-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KJjN31YUzi/lt1fr5KE3k+yPDZLLuOBU/p0pEjls0b36pmj4IJM39H3MW2bEgHps oMSFzBsph58mhZZ/4BURgA== 0000950134-06-018093.txt : 20060922 0000950134-06-018093.hdr.sgml : 20060922 20060921183616 ACCESSION NUMBER: 0000950134-06-018093 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060731 FILED AS OF DATE: 20060922 DATE AS OF CHANGE: 20060921 EFFECTIVENESS DATE: 20060922 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB INVESTMENTS CENTRAL INDEX KEY: 0000869365 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06200 FILM NUMBER: 061103009 BUSINESS ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 415-627-7000 MAIL ADDRESS: STREET 1: 101 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94104 0000869365 S000006807 Schwab 1000 Index Fund C000018433 Investor Shares SNXFX C000018434 Select Shares SNXSX N-Q 1 f23632sinvq.txt FORM N-Q 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 - Schwab 1000 Index Fund ----------------------------------------------- (Exact name of registrant as specified in charter) 101 Montgomery Street, San Francisco, California 94104 ------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Evelyn Dilsaver Schwab Investments - Schwab 1000 Index Fund 101 Montgomery Street, San Francisco, California 94104 ----------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (415) 627-7000 Date of fiscal year end: October 31 Date of reporting period: May 1, 2006 - July 31, 2006 ITEM 1. SCHEDULE OF INVESTMENTS. SCHWAB INVESTMENTS SCHWAB 1000 INDEX FUND(TM) PORTFOLIO HOLDINGS As of July 31, 2006, (Unaudited) The following are the portfolio holdings as of the report date. For more information, please refer to the fund's semiannual or annual shareholder reports.
Cost Value Holdings by Category ($ x 1,000) ($ x 1,000) - -------------------------------------------------------------------------------- 99.8% COMMON STOCK 3,259,942 6,422,263 0.1% FOREIGN COMMON STOCK 3,599 5,328 0.1% OTHER INVESTMENT COMPANY 7,886 7,886 --% U.S. TREASURY OBLIGATION 994 994 --% WARRANTS -- 161 - -------------------------------------------------------------------------------- 100.0% TOTAL INVESTMENTS 3,272,421 6,436,632 3.1% COLLATERAL INVESTED FOR SECURITIES ON LOAN 198,755 198,755 (3.1)% OTHER ASSETS AND LIABILITIES, NET (197,994) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 6,437,393
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) COMMON STOCK 99.8% OF NET ASSETS AUTOMOBILES & COMPONENTS 0.5% - -------------------------------------------------------------------------------- BorgWarner, Inc. 20,849 1,251 Ford Motor Co. (a) 872,613 5,820 General Motors Corp. (a) 242,705 7,822 Gentex Corp. (a) 43,972 587 Harley-Davidson, Inc. (a) 126,692 7,221 Johnson Controls, Inc. 81,458 6,253 The Goodyear Tire & Rubber Co. (a)* 76,800 845 Thor Industries, Inc. (a) 26,364 1,129 TRW Automotive Holdings Corp. (a)* 48,243 1,250 ----------- 32,178 BANKS 5.6% - -------------------------------------------------------------------------------- AmSouth Bancorp 175,037 5,017 Associated Banc-Corp. 57,148 1,792 Astoria Financial Corp. (a) 40,304 1,199 Bank of Hawaii Corp. 26,332 1,305 BB&T Corp. 247,700 10,401 BOK Financial Corp. 29,306 1,507 Capitol Federal Financial (a) 34,191 1,188 City National Corp. 20,632 1,376 Comerica, Inc. 84,728 4,961 Commerce Bancorp, Inc. (a) 48,153 1,636 Commerce Bancshares, Inc. 36,145 1,839 Compass Bancshares, Inc. 56,687 3,341 Countrywide Financial Corp. 247,672 8,874 Cullen/Frost Bankers, Inc. 25,600 1,503 Fannie Mae 446,534 21,393 Fifth Third Bancorp 234,484 8,943 First Horizon National Corp. (a) 52,600 2,204 Freddie Mac 318,605 18,435 Fulton Financial Corp. (a) 22,544 373 Golden West Financial Corp. 141,266 10,406 Hudson City Bancorp, Inc. 257,840 3,344 Huntington Bancshares, Inc. 105,277 2,564 IndyMac Bancorp, Inc. (a) 21,795 921 KeyCorp 201,514 7,436 M&T Bank Corp. 51,843 6,321 Marshall & Ilsley Corp. 82,531 3,877 Mercantile Bankshares Corp. 53,100 1,888 MGIC Investment Corp. 37,705 2,146 National City Corp. 294,776 10,612 New York Community Bancorp, Inc. (a) 107,882 1,762 North Fork Bancorp, Inc. 208,280 5,901 People's Bank (a) 65,235 2,341 PNC Financial Services Group, Inc. 139,996 9,917 Popular, Inc. (a) 83,086 1,495 Radian Group, Inc. 39,754 2,446 Regions Financial Corp. 213,180 7,736 Sky Financial Group, Inc. 39,082 959 Sovereign Bancorp, Inc. 173,521 3,582 SunTrust Banks, Inc. 166,493 13,131 Synovus Financial Corp. 142,741 4,034 TCF Financial Corp. 62,684 1,687 TD Banknorth, Inc. (a) 104,326 3,025 The Colonial BancGroup, Inc. 71,076 1,805 The PMI Group, Inc. 43,264 1,837 U.S. Bancorp 831,655 26,613 UnionBanCal Corp. 73,965 4,570 Valley National Bancorp (a) 43,136 1,120 Wachovia Corp. 738,452 39,603 Washington Mutual, Inc. 452,393 20,222 Webster Financial Corp. 19,239 907 Wells Fargo & Co. 757,198 54,776 Whitney Holding Corp. (a) 29,023 1,047 Wilmington Trust Corp. 33,237 1,447 Zions Bancorp 47,898 3,934 ---------- 362,699 CAPITAL GOODS 8.0% - -------------------------------------------------------------------------------- 3M Co. 355,034 24,994 Alliant Techsystems, Inc. * 13,438 1,077 American Power Conversion Corp. 71,566 1,208 American Standard Cos., Inc. 96,295 3,720 Ametek, Inc. 13,165 558 Carlisle Cos., Inc. 6,310 504 Caterpillar, Inc. 304,976 21,614 Cooper Industries Ltd., Class A 71,500 6,160 Crane Co. 50,984 1,958 Cummins, Inc. 21,783 2,549 Danaher Corp. 147,420 9,612 Deere & Co. 109,473 7,944
