N-Q 1 f51957sinvq.htm FORM N-Q nvq
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-6200
Schwab Investments — 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: November 1, 2008 — January 31, 2009
Item 1. Schedule of Investments.
 
 

 

 

Schwab Investments
Schwab 1000 Index® Fund
Portfolio Holdings As of January 31, 2009, (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
     2,649,012       3,584,948  
  0.1 %  
Foreign Common Stock
     7,282       4,899  
  0.1 %  
Short-Term Investments
     1,377       1,377  
  99.9 %  
Total Investments
     2,657,671       3,591,224  
  0.1 %  
Other Assets and Liabilities, Net
             3,665  
  100.0 %  
Net Assets
             3,594,889  
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Common Stock 99.7% of net assets
                
 
                
Automobiles & Components 0.3%
                
BorgWarner, Inc.
     53,698       907  
Ford Motor Co. *
     996,887       1,864  
General Motors Corp.
     262,305       790  
Gentex Corp.
     66,272       556  
Harley-Davidson, Inc.
     106,092       1,292  
Johnson Controls, Inc.
     268,674       3,361  
The Goodyear Tire & Rubber Co. *
     105,400       650  
WABCO Holdings, Inc.
     23,000       344  
 
                
 
             9,764  
 
                
Banks 2.4%
                
Associated Banc-Corp
     57,148       894  
Astoria Financial Corp.
     23,304       212  
BancorpSouth, Inc.
     30,000       567  
Bank of Hawaii Corp.
     23,032       826  
BB&T Corp.
     245,500       4,858  
BOK Financial Corp.
     10,000       373  
CapitalSource, Inc.
     77,579       282  
Capitol Federal Financial
     6,000       248  
City National Corp.
     16,532       572  
Comerica, Inc.
     70,128       1,168  
Commerce Bancshares, Inc.
     31,807       1,112  
Cullen/Frost Bankers, Inc.
     24,800       1,086  
Fifth Third Bancorp
     241,384       577  
First Citizens BancShares, Inc., Class A
     1,150       161  
First Horizon National Corp.
     75,000       714  
First Niagra Financial Group, Inc.
     50,000       653  
FirstMerit Corp.
     32,000       517  
Fulton Financial Corp.
     72,544       509  
Hudson City Bancorp, Inc.
     220,240       2,555  
Huntington Bancshares, Inc.
     165,098       476  
International Bancshares Corp.
     10,950       200  
Investors Bancorp, Inc. *
     10,100       108  
KeyCorp
     205,914       1,499  
M&T Bank Corp.
     35,543       1,383  
Marshall & Ilsley Corp.
     118,531       677  
New York Community Bancorp, Inc.
     137,882       1,827  
NewAlliance Bancshares, Inc.
     45,000       495  
People’s United Financial, Inc.
     140,593       2,300  
PNC Financial Services Group, Inc.
     189,884       6,175  
Popular, Inc.
     129,386       355  
Regions Financial Corp.
     313,806       1,086  
SunTrust Banks, Inc.
     157,693       1,933  
Synovus Financial Corp.
     131,441       521  
TCF Financial Corp.
     48,584       602  
TFS Financial Corp.
     34,000       437  
U.S. Bancorp
     757,055       11,235  
UMB Financial Corp.
     6,350       246  
Valley National Bancorp
     47,555       619  
Wells Fargo & Co.
     1,815,896       34,320  
Westamerica Bancorp
     10,000       427  
Wilmington Trust Corp.
     30,237       414  
Zions Bancorp
     50,098       747  
 
                
 
             85,966  
 
                
Capital Goods 7.8%
                
3M Co.
     299,034       16,085  
Acuity Brands, Inc.
     18,500       497  
Aecom Technology Corp. *
     34,000       861  
AGCO Corp. *
     41,700       887  
Alliant Techsystems, Inc. *
     13,438       1,086  
AMETEK, Inc.
     49,247       1,574  
Armstrong World Industries, Inc.
     4,300       71  
Bucyrus International, Inc.
     24,000       372  
Carlisle Cos., Inc.
     20,236       378  
Caterpillar, Inc.
     260,276       8,030  
CLARCOR, Inc.
     21,000       637  
Cooper Industries Ltd., Class A
     84,700       2,279  
Crane Co.
     23,584       411  
Cummins, Inc.
     92,532       2,219  
Curtiss-Wright Corp.
     18,000       581  
Danaher Corp.
     110,320       6,170  
Deere & Co.
     193,346       6,717  
Donaldson Co., Inc.
     25,900       806  
Dover Corp.
     82,937       2,345  
Eaton Corp.
     67,959       2,992  
Emerson Electric Co.
     330,988       10,823  
Fastenal Co.
     50,900       1,740  
First Solar, Inc. *
     16,000       2,285  
Flowserve Corp.
     25,341       1,351  
Fluor Corp.
     81,558       3,173  
GATX Corp.
     20,000       482  
General Cable Corp. *
     20,000       329  
General Dynamics Corp.
     168,224       9,543  
General Electric Co.
     4,531,922       54,972  
Goodrich Corp.
     56,598       2,188  

1

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Graco, Inc.
     25,194       536  
Granite Construction, Inc.
     15,000       528  
Harsco Corp.
     38,900       923  
Honeywell International, Inc.
     325,299       10,673  
Hubbell, Inc., Class B
     25,332       785  
Icahn Enterprises L.P.
     9,000       307  
IDEX Corp.
     37,306       843  
Illinois Tool Works, Inc.
     169,804       5,546  
Ingersoll-Rand Co., Ltd., Class A
     143,379       2,324  
ITT Corp.
     82,894       3,753  
Jacobs Engineering Group, Inc. *
     54,856       2,121  
Joy Global, Inc.
     45,008       938  
KBR, Inc.
     70,000       991  
Kennametal, Inc.
     35,198       565  
L-3 Communications Holdings, Inc.
     53,424       4,222  
Lennox International, Inc.
     22,000       618  
Lincoln Electric Holdings, Inc.
     18,000       741  
Lockheed Martin Corp.
     143,654       11,785  
Masco Corp.
     143,736       1,124  
McDermott International, Inc. *
     102,712       1,065  
Moog, Inc., Class A *
     15,000       449  
MSC Industrial Direct Co., Class A
     9,658       331  
Navistar International Corp. *
     22,000       668  
Northrop Grumman Corp.
     152,032       7,316  
Owens Corning, Inc. *
     43,300       578  
PACCAR, Inc.
     164,589       4,343  
Pall Corp.
     55,133       1,437  
Parker Hannifin Corp.
     73,453       2,807  
Pentair, Inc.
     46,300       1,059  
Precision Castparts Corp.
     61,301       3,981  
Quanta Services, Inc. *
     70,000       1,497  
Raytheon Co.
     178,690       9,045  
Rockwell Automation, Inc.
     67,049       1,746  
Rockwell Collins, Inc.
     76,953       2,900  
Roper Industries, Inc.
     39,091       1,608  
Seaboard Corp.
     50       50  
Spirit AeroSystems Holdings, Inc., Class A *
     22,000       299  
SPX Corp.
     27,614       1,163  
SunPower Corp., Class A *
     32,000       1,074  
Teledyne Technologies, Inc. *
     15,000       418  
Terex Corp. *
     47,582       563  
Textron, Inc.
     116,138       1,049  
The Boeing Co.
     316,189       13,378  
The Shaw Group, Inc. *
     30,669       853  
The Timken Co.
     43,594       649  
Thomas & Betts Corp. *
     23,129       495  
TransDigm Group, Inc. *
     8,000       273  
Trinity Industries, Inc.
     33,691       388  
Tyco International Ltd.
     210,748       4,430  
United Technologies Corp.
     410,863       19,717  
URS Corp. *
     37,000       1,260  
USG Corp. *
     15,006       98  
Valmont Industries, Inc.
     5,000       203  
W.W. Grainger, Inc.
     31,176       2,274  
Wabtec Corp.
     19,000       569  
Woodward Governor Co.
     11,750       242  
 
