nvcsrs

Operations

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22311

Schwab Strategic Trust

(Exact name of registrant as specified in charter)

211 Main Street, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

Marie Chandoha
Schwab Strategic Trust
211 Main Street, San Francisco, California 94105

(Name and address of agent for service)

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

Date of fiscal year end: August 31

Date of reporting period: February 29, 2012

Item 1: Report(s) to Shareholders.

Semiannual report dated February 29, 2012, enclosed

Schwab U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap

Growth ETF^tm

Schwab U.S. Large-Cap

Value ETF^tm

Schwab U.S. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. Dividend

Equity ETF^tm

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This wrapper is not part of the shareholder report.

Schwab U.S. ETFs

Semiannual Report

February 29, 2012

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap

Growth ETF^tm

Schwab U.S. Large-Cap

Value ETF^tm

Schwab U.S. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. Dividend

Equity ETF^tm

This page is intentionally left blank.

In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Performance Summaries
Schwab U.S. Broad Market ETF™		6
Schwab U.S. Large-Cap ETF™		7
Schwab U.S. Large-Cap Growth ETF™		8
Schwab U.S. Large-Cap Value ETF™		9
Schwab U.S. Mid-Cap ETF™		10
Schwab U.S. Small-Cap ETF™		11
Schwab U.S. Dividend Equity ETF™		12
Fund Expenses		13
Financial Statements and Portfolio Holdings
Schwab U.S. Broad Market ETF™		14
Schwab U.S. Large-Cap ETF™		33
Schwab U.S. Large-Cap Growth ETF™		45
Schwab U.S. Large-Cap Value ETF™		55
Schwab U.S. Mid-Cap ETF™		64
Schwab U.S. Small-Cap ETF™		74
Schwab U.S. Dividend Equity ETF™		95
Financial Notes		102
Investment Advisory Agreement Approval		110
Trustees and Officers		112
Glossary		115

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the schedules of Portfolio Holdings are sub-categories of Sector classifications.

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.


Total Return for
the Report Period*



Schwab U.S. Broad Market ETF^tm
(Ticker Symbol: SCHB)

NAV Return¹		13.28%
Market Price Return¹		13.29%
Dow Jones U.S. Broad Stock Market Index^SM		13.29%
ETF Category: Morningstar Large Blend²		12.89%

Performance Details		page 6



Schwab U.S. Large-Cap ETF^tm
(Ticker Symbol: SCHX)

NAV Return¹		13.27%
Market Price Return¹		13.23%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		13.31%
ETF Category: Morningstar Large Blend²		12.89%

Performance Details		page 7



Schwab U.S. Large-Cap Growth ETF^tm
(Ticker Symbol: SCHG)

NAV Return¹		13.93%
Market Price Return¹		13.96%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		14.00%
ETF Category: Morningstar Large Growth²		13.09%

Performance Details		page 8



Schwab U.S. Large-Cap Value ETF^tm
(Ticker Symbol: SCHV)

NAV Return¹		12.55%
Market Price Return¹		12.67%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		12.64%
ETF Category: Morningstar Large Value²		12.31%

Performance Details		page 9



Schwab U.S. Mid-Cap ETF^tm
(Ticker Symbol: SCHM)

NAV Return¹		13.99%
Market Price Return¹		13.90%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		14.09%
ETF Category: Morningstar Mid-Cap Blend²		12.59%

Performance Details		page 10



Schwab U.S. Small-Cap ETF^tm
(Ticker Symbol: SCHA)

NAV Return¹		13.09%
Market Price Return¹		13.11%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		13.10%
ETF Category: Morningstar Small Blend²		13.08%

Performance Details		page 11



Schwab U.S. Dividend Equity ETF^tm**
(Ticker Symbol: SCHD)

NAV Return¹		10.46%
Market Price Return¹		10.50%
Dow Jones U.S. Dividend 100 Index^SM		10.58%
ETF Category: Morningstar Large Blend²		13.05%

Performance Details		page 12

All fund and index figures on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price (not NAV). Brokerage commissions will reduce returns.

Index ownership—“Dow Jones” and the names identifying the Dow Jones Indexes are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. ETFs, based on their respective Dow Jones Indexes, are not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such products.


*	The report period covers the six months beginning September 1, 2011 through February 29, 2012, except where noted.

**	Total returns are since inception date of 10/20/11. Inception represents the date that the shares began trading in the secondary market. The fund’s total return may differ from the return disclosed in the Financial Highlights, as the total return in the Financial Highlights is calculated from the commencement of operations date which is the first day the NAV was determined.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab U.S. ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc., and the funds covered in this report.

Dear Shareholder,

As President and CEO of Charles Schwab Investment Management, Inc., I’d like to thank you for trusting us with your investment needs, and for reading this important report concerning the Schwab U.S. ETFs.

U.S. stocks generated impressive returns for the six months ended February 29, 2012, quickly recovering from an early period selloff amid an improving economic landscape and supportive corporate fundamentals. The S&P 500 Index generated a 13.31% total return in that environment, outperforming the 13.05% gain achieved by the Dow Jones Industrial Average, and the 12.40% total return of the small-cap Russell 2000 Index. In addition, growth stocks generally outperformed value stocks, while medium-capitalization stocks generally provided slightly higher returns than small- and large-cap stocks.

Equities started the period on a sour note, selling off sharply in September 2011. A worrisome soft patch in U.S. economic data that fueled fears of recession was one catalyst for the decline, while lingering market reaction to Standard & Poor’s August downgrade of long-term Treasuries—and worries about possible credit aftershocks—was another. Also weighing on stocks was data that began to suggest an unexpectedly quick deceleration of economic growth in China, where the country’s central bank was striving to temper inflation by raising short-term interest rates.

Concerns that the euro zone’s sovereign debt crisis could spread to the “core” countries of France and Germany fueled substantial market volatility, weighing on U.S. stocks as well. With ongoing developments frequently becoming media headlines, investor anxiety and stock market fluctuations spiked higher. Illustrating this behavior was the performance of the CBOE Volatility Index, or CBOE VIX. This “investor fear gauge”—which measures the implied volatility of stock index option prices—surged above 45.0 in mid-October, more than double the trailing 20-year historical average. In an effort to stabilize the financial markets amid this

Asset Class Performance Comparison % returns during the report period

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.



		13.31%		S&P 500^® Index: measures U.S. large-cap stocks

		12.40%		Russell 2000^® Index: measures U.S. small-cap stocks

		4.26%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		2.73%		Barclays Capital U.S. Aggregate Bond Index: measures the U.S. bond market

		0.01%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

These figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and you cannot invest in them directly. Remember that past performance is not an indication of future results.

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

Nothing in this report represents a recommendation of a security by the investment adviser.

Manager views and portfolio holdings may have changed since the report date.

Schwab U.S. ETFs 3

From the President continued

U.S. stocks generated impressive returns, quickly recovering from an early period selloff amid an improving economic landscape and supportive corporate fundamentals.

volatile and uncertain backdrop, the Federal Reserve and European Central Bank acted in close coordination to ensure that markets had ample liquidity.

The new year brought with it a sharp change in investors’ risk tolerance, however. Improvement in U.S. economic prospects helped, as the national unemployment rate declined from 9.0% in September to an estimated 8.3% in February. In another positive development, inflation-adjusted U.S. economic growth accelerated to a 3.0% seasonally adjusted annual pace in the final quarter of 2011,* up sharply from an anemic 0.4% rate during the first quarter. Tentative signs that the housing market may be improving also played a role in shifting investor sentiment, with initial data revealing that existing home sales increased at a nearly 26% annualized rate in the final quarter of 2011. Construction activity and homebuilder sentiment improved as well, providing further evidence of a possible turnaround. In addition, optimism rose for a long-awaited solution to the sovereign debt crisis faced by Greece, while data out of China suggested that the country’s economy was achieving a “soft landing”—moderate but relatively robust growth.

Supportive corporate fundamentals helped equities start 2012 on firmer footing as well. Corporate profits for S&P 500 companies topped analyst estimates for a twelfth straight quarter during the final three months of 2011. Meanwhile, stock valuations remained approximately in line with trailing five-year averages, as gauged by price-to-earnings ratios for the S&P 500 Index. Amid that backdrop, stocks posted their best start-of-the-year performances in more than a decade for the combined months of January and February, and CBOE VIX levels decreased to historically average levels as stock market volatility and trading activity declined.

For information concerning the characteristics and investment performance of the Schwab U.S. ETFs, please read the pages that follow this letter.

We also encourage you to review your investment portfolio regularly to make sure it meets your current financial plan. For answers to questions you may have or to consult our website for more information, please visit www.schwabetfs.com. We are also happy to hear from you at 1-800-435-4000.

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested.


*		The figure cited represents the second estimate from the U.S. Bureau of Economic Analysis (BEA). The BEA provides three estimates of quarterly U.S. economic growth: an “initial” estimate, a “second” estimate, and a “final” estimate. Successive estimates are based upon more complete source data, and may result in a faster or slower estimated pace of inflation-adjusted economic activity.

4 Schwab U.S. ETFs

Fund Management



		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in September 2009, she worked for five years as a portfolio manager for a major asset management firm. Prior to that, she worked in strategy and management consulting for five years. In addition, she also worked as a senior product manager servicing global financial services clients.

		Ferian Juwono, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab U.S. ETFs 5

Schwab U.S. Broad Market ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Broad Market ETF^tm (11/3/09)
NAV Return²		13.28	%		4.76	%		15.69	%
Market Price Return²		13.29	%		4.57	%		15.63	%
Dow Jones U.S. Broad Stock Market Index^SM		13.29	%		4.61	%		15.77	%
ETF Category: Morningstar Large Blend³		12.89	%		4.92	%		14.47	%

Fund Expense Ratio⁴: 0.06%

Statistics


Number of Holdings			1,582
Weighted Average Market Cap ($ x 1,000,000)			$85,932
Price/Earnings Ratio (P/E)			16.7
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate⁵			2%

Sector Weightings % of Investments


Information Technology			19.5%
Financials			15.3%
Consumer Discretionary			11.9%
Health Care			11.4%
Energy			11.2%
Industrials			11.1%
Consumer Staples			9.5%
Materials			4.1%
Utilities			3.5%
Telecommunication Services			2.5%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Apple, Inc.			3.4%
Exxon Mobil Corp.			2.8%
Microsoft Corp.			1.6%
International Business Machines Corp.			1.6%
Chevron Corp.			1.5%
General Electric Co.			1.4%
The Procter & Gamble Co.			1.2%
AT&T, Inc.			1.2%
Johnson & Johnson			1.2%
Pfizer, Inc.			1.1%
Total			17.0%

Portfolio holdings may have changed since the report date.

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged, and you cannot invest in them directly. Performance results less than one year are not annualized.

An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of operational and transaction costs incurred by the fund.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Broad Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Broad Market ETF, based on The Dow Jones U.S. Broad Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

6 Schwab U.S. ETFs

Schwab U.S. Large-Cap ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap ETF^tm (11/3/09)
NAV Return²		13.27	%		4.98	%		15.02	%
Market Price Return²		13.23	%		4.91	%		15.02	%
Dow Jones U.S. Large-Cap Total Stock Market Index^SM		13.31	%		5.08	%		15.16	%
ETF Category: Morningstar Large Blend³		12.89	%		4.92	%		14.47	%

Fund Expense Ratio⁴: 0.08%

Statistics


Number of Holdings			751
Weighted Average Market Cap ($ x 1,000,000)			$96,164
Price/Earnings Ratio (P/E)			16.0
Price/Book Ratio (P/B)			2.3
Portfolio Turnover Rate⁵			2%

Sector Weightings % of Investments


Information Technology			19.7%
Financials			14.7%
Energy			11.9%
Consumer Discretionary			11.6%
Health Care			11.2%
Industrials			10.5%
Consumer Staples			10.2%
Materials			3.9%
Utilities			3.5%
Telecommunication Services			2.7%
Others			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Apple, Inc.			3.8%
Exxon Mobil Corp.			3.1%
Microsoft Corp.			1.8%
International Business Machines Corp.			1.7%
Chevron Corp.			1.6%
General Electric Co.			1.5%
AT&T, Inc.			1.4%
The Procter & Gamble Co.			1.3%
Johnson & Johnson			1.3%
Pfizer, Inc.			1.2%
Total			18.7%

Portfolio holdings may have changed since the report date.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC, (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap ETF, based on The Dow Jones U.S. Large-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. ETFs 7

Schwab U.S. Large-Cap Growth ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Growth ETF^tm (12/11/09)
NAV Return²		13.93	%		5.93	%		14.14	%
Market Price Return²		13.96	%		6.09	%		14.17	%
Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM		14.00	%		6.06	%		14.30	%
ETF Category: Morningstar Large Growth³		13.09	%		6.89	%		14.34	%

Fund Expense Ratio⁴: 0.13%

Statistics


Number of Holdings			424
Weighted Average Market Cap ($ x 1,000,000)			$87,852
Price/Earnings Ratio (P/E)			18.2
Price/Book Ratio (P/B)			3.1
Portfolio Turnover Rate⁵			4%

Sector Weightings % of Investments


Information Technology			30.8%
Consumer Discretionary			13.9%
Industrials			11.9%
Health Care			11.9%
Energy			10.0%
Financials			7.8%
Consumer Staples			7.7%
Materials			5.0%
Utilities			0.5%
Telecommunication Services			0.4%
Others			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Apple, Inc.			7.7%
Microsoft Corp.			3.6%
Google, Inc., Class A			2.3%
Berkshire Hathaway, Inc., Class B			2.3%
Oracle Corp.			1.7%
Cisco Systems, Inc.			1.6%
Schlumberger Ltd.			1.6%
Wal-Mart Stores, Inc.			1.6%
QUALCOMM, Inc.			1.6%
PepsiCo, Inc.			1.5%
Total			25.5%

Portfolio holdings may have changed since the report date.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap Growth ETF, based on The Dow Jones U.S. Large-Cap Growth Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

8 Schwab U.S. ETFs

Schwab U.S. Large-Cap Value ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Large-Cap Value ETF^tm (12/11/09)
NAV Return²		12.55	%		3.93	%		11.35	%
Market Price Return²		12.67	%		3.89	%		11.35	%
Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM		12.64	%		4.11	%		11.58	%
ETF Category: Morningstar Large Value³		12.31	%		5.56	%		12.49	%

Fund Expense Ratio⁴: 0.13%

Statistics


Number of Holdings			328
Weighted Average Market Cap ($ x 1,000,000)			$104,096
Price/Earnings Ratio (P/E)			14.3
Price/Book Ratio (P/B)			1.8
Portfolio Turnover Rate⁵			5%

Sector Weightings % of Investments


Financials			21.3%
Energy			13.6%
Consumer Staples			12.7%
Health Care			10.6%
Consumer Discretionary			9.4%
Industrials			9.1%
Information Technology			9.1%
Utilities			6.5%
Telecommunication Services			4.9%
Materials			2.8%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Exxon Mobil Corp.			6.0%
International Business Machines Corp.			3.4%
Chevron Corp.			3.2%
General Electric Co.			2.9%
The Procter & Gamble Co.			2.7%
AT&T, Inc.			2.6%
Johnson & Johnson			2.6%
Pfizer, Inc.			2.4%
Wells Fargo & Co.			2.3%
JPMorgan Chase & Co.			2.2%
Total			30.3%

Portfolio holdings may have changed since the report date.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Large-Cap Value ETF, based on The Dow Jones U.S. Large-Cap Value Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. ETFs 9

Schwab U.S. Mid-Cap ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Mid-Cap ETF^tm (1/13/11)
NAV Return²		13.99	%		3.30	%		7.09	%
Market Price Return²		13.90	%		3.30	%		7.09	%
Dow Jones U.S. Mid-Cap Total Stock Market Index^SM		14.09	%		3.43	%		7.23	%
ETF Category: Morningstar Mid-Cap Blend³		12.59	%		2.00	%		6.15	%

Fund Expense Ratio⁴: 0.13%

Statistics


Number of Holdings			490
Weighted Average Market Cap ($ x 1,000,000)			$4,350
Price/Earnings Ratio (P/E)			23.7
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate⁵			8%