1 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Donaldson Co., Inc. (a) 37,700 1,240 Dover Corp. 99,237 4,678 Eaton Corp. 68,359 4,382 Emerson Electric Co. 197,594 15,594 Fastenal Co. 62,600 2,227 Flowserve Corp. * 25,341 1,313 Fluor Corp. 36,979 3,248 Foster Wheeler Ltd. * 4,228 161 General Dynamics Corp. 195,024 13,070 General Electric Co. (b) 4,789,922 156,583 Goodrich Corp. 38,098 1,538 Graco, Inc. 25,194 990 Harsco Corp. 20,300 1,636 Honeywell International, Inc. 388,799 15,047 Hubbell, Inc., Class B 28,132 1,322 IDEX Corp. 22,771 989 Illinois Tool Works, Inc. 269,404 12,320 Ingersoll-Rand Co., Class A (b) 152,628 5,464 ITT Industries, Inc. 67,494 3,412 Jacobs Engineering Group, Inc. * 18,578 1,542 JLG Industries, Inc. 47,636 862 Joy Global, Inc. 54,008 2,026 Kennametal, Inc. 17,599 937 L-3 Communications Holdings, Inc. 55,424 4,082 Lockheed Martin Corp. 209,954 16,729 Masco Corp. 201,736 5,392 McDermott International, Inc. * 45,556 2,075 MSC Industrial Direct Co., Class A 27,758 1,144 Northrop Grumman Corp. 160,932 10,652 Oshkosh Truck Corp. 33,828 1,451 PACCAR, Inc. 71,640 5,785 Pall Corp. 39,733 1,036 Parker Hannifin Corp. 58,269 4,209 Pentair, Inc. 40,200 1,155 Precision Castparts Corp. 61,301 3,657 Raytheon Co. 221,390 9,978 Rockwell Automation, Inc. 88,649 5,494 Rockwell Collins, Inc. 87,553 4,673 Roper Industries, Inc. 39,091 1,767 SPX Corp. 38,114 2,083 Teleflex, Inc. 20,146 1,150 Terex Corp. * 45,582 2,044 Textron, Inc. 61,069 5,491 The Boeing Co. 377,989 29,264 The Manitowoc Co., Inc. 46,923 1,842 The Shaw Group, Inc. * 30,669 635 The Timken Co. (a) 32,794 1,056 Thomas & Betts Corp. * 29,529 1,398 Trinity Industries, Inc. 33,691 1,126 Tyco International Ltd. 933,694 24,360 United Rentals, Inc. (a)* 35,645 995 United Technologies Corp. 472,763 29,401 USG Corp. * 20,406 946 W.W. Grainger, Inc. 44,776 2,780 Walter Industries, Inc. (a) 15,515 694 WESCO International, Inc. * 21,593 1,258 ----------- 518,281 COMMERCIAL SERVICES & SUPPLIES 0.9% - -------------------------------------------------------------------------------- Adesa, Inc. 42,291 863 Allied Waste Industries, Inc. * 101,043 1,027 ARAMARK Corp., Class B 83,587 2,683 Avery Dennison Corp. 57,460 3,369 Cendant Corp. 472,588 7,094 ChoicePoint, Inc. * 23,182 792 Cintas Corp. 68,510 2,418 Copart, Inc. * 10,214 272 Covanta Holding Corp. * 64,748 1,143 Equifax, Inc. 68,000 2,195 Herman Miller, Inc. 31,855 905 HNI Corp. 25,273 1,026 Manpower, Inc. 40,291 2,396 Monster Worldwide, Inc. * 56,300 2,252 Pitney Bowes, Inc. (a) 104,941 4,336 R.R. Donnelley & Sons Co. 99,419 2,902 Republic Services, Inc. 63,315 2,543 Robert Half International, Inc. 69,691 2,255 Steelcase Inc., Class A 74,242 1,091 Stericycle, Inc. * 16,849 1,132 The Brink's Co. 18,815 1,037 The Corporate Executive Board Co. 19,544 1,837 The Dun & Bradstreet Corp. * 35,225 2,350 Waste Management, Inc. 277,277 9,533 West Corp. * 32,050 1,529 ----------- 58,980 CONSUMER DURABLES & APPAREL 1.2% - -------------------------------------------------------------------------------- Beazer Homes USA, Inc. (a) 15,098 629 Brunswick Corp. 33,961 1,004 Centex Corp. 54,000 2,555 Coach, Inc. * 176,410 5,065 D.R. Horton, Inc. 133,897 2,869 Eastman Kodak Co. (a) 124,621 2,773 Fortune Brands, Inc. 66,628 4,832 Garmin Ltd. (a) 49,743 4,725 Harman International Industries, Inc. 32,997 2,646 Hasbro, Inc. 88,325 1,652 Hovnanian Enterprises, Inc., Class A (a)* 20,711 567 Jones Apparel Group, Inc. 56,320 1,667 KB Home 39,676 1,687 Leggett & Platt, Inc. (a) 88,044 2,009 Lennar Corp., Class A 66,375 2,969 Liz Claiborne, Inc. 42,800 1,513 M.D.C. Holdings, Inc. (a) 14,679 640 Mattel, Inc. 186,297 3,361 Mohawk Industries, Inc. (a)* 26,739 1,846 Newell Rubbermaid, Inc. 136,926 3,609 Nike, Inc., Class B 118,534 9,364 NVR, Inc. (a)* 2,498 1,237 Polo Ralph Lauren Corp. 50,395 2,875 Pool Corp. 5,927 231 Pulte Homes, Inc. (a) 111,012 3,164 Snap-On, Inc. 28,550 1,199 Standard Pacific Corp. 23,650 528
2 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) The Black & Decker Corp. 37,880 2,671 The Ryland Group, Inc. (a) 18,050 737 The Stanley Works 39,294 1,783 Timberland Co., Class A * 27,760 715 Toll Brothers, Inc. * 63,200 1,616 VF Corp. 35,682 2,420 Whirlpool Corp. 32,643 2,520 ----------- 79,678 CONSUMER SERVICES 2.0% - -------------------------------------------------------------------------------- Apollo Group, Inc., Class A (a)* 74,721 3,536 Boyd Gaming Corp. (a) 35,200 1,181 Brinker International, Inc. 34,600 1,121 Career Education Corp. * 45,200 1,286 Carnival Corp. 281,410 10,964 Choice Hotels International, Inc. 24,514 1,045 Darden Restaurants, Inc. 76,315 2,579 GTECH Holdings Corp. 57,709 1,944 H&R Block, Inc. 118,798 2,703 Harrah's Entertainment, Inc. (a) 73,756 4,434 Hilton Hotels Corp. 184,865 4,424 International Game Technology 162,826 6,295 International Speedway Corp., Class A 18,769 849 ITT Educational Services, Inc. * 21,101 1,423 Kerzner International Ltd. (a)* 16,749 1,340 Las Vegas Sands Corp. * 157,163 9,749 Laureate Education, Inc. * 14,678 670 Marriott International, Inc., Class A 190,756 6,711 McDonald's Corp. 578,936 20,489 MGM Mirage * 109,687 3,898 OSI Restaurant Partners, Inc. 22,697 656 Panera Bread Co., Class A (a)* 8,339 436 Penn National Gaming, Inc. * 34,060 1,126 Royal Caribbean Cruises, Ltd. (a) 95,891 3,251 Scientific Games Corp., Class A * 34,243 1,163 Service Corp. International 162,900 1,223 Starbucks Corp. * 348,027 11,923 Starwood Hotels & Resorts Worldwide, Inc. 101,142 5,318 Station Casinos, Inc. 16,774 920 The Cheesecake Factory, Inc. * 28,674 655 The ServiceMaster Co. 115,153 1,185 Weight Watchers International, Inc. 41,329 1,654 Wendy's International, Inc. 48,273 2,904 Wynn Resorts Ltd. (a)* 36,342 2,326 YUM! Brands, Inc. 130,588 5,876 ----------- 127,257 DIVERSIFIED FINANCIALS 