-----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, AXDKYL5Et2T8nNq2vQ9EcrIimisTJOtlgD1dpO/bAdSQFze9SBfs3IboOKljjTCE p3u1f7Z7OTwNXN+r+5Taog== 0000950134-08-017072.txt : 20080924 0000950134-08-017072.hdr.sgml : 20080924 20080924135357 ACCESSION NUMBER: 0000950134-08-017072 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080731 FILED AS OF DATE: 20080924 DATE AS OF CHANGE: 20080924 EFFECTIVENESS DATE: 20080924 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: 081086226 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 f43772sinvq.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) Randall W. Merk 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: July 31, 2008 ITEM 1. SCHEDULE OF INVESTMENTS. SCHWAB INVESTMENTS SCHWAB 1000 INDEX(R) FUND PORTFOLIO HOLDINGS As of July 31, 2008, (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) - -------------------------------------------------------------------------------- 99.7% COMMON STOCK 2,888,442 5,771,202 0.2% FOREIGN COMMON STOCK 7,106 9,066 0.1% SHORT-TERM INVESTMENTS 7,235 7,235 - -------------------------------------------------------------------------------- 100.0% TOTAL INVESTMENTS 2,902,783 5,787,503 6.6% COLLATERAL INVESTED FOR SECURITIES ON LOAN 382,375 382,375 (6.6)% OTHER ASSETS AND LIABILITIES, NET (381,903) - -------------------------------------------------------------------------------- 100.0% NET ASSETS 5,787,975
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) COMMON STOCK 99.7% OF NET ASSETS AUTOMOBILES & COMPONENTS 0.5% - -------------------------------------------------------------------------------- BorgWarner, Inc. 53,698 2,165 Ford Motor Co. (a)* 996,887 4,785 General Motors Corp. (a) 262,305 2,904 Gentex Corp. (a) 66,272 1,025 Harley-Davidson, Inc. (a) 106,092 4,014 Johnson Controls, Inc. 268,674 8,103 Lear Corp. * 35,000 504 The Goodyear Tire & Rubber Co. * 105,400 2,069 WABCO Holdings, Inc. 23,000 1,039 --------------- 26,608 BANKS 2.8% - -------------------------------------------------------------------------------- Associated Banc-Corp (a) 57,148 954 Astoria Financial Corp. 11,304 253 Bank of Hawaii Corp. 23,032 1,161 BB&T Corp. (a) 245,500 6,879 BOK Financial Corp. (a) 10,000 400 City National Corp. (a) 16,532 812 Comerica, Inc. (a) 70,128 2,014 Commerce Bancshares, Inc. 30,293 1,322 Cullen/Frost Bankers, Inc. 24,800 1,308 Fannie Mae (a) 448,834 5,162 Fifth Third Bancorp (a) 241,384 3,372 Freddie Mac (a) 287,805 2,351 Fulton Financial Corp. (a) 22,544 238 Hudson City Bancorp, Inc. 220,240 4,021 Huntington Bancshares, Inc. (a) 165,098 1,159 KeyCorp 180,914 1,909 M&T Bank Corp. (a) 35,543 2,501 Marshall & Ilsley Corp. (a) 118,531 1,802
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) National City Corp. 254,876 1,205 New York Community Bancorp, Inc. (a) 137,882 2,292 People's United Financial, Inc. 140,593 2,387 PNC Financial Services Group, Inc. 154,413 11,008 Popular, Inc. (a) 129,386 889 Regions Financial Corp. (a) 313,806 2,975 Sovereign Bancorp, Inc. (a) 167,420 1,594 SunTrust Banks, Inc. (a) 162,693 6,680 Synovus Financial Corp. (a) 151,441 1,440 TCF Financial Corp. (a) 48,584 619 TFS Financial Corp. (a) 34,000 387 U.S. Bancorp 788,855 24,147 UnionBanCal Corp. 22,465 1,207 Valley National Bancorp (a) 47,555 939 Wachovia Corp. (a) 952,629 16,452 Washington Mutual, Inc. (a) 542,293 2,890 Wells Fargo & Co. 1,487,896 45,039 Wilmington Trust Corp. (a) 30,237 713 Zions Bancorp (a) 50,098 1,466 --------------- 161,947 CAPITAL GOODS 8.9% - -------------------------------------------------------------------------------- 3M Co. 322,034 22,668 Acuity Brands, Inc. (a) 30,000 1,226 Aecom Technology Corp. * 16,000 456 AGCO Corp. * 41,700 2,496 Alliant Techsystems, Inc. (a)* 13,438 1,330 AMETEK, Inc. 49,247 2,357 BE Aerospace, Inc. * 38,000 976 Bucyrus International, Inc. 24,000 1,680 Carlisle Cos., Inc. (a) 20,236 619 Caterpillar, Inc. 284,176 19,756 Cooper Industries Ltd., Class A 84,700 3,572 Crane Co. 23,584 837 Cummins, Inc. 96,532 6,404 Danaher Corp. 110,320 8,787 Deere & Co. (a) 198,346 13,916 Donaldson Co., Inc. 25,900 1,168 Dover Corp. 92,937 4,612 DRS Technologies, Inc. (a) 15,000 1,182 Eaton Corp. 67,959 4,828 Emerson Electric Co. 357,988 17,434 Fastenal Co. (a) 50,900 2,487 First Solar, Inc. * 16,000 4,562 Flowserve Corp. 25,341 3,379 Fluor Corp. 81,558 6,635 GATX Corp. 20,000 909 General Cable Corp. (a)* 20,000 1,153 General Dynamics Corp. 188,224 16,778 General Electric Co. 4,534,422 128,279 Goodrich Corp. 58,098 2,855 Graco, Inc. (a) 25,194 913 Harsco Corp. 38,900 2,104 Honeywell International, Inc. 338,599 17,214 Hubbell, Inc., Class B (a) 26,832 1,131 Icahn Enterprises L.P. (a) 10,600 693