Sector Weightings % of Investments


Financials			20.3%
Industrials			16.2%
Consumer Discretionary			15.3%
Information Technology			14.6%
Materials			8.6%
Health Care			8.2%
Utilities			6.8%
Energy			6.1%
Consumer Staples			2.7%
Telecommunication Services			1.2%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Seagate Technology plc			0.7%
Liberty Media Corp. - Liberty Capital, Series A			0.6%
Herbalife Ltd.			0.5%
Regeneron Pharmaceuticals, Inc.			0.5%
Digital Realty Trust, Inc.			0.5%
AMETEK, Inc.			0.5%
Textron, Inc.			0.5%
Kansas City Southern			0.5%
Celanese Corp., Series A			0.5%
Pall Corp.			0.4%
Total			5.2%

Portfolio holdings may have changed since the report date.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Mid-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are paid by CSIM. The Schwab U.S. Mid-Cap ETF, based on The Dow Jones U.S. Mid-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

10 Schwab U.S. ETFs

Schwab U.S. Small-Cap ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab U.S. Small-Cap ETF^tm (11/3/09)
NAV Return²		13.09	%		0.94	%		20.37	%
Market Price Return²		13.11	%		0.94	%		20.41	%
Dow Jones U.S. Small-Cap Total Stock Market Index^SM		13.10	%		0.95	%		20.58	%
ETF Category: Morningstar Small Blend³		13.08	%		0.36	%		17.78	%

Fund Expense Ratio⁴: 0.13%

Statistics


Number of Holdings			1,737
Weighted Average Market Cap ($ x 1,000,000)			$1,858
Price/Earnings Ratio (P/E)			36.7
Price/Book Ratio (P/B)			2.0
Portfolio Turnover Rate⁵			5%

Sector Weightings % of Investments


Financials			20.2%
Information Technology			17.2%
Industrials			16.8%
Consumer Discretionary			14.7%
Health Care			12.3%
Energy			6.2%
Materials			5.8%
Consmer Staples			2.9%
Utilities			2.9%
Telecommunication Services			1.0%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Rock-Tenn Co., Class A			0.3%
VeriFone Systems, Inc.			0.3%
Panera Bread Co., Class A			0.3%
Superior Energy Services, Inc.			0.3%
Foot Locker, Inc.			0.3%
BE Aerospace, Inc.			0.3%
Polaris Industries, Inc.			0.3%
Oil States International, Inc.			0.3%
MICROS Systems, Inc., Class A			0.3%
Ulta Salon, Cosmetics & Fragrance, Inc.			0.3%
Total			3.0%

Portfolio holdings may have changed since the report date.

Investments in smaller companies typically exhibit higher volatility.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Small-Cap Total Stock Market Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are payable by CSIM. The Schwab U.S. Small-Cap ETF, based on The Dow Jones U.S. Small-Cap Total Stock Market Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

Schwab U.S. ETFs 11

Schwab U.S. Dividend Equity ETF™

Performance Summary as of 2/29/12

Total Returns¹


Fund and Inception Date	Since Inception*


Fund: Schwab U.S. Dividend Equity ETF^tm (10/20/11)
NAV Return²		10.46	%
Market Price Return²		10.50	%
Dow Jones U.S. Dividend 100 Index^SM		10.58	%
ETF Category: Morningstar Large Blend³		13.05	%

Fund Expense Ratio⁴: 0.17%

Statistics


Number of Holdings			100
Weighted Average Market Cap ($ x 1,000,000)			$106,585
Price/Earnings Ratio (P/E)			14.3
Price/Book Ratio (P/B)			3.3
Portfolio Turnover Rate⁵			1%

Sector Weightings % of Investments


Consumer Staples			22.7%
Industrials			18.3%
Health Care			12.6%
Energy			12.4%
Information Technology			12.3%
Consumer Discretionary			11.5%
Materials			4.3%
Financials			2.6%
Utilities			2.4%
Telecommunication Services			0.9%
Total			100.0%

Top Equity Holdings % of Net Assets⁶


Intel Corp.			4.6%
Exxon Mobil Corp.			4.6%
Chevron Corp.			4.5%
The Procter & Gamble Co.			4.4%
The Coca-Cola Co.			4.4%
International Business Machines Corp.			4.3%
Johnson & Johnson			4.3%
Wal-Mart Stores, Inc.			3.7%
McDonald’s Corp.			3.6%
PepsiCo, Inc.			3.5%
Total			41.9%

Portfolio holdings may have changed since the report date.

Index ownership—“Dow Jones” and “The Dow Jones U.S. Dividend 100 Index^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”), and sublicensed for use for certain purposes by CSIM, the fund’s investment adviser. Fees payable under the license are payable by CSIM. The Schwab U.S. Dividend Equity ETF, based on The Dow Jones U.S. Dividend 100 Index^SM, is not sponsored, endorsed, sold or promoted by Dow Jones or CME Indexes and neither makes any representation regarding the advisability of trading in such product.

Source of Sector Classification: S&P and MSCI.


*		Total returns are since inception date of 10/20/11. Inception represents the date that the shares began trading in the secondary market. The fund’s total return may differ from the return disclosed in the Financial Highlights, as the total return in the Financial Highlights is calculated from the commencement of operations date which is the first day the NAV was determined.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.
⁵		Not annualized.
⁶		This list is not a recommendation of any security by the investment adviser.

12 Schwab U.S. ETFs

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management fees and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning September 1, 2011 (or, for the Schwab U.S. Dividend Equity ETF, since commencement of operations on October 19, 2011) and held through February 29, 2012.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ¸ $1,000 = 8.6), then multiply the result by the number given for your fund or share class under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs, including any redemption fees or brokerage commissions you may pay when purchasing or selling shares of the fund. If these transactional costs were included, your costs would have been higher.


					Ending
					Account Value
	Expense Ratio¹		Beginning		(Net of Expenses)		Expenses Paid
	(Annualized)		Account Value		at 2/29/12		During Period

Schwab U.S. Broad Market ETF^tm2
Actual Return		0.06%	$	1,000	$	1,132.80	$	0.32
Hypothetical 5% Return		0.06%	$	1,000	$	1,024.57	$	0.30


Schwab U.S. Large-Cap ETF^tm2
Actual Return		0.08%	$	1,000	$	1,132.70	$	0.42
Hypothetical 5% Return		0.08%	$	1,000	$	1,024.47	$	0.40


Schwab U.S. Large-Cap Growth ETF^tm2
Actual Return		0.13%	$	1,000	$	1,139.30	$	0.69
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.22	$	0.65


Schwab U.S. Large-Cap Value ETF^tm2
Actual Return		0.13%	$	1,000	$	1,125.50	$	0.69
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.22	$	0.65


Schwab U.S. Mid-Cap ETF^tm2
Actual Return		0.13%	$	1,000	$	1,139.90	$	0.69
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.22	$	0.65


Schwab U.S. Small-Cap ETF^tm2
Actual Return		0.13%	$	1,000	$	1,130.90	$	0.69
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.22	$	0.65


Schwab U.S. Dividend Equity ETF^tm3
Actual Return		0.17%	$	1,000	$	1,099.70	$	0.65
Hypothetical 5% Return		0.17%	$	1,000	$	1,017.68	$	0.63


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 182 days of the period, and divided by the 366 days of the fiscal year.
³		Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 134 days of the period (from commencement of operations on 10/19/11 through 2/29/12) and divided by the 366 days of the fiscal year.

Schwab U.S. ETFs 13

Schwab U.S. Broad Market ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.47			25.11			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.32	²		0.56	²		0.42	²
Net realized and unrealized gains (losses)		3.55			4.32			(0.05	)

Total from investment operations		3.87			4.88			0.37
Less distributions:
Distributions from net investment income		(0.29	)		(0.52	)		(0.26	)

Net asset value at end of period		33.05			29.47			25.11

Total return (%)		13.28	³		19.41			1.42	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.06	⁴		0.06			0.07	^4,5
Gross operating expenses		0.06	⁴		0.06			0.07	⁴
Net investment income (loss)		2.13	⁴		1.83			1.92	⁴
Portfolio turnover rate⁶		2	³		3			2	³
Net assets, end of period ($ x 1,000)		993,159			742,651			272,490

* Unaudited.

¹ Commencement of operations.

² Calculated based on the average shares outstanding during the period.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

14 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov and may be viewed and copied at the SEC’s Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for information on the operation of the Public Reference Room. The fund also makes available its complete schedule of portfolio holdings on a daily basis on the fund’s website at www.schwabetfs.com.


				Cost		Value
Holdings by Category				($)		($)

	99	.8%	Common Stock		902,857,164		991,351,544
	0	.0%	Rights		—		—
	0	.0%	Other Investment Company		329,682		329,682


	99	.8%	Total Investments		903,186,846		991,681,226
	0	.3%	Collateral Invested for Securities on Loan		3,044,237		3,044,237
	(0	.1)%	Other Assets and Liabilities, Net				(1,566,952	)


	100	.0%	Net Assets				993,158,511


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 0.9%
American Axle & Manufacturing Holdings, Inc. *		3,005		34,227
BorgWarner, Inc. *		7,813		647,229
Cooper Tire & Rubber Co.		6,010		99,766
Dana Holding Corp. *		10,217		163,472
Dorman Products, Inc. *		1,202		54,583
Ford Motor Co.		249,415		3,087,758
General Motors Co. *		38,464		1,000,833
Gentex Corp.		9,015		213,205
Harley-Davidson, Inc.		15,626		727,859
Johnson Controls, Inc.		44,474		1,451,187
Lear Corp.		7,212		326,054
Tenneco, Inc. *		3,606		138,831
Tesla Motors, Inc. *(a)		3,606		120,476
The Goodyear Tire & Rubber Co. *		19,232		247,323
Thor Industries, Inc.		3,005		97,873
TRW Automotive Holdings Corp. *		7,212		329,877
Visteon Corp. *		4,207		226,000

				8,966,553

Banks 3.1%
Associated Banc-Corp		12,941		171,339
Astoria Financial Corp.		9,616		84,428
BancorpSouth, Inc.		4,808		56,927
Bank of Hawaii Corp.		3,005		138,230
Bank of the Ozarks, Inc.		2,404		70,557
BankUnited, Inc.		4,808		110,728
BB&T Corp.		45,676		1,336,023
BBCN Bancorp, Inc. *		9,015		92,404
BOK Financial Corp.		2,404		129,047
Boston Private Financial Holdings, Inc.		9,015		85,913
CapitalSource, Inc.		28,247		190,667
Capitol Federal Financial, Inc.		15,025		175,642
Cathay General Bancorp		7,212		117,844
CIT Group, Inc. *		13,823		562,734
City Holding Co. (a)		1,202		41,193
City National Corp.		3,005		141,235
Columbia Banking System, Inc.		4,207		88,978
Comerica, Inc.		13,823		410,405
Commerce Bancshares, Inc.		5,635		217,567
Community Bank System, Inc.		2,404		65,677
Cullen/Frost Bankers, Inc.		3,606		203,667
CVB Financial Corp.		12,020		129,455
East West Bancorp, Inc.		10,217		226,000
F.N.B. Corp.		13,222		155,887
Fifth Third Bancorp		63,105		858,859
First Citizens BancShares, Inc., Class A		601		105,866
First Financial Bancorp		3,662		59,947
First Financial Bankshares, Inc. (a)		3,005		102,951
First Horizon National Corp.		21,035		197,729
First Midwest Bancorp, Inc.		6,010		69,476
First Niagara Financial Group, Inc.		20,434		195,349
First Republic Bank *		4,808		144,192
FirstMerit Corp.		7,212		115,753
Fulton Financial Corp.		14,744		144,491
Glacier Bancorp, Inc.		7,212		99,526
Hancock Holding Co.		5,409		183,636
Home Bancshares, Inc.		2,404		60,581
Hudson City Bancorp, Inc.		31,853		218,193
Huntington Bancshares, Inc.		56,494		330,207
IBERIABANK Corp.		1,803		95,631
International Bancshares Corp.		6,010		114,070
Investors Bancorp, Inc. *		3,606		52,395
KeyCorp		64,755		524,515
M&T Bank Corp.		8,414		686,751
MB Financial, Inc.		5,409		107,639
MGIC Investment Corp. *		18,030		81,315
National Penn Bancshares, Inc.		15,025		131,469
NBT Bancorp, Inc.		4,207		91,755
New York Community Bancorp, Inc.		28,247		367,493
Northwest Bancshares, Inc.		9,015		113,769
Ocwen Financial Corp. *		8,414		135,550
Old National Bancorp		9,015		108,901
Oritani Financial Corp.		4,207		54,817
PacWest Bancorp		3,005		65,419
Park National Corp. (a)		1,803		124,119
People’s United Financial, Inc.		22,838		287,530
PNC Financial Services Group, Inc.		34,657		2,062,785
Popular, Inc. *		66,219		125,816
PrivateBancorp, Inc.		5,409		78,431
Prosperity Bancshares, Inc.		3,005		131,439
Provident Financial Services, Inc.		4,808		66,062
Regions Financial Corp.		80,534		463,876
Signature Bank *		3,005		178,377
SunTrust Banks, Inc.		38,464		883,133
Susquehanna Bancshares, Inc.		9,021		83,625
SVB Financial Group *		3,606		213,764
Synovus Financial Corp.		36,060		76,447
TCF Financial Corp.		12,268		132,249
Texas Capital Bancshares, Inc. *		4,207		142,575

See financial notes 15

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
TFS Financial Corp. *		8,414		78,671
Trustmark Corp.		4,808		113,373
U.S. Bancorp		126,811		3,728,243
UMB Financial Corp.		2,404		100,127
Umpqua Holdings Corp.		9,616		118,469
United Bankshares, Inc. (a)		4,808		140,778
Valley National Bancorp		15,025		187,963
Washington Federal, Inc.		7,212		116,834
Webster Financial Corp.		7,212		157,799
Wells Fargo & Co.		327,545		10,248,883
Westamerica Bancorp		1,803		85,390
Wintrust Financial Corp.		3,005		101,299
Zions Bancorp		11,419		216,961