9.3% - -------------------------------------------------------------------------------- A.G. Edwards, Inc. 35,385 1,909 Affiliated Managers Group, Inc. (a)* 13,459 1,232 AllianceBernstein Holding LP * 39,989 2,599 American Express Co. (b) 564,077 29,366 AmeriCredit Corp. * 78,300 1,925 Ameriprise Financial, Inc. 114,957 5,127 Bank of America Corp. (b) 2,126,568 109,582 BlackRock, Inc., Class A 29,465 3,806 Capital One Financial Corp. 140,160 10,841 CBOT Holdings, Inc., Class A (a)* 24,362 3,053 Chicago Mercantile Exchange Holdings, Inc. 16,141 7,444 CIT Group, Inc. 90,468 4,153 Citigroup, Inc. 2,299,362 111,082 E*TRADE Financial Corp. * 182,900 4,263 Eaton Vance Corp. 51,484 1,275 Federated Investors, Inc., Class B 53,850 1,670 Franklin Resources, Inc. 121,486 11,110 Goldman Sachs Group, Inc. 199,132 30,417 IntercontinentalExchange, Inc. * 25,589 1,525 Investors Financial Services Corp. (a) 16,590 744 Janus Capital Group, Inc. 110,800 1,794 Jefferies Group, Inc. (a) 52,252 1,358 JPMorgan Chase & Co. 1,607,638 73,340 Legg Mason, Inc. 53,714 4,484 Lehman Brothers Holdings, Inc. 253,588 16,471 Leucadia National Corp. (a) 100,464 2,766 Mellon Financial Corp. 210,025 7,351 Merrill Lynch & Co., Inc. 429,062 31,244 Moody's Corp. 146,426 8,036 Morgan Stanley 499,248 33,200 Nasdaq Stock Market, Inc. * 39,737 1,094 Nelnet, Inc., Class A (a)* 20,511 629 Northern Trust Corp. 108,776 6,211 Nuveen Investments, Inc., Class A (a) 29,300 1,392 Raymond James Financial, Inc. 51,849 1,507 SEI Investments Co. 50,722 2,478 SLM Corp. 185,224 9,317 State Street Corp. 164,386 9,873 Student Loan Corp. (a) 9,227 1,659 T. Rowe Price Group, Inc. 127,450 5,265 TD Ameritrade Holding Corp. * 287,631 4,711 The Bank of New York Co., Inc. 351,810 11,824 The Bear Stearns Cos., Inc. 54,036 7,666 The Charles Schwab Corp. (b)(c) 599,315 9,517 The First Marblehead Corp. 12,876 590 ----------- 596,900 ENERGY 9.9% - -------------------------------------------------------------------------------- Anadarko Petroleum Corp. 218,548 9,996 Apache Corp. 145,650 10,264 Arch Coal, Inc. 42,200 1,601 Baker Hughes, Inc. 157,707 12,609 BJ Services Co. 145,946 5,293 Cabot Oil & Gas Corp. 5,087 268 Cameron International Corp. * 54,400 2,742 Cheniere Energy, Inc. (a)* 5,187 182 Chesapeake Energy Corp. 140,997 4,639 ChevronTexaco Corp. 1,020,377 67,120 Cimarex Energy Co. 19,215 785 CNX Gas Corp. (a)* 49,394 1,337 ConocoPhillips 750,816 51,536 CONSOL Energy, Inc. 78,198 3,219
3 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Denbury Resources, Inc. * 42,942 1,489 Devon Energy Corp. 201,182 13,004 Diamond Offshore Drilling, Inc. (a) 56,729 4,478 Dresser-Rand Group, Inc. * 35,119 800 El Paso Corp. 276,981 4,432 ENSCO International, Inc. 67,928 3,140 Enterprise GP Holdings LP (a) 23,859 840 Enterprise Products Partners L.P. (a) 179,858 4,797 EOG Resources, Inc. 111,452 8,264 Exxon Mobil Corp. 2,764,622 187,276 FMC Technologies, Inc. * 26,892 1,695 Forest Oil Corp. * 10,215 342 Frontier Oil Corp. 35,758 1,260 Grant Prideco, Inc. * 59,316 2,699 Halliburton Co. 473,188 15,786 Helix Energy Solutions Group, Inc. (a)* 12,626 492 Helmerich & Payne, Inc. 47,092 1,304 Hess Corp. 125,523 6,640 Hugoton Royalty Trust (a) 9,368 291 Kerr-McGee Corp. 107,024 7,513 Kinder Morgan Management, LLC * 28,205 1,220 Kinder Morgan, Inc. 58,563 5,973 Marathon Oil Corp. 157,273 14,255 Mariner Energy, Inc. * 8,266 149 Massey Energy Co. 26,201 700 Murphy Oil Corp. 83,844 4,315 Nabors Industries Ltd. * 144,988 5,121 National-Oilwell Varco, Inc. * 74,973 5,026 Newfield Exploration Co. * 53,066 2,461 Noble Corp. 56,850 4,079 Noble Energy, Inc. 80,561 4,077 Occidental Petroleum Corp. * 187,658 20,220 Patterson-UTI Energy, Inc. 79,721 2,258 Peabody Energy Corp. 91,421 4,562 Pioneer Natural Resources Co. 53,111 2,409 Plains All American Pipeline L.P. (a) 34,032 1,571 Plains Exploration & Production Co. * 22,858 1,005 Pogo Producing Co. (a) 22,700 1,005 Pride International, Inc. * 77,094 2,303 Quicksilver Resources, Inc. (a)* 26,245 928 Range Resources Corp. 27,028 760 Rowan Cos., Inc. 44,283 1,500 Schlumberger Ltd. 539,906 36,093 Smith International, Inc. (a) 86,959 3,876 Southwestern Energy Co. * 61,844 2,127 St. Mary Land & Exploration Co. 20,513 882 Sunoco, Inc. 58,500 4,068 Teekay Shipping Corp. (a) 38,268 1,644 TEPPCO Partners L.P. (a) 32,277 1,160 Tesoro Petroleum Corp. 25,056 1,874 Tidewater, Inc. 28,568 1,363 Todco (a)* 27,839 1,061 Transocean, Inc. * 141,013 10,890 Ultra Petroleum Corp. * 56,612 3,315 Unit Corp. * 5,200 305 Valero Energy Corp. (a) 279,570 18,851 Valero L.P. * 21,595 1,107 W&T Offshore, Inc. (a) 30,434 1,037 Weatherford International Ltd. * 141,248 6,616 Western Gas Resources, Inc. 25,136 1,524 Williams Cos., Inc. 223,521 5,420 XTO Energy, Inc. 152,058 7,145 ----------- 634,388 FOOD & STAPLES RETAILING 2.4% - -------------------------------------------------------------------------------- BJ's Wholesale Club, Inc. (a)* 31,400 894 Costco Wholesale Corp. 213,399 11,259 CVS Corp. 342,244 11,198 Safeway, Inc. 205,897 5,782 Supervalu, Inc. 92,695 2,513 Sysco Corp. 256,190 7,071 The Kroger Co. 336,213 7,709 Wal-Mart Stores, Inc. (b) 1,889,777 84,095 Walgreen Co. 452,069 21,148 Whole Foods Market, Inc. 56,216 3,233 ----------- 154,902 FOOD, BEVERAGE & TOBACCO 5.1% - -------------------------------------------------------------------------------- Altria Group, Inc. (b) 938,815 75,077 Anheuser-Busch Cos., Inc. (b) 339,166 16,331 Archer-Daniels-Midland Co. 318,685 14,022 Brown-Forman Corp., Class B 56,032 4,116 Bunge Ltd. 46,192 2,521 Campbell Soup Co. 188,658 6,920 Coca-Cola Enterprises, Inc. (a) 216,372 4,643 ConAgra Foods, Inc. 239,397 5,147 Constellation