2.38%, 01/15/27
    4,515,826       5,457,782  
1.75%, 01/15/28
    4,504,955       5,141,280  
3.63%, 04/15/28
    3,807,157       5,278,280  
2.50%, 01/15/29
    4,362,497       5,453,121  
3.88%, 04/15/29
    4,631,834       6,682,856  
3.38%, 04/15/32
    1,759,379       2,508,768  
2.13%, 02/15/40
    2,384,227       3,056,651  
2.13%, 02/15/41
    3,032,506       3,916,663  
0.75%, 02/15/42
    5,335,417       5,110,316  
0.63%, 02/15/43
    3,938,243       3,643,505  
1.38%, 02/15/44
    5,962,407       6,641,585  
                 
Total U.S. Government Securities
(Cost $254,654,451)     266,370,964  
         
                 
                 
    Number
 		  Value
Security   of Shares   ($)
 
 Other Investment Company 0.1% of net assets
 
Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.00% (a)
    216,935       216,935  
                 
Total Other Investment Company
(Cost $216,935)     216,935  
         
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $256,860,912 and the unrealized appreciation and depreciation were $12,100,113 and ($2,373,126), respectively, with a net unrealized appreciation of $9,726,987.
 
(a) The rate shown is the 7-day yield.
 
 
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 ask 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 may be valued at amortized cost, which approximates market value.
 
  •  Underlying funds: Mutual funds are valued at their respective net asset values (“NAVs”).
 
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. Investments in mutual funds are valued daily at their NAVs, which are classified as Level 1 prices, without consideration to the classification level of the specific investments held by the underlying fund.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active
 
 
 
2 

 

 
 Schwab Treasury Inflation Protected Securities Index Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
U.S. Government Securities1
    $—       $266,370,964       $—       $266,370,964  
Other Investment Company1
    216,935       —       —       216,935  
                                 
Total
    $216,935       $266,370,964       $—       $266,587,899  
                                 
 
     
1
  As categorized in Portfolio Holdings.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2014.
 
REG406019NOV14
 
 
 
 3

 

Schwab Investments
Schwab Tax-Free Bond Fund™
 
Portfolio Holdings as of November 30, 2014 (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 .8%   Fixed-Rate Obligations     588,686,123       616,130,527  
  5 .5%   Variable-Rate Obligations     35,180,000       35,471,746  
 
 
  101 .3%   Total Investments     623,866,123       651,602,273  
  (1 .3)%   Other Assets and Liabilities, Net             (8,358,504 )
 
 
  100 .0%   Net Assets             643,243,769  
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
 
 Fixed-Rate Obligations 95.8% of net assets
 
ALABAMA 0.7%
Birmingham
GO Bonds Series 2013A
    0.00%               03/01/43  (b)(f)     500,000       488,960  
GO Refunding Warrants Series 2010A
    5.00%               02/01/18  (e)     1,160,000       1,307,784  
Huntsville
Water Revenue Warrant Series 2008
    5.00%               11/01/15       250,000       261,103  
Pell Special Care Facilities Financing Auth
RB (Noland Health Services) Series 2012A
    5.00%               12/01/19       1,050,000       1,198,680  
RB (Noland Health Services) Series 2012A
    5.00%               12/01/20       950,000       1,095,749  
                                         
                                      4,352,276  
 
ALASKA 2.1%
Alaska Housing Finance Corp
State Capital Project Bonds II Series 2012A
    5.00%               12/01/17       1,105,000       1,246,252  
Alaska Industrial Development & Export Auth
RB (Greater Fairbanks Community Hospital Foundation) Series 2014
    5.00%               04/01/22       500,000       581,270  
RB (Greater Fairbanks Community Hospital Foundation) Series 2014
    5.00%               04/01/23       630,000       736,287  
North Slope Borough
GO Bonds Series 2013A
    5.00%               06/30/19       1,000,000       1,167,970  
GO Bonds Series 2014A
    4.00%               06/30/17       3,000,000       3,263,700  
GO Bonds Series 2014B
    5.00%               10/30/18       2,045,000       2,359,317  
Service Area 10 Water & Wastewater Facilities RB Series 2014
    5.00%               06/30/20       820,000       964,197  
Service Area 10 Water & Wastewater Facilities RB Series 2014
    5.00%               06/30/22  (b)     805,000       943,685  
Service Area 10 Water & Wastewater Facilities RB Series 2014
    5.00%               06/30/23  (b)     1,890,000       2,191,323  
                                         
                                      13,454,001  
 
ARIZONA 2.2%
Arizona Health Facilities Auth
Hospital RB (Phoenix Children’s Hospital) Series 2013B
    5.00%               02/01/43  (b)     1,000,000       1,073,420  
Glendale IDA
RB (Midwestern Univ) Series 2010
    5.00%               05/15/15       415,000       423,636  
Payson USD No.10
GO Bonds Series 2008B
    5.75%               07/01/28  (b)(e)     1,375,000       1,616,299  
Pima Cnty
COP Series 2013A
    5.00%               12/01/17       550,000       617,853  
COP Series 2013A
    5.00%               12/01/18       400,000       458,656  
COP Series 2013A
    5.00%               12/01/19       500,000       582,370  
GO Bonds Series 2012A
    4.00%               07/01/22       140,000       158,999  
Refunding COP Series 2013B
    5.00%               12/01/16       625,000       681,500  
 
 
 
 1

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Tempe
GO Refunding Bonds Series 2014C
    3.00%               07/01/23  (d)     4,000,000       4,238,080  
Tucson
Refunding COP Series 2014
    4.00%               07/01/21       1,650,000       1,845,855  
Refunding COP Series 2014
    4.00%               07/01/22       700,000       780,661  
Refunding COP Series 2014
    4.00%               07/01/23       700,000       777,588  
Univ Medical Center Corp
Hospital RB Series 2009
    5.00%               07/01/15       170,000       174,184  
Hospital RB Series 2009
    5.50%               07/01/16       100,000       106,840  
Hospital RB Series 2009
    6.00%               07/01/18       300,000       342,951  
                                         
                                      13,878,892  
 
ARKANSAS 1.1%
Cabot
Sales & Use Tax Refunding & Improvement Bonds Series 2013
    2.55%               06/01/43  (b)     1,215,000       1,220,188  
Fayetteville
Sales & Use Tax Bonds Series 2013
    2.80%               11/01/24       2,295,000       2,328,461  
Fort Smith
Sales & Use Tax Refunding Bonds Series 2012
    2.38%               05/01/27  (b)     375,000       377,366  
Little Rock
Library Construction & Refunding Bonds Series 2012
    3.10%               03/01/32  (b)     1,785,000       1,770,774  
Springdale
Sales & Use Tax Refunding Bonds Series 2013
    2.60%               07/01/27  (b)     1,110,000       1,112,908  
                                         
                                      6,809,697  
 
CALIFORNIA 12.6%
ABAG Finance Auth
Insured Sr Living RB (Old Fellows Home of California) Series 2012A
    5.00%               04/01/32  (a)(b)     1,330,000       1,514,444  
Refunding RB (Episcopal Sr Communities) Series 2012B
    5.00%               07/01/19       1,000,000       1,123,490  
Anaheim Public Financing Auth
Lease Refunding RB Series 2008
    5.00%               08/01/17       955,000       1,056,096  
California
GO Bonds
    5.00%               11/01/32  (b)(e)     1,240,000       1,358,693  
GO Bonds
    5.00%               04/01/38  (b)     500,000       549,345  
GO Bonds
    5.00%               09/01/42  (b)     2,000,000       2,252,080  
California Dept of Water Resources
Power Supply RB Series 2005G4
    5.00%               05/01/16  (e)     750,000       800,475  
California Health Facilities Financing Auth
RB (St. Joseph Health) Series 2013A
    5.00%               07/01/25  (b)     885,000       1,063,425  
California Infrastructure & Economic Development Bank
RB (Sanford Consortium) Series 2010A
    5.00%               05/15/27  (b)(e)     2,005,000       2,328,186  
California Public Works Board
Lease Refunding RB Series 2014H
    5.00%               12/01/20       1,605,000       1,906,451  
California Statewide Communities Development Auth
RB (St. Joseph Health) Series 2000
    4.50%               07/01/18       1,320,000       1,405,351  
Compton CCD
GO Refunding Bonds Series 2014
    5.00%               07/01/25  (b)     1,450,000       1,715,364  
GO Refunding Bonds Series 2014
    5.00%               07/01/26  (b)     1,615,000       1,891,294  
Emeryville Successor RDA
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/20       2,000,000       2,374,360  
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/21       2,000,000       2,393,980  
Franklin-McKinley SD
GO Refunding Bonds Series 2014
    5.00%               08/01/24       1,000,000       1,227,370  
Fresno
Airport Refunding RB Series 2013A
    5.00%               07/01/23       105,000       123,365  
Airport Refunding RB Series 2013A
    5.00%               07/01/30  (b)     90,000       99,764  
Healdsburg School Facilities Financing Auth
GO RB Series 2014
    4.00%               07/15/39  (b)     1,110,000       1,137,184  
Inglewood USD
GO Bonds Series A
    5.25%               08/01/27  (b)     1,135,000       1,304,036  
Jurupa Public Finance Auth
Special Tax RB Series 2014A
    5.00%               09/01/21       600,000       705,006  
Special Tax RB Series 2014A
    5.00%               09/01/22       460,000       543,527  
 
 
 
2 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Kern Cnty
Refunding COP 2011 Series A
    5.00%               11/01/16       1,935,000       2,085,446  
Los Angeles
Judgment Obligation Bonds Series 2010A
    4.00%               06/01/19       3,070,000       3,421,576  
Los Angeles Community Facilities District #4
Special Tax Refunding Bonds (Playa Vista) Series 2014
    5.00%               09/01/26  (b)     1,500,000       1,768,545  
Los Angeles Dept of Water & Power
Power Supply RB Series 2012B
    5.00%               07/01/43  (b)     4,360,000       4,877,314  
Los Angeles Municipal Improvement Corp
Lease RB Series 2009A
    5.00%               04/01/17       975,000       1,077,980  
Lease RB Series 2009C
    4.00%               09/01/16       1,050,000       1,118,418  
Lease RB Series 2009C
    4.00%               09/01/17       100,000       109,463  
Los Angeles USD
Refunding COP Series 2012B
    5.00%               10/01/30  (b)     100,000       115,427  
New Haven USD
GO Refunding Bonds Series 2014B
    5.00%               08/01/21  (d)     1,000,000       1,168,670  
Oakland Redevelopment Successor Agency
Sub Tax Allocation Refunding Bonds (Central District) Series 2013
    5.00%               09/01/17       3,500,000       3,890,460  
Old Adobe USD
GO Bonds Series B
    5.25%               08/01/43  (b)     720,000       852,811  
Palo Alto
Limited Obligation Refunding Bonds Series 2012
    4.00%               09/02/19       180,000       197,275  
Limited Obligation Refunding Bonds Series 2012
    4.00%               09/02/21       275,000       302,198  
Pasadena Public Financing Auth
Lease RB Series 2010A
    5.00%               03/01/22  (b)     360,000       419,515  
Rancho Cucamonga Successor RDA
Tax Allocation Refunding Bonds Series 2014
    5.00%               09/01/26  (b)     755,000       894,871  
Riverside Cnty Transportation Commission
Limited Sales Tax RB Series 2010A
    5.00%               06/01/32  (b)     3,530,000       4,055,087  
Sacramento City Financing Auth
Lease Refunding RB Series 2013A
    5.00%               05/01/17       1,750,000       1,935,482  
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A
    3.88%               03/01/18       2,165,000       2,358,140  
San Diego USD
GO Bonds Series 2010C
    0.00%               07/01/31  (f)     1,950,000       1,017,374  
GO Bonds Series 2010C
    0.00%               07/01/32  (f)     1,500,000       742,185  
GO Bonds Series 2010C
    0.00%               07/01/33  (f)     1,000,000       474,530  
GO Bonds Series 2010C
    0.00%               07/01/34  (f)     1,750,000       784,123  
GO Bonds Series 2010C
    0.00%               07/01/35  (f)     1,300,000       539,175  
San Francisco CCD
GO Bonds Series 2010D
    5.00%               06/15/29  (b)     1,000,000       1,114,360  
San Mateo-Foster City SD
GO Refunding Bonds Series 2012
    3.00%               09/01/15       1,730,000       1,767,766  
GO Refunding Bonds Series 2012
    4.00%               09/01/18       1,885,000       2,107,204  
GO Refunding Bonds Series 2012
    5.00%               09/01/20       2,195,000       2,640,256  
Santa Cruz Cnty Successor Redevelopment Agency
Tax Allocation Refunding Bonds 2014
    5.00%               09/01/22       1,360,000       1,615,422  
Tax Allocation Refunding Bonds 2014
    5.00%               09/01/23       1,000,000       1,187,860  
Tax Allocation Refunding Bonds 2014
    5.00%               09/01/24       1,250,000       1,476,487  
Tiburon/Belvedere Wastewater Financing Auth
RB (Marin Cnty Sanitary District No. 5) Series 2012
    3.00%               10/01/21       140,000       152,510  
Univ of California
Limited RB Series 2012G
    5.00%               05/15/42  (b)     2,800,000       3,135,216  
Upland
COP (San Antonio Community Hospital) Series 2011
    5.50%               01/01/19       1,165,000       1,322,438  
COP (San Antonio Community Hospital) Series 2011
    5.50%               01/01/20       1,260,000       1,451,999  
                                         
                                      81,050,869  
 
COLORADO 1.4%
Aspen Valley Hospital District
Refunding RB Series 2012
    5.00%               10/15/30  (b)     650,000       715,208  
Colorado Health Facilities Auth
RB (Catholic Health Initiatives) Series 2009B3
    1.88%               07/01/39  (b)     1,450,000       1,450,537  
Refunding RB (National Jewish Health) Series 2012
    5.00%               01/01/18  (e)     1,630,000       1,739,943  
Refunding RB (National Jewish Health) Series 2012
    5.00%               01/01/19  (e)     1,735,000       1,863,477  
 
 
 
 3

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Refunding RB (National Jewish Health) Series 2012
    5.00%               01/01/21       1,900,000       2,027,148  
Denver Health & Hospital Auth
Healthcare RB Series 2014A
    5.00%               12/01/39  (b)     1,000,000       1,078,150  
Univ of Colorado Hospital Auth
RB Series 2012A
    5.00%               11/15/16       440,000       479,098  
                                         