				31,065,810

Capital Goods 8.4%
3M Co.		42,671		3,737,980
A.O. Smith Corp.		2,404		108,565
AAR Corp.		2,404		53,008
Actuant Corp., Class A		5,409		152,371
Acuity Brands, Inc.		3,005		186,881
Aecom Technology Corp. *		6,611		154,367
Aerovironment, Inc. *		1,803		51,349
AGCO Corp. *		6,010		310,296
Air Lease Corp. *		6,010		147,786
Aircastle Ltd.		5,409		73,616
Alliant Techsystems, Inc.		1,803		108,180
American Science & Engineering, Inc.		601		43,693
AMETEK, Inc.		10,818		514,937
Applied Industrial Technologies, Inc.		3,005		120,711
Armstrong World Industries, Inc. *		2,404		123,133
Barnes Group, Inc.		5,409		149,829
BE Aerospace, Inc. *		7,212		330,598
Beacon Roofing Supply, Inc. *		3,005		70,858
Belden, Inc.		3,606		142,329
Blount International, Inc. *		3,005		51,536
Brady Corp., Class A		3,005		96,010
Briggs & Stratton Corp.		4,808		81,447
Carlisle Cos., Inc.		4,207		205,302
Caterpillar, Inc.		39,065		4,461,614
Chart Industries, Inc. *		1,824		124,743
CLARCOR, Inc.		3,606		181,995
Colfax Corp. *		3,005		102,230
Cooper Industries plc		12,030		736,477
Crane Co.		3,606		175,143
Cubic Corp.		2,404		114,911
Cummins, Inc.		12,020		1,449,251
Curtiss-Wright Corp.		3,005		111,636
Danaher Corp.		37,863		2,000,302
Deere & Co.		27,646		2,292,683
DigitalGlobe, Inc. *		3,019		46,432
Donaldson Co., Inc.		4,808		353,051
Dover Corp.		12,020		769,520
Eaton Corp.		21,636		1,129,183
EMCOR Group, Inc.		4,207		116,955
Emerson Electric Co.		49,883		2,509,614
EnerSys *		4,207		141,271
ESCO Technologies, Inc.		2,404		86,039
Esterline Technologies Corp. *		2,404		156,140
Exelis, Inc.		12,020		126,330
Fastenal Co.		19,232		1,013,142
Flowserve Corp.		3,606		427,563
Fluor Corp.		12,020		726,970
Fortune Brands Home & Security, Inc. *		10,217		197,597
Foster Wheeler AG *		7,412		182,558
Franklin Electric Co., Inc.		1,803		90,168
Gardner Denver, Inc.		3,606		247,660
GATX Corp.		3,606		156,825
Generac Holdings, Inc. *		1,803		45,868
General Cable Corp. *		3,130		96,936
General Dynamics Corp.		19,833		1,452,371
General Electric Co.		695,357		13,246,551
Goodrich Corp.		8,414		1,059,912
Graco, Inc.		4,207		215,314
GrafTech International Ltd. *		8,414		106,942
Granite Construction, Inc.		3,606		103,132
Harsco Corp.		5,409		120,242
HEICO Corp., Class A		3,005		119,839
Hexcel Corp. *		8,414		212,622
Honeywell International, Inc.		46,878		2,792,522
Hubbell, Inc., Class B		3,606		271,243
Huntington Ingalls Industries, Inc. *		3,606		129,383
IDEX Corp.		5,409		226,096
II-VI, Inc. *		4,828		112,927
Illinois Tool Works, Inc.		28,247		1,573,075
Ingersoll-Rand plc		22,838		910,779
ITT Corp.		6,010		149,949
Jacobs Engineering Group, Inc. *		8,414		388,895
Joy Global, Inc.		7,212		627,155
Kaman Corp.		1,803		62,185
Kaydon Corp.		3,005		113,048
KBR, Inc.		10,818		392,910
Kennametal, Inc.		5,409		249,193
L-3 Communications Holdings, Inc.		7,813		548,863
Lennox International, Inc.		3,606		141,103
Lincoln Electric Holdings, Inc.		6,010		277,602
Lockheed Martin Corp.		17,454		1,543,108
Masco Corp.		25,242		299,875
MasTec, Inc. *		7,813		137,431
Moog, Inc., Class A *		3,606		158,339
MSC Industrial Direct Co., Class A		3,005		238,627
Mueller Industries, Inc.		3,606		165,876
Navistar International Corp. *		4,207		175,768
Nordson Corp.		3,606		198,222
Northrop Grumman Corp.		16,227		970,537
Orbital Sciences Corp. *		3,606		50,664
Oshkosh Corp. *		6,010		140,093
Owens Corning, Inc. *		6,611		209,238
PACCAR, Inc.		24,040		1,106,080
Pall Corp.		7,813		495,735
Parker Hannifin Corp.		10,818		971,565
Pentair, Inc.		6,611		254,523
Polypore International, Inc. *(a)		2,404		98,852
Precision Castparts Corp.		9,616		1,610,007
Quanta Services, Inc. *		13,222		276,340
Raven Industries, Inc.		1,202		75,786
Raytheon Co.		22,838		1,153,776
RBC Bearings, Inc. *		1,803		82,055
Regal-Beloit Corp.		2,404		162,270
Robbins & Myers, Inc.		3,005		146,674
Rockwell Automation, Inc.		9,616		769,088
Rockwell Collins, Inc.		10,217		605,766

16 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Roper Industries, Inc.		6,010		550,035
RSC Holdings, Inc. *		6,611		147,227
Simpson Manufacturing Co., Inc.		3,606		107,531
Snap-On, Inc.		3,606		220,435
Spirit AeroSystems Holdings, Inc., Class A *		6,080		145,677
SPX Corp.		3,606		263,743
Stanley Black & Decker, Inc.		11,419		876,979
TAL International Group, Inc.		1,815		65,413
Teledyne Technologies, Inc. *		3,005		179,098
Terex Corp. *		7,813		198,372
Textainer Group Holdings Ltd.		3,005		99,826
Textron, Inc.		18,631		512,539
The Babcock & Wilcox Co. *		7,813		201,107
The Boeing Co.		43,873		3,288,281
The Manitowoc Co., Inc.		10,217		160,816
The Middleby Corp. *		1,803		176,225
The Shaw Group, Inc. *		5,409		156,536
The Timken Co.		5,409		283,432
The Toro Co.		2,404		162,847
Thomas & Betts Corp. *		3,606		260,461
Titan International, Inc.		2,404		59,235
TransDigm Group, Inc. *		3,606		428,357
Trinity Industries, Inc.		5,409		188,017
Triumph Group, Inc.		3,606		230,063
Tutor Perini Corp. *		4,808		75,870
Tyco International Ltd.		30,651		1,588,335
United Rentals, Inc. *		3,648		152,049
United Technologies Corp.		52,287		4,385,311
URS Corp. *		5,409		236,103
USG Corp. *		7,212		102,771
Valmont Industries, Inc.		1,202		133,506
W.W. Grainger, Inc.		4,207		873,920
WABCO Holdings, Inc. *		4,207		250,274
Wabtec Corp.		3,005		224,564
Watsco, Inc.		1,803		128,716
Watts Water Technologies, Inc., Class A		3,005		118,818
WESCO International, Inc. *		3,606		226,781
Woodward, Inc.		3,606		157,835
Xylem, Inc.		12,020		312,280

				83,015,122

Commercial & Professional Services 0.9%
ABM Industries, Inc.		4,808		109,142
Acacia Research Corp. *		2,404		94,958
Avery Dennison Corp.		7,212		219,966
Cintas Corp.		7,813		301,269
Clean Harbors, Inc. *		3,606		242,179
Copart, Inc. *		4,808		239,342
Corrections Corp. of America *		7,212		180,733
CoStar Group, Inc. *		2,404		144,192
Covanta Holding Corp.		9,015		147,215
Deluxe Corp.		3,606		88,960
Equifax, Inc.		8,414		353,725
FTI Consulting, Inc. *		3,606		144,492
Healthcare Services Group, Inc.		7,212		140,490
Herman Miller, Inc.		6,010		126,210
HNI Corp.		3,606		91,160
Huron Consulting Group, Inc. *		1,202		45,892
IHS, Inc., Class A *		3,005		284,183
Insperity, Inc.		1,812		54,596
Interface, Inc., Class A		6,611		80,985
Iron Mountain, Inc.		12,020		373,221
KAR Auction Services, Inc. *		6,011		96,597
Korn/Ferry International *		6,010		95,980
Manpower, Inc.		5,409		232,966
Mine Safety Appliances Co.		3,606		132,917
Mobile Mini, Inc. *		2,404		51,926
Nielsen Holdings N.V. *		3,636		107,226
Pitney Bowes, Inc.		13,823		250,611
Portfolio Recovery Associates, Inc. *		1,202		83,815
R.R. Donnelley & Sons Co. (a)		13,823		191,034
Republic Services, Inc.		20,434		609,546
Resources Connection, Inc.		5,409		70,696
Robert Half International, Inc.		10,217		290,469
Rollins, Inc.		7,212		146,115
Steelcase, Inc., Class A		8,478		74,437
Stericycle, Inc. *		5,409		469,339
Sykes Enterprises, Inc. *		4,207		57,972
Tetra Tech, Inc. *		3,606		88,563
The Advisory Board Co. *		1,202		97,290
The Brink’s Co.		3,606		91,051
The Corporate Executive Board Co.		3,606		149,433
The Dun & Bradstreet Corp.		3,606		298,036
The Geo Group, Inc. *		4,808		84,669
Towers Watson & Co., Class A		3,005		192,140
TrueBlue, Inc. *		3,606		59,715
UniFirst Corp.		1,202		72,216
United Stationers, Inc.		3,606		104,718
Verisk Analytics, Inc., Class A *		9,616		418,296
Waste Connections, Inc.		7,943		258,306
Waste Management, Inc.		26,444		925,011

				9,264,000

Consumer Durables & Apparel 1.4%
American Greetings Corp., Class A		4,207		63,105
Brunswick Corp.		6,010		143,699
Carter’s, Inc. *		4,207		204,334
Coach, Inc.		19,843		1,485,050
Columbia Sportswear Co.		1,202		60,016
Crocs, Inc. *		6,662		130,908
D.R. Horton, Inc.		19,232		275,787
Deckers Outdoor Corp. *		3,005		224,654
Fossil, Inc. *		3,606		439,860
Garmin Ltd. (a)		7,813		368,695
Hanesbrands, Inc. *		6,611		189,934
Harman International Industries, Inc.		4,808		236,217
Hasbro, Inc.		7,813		275,955
Helen of Troy Ltd. *		3,005		97,663
Iconix Brand Group, Inc. *		8,414		152,798
Jarden Corp.		6,611		233,170
Leggett & Platt, Inc.		10,818		244,811
Lennar Corp., Class A		10,217		238,873
Liz Claiborne, Inc. *		3,005		29,389
M.D.C Holdings, Inc.		3,005		73,863
Mattel, Inc.		24,641		799,354
Michael Kors Holdings Ltd. *		1,803		77,980
Mohawk Industries, Inc. *		3,606		229,017
Newell Rubbermaid, Inc.		19,232		351,946
NIKE, Inc., Class B		25,242		2,724,117
NVR, Inc. *		298		206,216

See financial notes 17

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Polaris Industries, Inc.		4,808		317,616
PulteGroup, Inc. *		22,838		201,431
PVH Corp.		4,207		357,637
Ralph Lauren Corp.		4,207		730,882
Steven Madden Ltd. *		3,005		129,756
Tempur-Pedic International, Inc. *		5,409		427,311
The Jones Group, Inc.		6,010		59,199
The Ryland Group, Inc.		5,409		98,065
The Warnaco Group, Inc. *		3,005		176,424
Toll Brothers, Inc. *		10,217		239,691
True Religion Apparel, Inc. *		3,005		79,242
Tupperware Brands Corp.		4,207		263,737
Under Armour, Inc., Class A *		3,005		268,166
Vera Bradley, Inc. *(a)		1,803		66,170
VF Corp.		6,010		877,760
Whirlpool Corp.		4,808		363,341
Wolverine World Wide, Inc.		3,606		137,533

				14,351,372

Consumer Services 2.4%
Apollo Group, Inc., Class A *		8,414		358,773
Bally Technologies, Inc. *		3,606		154,842
BJ’s Restaurants, Inc. *		1,803		89,519
Bob Evans Farms, Inc.		3,606		132,701
Boyd Gaming Corp. *		12,020		96,280
Bridgepoint Education, Inc. *(a)		3,716		90,522
Brinker International, Inc.		7,813		215,561
Buffalo Wild Wings, Inc. *		1,803		155,941
Carnival Corp.		28,247		855,602
Chipotle Mexican Grill, Inc. *		2,039		795,659
Choice Hotels International, Inc.		3,005		112,898
Coinstar, Inc. *(a)		1,876		109,239
Cracker Barrel Old Country Store, Inc.		1,803		100,373
Darden Restaurants, Inc.		9,015		459,675
DeVry, Inc.		4,207		149,475
Domino’s Pizza, Inc. *		4,864		187,069
Dunkin’ Brands Group, Inc. *		3,005		87,265
Gaylord Entertainment Co. *		2,404		71,543
H&R Block, Inc.		22,237		362,463
Hillenbrand, Inc.		4,808		110,440
Hyatt Hotels Corp., Class A *		2,404		99,550
International Game Technology		20,434		306,919
International Speedway Corp., Class A		3,606		90,727
ITT Educational Services, Inc. *(a)		2,404		165,011
Jack in the Box, Inc. *		4,808		114,671
K12, Inc. *		2,404		51,830
Las Vegas Sands Corp. *		25,479		1,416,887
Life Time Fitness, Inc. *		4,207		208,120
Marriott International, Inc., Class A		20,434		720,911
Marriott Vacations Worldwide Corp. *		2,005		49,985
Matthews International Corp., Class A		2,404		74,572
McDonald’s Corp.		67,913		6,742,403
MGM Resorts International *		20,674		284,681
Orient-Express Hotels Ltd., Class A *		6,010		59,439
Panera Bread Co., Class A *		1,803		278,708
Penn National Gaming, Inc. *		4,207		179,008
Regis Corp.		6,010		104,033
Royal Caribbean Cruises Ltd.		9,015		256,837
Scientific Games Corp., Class A *		7,212		75,798
Service Corp. International		16,828		190,829
Six Flags Entertainment Corp.		4,808		217,610
Sotheby’s		4,303		169,280
Starbucks Corp.		48,681		2,363,949
Starwood Hotels & Resorts Worldwide, Inc.		12,621		680,272
Strayer Education, Inc. (a)		1,202		123,680
Texas Roadhouse, Inc.		4,207		70,383
The Cheesecake Factory, Inc. *		4,808		142,509
The Wendy’s Co.		24,641		124,930
Vail Resorts, Inc.		2,404		101,208
Weight Watchers International, Inc. (a)		3,005		234,330
WMS Industries, Inc. *		3,005		66,200
Wyndham Worldwide Corp.		12,020		528,760
Wynn Resorts Ltd.		6,010		712,425
Yum! Brands, Inc.		30,651		2,030,322

				23,732,617

Diversified Financials 5.1%
Affiliated Managers Group, Inc. *		3,606		383,642
American Express Co.		67,913		3,591,919
Ameriprise Financial, Inc.		15,025		837,794
Bank of America Corp.		664,105		5,292,917
BlackRock, Inc.		6,611		1,315,589
Capital One Financial Corp.		30,651		1,550,941
Cash America International, Inc.		3,005		139,372
CBOE Holdings, Inc.		6,653		183,423
Citigroup, Inc.		192,320		6,408,102
CME Group, Inc.		4,207		1,217,884
Cohen & Steers, Inc. (a)		1,803		59,391
Credit Acceptance Corp. *		601		57,852
DFC Global Corp. *		2,404		43,056
Discover Financial Services		36,060		1,082,161
Duff & Phelps Corp., Class A		5,409		74,428
ETRADE Financial Corp.		16,227		156,266
Eaton Vance Corp.		7,813		225,093
Evercore Partners, Inc., Class A		1,202		32,682
EZCORP, Inc., Class A *		3,606		113,589
Federated Investors, Inc., Class B (a)		6,019		123,329
Financial Engines, Inc. *		3,005		69,265
First Cash Financial Services, Inc. *		3,005		126,991
Franklin Resources, Inc.		10,222		1,205,072
Greenhill & Co., Inc.		2,404		105,680
IntercontinentalExchange, Inc. *		4,808		663,312
Invesco Ltd.		30,651		759,225
Janus Capital Group, Inc.		12,020		106,016
Jefferies Group, Inc.		7,212		120,585
JPMorgan Chase & Co.		250,617		9,834,211
Knight Capital Group, Inc., Class A *		6,010		79,632
Legg Mason, Inc.		10,818		296,305
Leucadia National Corp.		13,222		376,695
LPL Investment Holdings, Inc. *		4,506		153,655
MarketAxess Holdings, Inc.		1,266		41,930
Moody’s Corp.		13,823		533,706
Morgan Stanley		87,746		1,626,811
MSCI, Inc., Class A *		8,414		297,687
Northern Trust Corp.		14,424		640,570
NYSE Euronext		17,429		518,861
PHH Corp. *		6,010		81,856
PICO Holdings, Inc. *		3,005		66,441
Raymond James Financial, Inc.		6,611		233,831
SEI Investments Co.		10,818		213,655

18 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SLM Corp.		34,257		539,890
State Street Corp.		33,656		1,421,293
Stifel Financial Corp. *		3,005		112,778
T. Rowe Price Group, Inc.		16,828		1,036,436
TD Ameritrade Holding Corp.		15,626		291,737
The Bank of New York Mellon Corp.		81,736		1,807,183
The Charles Schwab Corp. (b)		68,860		955,777
The Goldman Sachs Group, Inc.		28,247		3,252,360
The NASDAQ OMX Group, Inc. *		10,217		269,116
Waddell & Reed Financial, Inc., Class A		5,409		170,708
WisdomTree Investments, Inc. *		7,212		51,061
World Acceptance Corp. *		1,803		114,527