Brands, Inc., Class A * 90,132 2,205 Dean Foods Co. * 61,833 2,321 Del Monte Foods Co. 91,938 964 General Mills, Inc. 177,950 9,236 H.J. Heinz Co. 153,598 6,447 Hormel Foods Corp. 63,747 2,405 Kellogg Co. 186,781 8,997 Kraft Foods, Inc., Class A (a) 762,853 24,716 Loews Corp. - Carolina Group 54,571 3,131 McCormick & Co., Inc. 61,754 2,165 Molson Coors Brewing Co., Class B 32,936 2,353 PepsiAmericas, Inc. 54,736 1,237 PepsiCo, Inc. 748,787 47,458 Reynolds American, Inc. (a) 71,042 9,007 Sara Lee Corp. 388,872 6,572 Smithfield Foods, Inc. * 34,235 974 The Coca-Cola Co. 1,077,204 47,936 The Hershey Co. 107,824 5,927 The J.M. Smuckers Co. 16,856 752 The Pepsi Bottling Group, Inc. 125,232 4,164 Tyson Foods, Inc., Class A 146,259 2,070 UST, Inc. (a) 76,225 3,853 Wm. Wrigley Jr. Co. 74,605 3,421 Wm. Wrigley Jr. Co., Class B 24,867 1,136 ----------- 328,224
4 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) HEALTH CARE EQUIPMENT & SERVICES 4.4% - -------------------------------------------------------------------------------- Advanced Medical Optics, Inc. (a)* 10,934 538 Aetna, Inc. 261,277 8,228 AmerisourceBergen Corp. 107,110 4,606 Bausch & Lomb, Inc. 24,539 1,161 Baxter International, Inc. 285,895 12,008 Beckman Coulter, Inc. 28,528 1,633 Becton Dickinson & Co. 124,265 8,192 Biomet, Inc. 107,904 3,554 Boston Scientific Corp. * 635,207 10,805 C.R. Bard, Inc. 51,800 3,676 Cardinal Health, Inc. 191,810 12,851 Caremark Rx, Inc. 218,233 11,523 Cerner Corp. (a)* 53,426 2,163 CIGNA Corp. 65,918 6,015 Community Health Systems, Inc. * 40,206 1,458 Coventry Health Care, Inc. * 74,662 3,935 Cytyc Corp. * 44,020 1,083 Dade Behring Holdings, Inc. 43,458 1,770 DaVita, Inc. * 43,625 2,182 Dentsply International, Inc. 79,300 2,482 Edwards Lifesciences Corp. * 29,896 1,323 Emdeon Corp. * 127,179 1,530 Express Scripts, Inc. * 71,556 5,512 Gen-Probe, Inc. * 6,370 331 HCA, Inc. 184,629 9,076 Health Management Associates, Inc., Class A 71,122 1,446 Health Net, Inc. * 55,700 2,338 Henry Schein, Inc. * 39,919 1,893 Hillenbrand Industries, Inc. 28,548 1,418 Hologic, Inc. (a)* 20,311 912 Hospira, Inc. * 78,140 3,414 Humana, Inc. * 74,191 4,149 IDEXX Laboratories, Inc. * 14,149 1,252 IMS Health, Inc. 107,889 2,960 Intuitive Surgical, Inc. * 12,415 1,182 Kinetic Concepts, Inc. * 33,392 1,488 Laboratory Corp. of America Holdings * 61,322 3,950 Lincare Holdings, Inc. (a)* 49,750 1,732 Manor Care, Inc. 16,982 850 McKesson Corp. 144,147 7,264 Medco Health Solutions, Inc. * 145,543 8,635 Medtronic, Inc. 544,318 27,499 Omnicare, Inc. 43,433 1,966 Patterson Cos., Inc. * 53,200 1,769 Pediatrix Medical Group, Inc. * 21,754 922 Quest Diagnostics, Inc. 93,347 5,612 ResMed, Inc. (a)* 26,708 1,240 Respironics, Inc. * 11,167 397 Sierra Health Services, Inc. * 50,604 2,185 St. Jude Medical, Inc. * 156,505 5,775 Stryker Corp. 169,354 7,707 Tenet Healthcare Corp. * 216,056 1,279 The Cooper Cos., Inc. 13,347 590 Triad Hospitals, Inc. * 33,057 1,288 UnitedHealth Group, Inc. 628,712 30,071 Universal Health Services, Inc., Class B 22,337 1,251 Varian Medical Systems, Inc. * 60,371 2,736 VCA Antech, Inc. * 37,554 1,313 WellPoint, Inc. * 310,323 23,119 Zimmer Holdings, Inc. * 106,612 6,742 ----------- 285,979 HOUSEHOLD & PERSONAL PRODUCTS 2.0% - -------------------------------------------------------------------------------- Alberto-Culver Co., Class B 31,550 1,538 Avon Products, Inc. 183,336 5,315 Church & Dwight Co., Inc. 28,997 1,058 Clorox Co. (a) 69,525 4,167 Colgate-Palmolive Co. 236,627 14,037 Energizer Holdings, Inc. * 26,100 1,661 Herbalife Ltd. * 31,709 1,133 Kimberly-Clark Corp. 215,534 13,158 Procter & Gamble Co. (b) 1,491,019 83,795 The Estee Lauder Cos., Inc., Class A 77,854 2,905 ----------- 128,767 INSURANCE 6.0% - -------------------------------------------------------------------------------- ACE Ltd. 146,101 7,529 AFLAC, Inc. 246,513 10,881 Alleghany Corp. * 3,794 1,049 Ambac Financial Group, Inc. 48,528 4,033 American Financial Group, Inc. 36,870 1,553 American International Group, Inc. (b) 1,169,736 70,968 American National Insurance Co. 11,837 1,357 AmerUs Group Co. 19,584 1,314 AON Corp. 158,163 5,414 Arthur J. Gallagher & Co. (a) 35,720 970 Assurant, Inc. 69,992 3,371 Axis Capital Holdings Ltd. 66,062 1,953 Berkshire Hathaway, Inc., Class A * 697 63,845 Brown & Brown, Inc. 63,576 1,996 Cincinnati Financial Corp. 81,017 3,821 CNA Financial Corp. (a)* 126,900 4,308 Conseco, Inc. * 75,473 1,721 Endurance Specialty Holdings Ltd. 30,453 924 Erie Indemnity Co., Class A (a) 19,985 990 Everest Re Group Ltd. 28,420 2,689 Fidelity National Financial, Inc. 79,846 3,062 Fidelity National Title Group, Inc., Class A (a) 79,846 1,507 First American Corp. 44,360 1,642 Genworth Financial, Inc., Class A 229,439 7,870 Hanover Insurance Group, Inc. 26,400 1,222 HCC Insurance Holdings, Inc. 63,257 1,929 Lincoln National Corp. 135,459 7,678 Loews Corp. 275,658 10,216 Markel Corp. * 4,931 1,680 Marsh & McLennan Cos., Inc. 225,520 6,096 MBIA, Inc. 61,034 3,589 Mercury General Corp. 25,135 1,387