                
 
             281,482  
 
                
Commercial & Professional Supplies 0.9%
                
Avery Dennison Corp.
     42,460       1,029  
Cintas
     48,110       1,095  
Clean Harbors, Inc. *
     10,000       535  
Copart, Inc. *
     33,014       795  
Corrections Corp. of America *
     50,000       689  
Covanta Holding Corp. *
     54,848       948  
Equifax, Inc.
     57,900       1,431  
FTI Consulting, Inc. *
     18,000       738  
Iron Mountain, Inc. *
     73,387       1,502  
Manpower, Inc.
     36,791       1,047  
Monster Worldwide, Inc. *
     34,500       318  
Pitney Bowes, Inc.
     92,741       2,064  
R.R. Donnelley & Sons Co.
     99,419       970  
Republic Services, Inc.
     144,281       3,731  
Robert Half International, Inc.
     71,491       1,212  
Rollins, Inc.
     20,000       312  
Stericycle, Inc. *
     39,098       1,913  
Tetra Tech, Inc. *
     26,000       604  
The Brink’s Co.
     19,915       526  
The Dun & Bradstreet Corp.
     24,825       1,887  
Waste Connections, Inc. *
     36,000       1,045  
Waste Management, Inc.
     217,477       6,783  
Watson Wyatt Worldwide, Inc., Class A
     16,000       744  
 
                
 
             31,918  
 
                
Consumer Durables & Apparel 0.9%
                
Centex Corp.
     52,500       447  
Coach, Inc. *
     157,310       2,297  
D.R. Horton, Inc.
     111,397       664  
Eastman Kodak Co.
     100,321       454  
Fortune Brands, Inc.
     66,628       2,132  
Garmin Ltd.
     31,686       555  
Hanesbrands, Inc. *
     36,100       324  
Harman International Industries, Inc.
     28,097       452  
Hasbro, Inc.
     54,625       1,318  
KB HOME
     28,176       301  
Leggett & Platt, Inc.
     72,044       900  
Lennar Corp., Class A
     46,575       358  
M.D.C. Holdings, Inc.
     14,679       450  
Mattel, Inc.
     163,197       2,316  
Mohawk Industries, Inc. *
     24,839       798  
Newell Rubbermaid, Inc.
     116,426       941  
NIKE, Inc., Class B
     174,068       7,877  
NVR, Inc. *
     2,298       979  
Polo Ralph Lauren Corp.
     26,495       1,087  
Pulte Homes, Inc.
     94,712       961  
Snap-on, Inc.
     27,350       825  
The Black & Decker Corp.
     32,580       942  
The Stanley Works
     38,394       1,200  
Toll Brothers, Inc. *
     54,500       928  
Tupperware Brands Corp.
     23,000       473  
VF Corp.
     39,182       2,195  
Whirlpool Corp.
     34,815       1,164  
 
                
 
             33,338  

2

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Consumer Services 1.9%
                
Apollo Group, Inc., Class A *
     50,121       4,083  
Brinker International, Inc.
     44,600       489  
Burger King Holdings, Inc.
     30,000       667  
Career Education Corp. *
     31,000       676  
Carnival Corp.
     195,110       3,549  
Chipotle Mexican Grill, Inc., Class A *
     12,000       573  
Choice Hotels International, Inc.
     7,300       192  
Corinthian Colleges, Inc. *
     38,000       710  
Darden Restaurants, Inc.
     67,315       1,765  
DeVry, Inc.
     27,000       1,447  
H&R Block, Inc.
     130,798       2,711  
International Game Technology
     139,526       1,479  
International Speedway Corp., Class A
     13,969       325  
ITT Educational Services, Inc. *
     13,301       1,630  
Las Vegas Sands Corp. *
     45,663       235  
Marriott International, Inc., Class A
     134,756       2,198  
McDonald’s Corp.
     495,036       28,722  
MGM MIRAGE *
     55,987       448  
Panera Bread Co., Class A *
     15,000       705  
Penn National Gaming, Inc. *
     29,860       557  
Royal Caribbean Cruises Ltd.
     27,591       179  
Scientific Games Corp., Class A *
     19,143       241  
Service Corp. International
     118,400       539  
Starbucks Corp. *
     329,627       3,112  
Starwood Hotels & Resorts Worldwide, Inc.
     88,442       1,337  
Strayer Education, Inc.
     5,000       1,082  
Weight Watchers International, Inc.
     11,329       258  
Wendy’s/Arby’s Group, Inc., Class A
     150,000       756  
Wyndham Worldwide Corp.
     66,517       408  
Wynn Resorts Ltd. *
     22,942       690  
Yum! Brands, Inc.
     208,876       5,978  
 
                
 
             67,741  
 
                
Diversified Financials 4.7%
                
Affiliated Managers Group, Inc. *
     15,459       621  
AllianceBernstein Holding L.P.
     35,189       601  
American Express Co.
     515,577       8,626  
Ameriprise Financial, Inc.
     107,657       2,169  
Bank of America Corp.
     2,761,741       18,172  
Bank of New York Mellon Corp.
     510,496       13,140  
BlackRock, Inc.
     7,765       845  
Capital One Financial Corp.
     169,453       2,684  
CIT Group, Inc.
     88,368       247  
Citigroup, Inc.
     2,411,662       8,561  
CME Group, Inc.
     28,776       5,004  
Discover Financial Services
     201,824       1,443  
Eaton Vance Corp.
     50,384       964  
Federated Investors, Inc., Class B
     39,050       762  
Franklin Resources, Inc.
     71,086       3,442  
Greenhill & Co., Inc.
     3,900       254  
IntercontinentalExchange, Inc. *
     30,589       1,741  
Janus Capital Group, Inc.
     66,800       351  
Jefferies Group, Inc.
     50,652       585  
JPMorgan Chase & Co.
     1,615,528       41,212  
Knight Capital Group, Inc., Class A *
     20,000       361  
Legg Mason, Inc.
     53,714       863  
Leucadia National Corp. *
     75,164       1,197  
Moody’s Corp.
     91,126       1,952  
Morgan Stanley
     487,948       9,871  
MSCI, Inc., Class A *
     3,450       60  
Northern Trust Corp.
     93,076       5,354  
NYSE Euronext
     112,400       2,473  
Och-Ziff Capital Management Group, Class A
     25,000       124  
Raymond James Financial, Inc.
     33,649       623  
SEI Investments Co.
     58,748       744  
SLM Corp. *
     190,324       2,179  
State Street Corp.
     193,400       4,500  
T. Rowe Price Group, Inc.
     117,450       3,239  
TD Ameritrade Holding Corp. *
     83,631       940  
The Blackstone Group L.P.
     55,000       248  
The Charles Schwab Corp. (b)
     427,315       5,807  
The Goldman Sachs Group, Inc.
     192,532       15,543  
The Nasdaq OMX Group, Inc. *
     62,137       1,356  
Waddell & Reed Financial, Inc., Class A
     30,000       424  
 
                
 