				51,064,288

Energy 11.2%
Alpha Natural Resources, Inc. *		15,183		281,797
Anadarko Petroleum Corp.		33,055		2,780,587
Apache Corp.		25,242		2,724,369
Apco Oil & Gas International, Inc. (a)		1,214		91,269
Arch Coal, Inc.		13,222		179,423
Atwood Oceanics, Inc. *		3,606		171,501
Baker Hughes, Inc.		28,848		1,450,477
Berry Petroleum Co., Class A		3,606		194,580
Bill Barrett Corp. *		4,207		122,971
Bristow Group, Inc.		3,005		141,866
Cabot Oil & Gas Corp.		14,424		503,109
Cameron International Corp. *		16,828		937,488
CARBO Ceramics, Inc. (a)		1,803		165,245
Carrizo Oil & Gas, Inc. *		1,546		43,551
Cheniere Energy, Inc. *		6,010		90,390
Chesapeake Energy Corp.		42,671		1,066,775
Chevron Corp.		132,220		14,427,846
Cimarex Energy Co.		6,010		484,827
Clayton Williams Energy, Inc. *		601		53,098
Clean Energy Fuels Corp. *(a)		4,207		79,050
Cloud Peak Energy, Inc. *		4,207		74,548
Cobalt International Energy, Inc. *		9,616		289,057
Comstock Resources, Inc. *		3,005		48,170
Concho Resources, Inc. *		7,212		770,530
ConocoPhillips		81,736		6,256,891
CONSOL Energy, Inc.		14,547		521,074
Contango Oil & Gas Co. *		601		38,212
Continental Resources, Inc. *		4,808		435,989
CVR Energy, Inc. *		4,989		135,751
Denbury Resources, Inc. *		25,892		515,510
Devon Energy Corp.		27,051		1,983,109
Diamond Offshore Drilling, Inc.		4,207		288,053
Dresser-Rand Group, Inc. *		6,010		315,645
Dril-Quip, Inc. *		3,005		210,320
El Paso Corp.		52,888		1,470,815
Energen Corp.		4,808		255,930
EOG Resources, Inc.		18,030		2,052,896
EQT Corp.		10,217		541,705
EXCO Resources, Inc. (a)		11,419		81,417
Exterran Holdings, Inc. *		4,235		60,984
Exxon Mobil Corp.		316,727		27,396,886
FMC Technologies, Inc. *		16,828		848,636
Forest Oil Corp. *		7,212		93,251
Gulfmark Offshore, Inc., Class A *		1,803		90,583
Gulfport Energy Corp. *		3,025		101,701
Halliburton Co.		60,100		2,199,059
Helix Energy Solutions Group, Inc. *		6,611		127,196
Helmerich & Payne, Inc.		6,611		405,254
Hess Corp.		20,434		1,326,575
HollyFrontier Corp.		14,424		470,655
Hornbeck Offshore Services, Inc. *		2,404		97,963
ION Geophysical Corp. *		11,419		81,760
Key Energy Services, Inc. *		11,419		194,808
Kinder Morgan, Inc. (a)		6,060		213,554
Kodiak Oil & Gas Corp. *		22,854		221,455
Lufkin Industries, Inc.		2,404		191,455
Magnum Hunter Resources Corp. *(a)		8,470		58,612
Marathon Oil Corp.		47,479		1,609,063
Marathon Petroleum Corp.		24,040		998,862
McDermott International, Inc. *		15,626		204,076
McMoRan Exploration Co. *		9,261		129,654
Murphy Oil Corp.		12,621		806,987
Nabors Industries Ltd. *		19,833		431,963
National-Oilwell Varco, Inc.		28,247		2,331,225
Newfield Exploration Co. *		9,015		324,540
Newpark Resources, Inc. *		6,040		47,535
Noble Corp. *		17,071		685,913
Noble Energy, Inc.		12,020		1,173,753
Northern Oil and Gas, Inc. *		4,207		99,748
Oasis Petroleum, Inc. *		4,808		154,193
Occidental Petroleum Corp.		53,489		5,582,647
Oceaneering International, Inc.		7,212		391,395
Oil States International, Inc. *		3,305		268,432
Patterson-UTI Energy, Inc.		10,818		210,086
Peabody Energy Corp.		18,631		649,849
Petroleum Development Corp. *		2,404		78,226
Pioneer Drilling Co. *		7,813		77,817
Pioneer Natural Resources Co.		7,813		856,617
Plains Exploration & Production Co. *		9,616		423,777
QEP Resources, Inc.		11,583		395,444
Range Resources Corp.		10,818		688,890
Rosetta Resources, Inc. *		4,207		214,725
Rowan Cos., Inc. *		8,414		310,224
RPC, Inc. (a)		2,214		35,446
SandRidge Energy, Inc. *		23,460		203,398
Schlumberger Ltd.		88,948		6,903,254
SEACOR Holdings, Inc. *		1,202		118,854
SemGroup Corp., Class A *		3,005		85,252
SM Energy Co.		4,207		331,175
Southern Union Co.		7,813		343,303
Southwestern Energy Co. *		22,838		755,024
Spectra Energy Corp.		42,671		1,339,016
Stone Energy Corp. *		4,563		145,788
Sunoco, Inc.		7,813		301,816
Superior Energy Services, Inc. *		10,517		308,569
Swift Energy Co. *		2,404		72,192
Targa Resources Corp.		2,404		106,810
Teekay Corp.		4,808		138,470
Tesco Corp. *		5,409		82,866
Tesoro Corp. *		9,616		255,112
The Williams Cos., Inc.		38,464		1,149,304
Tidewater, Inc.		3,606		214,557
Ultra Petroleum Corp. *		10,217		255,016
Unit Corp. *		3,005		142,948
Valero Energy Corp.		37,262		912,546
W&T Offshore, Inc.		2,404		60,701
Weatherford International Ltd. *		48,093		768,526

See financial notes 19

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Western Refining, Inc.		4,207		76,357
Whiting Petroleum Corp. *		8,414		493,397
World Fuel Services Corp.		4,207		175,264
WPX Energy, Inc. *		12,800		232,448

				111,609,278

Food & Staples Retailing 2.0%
Casey’s General Stores, Inc.		3,005		153,946
Costco Wholesale Corp.		28,848		2,482,659
CVS Caremark Corp.		89,093		4,018,094
Fresh Market, Inc. *		2,404		108,228
PriceSmart, Inc.		1,202		77,685
Rite Aid Corp. *		40,535		62,424
Ruddick Corp.		2,562		104,940
Safeway, Inc.		23,289		499,549
SUPERVALU, Inc. (a)		13,413		87,587
Sysco Corp.		39,065		1,149,292
The Andersons, Inc.		1,803		77,691
The Kroger Co.		36,511		868,597
United Natural Foods, Inc. *		3,005		136,788
Wal-Mart Stores, Inc.		116,594		6,888,373
Walgreen Co.		59,607		1,976,568
Whole Foods Market, Inc.		10,217		824,921

				19,517,342

Food, Beverage & Tobacco 5.4%
Altria Group, Inc.		138,230		4,160,723
Archer-Daniels-Midland Co.		40,663		1,268,686
B&G Foods, Inc.		3,606		83,948
Beam, Inc.		10,217		562,752
Brown-Forman Corp., Class B		7,212		588,860
Bunge Ltd.		9,616		647,349
Campbell Soup Co.		13,823		460,582
Coca-Cola Enterprises, Inc.		21,636		625,280
ConAgra Foods, Inc.		27,189		713,711
Constellation Brands, Inc., Class A *		13,222		288,768
Corn Products International, Inc.		5,409		310,206
Darling International, Inc. *		7,813		124,930
Dean Foods Co. *		11,419		139,997
Diamond Foods, Inc.		1,803		43,128
Dole Food Co., Inc. *		6,611		63,333
Dr. Pepper Snapple Group, Inc.		13,996		532,548
Flowers Foods, Inc.		9,616		184,050
Fresh Del Monte Produce, Inc.		3,005		67,492
General Mills, Inc.		40,868		1,565,653
Green Mountain Coffee Roasters, Inc. *		7,813		507,611
H.J. Heinz Co.		21,636		1,140,434
Hormel Foods Corp.		9,616		273,768
J&J Snack Foods Corp.		1,254		62,913
Kellogg Co.		16,851		882,150
Kraft Foods, Inc., Class A		108,180		4,118,413
Lancaster Colony Corp.		1,214		79,116
Lorillard, Inc.		9,015		1,181,686
McCormick & Co., Inc.		8,414		424,486
Mead Johnson Nutrition Co.		13,246		1,029,877
Molson Coors Brewing Co., Class B		10,217		448,935
Monster Beverage Corp. *		9,616		549,939
PepsiCo, Inc.		103,372		6,506,234
Philip Morris International, Inc.		115,993		9,687,735
Post Holdings, Inc. *		1,803		56,145
Ralcorp Holdings, Inc. *		3,606		269,008
Reynolds American, Inc.		22,838		957,597
Sanderson Farms, Inc.		1,803		88,708
Sara Lee Corp.		38,464		778,896
Smithfield Foods, Inc. *		10,217		239,384
Snyders-Lance, Inc.		3,606		80,955
The Boston Beer Co., Inc., Class A *(a)		601		56,807
The Coca-Cola Co.		137,629		9,614,762
The Hain Celestial Group, Inc. *		3,005		122,724
The Hershey Co.		10,217		620,172
The J.M. Smucker Co.		7,813		588,475
Tootsie Roll Industries, Inc. (a)		1,803		41,920
TreeHouse Foods, Inc. *		2,404		138,470
Tyson Foods, Inc., Class A		18,631		352,312
Universal Corp.		1,803		82,830
Vector Group Ltd. (a)		3,418		62,037

				53,476,495

Health Care Equipment & Services 4.3%
Accretive Health, Inc. *(a)		4,808		124,960
Aetna, Inc.		25,242		1,180,316
Air Methods Corp. *		1,202		108,456
Alere, Inc. *		5,409		137,551
Align Technology, Inc. *		5,409		138,524
Allscripts Healthcare Solutions, Inc. *		12,621		243,838
AMERIGROUP Corp. *		4,207		285,782
AmerisourceBergen Corp.		18,030		673,421
AmSurg Corp. *		4,207		109,929
ArthroCare Corp. *		1,202		31,372
athenahealth, Inc. *		2,404		169,891
Baxter International, Inc.		38,464		2,235,912
Becton, Dickinson & Co.		13,823		1,053,589
Boston Scientific Corp. *		100,367		624,283
Brookdale Senior Living, Inc. *		6,010		112,026
C.R. Bard, Inc.		6,010		562,656
Cardinal Health, Inc.		24,040		998,862
CareFusion Corp. *		15,025		387,795
Catalyst Health Solutions, Inc. *		3,005		186,370
Centene Corp. *		3,606		175,973
Cerner Corp. *		9,616		709,949
Chemed Corp.		1,803		111,461
CIGNA Corp.		19,360		853,970
Community Health Systems, Inc. *		6,611		166,862
CONMED Corp. *		4,207		125,537
Coventry Health Care, Inc. *		10,217		333,994
Covidien plc		33,055		1,727,124
Cyberonics, Inc. *		2,404		89,501
DaVita, Inc. *		6,611		572,182
DENTSPLY International, Inc.		9,616		371,947
Dexcom, Inc. *		5,409		58,363
Edwards Lifesciences Corp. *		7,813		571,365
Emeritus Corp. *		4,207		77,661
Express Scripts, Inc. *		29,449		1,570,515
Gen-Probe, Inc. *		3,005		205,181
Haemonetics Corp. *		1,803		120,855
HCA Holdings, Inc.		11,419		304,545
Health Management Associates, Inc., Class A *		17,429		128,626
Health Net, Inc. *		6,611		249,499

20 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
HEALTHSOUTH Corp. *		6,010		122,364
Henry Schein, Inc. *		6,010		444,860
Hill-Rom Holdings, Inc.		4,207		142,912
HMS Holdings Corp. *		7,212		232,371
Hologic, Inc. *		16,828		348,844
Humana, Inc.		11,419		994,595
IDEXX Laboratories, Inc. *		4,207		360,750
Insulet Corp. *		3,005		59,259
Integra LifeSciences Holdings Corp. *		1,817		57,417
Intuitive Surgical, Inc. *		2,697		1,379,839
Kindred Healthcare, Inc. *		6,010		61,843
Laboratory Corp. of America Holdings *		7,212		648,287
LifePoint Hospitals, Inc. *		3,606		140,526
Lincare Holdings, Inc.		6,611		177,571
Magellan Health Services, Inc. *		2,404		113,613
MAKO Surgical Corp. *(a)		4,808		187,993
Masimo Corp. *		3,606		78,611
McKesson Corp.		16,227		1,355,117
Medco Health Solutions, Inc. *		25,843		1,746,728
MEDNAX, Inc. *		3,005		223,542
Medtronic, Inc.		70,318		2,680,522
Meridian Bioscience, Inc.		4,207		75,810
Molina Healthcare, Inc. *		1,202		40,820
MWI Veterinary Supply, Inc. *		1,202		104,057
Neogen Corp. *		1,803		62,564
NxStage Medical, Inc. *		3,606		72,120
Omnicare, Inc.		7,813		274,861
Owens & Minor, Inc.		4,207		126,042
Patterson Cos., Inc.		6,611		211,023
PSS World Medical, Inc. *		4,207		101,936
Quality Systems, Inc.		3,606		154,589
Quest Diagnostics, Inc.		10,217		593,097
ResMed, Inc. *		9,616		281,749
Sirona Dental Systems, Inc. *		4,335		216,317
St. Jude Medical, Inc.		22,849		962,400
STERIS Corp.		3,606		113,156
Stryker Corp.		20,434		1,096,080
Teleflex, Inc.		2,404		142,485
Tenet Healthcare Corp. *		32,454		183,365
The Cooper Cos., Inc.		3,005		238,837
Thoratec Corp. *		3,606		124,407
UnitedHealth Group, Inc.		70,918		3,953,678
Universal American Corp.		5,409		61,338
Universal Health Services, Inc., Class B		6,010		268,106
Varian Medical Systems, Inc. *		8,414		549,014
VCA Antech, Inc. *		5,409		118,944
Volcano Corp. *		3,606		101,076
WellCare Health Plans, Inc. *		3,005		203,919
WellPoint, Inc.		23,439		1,538,302
West Pharmaceutical Services, Inc.		2,404		100,006
Wright Medical Group, Inc. *		3,606		59,715
Zimmer Holdings, Inc. *		12,621		766,726
Zoll Medical Corp. *		1,803		131,889

				42,476,635

Household & Personal Products 2.1%
Avon Products, Inc.		28,247		527,936
Church & Dwight Co., Inc.		9,616		459,068
Colgate-Palmolive Co.		30,050		2,800,059
Elizabeth Arden, Inc. *		2,404		89,309
Energizer Holdings, Inc. *		4,808		367,572
Herbalife Ltd.		8,414		557,091
Kimberly-Clark Corp.		25,843		1,883,438
Nu Skin Enterprises, Inc., Class A		4,207		242,996
Spectrum Brands Holdings, Inc. *		3,005		85,402
The Clorox Co.		9,015		609,504
The Estee Lauder Cos., Inc., Class A		15,626		914,746
The Procter & Gamble Co.		181,502		12,255,015