5 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) MetLife, Inc. 354,444 18,431 Nationwide Financial Services, Inc., Class A 79,873 3,601 Old Republic International Corp. 105,309 2,240 PartnerRe Ltd. 25,169 1,564 Philadelphia Consolidated Holding Corp. (a)* 29,145 987 Principal Financial Group, Inc. 143,709 7,760 Protective Life Corp. 34,757 1,610 Prudential Financial, Inc. 243,197 19,125 Reinsurance Group of America, Inc. 31,210 1,547 RenaissanceRe Holdings Ltd. 32,807 1,700 SAFECO Corp. 65,378 3,512 StanCorp Financial Group, Inc. 28,442 1,225 The Allstate Corp. 308,698 17,540 The Chubb Corp. 189,492 9,554 The Hartford Financial Services Group, Inc. 144,495 12,259 The Progressive Corp. 364,092 8,807 The St. Paul Travelers Cos., Inc. 322,697 14,779 Torchmark Corp. (a) 47,877 2,895 Transatlantic Holdings, Inc. 32,429 1,903 Unitrin, Inc. 31,571 1,263 UnumProvident Corp. (a) 135,914 2,206 W. R. Berkley Corp. 94,725 3,410 Wesco Financial Corp. 3,565 1,408 White Mountains Insurance Group Ltd. (a) 3,613 1,772 XL Capital Ltd., Class A 80,467 5,126 ----------- 384,788 MATERIALS 3.0% - -------------------------------------------------------------------------------- Air Products & Chemicals, Inc. 102,278 6,539 Airgas, Inc. 27,451 995 Alcoa, Inc. 376,020 11,262 Allegheny Technologies, Inc. 29,252 1,869 Ashland, Inc. 32,240 2,144 Ball Corp. 41,588 1,593 Bemis Co. 31,149 956 Cabot Corp. 14,616 486 Celanese Corp. 73,143 1,405 Chemtura Corp. 36,747 316 Commercial Metals Co. 53,294 1,209 Crown Holdings, Inc. * 82,776 1,379 Cytec Industries, Inc. 14,200 758 E.I. du Pont de Nemours & Co. 413,507 16,400 Eagle Materials, Inc. 3,490 126 Eastman Chemical Co. 37,591 1,866 Ecolab, Inc. 118,768 5,115 Florida Rock Industries, Inc. 30,167 1,148 FMC Corp. 33,076 2,040 Freeport-McMoran Copper & Gold, Inc., Class B 87,017 4,748 Glamis Gold Ltd. (a)* 60,697 2,234 Huntsman Corp. * 62,754 1,001 International Flavors & Fragrances, Inc. 43,608 1,614 International Paper Co. 241,207 8,281 Louisiana-Pacific Corp. 48,798 976 Lubrizol Corp. 31,060 1,328 Lyondell Chemical Co. 89,357 1,990 Martin Marietta Materials, Inc. 24,149 1,945 MeadWestvaco Corp. 84,883 2,217 Meridian Gold, Inc. * 45,756 1,236 Monsanto Co. 241,834 10,396 Nalco Holding Co. * 49,243 830 Newmont Mining Corp. 177,208 9,078 Nucor Corp. 156,776 8,336 Owens-Illinois, Inc. * 69,277 1,048 Packaging Corp. of America 49,530 1,136 Pactiv Corp. * 75,260 1,845 Peregrine Systems, Inc. (d)* 102,600 -- Phelps Dodge Corp. 86,734 7,575 PPG Industries, Inc. 79,906 4,917 Praxair, Inc. 148,528 8,145 Reliance Steel & Aluminum Co. 34,322 1,230 Rohm & Haas Co. 110,401 5,092 Sealed Air Corp. 42,051 1,987 Sigma-Aldrich Corp. 24,304 1,689 Smurfit-Stone Container Corp. * 116,030 1,174 Sonoco Products Co. 48,170 1,567 Southern Copper Corp. (a) 57,991 5,596 Temple-Inland, Inc. 55,808 2,374 The Dow Chemical Co. 430,556 14,889 The Mosaic Co. * 160,195 2,514 The Scotts Miracle-Gro Co., Class A 14,668 575 Titanium Metals Corp. (a)* 40,816 1,177 Tronox, Inc., Class B 10,790 142 United States Steel Corp. 52,668 3,322 Valhi, Inc. (a) 16,058 413 Valspar Corp. 46,946 1,156 Vulcan Materials Co. 47,482 3,180 Westlake Chemical Corp. 26,683 731 Weyerhaeuser Co. 109,915 6,448 ----------- 193,738 MEDIA 3.8% - -------------------------------------------------------------------------------- Adelphia Communications, Class A * 75,707 4 Belo Corp., Class A 40,900 659 Cablevision Systems Corp., Class A * 132,510 2,948 CBS Corp., Class B 384,404 10,544 Clear Channel Communications, Inc. 220,896 6,395 Clear Channel Outdoor Holdings, Inc., Class A * 108,217 2,221 Comcast Corp., Class A * 989,202 34,009 Discovery Holding Co., Class A * 67,197 895 Dow Jones & Co., Inc. (a) 34,348 1,204 DreamWorks Animation SKG, Inc., Class A (a)* 57,145 1,197 EchoStar Communications Corp., Class A * 148,772 5,214 Gannett Co., Inc. 108,854 5,673 Getty Images, Inc. (a)* 24,937 1,163 Harte-Hanks, Inc. 40,216 981 Interactive Data Corp. * 13,830 260
6 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) John Wiley & Sons, Inc., Class A 27,380 906 Lamar Advertising Co., Class A * 44,170 2,166 Liberty Global, Inc., Class A * 177,066 3,869 Liberty Media Holding Corp. - Capital * 47,960 3,914 Meredith Corp. 16,639 786 News Corp., Class A 1,461,928 28,128 Omnicom Group, Inc. 81,969 7,255 R.H. Donnelley Corp. * 31,186 1,628 Regal Entertainment Group, Class A (a) 42,691 839 Sirius Satellite Radio, Inc. (a)* 546,985 2,297 The DIRECTV Group, Inc. * 639,345 10,901 The E.W. Scripps Co., Class A 65,773 2,811 The Interpublic Group of Cos., Inc. (a)* 172,664 1,414 The McClatchy Co., Class A 23,405 992 The McGraw-Hill Cos., Inc. 185,136 10,423 The New York Times Co., Class A (a) 56,925 1,262 The Walt Disney Co. 925,502 27,478 Time Warner, Inc. 2,129,701 35,140 Tribune Co. (a) 132,200 3,928 Univision Communications, Inc., Class A * 137,355 4,588 Viacom, Inc., Class B * 352,946 12,300 Warner Music Group Corp. 50,986 1,242 Washington Post, Class B 4,426 3,412 XM Satellite Radio Holdings, Inc., Class A (a)* 88,279 1,024 ----------- 242,070 PHARMACEUTICALS & BIOTECHNOLOGY 7.9% - -------------------------------------------------------------------------------- Abbott Laboratories (b) 696,846 33,288 Abraxis Bioscience, Inc. (a)* 47,356 949 Affymetrix, Inc. * 20,290 438 Alkermes, Inc. * 7,142 123 Allergan, Inc. 63,081 6,803 Amgen, Inc. (b)* 558,760 38,968 Amylin Pharmaceuticals, Inc. (a)* 33,747 1,647 Applied Biosystems Group - Applera Corp. 100,500 3,231 Barr Pharmaceuticals, Inc. * 49,638 2,470 Biogen Idec, Inc. * 161,355 6,796 Bristol-Myers Squibb Co. 866,839 20,778 Celgene Corp. * 114,946 5,505 Cephalon, Inc. (a)* 14,000 920 Charles River Laboratories, Inc. * 25,115 892 Covance, Inc. * 24,300 1,549 Eli Lilly & Co. 518,171 29,417 Endo Pharmaceutical Holdings, Inc. * 60,828 1,890 Fisher Scientific International, Inc. * 56,560 4,192 Forest Laboratories, Inc. * 145,046 6,717 Genentech, Inc. * 472,019 38,149 Genzyme Corp. * 119,131 8,134 Gilead Sciences, Inc. * 211,256 12,988 ImClone Systems, Inc. (a)* 23,380 760 Invitrogen Corp. * 24,302 1,502 Johnson & Johnson 1,351,617 84,544 King Pharmaceuticals, Inc. * 119,766 2,038 Kos Pharmaceuticals, Inc. (a)* 21,213 877 MedImmune, Inc. * 89,756 2,278 Merck & Co., Inc. 1,017,785 40,986 Millennium