                                      9,353,561  
 
CONNECTICUT 2.4%
Connecticut
GO Bonds Series 2013A
    5.00%               10/15/22       2,875,000       3,477,657  
Special Tax Obligation Bonds Series 2013A
    5.00%               10/01/20       2,000,000       2,382,340  
Greater New Haven Pollution Control Auth
Wastewater System Refunding RB Series 2014B
    5.00%               08/15/24       300,000       365,445  
Wastewater System Refunding RB Series 2014B
    5.00%               08/15/25  (b)     900,000       1,082,016  
Wastewater System Refunding RB Series 2014B
    5.00%               08/15/26  (b)     625,000       743,500  
Hamden
GO Bonds 2014A
    4.00%               08/15/22       250,000       277,228  
GO Bonds 2014A
    5.00%               08/15/24  (b)     500,000       573,825  
GO Bonds 2014A
    5.00%               08/15/25  (b)     250,000       284,730  
New Haven
GO Bonds Series 2011A
    5.00%               03/01/15  (g)     1,260,000       1,275,863  
Oxford
GO Refunding Bonds 2011
    3.00%               08/01/16       120,000       125,062  
GO Refunding Bonds 2011
    4.00%               08/01/17       1,405,000       1,527,642  
GO Refunding Bonds 2011
    4.00%               08/01/18       1,445,000       1,598,791  
GO Refunding Bonds 2011
    4.00%               08/01/19       450,000       504,491  
Stamford
Water Pollution Control RB Series 2013A
    5.00%               08/15/26  (b)     140,000       164,657  
Water Pollution Control RB Series 2013A
    5.00%               08/15/29  (b)     15,000       17,316  
West Haven
GO Bonds 2012
    5.00%               08/01/20       865,000       995,762  
                                         
                                      15,396,325  
 
DELAWARE 0.2%
Delaware State Housing Auth
Sr S/F Mortgage RB Series 2011A2
    4.25%               07/01/29  (b)     1,360,000       1,417,596  
 
DISTRICT OF COLUMBIA 0.3%
District of Columbia
Income Tax Secured RB Series 2009A
    5.25%               12/01/27  (b)(e)     300,000       350,061  
Income Tax Secured Refunding RB Series 2010A
    5.00%               12/01/30  (b)     1,210,000       1,389,758  
                                         
                                      1,739,819  
 
FLORIDA 5.6%
Alachua Cnty Health Facilities Auth
Health Facilities RB (Shands Teaching Hospital & Clinics) Series 2008D1
    6.25%               12/01/18       500,000       589,275  
Health Facilities RB (Shands Teaching Hospital & Clinics) Series 2014A
    5.00%               12/01/25  (b)     1,000,000       1,160,230  
Escambia Cnty
Pollution Control Refunding RB (Gulf Power) Series 1997
    2.10%               07/01/22  (b)     1,000,000       1,026,400  
Florida Higher Educational Facilities Financing Auth
Refunding RB (Univ Tampa) Series 2012A
    5.00%               04/01/19       1,220,000       1,367,949  
Refunding RB (Univ Tampa) Series 2012A
    5.25%               04/01/42  (b)     400,000       434,564  
Florida Ports Financing Commission
Refunding RB Series 2011A
    5.00%               10/01/28  (b)     1,500,000       1,753,125  
Hillsborough Cnty School Board
Refunding COP Series 2010A
    5.00%               07/01/24  (b)     3,485,000       4,002,662  
Kissimmee Utility Auth
Electric System Sub Refunding RB Series 2003
    5.25%               10/01/18       150,000       172,463  
Lee Cnty
Non-Ad Valorem Refunding RB Series 2012
    4.00%               10/01/15       950,000       979,231  
Miami Beach Health Facilities Auth
Hospital Refunding & RB Series 2014
    5.00%               11/15/21       100,000       115,689  
 
 
 
4 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Hospital Refunding & RB Series 2014
    5.00%               11/15/22       150,000       173,745  
Hospital Refunding & RB Series 2014
    5.00%               11/15/24       400,000       463,184  
Hospital Refunding & RB Series 2014
    5.00%               11/15/25  (b)     250,000       284,700  
Hospital Refunding & RB Series 2014
    5.00%               11/15/39  (b)     1,000,000       1,090,950  
Miami-Dade Cnty
Aviation RB Series 2010A
    5.00%               10/01/20       500,000       585,680  
Aviation RB Series 2010A
    5.50%               10/01/26  (b)     4,690,000       5,514,221  
Rickenbacker Causeway RB Series 2014
    5.00%               10/01/23       740,000       863,706  
Rickenbacker Causeway RB Series 2014
    5.00%               10/01/25  (b)     810,000       935,744  
Rickenbacker Causeway RB Series 2014
    5.00%               10/01/35  (b)     575,000       634,915  
Rickenbacker Causeway RB Series 2014
    5.00%               10/01/36  (b)     890,000       982,738  
Miami-Dade Cnty Educational Facilities Auth
RB (Univ of Miami) Series 2008A
    5.25%               04/01/16  (e)     600,000       635,634  
Miami-Dade Cnty Expressway Auth
Toll System RB Series 2014A
    5.00%               07/01/22       550,000       656,920  
Toll System RB Series 2014A
    4.00%               07/01/23       1,730,000       1,951,648  
Toll System RB Series 2014A
    5.00%               07/01/24       625,000       755,737  
Orange Cnty Health Facilities Auth
RB (Nemours Foundation) Series 2009A
    4.00%               01/01/15       440,000       441,430  
RB (Nemours Foundation) Series 2009A
    5.00%               01/01/18       300,000       335,709  
RB (Nemours Foundation) Series 2009A
    5.00%               01/01/19       545,000       623,567  
Palm Beach Cnty Health Facilities Auth
Hospital Refunding RB (Boca Raton Regional Hospital) Series 2014
    5.00%               12/01/22       800,000       916,360  
Palm Beach Cnty Solid Waste Auth
RB Series 2009
    5.25%               10/01/18  (a)     1,900,000       2,214,089  
Pasco Cnty
Water & Sewer RB Series 2009A
    5.00%               10/01/16       75,000       81,317  
Port St. Lucie
Utility System Refunding RB Series 2014
    5.00%               09/01/20       250,000       291,105  
Utility System Refunding RB Series 2014
    5.00%               09/01/21       250,000       292,555  
Utility System Refunding RB Series 2014
    5.00%               09/01/22       485,000       569,696  
Utility System Refunding RB Series 2014
    5.00%               09/01/23       350,000       413,045  
Sumter County Industrial Development Auth
Hospital RB (Central FL Health Alliance) Series 2014A
    5.00%               07/01/22       200,000       228,656  
Hospital RB (Central FL Health Alliance) Series 2014A
    5.00%               07/01/24  (b)     150,000       171,723  
Hospital RB (Central FL Health Alliance) Series 2014A
    5.00%               07/01/26  (b)     270,000       303,202  
Tampa
Sales Tax Refunding RB Series 2010
    4.00%               10/01/20       535,000       604,331  
Sales Tax Refunding RB Series 2010
    5.00%               10/01/21  (b)     140,000       163,822  
Tampa Bay Water
Utility System Refunding RB Series 2011
    5.00%               10/01/18       850,000       979,200  
                                         
                                      35,760,917  
 
GEORGIA 0.6%
Burke Cnty Development Auth
Pollution Control RB (Georgia Power Plant Vogtle) Fourth Series 1994
    2.20%               10/01/32  (b)     1,500,000       1,528,095  
Fulton Cnty Development Auth
RB (Georgia State Univ) Series 2011
    5.00%               10/01/15       825,000       856,812  
RB (Georgia State Univ) Series 2011
    5.00%               10/01/17       185,000       204,222  
Macon-Bibb Cnty Hospital Auth
Revenue Anticipation Certificates (Medical Center of Central GA) Series 2009
    4.00%               08/01/19       200,000       221,166  
Monroe Cnty Development Auth
Pollution Control RB (Georgia Power Plant Scherer) First Series 1995
    2.00%               07/01/25  (b)     1,000,000       1,030,280  
                                         
                                      3,840,575  
 
GUAM 0.4%
Guam Power Auth
RB Series 2014A
    5.00%               10/01/20       500,000       576,780  
RB Series 2014A
    5.00%               10/01/21       1,095,000       1,267,254  
RB Series 2014A
    5.00%               10/01/25  (b)     720,000       825,862  
                                         
                                      2,669,896  
 
 
 
 5

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
 
HAWAII 0.9%
Hawaii
GO Bonds Series 2013EH
    5.00%               08/01/20       3,000,000       3,576,150  
Hawaii State Housing Finance & Development Corp
S/F Mortgage Purchase RB Series 2011B
    4.50%               01/01/26  (b)     1,910,000       2,051,875  
                                         
                                      5,628,025  
 
IDAHO 0.9%
Nampa SD No. 131
GO Refunding Bonds Series 2011B
    3.50%               08/15/19  (a)(e)     1,535,000       1,682,468  
GO Refunding Bonds Series 2011B
    4.00%               08/15/21  (a)(e)     1,885,000       2,118,457  
GO Refunding Bonds Series 2011B
    4.00%               08/15/22  (a)(e)     800,000       899,784  
Univ of Idaho
General RB Series 2014
    5.00%               04/01/21       350,000       415,632  
General RB Series 2014
    5.00%               04/01/24  (b)     200,000       236,652  
General RB Series 2014
    5.00%               04/01/26  (b)     300,000       350,013  
                                         
                                      5,703,006  
 
ILLINOIS 5.4%
Arlington Heights Park District
GO Refunding Bonds Series 2010B
    2.00%               12/01/15       200,000       203,294  
Bellwood Village
GO Refunding Bonds Series 2014
    4.00%               12/01/21       500,000       544,635  
GO Refunding Bonds Series 2014
    5.00%               12/01/32  (b)     2,250,000       2,468,115  
Chicago
GO Refunding Bonds Series 2008A
    4.00%               01/01/20  (b)     300,000       311,532  
GO Refunding Bonds Series 2014A
    5.00%               01/01/23       1,920,000       2,099,424  
GO Refunding Bonds Series 2014A
    5.00%               01/01/25  (b)     1,000,000       1,069,660  
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D
    5.00%               01/01/17  (e)     1,000,000       1,091,210  
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D
    5.00%               01/01/18  (e)     1,200,000       1,345,176  
Passenger Facility Charge Refunding RB (O’Hare) Series 2010D
    5.00%               01/01/19  (e)     750,000       860,055  
Passenger Facility Charge Refunding RB (O’Hare) Series 2012A
    5.00%               01/01/31  (b)(e)     4,950,000       5,562,909  
Chicago Park District
LT GO Refunding Bonds Series 2014D
    5.00%               01/01/21       1,000,000       1,167,800  
Community Unit SD No. 300
GO Refunding Bonds Series 2013
    5.25%               01/01/31  (b)     4,940,000       5,594,698  
Illinois
GO Bonds Series March 2012
    5.00%               03/01/20       1,000,000       1,121,400  
GO Bonds Series May 2014
    5.00%               05/01/34  (b)     500,000       533,060  
GO Bonds Series May 2014
    5.00%               05/01/35  (b)     1,000,000       1,062,110  
GO Refunding Bonds Series February 2010
    5.00%               01/01/18       2,325,000       2,560,639  
GO Refunding Bonds Series June 2006
    5.00%               01/01/19       1,220,000       1,357,750  
Sales Tax Jr Obligation Bonds Series June 2010
    5.00%               06/15/20       400,000       471,476  
Illinois Finance Auth
RB (Ascension Health Alliance) Series 2012E2
    5.00%               11/15/42  (b)     1,300,000       1,436,344  
Univ of Illinois
Health Services Facilities System RB Series 2013
    6.00%               10/01/30  (b)     3,085,000       3,656,681  
                                         
                                      34,517,968  
 
INDIANA 1.8%
Indiana Finance Auth
Educational Facilities RB (Butler Univ) Series 2014
    5.00%               02/01/20       245,000       282,189  
Educational Facilities RB (Butler Univ) Series 2014
    5.00%               02/01/21       250,000       289,703  
Educational Facilities RB (Butler Univ) Series 2014
    5.00%               02/01/22       320,000       372,080  
Educational Facilities RB (Butler Univ) Series 2014
    5.00%               02/01/23       380,000       441,465  
Educational Facilities RB (Butler Univ) Series 2014
    4.00%               02/01/36  (b)     710,000       700,358  
Educational Facilities Refunding RB (Butler Univ) Series 2012A
    5.00%               02/01/22       700,000       813,925  
Educational Facilities Refunding RB (Butler Univ) Series 2012A
    5.00%               02/01/24  (b)     1,940,000       2,258,858  
Hospital RB (King’s Daughters’ Health) Series 2010
    4.50%               08/15/15       1,370,000       1,398,044  
RB (Community Foundation of Northwest IN) Series 2012
    5.00%               03/01/16       400,000       419,764  
RB (Community Foundation of Northwest IN) Series 2012
    5.00%               03/01/17       480,000       519,134  
RB (Community Foundation of Northwest IN) Series 2012
    5.00%               03/01/18       1,000,000       1,107,090  
 
 
 
6 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
RB (Community Foundation of Northwest IN) Series 2012
    5.00%               03/01/19       1,000,000       1,126,240  
State Revolving Fund Refunding Bonds Series 2010A
    5.00%               02/01/19       945,000       1,098,940  
Indiana Health Facility Financing Auth
Sub RB (Ascension Health) Series 2005A5
    2.00%               11/01/27  (b)     1,000,000       1,034,110  
                                         
                                      11,861,900  
 
IOWA 0.1%
Iowa
Special Obligation Bonds Series 2010
    5.00%               06/15/25  (b)     700,000       817,068  
 
KANSAS 0.2%
Butler Cnty USD
GO Refunding Bonds Series 2014
    4.00%               09/01/22       500,000       561,130  
Kansas Development Finance Auth
Hospital RB (Adventist Health/Sunbelt) Series 2009D
    5.00%               11/15/15       185,000       193,318  
Olathe
Health Facilities RB (Olathe Medical Center) Series 2012A
    4.00%               09/01/20       115,000       126,394  
Health Facilities RB (Olathe Medical Center) Series 2012A
    4.00%               09/01/21       220,000       241,208  
                                         
                                      1,122,050  
 
KENTUCKY 0.7%
Kentucky Economic Development Finance Auth
Hospital RB (Baptist Healthcare) Series 2009A
    5.00%               08/15/18       750,000       848,250  
RB (Catholic Health Initiatives) Series 2009B
    2.70%               05/01/39  (b)     2,000,000       2,009,300  
Kentucky State Property & Buildings Commission
Refunding RB Series A
    5.00%               08/01/20       1,210,000       1,429,361  
                                         
                                      4,286,911  
 
LOUISIANA 0.2%
New Orleans
Sewerage Service Refunding RB Series 2014
    5.00%               06/01/20       550,000       639,864  
Sewerage Service Refunding RB Series 2014
    5.00%               06/01/21       400,000       467,096  
Sewerage Service Refunding RB Series 2014
    5.00%               06/01/22       250,000       293,048  
                                         