             169,282  
 
                
Energy 13.6%
                
Alpha Natural Resources, Inc. *
     28,000       457  
Anadarko Petroleum Corp.
     211,348       7,765  
Apache Corp.
     148,150       11,111  
Arch Coal, Inc.
     58,200       884  
Atwood Oceanics, Inc. *
     20,000       333  
Baker Hughes, Inc.
     141,907       4,728  
Bill Barrett Corp. *
     12,000       265  
BJ Services Co.
     132,346       1,456  
Boardwalk Pipeline Partners L.P.
     7,800       166  
BP Prudhoe Bay Royalty Trust
     8,500       619  
Buckeye Partners L.P.
     14,000       561  
Cabot Oil & Gas Corp.
     44,774       1,231  
Cameron International Corp. *
     100,200       2,321  
Chesapeake Energy Corp.
     221,597       3,503  
Chevron Corp.
     895,677       63,163  
Cimarex Energy Co.
     29,215       726  
CNX Gas Corp. *
     8,000       207  
Comstock Resources, Inc. *
     17,000       648  
Concho Resources, Inc. *
     10,800       272  
ConocoPhillips
     647,366       30,769  
CONSOL Energy, Inc.
     82,598       2,252  
Continental Resources, Inc. *
     5,000       103  
Denbury Resources, Inc. *
     105,884       1,296  
Devon Energy Corp.
     196,582       12,109  
Diamond Offshore Drilling, Inc.
     28,929       1,816  
Dresser-Rand Group, Inc. *
     30,000       584  
El Paso Corp.
     314,781       2,575  
El Paso Pipeline Partners L.P.
     9,150       155  
Enbridge Energy Partners, L.P.
     23,100       732  
Encore Acquisition Co. *
     18,000       489  

3

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Energy Transfer Equity L.P.
     4,350       80  
Energy Transfer Partners L.P.
     40,400       1,411  
ENSCO International, Inc.
     67,928       1,859  
Enterprise GP Holdings L.P.
     5,300       107  
Enterprise Products Partners L.P.
     130,258       2,860  
EOG Resources, Inc.
     111,752       7,573  
EXCO Resources, Inc. *
     28,000       284  
Exterran Holdings, Inc. *
     25,599       567  
Exxon Mobil Corp.
     2,225,922       170,239  
FMC Technologies, Inc. *
     53,784       1,591  
Forest Oil Corp. *
     37,415       561  
Frontier Oil Corp.
     45,358       648  
Halliburton Co.
     390,388       6,734  
Helmerich & Payne, Inc.
     46,192       1,038  
Hess Corp.
     125,223       6,964  
Holly Corp.
     15,000       351  
IHS, Inc., Class A *
     12,000       526  
Kinder Morgan Energy Partners L.P.
     68,700       3,404  
Kinder Morgan Management L.L.C. *
     28,379       1,234  
Linn Energy L.L.C.
     28,000       456  
Magellan Midstream Partners L.P.
     30,000       1,040  
Marathon Oil Corp.
     313,446       8,535  
Massey Energy Co.
     37,501       569  
Murphy Oil Corp.
     82,544       3,647  
Nabors Industries Ltd. *
     129,088       1,414  
National-Oilwell Varco, Inc. *
     188,726       4,990  
Natural Resource Partners L.P.
     6,450       151  
Newfield Exploration Co. *
     53,066       1,018  
Noble Corp.
     120,700       3,277  
Noble Energy
     78,961       3,864  
NuStar Energy L.P.
     16,895       831  
Occidental Petroleum Corp.
     349,416       19,061  
Oceaneering International, Inc. *
     19,000       655  
ONEOK Partners, L.P.
     21,300       1,086  
Overseas Shipholding Group, Inc.
     8,000       286  
Patterson-UTI Energy, Inc.
     70,321       672  
Peabody Energy Corp.
     116,021       2,901  
Petrohawk Energy Corp. *
     93,000       1,833  
Pioneer Natural Resources Co.
     53,111       778  
Plains All American Pipeline L.P.
     43,032       1,627  
Plains Exploration & Production Co. *
     44,757       945  
Pride International, Inc. *
     72,494       1,169  
Quicksilver Resources, Inc. *
     35,890       249  
Range Resources Corp.
     65,628       2,352  
Rowan Cos., Inc.
     44,283       561  
SandRidge Energy, Inc. *
     43,000       286  
Schlumberger Ltd.
     516,106       21,062  
SEACOR Holdings, Inc. *
     7,000       455  
Smith International, Inc.
     91,759       2,083  
Southern Union Co.
     49,962       644  
Southwestern Energy Co. *
     146,688       4,643  
Spectra Energy Corp.
     276,171       4,007  
St. Mary Land & Exploration Co.
     20,513       397  
Sunoco Logistics Partners L.P.
     3,500       189  
Sunoco, Inc.
     54,500       2,524  
Superior Energy Services, Inc. *
     35,000       545  
Teekay Corp.
     18,968       332  
TEPPCO Partners L.P.
     32,277       810  
Tesoro Corp.
     51,312       884  
The Williams Cos., Inc.
     259,221       3,668  
Tidewater, Inc.
     24,568       1,022  
Ultra Petroleum Corp. *
     63,612       2,279  
Unit Corp. *
     17,200       429  
Valero Energy Corp.
     238,670       5,757  
W&T Offshore, Inc.
     10,000       126  
Walter Industries, Inc.
     17,000       314  
Weatherford International Ltd. *
     302,496       3,337  
Whiting Petroleum Corp. *
     16,000       464  
XTO Energy, Inc.
     233,197       8,649  
 
                
 
             490,200  
 
                
Food & Staples Retailing 2.8%
                
BJ’s Wholesale Club, Inc. *
     29,800       855  
Costco Wholesale Corp.
     185,699       8,362  
CVS Caremark Corp.
     619,661       16,657  
Ruddick Corp.
     8,450       203  
Safeway, Inc.
     197,397       4,230  
SUPERVALU, Inc.
     76,356       1,339  
Sysco Corp.
     270,590       6,031  
The Kroger Co.
     297,413       6,692  
Wal-Mart Stores, Inc.
     977,077       46,040  
Walgreen Co.
     421,769       11,561  
Whole Foods Market, Inc.
     56,216       576  
 
                
 
             102,546  
 
                
Food, Beverage & Tobacco 5.8%
                
Altria Group, Inc.
     889,015       14,704  
Archer-Daniels-Midland Co.
     287,085       7,860  
Brown-Forman Corp., Class B
     43,540       1,977  
Bunge Ltd.
     54,792       2,353  
Campbell Soup Co.
     99,058       3,008  
Central European Distribution Corp. *
     10,000       121  
Coca-Cola Enterprises, Inc.
     129,072       1,449  
ConAgra Foods, Inc.
     202,397       3,461  
Constellation Brands, Inc., Class A *
     88,132       1,280  
Corn Products International, Inc.
     32,500       752  
Dean Foods Co. *
     67,533       1,306  
Del Monte Foods Co.
     91,938       612  
Dr. Pepper Snapple Group, Inc. *
     90,000       1,480  
Flowers Foods, Inc.
     30,000       645  
Fresh Del Monte Produce, Inc. *
     12,000       289  
General Mills, Inc.
     153,150       9,059  
H.J. Heinz Co.
     139,798       5,103  
Hansen Natural Corp. *
     33,000       1,106  
Hormel Foods Corp.
     27,247       813  
Kellogg Co.
     116,181       5,076  
Kraft Foods, Inc., Class A
     643,464       18,049  
Lorillard, Inc.
     60,000       3,568  
McCormick & Co., Inc.
     57,554       1,844  
Molson Coors Brewing Co., Class B
     58,672       2,363  
PepsiAmericas, Inc.
     25,000       403  
PepsiCo, Inc.
     678,087       34,060  