1 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) IDEX Corp. 37,306 1,411 Illinois Tool Works, Inc. 189,704 8,888 Ingersoll-Rand Co., Ltd., Class A 143,379 5,162 ITT Corp. 90,394 6,053 Jacobs Engineering Group, Inc. * 54,856 4,243 Joy Global, Inc. 45,008 3,250 KBR, Inc. 70,000 1,995 Kennametal, Inc. 35,198 1,047 L-3 Communications Holdings, Inc. 57,724 5,697 Lennox International, Inc. 22,000 785 Lincoln Electric Holdings, Inc. 18,000 1,446 Lockheed Martin Corp. 159,954 16,688 Masco Corp. 175,736 2,898 McDermott International, Inc. * 102,712 4,896 MSC Industrial Direct Co., Inc., Class A 9,658 461 Northrop Grumman Corp. 154,532 10,414 Oshkosh Corp. 31,828 574 Owens Corning, Inc. (a)* 47,300 1,230 PACCAR, Inc. 172,589 7,259 Pall Corp. 55,133 2,228 Parker Hannifin Corp. 79,453 4,901 Pentair, Inc. (a) 46,300 1,603 Precision Castparts Corp. 61,301 5,727 Quanta Services, Inc. (a)* 54,000 1,667 Raytheon Co. 194,590 11,078 Rockwell Automation, Inc. 67,049 2,984 Rockwell Collins, Inc. 76,953 3,824 Roper Industries, Inc. 39,091 2,392 Spirit AeroSystems Holdings, Inc., Class A * 22,000 477 SPX Corp. 27,614 3,501 SunPower Corp., Class A (a)* 10,000 788 Teleflex, Inc. 20,146 1,235 Terex Corp. * 47,582 2,252 Textron, Inc. 116,138 5,048 The Boeing Co. 350,789 21,437 The Manitowoc Co., Inc. 59,246 1,562 The Shaw Group, Inc. * 30,669 1,773 The Timken Co. 43,594 1,439 Thomas & Betts Corp. * 23,129 957 Trinity Industries, Inc. (a) 33,691 1,268 Tyco International Ltd. 229,248 10,215 United Technologies Corp. 446,863 28,590 URS Corp. * 25,000 1,048 USG Corp. (a)* 35,006 1,005 Valmont Industries, Inc. 5,000 535 W.W. Grainger, Inc. 31,176 2,791 Walter Industries, Inc. 17,000 1,783 WESCO International, Inc. * 19,593 738 --------------- 514,639 COMMERCIAL & PROFESSIONAL SUPPLIES 0.7% - -------------------------------------------------------------------------------- Allied Waste Industries, Inc. * 118,243 1,431 Avery Dennison Corp. 42,460 1,869 ChoicePoint, Inc. * 33,182 1,588 Cintas 48,110 1,368 Copart, Inc. * 33,014 1,448 Corrections Corp. of America * 50,000 1,401
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Covanta Holding Corp. * 54,848 1,543 Equifax, Inc. 57,900 2,032 FTI Consulting, Inc. (a)* 18,000 1,281 IHS, Inc., Class A * 12,000 747 Manpower, Inc. 36,791 1,766 Monster Worldwide, Inc. (a)* 56,500 1,002 Pitney Bowes, Inc. (a) 92,741 2,939 R.R. Donnelley & Sons Co. 99,419 2,654 Republic Services, Inc. 78,072 2,537 Robert Half International, Inc. 71,491 1,808 Stericycle, Inc. * 39,098 2,336 The Brink's Co. 22,415 1,546 The Dun & Bradstreet Corp. 27,825 2,689 Waste Management, Inc. 225,177 8,003 Watson Wyatt Worldwide, Inc., Class A 16,000 927 --------------- 42,915 CONSUMER DURABLES & APPAREL 1.0% - -------------------------------------------------------------------------------- Centex Corp. (a) 52,500 771 Coach, Inc. * 170,310 4,345 D.R. Horton, Inc. 111,397 1,239 Eastman Kodak Co. (a) 133,321 1,952 Fortune Brands, Inc. 66,628 3,818 Fossil, Inc. (a)* 16,000 428 Garmin Ltd. (a) 31,686 1,130 Hanesbrands, Inc. * 36,100 774 Harman International Industries, Inc. (a) 28,097 1,157 Hasbro, Inc. 74,625 2,890 KB HOME (a) 28,176 496 Leggett & Platt, Inc. (a) 79,244 1,545 Lennar Corp., Class A (a) 46,575 564 Liz Claiborne, Inc. 42,800 559 M.D.C. Holdings, Inc. (a) 14,679 609 Mattel, Inc. 169,997 3,408 Mohawk Industries, Inc. (a)* 24,839 1,465 Newell Rubbermaid, Inc. 130,926 2,164 NIKE, Inc., Class B 174,068 10,214 NVR, Inc. * 2,298 1,269 Phillips-Van Heusen Corp. 25,700 910 Polo Ralph Lauren Corp. 26,495 1,568 Pulte Homes, Inc. (a) 94,712 1,156 Snap-on, Inc. 27,350 1,540 The Black & Decker Corp. (a) 32,580 1,955 The Stanley Works 38,394 1,708 Toll Brothers, Inc. (a)* 54,500 1,095 Tupperware Brands Corp. 23,000 897 VF Corp. 41,682 2,984 Whirlpool Corp. (a) 35,815 2,711 --------------- 57,321 CONSUMER SERVICES 1.5% - -------------------------------------------------------------------------------- Apollo Group, Inc., Class A * 62,121 3,870 Brinker International, Inc. 44,600 820 Carnival Corp. 195,110 7,207 Chipotle Mexican Grill, Inc., Class A (a)* 12,000 822 Darden Restaurants, Inc. 67,315 2,192 DeVry, Inc. 21,000 1,193
2 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) H&R Block, Inc. 118,798 2,890 International Game Technology 139,526 3,029 International Speedway Corp., Class A 16,569 610 ITT Educational Services, Inc. (a)* 13,301 1,178 Las Vegas Sands Corp. (a)* 45,663 2,079 Marriott International, Inc., Class A 134,756 3,492 McDonald's Corp. 523,736 31,314 MGM MIRAGE (a)* 55,987 1,625 Penn National Gaming, Inc. (a)* 29,860 852 Royal Caribbean Cruises Ltd. (a) 27,591 703 Scientific Games Corp., Class A (a)* 19,143 581 Service Corp. International (a) 118,400 1,133 Starbucks Corp. * 329,627 4,842 Starwood Hotels & Resorts Worldwide, Inc. 92,442 3,170 Strayer Education, Inc. 5,000 1,114 Weight Watchers International, Inc. (a) 11,329 405 Wendy's International, Inc. (a) 40,173 922 Wyndham Worldwide Corp. 66,517 1,193 Wynn Resorts Ltd. (a) 22,942 2,236 Yum! Brands, Inc. 216,376 7,751 --------------- 87,223 DIVERSIFIED FINANCIALS 6.9% - -------------------------------------------------------------------------------- Affiliated Managers Group, Inc. * 15,459 1,336 AllianceBernstein Holding L.P. (a) 35,189 1,828 American Express Co. 525,577 19,509 Ameriprise Financial, Inc. 107,657 4,575 Bank of America Corp. 2,065,393 67,952 Bank of New York Mellon Corp. 523,496 18,584 BlackRock, Inc. (a) 7,765 1,683 Capital One Financial Corp. (a) 181,453 7,596 CIT Group, Inc. (a) 88,368 749 Citigroup, Inc. 2,411,662 45,074 CME Group, Inc. 24,448 8,805 Discover Financial Services 201,824 2,957 E*TRADE Financial Corp. (a)* 182,900 552 Eaton Vance Corp. 50,384 1,871 Federated Investors, Inc., Class B 39,050 1,283 Franklin Resources, Inc. 71,086 7,152 GLG Partners, Inc. (a) 50,000 462 IntercontinentalExchange, Inc. * 30,589 3,053 Janus Capital Group, Inc. 66,800 2,027 Jefferies Group, Inc. (a) 25,652 487 JPMorgan Chase & Co. 1,565,528 63,607 Legg Mason, Inc. (a) 53,714 2,167 Lehman Brothers Holdings, Inc. (a) 286,388 4,966 Leucadia National Corp. (a) 75,164 3,365 Liberty Media Corp. - Capital, Series A * 61,661 958 Merrill Lynch & Co., Inc. (a) 570,562 15,206 Moody's Corp. (a) 91,126 3,172 Morgan Stanley 487,948 19,264 Northern Trust Corp. 88,076 6,885