                                      1,400,008  
 
MARYLAND 0.8%
Baltimore
Water RB Series 2013A
    5.00%               07/01/19       750,000       877,492  
Water RB Series 2013A
    5.00%               07/01/20       150,000       178,236  
Water RB Series 2013A
    5.00%               07/01/21       450,000       540,999  
Maryland Community Development Admin
Housing RB Series 1996A
    5.88%               07/01/16  (b)     25,000       25,083  
Maryland Health & Higher Educational Facilities Auth
RB (Frederick Memorial Hospital) Series 2012A
    5.00%               07/01/20       335,000       384,098  
RB (Frederick Memorial Hospital) Series 2012A
    5.00%               07/01/27  (b)     450,000       502,272  
RB (Loyola Univ) Series 2014
    4.00%               10/01/30  (b)     500,000       532,440  
RB (Loyola Univ) Series 2014
    4.00%               10/01/31  (b)     310,000       328,231  
RB (Loyola Univ) Series 2014
    4.00%               10/01/33  (b)     350,000       367,878  
RB (Loyola Univ) Series 2014
    4.00%               10/01/39  (b)     1,500,000       1,551,180  
                                         
                                      5,287,909  
 
MASSACHUSETTS 0.8%
Chatham
GO Refunding Bonds
    5.00%               07/01/17  (e)     245,000       272,646  
Massachusetts Development Finance Agency
RB (New England Conservatory of Music) Series 2008
    4.00%               07/01/15  (g)     325,000       332,387  
RB (Tufts Medical Center) Series 2011I
    5.00%               01/01/17       1,000,000       1,071,150  
RB (Tufts Medical Center) Series 2011I
    5.00%               01/01/18       885,000       970,624  
Massachusetts Health & Educational Facilities Auth
RB (Amherst College) Series H
    0.80%               11/01/33  (b)     2,125,000       2,125,340  
 
 
 
 7

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Massachusetts Turnpike Auth
Turnpike RB Series 1993A
    5.00%               01/01/20  (g)     635,000       706,012  
                                         
                                      5,478,159  
 
MICHIGAN 2.8%
Grand Rapids
Sanitary Sewer System Refunding RB Series 2010
    5.00%               01/01/25       700,000       866,138  
Sanitary Sewer System Refunding RB Series 2010
    5.00%               01/01/27       1,445,000       1,807,074  
Sanitary Sewer System Refunding RB Series 2013
    5.00%               01/01/24  (b)     50,000       60,428  
Sanitary Sewer System Refunding RB Series 2013
    5.00%               01/01/25  (b)     135,000       161,935  
Karegnondi Water Auth
Water Supply System Bonds Series 2014A
    5.00%               11/01/24  (b)     1,695,000       1,980,574  
Water Supply System Bonds Series 2014A
    5.00%               11/01/25  (b)     2,625,000       3,031,087  
Michigan
Refunding Bonds Series 2009
    5.00%               11/01/22  (b)     2,200,000       2,546,016  
Michigan Finance Auth
Refunding RB (Trinity Health) Series 2010A
    5.00%               12/01/15       1,000,000       1,046,970  
Michigan State Hospital Finance Auth
Refunding RB (Trinity Health) Series 2008A1
    5.25%               12/01/15       1,500,000       1,574,220  
Troy
LT GO Bonds Series 2013
    5.00%               11/01/22  (b)     225,000       267,853  
LT GO Bonds Series 2013
    5.00%               11/01/23  (b)     150,000       176,607  
LT GO Bonds Series 2013
    5.00%               11/01/25  (b)     200,000       232,528  
LT GO Bonds Series 2013
    5.00%               11/01/26  (b)     250,000       289,395  
Wayne Cnty Airport Auth
Airport RB Series 2014B
    5.00%               12/01/32  (b)     600,000       683,868  
Airport RB Series 2014B
    5.00%               12/01/33  (b)     825,000       938,058  
Airport RB Series 2014B
    5.00%               12/01/34  (b)     1,145,000       1,298,796  
Western Townships Utilities Auth
LT GO Refunding Bonds Series 2012
    4.00%               01/01/20       700,000       782,369  
                                         
                                      17,743,916  
 
MINNESOTA 1.7%
Mahtomedi ISD No. 832
GO Refunding Bonds Series 2014A
    4.00%               02/01/20       1,945,000       2,199,036  
GO Refunding Bonds Series 2014A
    5.00%               02/01/21       600,000       717,354  
GO Refunding Bonds Series 2014A
    5.00%               02/01/22       500,000       603,515  
Minnetonka ISD No. 276
GO Refunding Bonds Series 2013H
    2.00%               02/01/17       300,000       309,852  
GO Refunding Bonds Series 2013H
    4.00%               02/01/22       960,000       1,098,106  
Olmsted Cnty
GO Refunding Bonds Series 2012A
    4.00%               02/01/20       1,765,000       2,009,099  
Shakopee ISD No. 720
GO Refunding Bonds Series 2012A
    4.00%               02/01/19       790,000       884,065  
GO Refunding Bonds Series 2012A
    5.00%               02/01/21       1,000,000       1,197,530  
St. Paul Port Authority
Lease Refunding RB Series 2013-3
    5.00%               12/01/24  (b)     540,000       650,781  
Univ of Minnesota
GO Bonds Series 2011D
    5.00%               12/01/20       220,000       265,096  
GO Bonds Series 2011D
    5.00%               12/01/21       425,000       517,391  
GO Bonds Series 2013A
    4.00%               02/01/20       595,000       676,652  
                                         
                                      11,128,477  
 
MISSISSIPPI 1.4%
Mississippi Development Bank
Special Obligation Bonds (Jackson Water & Sewer) Series 2013
    6.88%               12/01/40  (b)     4,250,000       5,614,505  
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A
    5.00%               04/01/15       250,000       253,677  
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A
    5.00%               04/01/16       400,000       421,376  
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A
    5.00%               04/01/17       50,000       54,132  
Special Obligation Refunding Bonds (Jackson Public SD) Series 2012A
    5.00%               04/01/28  (b)     750,000       843,150  
 
 
 
8 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Mississippi Home Corp
Homeownership Mortgage RB Series 2011A
    4.50%               06/01/25  (b)     1,625,000       1,756,154  
                                         
                                      8,942,994  
 
MISSOURI 1.6%
Boone Cnty
Hospital Refunding RB (Boone Hospital Center) Series 2012
    4.00%               08/01/18       400,000       433,844  
Butler Cnty SD R1
Lease Participation Certificates Series 2014
    3.00%               03/01/18       200,000       211,814  
Lease Participation Certificates Series 2014
    4.00%               03/01/20       200,000       222,070  
Lease Participation Certificates Series 2014
    4.00%               03/01/21       200,000       222,660  
Lease Participation Certificates Series 2014
    5.00%               03/01/23       200,000       237,374  
Lease Participation Certificates Series 2014
    5.00%               03/01/24       200,000       238,388  
Missouri Health & Educational Facilities Auth
RB (St. Louis College of Pharmacy) Series 2013
    5.00%               05/01/18       1,200,000       1,334,256  
Sr Living Facilities RB (Lutheran Sr Services) Series 2014A
    5.00%               02/01/21       565,000       649,015  
Sr Living Facilities RB (Lutheran Sr Services) Series 2014A
    5.00%               02/01/22       540,000       622,296  
Sr Living Facilities RB (Lutheran Sr Services) Series 2014A
    5.00%               02/01/23       585,000       668,854  
Sr Living Facilities RB (Lutheran Sr Services) Series 2014A
    5.00%               02/01/24       1,675,000       1,923,637  
Sr Living Facilities RB (Lutheran Sr Services) Series 2014A
    5.00%               02/01/25  (b)     1,760,000       2,003,056  
St. Charles SD
GO Refunding Bonds Series 2011
    4.00%               03/01/17  (a)     1,300,000       1,394,900  
                                         
                                      10,162,164  
 
NEBRASKA 0.7%
Nebraska Investment Finance Auth
S/F Housing RB Series 2013A
    2.50%               09/01/34  (b)     1,335,000       1,382,633  
S/F Housing RB Series 2013C
    2.50%               03/01/35  (b)     1,935,000       1,987,168  
S/F Housing RB Series 2013E
    3.00%               03/01/43  (b)     845,000       878,572  
Nebraska Public Power District
General RB Series 2010C
    5.00%               01/01/19       250,000       288,197  
                                         
                                      4,536,570  
 
NEVADA 2.4%
Carson City
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012
    4.00%               09/01/15       370,000       378,140  
Hospital Refunding RB (Carson Tahoe Regional Healthcare) Series 2012
    5.00%               09/01/18       1,265,000       1,408,147  
Clark Cnty
Airport Passenger Facility Charge Sub Lien RB Series 2008A
    5.00%               07/01/15  (e)     1,115,000       1,146,934  
Airport System Jr Sub Lien Revenue Notes Series 2014B
    5.00%               07/01/18       2,500,000       2,851,425  
Airport System RB Sr Series 2010D
    5.00%               07/01/17  (e)     1,000,000       1,110,380  
Airport System RB Sr Series 2010D
    5.00%               07/01/18  (e)     1,770,000       2,020,154  
Nevada
Highway Improvement RB Series 2004
    5.50%               12/01/18  (b)(g)     340,000       340,153  
Nevada System of Higher Education
Univ RB Series 2011A
    5.00%               07/01/18       5,375,000       6,169,586  
                                         
                                      15,424,919  
 
NEW HAMPSHIRE 0.4%
New Hampshire Health & Education Facilities Auth
RB (Dartmouth College) Series 2009
    5.00%               06/01/19       180,000       211,097  
RB (Dartmouth-Hitchcock Obligated Group) Series 2009
    6.00%               08/01/38  (b)     400,000       462,636  
New Hampshire HFA
S/F Mortgage Acquisition RB Series 2008E
    6.63%               07/01/38  (b)     720,000       780,890  
S/F Mortgage Acquisition RB Series 2011E
    4.50%               01/01/28  (b)     1,080,000       1,146,096  
                                         
                                      2,600,719  
 
NEW JERSEY 4.4%
Cranbury Township
General Improvement Refunding Bonds
    2.75%               12/01/15  (e)     430,000       440,900  
General Improvement Refunding Bonds
    3.00%               12/01/16       320,000       336,186  
 
 
 
 9

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
General Improvement Refunding Bonds
    3.00%               12/01/17       285,000       303,992  
General Improvement Refunding Bonds
    4.00%               12/01/18       400,000       446,220  
Flemington-Raritan Regional SD
GO Refunding Bonds Series 2014
    4.00%               06/15/20       250,000       282,880  
GO Refunding Bonds Series 2014
    4.00%               06/15/21       985,000       1,118,310  
GO Refunding Bonds Series 2014
    4.00%               06/15/22       635,000       721,544  
GO Refunding Bonds Series 2014
    4.00%               06/15/23       500,000       570,675  
Gloucester Cnty Improvement Auth
Refunding RB Series 2012
    4.00%               12/01/17       425,000       462,183  
Refunding RB Series 2012
    4.00%               12/01/18       465,000       513,523  
Refunding RB Series 2012
    4.00%               12/01/19       485,000       538,534  
Refunding RB Series 2012
    4.00%               12/01/20       510,000       567,926  
Refunding RB Series 2012
    4.00%               12/01/21       355,000       393,446  
Refunding RB Series 2012
    4.00%               12/01/22       480,000       534,475  
Mercer Cnty Improvement Auth
Refunding RB Series 2011
    4.00%               09/01/15       1,000,000       1,028,250  
Refunding RB Series 2011
    4.00%               09/01/16       65,000       68,951  
Refunding RB Series 2011
    4.00%               09/01/17       1,620,000       1,763,662  
Middlesex Cnty
Refunding COP Series 2011
    4.00%               06/15/20       900,000       998,802  
Refunding COP Series 2011
    4.00%               06/15/21       265,000       293,249  
Middlesex Cnty Improvement Auth
Lease RB Series 2008
    4.00%               12/15/15       415,000       431,662  
Lease Refunding RB Series 2010
    3.00%               07/01/16       225,000       234,547  
RB Series 2011
    3.00%               09/15/16       1,270,000       1,330,046  
Refunding RB Series 2011
    4.00%               09/15/21       625,000       712,269  
Monmouth Cnty Improvement Auth
Governmental Loan RB Series 2008
    5.25%               12/01/18       85,000       99,499  
Morris Cnty Improvement Auth
County Guaranteed Bonds Series 2012A
    3.00%               02/01/19       705,000       760,237  
County Guaranteed Bonds Series 2012A
    3.00%               02/01/20       695,000       751,900  
New Jersey
COP Series 2009A
    5.25%               06/15/29  (b)     50,000       56,015  
New Jersey Building Auth
Refunding RB Series 2009B
    4.00%               12/15/19       135,000       147,253  
New Jersey Economic Development Auth
School Facilities Construction Refunding Bonds Series 2011GG
    5.00%               09/01/16       920,000       987,786  
School Facilities Construction Refunding Bonds Series 2011GG
    5.00%               09/01/19       2,500,000       2,835,225  
New Jersey Transportation Trust Fund Auth
Transportation System Bonds Series 2001C
    5.50%               12/15/15       10,000       10,536  
Transportation System Bonds Series 2011B
    5.50%               06/15/31  (b)     100,000       115,434  
New Jersey Turnpike Auth
RB Series 2012B
    5.00%               01/01/25  (b)     2,400,000       2,811,144  
Passaic Cnty
GO Refunding Bonds Series 2011
    5.00%               05/01/17       4,180,000       4,606,653  
GO Refunding Bonds Series 2012
    4.00%               02/01/17       245,000       262,417  
GO Refunding Bonds Series 2012
    4.00%               02/01/19       500,000       552,845  
                                         
                                      28,089,176  
 
NEW MEXICO 0.3%
Bernalillo Cnty
GO Refunding Bonds Series 2010
    4.00%               02/01/19       375,000       420,143  
GO Refunding Bonds Series 2010
    4.00%               02/01/20       105,000       119,005  
New Mexico Hospital Equipment Loan Council
Hospital System RB (Presbyterian Healthcare) Series 2008A
    5.25%               08/01/15       500,000       516,280  
Hospital System RB (Presbyterian Healthcare) Series 2008A
    5.50%               08/01/16       10,000       10,811  
Santa Fe
Gross Receipt Tax Improvement & Refunding RB Series 2012A
    4.00%               06/01/18       660,000       730,501  
                                         
                                      1,796,740  
 
NEW YORK 12.4%
Buffalo
School Refunding Bonds Series 2012E
    3.00%               02/01/15       250,000       251,253  
School Refunding Bonds Series 2012E
    3.00%               02/01/16       175,000       180,446  
 
 
 