				20,792,136

Insurance 3.7%
ACE Ltd.		22,237		1,594,615
Aflac, Inc.		31,252		1,476,657
Alleghany Corp. *(a)		608		197,381
Allied World Assurance Co. Holdings AG		2,404		158,592
American Financial Group, Inc.		6,010		225,075
American International Group, Inc. *		27,646		807,816
American National Insurance Co.		1,202		86,664
AMERISAFE, Inc. *		1,202		27,117
AmTrust Financial Services, Inc.		1,803		48,699
Aon Corp.		21,657		1,013,764
Arch Capital Group Ltd. *		9,015		334,006
Argo Group International Holdings Ltd.		2,404		71,759
Arthur J. Gallagher & Co.		7,212		246,073
Aspen Insurance Holdings Ltd.		4,808		127,556
Assurant, Inc.		6,218		264,078
Assured Guaranty Ltd.		10,892		182,986
Axis Capital Holdings Ltd.		9,616		296,654
Berkshire Hathaway, Inc., Class B *		126,210		9,901,175
Brown & Brown, Inc.		7,813		184,621
Cincinnati Financial Corp.		10,217		359,332
CNA Financial Corp.		2,420		68,268
CNO Financial Group, Inc. *		14,426		107,041
Delphi Financial Group, Inc., Class A		3,606		160,683
Endurance Specialty Holdings Ltd.		3,606		138,687
Enstar Group Ltd. *		601		58,285
Erie Indemnity Co., Class A		2,404		182,968
Everest Re Group Ltd.		3,606		316,787
FBL Financial Group, Inc., Class A		601		20,416
Fidelity National Financial, Inc., Class A		15,626		269,705
First American Financial Corp.		7,212		111,065
Genworth Financial, Inc., Class A *		31,853		289,544
Greenlight Capital Re Ltd., Class A *		1,803		42,461
Hanover Insurance Group, Inc.		3,606		147,197
Hartford Financial Services Group, Inc.		28,937		599,285
HCC Insurance Holdings, Inc.		7,212		220,255
Infinity Property & Casualty Corp.		601		32,953
Kemper Corp.		3,606		103,204
Lincoln National Corp.		19,833		492,652
Loews Corp.		23,439		917,403
Markel Corp. *		601		245,178
Marsh & McLennan Cos., Inc.		34,858		1,087,570
MBIA, Inc. *(a)		14,424		155,491
Mercury General Corp.		2,404		103,084
MetLife, Inc.		54,691		2,108,338
Montpelier Re Holdings Ltd.		5,409		93,305

See financial notes 21

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Old Republic International Corp.		15,770		171,262
PartnerRe Ltd.		4,391		278,565
Platinum Underwriters Holdings Ltd.		3,005		106,858
Primerica, Inc.		3,005		75,185
Principal Financial Group, Inc.		20,434		565,204
ProAssurance Corp.		2,404		210,975
Protective Life Corp.		5,409		150,208
Prudential Financial, Inc.		31,853		1,948,130
Reinsurance Group of America, Inc.		4,808		277,277
RenaissanceRe Holdings Ltd.		3,606		259,488
RLI Corp.		1,202		84,212
Safety Insurance Group, Inc.		1,202		51,301
Selective Insurance Group, Inc.		3,606		61,951
StanCorp Financial Group, Inc.		3,005		119,479
The Allstate Corp.		31,853		1,001,140
The Chubb Corp.		18,202		1,237,008
The Navigators Group, Inc. *		1,208		56,788
The Progressive Corp.		42,070		901,139
The Travelers Cos., Inc.		28,247		1,637,479
Torchmark Corp.		6,819		330,312
Tower Group, Inc.		2,404		55,412
Transatlantic Holdings, Inc.		4,207		254,944
Unum Group		19,147		441,338
Validus Holdings Ltd.		4,808		146,596
W.R. Berkley Corp.		7,356		262,977
White Mountains Insurance Group Ltd.		601		298,228
XL Group plc		22,838		475,030

				37,134,931

Materials 4.1%
A. Schulman, Inc.		2,404		62,119
AbitibiBowater, Inc. *		5,409		82,758
Air Products & Chemicals, Inc.		13,222		1,193,153
Airgas, Inc.		4,808		395,843
Albemarle Corp.		6,010		399,785
Alcoa, Inc.		67,312		684,563
Allegheny Technologies, Inc.		6,611		290,025
Allied Nevada Gold Corp. *		5,409		186,124
AMCOL International Corp.		3,606		105,764
AptarGroup, Inc.		4,207		222,045
Ashland, Inc.		4,808		305,596
Balchem Corp.		2,404		65,509
Ball Corp.		12,020		481,762
Bemis Co., Inc.		7,212		226,240
Boise, Inc.		7,813		64,301
Buckeye Technologies, Inc.		3,005		102,651
Cabot Corp.		4,207		170,426
Calgon Carbon Corp. *		6,611		99,892
Carpenter Technology Corp.		3,005		154,157
Celanese Corp., Series A		10,818		514,612
CF Industries Holdings, Inc.		4,808		894,288
Chemtura Corp. *		7,212		111,930
Clearwater Paper Corp. *		1,803		61,861
Cliffs Natural Resources, Inc.		9,616		610,424
Coeur d’Alene Mines Corp. *		6,010		170,924
Commercial Metals Co.		7,813		103,835
Compass Minerals International, Inc.		2,404		173,208
Crown Holdings, Inc. *		10,818		399,941
Cytec Industries, Inc.		3,005		178,677
Domtar Corp.		2,404		230,471
E.I. du Pont de Nemours & Co.		61,302		3,117,207
Eagle Materials, Inc.		3,606		113,156
Eastman Chemical Co.		8,414		455,450
Ecolab, Inc.		18,036		1,082,160
FMC Corp.		4,808		475,848
Freeport-McMoRan Copper & Gold, Inc.		61,302		2,609,013
Georgia Gulf Corp. *		1,202		38,777
Graphic Packaging Holding Co. *		19,833		104,718
Greif, Inc., Class A		2,404		123,109
H.B. Fuller Co.		4,808		144,865
Haynes International, Inc.		1,202		76,075
Hecla Mining Co.		16,828		85,486
Huntsman Corp.		12,020		164,193
Innophos Holdings, Inc.		1,803		90,835
International Flavors & Fragrances, Inc.		4,808		274,200
International Paper Co.		27,045		950,632
Intrepid Potash, Inc. *		3,606		91,196
Kaiser Aluminum Corp.		2,404		116,209
KapStone Paper and Packaging Corp. *		3,025		60,803
Louisiana-Pacific Corp. *		9,015		73,653
LyondellBasell Industries N.V., Class A		23,439		1,012,096
Martin Marietta Materials, Inc. (a)		3,005		258,039
McEwen Mining, Inc. *(a)		10,217		53,435
MeadWestvaco Corp.		11,419		345,767
Minerals Technologies, Inc.		1,803		116,420
Molycorp, Inc. *(a)		3,606		89,068
Monsanto Co.		36,060		2,790,323
NewMarket Corp.		627		114,384
Newmont Mining Corp.		31,853		1,892,068
Nucor Corp.		19,232		837,169
Olin Corp.		6,010		126,390
OM Group, Inc. *		3,005		82,577
Owens-Illinois, Inc. *		11,419		272,914
Packaging Corp. of America		6,611		195,950
PolyOne Corp.		6,010		80,714
PPG Industries, Inc.		10,217		932,301
Praxair, Inc.		20,434		2,227,306
Reliance Steel & Aluminum Co.		5,409		290,571
Rock-Tenn Co., Class A		4,949		348,855
Rockwood Holdings, Inc. *		4,808		256,026
Royal Gold, Inc.		3,615		251,062
RPM International, Inc.		9,015		215,188
Schnitzer Steel Industries, Inc., Class A		1,803		81,423
Schweitzer-Mauduit International, Inc.		1,803		126,300
Sealed Air Corp.		13,222		259,548
Sensient Technologies Corp.		3,606		133,386
Sigma-Aldrich Corp.		7,212		517,750
Silgan Holdings, Inc.		3,106		132,067
Solutia, Inc.		8,414		236,518
Sonoco Products Co.		6,611		217,105
Southern Copper Corp.		11,540		371,132
Steel Dynamics, Inc.		14,424		213,619
Stillwater Mining Co. *		5,409		76,808
SunCoke Energy, Inc. *		4,112		58,925
Texas Industries, Inc.		2,404		81,327
The Dow Chemical Co.		77,529		2,597,997
The Mosaic Co.		18,631		1,075,940

22 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Scotts Miracle-Gro Co., Class A (a)		3,005		140,754
The Sherwin-Williams Co.		6,611		681,925
The Valspar Corp.		6,010		278,564
Titanium Metals Corp.		6,611		96,917
United States Steel Corp. (a)		9,616		261,748
Valhi, Inc.		601		34,467
Vulcan Materials Co.		7,212		321,367
W.R. Grace & Co. *		4,207		239,631
Walter Energy, Inc.		4,207		272,740
Westlake Chemical Corp.		1,803		108,595
Worthington Industries, Inc.		4,239		71,512

				40,467,157

Media 3.1%
AMC Networks, Inc., Class A *		4,207		190,956
Arbitron, Inc.		658		22,004
Cablevision Systems Corp., Class A		15,626		222,358
CBS Corp., Class B		41,469		1,239,923
Charter Communications, Inc., Class A *		3,005		190,547
Cinemark Holdings, Inc.		4,808		100,583
Clear Channel Outdoor Holdings, Inc., Class A *		6,010		79,512
Comcast Corp., Class A		180,901		5,314,871
DIRECTV, Class A *		49,883		2,310,581
Discovery Communications, Inc., Series A *		18,631		869,136
DISH Network Corp., Class A		14,424		420,748
DreamWorks Animation SKG, Inc., Class A *		4,808		82,986
Gannett Co., Inc.		16,828		249,727
John Wiley & Sons, Inc., Class A		3,005		136,427
Lamar Advertising Co., Class A *		4,207		137,569
Liberty Global, Inc., Series A *		16,828		844,429
Liberty Media Corp. - Liberty Capital, Series A *		7,813		702,311
Live Nation Entertainment, Inc. *		9,106		84,868
Madison Square Garden, Inc., Class A *		3,659		116,539
Meredith Corp. (a)		3,005		98,864
Morningstar, Inc.		1,803		107,946
National CineMedia, Inc.		4,235		67,379
News Corp., Class A		150,687		2,994,151
Omnicom Group, Inc.		19,232		950,830
Regal Entertainment Group, Class A (a)		5,409		74,752
Scripps Networks Interactive, Class A		5,409		244,487
Sirius XM Radio, Inc. *		260,233		588,127
The Interpublic Group of Cos., Inc.		31,853		373,317
The McGraw-Hill Cos., Inc.		21,035		978,969
The New York Times Co., Class A *		10,818		71,291
The Walt Disney Co.		112,439		4,721,314
The Washington Post Co., Class B (a)		601		236,734
Time Warner Cable, Inc.		21,636		1,716,600
Time Warner, Inc.		67,959		2,528,754
Valassis Communications, Inc. *		3,005		75,065
Viacom, Inc., Class B		36,060		1,717,177
Virgin Media, Inc.		19,232		484,646

				31,346,478

Pharmaceuticals, Biotechnology & Life Sciences 7.1%
Abbott Laboratories		102,170		5,783,844
Acorda Therapeutics, Inc. *		4,207		110,055
Aedea Biosciences, Inc. *		2,404		51,253
Agilent Technologies, Inc. *		22,838		996,194
Alexion Pharmaceuticals, Inc. *		12,020		1,006,435
Alkermes plc *		6,611		116,420
Allergan, Inc.		21,035		1,884,526
Amgen, Inc.		58,297		3,961,281
Amylin Pharmaceuticals, Inc. *		9,616		164,337
ARIAD Pharmaceuticals, Inc. *		12,020		172,367
Auxilium Pharmaceuticals, Inc. *		3,005		59,379
Bio-Rad Laboratories, Inc., Class A *		1,202		122,508
Biogen Idec, Inc. *		16,227		1,889,959
BioMarin Pharmaceutical, Inc. *		7,212		257,829
Bristol-Myers Squibb Co.		112,988		3,634,824
Bruker Corp. *		5,409		86,706
Celgene Corp. *		30,651		2,247,485
Cepheid, Inc. *		4,808		194,195
Charles River Laboratories International, Inc. *		4,207		147,792
Covance, Inc. *		4,207		200,800
Cubist Pharmaceuticals, Inc. *		5,409		231,830
Dendreon Corp. *(a)		10,217		115,043
Eli Lilly & Co.		64,908		2,546,990
Endo Pharmaceuticals Holdings, Inc. *		7,813		289,628
Forest Laboratories, Inc. *		18,030		586,336
Gilead Sciences, Inc. *		51,085		2,324,367
Halozyme Therapeutics, Inc. *		6,010		69,175
Hospira, Inc. *		10,818		385,337
Human Genome Sciences, Inc. *		12,621		99,453
Idenix Pharmaceuticals, Inc. *		5,409		63,664
Illumina, Inc. *		8,414		431,217
ImmunoGen, Inc. *		5,409		74,482
Impax Laboratories, Inc. *		5,413		126,393
Incyte Corp. *(a)		8,414		142,701
InterMune, Inc. *		5,409		72,589
Ironwood Pharmaceuticals, Inc. *		6,166		82,563
Jazz Pharmaceuticals plc *		3,040		159,509
Johnson & Johnson		180,300		11,733,924
Life Technologies Corp. *		12,020		568,666
Luminex Corp. *		3,005		67,522
Medicis Pharmaceutical Corp., Class A		4,207		146,993
Medivation, Inc. *		2,404		157,486
Merck & Co., Inc.		201,936		7,707,897
Mettler-Toledo International, Inc. *		2,404		433,393
Micromet, Inc. *		6,010		66,050
Mylan, Inc. *		27,646		648,022
Myriad Genetics, Inc. *		6,010		145,442
Nektar Therapeutics *(a)		9,015		64,638
Onyx Pharmaceuticals, Inc. *		4,207		161,212
Opko Health, Inc. *(a)		10,818		53,441
Par Pharmaceutical Cos., Inc. *		4,207		156,122
PAREXEL International Corp. *		3,685		90,209
PDL BioPharma, Inc.		12,020		76,688
PerkinElmer, Inc.		8,414		227,178
Perrigo Co.		6,010		619,391
Pfizer, Inc.		505,441		10,664,805
Pharmacyclics, Inc. *		3,606		90,835
Questcor Pharmaceuticals, Inc. *		4,207		163,652

See financial notes 23

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Regeneron Pharmaceuticals, Inc. *		5,409		566,809
Salix Pharmaceuticals Ltd. *		4,808		237,131
Seattle Genetics, Inc. *(a)		10,217		188,606
Spectrum Pharmaceuticals, Inc. *		4,207		59,697
Techne Corp.		2,404		172,102
The Medicines Co. *		5,409		115,915
Theravance, Inc. *		4,933		92,247
Thermo Fisher Scientific, Inc. *		26,444		1,497,259
United Therapeutics Corp. *		3,606		172,114
Vertex Pharmaceuticals, Inc. *		13,823		537,991
ViroPharma, Inc. *		4,864		155,940
VIVUS, Inc. *		6,010		135,225
Warner Chilcott plc, Class A *		12,426		207,887
Waters Corp. *		6,010		538,496
Watson Pharmaceuticals, Inc. *		9,015		525,755