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Nymex Holdings, Inc. 33,600 2,755 NYSE Euronext 112,400 5,310 Och-Ziff Capital Management Group (a) 25,000 409 Raymond James Financial, Inc. (a) 33,649 973 SEI Investments Co. 58,748 1,353 SLM Corp. * 190,324 3,260 State Street Corp. 193,400 13,855 T. Rowe Price Group, Inc. 117,450 7,029 TD Ameritrade Holding Corp. * 83,631 1,665 The Blackstone Group L.P. 55,000 1,021 The Charles Schwab Corp. (b) 427,315 9,781 The Goldman Sachs Group, Inc. 179,032 32,949 The Nasdaq OMX Group, Inc. (a)* 80,137 2,225 Waddell & Reed Financial, Inc., Class A 30,000 1,002 --------------- 400,712 ENERGY 13.8% - -------------------------------------------------------------------------------- Alpha Natural Resources, Inc. * 28,000 2,771 Anadarko Petroleum Corp. 211,348 12,239 Apache Corp. 150,150 16,842 Arch Coal, Inc. 58,200 3,277 Atwood Oceanics, Inc. * 20,000 918 Baker Hughes, Inc. 145,707 12,081 Berry Petroleum Co., Class A (a) 15,000 646 Bill Barrett Corp. * 12,000 494 BJ Services Co. 132,346 3,891 Buckeye Partners L.P. (a) 14,000 590 Cabot Oil & Gas Corp. 44,774 1,971 Cameron International Corp. * 100,200 4,786 Chesapeake Energy Corp. (a) 203,597 10,210 Chevron Corp. 962,177 81,362 Cimarex Energy Co. 29,215 1,522 CNX Gas Corp. (a)* 8,000 250 ConocoPhillips 724,766 59,155 CONSOL Energy, Inc. 82,598 6,144 Continental Resources, Inc. (a)* 5,000 286 Delta Petroleum Corp. (a)* 25,000 477 Denbury Resources, Inc. * 105,884 2,980 Devon Energy Corp. 206,082 19,555 Diamond Offshore Drilling, Inc. (a) 28,929 3,451 Dresser-Rand Group, Inc. * 30,000 1,143 Dril-Quip, Inc. * 8,000 433 El Paso Corp. (a) 323,781 5,805 Enbridge Energy Partners L.P. 23,100 1,149 Encore Acquisition Co. * 18,000 1,114 Energy Transfer Partners L.P. (a) 33,400 1,428 ENSCO International, Inc. 67,928 4,697 Enterprise Products Partners L.P. (a) 130,258 3,875 EOG Resources, Inc. 111,752 11,234 EXCO Resources, Inc. (a)* 28,000 729 Exterran Holdings, Inc. * 25,599 1,445 Exxon Mobil Corp. 2,420,522 194,683 FMC Technologies, Inc. * 53,784 3,323 Forest Oil Corp. * 37,415 2,134 Foundation Coal Holdings, Inc. 17,000 1,010
3 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Frontier Oil Corp. 45,358 828 Halliburton Co. 420,988 18,869 Helix Energy Solutions Group, Inc. * 23,126 738 Helmerich & Payne, Inc. 46,192 2,731 Hercules Offshore, Inc. * 25,000 624 Hess Corp. 125,223 12,698 Holly Corp. 15,000 429 Kinder Morgan Energy Partners L.P. 68,700 3,932 Kinder Morgan Management L.L.C. * 27,114 1,489 Linn Energy L.L.C. 28,000 611 Magellan Midstream Partners L.P. (a) 30,000 1,085 Marathon Oil Corp. 320,946 15,877 Mariner Energy, Inc. (a)* 33,000 873 Massey Energy Co. 37,501 2,784 Murphy Oil Corp. 82,544 6,581 Nabors Industries Ltd. (a)* 129,088 4,707 National-Oilwell Varco, Inc. * 188,726 14,840 Newfield Exploration Co. * 53,066 2,599 Noble Corp. 120,700 6,261 Noble Energy 78,961 5,833 NuStar Energy L.P. 16,895 775 Occidental Petroleum Corp. 374,616 29,531 Oceaneering International, Inc. * 19,000 1,152 Oil States International, Inc. * 17,000 933 ONEOK Partners L.P. 21,300 1,153 Overseas Shipholding Group, Inc. 8,000 630 Patterson-UTI Energy, Inc. 70,321 1,999 Peabody Energy Corp. 116,021 7,849 Petrohawk Energy Corp. * 73,000 2,432 Pioneer Natural Resources Co. 53,111 3,157 Plains All American Pipeline L.P. 43,032 1,982 Plains Exploration & Production Co. * 44,757 2,505 Pride International, Inc. * 72,494 2,810 Quicksilver Resources, Inc. * 35,890 939 Range Resources Corp. 65,628 3,187 Rowan Cos., Inc. (a) 44,283 1,762 SandRidge Energy, Inc. (a)* 43,000 2,102 Schlumberger Ltd. 546,506 55,525 Smith International, Inc. 86,959 6,468 Southwestern Energy Co. * 146,688 5,326 Spectra Energy Corp. 291,171 7,911 St. Mary Land & Exploration Co. 20,513 873 Sunoco, Inc. (a) 54,500 2,213 Superior Energy Services, Inc. * 35,000 1,660 Teekay Corp. (a) 18,968 828 TEPPCO Partners L.P. (a) 32,277 988 Tesoro Corp. (a) 61,312 947 The Williams Cos., Inc. 277,221 8,885 Tidewater, Inc. (a) 26,568 1,592 Transocean, Inc. * 143,325 19,497 Ultra Petroleum Corp. * 63,612 4,541 Unit Corp. * 17,200 1,162 Valero Energy Corp. 246,170 8,225 W&T Offshore, Inc. 10,000 443 W-H Energy Services, Inc. * 10,000 915
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Weatherford International Ltd. * 302,496 11,413 Whiting Petroleum Corp. * 16,000 1,499 XTO Energy, Inc. 228,197 10,778 --------------- 801,076 FOOD & STAPLES RETAILING 2.5% - -------------------------------------------------------------------------------- BJ's Wholesale Club, Inc. (a)* 29,800 1,118 Costco Wholesale Corp. 196,999 12,348 CVS Caremark Corp. 651,861 23,793 Rite Aid Corp. (a)* 241,000 308 Safeway, Inc. 197,397 5,274 SUPERVALU, Inc. 96,356 2,469 Sysco Corp. 279,090 7,915 The Kroger Co. 328,413 9,288 Wal-Mart Stores, Inc. 1,099,977 64,481 Walgreen Co. 447,669 15,373 Whole Foods Market, Inc. (a) 56,216 1,246 --------------- 143,613 FOOD, BEVERAGE & TOBACCO 5.2% - -------------------------------------------------------------------------------- Altria Group, Inc. 973,215 19,805 Anheuser-Busch Cos., Inc. 325,266 22,040 Archer-Daniels-Midland Co. 289,685 8,294 Brown-Forman Corp., Class B 34,832 2,506 Bunge Ltd. 54,792 5,420 Campbell Soup Co. 99,058 3,604 Central European Distribution Corp. * 10,000 730 Coca-Cola Enterprises, Inc. (a) 129,072 2,185 ConAgra Foods, Inc. 234,197 5,077 