10 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Dutchess County Local Development Corp
RB (Health Quest Systems) Series 2014A
    5.00%               07/01/22       135,000       158,359  
RB (Health Quest Systems) Series 2014A
    4.00%               07/01/23       160,000       175,984  
RB (Health Quest Systems) Series 2014A
    5.00%               07/01/24       150,000       177,797  
RB (Health Quest Systems) Series 2014A
    5.00%               07/01/25  (b)     125,000       145,930  
RB (Health Quest Systems) Series 2014A
    5.00%               07/01/34  (b)     250,000       277,953  
RB (Health Quest Systems) Series 2014A
    5.00%               07/01/44  (b)     750,000       819,232  
Hempstead Local Development Corp
RB (Hofstra Univ) Series 2013
    5.00%               07/01/24  (b)     1,420,000       1,697,170  
Lake Success
GO Refunding Bonds Series 2010B
    4.00%               12/01/18       210,000       233,741  
GO Refunding Bonds Series 2010B
    4.00%               12/01/19       125,000       140,999  
Metropolitan Transportation Auth
Dedicated Tax Fund Refunding Bonds Series 2008B2
    5.00%               11/01/15       320,000       334,406  
Transportation RB Series 2014B
    5.00%               11/15/23       1,000,000       1,206,560  
Transportation RB Series 2014B
    5.00%               11/15/24  (b)     1,330,000       1,611,947  
Transportation Refunding RB Series 2012F
    5.00%               11/15/18       3,550,000       4,097,161  
Nassau Cnty Interim Finance Auth
Sales Tax Secured Bonds Series 2009A
    5.00%               11/15/18       145,000       167,440  
Nassau Cnty Local Economic Assistance Corp
RB (Catholic Health Services Long Island) Series 2014
    5.00%               07/01/21       500,000       584,970  
RB (Catholic Health Services Long Island) Series 2014
    5.00%               07/01/23       535,000       626,999  
RB (Catholic Health Services Long Island) Series 2014
    5.00%               07/01/24       425,000       500,229  
RB (Catholic Health Services Long Island) Series 2014
    5.00%               07/01/25  (b)     1,000,000       1,162,000  
RB (Catholic Health Services Long Island) Series 2014
    5.00%               07/01/26  (b)     250,000       287,470  
New York City
GO Bonds Fiscal 2006 Series F1
    5.00%               09/01/17  (b)(g)     3,035,000       3,146,627  
GO Bonds Fiscal 2006 Series F1
    5.00%               09/01/17  (b)     55,000       56,981  
GO Bonds Fiscal 2014 Series B
    5.00%               08/01/22       1,700,000       2,039,847  
GO Bonds Fiscal 2014 Series I1
    5.00%               03/01/22       4,000,000       4,773,240  
GO Bonds Fiscal 2014 Series I1
    5.00%               03/01/23       1,940,000       2,330,832  
GO Bonds Fiscal 2014 Series J
    5.00%               08/01/20       3,000,000       3,545,220  
New York City Housing Development Corp
M/F Housing RB Series 2012H
    0.95%               05/01/16       235,000       236,039  
New York City Municipal Water Finance Auth
Water & Sewer System RB Fiscal 2012 Series DD
    4.00%               06/15/18  (b)     2,500,000       2,664,475  
Water & Sewer System RB Fiscal 2014 Series CC2
    5.00%               06/15/19  (b)     1,400,000       1,580,880  
New York City Transitional Finance Auth
Future Tax Secured Sub Bonds Fiscal 2010 Series C1
    4.00%               08/01/16  (g)     1,630,000       1,727,702  
Future Tax Secured Sub Bonds Fiscal 2010 Series C1
    4.00%               08/01/16       1,370,000       1,454,666  
Future Tax Secured Sub Bonds Fiscal 2014 Series B1
    5.00%               11/01/23       3,000,000       3,688,590  
Future Tax Secured Sub RB Fiscal 2010 Series I2
    5.00%               11/01/18       900,000       1,040,895  
Future Tax Secured Sub RB Fiscal 2010 Series I2
    5.00%               11/01/20  (b)     200,000       236,868  
Future Tax Secured Sub RB Fiscal 2011 Series D1
    5.00%               02/01/35  (b)     5,535,000       6,263,129  
New York State Dormitory Auth
Master BOCES Program Lease RB (Oneida Herkimer Madison) Series 2008
    5.25%               08/15/16       650,000       700,700  
RB (Cornell Univ) Series 1990B
    5.00%               07/01/18       80,000       91,582  
RB (New York Univ Hospitals) Series 2011A
    5.00%               07/01/15       1,000,000       1,028,490  
RB (New York Univ Hospitals) Series 2011A
    5.00%               07/01/19       1,370,000       1,577,363  
State Personal Income Tax RB Series 2014A
    5.00%               02/15/18       3,000,000       3,399,750  
State Personal Income Tax RB Series 2014C
    5.00%               03/15/23       1,000,000       1,217,610  
New York State Thruway Auth
General RB Series I
    5.00%               01/01/20       500,000       584,270  
General RB Series I
    5.00%               01/01/21       1,000,000       1,183,510  
General Revenue Jr Obligations Series 2013A
    4.00%               05/01/19       1,000,000       1,100,110  
General Revenue Jr Obligations Series 2013A
    5.00%               05/01/19       2,500,000       2,890,100  
Local Highway & Bridge Service Contract Bonds Series 2009
    4.00%               04/01/16       505,000       529,159  
Local Highway & Bridge Service Contract Bonds Series 2009
    5.00%               04/01/16       1,540,000       1,635,326  
Local Highway & Bridge Service Contract Bonds Series 2009
    4.00%               04/01/17       700,000       753,557  
New York State Tobacco Settlement Financing Corp
Asset-Backed RB Series 2013A
    5.00%               06/01/21  (b)(e)     6,250,000       6,663,937  
New York State Urban Development Corp
State Personal Income Tax RB Series 2009A1
    5.00%               12/15/17       570,000       643,513  
Niagara Frontier Transportation Auth
Airport Refunding RB Series 2014B
    4.00%               04/01/16       500,000       523,575  
Airport Refunding RB Series 2014B
    5.00%               04/01/17       600,000       657,972  
 
 
 
 11

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Airport Refunding RB Series 2014B
    4.00%               04/01/18       450,000       491,382  
Airport Refunding RB Series 2014B
    5.00%               04/01/19       400,000       459,084  
North Syracuse CSD
GO Refunding Bonds Series 2012B
    4.00%               06/15/17       800,000       861,152  
Scarsdale UFSD
GO Refunding Bonds 2012
    4.00%               02/01/19       260,000       290,958  
Westchester Cnty Local Development Corp
RB (Pace Univ) Series 2014A
    5.00%               05/01/34  (b)     2,550,000       2,786,589  
                                         
                                      79,693,726  
 
NORTH CAROLINA 1.6%
Durham Cnty
COP Series 2009A
    4.00%               06/01/18       1,610,000       1,781,384  
North Carolina Housing Finance Agency
Home Ownership RB Series 2009-2
    4.25%               01/01/28  (b)     1,255,000       1,315,830  
North Carolina Medical Care Commission
Health Care Facilities Refunding RB (Blue Ridge) Series 2010A
    4.00%               01/01/15       915,000       917,626  
Health Care Facilities Refunding RB (WakeMed) Series 2012A
    5.00%               10/01/21       5,000,000       5,861,200  
Wake Cnty
GO Refunding Bonds Series 2009D
    4.00%               02/01/17       525,000       565,383  
                                         
                                      10,441,423  
 
OHIO 2.2%
Butler Cnty
Hospital Facilities RB (UC Health) Series 2010
    3.00%               11/01/15       580,000       590,504  
Cleveland Heights-Univ Heights City SD
ULT GO Bonds Series 2014
    0.00%               12/01/23  (f)     150,000       118,278  
ULT GO Bonds Series 2014
    0.00%               12/01/24  (f)     350,000       264,260  
ULT GO Bonds Series 2014
    0.00%               12/01/25  (f)     400,000       290,188  
Cleveland-Cuyahoga Cnty Port Auth
Development RB Series 2014
    5.00%               08/01/24  (d)     1,110,000       1,311,198  
Development RB Series 2014
    5.00%               08/01/44  (b)(d)     1,955,000       2,099,553  
Columbus
ULT GO Bonds Series 2011A
    5.00%               07/01/18       2,000,000       2,297,960  
Hamilton Cnty
Hospital Facilities RB (UC Health) Series 2014
    5.00%               02/01/23       500,000       583,495  
Hospital Facilities RB (UC Health) Series 2014
    5.00%               02/01/24       500,000       585,970  
Hospital Facilities RB (UC Health) Series 2014
    5.00%               02/01/25  (b)     1,000,000       1,163,100  
Toledo
GO Refunding Bonds Series 2012
    3.00%               12/01/15       1,810,000       1,857,947  
GO Refunding Bonds Series 2012
    3.00%               12/01/16       240,000       250,980  
Univ of Toledo
General Receipts Bonds Series 2011B
    5.00%               06/01/18       1,100,000       1,245,541  
General Receipts Bonds Series 2011B
    5.00%               06/01/30  (b)     805,000       890,773  
Westerville
GO LT Bonds Series 2010
    4.00%               12/01/18       365,000       407,176  
                                         
                                      13,956,923  
 
OKLAHOMA 0.6%
Grady Cnty School Finance Auth
Educational Facilities Lease RB (Bridge Creek Public Schools) Series 2008
    5.00%               09/01/16  (e)     545,000       584,562  
Oklahoma Development Finance Auth
Lease RB Series 2014A
    4.00%               06/01/27  (b)     1,335,000       1,445,685  
Lease RB Series 2014A
    5.00%               06/01/39  (b)     1,490,000       1,720,935  
                                         
                                      3,751,182  
 
OREGON 2.1%
Forest Grove
Campus Refunding RB (Pacific Univ) Series 2014A
    5.25%               05/01/34  (b)     1,625,000       1,838,411  
Campus Refunding RB (Pacific Univ) Series 2014A
    5.00%               05/01/40  (b)     850,000       937,677  
Gladstone SD No. 115
GO Refunding Bonds Series 2014
    0.00%               06/15/25  (a)(f)     1,900,000       1,385,632  
 
 
 
12 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
GO Refunding Bonds Series 2014
    0.00%               06/15/26  (a)(f)     2,490,000       1,741,357  
Jefferson Cnty SD No. 509J
GO Refunding Bonds Series 2013
    4.00%               06/15/20  (a)     1,475,000       1,664,803  
Lane Community College
GO Bonds Series 2012
    4.00%               06/15/20  (a)     2,395,000       2,718,181  
Oregon State Facilities Auth
Refunding RB (Legacy Health) Series 2011A
    5.25%               05/01/21       2,000,000       2,398,580  
Pendleton SD No. 16R
GO Bonds Series 2014B
    0.00%               06/15/25  (a)(f)     915,000       696,480  
                                         
                                      13,381,121  
 
PENNSYLVANIA 3.2%
Allegheny Cnty Higher Education Building Auth
RB (Duquesne Univ) Series 2013A
    3.00%               03/01/15       360,000       362,635  
RB (Duquesne Univ) Series 2013A
    4.00%               03/01/16       600,000       627,150  
RB (Duquesne Univ) Series 2013A
    4.00%               03/01/17       500,000       536,965  
RB (Duquesne Univ) Series 2013A
    4.00%               03/01/20       1,455,000       1,620,986  
Pennsylvania
COP Series 2010A
    3.00%               04/01/18       245,000       259,901  
COP Series 2010A
    3.05%               10/01/18       1,530,000       1,632,663  
COP Series 2010A
    3.30%               10/01/19       705,000       760,773  
COP Series 2010A
    3.50%               04/01/20       365,000       396,657  
Pennsylvania Economic Development Financing Auth
Unemployment Compensation RB Series 2012B
    5.00%               01/01/23  (b)     2,500,000       2,623,025  
Unemployment Compensation RB Series 2012B
    5.00%               07/01/23  (b)     1,900,000       1,952,972  
Pennsylvania Higher Educational Facilities Auth
RB (Temple Univ) First Series 2012
    3.00%               04/01/15       660,000       666,356  
RB (Temple Univ) First Series 2012
    4.00%               04/01/17       410,000       440,873  
RB (Temple Univ) First Series 2012
    4.00%               04/01/18       95,000       103,998  
Pennsylvania Intergovernmental Coop Auth
Philadelphia Special Tax Refunding RB Series 2010
    5.00%               06/15/18       2,000,000       2,287,500  
Philadelphia Special Tax Refunding RB Series 2010
    5.00%               06/15/20       1,070,000       1,270,860  
Philadelphia
GO Refunding Bonds Series 2008A
    5.25%               12/15/19  (b)     2,105,000       2,413,277  
Pittsburgh
GO Bonds Series 2014
    5.00%               09/01/23       550,000       663,212  
GO Refunding Bonds Series 2014B
    5.00%               09/01/18       2,000,000       2,287,520  
                                         
                                      20,907,323  
 
SOUTH CAROLINA 0.6%
Beaufort-Jasper Water & Sewer Auth
Refunding RB Series 2010B
    5.00%               03/01/22       95,000       115,096  
Refunding RB Series 2010B
    5.00%               03/01/23       495,000       605,850  
Charleston Educational Excellence Financing Corporation
Installment Purchase Refunding RB Series 2013B
    5.00%               12/01/22       1,050,000       1,280,129  
Installment Purchase Refunding RB Series 2013B
    5.00%               12/01/24  (b)     1,000,000       1,222,190  
South Carolina Educational Facilities Auth
Educational Facilities RB (Wofford College) Series 2007B
    2.00%               04/01/27  (b)     1,000,000       1,004,340  
                                         
                                      4,227,605  
 
SOUTH DAKOTA 0.1%
South Dakota Building Auth
RB Series 2011
    3.00%               06/01/15       620,000       629,145  
RB Series 2011
    3.00%               06/01/16       165,000       171,635  
RB Series 2011
    4.00%               06/01/21  (b)     55,000       59,958  
South Dakota Health & Educational Facilities Auth
RB (Sanford Health) Series 2009
    5.00%               11/01/17       100,000       111,571  
                                         
                                      972,309  
 
TENNESSEE 1.3%
Chattanooga-Hamilton Cnty Hospital Auth
Hospital Revenue & Refunding Bonds (Erlanger Health) Series 2014A
    5.00%               10/01/23  (d)     650,000       744,575  
 
 
 
 13

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Hospital Revenue & Refunding Bonds (Erlanger Health) Series 2014A
    5.00%               10/01/24  (d)     600,000       689,856  
Hospital Revenue & Refunding Bonds (Erlanger Health) Series 2014A
    5.00%               10/01/25  (b)(d)     1,000,000       1,132,840  
Hospital Revenue & Refunding Bonds (Erlanger Health) Series 2014A
    5.00%               10/01/27  (b)(d)     750,000       836,332  
Franklin Cnty Health & Educational Facilities Board
Educational Facilities Refunding RB (Univ of the South) Series 2014
    3.00%               09/01/21       250,000       265,858  
Educational Facilities Refunding RB (Univ of the South) Series 2014
    4.00%               09/01/25  (b)     400,000       434,944  
Educational Facilities Refunding RB (Univ of the South) Series 2014
    5.00%               09/01/28  (b)     225,000       259,040  
Educational Facilities Refunding RB (Univ of the South) Series 2014
    5.00%               09/01/29  (b)     200,000       228,908  
Educational Facilities Refunding RB (Univ of the South) Series 2014
    5.00%               09/01/30  (b)     350,000       399,805  
Memphis
Electric System Sub Refunding RB Series 2010
    2.50%               12/01/14       70,000       70,014  
Electric System Sub Refunding RB Series 2010
    5.00%               12/01/14       900,000       900,369  
Refunding Bonds Series 2011
    5.00%               05/01/20       2,000,000       2,379,700  
Metro Government of Nashville & Davidson Cnty Health & Educational Facilities Board
RB (Belmont Univ) Series 2012
    4.00%               11/01/21       100,000       108,552  
                                         