				70,136,206

Real Estate 3.3%
Acadia Realty Trust		2,404		50,941
Alexander’s, Inc.		199		75,511
Alexandria Real Estate Equities, Inc.		4,207		301,600
American Campus Communities, Inc.		4,207		173,118
American Capital Agency Corp.		14,424		442,961
American Tower Corp.		26,444		1,654,866
Annaly Capital Management, Inc.		65,509		1,088,760
Anworth Mortgage Asset Corp.		13,222		85,943
Apartment Investment & Management Co., Class A		8,414		209,004
AvalonBay Communities, Inc.		6,611		857,248
BioMed Realty Trust, Inc.		10,217		188,197
Boston Properties, Inc.		9,616		976,505
Brandywine Realty Trust		10,217		110,446
BRE Properties, Inc.		4,808		232,851
Brookfield Office Properties, Inc.		17,429		304,136
Camden Property Trust		4,808		298,096
Capstead Mortgage Corp.		7,212		95,920
CBL & Associates Properties, Inc.		11,419		201,317
CBRE Group, Inc. *		19,243		352,724
Chimera Investment Corp.		64,998		199,544
Colonial Properties Trust		6,010		123,325
Colony Financial, Inc.		4,808		80,197
CommonWealth REIT		6,010		111,786
Corporate Office Properties Trust		3,606		88,419
Cousins Properties, Inc.		13,946		103,061
CubeSmart		7,212		81,351
CYS Investments, Inc.		9,015		122,334
DCT Industrial Trust, Inc.		20,434		115,656
DDR Corp.		16,227		229,288
DiamondRock Hospitality Co.		12,659		126,084
Digital Realty Trust, Inc.		7,212		522,870
Douglas Emmett, Inc.		8,414		177,283
Duke Realty Corp.		15,025		208,547
DuPont Fabros Technology, Inc.		4,207		96,340
EastGroup Properties, Inc.		2,404		115,849
Education Realty Trust, Inc.		7,212		74,139
Entertainment Properties Trust		3,005		136,728
Equity Lifestyle Properties, Inc.		3,005		199,863
Equity One, Inc.		6,010		114,310
Equity Residential		20,434		1,162,490
Essex Property Trust, Inc.		2,404		336,536
Extra Space Storage, Inc.		6,611		174,332
Federal Realty Investment Trust		4,207		401,137
First Industrial Realty Trust, Inc. *		6,010		71,038
Forest City Enterprises, Inc., Class A *		10,818		158,159
Franklin Street Properties Corp.		5,409		55,767
General Growth Properties, Inc.		25,843		420,466
Glimcher Realty Trust		7,212		71,399
Government Properties Income Trust		3,014		70,317
Hatteras Financial Corp.		5,409		154,048
HCP, Inc.		27,646		1,092,017
Health Care REIT, Inc.		12,621		687,087
Healthcare Realty Trust, Inc.		4,808		99,381
Highwoods Properties, Inc.		4,808		153,856
Home Properties, Inc.		3,606		207,814
Hospitality Properties Trust		8,414		208,078
Host Hotels & Resorts, Inc.		44,474		701,800
Invesco Mortgage Capital		7,212		123,542
Jones Lang LaSalle, Inc.		3,005		244,637
Kilroy Realty Corp.		3,606		158,087
Kimco Realty Corp.		25,843		474,994
LaSalle Hotel Properties		5,409		144,312
Lexington Realty Trust		13,222		114,370
Liberty Property Trust		7,212		244,631
LTC Properties, Inc.		3,005		92,734
Mack-Cali Realty Corp.		4,808		137,509
Medical Properties Trust, Inc.		7,813		75,942
MFA Financial, Inc.		23,439		171,105
Mid-America Apartment Communities, Inc.		2,404		149,937
National Health Investors, Inc.		3,005		141,626
National Retail Properties, Inc.		6,010		160,167
OMEGA Healthcare Investors, Inc.		6,010		122,424
Pebblebrook Hotel Trust		6,010		128,794
Pennsylvania REIT		4,207		56,458
Piedmont Office Realty Trust, Inc., Class A		12,020		211,792
Plum Creek Timber Co., Inc.		10,818		423,633
Post Properties, Inc.		3,005		131,228
Potlatch Corp.		3,005		92,614
ProLogis, Inc.		31,252		1,051,942
PS Business Parks, Inc.		1,803		112,543
Public Storage		9,616		1,289,217
Rayonier, Inc.		8,414		374,591
Realty Income Corp.		9,015		332,563
Redwood Trust, Inc.		6,611		76,489
Regency Centers Corp.		6,010		257,168
RLJ Lodging Trust		3,606		63,177
Rouse Properties, Inc. *		941		13,767
Saul Centers, Inc.		1,830		69,284
Senior Housing Properties Trust		10,818		231,505
Simon Property Group, Inc.		19,232		2,605,551
SL Green Realty Corp.		6,010		457,060
Sovran Self Storage, Inc.		3,005		142,768
Starwood Property Trust, Inc.		4,808		94,910
Strategic Hotels & Resorts, Inc. *		12,020		74,885
Sun Communities, Inc.		1,815		75,123
Sunstone Hotel Investors, Inc. *		12,020		107,940
Tanger Factory Outlet Centers, Inc.		4,808		140,778
Taubman Centers, Inc.		3,606		249,066
The Howard Hughes Corp. *		2,407		133,709
The Macerich Co.		9,015		486,720
The St. Joe Co. *		6,611		106,503
Two Harbors Investment Corp.		9,015		92,674

24 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
UDR, Inc.		15,626		390,963
Ventas, Inc.		19,232		1,075,453
Vornado Realty Trust		12,020		982,395
Washington REIT		3,606		106,810
Weingarten Realty Investors		8,414		209,509
Weyerhaeuser Co.		34,858		728,184

				32,686,623

Retailing 4.0%
Aaron’s, Inc.		5,409		151,127
Abercrombie & Fitch Co., Class A		5,409		247,678
Advance Auto Parts, Inc.		5,409		461,766
Aeropostale, Inc. *		5,409		97,200
Amazon.com, Inc. *		23,439		4,211,754
American Eagle Outfitters, Inc.		12,020		174,771
Ann, Inc. *		3,723		88,942
Ascena Retail Group, Inc. *		4,808		185,589
AutoNation, Inc. *		2,404		81,928
AutoZone, Inc. *		2,003		750,083
Bed Bath & Beyond, Inc. *		16,227		969,401
Best Buy Co., Inc.		18,631		460,186
Big Lots, Inc. *		5,409		237,185
Blue Nile, Inc. *(a)		1,803		64,277
Cabela’s, Inc. *		3,287		116,623
CarMax, Inc. *		15,025		461,117
Chico’s FAS, Inc.		12,020		180,420
Collective Brands, Inc. *		3,005		54,150
Dick’s Sporting Goods, Inc.		5,409		242,107
Dillard’s, Inc., Class A		2,404		146,981
Dollar General Corp. *		8,414		353,893
Dollar Tree, Inc. *		8,414		744,723
DSW, Inc., Class A		2,404		135,586
Expedia, Inc.		6,879		234,230
Express, Inc. *		2,602		61,928
Family Dollar Stores, Inc.		8,414		454,272
Foot Locker, Inc.		10,818		315,561
GameStop Corp., Class A (a)		10,217		232,743
Genesco, Inc. *		1,803		122,856
Genuine Parts Co.		10,217		640,402
GNC Holdings, Inc., Class A *		4,207		136,181
Group 1 Automotive, Inc.		1,803		92,981
Groupon, Inc. *(a)		3,005		59,244
Guess?, Inc.		5,419		187,768
Hibbett Sports, Inc. *		2,404		117,676
HSN, Inc.		3,606		133,999
J.C. Penney Co., Inc.		10,818		428,393
Jos. A. Bank Clothiers, Inc. *		2,404		123,782
Kohl’s Corp.		17,429		865,873
Liberty Interactive Corp., Series A *		39,065		732,859
Limited Brands, Inc.		18,030		838,936
LKQ Corp. *		9,616		306,366
Lowe’s Cos., Inc.		84,741		2,404,950
Macy’s, Inc.		28,247		1,072,539
Monro Muffler Brake, Inc.		1,406		64,493
Netflix, Inc. *		3,606		399,292
Nordstrom, Inc.		11,419		612,287
O’Reilly Automotive, Inc. *		9,015		779,797
Office Depot, Inc. *		18,755		61,892
Penske Automotive Group, Inc.		2,758		66,413
PetSmart, Inc.		8,414		468,996
Pier 1 Imports, Inc. *		7,212		123,830
Pool Corp.		3,606		131,258
Priceline.com, Inc. *		3,205		2,009,599
RadioShack Corp. (a)		6,611		46,872
Rent-A-Center, Inc.		5,409		191,587
Ross Stores, Inc.		16,828		897,437
Saks, Inc. *		10,217		119,028
Sally Beauty Holdings, Inc. *		7,298		173,692
Sears Holdings Corp. *(a)		3,606		251,194
Select Comfort Corp. *		4,207		124,485
Shutterfly, Inc. *		2,420		66,211
Signet Jewelers Ltd.		5,409		253,682
Staples, Inc.		45,075		660,800
Target Corp.		40,868		2,316,807
The Buckle, Inc. (a)		3,005		134,985
The Children’s Place Retail Stores, Inc. *		2,404		122,003
The Finish Line, Inc., Class A		2,462		56,601
The Gap, Inc.		17,700		413,472
The Home Depot, Inc.		101,569		4,831,637
The Men’s Wearhouse, Inc.		3,606		139,660
The TJX Cos., Inc.		50,484		1,848,219
Tiffany & Co.		8,414		546,994
Tractor Supply Co.		4,808		410,940
TripAdvisor, Inc. *		6,879		221,710
Ulta Salon, Cosmetics & Fragrance, Inc. *		3,606		300,163
Urban Outfitters, Inc. *		9,015		255,936
Vitamin Shoppe, Inc. *		1,266		53,716
Williams-Sonoma, Inc.		6,611		255,185

				39,591,899

Semiconductors & Semiconductor Equipment 2.6%
Advanced Micro Devices, Inc. *		42,070		309,214
Altera Corp.		21,636		831,904
Analog Devices, Inc.		19,833		777,652
Applied Materials, Inc.		88,948		1,088,723
Atmel Corp. *		30,050		303,805
ATMI, Inc. *		2,404		52,960
Broadcom Corp., Class A *		31,252		1,161,012
Brooks Automation, Inc.		4,808		57,456
Cabot Microelectronics Corp. *		1,803		90,601
Cavium Networks, Inc. *		4,808		171,790
CEVA, Inc. *		1,803		44,444
Cirrus Logic, Inc. *		4,909		115,754
Cree, Inc. *		8,424		255,163
Cymer, Inc. *		2,404		110,536
Cypress Semiconductor Corp. *		11,419		196,978
Diodes, Inc. *		2,404		59,715
Entegris, Inc. *		9,015		81,496
Fairchild Semiconductor International, Inc. *		12,621		184,140
First Solar, Inc. *(a)		4,207		135,886
GT Advanced Technologies, Inc. *		8,414		72,024
Hittite Microwave Corp. *		2,404		137,461
Integrated Device Technology, Inc. *		16,227		112,128
Intel Corp.		336,560		9,046,733
International Rectifier Corp. *		4,808		107,940
Intersil Corp., Class A		7,813		88,443
KLA-Tencor Corp.		11,419		552,680
Kulicke & Soffa Industries, Inc. *		5,409		60,905
Lam Research Corp. *		8,414		350,864

See financial notes 25

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Lattice Semiconductor Corp. *		7,813		51,488
Linear Technology Corp.		14,424		482,915
LSI Corp. *		42,671		366,971
Marvell Technology Group Ltd. *		34,858		522,870
Maxim Integrated Products, Inc.		20,434		569,904
MEMC Electronic Materials, Inc. *		12,020		47,239
Microchip Technology, Inc.		12,621		455,239
Micron Technology, Inc. *		64,398		550,603
Microsemi Corp. *		6,611		138,302
MKS Instruments, Inc.		3,606		108,000
Novellus Systems, Inc. *		6,010		279,345
NVIDIA Corp. *		39,065		591,835
ON Semiconductor Corp. *		28,848		261,651
PMC-Sierra, Inc. *		14,424		99,093
Power Integrations, Inc.		3,005		112,086
RF Micro Devices, Inc. *		23,439		111,804
Semtech Corp. *		4,808		138,038
Silicon Laboratories, Inc. *		3,005		134,624
Skyworks Solutions, Inc. *		12,621		340,388
Teradyne, Inc. *		12,020		197,368
Tessera Technologies, Inc. *		3,606		60,581
Texas Instruments, Inc.		77,529		2,585,592
TriQuint Semiconductor, Inc. *		10,818		69,668
Volterra Semiconductor Corp. *		3,005		92,344
Xilinx, Inc.		18,631		688,043

				25,614,398

Software & Services 9.3%
Accenture plc, Class A		46,277		2,755,333
ACI Worldwide, Inc. *		1,803		68,117
Activision Blizzard, Inc.		27,646		330,370
Acxiom Corp. *		6,010		84,380
Adobe Systems, Inc. *		34,858		1,146,480
Advent Software, Inc. *		2,404		61,855
Akamai Technologies, Inc. *		12,020		432,720
Alliance Data Systems Corp. *		3,606		437,624
ANSYS, Inc. *		6,611		417,683
AOL, Inc. *		6,669		119,775
Ariba, Inc. *		6,611		208,048
Aspen Technology, Inc. *		5,409		111,209
Autodesk, Inc. *		15,025		568,696
Automatic Data Processing, Inc.		33,055		1,795,548
Bankrate, Inc. *		3,025		72,116
Blackbaud, Inc.		4,207		132,731
BMC Software, Inc. *		12,020		450,029
Bottomline Technologies, Inc. *		3,005		84,441
Broadridge Financial Solutions, Inc.		8,435		205,308
BroadSoft, Inc. *(a)		1,803		65,575
CA, Inc.		27,646		747,271
CACI International, Inc., Class A *		1,803		106,629
Cadence Design Systems, Inc. *		17,429		205,139
Cardtronics, Inc. *		3,005		79,903
Citrix Systems, Inc. *		12,621		943,294
Cognizant Technology Solutions Corp., Class A *		20,434		1,449,792
CommVault Systems, Inc. *		3,005		154,968
Computer Sciences Corp.		10,217		324,492
Compuware Corp. *		15,626		140,790
Concur Technologies, Inc. *		3,005		177,145
Convergys Corp. *		8,414		108,372
CoreLogic, Inc. *		8,414		129,407
DealerTrack Holdings, Inc. *		2,404		66,951
DST Systems, Inc.		2,404		127,412
EarthLink, Inc.		11,419		85,300
eBay, Inc. *		72,721		2,599,049
Ebix, Inc. (a)		1,803		42,010
Electronic Arts, Inc. *		21,636		353,316
Equinix, Inc. *		3,606		505,489
Euronet Worldwide, Inc. *		3,606		69,560
FactSet Research Systems, Inc.		3,005		262,637
Fair Isaac Corp.		4,207		170,299
Fidelity National Information Services, Inc.		16,828		533,952
Fiserv, Inc. *		9,616		637,541
FleetCor Technologies, Inc. *		2,404		89,020
Fortinet, Inc. *		8,492		229,709
Gartner, Inc. *		6,010		241,963
Genpact Ltd. *		7,813		125,164
Global Payments, Inc.		5,409		279,213
Google, Inc., Class A *		16,414		10,147,956
Heartland Payment Systems, Inc.		4,455		126,166
IAC/InterActiveCorp		5,409		246,650
Informatica Corp. *		6,611		324,997
International Business Machines Corp.		77,565		15,259,362
Intuit, Inc.		18,030		1,042,855
j2 Global, Inc.		4,808		142,173
Jack Henry & Associates, Inc.		6,010		202,777
JDA Software Group, Inc. *		3,606		90,366
Lender Processing Services, Inc.		6,010		132,460
LinkedIn Corp., Class A *		1,202		104,418
Liquidity Services, Inc. *		1,803		77,980
LogMeIn, Inc. *		1,803		66,459
Manhattan Associates, Inc. *		1,803		83,587
ManTech International Corp., Class A		1,803		60,473
MasterCard, Inc., Class A		6,711		2,818,620
MAXIMUS, Inc.		3,606		150,406
Mentor Graphics Corp. *		5,409		82,000
MICROS Systems, Inc., Class A *		5,409		280,889
Microsoft Corp.		492,820		15,642,107
MicroStrategy, Inc., Class A *		1,202		162,979
Monster Worldwide, Inc. *		9,075		62,981
NetSuite, Inc. *		2,404		114,671
NeuStar, Inc., Class A *		4,808		168,520
NIC, Inc.		3,606		43,597
Nuance Communications, Inc. *		14,424		373,870
OpenTable, Inc. *(a)		1,202		58,297
Oracle Corp.		255,425		7,476,290
Parametric Technology Corp. *		7,212		192,560
Paychex, Inc.		21,636		677,207
Pegasystems, Inc. (a)		3,005		84,380
Progress Software Corp. *		6,611		153,309
QLIK Technologies, Inc. *		4,207		127,346
Quest Software, Inc. *		5,409		108,288
Rackspace Hosting, Inc. *		7,212		376,755
RealPage, Inc. *		3,890		77,139
Red Hat, Inc. *		12,621		624,235
Rovi Corp. *		6,611		234,558
SAIC, Inc. *		25,885		316,315
Salesforce.com, Inc. *		8,038		1,150,720
Sapient Corp.		12,020		150,130
Solarwinds, Inc. *		3,005		111,966
Solera Holdings, Inc.		4,207		201,936