4

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Philip Morris International, Inc.
     874,415       32,485  
Ralcorp Holdings, Inc. *
     25,000       1,481  
Reynolds American, Inc.
     78,084       2,981  
Sara Lee Corp.
     290,172       2,910  
Smithfield Foods, Inc. *
     46,235       549  
The Coca-Cola Co.
     872,204       37,261  
The Hershey Co.
     66,424       2,476  
The J.M. Smucker Co.
     51,201       2,312  
The Pepsi Bottling Group, Inc.
     60,932       1,175  
Tootsie Roll Industries, Inc.
     5,600       134  
Tyson Foods, Inc., Class A
     116,959       1,035  
 
                
 
             207,540  
 
                
Health Care Equipment & Services 5.0%
                
Advanced Medical Optics, Inc. *
     11,250       247  
Aetna, Inc.
     208,177       6,454  
Allscripts-Misys Healthcare Solutions, Inc.
     12,900       109  
AMERIGROUP Corp. *
     22,000       615  
AmerisourceBergen Corp.
     72,310       2,626  
Baxter International, Inc.
     267,595       15,694  
Beckman Coulter, Inc.
     27,428       1,364  
Becton, Dickinson & Co.
     103,665       7,533  
Boston Scientific Corp. *
     636,507       5,646  
C.R. Bard, Inc.
     40,600       3,474  
Cardinal Health, Inc.
     147,610       5,558  
Cerner Corp. *
     30,326       1,023  
CIGNA Corp.
     133,054       2,310  
Community Health Systems, Inc. *
     40,206       749  
Coventry Health Care, Inc. *
     68,962       1,043  
Covidien Ltd.
     214,248       8,214  
DaVita, Inc. *
     43,625       2,050  
DENTSPLY International, Inc.
     70,500       1,897  
Edwards Lifesciences Corp. *
     26,796       1,541  
Express Scripts, Inc. *
     108,912       5,855  
Gen-Probe, Inc. *
     22,670       1,021  
Haemonetics Corp. *
     12,000       710  
Health Net, Inc. *
     51,000       746  
Henry Schein, Inc. *
     39,919       1,494  
Hlth Corp. *
     47,979       546  
Hologic, Inc. *
     105,370       1,242  
Hospira, Inc. *
     72,240       1,799  
Humana, Inc. *
     77,391       2,935  
IDEXX Laboratories, Inc. *
     26,298       863  
Immucor, Inc. *
     28,000       776  
IMS Health, Inc.
     90,189       1,310  
Intuitive Surgical, Inc. *
     17,215       1,777  
Inverness Medical Innovations, Inc. *
     28,000       685  
Kinetic Concepts, Inc. *
     25,492       614  
Laboratory Corp. of America Holdings *
     46,622       2,760  
Lincare Holdings, Inc. *
     33,050       795  
Magellan Health Services, Inc. *
     16,000       580  
Masimo Corp. *
     16,000       444  
McKesson Corp.
     124,647       5,509  
Medco Health Solutions, Inc. *
     214,886       9,655  
MEDNAX, Inc. *
     20,354       683  
Medtronic, Inc.
     482,518       16,160  
Omnicare, Inc.
     43,433       1,214  
Owens & Minor, Inc.
     18,000       716  
Patterson Cos., Inc. *
     53,200       978  
Psychiatric Solutions, Inc. *
     14,000       364  
Quest Diagnostics, Inc.
     65,847       3,250  
ResMed, Inc. *
     26,708       1,066  
St. Jude Medical, Inc. *
     152,705       5,554  
STERIS Corp.
     20,000       532  
Stryker Corp.
     110,254       4,657  
Teleflex, Inc.
     20,146       1,071  
Thoratec Corp. *
     22,000       637  
UnitedHealth Group, Inc.
     521,212       14,766  
Universal Health Services, Inc., Class B
     22,337       845  
Varian Medical Systems, Inc. *
     58,271       2,164  
VCA Antech, Inc. *
     37,554       707  
WellPoint, Inc. *
     218,423       9,054  
Zimmer Holdings, Inc. *
     103,012       3,750  
 
                
 
             178,431  
 
                
Household & Personal Products 3.0%
                
Alberto-Culver Co.
     37,750       923  
Avon Products, Inc.
     193,036       3,948  
Church & Dwight Co., Inc.
     28,997       1,544  
Colgate-Palmolive Co.
     218,027       14,180  
Energizer Holdings, Inc. *
     25,100       1,196  
Herbalife Ltd.
     21,509       441  
Kimberly-Clark Corp.
     179,134       9,220  
NBTY, Inc. *
     26,200       494  
The Clorox Co.
     63,525       3,186  
The Estee Lauder Cos., Inc., Class A
     50,854       1,335  
The Procter & Gamble Co.
     1,315,319       71,685  
 
                
 
             108,152  
 
                
Insurance 3.4%
                
Aflac, Inc.
     213,913       4,965  
Alleghany Corp. *
     2,056       560  
Allied World Assurance Co. Holdings Ltd.
     15,000       565  
American Financial Group, Inc.
     40,405       686  
American International Group, Inc.
     1,159,536       1,484  
American National Insurance Co.
     6,937       387  
Aon Corp.
     123,563       4,578  
Arch Capital Group Ltd. *
     12,000       722  
Arthur J. Gallagher & Co.
     35,720       842  
Aspen Insurance Holdings Ltd.
     14,000       309  
Assurant, Inc.
     44,392       1,172  
Axis Capital Holdings Ltd.
     48,462       1,176  
Berkshire Hathaway, Inc., Class A *
     269       24,076  
Brown & Brown, Inc.
     53,376       1,021  
Cincinnati Financial Corp.
     74,417       1,632  
CNA Financial Corp.
     14,050       163  
Endurance Specialty Holding Ltd.
     14,453       394  
Erie Indemnity Co., Class A
     20,285       719  
Everest Re Group Ltd.
     28,420       1,790  
Fidelity National Financial, Inc., Class A
     96,369       1,409  

5

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
First American Corp.
     42,560       930  
Genworth Financial, Inc., Class A
     179,539       417  
Hanover Insurance Group, Inc.
     26,400       1,067  
HCC Insurance Holdings, Inc.
     52,357       1,226  
IPC Holdings Ltd.
     7,650       196  
Lincoln National Corp.
     118,059       1,786  
Loews Corp.
     140,958       3,439  
Markel Corp. *
     4,931       1,332  
Marsh & McLennan Cos., Inc.
     227,720       4,402  
MBIA, Inc. *
     58,234       225  
Mercury General Corp.
     14,435       559  
MetLife, Inc.
     334,444       9,609  
Montpelier Re Holdings Ltd.
     16,000       226  
Odyssey Re Holdings Corp.
     12,000       565  
Old Republic International Corp.
     105,309       1,087  
PartnerRe Ltd.
     25,169       1,649  
Principal Financial Group, Inc.
     116,909       1,940  
ProAssurance Corp. *
     14,000       662  
Prudential Financial, Inc.
     198,797       5,119  
Reinsurance Group of America, Inc.
     17,310       617  
RenaissanceRe Holdings Ltd.
     26,407       1,180  
StanCorp Financial Group, Inc.
     24,842       641  
The Allstate Corp.
     235,698       5,108  
The Chubb Corp.
     153,492       6,536  
The Hartford Financial Services Group, Inc.
     142,795       1,879  
The Progressive Corp. *
     305,292       3,709  
The Travelers Cos., Inc.
     252,197       9,745  
Torchmark Corp.
     43,377       1,301  
Transatlantic Holdings, Inc.
     17,545       564  
Unum Group
     158,014       2,237  
W. R. Berkley Corp.
     70,725       1,873  
Wesco Financial Corp.
     619       187  
White Mountains Insurance Group Ltd.
     3,213       776  
XL Capital Ltd., Class A
     83,967       243  
 