                                      8,450,793  
 
TEXAS 8.4%
Arlington ISD
ULT GO Bonds Series 2011A
    5.00%               02/15/36  (a)(b)(e)     3,650,000       4,190,273  
Burkburnett ISD
ULT Refunding Bonds Series 2012
    2.00%               02/15/18  (a)(b)     250,000       250,250  
Centerville ISD
ULT GO Bonds Series 2014
    5.00%               08/15/39  (a)(b)     780,000       880,261  
Collin Cnty
LT & Refunding Bonds Series 2009A
    4.00%               02/15/19  (e)     695,000       781,590  
Cypress-Fairbanks ISD
ULT GO & Refunding Bonds Series 2014C
    4.00%               02/15/17  (a)     1,800,000       1,938,636  
Dallas-Fort Worth
Airport Jt RB Series 2013B
    5.00%               11/01/38  (b)     2,300,000       2,557,945  
Airport Jt RB Series 2014C
    5.00%               11/01/22       250,000       301,183  
Airport Jt RB Series 2014C
    5.00%               11/01/23       250,000       303,610  
Airport Refunding RB Series 2012B
    5.00%               11/01/22  (b)     1,570,000       1,833,305  
Airport Refunding RB Series 2013D
    5.25%               11/01/25  (b)     650,000       778,056  
Deer Park ISD
LT Refunding Bonds Series 2014
    5.00%               02/15/30  (a)(b)     1,475,000       1,742,786  
Denver City ISD
ULT Refunding Bonds Series 2012
    2.00%               02/15/16  (a)(b)     580,000       580,795  
ULT Refunding Bonds Series 2012
    2.00%               02/15/17  (a)(b)     1,000,000       1,001,170  
ULT Refunding Bonds Series 2012
    2.00%               02/15/18  (a)(b)     1,220,000       1,221,110  
ULT Refunding Bonds Series 2012
    2.00%               02/15/19  (a)(b)     1,775,000       1,776,242  
Falls City ISD
ULT GO Bonds Series 2014
    5.00%               08/15/30  (a)(b)     930,000       1,084,287  
ULT GO Bonds Series 2014
    5.00%               08/15/34  (a)(b)     830,000       906,360  
Fort Bend Cnty
LT & Refunding Bonds Series 2009
    5.00%               03/01/17       100,000       110,106  
Fort Worth
Tax & Parking Revenue Bonds Series 2009
    4.45%               03/01/18  (c)     1,430,000       1,528,026  
Garland ISD
ULT Refunding Bonds Series 2012A
    3.00%               02/15/23  (a)(b)     1,525,000       1,528,233  
Gonzales ISD
ULT GO Bonds Series 2014
    5.00%               02/01/23  (a)     205,000       248,292  
Houston Community College System
LT Refunding Bonds Series 2011
    5.00%               02/15/17       500,000       549,620  
LT Refunding Bonds Series 2011
    5.00%               02/15/18       1,000,000       1,133,590  
Klein ISD
ULT Refunding Bonds Series 2009A
    4.00%               08/01/17       560,000       610,288  
Lewisville ISD
ULT GO Bonds Series 2014A
    2.00%               08/15/19  (a)     500,000       518,690  
ULT GO Bonds Series 2014A
    4.00%               08/15/20  (a)     745,000       847,028  
ULT GO Bonds Series 2014A
    4.00%               08/15/21  (a)     795,000       906,324  
ULT GO Bonds Series 2014A
    4.00%               08/15/22  (a)     1,000,000       1,143,010  
ULT GO Bonds Series 2014A
    4.00%               08/15/23  (a)     1,000,000       1,142,690  
Loop ISD
ULT GO Bonds Series 2012
    2.00%               02/15/18  (a)(b)     350,000       350,319  
 
 
 
14 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Lubbock Health Facilities Development Corp
Refunding RB (St. Joseph Health) Series 2008B
    5.00%               07/01/20       1,750,000       2,030,945  
Midland ISD
ULT Refunding Bonds Series 2011
    5.00%               02/15/18  (a)     115,000       130,354  
ULT Refunding Bonds Series 2011
    4.00%               02/15/20  (a)     860,000       975,876  
ULT Refunding Bonds Series 2012
    4.00%               02/15/20  (a)     150,000       169,818  
Midlothian ISD
ULT Refunding Bonds Series 2014A
    5.00%               02/15/31  (a)(b)(d)     1,795,000       2,114,474  
ULT Refunding Bonds Series 2014A
    5.00%               02/15/32  (a)(b)(d)     1,885,000       2,217,156  
ULT Refunding Bonds Series 2014A
    5.00%               02/15/33  (a)(b)(d)     1,985,000       2,327,730  
Mineral Wells ISD
ULT Refunding Bonds Series 2014
    0.00%               02/15/17  (a)(f)     620,000       607,340  
North Texas Tollway Auth
System RB Series 2011A
    5.00%               09/01/21       500,000       600,720  
Plano
GO Refunding RB Series 2011
    5.00%               09/01/21       650,000       784,147  
Reagan Hospital District
LT & RB Series 2014A
    4.50%               02/01/24       1,065,000       1,160,413  
Rockwall ISD
ULT Refunding Bonds Series 2012
    5.00%               02/15/20  (a)     185,000       219,218  
ULT Refunding Bonds Series 2012
    5.00%               02/15/22  (a)(b)     450,000       537,916  
San Antonio
Electric & Gas Systems Refunding RB Series 2009D
    5.00%               02/01/17       880,000       966,346  
Sienna Plantation Levee Improvement District
ULT Levee Improvement Refunding Bonds Series 2014
    4.00%               09/01/24  (b)     500,000       554,620  
Sunnyvale ISD
ULT GO Bonds Series 2011
    5.00%               02/15/19  (a)     195,000       226,054  
ULT GO Bonds Series 2011
    3.00%               02/15/20  (a)     110,000       119,016  
ULT GO Bonds Series 2011
    5.00%               02/15/22  (a)(b)     120,000       141,965  
Tarrant Cnty Cultural Education Facilities Finance Corp
Hospital RB (Hendrick Medical Center) Series 2013
    4.00%               09/01/16       440,000       463,892  
Tatum ISD
ULT GO Bonds Series 2012
    5.00%               02/15/23  (a)(b)     400,000       460,552  
Texas State Affordable Housing Corp
S/F Mortgage RB Series 2011B
    4.45%               09/01/28  (b)     620,000       656,183  
Tomball ISD
ULT GO Bonds Series 2011
    5.00%               02/15/21  (a)     150,000       179,781  
Travis Cnty
LT Refunding Bonds Series 2009
    5.00%               03/01/18       1,000,000       1,135,230  
Williamson Cnty
LT GO Refunding Bonds Series 2011
    5.00%               02/15/21       1,000,000       1,202,720  
Wink Loving ISD
ULT GO Bonds Series 2012
    3.00%               02/15/15  (a)     700,000       704,403  
ULT GO Bonds Series 2012
    3.00%               02/15/17  (a)     450,000       474,763  
                                         
                                      53,905,707  
 
UTAH 0.3%
Riverton
RB (IHC Health Services) Series 2009
    5.00%               08/15/15       950,000       982,376  
Salt Lake Cnty
Sales Tax Refunding RB Series 2010A
    3.00%               02/01/15       725,000       728,640  
Sales Tax Refunding RB Series 2010A
    3.00%               02/01/16       250,000       257,940  
                                         
                                      1,968,956  
 
VERMONT 0.6%
Vermont HFA
Mortgage RB Series 2011A
    4.50%               02/01/26  (b)     3,475,000       3,734,270  
 
VIRGINIA 1.6%
Chesterfield Cnty Economic Development Auth
Public Facility Refunding RB Series 2010A
    4.00%               01/01/19  (e)     455,000       505,237  
Henrico Cnty
GO Refunding Bonds Series 2010
    5.00%               07/15/17       500,000       558,255  
 
 
 
 15

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Metropolitan Washington Airports Auth
Airport System RB Series 2009B
    5.00%               10/01/18  (a)(e)     825,000       946,696  
Second Sr Lien Refunding RB (Dulles Metrorail) Series 2014A
    5.00%               10/01/53  (b)     3,000,000       3,171,840  
Prince William Cnty IDA
RB (George Mason Univ) Series 2011AA
    5.00%               09/01/17       295,000       324,907  
RB (George Mason Univ) Series 2011AA
    5.50%               09/01/34  (b)     220,000       256,216  
Richmond
GO Bonds Series 2009A
    4.00%               07/15/16       85,000       90,096  
Richmond Metropolitan Auth
Expressway Refunding & RB Series 1998
    5.25%               07/15/22  (g)     1,400,000       1,653,008  
Virginia Housing Development Auth
Homeownership Mortgage Bonds Series 2010A
    4.00%               03/01/20  (b)     175,000       193,042  
Virginia Small Business Financing Auth
Refunding RB (Hampton Univ) Series 2014
    5.00%               10/01/20       1,000,000       1,160,550  
Refunding RB (Hampton Univ) Series 2014
    5.00%               10/01/21       765,000       892,671  
Refunding RB (Hampton Univ) Series 2014
    4.00%               10/01/38  (b)     500,000       500,180  
                                         
                                      10,252,698  
 
WASHINGTON 2.3%
Camas SD No. 117
ULT GO Refunding Bonds 2012
    5.00%               12/01/17  (a)     2,850,000       3,217,963  
Energy Northwest
Electric Refunding RB (Project No. 3) Series 2009A
    5.25%               07/01/18       1,000,000       1,154,740  
King Cnty Public Hospital District No. 2
LT GO Refunding Bonds (EvergreenHealth) Series 2015
    5.00%               12/01/22  (d)     1,920,000       2,268,173  
LT GO Refunding Bonds (EvergreenHealth) Series 2015
    5.00%               12/01/24  (d)     690,000       829,484  
Naches Valley SD No. JT3
ULT GO Bonds Series 2014
    5.00%               12/01/22  (a)     650,000       782,386  
Ocosta SD No. 172
ULT GO Bonds 2013
    3.13%               12/01/20  (a)     65,000       69,902  
ULT GO Bonds 2013
    5.00%               12/01/23  (a)     390,000       474,669  
Washington
GO Bonds Series 1990A
    6.75%               02/01/15       225,000       227,601  
Washougal SD No. 112-6
ULT GO Refunding Bonds 2012
    5.00%               12/01/15  (a)     830,000       870,122  
ULT GO Refunding Bonds 2012
    5.00%               12/01/18  (a)     2,390,000       2,762,625  
Whidbey Island Public Hospital District
ULT GO Bonds 2013
    5.00%               12/01/19       745,000       852,779  
ULT GO Bonds 2013
    5.00%               12/01/20       720,000       827,849  
ULT GO Bonds 2013
    5.00%               12/01/22       510,000       585,750  
                                         
                                      14,924,043  
 
WEST VIRGINIA 0.1%
Mason Cnty
Pollution Control RB (Appalachian Power) Series L
    1.63%               10/01/22  (b)     1,000,000       1,004,820  
 
WISCONSIN 1.3%
Wisconsin
COP Master Lease Series B
    5.00%               09/01/20       605,000       709,871  
COP Master Lease Series B
    5.00%               03/01/21       265,000       311,584  
COP Master Lease Series B
    5.00%               09/01/21  (b)     445,000       520,339  
Wisconsin Health & Educational Facilities Auth
Health Facilities RB (UnityPoint Health) Series 2014A
    5.00%               12/01/24  (b)     1,000,000       1,193,930  
RB (Aurora Health Care) Series 2009B2
    5.13%               08/15/27  (b)     1,250,000       1,347,137  
RB (Children’s Hospital of Wisconsin) Series 2008B
    4.20%               08/15/18       75,000       83,649  
Refunding RB (Hospital Sisters Services) Series 2014A
    5.00%               11/15/22       3,500,000       4,138,015  
                                         
                                      8,304,525  
                                         
Total Fixed-Rate Obligations
(Cost $588,686,123)                             616,130,527  
                                 
                                         
                                         
 
 
 
16 

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
 
 Variable-Rate Obligations 5.5% of net assets
 
CALIFORNIA 0.6%
California
GO Bonds Series 2013C
    0.59%               12/01/28  (b)     3,600,000       3,620,196  
 
COLORADO 0.1%
Colorado Health Facilities Auth
RB (Catholic Health Initiatives) Series 2006C7
    0.25%               03/01/16  (a)(b)(c)     700,000       700,000  
 
CONNECTICUT 1.9%
Connecticut
GO Bonds Series 2011A
    0.96%               05/15/18  (e)     5,275,000       5,361,193  
GO Bonds Series 2011C
    1.14%               05/15/19       5,000,000       5,111,100  
GO Bonds Series 2012A
    1.29%               04/15/20  (e)     1,000,000       1,025,200  
GO Bonds Series 2012D
    0.81%               09/15/18       1,000,000       1,012,920  
                                         
                                      12,510,413  
 
DISTRICT OF COLUMBIA 0.5%
District of Columbia
Income Tax Secured Refunding RB Series 2011E
    0.79%               12/01/17  (b)     3,240,000       3,273,437  
 
MASSACHUSETTS 0.8%
Massachusetts Development Finance Agency
RB (Boston Univ) Series U1
    0.62%               10/01/40  (b)     1,000,000       1,001,770  
RB (Boston Univ) Series U6E
    0.59%               10/01/42  (b)     4,000,000       4,013,280  
                                         
                                      5,015,050  
 
NEW JERSEY 0.8%
New Jersey Economic Development Auth
School Facilities Construction Refunding Notes Series 2013I
    1.64%               03/01/28  (b)     5,000,000       4,987,650  
 
TEXAS 0.8%
Harris Cnty Health Facilities Development Corp
RB (Methodist Hospital) Series 2008A2
    0.04%               12/01/41  (b)     1,365,000       1,365,000  
Tarrant Cnty Cultural Education Facilities Finance Corp
RB (Texas Health Resources) Series 2008B
    0.23%               11/15/33  (b)     4,000,000       4,000,000  
                                         
                                      5,365,000  
                                         
Total Variable-Rate Obligations
(Cost $35,180,000)                             35,471,746  
                                 
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $623,861,694 and the unrealized appreciation and depreciation were $27,874,991 and ($134,412), respectively, with a net unrealized appreciation of $27,740,579.
 