Constellation Brands, Inc., Class A * 88,132 1,897 Corn Products International, Inc. 34,500 1,605 Dean Foods Co. * 39,033 831 Del Monte Foods Co. 91,938 781 Flowers Foods, Inc. 30,000 902 Fresh Del Monte Produce, Inc. (a)* 12,000 253 General Mills, Inc. 160,150 10,312 H.J. Heinz Co. 143,798 7,245 Hansen Natural Corp. (a)* 22,000 503 Hormel Foods Corp. 27,247 985 Kellogg Co. 116,181 6,165 Kraft Foods, Inc., Class A (a) 661,464 21,048 McCormick & Co., Inc. 57,554 2,308 Molson Coors Brewing Co., Class B 58,672 3,166 PepsiAmericas, Inc. 25,000 592 PepsiCo, Inc. 722,387 48,082 Philip Morris International, Inc. 948,215 48,975 Reynolds American, Inc. 78,084 4,359 Sara Lee Corp. 340,172 4,647 Smithfield Foods, Inc. (a)* 46,235 993 The Coca-Cola Co. 909,204 46,824 The Hershey Co. (a) 66,424 2,442 The J. M. Smucker Co. 26,201 1,277 The Pepsi Bottling Group, Inc. 60,932 1,697 Tyson Foods, Inc., Class A 116,959 1,743 UST, Inc. (a) 66,025 3,474
4 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Wm. Wrigley Jr. Co. 99,472 7,854 --------------- 300,621 HEALTH CARE EQUIPMENT & SERVICES 4.2% - -------------------------------------------------------------------------------- Aetna, Inc. 226,677 9,296 AmerisourceBergen Corp. 80,310 3,363 Baxter International, Inc. 288,495 19,794 Beckman Coulter, Inc. 27,428 1,984 Becton, Dickinson & Co. 113,465 9,634 Boston Scientific Corp. * 586,507 6,974 C.R. Bard, Inc. 47,000 4,363 Cardinal Health, Inc. 162,110 8,710 Cerner Corp. (a)* 30,326 1,354 CIGNA Corp. 138,054 5,111 Community Health Systems, Inc. * 40,206 1,326 Coventry Health Care, Inc. * 68,962 2,439 Covidien Ltd. 214,248 10,550 DaVita, Inc. * 43,625 2,436 DENTSPLY International, Inc. 70,500 2,838 Edwards Lifesciences Corp. * 26,796 1,680 Express Scripts, Inc. * 114,912 8,106 Gen-Probe, Inc. * 22,670 1,209 Health Net, Inc. * 51,000 1,426 Henry Schein, Inc. * 39,919 2,138 Hlth Corp. (a)* 65,979 722 Hologic, Inc. (a)* 105,370 1,946 Hospira, Inc. * 72,240 2,757 Humana, Inc. * 77,391 3,398 IDEXX Laboratories, Inc. * 26,298 1,407 IMS Health, Inc. 90,189 1,885 Intuitive Surgical, Inc. * 17,215 5,359 Inverness Medical Innovations, Inc. * 28,000 944 Kinetic Concepts, Inc. * 30,492 1,066 Laboratory Corp. of America Holdings * 56,722 3,833 Lincare Holdings, Inc. * 33,050 1,065 McKesson Corp. 132,147 7,399 Medco Health Solutions, Inc. * 239,086 11,854 Medtronic, Inc. 511,018 26,997 Omnicare, Inc. (a) 43,433 1,279 Patterson Cos., Inc. * 58,500 1,827 Pediatrix Medical Group, Inc. * 21,754 1,058 Quest Diagnostics, Inc. 65,847 3,500 ResMed, Inc. (a)* 26,708 1,010 St. Jude Medical, Inc. * 156,905 7,309 Stryker Corp. 116,254 7,462 Tenet Healthcare Corp. (a)* 207,156 1,199 The Cooper Cos., Inc. 7,447 251 UnitedHealth Group, Inc. 566,212 15,899 Universal Health Services, Inc., Class B 22,337 1,354 Varian Medical Systems, Inc. * 58,271 3,496 VCA Antech, Inc. * 37,554 1,094 WellCare Health Plans, Inc. * 13,000 511 WellPoint, Inc. * 246,923 12,951 Zimmer Holdings, Inc. * 106,612 7,347 --------------- 242,910
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) HOUSEHOLD & PERSONAL PRODUCTS 2.4% - -------------------------------------------------------------------------------- Alberto-Culver Co. 37,750 1,013 Avon Products, Inc. 193,036 8,185 Church & Dwight Co., Inc. (a) 28,997 1,591 Colgate-Palmolive Co. 238,027 17,678 Energizer Holdings, Inc. * 26,100 1,862 Herbalife Ltd. (a) 30,509 1,318 Kimberly-Clark Corp. 189,134 10,937 NBTY, Inc. * 26,200 903 The Clorox Co. 63,525 3,462 The Estee Lauder Cos., Inc., Class A (a) 50,854 2,243 The Procter & Gamble Co. 1,399,019 91,608 --------------- 140,800 INSURANCE 4.1% - -------------------------------------------------------------------------------- Aflac, Inc. 216,313 12,029 Alleghany Corp. * 2,056 648 Allied World Assurance Co. Holdings Ltd. 15,000 624 American Financial Group, Inc. 40,405 1,171 American International Group, Inc. 1,182,536 30,805 American National Insurance Co. 11,837 1,119 Aon Corp. 150,563 6,896 Arch Capital Group Ltd. * 14,000 976 Arthur J. Gallagher & Co. 35,720 908 Aspen Insurance Holdings Ltd. 14,000 355 Assurant, Inc. 44,392 2,669 Axis Capital Holdings Ltd. 53,462 1,694 Berkshire Hathaway, Inc., Class A * 301 34,449 Brown & Brown, Inc. 53,376 938 Cincinnati Financial Corp. 74,417 2,072 CNA Financial Corp. 14,050 375 Conseco, Inc. * 67,673 567 Endurance Specialty Holdings Ltd. (a) 18,953 580 Erie Indemnity Co., Class A 20,285 886 Everest Re Group Ltd. 28,420 2,325 Fidelity National Financial, Inc., Class A (a) 96,369 1,288 First American Corp. 42,560 1,073 Genworth Financial, Inc., Class A 204,539 3,267 Hanover Insurance Group, Inc. 26,400 1,133 HCC Insurance Holdings, Inc. 62,357 1,412 Lincoln National Corp. 118,059 5,631 Loews Corp. (a) 135,958 6,058 Markel Corp. * 4,931 1,790 Marsh & McLennan Cos., Inc. 235,720 6,659 MBIA, Inc. (a) 58,234 345 Mercury General Corp. (a) 14,435 729 MetLife, Inc. 324,944 16,497 Nationwide Financial Services, Inc., Class A 23,773 1,102 Old Republic International Corp. 105,309 1,106 PartnerRe Ltd. 25,169 1,770 Philadelphia Consolidated Holding Corp. * 26,645 1,557