                
 
             121,682  
 
                
Materials 3.3%
                
Air Products & Chemicals, Inc.
     90,378       4,546  
Airgas, Inc.
     36,451       1,287  
AK Steel Holding Corp.
     51,000       412  
Albemarle Corp.
     36,900       821  
Alcoa, Inc.
     366,520       2,855  
Allegheny Technologies, Inc.
     43,752       966  
AptarGroup, Inc.
     34,000       1,048  
Ball Corp.
     42,788       1,640  
Bemis Co., Inc.
     48,449       1,094  
Cabot Corp.
     19,816       265  
Celanese Corp., Series A
     58,243       620  
CF Industries Holdings, Inc.
     19,000       893  
Cliffs Natural Resources, Inc.
     38,000       880  
Commercial Metals Co.
     51,294       590  
Compass Minerals International, Inc.
     11,000       662  
Crown Holdings, Inc. *
     75,676       1,419  
Cytec Industries, Inc.
     19,500       399  
E.I. du Pont de Nemours & Co.
     401,507       9,219  
Eastman Chemical Co.
     33,091       859  
Ecolab, Inc.
     78,968       2,682  
FMC Corp.
     35,552       1,586  
Freeport-McMoRan Copper & Gold, Inc.
     173,765       4,368  
Greif, Inc., Class A
     11,000       333  
International Flavors & Fragrances, Inc.
     36,208       1,036  
International Paper Co.
     192,607       1,757  
Intrepid Potash, Inc. *
     6,450       131  
Martin Marietta Materials, Inc.
     16,849       1,357  
MeadWestvaco Corp.
     84,583       985  
Monsanto Co.
     237,034       18,029  
Nalco Holding Co.
     41,943       411  
Newmont Mining Corp.
     191,508       7,618  
Nucor Corp.
     146,276       5,967  
Olin Corp.
     20,000       281  
Owens-Illinois, Inc. *
     71,577       1,360  
Packaging Corp. of America
     38,030       540  
Pactiv Corp. *
     61,660       1,333  
PPG Industries, Inc.
     74,206       2,789  
Praxair, Inc.
     133,028       8,282  
Reliance Steel & Aluminum Co.
     27,322       605  
Rohm & Haas Co.
     56,701       3,129  
Royal Gold, Inc.
     11,000       529  
RPM International, Inc.
     30,000       369  
Schnitzer Steel Industries, Inc., Class A
     7,000       275  
Sealed Air Corp.
     73,902       1,001  
Sigma-Aldrich Corp.
     56,308       2,032  
Silgan Holdings, Inc.
     5,500       252  
Sonoco Products Co.
     48,170       1,105  
Southern Copper Corp.
     74,946       1,045  
Steel Dynamics, Inc.
     78,000       828  
Terra Industries, Inc.
     40,000       819  
Terra Nitrogen Co., L.P.
     7,000       857  
The Dow Chemical Co.
     411,156       4,765  
The Lubrizol Corp.
     32,160       1,097  
The Mosaic Co.
     70,095       2,500  
The Scotts Miracle-Gro Co., Class A
     14,668       473  
The Valspar Corp.
     44,946       780  
Titanium Metals Corp.
     18,585       131  
United States Steel Corp.
     53,768       1,615  
Valhi, Inc.
     1,500       22  
Vulcan Materials Co.
     44,425       2,197  
Weyerhaeuser Co.
     94,815       2,592  
 
                
 
             120,338  
 
                
Media 2.6%
                
Cablevision Systems Corp., Class A
     106,010       1,699  
CBS Corp., Class B
     310,205       1,774  
Clear Channel Outdoor Holdings, Inc., Class A *
     9,200       48  
Comcast Corp., Class A
     1,242,553       18,203  
Discovery Communications, Inc., Series A *
     56,198       815  
DISH Network Corp., Class A *
     95,272       1,223  

6

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
DreamWorks Animation SKG, Inc., Class A *
     27,000       593  
Gannett Co., Inc.
     83,954       484  
Interactive Data Corp.
     7,900       180  
John Wiley & Sons, Inc., Class A
     20,480       726  
Lamar Advertising Co., Class A *
     22,870       206  
Liberty Global, Inc., Series A *
     135,366       1,972  
Liberty Media Corp - Entertainment, Series A *
     220,244       4,041  
Marvel Entertainment, Inc. *
     17,000       468  
Morningstar, Inc. *
     3,550       123  
News Corp., Class A
     1,020,728       6,522  
Omnicom Group, Inc.
     151,738       3,929  
Regal Entertainment Group, Class A
     35,000       351  
Scripps Networks Interactive, Class A
     32,000       687  
The DIRECTV Group, Inc. *
     247,345       5,417  
The Interpublic Group of Cos., Inc. *
     192,364       641  
The McGraw-Hill Cos., Inc.
     146,236       3,216  
The New York Times Co., Class A
     52,025       259  
The Walt Disney Co.
     822,302       17,005  
The Washington Post Co., Class B
     2,526       987  
Time Warner Cable, Inc., Class A *
     66,900       1,246  
Time Warner, Inc.
     1,591,601       14,850  
Viacom, Inc., Class B *
     280,946       4,144  
Virgin Media, Inc.
     108,000       490  
 
                
 
             92,299  
 
                
Pharmaceuticals, Biotechnology & Life Sciences 10.7%
                
Abbott Laboratories
     671,646       37,236  
Abraxis BioScience *
     1,450       101  
Alexion Pharmaceuticals, Inc. *
     34,500       1,272  
Allergan, Inc.
     137,062       5,225  
Amgen, Inc. *
     478,560       26,249  
Amylin Pharmaceuticals, Inc. *
     33,747       390  
Bio-Rad Laboratories, Inc., Class A *
     5,000       318  
Biogen Idec, Inc. *
     132,555       6,449  
BioMarin Pharmaceuticals, Inc. *
     35,000       674  
Bristol-Myers Squibb Co.
     865,539       18,531  
Celgene Corp. *
     192,546       10,195  
Cephalon, Inc. *
     27,000       2,084  
Charles River Laboratories International, Inc. *
     31,015       757  
Covance, Inc. *
     24,300       938  
Eli Lilly & Co.
     429,571       15,817  
Endo Pharmaceuticals Holdings, Inc. *
     59,028       1,326  
Forest Laboratories, Inc. *
     147,446       3,692  
Genentech, Inc. *
     203,119       16,501  
Genzyme Corp. *
     120,131       8,279  
Gilead Sciences, Inc. *
     406,012       20,613  
Illumina, Inc. *
     48,000       1,313  
Isis Pharmaceuticals, Inc. *
     44,000       622  
Johnson & Johnson
     1,225,517       70,700  
King Pharmaceuticals, Inc. *
     104,766       916  
Life Technologies Corp. *
     75,806       1,930  
Merck & Co., Inc.
     915,685       26,143  
Millipore Corp. *
     22,874       1,262  
Mylan, Inc. *
     113,500       1,286  
Myriad Genetics, Inc. *
     22,000       1,640  
Onyx Pharmaceuticals, Inc. *
     20,000       609  
OSI Pharmaceuticals, Inc. *
     26,000       926  
PerkinElmer, Inc.
     56,500       713  
Perrigo Co.
     28,000       822  
Pfizer, Inc.
     2,941,310       42,884  
Pharmaceutical Product Development, Inc.
     47,746       1,141  
Regeneron Pharmaceuticals, Inc. *
     30,000       524  
Schering-Plough Corp.
     713,716       12,533  
Sepracor, Inc. *
     23,069       351  
Sequenom, Inc. *
     25,000       554  
Techne Corp.
     17,563       1,053  
Thermo Fisher Scientific, Inc. *
     186,798       6,712  
United Therapeutics Corp. *
     10,000       679  
Valeant Pharmaceuticals International *
     38,000       825  
Vertex Pharmaceuticals, Inc. *
     66,812       2,208  
Warner Chilcott Ltd., Class A *
     111,500       1,533  
Waters Corp. *
     47,000       1,700  
Watson Pharmaceuticals, Inc. *
     47,500       1,296  
Wyeth
     574,483       24,685  
 