(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 $2,228,026 or 0.3% of net assets.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) All or a portion of this security is designated as collateral for delayed-delivery securities.
(f) Zero coupon bond.
(g) Refunded bond.
 
 
 
 
 17

 

 
 Schwab Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
     
CCD —
  Community college district
COP —
  Certificate of participation
CSD —
  Central school district
GO —
  General obligation
HFA —
  Housing finance agency/authority
IDA —
  Industrial development agency/authority
ISD —
  Independent school district
LT —
  Limited tax
M/F —
  Multi-family
RB —
  Revenue bond
SD —
  School district
S/F —
  Single-family
UFSD —
  Union free school district
ULT —
  Unlimited tax
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.
 
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 ask 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 may be valued at amortized cost, which approximates market value.
 
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.
 
 
 
18 

 

 
 Schwab Tax-Free Bond 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.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Fixed-Rate Obligations1
    $—       $616,130,527       $—       $616,130,527  
Variable-Rate Obligations1
    —       35,471,746       —       35,471,746  
                                 
Total
    $—       $651,602,273       $—       $651,602,273  
                                 
 
     
1
  As categorized in Portfolio Holdings.
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2014.
 
REG406022NOV14
 
 
 
 19

 

Schwab Investments
Schwab California Tax-Free Bond Fund™
 
Portfolio Holdings as of November 30, 2014 (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 .9%   Fixed-Rate Obligations     388,644,326       409,554,951  
  5 .6%   Variable-Rate Obligations     24,006,803       24,099,778  
 
 
  100 .5%   Total Investments     412,651,129       433,654,729  
  (0 .5)%   Other Assets and Liabilities, Net             (2,141,785 )
 
 
  100 .0%   Net Assets             431,512,944  
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
 
 Fixed-Rate Obligations 94.9% of net assets
 
CALIFORNIA 94.6%
ABAG Finance Auth
RB (Casa de las Campanas) Series 2010
    5.13%               09/01/20  (a)(f)     3,500,000       3,913,455  
RB (Sharp HealthCare) Series 2012A
    5.00%               08/01/28  (b)(f)     235,000       265,127  
Refunding RB (Episcopal Sr Communities) Series 2012B
    3.00%               07/01/15       410,000       415,240  
Refunding RB (Episcopal Sr Communities) Series 2012B
    3.00%               07/01/16       815,000       838,708  
Refunding RB (Episcopal Sr Communities) Series 2012B
    4.00%               07/01/17       1,580,000       1,670,502  
Refunding RB (Episcopal Sr Communities) Series 2012B
    5.00%               07/01/20       530,000       602,594  
Refunding RB (Eskaton Properties) Series 2013
    3.00%               11/15/15       1,175,000       1,198,147  
Alameda Cnty Jt Powers Auth
Lease RB Series 2013A
    5.25%               12/01/25  (b)     720,000       875,736  
Lease RB Series 2013A
    5.25%               12/01/26  (b)     775,000       932,371  
Alameda Cnty Transportation Commission
LT Sales RB Series 2014
    5.00%               03/01/20       800,000       956,128  
LT Sales RB Series 2014
    5.00%               03/01/21       500,000       606,740  
Alameda Corridor Transportation Auth
Sr Lien Refunding RB Series 2013A
    5.00%               10/01/20       450,000       535,473  
Sr Lien Refunding RB Series 2013A
    5.00%               10/01/28  (b)     2,985,000       3,497,345  
Anaheim Public Financing Auth
Lease RB Series 2014A
    5.00%               05/01/21       250,000       290,895  
Lease RB Series 2014A
    5.00%               05/01/22       575,000       674,067  
Lease RB Series 2014A
    5.00%               05/01/23       500,000       590,620  
Lease RB Series 2014A
    5.00%               05/01/25  (b)     1,000,000       1,170,760  
Lease RB Series 2014A
    5.00%               05/01/39  (b)     1,000,000       1,110,610  
Lease Refunding RB Series 2008
    4.50%               08/01/17  (f)     115,000       125,659  
Bay Area Toll Auth
Toll Bridge RB Series 2012F1
    4.00%               04/01/18       600,000       666,132  
Toll Bridge RB Series 2014C
    1.88%               04/01/47  (b)     2,500,000       2,548,500  
Berkeley Joint Powers Financing Auth
Refunding Lease RB Series 2012
    4.00%               10/01/16       750,000       798,128  
Beverly Hills Public Finance Auth
Lease RB Series 2010A
    4.00%               06/01/16  (f)     100,000       105,621  
Beverly Hills USD
GO Bonds Series 2009
    0.00%               08/01/26  (c)     2,730,000       1,982,526  
Bret Harte UHSD
GO BAN 2012
    3.00%               03/15/15  (f)     2,500,000       2,518,775  
California
Economic Recovery Refunding Bonds Series 2009A
    5.00%               07/01/20  (b)(d)     5,000,000       5,911,400  
GO Bonds
    4.00%               09/01/17       1,245,000       1,359,938  
GO Bonds
    5.00%               09/01/18       3,000,000       3,458,460  
GO Bonds
    5.50%               04/01/19       1,000,000       1,188,150  
 
 
 
 1

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
GO Bonds
    5.00%               11/01/19       2,425,000       2,867,490  
GO Bonds
    5.00%               09/01/20       2,560,000       3,053,696  
GO Bonds
    5.00%               11/01/24  (b)     750,000       889,163  
GO Bonds
    5.00%               09/01/25  (b)     2,785,000       3,345,286  
GO Bonds
    5.00%               10/01/25  (b)     1,455,000       1,779,450  
GO Bonds
    5.00%               11/01/25  (b)(f)     495,000       584,397  
GO Bonds
    4.00%               12/01/26  (b)     1,000,000       1,054,000  
GO Bonds
    4.00%               12/01/27  (b)     500,000       540,865  
GO Bonds
    3.00%               12/01/32  (b)     3,000,000       3,222,780  
GO Bonds
    6.50%               04/01/33  (b)     1,425,000       1,741,179  
GO Bonds
    6.00%               11/01/35  (b)     4,190,000       5,085,193  
GO Bonds
    5.00%               09/01/36  (b)     2,635,000       3,011,937  
GO Bonds
    5.00%               09/01/42  (b)     2,000,000       2,252,080  
GO Bonds Series 2000
    5.63%               05/01/18  (b)     25,000       25,113  
GO Refunding Bonds
    5.00%               09/01/21       1,355,000       1,634,658  
GO Refunding Bonds
    5.25%               10/01/32  (b)(f)     2,965,000       3,496,180  
California Dept of Water Resources
Power Supply RB Series 2008H
    4.50%               05/01/17       1,550,000       1,701,962  
Power Supply RB Series 2010M
    4.00%               05/01/19       750,000       848,843  
Water System RB (Central Valley) Series AI
    5.00%               12/01/16       2,000,000       2,187,860  
California Educational Facilities Auth
RB (Pomona College) Series 2011
    4.00%               01/01/15  (f)     280,000       281,014  
RB (Pomona College) Series 2011
    4.00%               01/01/16  (f)     400,000       416,724  
RB (Pomona College) Series 2011
    4.00%               01/01/17  (f)     200,000       215,266  
RB (Univ of Southern California) Series 2009C
    5.25%               10/01/24  (f)     2,000,000       2,561,020  
Refunding RB (Univ of San Diego) Series 2011
    4.50%               10/01/17  (f)     1,230,000       1,339,064  
Refunding RB (Univ of San Diego) Series 2011
    5.00%               10/01/18  (f)     680,000       782,802  
California Health Facilities Financing Auth
RB (City of Hope) Series 2012A
    5.00%               11/15/21       325,000       388,586  
RB (Memorial Health Services) Series 2012A
    4.00%               10/01/17  (f)     750,000       822,735  
RB (NCROC Paradise Valley Estates) Series 2005
    4.63%               12/01/15  (a)(f)     150,000       156,042  
RB (NCROC Paradise Valley Estates) Series 2005
    5.00%               12/01/18  (a)(f)     125,000       143,533  
RB (Providence Health & Services) Series 2014A
    5.00%               10/01/21       700,000       842,947  
RB (Scripps Health) Series 2008A
    5.00%               10/01/16  (f)     2,735,000       2,969,554  
RB (St. Joseph Health) Series 2013C
    5.00%               07/01/43  (b)     2,000,000       2,348,340  
RB Series 2011A
    5.25%               02/01/20  (a)(f)     145,000       168,634  
Refunding RB (Marshall Medical Center) Series 2012A
    4.00%               11/01/16  (a)     1,330,000       1,416,663  
Refunding RB (NCROC Paradise Valley Estates) Series 2013
    3.00%               01/01/15  (a)     500,000       501,340  
Refunding RB (St Joseph Health) Series 2009C
    5.00%               07/01/34  (b)     3,000,000       3,612,810  
California HFA
M/F Housing RB III Series 2014A
    0.85%               08/01/16       1,000,000       1,000,780  
California Infrastructure & Economic Development Bank
RB (California ISO) Series 2009A
    5.25%               02/01/21  (b)(d)(f)     1,925,000       1,942,306  
RB (Sanford Consortium) Series 2010A
    4.00%               05/15/17       215,000       232,581  
RB (Sanford Consortium) Series 2010A
    4.00%               05/15/18       775,000       856,367  
RB (Sanford Consortium) Series 2010A
    5.00%               05/15/20       245,000       290,528  
RB (USC) Series 2010
    5.00%               12/01/19       470,000       558,821  
RB (USC) Series 2010
    3.25%               12/01/21  (b)     750,000       817,545  
RB (USC) Series 2010
    5.00%               12/01/23  (b)     720,000       853,344  
Refunding RB (Cal ISO Corp) Series 2013
    5.00%               02/01/30  (b)     1,300,000       1,468,597  
California Municipal Finance Auth
Refunding RB (Anaheim Electric) Series 2014A
    5.00%               10/01/19       500,000       591,425  
Refunding RB (Anaheim Electric) Series 2014A
    5.00%               10/01/21       1,100,000       1,338,645  
California Public Works Board
Lease RB (Univ of California) Series 2011G
    5.25%               12/01/26  (b)(d)     1,000,000       1,238,250  
Lease RB Series 1993E
    5.50%               06/01/15       125,000       127,456  
Lease RB Series 2011C
    5.75%               10/01/31  (b)     1,000,000       1,204,920  
Lease RB Series 2011D
    5.00%               12/01/22  (b)     1,000,000       1,180,750  
Lease RB Series 2012A
    5.00%               04/01/23  (b)     2,050,000       2,414,715  
Lease RB Series 2012G
    4.00%               11/01/16       885,000       945,640  
Lease RB Series 2013F
    4.00%               09/01/16       500,000       531,605  
Lease RB Series 2013F
    3.00%               09/01/17       750,000       796,778  
Lease RB Series 2013G
    5.00%               09/01/16       500,000       540,265  
Lease RB Series 2013G
    5.00%               09/01/17       600,000       670,134  
Lease RB Series 2013I
    5.00%               11/01/19       1,250,000       1,463,275  
Lease RB Series 2013I
    5.00%               11/01/20       1,335,000       1,583,777  
 
 
 
2 

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Lease RB Series 2014B
    5.00%               10/01/23       1,700,000       2,051,305  
Lease RB Series 2014B
    5.00%               10/01/24       1,000,000       1,214,450  
Lease Refunding RB Series 2012C
    5.00%               06/01/18       1,500,000       1,711,830  
Lease Refunding RB Series 2014G
    5.00%               01/01/20       5,000,000       5,850,700  
California Statewide Communities Development Auth
RB (Cottage Health) Series 2010
    5.00%               11/01/17       325,000       363,207  
RB (Cottage Health) Series 2010
    5.00%               11/01/18       350,000       400,106  
RB (Kaiser Permanente) Series 2009A
    4.63%               04/01/19       100,000       113,765  
RB (St. Joseph Health) Series 2000
    4.50%               07/01/18       3,190,000       3,396,265  
RB (Sutter Health) Series 2011A
    6.00%               08/15/42  (b)     875,000       1,054,926  
RB (The Redwoods) Series 2013
    3.00%               11/15/16  (a)     200,000       209,086  
RB (The Redwoods) Series 2013
    3.00%               11/15/17  (a)     325,000       344,819  
RB (The Redwoods) Series 2013
    4.00%               11/15/19  (a)     150,000       167,607  
RB (The Redwoods) Series 2013
    4.00%               11/15/20  (a)     125,000       140,571  
RB (The Redwoods) Series 2013
    5.00%               11/15/22  (a)     385,000       460,333  
RB (The Redwoods) Series 2013
    5.00%               11/15/23  (a)     130,000       156,273  
Refunding RB (Episcopal Communities & Services) Series 2012
    5.00%               05/15/21       300,000       351,486  
Refunding RB (Episcopal Communities & Services) Series 2012
    5.00%               05/15/24  (b)     440,000       503,646  
Refunding RB (Huntington Memorial Hospital) Series 2014B
    5.00%               07/01/20  (e)     600,000       703,788  
Refunding RB (Huntington Memorial Hospital) Series 2014B
    5.00%               07/01/21  (e)     550,000       647,158  
Refunding RB (Huntington Memorial Hospital) Series 2014B
    5.00%               07/01/22  (e)     400,000       472,552  
Sr Living Health Facility RB (LA Jewish Home for the Aging) Series 2014C
    2.50%               08/01/20  (a)(b)     3,500,000       3,581,935  
Centinela Valley UHSD
GO Bonds Series 2013B
    6.00%               08/01/36  (b)     1,400,000       1,722,854  
Centralia SD
GO Refunding Bonds Series 2012
    4.00%               08/01/21       100,000       112,989  
GO Refunding Bonds Series 2012
    4.00%               08/01/24  (b)     75,000       85,736  
Citrus Heights Water District
Revenue Refunding COP Series 2010
    4.00%               10/01/20       120,000       131,672  
Clovis Wastewater
Wastewater Refunding RB Series 2013
    5.00%               08/01/22       515,000       616,043  
Compton CCD
GO Refunding Bonds Series 2014
    5.00%               07/01/24       1,000,000       1,195,540  
GO Refunding Bonds Series 2014
    5.00%               07/01/28  (b)     3,695,000       4,268,575  
Contra Costa CCD
GO Bonds Series 2014A
    3.00%               08/01/23       800,000       861,656  
GO Bonds Series 2014A
    4.00%               08/01/25  (b)     325,000       370,331  
GO Bonds Series 2014A
    4.00%               08/01/26  (b)     350,000       391,034  
GO Refunding Bonds Series 2011
    5.00%               08/01/22  (b)     975,000       1,173,851  
Contra Costa Transportation Auth
Sales Tax RB Series 2012B
    5.00%               03/01/24  (b)     1,500,000       1,780,785  
Sales Tax RB Series 2012B
    5.00%               03/01/25  (b)     500,000       591,920  
Cotati-Rohnert Park USD
GO Refunding Bonds 2013
    4.00%               08/01/15       775,000       793,910  
GO Refunding Bonds Series 2014A
    5.00%               08/01/25  (b)     700,000       836,423  
GO Refunding Bonds Series 2014A
    5.00%               08/01/26  (b)     765,000       905,508  
GO Refunding Bonds Series 2014B
    5.00%               08/01/22  (e)     915,000       1,055,718  
GO Refunding Bonds Series 2014B
    5.00%               08/01/23  (e)     2,105,000       2,436,832  
Cupertino Union SD
GO Refunding Bonds Series 2011A
    5.00%               08/01/23  (b)     190,000       228,441  
GO Refunding Bonds Series 2011A
    5.00%               08/01/24  (b)     285,000       340,481  
GO Refunding Bonds Series 2011A
    5.00%               08/01/26  (b)     50,000       59,046  
El Camino CCD
GO Bonds Series 2012C
    0.00%               08/01/22  (c)     1,580,000       1,337,960  
El Dorado Irrigation District
Refunding RB Series 2014A
    4.00%               03/01/17       750,000       808,028  
Refunding RB Series 2014A
    5.00%               03/01/18       1,000,000       1,134,090  
Refunding RB Series 2014A
    5.00%               03/01/19       585,000       679,273  
Refunding RB Series 2014A
    5.00%               03/01/34  (b)     800,000       911,464  
Emeryville Successor RDA
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/19       1,000,000       1,170,560  
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/22       2,000,000       2,416,080  
Evergreen Elementary SD
GO Bonds Series 2009B
    0.00%               08/01/27  (c)     3,255,000       2,164,966  
Franklin-McKinley SD
GO Bonds Series C
    0.00%               08/01/40  (b)(c)     1,000,000       241,120  
 