5 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Principal Financial Group, Inc. 116,909 4,970 Protective Life Corp. 32,457 1,167 Prudential Financial, Inc. 198,797 13,711 Reinsurance Group of America, Inc. (a) 14,310 711 RenaissanceRe Holdings Ltd. 26,407 1,343 SAFECO Corp. 40,678 2,691 StanCorp Financial Group, Inc. 24,842 1,227 The Allstate Corp. 250,498 11,578 The Chubb Corp. 168,892 8,114 The Hartford Financial Services Group, Inc. 142,795 9,052 The Progressive Corp. 305,292 6,182 The Travelers Cos., Inc. 275,497 12,155 Torchmark Corp. 43,377 2,518 Transatlantic Holdings, Inc. 17,545 1,017 Unitrin, Inc. 16,571 457 Unum Group 158,014 3,818 W. R. Berkley Corp. 70,725 1,671 Wesco Financial Corp. 619 229 White Mountains Insurance Group Ltd. 4,213 1,839 XL Capital Ltd., Class A (a) 83,967 1,502 --------------- 239,455 MATERIALS 4.3% - -------------------------------------------------------------------------------- Air Products & Chemicals, Inc. 100,478 9,566 Airgas, Inc. 36,451 2,088 AK Steel Holding Corp. 51,000 3,238 Albemarle Corp. 36,900 1,436 Alcoa, Inc. 366,520 12,370 Allegheny Technologies, Inc. (a) 43,752 2,069 AptarGroup, Inc. 34,000 1,316 Ashland, Inc. 32,240 1,347 Ball Corp. 45,788 2,041 Bemis Co., Inc. (a) 48,449 1,364 Cabot Corp. (a) 29,816 800 Carpenter Technology Corp. 23,000 890 Celanese Corp., Series A 58,243 2,244 Century Aluminum Co. (a)* 8,000 475 CF Industries Holdings, Inc. 19,000 3,106 Chemtura Corp. 111,747 729 Cleveland-Cliffs, Inc. 38,000 4,120 Commercial Metals Co. 51,294 1,531 Compass Minerals International, Inc. 11,000 832 Crown Holdings, Inc. * 75,676 2,121 Cytec Industries, Inc. 19,500 1,054 Domtar Corp. * 239,100 1,363 E.I. du Pont de Nemours & Co. (a) 409,507 17,940 Eastman Chemical Co. 37,591 2,254 Ecolab, Inc. 78,968 3,530 FMC Corp. 35,552 2,644 Freeport-McMoRan Copper & Gold, Inc. 173,765 16,812 Greif, Inc., Class A 11,000 669 Hercules, Inc. 50,000 1,002 Huntsman Corp. 40,054 541 International Flavors & Fragrances, Inc. 36,208 1,456
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) International Paper Co. 199,607 5,533 Martin Marietta Materials, Inc. (a) 16,849 1,769 MeadWestvaco Corp. (a) 84,583 2,268 Monsanto Co. 258,534 30,794 Nalco Holding Co. 41,943 986 Newmont Mining Corp. 191,508 9,185 Nucor Corp. 146,276 8,370 Owens-Illinois, Inc. * 71,577 3,023 Packaging Corp. of America 38,030 970 Pactiv Corp. * 61,660 1,487 PPG Industries, Inc. 74,206 4,500 Praxair, Inc. 145,028 13,593 Reliance Steel & Aluminum Co. 27,322 1,726 Rohm & Haas Co. 56,701 4,253 RPM International, Inc. 30,000 615 Schnitzer Steel Industries, Inc., Class A 7,000 632 Sealed Air Corp. 73,902 1,604 Sigma-Aldrich Corp. 61,308 3,724 Sonoco Products Co. 48,170 1,571 Southern Copper Corp. (a) 89,946 2,499 Steel Dynamics, Inc. 78,000 2,471 Terra Industries, Inc. 40,000 2,160 Terra Nitrogen Co., L.P. (a) 7,000 848 The Dow Chemical Co. 427,756 14,248 The Lubrizol Corp. 32,160 1,601 The Mosaic Co. * 70,095 8,917 The Scotts Miracle-Gro Co., Class A 14,668 286 The Valspar Corp. (a) 44,946 974 Titanium Metals Corp. (a) 18,585 209 United States Steel Corp. 53,768 8,622 Vulcan Materials Co. (a) 44,425 2,852 Weyerhaeuser Co. (a) 94,815 5,069 --------------- 250,307 MEDIA 2.8% - -------------------------------------------------------------------------------- Adelphia Recovery Trust (a)(c)* 75,707 -- Cablevision Systems Corp., Class A * 106,010 2,574 CBS Corp., Class B 310,205 5,075 Comcast Corp., Class A 1,369,253 28,234 Discovery Holding Co., Class A * 112,397 2,234 DISH Network Corp., Class A * 95,272 2,803 DreamWorks Animation SKG, Inc., Class A * 27,000 802 Gannett Co., Inc. (a) 103,954 1,884 John Wiley & Sons, Inc., Class A 20,480 928 Lamar Advertising Co., Class A (a)* 22,870 868 Liberty Global, Inc., Series A (a)* 155,866 4,494 Liberty Media Corp - Entertainment, Series A * 246,644 6,072 Meredith Corp. (a) 16,639 425 News Corp., Class A 1,035,728 14,635 Omnicom Group, Inc. 151,738 6,478 Regal Entertainment Group, Class A (a) 35,000 583 Sirius Satellite Radio, Inc. (a)* 1,257,508 2,012 The DIRECTV Group, Inc. (a)* 324,345 8,764
6 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) The E.W. Scripps Co., Class A (a) 12,890 89 The Interpublic Group of Cos., Inc. (a)* 217,364 1,911 The McGraw-Hill Cos., Inc. 146,236 5,947 The New York Times Co., Class A (a) 56,925 717 The Walt Disney Co. 856,002 25,980 The Washington Post Co., Class B (a) 2,526 1,562 Time Warner Cable, Inc., Class A (a)* 66,900 1,902 Time Warner, Inc. 1,626,601 23,293 Viacom, Inc., Class B * 300,946 8,405 Virgin Media, Inc. (a) 108,000 1,212 --------------- 159,883 PHARMACEUTICALS & BIOTECHNOLOGY 8.1% - -------------------------------------------------------------------------------- Abbott Laboratories 702,646 39,587 Alexion Pharmaceuticals, Inc. * 13,000 1,219 Allergan, Inc. 140,562 7,299 Amgen, Inc. * 494,560 30,974 Amylin Pharmaceuticals, Inc. (a)* 33,747 1,065 Applied Biosystems, Inc. 76,500 2,825 Barr Pharmaceuticals, Inc. * 43,938 2,899 Bio-Rad Laboratories, Inc., Class A * 5,000 446 Biogen Idec, Inc. * 132,555 9,247 BioMarin Pharmaceuticals, Inc. * 35,000 1,139 Bristol-Myers Squibb Co. 900,539 19,019 Bruker Corp. * 25,000 346 Celgene Corp. * 192,546 14,535 Cephalon, Inc. (a)* 27,000 1,975 Charles River Laboratories International, Inc. * 31,015 2,061 Covance, Inc. * 24,300 2,231 Eli Lilly & Co. 457,671 21,561 Endo Pharmaceuticals Holdings, Inc. * 59,028 1,367 Forest Laboratories, Inc. * 147,446 5,236 Genentech, Inc. * 205,619 19,585 Genzyme Corp. * 122,131 9,361 Gilead Sciences, Inc. * 430,912 23,261 Illumina, Inc. * 20,000 1,865 ImClone Systems, Inc. * 27,380 1,750 Invitrogen Corp. * 42,604 1,890 Johnson & Johnson 1,288,217 88,204 King Pharmaceuticals, Inc. * 104,766 1,206 Merck & Co., Inc. 984,285 32,383 Millipore Corp. * 22,874 1,609 Mylan, Inc. (a)* 113,500 1,472 PerkinElmer, Inc. 56,500 1,644 Perrigo Co. 28,000 986 Pfizer, Inc. 3,073,810 57,388 Pharmaceutical Product Development, Inc. 47,746 1,821 Schering-Plough Corp. 713,716 15,045 Sepracor, Inc. * 49,069 858 Techne Corp. * 17,563 1,397 Thermo Fisher Scientific, Inc. * 194,798 11,789