Pharmaceuticals, Inc. * 141,504 1,390 Millipore Corp. * 22,874 1,433 Mylan Laboratories, Inc. 93,000 2,042 Neurocrine Biosciences, Inc. (a)* 4,383 40 PDL BioPharma, Inc. (a)* 23,895 430 PerkinElmer, Inc. 63,500 1,145 Pfizer, Inc. 3,391,010 88,132 Pharmaceutical Product Development, Inc. (PPD) 47,746 1,837 Schering-Plough Corp. (b) 680,516 13,910 Sepracor, Inc. (a)* 43,869 2,167 Techne Corp. * 17,563 873 Thermo Electron Corp. * 50,778 1,879 Vertex Pharmaceuticals, Inc. (a)* 21,412 718 Waters Corp. * 51,000 2,075 Watson Pharmaceuticals, Inc. * 54,400 1,218 Wyeth 598,983 29,033 ----------- 507,151 REAL ESTATE 2.1% - -------------------------------------------------------------------------------- AMB Property Corp. 39,425 2,067 Apartment Investment & Management Co., Class A 43,665 2,100 Archstone-Smith Trust 97,600 5,121 AvalonBay Communities, Inc. 33,551 3,923 Boston Properties, Inc. 51,905 5,097 Brandywine Realty Trust 40,050 1,267 BRE Properties, Class A 23,424 1,374 Camden Property Trust 23,864 1,824 CapitalSource, Inc. 69,479 1,639 CB Richard Ellis Group, Inc., Class A * 101,337 2,385 CBL & Associates Properties, Inc. 29,241 1,145 Colonial Properties Trust 20,534 984 Crescent Real Estate Equity Co. 45,568 890 Developers Diversified Realty Corp. 48,900 2,581 Duke Realty Corp. 65,937 2,457 Equity Office Properties Trust 187,588 7,112 Equity Residential 132,472 6,161 Essex Property Trust, Inc. 10,517 1,231 Federal Realty Investment Trust 24,196 1,755 Forest City Enterprises, Inc., Class A 39,988 1,995 General Growth Properties, Inc. 109,593 5,002 Global Signal, Inc. (a) 31,390 1,433 Health Care Property Investors, Inc. 62,680 1,719 Health Care REIT, Inc. (a) 26,421 956 Hospitality Properties Trust 33,081 1,441 Host Hotels & Resorts, Inc. 224,534 4,765 HRPT Properties Trust 88,774 1,043 iStar Financial, Inc. 51,293 2,039
7 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Jones Lang LaSalle, Inc. 16,005 1,308 Kimco Realty Corp. 104,709 4,109 Liberty Media Holding Corp. - Capital 40,104 1,879 Mack-Cali Realty Corp. 28,347 1,369 New Century Financial Corp. (a) 23,820 1,040 New Plan Excel Realty Trust 47,173 1,223 Pan Pacific Retail Properties, Inc. 18,743 1,295 Plum Creek Timber Co., Inc. 84,798 2,888 ProLogis 111,861 6,192 Public Storage, Inc. 59,772 4,799 Rayonier, Inc. 34,923 1,390 Reckson Associates Realty Corp. 37,150 1,654 Regency Centers Corp. 28,082 1,801 Shurgard Storage Centers, Inc., Class A 21,204 1,397 Simon Property Group, Inc. 101,978 8,722 SL Green Realty Corp. 18,743 2,142 The Macerich Co. 31,678 2,305 The Mills Corp. 24,745 574 The St. Joe Co. (a) 31,200 1,401 Thornburg Mortgage, Inc. (a) 46,418 1,188 Trizec Properties, Inc. 71,075 2,044 United Dominion Realty Trust, Inc. 63,289 1,763 Ventas, Inc. 47,419 1,694 Vornado Realty Trust 64,751 6,770 Weingarten Realty Investment 41,202 1,646 ----------- 134,099 RETAILING 3.5% - -------------------------------------------------------------------------------- Abercrombie & Fitch Co., Class A 34,819 1,844 Advance Auto Parts, Inc. 44,702 1,353 Amazon.com, Inc. * 179,941 4,839 American Eagle Outfitters, Inc. 71,690 2,356 AnnTaylor Stores Corp. * 57,737 2,371 AutoNation, Inc. * 107,066 2,109 AutoZone, Inc. * 32,733 2,876 Barnes & Noble, Inc. 29,699 995 Bed, Bath & Beyond, Inc. * 133,920 4,484 Best Buy Co., Inc. 210,276 9,534 CarMax, Inc. * 33,400 1,162 Chico's FAS, Inc. * 74,394 1,685 Circuit City Stores, Inc. 94,237 2,309 Claire's Stores, Inc. 41,419 1,037 Dillard's, Inc., Class A (a) 38,764 1,164 Dollar General Corp. 138,005 1,852 Dollar Tree Stores, Inc. * 64,308 1,711 eBay, Inc. * 631,220 15,193 Expedia, Inc. * 148,709 1,993 Family Dollar Stores, Inc. 53,600 1,218 Federated Department Stores, Inc. 220,976 7,758 Foot Locker, Inc. 67,009 1,821 GameStop Corp., Class A * 13,500 562 Genuine Parts Co. (a) 85,430 3,557 Home Depot, Inc. 956,895 33,214 IAC/InterActiveCorp. * 145,260 3,444 J.C. Penney Co., Inc. 115,522 7,273 Kohl's Corp. * 154,065 8,725 Liberty Media Holding Corp. - Interactive * 8 -- Limited Brands, Inc. 176,623 4,444 Lowe's Cos., Inc. 701,346 19,883 Michael's Stores, Inc. 58,500 2,482 Nordstrom, Inc. 135,500 4,648 O'Reilly Automotive, Inc. * 24,566 696 Office Depot, Inc. * 154,030 5,553 PETsMART, Inc. 61,195 1,442 RadioShack Corp. (a) 45,340 733 Ross Stores, Inc. 68,156 1,696 Saks, Inc. (a)* 51,579 832 Sears Holdings Corp. * 66,894 9,181 Staples, Inc. 334,070 7,223 Target Corp. 400,242 18,379 The Gap, Inc. 404,475 7,018 The Sherwin-Williams Co. 62,790 3,177 The TJX Cos., Inc. 217,665 5,304 Tiffany & Co. 63,173 1,996 Tractor Supply Co. * 4,484 205 Urban Outfitters, Inc. * 64,896 947 Williams-Sonoma, Inc. 52,721 1,676 ----------- 225,954 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.6% - -------------------------------------------------------------------------------- Advanced Micro Devices, Inc. * 196,331 3,807 Agere Systems, Inc. * 113,332 1,650 Altera Corp. * 167,219 2,895 Analog Devices, Inc. 185,074 5,983 Applied Materials, Inc. 789,089 12,420 Atmel Corp. * 432,817 2,073 Broadcom Corp., Class A * 239,525 5,746 Cypress Semiconductor Corp. (a)* 13,168 200 Fairchild Semiconductor International, Inc. * 59,000 965 Freescale Semiconductor, Inc., Class B * 195,106 5,564 Integrated Device Technology, Inc. * 91,571 1,417 Intel Corp. 2,653,430 47,762 International Rectifier Corp. * 23,542 839 Intersil Corp., Class A 84,467 1,986 KLA-Tencor Corp. 90,738 3,828 Lam Research Corp. * 66,500 2,766 Linear Technology Corp. 141,666 4,583 LSI Logic Corp. (a)* 192,745 1,581 Marvell Technology Group Ltd. * 261,462 4,850 Maxim Integrated Products, Inc. 147,621 4,337 MEMC Electronic Materials, Inc. * 96,877 2,947 Microchip Technology, Inc. 96,966 3,128 Micron Technology, Inc. * 301,400 4,699 National Semiconductor Corp. 179,658 4,179 Novellus Systems, Inc. * 71,495 1,810 NVIDIA Corp. * 164,800 3,647 Rambus, Inc. * 20,164 355 Silicon Laboratories, Inc. * 45,436 1,678 Teradyne, Inc. * 89,557 1,177 Texas Instruments, Inc. (b) 764,475 22,766 Xilinx, Inc. 162,205 3,291 ----------- 164,929