                
 
             384,207  
 
                
Real Estate 1.4%
                
Alexandria Real Estate Equities, Inc.
     13,000       771  
AMB Property Corp.
     45,825       739  
Annaly Capital Management, Inc.
     229,000       3,467  
Apartment Investment & Management Co., Class A
     63,218       562  
AvalonBay Communities, Inc.
     34,751       1,800  
Boston Properties, Inc.
     55,105       2,386  
BRE Properties, Inc.
     23,424       595  
Brookfield Properties Corp.
     93,750       505  
Camden Property Trust
     26,264       692  
CB Richard Ellis Group, Inc., Class A *
     76,737       276  
Digital Realty Trust, Inc.
     28,000       893  
Douglas Emmett, Inc.
     37,000       344  
Duke Realty Corp.
     63,437       584  
Equity Residential
     122,072       2,921  
Essex Property Trust, Inc.
     10,517       695  
Federal Realty Investment Trust
     24,196       1,225  
HCP, Inc.
     103,280       2,411  
Health Care REIT, Inc.
     43,021       1,627  
Highwoods Properties, Inc.
     26,000       587  
Hospitality Properties Trust
     33,481       449  
Host Hotels & Resorts, Inc.
     241,534       1,299  
Kimco Realty Corp.
     104,831       1,508  
Liberty Property Trust
     40,104       802  
Mack-Cali Realty Corp.
     28,347       576  
Nationwide Health Properties, Inc.
     40,000       1,021  

7

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Plum Creek Timber Co., Inc.
     82,198       2,529  
ProLogis
     118,761       1,189  
Public Storage
     56,859       3,518  
Rayonier, Inc.
     34,923       1,028  
Realty Income Corp.
     46,000       886  
Regency Centers Corp.
     32,082       1,133  
Senior Housing Properties Trust
     33,000       534  
Simon Property Group, Inc.
     100,678       4,327  
SL Green Realty Corp.
     21,401       336  
Taubman Centers, Inc.
     24,000       476  
The Macerich Co.
     31,678       467  
The St. Joe Co. *
     34,800       837  
UDR, Inc.
     62,789       737  
Ventas, Inc.
     55,419       1,545  
Vornado Realty Trust
     60,451       3,072  
Weingarten Realty Investors
     35,002       567  
 
                
 
             51,916  
 
                
Retailing 3.0%
                
Aaron Rents, Inc.
     25,000       546  
Abercrombie & Fitch Co., Class A
     34,819       621  
Advance Auto Parts, Inc.
     44,702       1,463  
Aeropostale, Inc. *
     26,000       549  
Amazon.com, Inc. *
     139,741       8,220  
American Eagle Outfitters, Inc.
     91,085       821  
AutoNation, Inc. *
     34,466       320  
AutoZone, Inc. *
     17,033       2,263  
Barnes & Noble, Inc.
     23,118       380  
Bed Bath & Beyond, Inc. *
     115,120       2,674  
Best Buy Co., Inc.
     160,176       4,488  
Big Lots, Inc. *
     42,200       568  
CarMax, Inc. *
     91,100       753  
Dick’s Sporting Goods, Inc. *
     28,000       308  
Dollar Tree, Inc. *
     42,608       1,820  
Expedia, Inc. *
     104,109       930  
Family Dollar Stores, Inc.
     65,200       1,811  
Foot Locker, Inc.
     70,109       516  
GameStop Corp., Class A *
     70,300       1,742  
Genuine Parts Co.
     74,730       2,393  
Guess?, Inc.
     17,000       273  
J.C. Penney Co., Inc.
     100,422       1,682  
Kohl’s Corp. *
     140,165       5,145  
Liberty Media Corp. – Interactive Class A *
     226,108       710  
Limited Brands, Inc.
     119,023       943  
LKQ Corp. *
     40,000       462  
Lowe’s Cos., Inc.
     655,246       11,971  
Macy’s, Inc.
     191,876       1,717  
Netflix, Inc. *
     17,000       614  
Nordstrom, Inc.
     81,300       1,032  
O’Reilly Automotive, Inc. *
     59,566       1,732  
PetSmart, Inc.
     57,695       1,083  
Priceline.com, Inc. *
     15,000       1,006  
RadioShack Corp.
     63,140       724  
Ross Stores, Inc.
     57,756       1,699  
Sears Holdings Corp. *
     25,394       1,039  
Staples, Inc.
     317,670       5,064  
Target Corp.
     337,142       10,519  
The Gap, Inc.
     207,275       2,338  
The Home Depot, Inc.
     742,065       15,977  
The Sherwin-Williams Co.
     46,190       2,206  
The TJX Cos., Inc.
     194,365       3,775  
Tiffany & Co.
     60,073       1,246  
Urban Outfitters, Inc. *
     33,496       522  
 
                
 
             106,665  
 
                
Semiconductors & Semiconductor Equipment 2.1%
                
Advanced Micro Devices, Inc. *
     196,331       430  
Altera Corp.
     140,919       2,167  
Analog Devices, Inc.
     141,674       2,831  
Applied Materials, Inc.
     619,589       5,805  
Atmel Corp. *
     185,000       618  
Broadcom Corp., Class A *
     183,825       2,914  
Cree, Inc. *
     30,000       598  
Intel Corp.
     2,417,630       31,187  
Intersil Corp., Class A
     60,867       567  
KLA-Tencor Corp.
     77,538       1,554  
Lam Research Corp. *
     56,300       1,138  
Linear Technology Corp.
     97,366       2,280  
LSI Corp. *
     287,898       915  
Marvell Technology Group Ltd. *
     184,362       1,344  
Maxim Integrated Products, Inc.
     100,000       1,323  
MEMC Electronic Materials, Inc. *
     99,077       1,347  
Microchip Technology, Inc.
     82,266       1,561  
Micron Technology, Inc. *
     274,000       1,019  
National Semiconductor Corp.
     91,458       927  
Novellus Systems, Inc. *
     50,295       694  
NVIDIA Corp. *
     247,199       1,965  
ON Semiconductor Corp. *
     105,000       438  
Rambus, Inc. *
     20,964       190  
Silicon Laboratories, Inc. *
     12,236       282  
Texas Instruments, Inc.
     559,375       8,363  
Varian Semiconductor Equipment Associates, Inc. *
     35,200       670  
Xilinx, Inc.
     141,905       2,391  
 
                
 