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Vertex Pharmaceuticals, Inc. * 34,812 1,201 Warner Chilcott Ltd., Class A (a)* 111,500 1,886 Waters Corp. * 47,000 3,193 Watson Pharmaceuticals, Inc. * 47,500 1,373 Wyeth 608,283 24,648 --------------- 470,846 REAL ESTATE 1.8% - -------------------------------------------------------------------------------- Alexandria Real Estate Equities, Inc. 13,000 1,342 AMB Property Corp. 45,825 2,243 Annaly Capital Management, Inc. 176,000 2,652 Apartment Investment & Management Co., Class A (a) 45,585 1,558 AvalonBay Communities, Inc. 34,751 3,465 Boston Properties, Inc. 55,105 5,300 BRE Properties, Inc. (a) 23,424 1,145 Brookfield Properties Corp. 93,750 1,770 Camden Property Trust (a) 26,264 1,292 CapitalSource, Inc. (a) 77,579 901 CB Richard Ellis Group, Inc., Class A (a)* 76,737 1,078 Developers Diversified Realty Corp. (a) 48,900 1,563 Digital Realty Trust, Inc. (a) 22,000 944 Douglas Emmett, Inc. 37,000 871 Duke Realty Corp. (a) 63,437 1,569 Equity Residential 122,072 5,270 Essex Property Trust, Inc. (a) 10,517 1,276 Federal Realty Investment Trust 24,196 1,757 Forest City Enterprises, Inc., Class A (a) 21,588 563 General Growth Properties, Inc. (a) 112,993 3,097 HCP, Inc. (a) 95,280 3,437 Health Care REIT, Inc. 34,021 1,697 Highwoods Properties, Inc. 26,000 949 Hospitality Properties Trust 43,481 926 Host Hotels & Resorts, Inc. (a) 241,534 3,166 iStar Financial, Inc. (a) 58,693 482 Jones Lang LaSalle, Inc. (a) 14,305 681 Kimco Realty Corp. (a) 104,831 3,699 Liberty Property Trust 40,104 1,460 Mack-Cali Realty Corp. 28,347 1,088 Nationwide Health Properties, Inc. 40,000 1,484 Plum Creek Timber Co., Inc. (a) 82,198 4,005 ProLogis 118,761 5,805 Public Storage 56,859 4,656 Rayonier, Inc. 34,923 1,632 Realty Income Corp. (a) 46,000 1,159 Regency Centers Corp. 32,082 1,909 Senior Housing Properties Trust 33,000 695 Simon Property Group, Inc. 102,678 9,511 SL Green Realty Corp. 27,401 2,284 Taubman Centers, Inc. (a) 24,000 1,152 The Macerich Co. 31,678 1,753 The St. Joe Co. (a) 34,800 1,219 UDR, Inc. (a) 62,789 1,604 Ventas, Inc. 55,419 2,486
7 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Vornado Realty Trust 60,451 5,747 Weingarten Realty Investors (a) 35,002 1,067 --------------- 105,409 RETAILING 2.7% - -------------------------------------------------------------------------------- Abercrombie & Fitch Co., Class A (a) 34,819 1,923 Advance Auto Parts, Inc. 44,702 1,837 Amazon.com, Inc. * 139,741 10,668 American Eagle Outfitters, Inc. 91,085 1,275 AutoNation, Inc. (a)* 34,466 356 AutoZone, Inc. * 21,033 2,740 Barnes & Noble, Inc. (a) 23,118 547 Bed Bath & Beyond, Inc. (a)* 116,720 3,248 Best Buy Co., Inc. 160,176 6,362 Big Lots, Inc. (a)* 42,200 1,286 CarMax, Inc. (a)* 91,100 1,221 Dick's Sporting Goods, Inc. (a)* 28,000 491 Dollar Tree, Inc. * 42,608 1,598 Expedia, Inc. * 114,109 2,233 Family Dollar Stores, Inc. 65,200 1,519 Foot Locker, Inc. 70,109 1,056 GameStop Corp., Class A * 70,300 2,848 Genuine Parts Co. 74,730 2,998 Guess?, Inc. 17,000 538 IAC/InterActiveCorp. * 76,460 1,335 J. Crew Group, Inc. (a)* 15,000 431 J.C. Penney Co., Inc. 100,422 3,096 Kohl's Corp. * 140,165 5,874 Liberty Media Corp. - Interactive Class A * 256,108 3,593 Limited Brands, Inc. (a) 119,023 1,963 LKQ Corp. * 40,000 820 Lowe's Cos., Inc. 679,246 13,802 Macy's, Inc. 191,876 3,609 Netflix, Inc. (a)* 17,000 525 Nordstrom, Inc. (a) 81,300 2,337 O'Reilly Automotive, Inc. * 44,566 1,138 Office Depot, Inc. * 126,730 862 PetSmart, Inc. (a) 57,695 1,310 Priceline.com, Inc. (a)* 15,000 1,724 RadioShack Corp. 63,140 1,053 Ross Stores, Inc. 57,756 2,193 Saks, Inc. (a)* 60,179 613 Sears Holdings Corp. (a)* 33,894 2,746 Staples, Inc. 325,470 7,323 Target Corp. 365,142 16,515 The Gap, Inc. 207,275 3,341 The Home Depot, Inc. 780,065 18,589 The Sherwin-Williams Co. (a) 46,190 2,460 The TJX Cos., Inc. 211,165 7,118 Tiffany & Co. 61,173 2,312 Urban Outfitters, Inc. * 33,496 1,106 Williams-Sonoma, Inc. (a) 38,821 677 --------------- 153,209 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 2.4% - -------------------------------------------------------------------------------- Advanced Micro Devices, Inc. (a)* 196,331 827 Altera Corp. 155,919 3,422 Analog Devices, Inc. 141,674 4,322
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Applied Materials, Inc. 641,089 11,104 Broadcom Corp., Class A * 205,825 5,000 Cree, Inc. (a)* 30,000 582 Cypress Semiconductor Corp. (a)* 53,268 1,452 Integrated Device Technology, Inc. * 114,071 1,143 Intel Corp. 2,613,630 57,996 Intersil Corp., Class A 60,867 1,469 KLA-Tencor Corp. (a) 84,538 3,178 Lam Research Corp. * 56,300 1,852 Linear Technology Corp. (a) 97,366 3,023 LSI Corp. * 334,498 2,321 Marvell Technology Group Ltd. * 214,362 3,170 MEMC Electronic Materials, Inc. * 99,077 4,578 Microchip Technology, Inc. 87,266 2,786 Micron Technology, Inc. * 334,000 1,613 National Semiconductor Corp. 103,458 2,167 Novellus Systems, Inc. * 50,295 1,025 NVIDIA Corp. * 247,199 2,828 ON Semiconductor Corp. (a)* 105,000 986 Rambus, Inc. (a)* 40,964 678 Silicon Laboratories, Inc. * 24,236 793 Teradyne, Inc. * 89,557 839 Texas Instruments, Inc. 