8 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) SOFTWARE & SERVICES 5.7% - -------------------------------------------------------------------------------- Accenture Ltd., Class A 396,693 11,607 Activision, Inc. * 102,269 1,222 Acxiom Corp. 43,076 1,054 Adobe Systems, Inc. * 272,213 7,761 Affiliated Computer Services, Inc., Class A * 56,867 2,896 Akamai Technologies, Inc. * 39,209 1,554 Alliance Data Systems Corp. * 31,271 1,605 Autodesk, Inc. * 112,972 3,853 Automatic Data Processing, Inc. 256,651 11,231 BEA Systems, Inc. * 205,406 2,411 BMC Software, Inc. * 111,712 2,616 CA, Inc. 282,181 5,915 Cadence Design Systems, Inc. * 136,887 2,216 Ceridian Corp. * 73,700 1,770 CheckFree Corp. * 44,880 1,997 Citrix Systems, Inc. * 84,000 2,669 Cognizant Technology Solutions Corp., Class A * 59,383 3,889 Computer Sciences Corp. (a)* 92,731 4,858 Compuware Corp. * 178,164 1,245 Convergys Corp. * 53,909 1,029 DST Systems, Inc. * 22,480 1,266 Electronic Arts, Inc. * 138,281 6,514 Electronic Data Systems Corp. 251,895 6,020 Fair Isaac Corp. 31,051 1,049 Fidelity National Information Services, Inc. 83,665 2,990 First Data Corp. 352,490 14,399 Fiserv, Inc. * 96,589 4,217 Global Payments, Inc. 44,138 1,878 Google, Inc., Class A * 131,796 50,952 Hewitt Associates, Inc., Class A * 51,138 1,149 Intuit, Inc. * 181,844 5,614 Iron Mountain, Inc. * 48,925 2,006 McAfee, Inc. * 78,229 1,686 Microsoft Corp. (b) 4,665,688 112,116 MoneyGram International, Inc. 38,561 1,182 NAVTEQ Corp. * 34,692 978 Novell, Inc. * 186,424 1,210 Oracle Corp. * 2,388,510 35,756 Paychex, Inc. 174,478 5,964 Red Hat, Inc. * 91,683 2,171 Sabre Holdings Corp., Class A 67,900 1,406 Salesforce.com, Inc. (a)* 25,321 651 Symantec Corp. * 472,374 8,205 Synopsys, Inc. * 77,100 1,380 The Reynolds & Reynolds Co., Class A 36,269 1,284 Total System Services, Inc. (a) 73,915 1,554 Unisys Corp. * 156,321 800 VeriSign, Inc. * 99,505 1,784 Yahoo! Inc. * 635,629 17,251 ----------- 366,830 TECHNOLOGY HARDWARE & EQUIPMENT 5.6% - -------------------------------------------------------------------------------- ADC Telecommunications, Inc. * 43,267 529 ADTRAN, Inc. 28,105 615 Agilent Technologies, Inc. * 211,131 6,005 Amphenol Corp., Class A 40,410 2,266 Andrew Corp. * 65,900 557 Apple Computer, Inc. (b)* 381,114 25,900 Arrow Electronics, Inc. * 57,100 1,614 Avaya, Inc. * 260,398 2,411 Avnet, Inc. * 66,746 1,215 AVX Corp. (a) 105,132 1,592 CDW Corp. 31,200 1,843 Ciena Corp. (a)* 264,275 959 Cisco Systems, Inc. * 2,838,015 50,659 Comverse Technology, Inc. * 92,867 1,800 Corning, Inc. * 703,063 13,407 Dell, Inc. * 1,057,699 22,931 Diebold, Inc. 25,318 1,023 Dolby Laboratories Inc., Class A * 23,129 464 EMC Corp. * 1,102,924 11,195 F5 Networks, Inc. * 4,559 211 Harris Corp. 66,646 3,036 Hewlett-Packard Co. 1,309,818 41,796 Ingram Micro, Inc., Class A * 34,851 614 International Business Machines Corp. 725,390 56,152 Jabil Circuit, Inc. 86,900 2,007 JDS Uniphase Corp. * 650,445 1,385 Juniper Networks, Inc. * 206,894 2,783 Lexmark International, Inc., Class A * 62,559 3,381 Lucent Technologies, Inc. * 2,051,582 4,370 Molex, Inc. (a) 94,721 3,005 Motorola, Inc. 1,161,188 26,429 National Instruments Corp. 38,765 1,076 NCR Corp. * 94,344 3,032 Network Appliance, Inc. * 158,900 4,718 QLogic Corp. * 73,400 1,284 Qualcomm, Inc. 761,328 26,844 SanDisk Corp. * 69,258 3,232 Sanmina -- SCI Corp. * 240,427 832 Seagate Technology * 220,237 5,109 Solectron Corp. * 479,705 1,449 Sun Microsystems, Inc. (b)* 1,555,739 6,767 SunPower Corp., Class A (a)* 22,992 734 Symbol Technologies, Inc. 58,690 649 Tech Data Corp. * 29,052 1,080 Tektronix, Inc. 46,217 1,260 Tellabs, Inc. * 231,575 2,177 Vishay Intertechnology, Inc. * 107,250 1,505 Western Digital Corp. (a)* 99,512 1,745 Xerox Corp. * 439,930 6,199 Zebra Technologies Corp., Class A * 20,225 634 ----------- 362,480 TELECOMMUNICATION SERVICES 3.1% - -------------------------------------------------------------------------------- Alltel Corp. 174,914 9,650 American Tower Corp., Class A * 189,989 6,422 AT&T Corp. (b) 1,777,848 53,318 BellSouth Corp. 845,066 33,101
9 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) CenturyTel, Inc. 67,187 2,591 Citizens Communications Co. 154,758 1,986 Crown Castle International Corp. * 97,060 3,419 Embarq Corp. * 75 3 Leap Wireless International, Inc. * 27,680 1,237 Level 3 Communications, Inc. * 365,340 1,429 NII Holdings, Inc. * 54,341 2,868 Qwest Communications International, Inc. (a)* 870,635 6,956 Sprint Nextel Corp. (b) 1,327,907 26,293 Telephone & Data Systems, Inc. 53,101 2,170 U.S. Cellular Corp. * 39,840 2,396 Verizon Communications, Inc. 1,351,137 45,696 Windstream Corp. 180,849 2,266 ----------- 201,801 TRANSPORTATION 1.8% - -------------------------------------------------------------------------------- Alexander & Baldwin, Inc. 15,426 619 AMR Corp. (a)* 122,251 2,689 Burlington Northern Santa Fe Corp. 172,281 11,872 C.H. Robinson Worldwide, Inc. 85,048 3,893 Con-way, Inc. 16,208 802 CSX Corp. 106,271 6,449 Expeditors International of Washington, Inc. 84,098 3,824 FedEx Corp. 145,228 15,207 J.B. Hunt Transport Services, Inc. (a) 69,991 1,440 Laidlaw International, Inc. 51,982 1,377 Landstar Systems, Inc. 26,430 1,128 Norfolk Southern Corp. 196,106 8,515 Ryder System, Inc. 