 
 
 3

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
GO Refunding Bonds Series 2014
    4.00%               08/01/21       400,000       454,416  
GO Refunding Bonds Series 2014
    5.00%               08/01/22       800,000       966,904  
GO Refunding Bonds Series 2014
    5.00%               08/01/23       900,000       1,095,696  
Fresno
Airport Refunding RB Series 2013A
    4.00%               07/01/20       300,000       330,174  
Airport Refunding RB Series 2013A
    5.00%               07/01/22       350,000       408,583  
Garden Grove USD
GO Bonds Series C
    5.00%               08/01/27  (b)     470,000       558,421  
GO Bonds Series C
    5.00%               08/01/28  (b)     400,000       472,580  
Glendale Successor Redevelopment Agency
Sub Tax Allocation Refunding Bonds Series 2013
    4.00%               12/01/19       900,000       1,011,006  
Sub Tax Allocation Refunding Bonds Series 2013
    5.00%               12/01/21       1,250,000       1,496,937  
Golden West Schools Financing Auth
GO RB (Rowland USD) Series 2005
    5.25%               09/01/24       1,675,000       2,076,765  
Goleta Water District
Refunding Revenue COP Series 2014A
    5.00%               12/01/19       250,000       295,173  
Refunding Revenue COP Series 2014A
    5.00%               12/01/21       340,000       409,615  
Refunding Revenue COP Series 2014A
    5.00%               12/01/22       375,000       455,955  
Refunding Revenue COP Series 2014A
    5.00%               12/01/24  (b)     1,000,000       1,212,420  
Healdsburg Redevelopment Agency
Tax Allocation Bonds (Sotoyome) Series 2010
    5.25%               08/01/30  (b)     1,000,000       1,154,640  
Healdsburg School Facilities Financing Auth
GO RB Series 2014
    5.00%               07/15/17       275,000       307,131  
GO RB Series 2014
    5.00%               07/15/22       100,000       121,021  
GO RB Series 2014
    5.00%               07/15/24       150,000       184,464  
GO RB Series 2014
    5.00%               07/15/25  (b)     450,000       546,467  
GO RB Series 2014
    4.00%               07/15/39  (b)     740,000       758,123  
Imperial Irrigation District
Electric System Refunding RB Series 2011C
    5.00%               11/01/15       365,000       381,326  
Electric System Refunding RB Series 2011C
    5.00%               11/01/18       425,000       490,348  
Electric System Refunding RB Series 2011D
    5.00%               11/01/19       720,000       845,719  
Electric System Refunding RB Series 2011D
    5.00%               11/01/20       750,000       892,477  
Inglewood USD
GO Bonds Series A
    5.00%               08/01/15       1,880,000       1,940,066  
GO Bonds Series A
    5.00%               08/01/16       150,000       161,249  
GO Bonds Series A
    5.00%               08/01/17       205,000       225,024  
GO Bonds Series A
    6.25%               08/01/37  (b)     2,110,000       2,569,896  
Jurupa Public Finance Auth
Special Tax RB Series 2014A
    5.00%               09/01/19       475,000       545,984  
Special Tax RB Series 2014A
    5.00%               09/01/20       550,000       643,044  
Kern Cnty
Refunding COP 2011 Series A
    5.00%               11/01/17       1,460,000       1,613,256  
Refunding COP 2011 Series A
    5.00%               11/01/18       1,235,000       1,393,660  
Larkspur-Corte Madera SD
GO Bonds Series 2014A
    5.00%               08/01/30  (b)     1,550,000       1,862,681  
Livermore Valley Jt USD
GO Refunding Bonds Series 2014
    5.00%               08/01/25  (b)     2,000,000       2,419,000  
Lodi Public Financing Auth
Wastewater Refunding RB Series 2012A
    4.00%               10/01/16       300,000       319,080  
Wastewater Refunding RB Series 2012A
    4.00%               10/01/19       450,000       499,001  
Wastewater Refunding RB Series 2012A
    4.00%               10/01/20       450,000       500,819  
Wastewater Refunding RB Series 2012A
    4.00%               10/01/21       725,000       802,836  
Long Beach CCD
GO Refunding Bonds Series 2014E
    5.00%               05/01/27  (b)     1,000,000       1,218,360  
GO Refunding Bonds Series 2014E
    5.00%               05/01/28  (b)     1,000,000       1,207,280  
Los Angeles
Judgment Obligation Bonds Series 2010A
    5.00%               06/01/20       5,150,000       6,039,817  
Wastewater System Sub Refunding RB Series 2012B
    4.00%               06/01/18       150,000       166,821  
Wastewater System Sub Refunding RB Series 2012B
    5.00%               06/01/20       500,000       598,600  
Wastewater System Sub Refunding RB Series 2012B
    4.00%               06/01/22       440,000       508,680  
Los Angeles CCD
GO Bonds Series 2009A
    6.00%               08/01/33  (b)     1,545,000       1,859,670  
Los Angeles Cnty Metropolitan Transportation Auth
Sr Refunding RB Series 2014A
    5.00%               07/01/30  (b)     2,645,000       3,116,418  
 
 
 
4 

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Los Angeles Cnty Redevelopment Refunding Auth
Tax Allocation Refunding RB (South Gate Redevelopment Project No.1) Series 2014A
    4.00%               09/01/17       1,710,000       1,864,909  
Tax Allocation Refunding RB (South Gate Redevelopment Project No.1) Series 2014A
    4.00%               09/01/18       830,000       922,620  
Tax Allocation Refunding RB (South Gate Redevelopment Project No.1) Series 2014A
    5.00%               09/01/20       1,000,000       1,187,180  
Tax Allocation Refunding RB (South Gate Redevelopment Project No.1) Series 2014A
    5.00%               09/01/24       1,390,000       1,693,896  
Los Angeles Cnty Regional Financing Auth
RB (MonteCedro) Series 2014B1
    3.00%               11/15/21  (a)(b)     750,000       763,500  
RB (MonteCedro) Series 2014B3
    2.50%               11/15/20  (a)(b)     750,000       761,865  
Los Angeles Community Facilities District #4
Special Tax Refunding Bonds (Playa Vista) Series 2014
    5.00%               09/01/22       750,000       893,197  
Special Tax Refunding Bonds (Playa Vista) Series 2014
    5.00%               09/01/23       1,000,000       1,200,290  
Special Tax Refunding Bonds (Playa Vista) Series 2014
    5.00%               09/01/24       1,250,000       1,504,437  
Los Angeles Dept of Airports
Airport Sub RB Series 2010B
    5.00%               05/15/21  (b)     30,000       35,051  
Los Angeles Dept of Water & Power
Power System RB Series 2011A
    4.00%               07/01/16       515,000       545,957  
Power System RB Series 2011A
    5.00%               07/01/18       3,380,000       3,890,042  
Power System RB Series 2012A
    5.00%               07/01/29  (b)     675,000       787,712  
Power System RB Series 2014B
    5.00%               07/01/23       480,000       593,376  
Power System RB Series 2014B
    5.00%               07/01/24  (b)     600,000       735,528  
Power System RB Series 2014D
    4.00%               07/01/19       1,000,000       1,134,060  
Los Angeles Harbor Dept
Refunding RB Series 2011B
    5.00%               08/01/24  (b)     1,000,000       1,207,220  
Refunding RB Series 2014B
    5.00%               08/01/31  (b)     1,450,000       1,716,640  
Refunding RB Series 2014B
    5.00%               08/01/32  (b)     1,525,000       1,801,193  
Refunding RB Series 2014B
    5.00%               08/01/33  (b)     3,220,000       3,795,718  
Los Angeles Municipal Improvement Corp
Lease RB Series 2014A
    5.00%               05/01/29  (b)     400,000       469,732  
Lease RB Series 2014A
    5.00%               05/01/30  (b)     750,000       876,023  
Lease RB Series 2014A
    5.00%               05/01/31  (b)     1,100,000       1,279,916  
Lease RB Series 2014A
    5.00%               05/01/32  (b)     2,785,000       3,223,164  
Lease Refunding RB Series 2014B
    5.00%               05/01/31  (b)     500,000       581,780  
Los Angeles USD
Refunding COP Series 2012A
    5.00%               10/01/20       2,150,000       2,561,015  
Refunding COP Series 2012A
    5.00%               10/01/22       2,800,000       3,393,768  
Los Gatos
COP 2010
    5.00%               08/01/21  (b)     500,000       572,280  
M-S-R Public Power Agency
Sub Lien RB Series 2008L
    5.00%               07/01/16       180,000       192,721  
Sub Lien RB Series 2008L
    5.00%               07/01/17       855,000       948,434  
Malibu
COP Series 2009A
    4.00%               07/01/17       100,000       107,749  
COP Series 2009A
    4.00%               07/01/18       75,000       82,069  
COP Series 2009A
    5.00%               07/01/20  (b)     75,000       85,620  
Midpeninsula Regional Open Space District
Refunding Promissory Notes 2012
    5.00%               09/01/26  (b)     1,205,000       1,411,103  
Modesto Irrigation District
Electric System Refunding RB Series 2011A
    5.00%               07/01/15       945,000       972,528  
Electric System Refunding RB Series 2012A
    5.00%               07/01/16       200,000       215,332  
Electric System Refunding RB Series 2012A
    5.00%               07/01/17       100,000       111,641  
Electric System Refunding RB Series 2012A
    5.00%               07/01/19       200,000       235,076  
Moraga
COP 2013
    4.00%               04/01/18       120,000       130,871  
COP 2013
    4.00%               04/01/25  (b)     145,000       166,218  
COP 2013
    5.00%               04/01/26  (b)     310,000       375,751  
COP 2013
    5.00%               04/01/27  (b)     430,000       515,312  
Moreno Valley Public Financing Auth
Lease Refunding RB Series 2013
    5.00%               11/01/18       1,100,000       1,258,466  
Lease Refunding RB Series 2013
    5.00%               11/01/22       810,000       973,976  
Mountain View Shoreline Regional Park Community
RB Series 2011A
    5.00%               08/01/19       420,000       487,973  
RB Series 2011A
    5.00%               08/01/20       200,000       236,040  
 
 
 
 5

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
RB Series 2011A
    5.00%               08/01/21       550,000       655,204  
RB Series 2011A
    5.75%               08/01/40  (b)     700,000       819,322  
New Haven USD
GO Refunding Bonds Series 2014B
    5.00%               08/01/21  (e)     2,100,000       2,454,207  
Novato Successor Redevelopment Agency
Tax Allocation Bonds (Hamilton Field) Series 2011
    6.75%               09/01/40  (b)     1,000,000       1,224,030  
Oakland
Sewer Refunding RB Series 2014A
    4.00%               06/15/17       650,000       708,032  
Sewer Refunding RB Series 2014A
    5.00%               06/15/18       600,000       688,146  
Sewer Refunding RB Series 2014A
    5.00%               06/15/27  (b)     1,000,000       1,202,390  
Oakland Redevelopment Successor Agency
Sub Tax Allocation Refunding Bonds (Central District) Series 2013
    5.00%               09/01/15       2,000,000       2,070,220  
Sub Tax Allocation Refunding Bonds (Central District) Series 2013
    4.00%               09/01/18       500,000       550,470  
Sub Tax Allocation Refunding Bonds (Central District) Series 2013
    5.00%               09/01/19       3,050,000       3,536,566  
Sub Tax Allocation Refunding Bonds (Central District) Series 2013
    5.00%               09/01/20       2,000,000       2,347,880  
Orange Successor Redevelopment Agency
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/21  (e)     550,000       649,286  
Tax Allocation Refunding Bonds Series 2014A
    5.00%               09/01/22  (e)     400,000       475,644  
Oxnard Financing Auth
Wastewater Refunding RB Series 2014
    5.00%               06/01/23       1,000,000       1,181,590  
Wastewater Refunding RB Series 2014
    5.00%               06/01/24       1,750,000       2,073,592  
Wastewater Refunding RB Series 2014
    5.00%               06/01/28  (b)     1,000,000       1,145,240  
Palo Alto
Limited Obligation Refunding Bonds Series 2012
    5.00%               09/02/27  (b)     440,000       487,696  
Limited Obligation Refunding Bonds Series 2012
    5.00%               09/02/30  (b)     240,000       261,799  
Pomona
S/F Mortgage Refunding RB Series 1990B
    7.50%               08/01/23  (d)     785,000       997,617  
Rancho Cucamonga Successor RDA
Tax Allocation Refunding Bonds Series 2014
    4.00%               09/01/17       920,000       1,004,668  
Tax Allocation Refunding Bonds Series 2014
    5.00%               09/01/18       750,000       862,613  
Tax Allocation Refunding Bonds Series 2014
    5.00%               09/01/19       1,370,000       1,608,270  
Tax Allocation Refunding Bonds Series 2014
    5.00%               09/01/20       1,175,000       1,398,027  
Riverside Cnty Transportation Commission
Limited Sales Tax RB Series 2013A
    5.00%               06/01/18       800,000       917,808  
Limited Sales Tax RB Series 2013A
    5.25%               06/01/24  (b)     710,000       882,125  
Ross Valley Public Financing Auth
RB (Marin Cnty Sanitary District No. 1) Series 2013
    5.00%               10/01/27  (b)     300,000       349,449  
RB (Marin Cnty Sanitary District No. 1) Series 2013
    5.00%               10/01/43  (b)     1,000,000       1,125,730  
Ross Valley SD
GO Bonds Series A
    5.00%               08/01/31  (b)     1,000,000       1,166,430  
Sacramento City Financing Auth
Lease Refunding RB Series 2013A
    4.00%               05/01/16       1,000,000       1,051,760  
Lease Refunding RB Series 2013A
    4.00%               05/01/18       4,000,000       4,405,720  
Sacramento Cnty Sanitation District Financing Auth
RB (Sacramento Regional Cnty Sanitation District) Series 2014A
    5.00%               12/01/26  (b)     1,030,000       1,252,542  
San Diego CCD
GO Bonds Series 2011
    5.00%               08/01/36  (b)     1,800,000       2,073,582  
San Diego Cnty Regional Airport Auth
Sr Airport RB Series 2013A
    5.00%               07/01/23       225,000       273,193  
Sr Airport RB Series 2013A
    5.00%               07/01/24  (b)     250,000       299,975  
San Diego Convention Center Expansion Financing Auth
Lease Refunding RB Series 2012A
    4.00%               04/15/17       575,000       618,873  
Lease Refunding RB Series 2012A
    4.00%               04/15/18       1,000,000       1,092,190  
Lease Refunding RB Series 2012A
    5.00%               04/15/19       1,000,000       1,148,840  
San Diego Public Facilities Financing Auth
Lease Refunding RB Series 2010A
    4.25%               03/01/20       900,000       1,011,843  
Lease Refunding RB Series 2010A
    5.00%               09/01/20       745,000       871,032  
San Diego Regional Building Auth
Lease RB Series 2009A
    4.00%               02/01/16       415,000       432,202  
Lease RB Series 2009A
    4.00%               02/01/17       840,000       899,682  
San Diego Unified Port District
Refunding RB Series 2013A
    5.00%               09/01/22       300,000       359,166  
Refunding RB Series 2013A
    5.00%               09/01/23       750,000       905,475  
Refunding RB Series 2013A
    5.00%               09/01/25  (b)     1,500,000       1,768,065  
San Diego USD
GO Refunding Bonds Series 2005C2
    5.50%               07/01/21       1,790,000       2,227,028  
 