624,375 15,222 Varian Semiconductor Equipment Associates, Inc. * 35,200 1,029 Xilinx, Inc. 141,905 3,524 --------------- 138,929 SOFTWARE & SERVICES 6.3% - -------------------------------------------------------------------------------- Accenture Ltd., Class A 360,442 15,052 Activision Blizzard, Inc. * 115,669 4,162 Adobe Systems, Inc. * 263,213 10,884 Affiliated Computer Services, Inc., Class A * 45,867 2,211 Akamai Technologies, Inc. * 57,909 1,352 Alliance Data Systems Corp. * 31,271 2,006 ANSYS, Inc. * 28,000 1,285 Autodesk, Inc. * 107,372 3,424 Automatic Data Processing, Inc. 243,251 10,389 BMC Software, Inc. * 87,712 2,885 Broadridge Financial Solutions, Inc. 50,000 1,035 CA, Inc. 178,181 4,251 Cadence Design Systems, Inc. * 150,387 1,111 Citrix Systems, Inc. * 83,700 2,230 Cognizant Technology Solutions Corp., Class A * 130,166 3,654 Computer Sciences Corp. * 80,331 3,805 Compuware Corp. * 150,464 1,655 Convergys Corp. * 63,309 804 DST Systems, Inc. (a)* 18,980 1,147 eBay, Inc. * 524,920 13,212 Electronic Arts, Inc. * 143,781 6,208 Electronic Data Systems Corp. 226,895 5,629 Equinix, Inc. (a)* 12,000 976 FactSet Research Systems, Inc. (a) 19,000 1,096 Fidelity National Information Services, Inc. 75,470 1,430
8 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Fiserv, Inc. * 74,389 3,557 Global Payments, Inc. 31,938 1,415 Google, Inc., Class A * 105,296 49,884 Hewitt Associates, Inc., Class A * 40,000 1,474 Intuit, Inc. * 148,244 4,052 Iron Mountain, Inc. * 73,387 2,128 MasterCard, Inc., Class A 31,000 7,569 McAfee, Inc. * 73,929 2,421 Metavante Technologies, Inc. * 39,510 879 MICROS Systems, Inc. * 38,000 1,204 Microsoft Corp. 3,752,888 96,524 Novell, Inc. * 150,024 836 Nuance Communications, Inc. * 60,000 931 Oracle Corp. * 1,798,710 38,726 Parametric Technology Corp. * 40,000 775 Paychex, Inc. 146,878 4,835 Red Hat, Inc. (a)* 89,183 1,907 SAIC, Inc. * 60,000 1,133 Salesforce.com, Inc. * 33,321 2,126 Sybase, Inc. * 43,000 1,445 Symantec Corp. * 414,974 8,744 Synopsys, Inc. * 73,600 1,768 Total System Services, Inc. 91,500 1,792 ValueClick, Inc. * 45,500 541 VeriSign, Inc. (a)* 96,405 3,137 VMware, Inc., Class A * 17,000 609 Western Union Co. 347,490 9,605 Yahoo!, Inc. * 606,429 12,062 --------------- 363,972 TECHNOLOGY HARDWARE & EQUIPMENT 7.6% - -------------------------------------------------------------------------------- Agilent Technologies, Inc. * 172,231 6,211 Amphenol Corp., Class A 77,420 3,691 Anixter International, Inc. (a)* 10,000 680 Apple, Inc. * 399,714 63,535 Arrow Electronics, Inc. (a)* 56,900 1,833 Avnet, Inc. * 59,546 1,623 Brocade Communications Systems, Inc. * 185,000 1,249 Ciena Corp. (a)* 37,753 780 Cisco Systems, Inc. * 2,692,315 59,204 CommScope, Inc. (a)* 31,100 1,387 Corning, Inc. 708,063 14,168 Dell, Inc. * 963,499 23,673 Diebold, Inc. 25,318 936 Dolby Laboratories, Inc., Class A * 15,000 610 EchoStar Corp., Class A (a)* 19,054 609 EMC Corp. * 945,624 14,194 FLIR Systems, Inc. (a)* 50,000 2,037 Harris Corp. 62,146 2,992 Hewlett-Packard Co. 1,192,868 53,440 Ingram Micro, Inc., Class A * 66,051 1,217 International Business Machines Corp. 626,590 80,191 Itron, Inc. * 10,000 923 Jabil Circuit, Inc. 74,100 1,205 JDS Uniphase Corp. (a)* 71,305 779 Juniper Networks, Inc. * 227,994 5,935
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Lexmark International, Inc., Class A (a)* 30,859 1,082 Mettler-Toledo International, Inc. * 17,000 1,828 Molex, Inc. 41,121 1,009 Motorola, Inc. 1,007,188 8,702 National Instruments Corp. 20,000 681 NCR Corp. * 83,044 2,231 NetApp, Inc. * 172,000 4,395 Polycom, Inc. * 38,000 897 QLogic Corp. * 73,400 1,383 QUALCOMM, Inc. 733,228 40,577 SanDisk Corp. (a)* 101,858 1,436 Seagate Technology 219,837 3,291 Sun Microsystems, Inc. (a)* 355,484 3,779 Tech Data Corp. * 25,152 877 Tellabs, Inc. (a)* 201,275 1,035 Teradata Corp. * 60,544 1,418 Trimble Navigation Ltd. (a)* 54,500 1,809 Tyco Electronics Ltd. 210,248 6,968 Western Digital Corp. * 99,512 2,865 Xerox Corp. 451,130 6,153 Zebra Technologies Corp., Class A * 31,925 984 --------------- 436,502 TELECOMMUNICATION SERVICES 3.0% - -------------------------------------------------------------------------------- American Tower Corp., Class A * 183,089 7,671 AT&T, Inc. 2,721,527 83,850 CenturyTel, Inc. 67,187 2,499 Crown Castle International Corp. * 88,627 3,386 Embarq Corp. 69,800 3,195 Frontier Communications Corp. (a) 167,758 1,939 Leap Wireless International, Inc. (a)* 10,680 461 Level 3 Communications, Inc. (a)* 669,140 2,275 NII Holdings, Inc. * 65,841 3,599 Qwest Communications International, Inc. (a) 706,635 2,706 SBA Communications Corp., Class A * 40,000 1,516 Sprint Nextel Corp. 1,346,107 10,957 Telephone & Data Systems, Inc. 48,301 2,048 tw telecom, inc. (a)* 50,000 799 Verizon Communications, Inc. 1,305,537 44,440 Windstream Corp. 180,848 2,156 --------------- 173,497 TRANSPORTATION 2.1% - -------------------------------------------------------------------------------- Alexander & Baldwin, Inc. (a) 15,426 669 AMR Corp. (a)* 111,651 1,008 Burlington Northern Santa Fe Corp. 135,981 14,160 C.H. Robinson Worldwide, Inc. 78,748 3,796 Con-way, Inc. 21,608 1,093 Continental Airlines, Inc., Class B * 45,400 623 CSX Corp. 183,542 12,404 Delta Air Lines, Inc. * 75,000 565