             75,518  
 
                
Software & Services 6.6%
                
Accenture Ltd., Class A
     338,442       10,681  
Activision Blizzard, Inc. *
     231,338       2,026  
Adobe Systems, Inc. *
     245,513       4,741  
Affiliated Computer Services, Inc., Class A *
     45,867       2,103  
Akamai Technologies, Inc. *
     57,909       781  
Alliance Data Systems Corp. *
     31,271       1,301  
ANSYS, Inc. *
     28,000       696  
Autodesk, Inc. *
     102,372       1,695  
Automatic Data Processing, Inc.
     219,151       7,962  
BMC Software, Inc. *
     87,712       2,222  
Broadridge Financial Solutions, Inc.
     50,000       674  
CA, Inc.
     178,181       3,205  
CACI International, Inc., Class A *
     13,000       587  
Cadence Design Systems, Inc. *
     116,687       441  
Citrix Systems, Inc. *
     83,700       1,761  
Cognizant Technology Solutions Corp., Class A *
     118,766       2,224  
Computer Sciences Corp. *
     67,631       2,492  

8

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Compuware Corp. *
     120,464       783  
Concur Technologies, Inc *
     9,150       226  
DST Systems, Inc. *
     18,980       603  
eBay, Inc. *
     483,920       5,817  
Electronic Arts, Inc. *
     143,781       2,220  
Equinix, Inc. *
     12,000       640  
FactSet Research Systems, Inc.
     19,000       756  
Fidelity National Information Services, Inc.
     75,470       1,201  
Fiserv, Inc. *
     74,389       2,362  
Gartner, Inc. *
     30,000       425  
Global Payments, Inc.
     31,938       1,109  
Google, Inc., Class A *
     103,696       35,104  
Hewitt Associates, Inc., Class A *
     40,000       1,135  
IAC/InterActiveCorp. *
     20,730       305  
Intuit, Inc. *
     148,244       3,358  
Jack Henry & Associates, Inc.
     34,000       605  
Lender Processing Services, Inc.
     25,000       648  
Macrovision Solutions Corp. *
     18,000       236  
ManTech International Corp., Class A *
     10,000       536  
MasterCard, Inc., Class A
     31,000       4,209  
McAfee, Inc. *
     73,929       2,254  
Metavante Technologies, Inc. *
     39,510       573  
MICROS Systems, Inc. *
     38,000       547  
Microsoft Corp., Class A
     3,367,588       57,586  
NeuStar, Inc. *
     30,000       409  
Novell, Inc. *
     80,024       296  
Nuance Communications, Inc. *
     60,000       592  
Oracle Corp. *
     1,693,710       28,505  
Parametric Technology Corp. *
     40,000       360  
Paychex, Inc.
     146,878       3,568  
Perot Systems Corp., Class A *
     45,000       585  
Red Hat, Inc. *
     89,183       1,307  
SAIC, Inc. *
     90,000       1,777  
Salesforce.com, Inc. *
     33,321       887  
Solera Holdings, Inc. *
     20,000       482  
Sybase, Inc. *
     37,000       1,010  
Symantec Corp. *
     395,374       6,061  
Synopsys, Inc. *
     68,600       1,269  
Total System Services, Inc.
     91,500       1,158  
VeriSign, Inc. *
     76,905       1,485  
Visa, Inc., Class A
     130,000       6,415  
VMware, Inc., Class A *
     17,000       352  
Western Union Co.
     326,290       4,457  
Yahoo!, Inc. *
     606,429       7,113  
 
                
 
             236,918  
 
                
Technology Hardware & Equipment 7.2%
                
Agilent Technologies, Inc. *
     152,231       2,752  
Amphenol Corp., Class A
     77,420       2,025  
Anixter International, Inc. *
     10,000       270  
Apple, Inc. *
     386,714       34,855  
Arrow Electronics, Inc. *
     55,400       1,057  
Avnet, Inc. *
     59,546       1,180  
AVX Corp.
     10,650       97  
Brocade Communications Systems, Inc. *
     168,000       640  
Cisco Systems, Inc. *
     2,534,315       37,939  
CommScope, Inc. *
     31,100       449  
Corning, Inc.
     704,663       7,124  
Dell, Inc. *
     807,499       7,671  
Diebold, Inc.
     25,318       627  
Dolby Laboratories, Inc., Class A *
     15,000       383  
EchoStar Corp., Class A *
     17,054       257  
EMC Corp. *
     912,124       10,070  
F5 Networks, Inc. *
     32,000       709  
FLIR Systems, Inc. *
     50,000       1,249  
Harris Corp.
     62,146       2,690  
Hewlett-Packard Co.
     1,085,968       37,737  
Ingram Micro, Inc., Class A *
     66,051       810  
International Business Machines Corp.
     594,190       54,458  
Itron, Inc. *
     10,000       653  
Jabil Circuit, Inc.
     74,100       431  
Juniper Networks, Inc. *
     227,994       3,228  
Lexmark International, Inc., Class A *
     30,859       731  
Mettler-Toledo International, Inc. *
     15,000       999  
Molex, Inc.
     41,121       550  
Motorola, Inc.
     962,188       4,263  
National Instruments Corp.
     20,000       429  
NCR Corp. *
     78,044       979  
NetApp, Inc. *
     149,000       2,210  
Polycom, Inc. *
     38,000       534  
QLogic Corp. *
     43,400       491  
QUALCOMM, Inc.
     714,328       24,680  
SanDisk Corp. *
     101,858       1,164  
Seagate Technology
     216,837       822  
Sun Microsystems, Inc. *
     306,984       1,277  
Tellabs, Inc. *
     179,675       742  
Teradata Corp. *
     60,544       795  
Trimble Navigation Ltd. *
     54,500       808  
Tyco Electronics Ltd.
     210,248       2,977  
Western Digital Corp. *
     99,512       1,461  
Xerox Corp.
     386,130       2,564  
Zebra Technologies Corp., Class A *
     27,525       463  
 
                
 
             258,300  
 
                
Telecommunication Services 3.4%
                
American Tower Corp., Class A *
     175,089       5,312  
AT&T, Inc.
     2,544,527       62,646  
CenturyTel, Inc.
     54,087       1,468  
Clearwire Corp., Class A *
     15,250       61  
Crown Castle International Corp. *
     88,627       1,730  
Embarq Corp.
     66,800       2,386  
Frontier Communications Corp.
     149,758       1,215  
Leap Wireless International, Inc. *
     10,680       269  
Level 3 Communications, Inc. *
     669,140       669  
MetroPCS Communications, Inc. *
     48,000       652  
NII Holdings, Inc. *
     65,841       1,277  
Qwest Communications International, Inc.
     556,635       1,792  
SBA Communications Corp., Class A *
     40,000       796  
Sprint Nextel Corp. *
     1,286,907       3,127  
Telephone & Data Systems, Inc.
     48,301       1,474  

9

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
tw telecom, Inc. *
     50,000       383  
U.S. Cellular Corp. *
     3,600       151  
Verizon Communications, Inc.
     1,230,537       36,756  
Windstream Corp.
     180,848       1,570  
 
                
 
             123,734  
 
                
Transportation 2.0%
                
AMR Corp. *
     111,651       663  
Burlington Northern Santa Fe Corp.
     121,081       8,022  
C.H. Robinson Worldwide, Inc.
     75,948       3,492  
Con-way, Inc.
     21,608       476  
Continental Airlines, Inc., Class B *
     45,400       612  
CSX Corp.
     183,542       5,315  
Delta Air Lines, Inc. *
     260,000       1,794  
Expeditors International of Washington, Inc.
     84,098       2,339  
FedEx Corp.
     142,428       7,255  
Heartland Express, Inc.
     12,050       162  
Hertz Global Holdings, Inc. *
     41,600       210  
J.B. Hunt Transport Services, Inc.
     20,591       459  
JetBlue Airways Corp. *
     100,000       563  
Kansas City Southern *
     33,000       599  
Kirby Corp. *
     19,000       456  
Landstar System, Inc.
     26,030       934  
Norfolk Southern Corp.
     171,306       6,571  
Ryder System, Inc.
     28,064       948  
Southwest Airlines Co.
     347,688       2,444  
UAL Corp. *
     45,667       431  
Union Pacific Corp.
     225,982       9,896  
United Parcel Service, Inc., Class B
     429,925       18,268  
 