 
 
6 

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
San Francisco
COP Series 2009A
    5.00%               04/01/15       550,000       559,213  
COP Series 2009A
    5.00%               04/01/21  (b)     3,325,000       3,814,673  
San Francisco Airport Commission
Refunding RB Series 2011B
    5.50%               05/01/21       750,000       919,807  
Refunding RB Series 2012A
    5.00%               05/01/26  (b)     340,000       395,896  
San Francisco Bay Area Rapid Transit District
GO Bonds Series 2007B
    5.00%               08/01/35  (b)     2,565,000       2,833,632  
San Francisco CCD
GO Bonds Series 2004B
    5.00%               06/15/21  (b)     500,000       501,965  
GO Bonds Series 2004B
    4.38%               06/15/23  (b)     2,700,000       2,708,694  
GO Bonds Series 2007B
    5.00%               06/15/28  (b)     3,500,000       3,512,705  
San Francisco Municipal Transportation Agency
RB Series 2014
    5.00%               03/01/24  (e)     500,000       622,845  
RB Series 2014
    5.00%               03/01/25  (b)(e)     500,000       614,340  
RB Series 2014
    5.00%               03/01/44  (b)(e)     1,000,000       1,135,900  
San Francisco Public Utilities Commission
Water RB Series 2010F
    4.00%               11/01/19       2,535,000       2,876,642  
Water RB Series 2011A
    5.00%               11/01/20       2,360,000       2,842,337  
San Francisco Redevelopment Financing Auth
Tax Allocation Refunding RB Series 2007B
    5.00%               08/01/15       1,000,000       1,030,510  
San Gorgonio Memorial Healthcare District
GO Refunding Bonds Series 2014
    4.00%               08/01/19       1,000,000       1,107,740  
GO Refunding Bonds Series 2014
    5.00%               08/01/21       275,000       322,944  
GO Refunding Bonds Series 2014
    5.00%               08/01/22       500,000       589,180  
San Joaquin Cnty
Refunding Revenue COP (Solid Waste System) 2014
    3.00%               04/01/17       150,000       156,801  
Refunding Revenue COP (Solid Waste System) 2014
    4.00%               04/01/18       285,000       309,060  
Refunding Revenue COP (Solid Waste System) 2014
    4.00%               04/01/19       225,000       246,521  
Refunding Revenue COP (Solid Waste System) 2014
    4.00%               04/01/20       350,000       385,571  
Refunding Revenue COP (Solid Waste System) 2014
    5.00%               04/01/21       350,000       406,028  
Refunding Revenue COP (Solid Waste System) 2014
    5.00%               04/01/22       350,000       406,697  
San Jose
Airport RB Series 2011A2
    5.00%               03/01/19       210,000       242,705  
Airport Refunding RB Series 2014C
    5.00%               03/01/30  (b)     1,690,000       1,953,251  
Airport Refunding RB Series 2014C
    5.00%               03/01/31  (b)     820,000       945,591  
San Mateo Cnty Jt Powers Financing Auth
Lease Refunding RB Series 2008A
    4.00%               07/15/17       125,000       136,479  
San Mateo-Foster City SD
GO Refunding Bonds Series 2012
    4.00%               09/01/17       1,840,000       2,014,303  
GO Refunding Bonds Series 2012
    4.00%               09/01/19       1,960,000       2,226,148  
San Pablo Successor Redevelopment Agency
Tax Allocation Refunding Bonds Series 2014A
    5.00%               06/15/21       500,000       593,450  
Tax Allocation Refunding Bonds Series 2014A
    5.00%               06/15/22       610,000       730,628  
Tax Allocation Refunding Bonds Series 2014A
    5.00%               06/15/24       1,000,000       1,208,190  
Santa Clara Cnty Financing Auth
RB (El Camino Hospital) Series 2007A
    5.00%               02/01/17       230,000       248,202  
RB (El Camino Hospital) Series 2007B
    5.00%               02/01/17       115,000       124,645  
RB (El Camino Hospital) Series 2007C
    5.00%               02/01/17       300,000       325,161  
Santa Cruz Cnty Capital Financing Auth
Lease RB Series 2014
    5.00%               08/01/21       125,000       147,623  
Lease RB Series 2014
    5.00%               08/01/22       165,000       196,327  
Lease RB Series 2014
    3.00%               08/01/23       140,000       145,390  
Lease RB Series 2014
    3.00%               08/01/24       175,000       180,318  
Lease RB Series 2014
    5.00%               08/01/25  (b)     175,000       208,285  
Lease RB Series 2014
    5.00%               08/01/26  (b)     165,000       194,259  
Lease RB Series 2014
    5.00%               08/01/27  (b)     320,000       374,314  
Santa Cruz Cnty Successor Redevelopment Agency
Tax Allocation Bonds Series 2009A
    7.00%               09/01/36  (b)     900,000       1,065,708  
Santa Maria-Bonita SD
COP Series 2013
    2.00%               06/01/16       200,000       203,520  
Santa Monica Public Financing Auth
Lease RB Series 2011A
    5.00%               06/01/30  (b)     2,320,000       2,698,160  
Santa Monica Successor Redevelopment Agency
Tax Allocation Bonds Series 2011
    5.88%               07/01/36  (b)     945,000       1,110,384  
 
 
 
 7

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
                                         
Issuer
 		              Face Amount
 		  Value
    Type of Security, Series   Rate       Maturity   ($)   ($)
Santa Monica-Malibu USD
GO Bonds Series B
    5.00%               08/01/17       115,000       129,027  
GO Bonds Series B
    5.00%               08/01/19       75,000       88,780  
Sequoia UHSD
GO Refunding Bonds 2014
    5.00%               07/01/23       1,160,000       1,443,318  
Sonoma-Marina Area Rail Transit District
Sales Tax RB Series 2011A
    5.00%               03/01/18       500,000       568,545  
Sales Tax RB Series 2011A
    5.00%               03/01/20       500,000       594,765  
South Orange Cnty Public Financing Auth
Facility Lease Refunding RB Series 2012
    4.00%               06/01/16       1,400,000       1,475,488  
Southern California Metropolitan Water District
Water Refunding RB Series 1993A
    5.75%               07/01/21       4,505,000       5,327,117  
Water Refunding RB Series 2014G2
    3.00%               07/01/37  (b)     1,500,000       1,584,465  
Southern California Public Power Auth
RB (Windy Point/Windy Flats) Series 2010-1
    5.00%               07/01/25  (b)     2,375,000       2,801,787  
Tustin USD
GO Bonds Series B
    6.00%               08/01/36  (b)     950,000       1,166,647  
Univ of California
General RB Series 2009Q
    5.25%               05/15/26  (b)     3,980,000       4,450,356  
General RB Series 2011AB
    3.00%               05/15/18       565,000       608,867  
Limited RB Series 2012G
    5.00%               05/15/42  (b)     4,000,000       4,478,880  
Medical Center Pooled RB Series 2013J
    3.00%               05/15/16       100,000       104,069  
Medical Center Pooled RB Series 2013J
    4.00%               05/15/17       100,000       108,717  
Medical Center Pooled RB Series 2013J
    5.00%               05/15/18       100,000       114,602  
Medical Center Pooled RB Series 2013J
    5.00%               05/15/19       100,000       117,258  
Medical Center Pooled RB Series 2013J
    4.00%               05/15/20       250,000       284,885  
Upland
COP (San Antonio Community Hospital) Series 2011
    5.50%               01/01/19       915,000       1,038,653  
COP (San Antonio Community Hospital) Series 2011
    5.75%               01/01/21       1,890,000       2,232,695  
COP (San Antonio Community Hospital) Series 2011
    6.38%               01/01/32  (b)     1,875,000       2,203,181  
West Kern Water District
Revenue COP Series 2011
    4.00%               06/01/18       70,000       76,419  
Revenue COP Series 2011
    5.00%               06/01/20       275,000       320,559  
Whittier
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D
    5.00%               06/01/15       700,000       715,708  
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D
    5.00%               06/01/16       2,100,000       2,232,741  
Health Facility RB (Presbyterian Intercommunity Hospital) Series 2009D
    5.00%               06/01/17       2,050,000       2,244,401  
Woodland Finance Auth
Water RB Series 2011
    3.85%               03/01/18       145,000       156,945  
Water RB Series 2011
    4.15%               03/01/19       130,000       143,983  
Water RB Series 2011
    4.65%               03/01/21       115,000       132,420  
                                         
                                      408,154,002  
 
GUAM 0.3%
Guam Power Auth
RB Series 2014A
    5.00%               10/01/28  (b)     1,245,000       1,400,949  
                                         
Total Fixed-Rate Obligations
(Cost $388,644,326)                             409,554,951  
                                 
                                         
                                         
 
 Variable-Rate Obligations 5.6% of net assets
 
CALIFORNIA 5.6%
Bay Area Toll Auth
Toll Bridge RB Series 2006C1
    0.94%               04/01/45  (b)     5,000,000       5,013,150  
Toll Bridge RB Series 2007A1
    0.74%               04/01/47  (b)     1,000,000       1,003,170  
California
GO Bonds Series 2004A1
    0.02%               05/01/34  (a)(b)     1,500,000       1,500,000  
GO Bonds Series 2013C
    0.59%               12/01/28  (b)     2,400,000       2,413,464  
GO Refunding Bonds 2012B
    0.94%               05/01/18  (b)     1,000,000       1,015,800  
GO Refunding Bonds 2012B
    1.19%               05/01/20  (b)     1,000,000       1,023,340  
California Educational Facilities Auth
Refunding RB (Loyola Marymount Univ) Series 2010B
    0.84%               10/01/15  (b)(f)     3,790,000       3,792,842  
 
 
 
8 

 

 
 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
Refunding RB (PG&E) Series 2009B
    0.04%               11/01/26  (a)(b)     1,400,000       1,400,000  
California Pollution Control Financing Auth
Pollution Control Refunding RB (PG&E) Series 1996C
    0.03%               11/01/26  (a)(b)     1,800,000       1,800,000  
California Statewide Communities Development Auth
RB (Kaiser Permanente) Series 2012B
    0.99%               04/01/52  (b)     2,620,000       2,622,306  
East Bay Municipal Utility District
Wastewater System Refunding RB Series 2011A
    0.36%               06/01/38  (b)     515,000       514,846  
Southern California Metropolitan Water District
Water Refunding RB Series 2012B1
    0.39%               07/01/27  (b)     2,000,000       2,000,860  
                                         
Total Variable-Rate Obligations
(Cost $24,006,803)                             24,099,778  
                                 
 
End of Investments.
 
At 11/30/14, the tax basis cost of the fund’s investments was $412,650,596 and the unrealized appreciation and depreciation were $21,027,838 and ($23,705), respectively, with a net unrealized appreciation of $21,004,133.
 
(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) Zero coupon bond.
(d) Refunded bond.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) All or a portion of this security is designated as collateral for delayed-delivery securities.
 
     
BAN —
  Bond anticipation note
CCD —
  Community college district
COP —
  Certificate of participation
GO —
  General obligation
HFA —
  Housing finance agency/authority
LT —
  Limited tax
M/F —
  Multi-family
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.
 
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 ask 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
 
 
 
 9

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
  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 may be valued at amortized cost, which approximates market value.
 
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.
 
  •  Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.
 
  •  Level 3 — significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used to value the fund’s investments as of November 30, 2014:
 
                                 
    Quoted Prices in
 		      Significant
 		   
    Active Markets for
 		  Other Significant
 		  Unobservable
 		   
    Identical Assets
 		  Observable Inputs
 		  Inputs
 		   
Description
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
Fixed-Rate Obligations1
    $—       $409,554,951       $—       $409,554,951  
Variable-Rate Obligations1
    —       24,099,778       —       24,099,778  
                                 
Total
    $—       $433,654,729       $—       $433,654,729  
                                 
 
     
1
  As categorized in Portfolio Holdings.
 
 
 
10 

 

 
 Schwab California Tax-Free Bond Fund
 

 
Portfolio Holdings (Unaudited) continued
 
The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year. There were no transfers between Level 1, Level 2 and Level 3 for the period ended November 30, 2014.
 
REG406024NOV14
 
 
 
 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: 1/21/2015
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
By:
  /s/ Marie Chandoha
 
Marie Chandoha 		   
 
  Chief Executive Officer    
Date: 1/21/2015

 

 

         
By:
  /s/ George Pereira
 
George Pereira 		   
 
  Principal Financial Officer    
 
        
Date: 1/21/2015