9 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) Expeditors International of Washington, Inc. 84,098 2,986 FedEx Corp. 142,428 11,229 Hertz Global Holdings, Inc. (a)* 41,600 355 J.B. Hunt Transport Services, Inc. (a) 20,591 761 Kansas City Southern * 33,000 1,815 Kirby Corp. * 19,000 907 Landstar System, Inc. 26,030 1,317 Norfolk Southern Corp. 179,806 12,932 Northwest Airlines Corp. * 80,000 733 Ryder System, Inc. 28,064 1,851 Southwest Airlines Co. 347,688 5,420 UAL Corp. (a) 45,667 379 Union Pacific Corp. 236,982 19,537 United Parcel Service, Inc., Class B 465,625 29,372 --------------- 123,912 UTILITIES 4.1% - -------------------------------------------------------------------------------- AGL Resources, Inc. 34,400 1,189 Allegheny Energy, Inc. 75,253 3,642 Alliant Energy Corp. 53,900 1,737 Ameren Corp. 81,485 3,348 American Electric Power Co., Inc. 183,931 7,265 Aqua America, Inc. (a) 43,134 684 Atmos Energy Corp. 14,818 392 Calpine Corp. * 180,000 3,132 CenterPoint Energy, Inc. 148,411 2,340 CMS Energy Corp. 103,533 1,398 Consolidated Edison, Inc. (a) 120,006 4,764 Constellation Energy Group, Inc. 78,441 6,523 Dominion Resources, Inc. 258,458 11,419 DPL, Inc. (a) 50,061 1,271 DTE Energy Co. 75,397 3,090 Duke Energy Corp. 582,943 10,248 Dynegy, Inc., Class A * 175,199 1,179 Edison International 156,454 7,563 Energen Corp. 33,196 1,998 Energy East Corp. 59,053 1,476 Entergy Corp. 87,622 9,369 Equitable Resources, Inc. 56,400 2,947 Exelon Corp. 297,656 23,402 FirstEnergy Corp. 138,970 10,221 FPL Group, Inc. 188,008 12,132 Great Plains Energy, Inc. 39,000 985 Hawaiian Electric Industries, Inc. (a) 37,748 934 Integrys Energy Group, Inc. (a) 34,155 1,744 ITC Holdings Corp. (a) 17,000 886 MDU Resources Group, Inc. 83,917 2,678 Mirant Corp. * 97,702 2,991 National Fuel Gas Co. 27,047 1,347 NiSource, Inc. (a) 126,980 2,169 Northeast Utilities 71,514 1,799 NRG Energy, Inc. * 102,930 3,735 NSTAR 49,512 1,577 OGE Energy Corp. 29,180 955 ONEOK, Inc. 48,062 2,186 Pepco Holdings, Inc. 89,174 2,224
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) PG&E Corp. 162,137 6,247 Pinnacle West Capital Corp. 36,487 1,225 PPL Corp. 170,511 8,007 Progress Energy, Inc. (a) 119,185 5,043 Public Service Enterprise Group, Inc. 234,322 9,795 Puget Energy, Inc. 46,219 1,273 Questar Corp. 77,720 4,110 Reliant Energy, Inc. * 157,397 2,850 SCANA Corp. 54,031 1,955 Sempra Energy 121,878 6,845 Sierra Pacific Resources 100,000 1,134 Southern Co. 341,518 12,086 Southern Union Co. 49,962 1,305 TECO Energy, Inc. 92,117 1,709 The AES Corp. * 292,202 4,716 UGI Corp. 23,148 626 Westar Energy, Inc. 36,000 795 Wisconsin Energy Corp. 54,168 2,444 Xcel Energy, Inc. 189,009 3,792 --------------- 234,896 --------------- TOTAL COMMON STOCK (COST $2,888,442) 5,771,202 --------------- FOREIGN COMMON STOCK 0.2% OF NET ASSETS BERMUDA 0.2% - -------------------------------------------------------------------------------- CAPITAL GOODS 0.1% Foster Wheeler Ltd. * 64,856 3,682 CONSUMER SERVICES 0.0% Orient-Express Hotels Ltd., Class A (a) 19,000 632 DIVERSIFIED FINANCIALS 0.1% Invesco Ltd. 182,640 4,254 Lazard Ltd., Class A 12,200 498 --------------- 4,752 --------------- 9,066 --------------- TOTAL FOREIGN COMMON STOCK (COST $7,106) 9,066 ---------------
FACE/MATURITY ISSUER AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) SHORT-TERM INVESTMENTS 0.1% OF NET ASSETS REPURCHASE AGREEMENT 0.1% - -------------------------------------------------------------------------------- FIXED INCOME CLEARING CORP. Fully collateralized by Fannie Mae Discount Note with a value of $6,796 1.92%, issued 07/31/08, due 08/01/08 6,661 6,661
10 SCHWAB 1000 INDEX FUND PORTFOLIO HOLDINGS (Unaudited) continued
FACE/MATURITY ISSUER AMOUNT VALUE RATE, MATURITY DATE ($ X 1,000) ($ X 1,000) U.S. TREASURY OBLIGATIONS 0.0% - -------------------------------------------------------------------------------- U.S. Treasury Bills 1.89%, 09/18/08 325 324 1.42%, 09/18/08 250 250 --------------- 574 --------------- TOTAL SHORT-TERM INVESTMENTS (COST $7,235) 7,235 ---------------
END OF INVESTMENTS.
NUMBER OF VALUE SECURITY SHARES ($ X 1,000) COLLATERAL INVESTED FOR SECURITIES ON LOAN 6.6% OF NET ASSETS State Street Navigator Security Lending Prime Portfolio 382,374,757 382,375
END OF COLLATERAL INVESTED FOR SECURITIES ON LOAN. (All dollar amounts are x 1,000) At 07/31/08, the tax basis cost of the fund's investments was $2,905,665 and the unrealized appreciation and depreciation were $3,100,874 and ($219,036), respectively, with a net unrealized appreciation of $2,881,838. * Non-income producing security. (a) All or a portion of this security is on loan. (b) Issuer is affiliated with the fund's adviser. (c) 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, Randall W. Merk 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/ Randall W. Merk --------------------------------- Randall W. Merk Chief Executive Officer Date: September 23, 2008 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/ Randall W. Merk --------------------------------- Randall W. Merk Chief Executive Officer Date: September 23, 2008 By: /s/ George Pereira --------------------------------- George Pereira Principal Financial Officer Date: September 23, 2008 EX-99.CERT 2 f43772siexv99wcert.txt EX-99.CERT CERTIFICATIONS I, Randall W. Merk, 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 23, 2008 /s/ Randall W. Merk -------------------------------------- Randall W. Merk 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 23, 2008 /s/ George Pereira --------------------------------------- George Pereira Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----