                
 
             71,909  
 
                
Utilities 4.9%
                
AGL Resources, Inc.
     34,400       1,060  
Allegheny Energy, Inc.
     75,253       2,501  
Alliant Energy Corp.
     53,900       1,554  
Ameren Corp.
     81,485       2,709  
American Electric Power Co., Inc.
     180,931       5,672  
American Water Works Co., Inc.
     25,000       529  
AmeriGas Partners L.P.
     6,900       218  
Aqua America, Inc.
     43,134       895  
Atmos Energy Corp.
     32,818       806  
Calpine Corp. *
     180,000       1,334  
CenterPoint Energy, Inc.
     148,411       1,986  
Cleco Corp.
     20,000       457  
CMS Energy Corp.
     83,533       981  
Consolidated Edison, Inc.
     120,006       4,890  
Constellation Energy Group, Inc.
     78,441       2,063  
Dominion Resources, Inc.
     258,458       9,093  
DPL, Inc.
     50,061       1,079  
DTE Energy Co.
     75,397       2,601  
Duke Energy Corp.
     562,443       8,521  
Dynegy, Inc., Class A *
     175,199       370  
Edison International
     139,854       4,555  
Energen Corp.
     33,196       970  
Entergy Corp.
     80,522       6,149  
EQT Corp.
     56,400       1,931  
Exelon Corp.
     283,856       15,391  
FirstEnergy Corp.
     127,970       6,397  
FPL Group, Inc.
     176,308       9,089  
Great Plains Energy, Inc.
     39,000       744  
Hawaiian Electric Industries, Inc.
     37,748       818  
IDACORP, Inc.
     15,000       437  
Integrys Energy Group, Inc.
     34,155       1,426  
ITC Holdings Corp.
     17,000       714  
MDU Resources Group, Inc.
     83,917       1,669  
Mirant Corp. *
     72,702       1,248  
National Fuel Gas Co.
     27,047       810  
New Jersey Resources Corp.
     18,000       722  
Nicor, Inc.
     18,000       616  
NiSource, Inc.
     126,980       1,229  
Northeast Utilities
     71,514       1,702  
NRG Energy, Inc. *
     102,930       2,404  
NSTAR
     49,512       1,674  
NV Energy, Inc.
     100,000       1,073  
OGE Energy Corp.
     29,180       720  
ONEOK, Inc.
     48,062       1,404  
Ormat Technologies, Inc.
     3,900       121  
Pepco Holdings, Inc.
     89,174       1,588  
PG&E Corp.
     162,137       6,270  
Piedmont Natural Gas Co., Inc.
     27,000       700  
Pinnacle West Capital Corp.
     36,487       1,221  
PPL Corp.
     170,511       5,228  
Progress Energy, Inc.
     119,185       4,615  
Public Service Enterprise Group, Inc.
     226,322       7,145  
Puget Energy, Inc.
     46,219       1,359  
Questar Corp.
     77,720       2,641  
Reliant Energy, Inc. *
     157,397       801  
SCANA Corp.
     54,031       1,853  
Sempra Energy
     108,478       4,756  
Southern Co.
     341,518       11,424  
Spectra Energy Partners L.P.
     2,300       46  
TECO Energy, Inc.
     62,117       746  
The AES Corp. *
     292,202       2,311  
UGI Corp.
     41,148       1,044  
Vectren Corp.
     28,000       722  
Westar Energy, Inc.
     36,000       723  
WGL Holdings, Inc.
     21,000       674  
Wisconsin Energy Corp.
     54,168       2,415  
Xcel Energy, Inc.
     189,009       3,489  
 
                
 
             175,102  
 
                
Total Common Stock
(Cost $2,649,012)
             3,584,948  
 
                
 
                
Foreign Common Stock 0.1% of net assets
                
 
                
Bermuda 0.1%
                
Capital Goods 0.0%
                
Foster Wheeler Ltd. *
     64,856       1,295  
 
Diversified Financials 0.1%
                
Invesco Ltd.
     182,640       2,154  

10

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
                 
    Number of   Value
Security   Shares   ($ x 1,000)
Lazard Ltd., Class A
     12,200       323  
 
                
 
             2,477  
 
                
Insurance 0.0%
                
Platinum Underwriters Holdings, Ltd.
     6,400       178  
Validus Holdings Ltd.
     33,000       753  
 
                
 
             931  
 
                
Software & Services 0.0%
                
Genpact Ltd. *
     11,150       92  
 
                
 
             4,795  
 
                
British Virgin Islands 0.0%
                
Transportation 0.0%
                
UTI Worldwide, Inc.
     9,500       104  
 
                
Total Foreign Common Stock
(Cost $7,282)
             4,899  
 
                
                 
    Face/Maturity        
Issuer   Amount     Value  
Rate, Maturity Date   ($ x 1,000)     ($ x 1,000)  
Short-Term Investments 0.1% of net assets
                
U.S. Treasury Obligations 0.1%
                
U.S. Treasury Bills
                
0.05%, 03/26/09 (a)
     1,362       1,362  
0.03%, 03/26/09 (a)
     15       15  
 
                
Total Short-Term Investments
(Cost $1,377)
             1,377  
 
                
End of Investments.
(All dollar amounts are x 1,000)
At 01/31/09, the tax basis cost of the fund’s investments was $2,632,624 and the unrealized appreciation and depreciation were $1,492,767 and ($534,167), respectively, with a net unrealized appreciation of $958,600.
 
*   Non-income producing security.
 
(a)   All or a portion of this security is held as collateral for open futures contracts.
 
(b)   Issuer is affiliated with the fund’s adviser.
In addition to the above, the fund held the following at 01/31/09. All numbers are x 1,000 except number of futures contracts.
                         
    Number of   Contract   Unrealized
    Contracts   Value   Loss
Futures Contract
                        
 
                        
S & P 500 Index, e-mini, Long, expires 03/20/09
     25       1,028       (4 )

11

 

Schwab 1000 Index Fund
Portfolio Holdings (Unaudited) continued
Various inputs are used in determining the value of the fund’s investments. These inputs are summarized in the three broad levels listed below:
Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. Securities in money funds are valued utilizing amortized cost (which approximates market value) permitted in accordance with Rule 2a-7 of the Investment Company Act of 1940.
The following is a summary of the inputs used as of January 31, 2009 in valuing the fund’s investments carried at value:
         
    Investments in  
Valuation Inputs   Securties*  
Level 1 - Quoted Prices
   $ 3,589,847  
Level 2 - Other Significant Observable Inputs
     1,377  
Level 3 - Significant Unobservable Inputs
     —  
 
      
Total
   $ 3,591,224  
 
      
 
*   Other financial instruments include future contracts of ($4).
REG46851JAN09

12

 

Item 2. Controls and Procedures.
(a)   Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, 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: March 26, 2009
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: March 26, 2009

 

 

         
By:
  /s/ George Pereira
 
George Pereira
Principal Financial Officer 		   
Date: March 26, 2009