8,764 442 Southwest Airlines Co. 360,288 6,482 UAL Corp. (a)* 57,667 1,507 Union Pacific Corp. 121,691 10,344 United Parcel Service, Inc., Class B 510,825 35,201 US Airways Group, Inc. * 7,948 363 UTI Worldwide, Inc. 43,080 1,004 YRC Worldwide, Inc. * 24,091 958 ----------- 114,116 UTILITIES 3.4% - -------------------------------------------------------------------------------- AGL Resources, Inc. 29,100 1,135 Allegheny Energy, Inc. * 80,053 3,286 Alliant Energy Corp. (a) 56,200 2,033 Ameren Corp. (a) 71,685 3,692 American Electric Power Co., Inc. 176,431 6,373 Aqua America, Inc. (a) 43,134 940 Atmos Energy Corp. 24,818 714 Calpine Corp. * 81,354 33 CenterPoint Energy, Inc. (a) 114,911 1,579 CMS Energy Corp. * 83,533 1,170 Consolidated Edison, Inc. 104,406 4,893 Constellation Energy Group, Inc. 82,341 4,768 Dominion Resources, Inc. 152,529 11,970 DPL, Inc. 58,361 1,620 DTE Energy Co. 75,397 3,191 Duke Energy Corp. 556,943 16,886 Edison International 161,354 6,677 Energen Corp. 11,496 490 Energy East Corp. 36,053 877 Entergy Corp. 91,022 7,018 Equitable Resources, Inc. 48,200 1,736 Exelon Corp. 309,356 17,912 FirstEnergy Corp. 149,370 8,365 FPL Group, Inc. 181,608 7,835 Hawaiian Electric Industries, Inc. (a) 18,448 529 KeySpan Corp. 80,439 3,239 MDU Resources Group, Inc. 44,618 1,100 Mirant Corp. * 138,402 3,677 National Fuel Gas Co. (a) 27,047 1,005 NiSource, Inc. 113,480 2,582 Northeast Utilities 45,314 1,015 NRG Energy, Inc. * 53,565 2,638 NSTAR 21,712 677 OGE Energy Corp. 29,180 1,104 Oneok, Inc. 32,162 1,197 Pepco Holdings, Inc. 91,374 2,239 PG&E Corp. 170,737 7,116 Pinnacle West Capital Corp. 36,487 1,569 PPL Corp. 173,611 5,906 Progress Energy, Inc. 109,085 4,751 Public Service Enterprise Group, Inc. 109,961 7,415 Puget Energy, Inc. 46,219 1,027 Questar Corp. 35,560 3,151 Reliant Energy, Inc. * 111,797 1,406 SCANA Corp. 32,431 1,297 Seagate Escrow Technology (d)* 126,560 -- Sempra Energy 108,478 5,235 Southern Union Co. 40,862 1,109 TECO Energy, Inc. 92,117 1,468 The AES Corp. (b)* 320,202 6,359 The Southern Co. (a) 316,118 10,678 TXU Corp. 230,764 14,822 UGI Corp. 50,848 1,264 Wisconsin Energy Corp. (a) 43,168 1,822 WPS Resources Corp. 14,155 730 Xcel Energy, Inc. 137,409 2,754 ----------- 216,074 FOREIGN COMMON STOCK 0.1% OF NET ASSETS CAYMAN ISLANDS 0.1% - -------------------------------------------------------------------------------- ENERGY 0.1% - -------------------------------------------------------------------------------- GlobalSantaFe Corp. 96,995 5,328 OTHER INVESTMENT COMPANY 0.1% OF NET ASSETS SSgA Prime Money Market Fund 7,886,087 7,886
10 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
SECURITY FACE AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) U.S. TREASURY OBLIGATION 0.0% OF NET ASSETS U.S. Treasury Bill 4.82%, 09/14/06 994 994
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Warrants 0.0% of net assets Raytheon Co. 12,506 161
End of Investments. COLLATERAL INVESTED FOR SECURITIES ON LOAN 3.1% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 198,755,496 198,755
End of collateral invested for securities on loan. At 07/31/06 the tax basis cost of the fund's investments was $3,277,172, and the unrealized appreciation and depreciation were $3,343,773 and ($184,313), respectively, with a net unrealized appreciation of $3,159,460. In addition to the above, the fund held the following at 07/31/2006. All numbers are x1,000 except number of futures contracts.
NUMBER OF CONTRACT UNREALIZED CONTRACTS VALUE GAINS FUTURES CONTRACTS S&P 500 Index Futures Long, expires 09/14/06 5 1,602 12 S&P 500 Index, e-mini, Long, expires 09/15/06 100 6,409 41
* Non-income producing security. (a) All or a portion of this security is on loan. (b) All or a portion of this security is held as collateral for open futures contracts. (c) Issuer is affiliated with the fund's adviser. (d) Fair-valued by Management. 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, Evelyn Dilsaver and Registrant's Principal Financial Officer, George Pereira, have concluded that Registrant's disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant's officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. (b) During Registrant's last fiscal quarter, there have been no changes in Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Separate certifications for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), are attached. Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Schwab Investments - Schwab 1000 Index Fund ------------------------------------------- By: /s/ Evelyn Dilsaver ---------------------------------------- Evelyn Dilsaver Chief Executive Officer Date: September 15, 2006 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/ Evelyn Dilsaver ---------------------------------------- Evelyn Dilsaver Chief Executive Officer Date: September 15, 2006 By: /s/ George Pereira ---------------------------------------- George Pereira Principal Financial Officer Date: September 15, 2006 EX-99.CERT 2 f23632siexv99wcert.txt EX-99.CERT CERTIFICATIONS I, Evelyn Dilsaver, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investment - Schwab 1000 Index Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 15, 2006 /s/ Evelyn Dilsaver ------------------------------------- Evelyn Dilsaver President and Chief Executive Officer CERTIFICATIONS I, George Pereira, certify that: 1. I have reviewed this report on Form N-Q of Schwab Investments - Schwab 1000 Index Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: September 15, 2006 /s/ George Pereira ------------------------------------- George Pereira Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----