26 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Sourcefire, Inc. *		1,803		81,171
Symantec Corp. *		52,888		943,522
Synchronoss Technologies, Inc. *		2,404		80,438
Synopsys, Inc. *		9,015		274,687
Syntel, Inc.		2,404		123,085
Take-Two Interactive Software, Inc. *		6,010		92,855
Taleo Corp., Class A *		4,207		192,765
TeleTech Holdings, Inc. *		5,409		82,595
Teradata Corp. *		11,419		759,934
The Ultimate Software Group, Inc. *		1,803		125,886
TIBCO Software, Inc. *		12,020		348,219
TiVo, Inc. *		9,015		101,419
Total System Services, Inc.		13,222		289,297
Tyler Technologies, Inc. *		2,404		90,799
Unisys Corp. *		3,005		56,133
ValueClick, Inc. *		5,409		112,507
VeriFone Systems, Inc. *		7,212		345,383
VeriSign, Inc.		10,818		399,725
VirnetX Holding Corp. *(a)		4,207		90,829
Visa, Inc., Class A		31,853		3,706,734
VistaPrint N.V. *(a)		3,005		122,243
VMware, Inc., Class A *		4,808		475,463
WebMD Health Corp. *		3,606		89,609
Websense, Inc. *		5,409		97,416
Western Union Co.		40,868		713,964
Wright Express Corp. *		3,005		185,949
Yahoo!, Inc. *		81,802		1,213,124
Zynga, Inc. *(a)		6,010		79,152

				91,939,478

Technology Hardware & Equipment 7.6%
3D Systems Corp. *(a)		2,404		53,850
Acme Packet, Inc. *		3,606		109,911
ADTRAN, Inc.		4,207		148,297
Amphenol Corp., Class A		11,419		639,007
Anixter International, Inc. *		2,404		167,174
Apple, Inc. *		61,076		33,130,065
Arris Group, Inc. *		9,015		102,681
Arrow Electronics, Inc. *		8,414		337,822
Aruba Networks, Inc. *		6,611		142,732
Avnet, Inc. *		10,217		365,156
AVX Corp.		8,414		111,401
Benchmark Electronics, Inc. *		6,010		98,684
Brightpoint, Inc. *		4,808		42,310
Brocade Communications Systems, Inc. *		27,045		156,320
Ciena Corp. *		6,010		89,669
Cisco Systems, Inc.		353,989		7,037,301
Cognex Corp.		3,005		128,133
Coherent, Inc. *		1,803		100,030
Comtech Telecommunications Corp.		3,005		96,971
Comverse Technology, Inc. *		12,020		77,168
Corning, Inc.		103,973		1,355,808
Dell, Inc. *		108,182		1,871,549
Diebold, Inc.		4,207		164,620
Dolby Laboratories, Inc., Class A *		3,606		137,280
EchoStar Corp., Class A *		5,409		162,108
Electronics for Imaging, Inc. *		3,005		47,960
EMC Corp. *		134,624		3,727,739
Emulex Corp. *		9,015		94,297
F5 Networks, Inc. *		5,409		675,909
FARO Technologies, Inc. *		1,803		99,994
FEI Co. *		3,606		160,539
Finisar Corp. *		6,010		121,943
FLIR Systems, Inc.		10,217		267,379
Fusion-io, Inc. *		2,404		65,629
Harris Corp.		8,414		367,103
Hewlett-Packard Co.		131,018		3,316,066
Infinera Corp. *		12,020		95,679
Ingram Micro, Inc., Class A *		10,217		195,451
Insight Enterprises, Inc. *		3,005		62,805
InterDigital, Inc.		3,005		113,739
Intermec, Inc. *		7,212		53,946
IPG Photonics Corp. *		3,005		158,153
Itron, Inc. *		2,404		106,786
Jabil Circuit, Inc.		13,222		341,524
JDS Uniphase Corp. *		16,227		211,600
Juniper Networks, Inc. *		35,459		807,047
Lexmark International, Inc., Class A		4,808		177,319
Littelfuse, Inc.		1,202		63,622
Loral Space & Communications, Inc. *		1,202		85,630
Molex, Inc.		9,616		260,594
Motorola Mobility Holdings, Inc. *		19,833		787,370
Motorola Solutions, Inc.		19,847		988,381
National Instruments Corp.		6,611		175,853
NCR Corp. *		10,217		221,913
NetApp, Inc. *		24,641		1,059,563
NETGEAR, Inc. *		2,404		90,318
OSI Systems, Inc. *		1,803		106,377
Plantronics, Inc.		3,606		134,504
Plexus Corp. *		3,606		125,128
Polycom, Inc. *		10,818		223,392
QLogic Corp. *		8,414		144,637
QUALCOMM, Inc.		110,584		6,876,113
Riverbed Technology, Inc. *		9,616		273,768
Rofin-Sinar Technologies, Inc. *		4,207		98,696
SanDisk Corp. *		16,227		802,587
Sanmina-SCI Corp. *		4,808		55,773
ScanSource, Inc. *		3,606		133,422
Seagate Technology plc		27,646		725,984
Sycamore Networks, Inc. *		3,606		66,603
Synaptics, Inc. *		2,404		88,347
SYNNEX Corp. *		3,606		148,675
TE Connectivity Ltd.		29,449		1,076,361
Tech Data Corp. *		3,005		160,707
Tellabs, Inc.		23,439		92,818
Trimble Navigation Ltd. *		7,813		392,916
Universal Display Corp. *		3,005		124,137
ViaSat, Inc. *		3,005		138,621
Vishay Intertechnology, Inc. *		14,424		176,838
Western Digital Corp. *		15,025		589,731
Xerox Corp.		91,953		756,773
Zebra Technologies Corp., Class A *		3,606		138,615

				75,479,421

Telecommunication Services 2.5%
AboveNet, Inc. *		1,803		125,417
AT&T, Inc.		392,453		12,005,137
CenturyLink, Inc.		40,868		1,644,937
Cincinnati Bell, Inc. *		13,222		49,582
Cogent Communications Group, Inc. *		3,005		55,352

See financial notes 27

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Consolidated Communications Holdings, Inc.		1,803		34,203
Crown Castle International Corp. *		16,227		840,721
Frontier Communications Corp. (a)		65,509		300,686
Leap Wireless International, Inc. *		7,212		75,293
Level 3 Communications, Inc. *		10,818		262,986
MetroPCS Communications, Inc. *		24,040		247,612
NII Holdings, Inc. *		11,419		204,172
Premiere Global Services, Inc. *		4,207		36,390
SBA Communications Corp., Class A *		7,813		366,664
Sprint Nextel Corp. *		198,330		489,875
Telephone & Data Systems, Inc.		6,517		164,685
tw telecom, Inc. *		10,217		220,687
United States Cellular Corp. *		2,404		103,709
Verizon Communications, Inc.		186,310		7,100,274
Windstream Corp.		39,065		471,905

				24,800,287

Transportation 1.8%
Alaska Air Group, Inc. *		2,404		164,842
Alexander & Baldwin, Inc.		3,005		139,462
Allegiant Travel Co. *		1,202		60,076
AMERCO		601		62,588
Atlas Air Worldwide Holdings, Inc. *		1,803		76,844
Avis Budget Group, Inc. *		6,282		81,038
C.H. Robinson Worldwide, Inc.		10,818		715,827
Con-way, Inc.		3,005		88,798
CSX Corp.		72,721		1,527,868
Delta Air Lines, Inc. *		52,888		518,831
Dollar Thrifty Automotive Group, Inc. *		1,803		136,866
Expeditors International of Washington, Inc.		13,823		603,097
FedEx Corp.		19,232		1,730,688
Forward Air Corp.		2,404		80,943
Genesee & Wyoming, Inc., Class A *		3,005		178,557
Hertz Global Holdings, Inc. *		13,222		189,075
Hub Group, Inc., Class A *		3,606		128,482
J.B. Hunt Transport Services, Inc.		6,010		307,772
JetBlue Airways Corp. *		18,631		95,018
Kansas City Southern *		7,823		544,324
Kirby Corp. *		3,606		247,444
Knight Transportation, Inc.		3,005		51,476
Landstar System, Inc.		3,606		194,940
Norfolk Southern Corp.		22,838		1,573,538
Old Dominion Freight Line, Inc. *		3,005		130,748
Ryder System, Inc.		3,606		191,947
SkyWest, Inc.		6,611		75,498
Southwest Airlines Co.		49,282		442,552
Swift Transportation Co. *		5,445		63,815
Union Pacific Corp.		32,454		3,578,053
United Continental Holdings, Inc. *		21,104		435,798
United Parcel Service, Inc., Class B		45,676		3,512,028
US Airways Group, Inc. *		9,015		66,801
UTI Worldwide, Inc.		7,212		116,402
Werner Enterprises, Inc.		4,808		116,450
Zipcar, Inc. *(a)		3,606		46,914

				18,275,400

Utilities 3.5%
AGL Resources, Inc.		7,309		291,410
ALLETE, Inc.		3,005		124,948
Alliant Energy Corp.		7,212		307,520
Ameren Corp.		15,197		487,368
American Electric Power Co., Inc.		31,252		1,175,388
American States Water Co.		1,202		44,306
American Water Works Co., Inc.		11,422		391,546
Aqua America, Inc.		9,015		200,223
Atmos Energy Corp.		6,010		184,687
Avista Corp.		4,808		118,758
Black Hills Corp.		2,428		79,735
California Water Service Group		4,808		92,362
Calpine Corp. *		24,641		377,254
CenterPoint Energy, Inc.		25,843		503,680
Central Vermont Public Service Corp.		1,202		42,358
CH Energy Group, Inc.		2,404		160,275
Chesapeake Utilities Corp.		601		24,683
Cleco Corp.		3,606		138,759
CMS Energy Corp.		16,227		347,420
Consolidated Edison, Inc.		18,631		1,082,461
Constellation Energy Group, Inc.		12,020		435,845
Dominion Resources, Inc.		38,464		1,941,278
DTE Energy Co.		10,818		584,064
Duke Energy Corp.		87,145		1,823,073
Edison International		19,232		805,244
El Paso Electric Co.		3,005		98,354
Entergy Corp.		12,621		840,937
Exelon Corp.		43,873		1,714,118
FirstEnergy Corp.		27,047		1,197,912
GenOn Energy, Inc. *		51,188		125,922
Great Plains Energy, Inc.		8,414		166,429
Hawaiian Electric Industries, Inc.		6,010		150,550
IDACORP, Inc.		3,606		145,971
Integrys Energy Group, Inc.		4,808		250,160
ITC Holdings Corp.		3,005		226,817
MDU Resources Group, Inc.		10,818		234,751
MGE Energy, Inc.		2,404		105,439
National Fuel Gas Co.		4,808		241,987
New Jersey Resources Corp.		3,005		140,303
NextEra Energy, Inc.		27,646		1,645,213
NiSource, Inc.		18,030		432,720
Northeast Utilities		11,419		409,942
Northwest Natural Gas Co.		2,404		110,031
NorthWestern Corp.		2,404		83,491
NRG Energy, Inc. *		17,429		298,036
NSTAR		6,611		310,056
NV Energy, Inc.		15,025		235,592
OGE Energy Corp.		6,010		315,405
ONEOK, Inc.		6,611		546,333
Otter Tail Corp.		4,207		89,357
Pepco Holdings, Inc.		14,424		280,403
PG&E Corp.		25,843		1,077,136
Piedmont Natural Gas Co., Inc.		4,207		136,307
Pinnacle West Capital Corp.		6,611		310,915
PNM Resources, Inc.		7,813		140,478
Portland General Electric Co.		4,808		118,469
PPL Corp.		38,464		1,098,147
Progress Energy, Inc.		19,232		1,020,835
Public Service Enterprise Group, Inc.		33,656		1,035,932
Questar Corp.		10,818		207,922

28 See financial notes

Schwab U.S. Broad Market ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
SCANA Corp.		7,212		324,540
Sempra Energy		15,025		890,081
South Jersey Industries, Inc.		2,404		125,008
Southwest Gas Corp.		3,005		128,163
TECO Energy, Inc.		12,621		226,547
The AES Corp. *		51,843		702,991
The Empire District Electric Co.		4,808		95,920
The Laclede Group, Inc.		601		24,695
The Southern Co.		56,157		2,481,578
UGI Corp.		7,212		203,739
UIL Holdings Corp.		2,404		84,741
Unisource Energy Corp.		2,404		88,443
Vectren Corp.		5,409		158,051
Westar Energy, Inc.		7,212		198,474
WGL Holdings, Inc.		3,606		147,233
Wisconsin Energy Corp.		15,626		532,534
Xcel Energy, Inc.		31,252		827,865

				34,547,618

Total Common Stock
(Cost $902,857,164)				991,351,544




Rights 0.0% of net assets

Real Estate 0.0%
Rouse Properties, Inc. *(c)(d)		936		—

Total Rights
(Cost $—)				—




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		329,682		329,682

Total Other Investment Company
(Cost $329,682)				329,682



End of Investments



Collateral Invested for Securities on Loan 0.3% of net assets


State Street Institutional U.S. Government Money Market Fund		3,044,237		3,044,237

Total Collateral Invested for Securities on Loan
(Cost $3,044,237)				3,044,237



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $903,440,906 and the unrealized appreciation and depreciation were $116,511,067 and ($28,270,747), respectively, with a net unrealized appreciation of $88,240,320.


*		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 in accordance with procedures approved by the Board of Trustees.
(d)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$991,351,544		$—		$—		$991,351,544
Other Investment Company(a)		329,682		—		—		329,682
Rights(a)		—		—		—		—

Total		$991,681,226		$—		$—		$991,681,226

Other Financial Instruments
Collateral Invested for Securities on Loan		$3,044,237		$—		$—		$3,044,237


(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

See financial notes 29

Schwab U.S. Broad Market ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $902,047,971) including securities on loan of $3,171,235		$990,725,449
Investment in affiliated issuer, at value (cost $1,138,875)		$955,777
Collateral invested for securities on loan		3,044,237
Receivables:
Dividends		2,055,972
Fund shares sold		1,661,098
Income from securities on loan		11,285
Foreign tax reclaims	+	1,058

Total assets		998,454,876

Liabilities

Collateral held for securities on loan		3,044,237
Payables:
Investments bought		2,247,237
Investment adviser fees	+	4,891

Total liabilities		5,296,365

Net Assets

Total assets		998,454,876
Total liabilities	−	5,296,365

Net assets		$993,158,511

Net Assets by Source
Capital received from investors		896,577,124
Net investment income not yet distributed		3,241,000
Net realized capital gains		4,734,157
Net unrealized capital gains		88,606,230

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$993,158,511

30,050,001

$33.05

30 See financial notes

Schwab U.S. Broad Market ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (including $7,566 from affiliated issuer and net of foreign withholding tax of $15,820)		$8,645,654
Interest		281
Securities on loan	+	49,087

Total investment income		8,695,022

Expenses

Investment adviser fees		238,519

Total expenses	−	238,519

Net investment income		8,456,503

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $1,452 gains from affiliated issuer)		(3,113,892	)
Net realized gains on in-kind redemptions	+	7,902,916

Net realized gains		4,789,024
Net unrealized gains on investments (including $89,414 gains from affiliated issuer)	+	95,004,899

Net realized and unrealized gains		99,793,923

Net increase in net assets resulting from operations		$108,250,426

See financial notes 31

Schwab U.S. Broad Market ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$8,456,503			$10,833,300
Net realized gains		4,789,024			18,489,482
Net unrealized gains	+	95,004,899			13,988,597

Net increase in net assets resulting from operations		108,250,426			43,311,379

Distributions to Shareholders

Distributions from net investment income		($7,484,370	)		($9,531,396	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

6,500,000

$199,224,752

17,450,000

$531,212,810

Shares Redeemed

(1,650,000

)

(49,483,204

)

(3,100,000

)

(94,832,267

)

Net transactions in fund shares

4,850,000

$149,741,548

14,350,000

$436,380,543

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

25,200,001

$742,650,907

10,850,001

$272,490,381

Total increase

4,850,000

250,507,604

14,350,000

470,160,526

End of period

30,050,001

$993,158,511

25,200,001

$742,650,907

Net investment income not yet distributed

$3,241,000

$2,268,867

32 See financial notes

Schwab U.S. Large-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.11			24.98			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.31			0.53			0.34
Net realized and unrealized gains (losses)		3.51			4.13			(0.12	)

Total from investment operations		3.82			4.66			0.22
Less distributions:
Distributions from net investment income		(0.30	)		(0.53	)		(0.24	)

Net asset value at end of period		32.63			29.11			24.98

Total return (%)		13.27	²		18.66			0.83	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.08	³		0.08			0.08	³
Gross operating expenses		0.08	³		0.08			0.08	³
Net investment income (loss)		2.18	³		1.88			2.01	³
Portfolio turnover rate⁴		2	²		5			3	²
Net assets, end of period ($ x 1,000)		823,886			615,781			273,503

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 33

Schwab U.S. Large-Cap ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		739,869,723		821,597,626
	0	.0%	Rights		—		—
	0	.1%	Other Investment Company		448,033		448,033


	99	.8%	Total Investments		740,317,756		822,045,659
	0	.1%	Collateral Invested for Securities on Loan		1,018,292		1,018,292
	0	.1%	Other Assets and Liabilities, Net				821,682


	100	.0%	Net Assets				823,885,633


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 0.9%
BorgWarner, Inc. *		6,622		548,566
Ford Motor Co.		232,128		2,873,745
General Motors Co. *		34,942		909,191
Gentex Corp.		8,716		206,133
Harley-Davidson, Inc.		14,201		661,483
Johnson Controls, Inc.		41,538		1,355,385
Lear Corp.		6,565		296,804
The Goodyear Tire & Rubber Co. *		14,665		188,592
TRW Automotive Holdings Corp. *		6,108		279,380
Visteon Corp. *		3,048		163,738

				7,483,017

Banks 2.7%
BB&T Corp.		42,459		1,241,926
BOK Financial Corp.		1,541		82,721
CIT Group, Inc. *		12,218		497,395
City National Corp.		3,032		142,504
Comerica, Inc.		12,120		359,843
Commerce Bancshares, Inc.		4,799		185,289
Cullen/Frost Bankers, Inc.		3,535		199,657
Fifth Third Bancorp		56,003		762,201
First Republic Bank *		4,691		140,683
Hudson City Bancorp, Inc.		30,346		207,870
Huntington Bancshares, Inc.		51,757		302,519
KeyCorp		57,571		466,325
M&T Bank Corp.		7,576		618,353
New York Community Bancorp, Inc.		26,887		349,800
People’s United Financial, Inc.		22,632		284,937
PNC Financial Services Group, Inc.		32,133		1,912,556
Regions Financial Corp.		75,770		436,435
SunTrust Banks, Inc.		32,408		744,088
TFS Financial Corp. *		5,360		50,116
U.S. Bancorp		116,850		3,435,390
Wells Fargo & Co.		305,525		9,559,877
Zions Bancorp		11,615		220,685

				22,201,170

Capital Goods 8.0%
3M Co.		39,390		3,450,564
Aecom Technology Corp. *		6,106		142,575
AGCO Corp. *		5,876		303,378
AMETEK, Inc.		9,732		463,243
Caterpillar, Inc.		35,855		4,095,000
Cooper Industries plc		10,104		618,567
Cummins, Inc.		10,692		1,289,134
Danaher Corp.		34,752		1,835,948
Deere & Co.		25,296		2,097,797
Donaldson Co., Inc.		4,199		308,333
Dover Corp.		11,192		716,512
Eaton Corp.		20,412		1,065,302
Emerson Electric Co.		45,450		2,286,589
Exelis, Inc.		11,218		117,901
Fastenal Co.		18,001		948,293
Flowserve Corp.		3,540		419,738
Fluor Corp.		10,605		641,390
Fortune Brands Home & Security, Inc. *		9,203		177,986
Foster Wheeler AG *		7,146		176,006
Gardner Denver, Inc.		3,043		208,993
General Dynamics Corp.		18,301		1,340,182
General Electric Co.		646,905		12,323,540
Goodrich Corp.		7,575		954,223
Honeywell International, Inc.		43,601		2,597,312
Hubbell, Inc., Class B		3,535		265,903
Illinois Tool Works, Inc.		25,361		1,412,354
Ingersoll-Rand plc		19,056		759,953
ITT Corp.		5,609		139,945
Jacobs Engineering Group, Inc. *		7,579		350,301
Joy Global, Inc.		6,565		570,892
KBR, Inc.		9,090		330,149
L-3 Communications Holdings, Inc.		6,566		461,261
Lincoln Electric Holdings, Inc.		5,050		233,259
Lockheed Martin Corp.		15,737		1,391,308
Masco Corp.		22,228		264,069
MSC Industrial Direct Co., Class A		2,620		208,054
Navistar International Corp. *		4,546		189,932
Northrop Grumman Corp.		14,861		888,836
Owens Corning, Inc. *		7,070		223,766
PACCAR, Inc.		22,222		1,022,434
Pall Corp.		7,070		448,591
Parker Hannifin Corp.		9,234		829,306
Pentair, Inc.		6,107		235,119
Precision Castparts Corp.		9,090		1,521,939
Quanta Services, Inc. *		12,672		264,845
Raytheon Co.		21,126		1,067,286
Rockwell Automation, Inc.		9,083		726,458
Rockwell Collins, Inc.		9,680		573,927
Roper Industries, Inc.		6,060		554,611
Spirit AeroSystems Holdings, Inc., Class A *		7,071		169,421
SPX Corp.		3,034		221,907

34 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Stanley Black & Decker, Inc.		10,127		777,754
Textron, Inc.		16,668		458,537
The Babcock & Wilcox Co. *		7,072		182,033
The Boeing Co.		40,898		3,065,305
The Timken Co.		4,601		241,092
TransDigm Group, Inc. *		3,030		359,934
Tyco International Ltd.		28,785		1,491,639
United Technologies Corp.		48,480		4,066,018
URS Corp. *		5,050		220,433
W.W. Grainger, Inc.		3,600		747,828
Xylem, Inc.		11,218		291,444

				65,806,349

Commercial & Professional Services 0.7%
Avery Dennison Corp.		6,184		188,612
Cintas Corp.		6,849		264,098
Copart, Inc. *		3,694		183,887
Corrections Corp. of America *		6,080		152,365
Covanta Holding Corp.		7,080		115,616
Equifax, Inc.		7,292		306,556
IHS, Inc., Class A *		3,030		286,547
Iron Mountain, Inc.		10,339		321,026
Manpower, Inc.		5,052		217,590
Nielsen Holdings N.V. *		4,056		119,611
Pitney Bowes, Inc.		10,925		198,070
R.R. Donnelley & Sons Co. (a)		10,735		148,358
Republic Services, Inc.		18,805		560,953
Robert Half International, Inc.		9,156		260,305
Stericycle, Inc. *		5,555		482,007
The Dun & Bradstreet Corp.		3,034		250,760
Towers Watson & Co., Class A		3,079		196,871
Verisk Analytics, Inc., Class A *		8,378		364,443
Waste Connections, Inc.		6,767		220,063
Waste Management, Inc.		24,463		855,716

				5,693,454

Consumer Durables & Apparel 1.2%
Coach, Inc.		17,696		1,324,369
D.R. Horton, Inc.		16,665		238,976
Fossil, Inc. *		3,253		396,801
Garmin Ltd.		7,505		354,161
Harman International Industries, Inc.		4,190		205,855
Hasbro, Inc.		7,604		268,573
Leggett & Platt, Inc.		9,094		205,797
Lennar Corp., Class A		9,595		224,331
Mattel, Inc.		20,987		680,818
Michael Kors Holdings Ltd. *		3,030		131,047
Mohawk Industries, Inc. *		3,535		224,508
Newell Rubbermaid, Inc.		17,277		316,169
NIKE, Inc., Class B		23,230		2,506,982
NVR, Inc. *		285		197,220
PVH Corp.		3,756		319,298
Ralph Lauren Corp.		4,040		701,869
Tempur-Pedic International, Inc. *		4,040		319,160
Toll Brothers, Inc. *		8,966		210,342
Tupperware Brands Corp.		3,694		231,577
VF Corp.		5,555		811,308
Whirlpool Corp.		4,581		346,186

				10,215,347

Consumer Services 2.2%
Apollo Group, Inc., Class A *		7,125		303,810
Carnival Corp.		24,486		741,681
Chipotle Mexican Grill, Inc. *		2,020		788,244
Darden Restaurants, Inc.		8,027		409,297
DeVry, Inc.		3,637		129,223
Dunkin’ Brands Group, Inc. *		3,030		87,991
H&R Block, Inc.		18,376		299,529
Hyatt Hotels Corp., Class A *		2,525		104,560
International Game Technology		18,180		273,064
Las Vegas Sands Corp. *		23,955		1,332,137
Marriott International, Inc., Class A		18,321		646,365
Marriott Vacations Worldwide Corp. *		1,812		45,173
McDonald’s Corp.		63,623		6,316,491
MGM Resorts International *		19,237		264,893
Penn National Gaming, Inc. *		4,225		179,774
Royal Caribbean Cruises Ltd.		8,084		230,313
Starbucks Corp.		45,955		2,231,575
Starwood Hotels & Resorts Worldwide, Inc.		11,769		634,349
Weight Watchers International, Inc. (a)		2,020		157,520
Wyndham Worldwide Corp.		9,727		427,891
Wynn Resorts Ltd.		5,555		658,490
Yum! Brands, Inc.		28,451		1,884,594

				18,146,964

Diversified Financials 5.5%
Affiliated Managers Group, Inc. *		3,089		328,639
American Express Co.		63,622		3,364,968
Ameriprise Financial, Inc.		13,817		770,436
Bank of America Corp.		616,396		4,912,676
BlackRock, Inc.		6,565		1,306,435
Capital One Financial Corp.		27,882		1,410,829
CBOE Holdings, Inc.		5,322		146,727
Citigroup, Inc.		178,256		5,939,490
CME Group, Inc.		4,040		1,169,540
Discover Financial Services		33,214		996,752
ETRADE Financial Corp.		15,365		147,965
Eaton Vance Corp.		7,070		203,687
Franklin Resources, Inc.		9,091		1,071,738
IntercontinentalExchange, Inc. *		4,545		627,028
Invesco Ltd.		27,540		682,166
Jefferies Group, Inc.		8,602		143,825
JPMorgan Chase & Co.		233,301		9,154,731
Legg Mason, Inc.		8,605		235,691
Leucadia National Corp.		12,120		345,299
LPL Investment Holdings, Inc. *		2,317		79,010
Moody’s Corp.		11,637		449,305
Morgan Stanley		81,306		1,507,413
MSCI, Inc., Class A *		7,098		251,127
Northern Trust Corp.		13,163		584,569
NYSE Euronext		15,702		467,448
Raymond James Financial, Inc.		6,107		216,005
SEI Investments Co.		9,642		190,429
SLM Corp.		31,903		502,791
State Street Corp.		30,347		1,281,554
T. Rowe Price Group, Inc.		15,423		949,903
TD Ameritrade Holding Corp.		14,692		274,300
The Bank of New York Mellon Corp.		75,814		1,676,247
The Charles Schwab Corp. (b)		62,620		869,166

See financial notes 35

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Goldman Sachs Group, Inc.		26,260		3,023,576
The NASDAQ OMX Group, Inc. *		8,155		214,803

				45,496,268

Energy 11.8%
Alpha Natural Resources, Inc. *		13,635		253,066
Anadarko Petroleum Corp.		30,805		2,591,317
Apache Corp.		23,390		2,524,483
Arch Coal, Inc.		12,724		172,665
Baker Hughes, Inc.		26,529		1,333,878
Cabot Oil & Gas Corp.		12,684		442,418
Cameron International Corp. *		14,712		819,605
Chesapeake Energy Corp.		39,907		997,675
Chevron Corp.		123,213		13,445,002
Cimarex Energy Co.		5,116		412,708
Cobalt International Energy, Inc. *		9,116		274,027
Concho Resources, Inc. *		6,565		701,405
ConocoPhillips		76,247		5,836,708
CONSOL Energy, Inc.		13,724		491,594
Continental Resources, Inc. *		3,535		320,554
Denbury Resources, Inc. *		24,339		484,589
Devon Energy Corp.		24,002		1,759,587
Diamond Offshore Drilling, Inc.		4,040		276,619
El Paso Corp.		46,767		1,300,590
Energen Corp.		4,545		241,930
EOG Resources, Inc.		16,665		1,897,477
EQT Corp.		9,090		481,952
EXCO Resources, Inc. (a)		10,609		75,642
Exxon Mobil Corp.		294,408		25,466,292
FMC Technologies, Inc. *		14,645		738,547
Forest Oil Corp. *		6,688		86,476
Halliburton Co.		56,200		2,056,358
Helmerich & Payne, Inc.		6,060		371,478
Hess Corp.		18,685		1,213,030
HollyFrontier Corp.		11,830		386,013
Kinder Morgan, Inc. (a)		6,084		214,400
Marathon Oil Corp.		43,384		1,470,284
Marathon Petroleum Corp.		21,715		902,258
McDermott International, Inc. *		14,144		184,721
Murphy Oil Corp.		11,809		755,067
Nabors Industries Ltd. *		17,679		385,049
National-Oilwell Varco, Inc.		26,253		2,166,660
Newfield Exploration Co. *		8,084		291,024
Noble Corp. *		15,659		629,179
Noble Energy, Inc.		10,764		1,051,105
Occidental Petroleum Corp.		49,988		5,217,247
Oceaneering International, Inc.		6,566		356,337
Patterson-UTI Energy, Inc.		9,595		186,335
Peabody Energy Corp.		16,517		576,113
Pioneer Natural Resources Co.		7,575		830,523
Plains Exploration & Production Co. *		8,632		380,412
QEP Resources, Inc.		10,706		365,503
Range Resources Corp.		9,698		617,569
Rowan Cos., Inc. *		7,627		281,207
SandRidge Energy, Inc. *		22,016		190,879
Schlumberger Ltd.		82,813		6,427,117
SM Energy Co.		4,040		318,029
Southern Union Co.		7,097		311,842
Southwestern Energy Co. *		21,218		701,467
Spectra Energy Corp.		39,567		1,241,612
Sunoco, Inc.		6,496		250,940
The Williams Cos., Inc.		35,712		1,067,074
Tidewater, Inc.		3,099		184,390
Ultra Petroleum Corp. *		9,191		229,407
Valero Energy Corp.		34,386		842,113
Weatherford International Ltd. *		45,021		719,436
Whiting Petroleum Corp. *		7,070		414,585
WPX Energy, Inc. *		11,894		215,995

				97,429,564

Food & Staples Retailing 2.1%
Costco Wholesale Corp.		26,473		2,278,266
CVS Caremark Corp.		82,315		3,712,407
Safeway, Inc.		20,717		444,380
Sysco Corp.		35,982		1,058,590
The Kroger Co.		34,071		810,549
Wal-Mart Stores, Inc.		108,575		6,414,611
Walgreen Co.		53,648		1,778,968
Whole Foods Market, Inc.		9,596		774,781

				17,272,552

Food, Beverage & Tobacco 5.8%
Altria Group, Inc.		127,282		3,831,188
Archer-Daniels-Midland Co.		37,199		1,160,609
Beam, Inc.		9,203		506,901
Brown-Forman Corp., Class B		6,649		542,891
Bunge Ltd.		8,973		604,062
Campbell Soup Co.		12,121		403,872
Coca-Cola Enterprises, Inc.		19,047		550,458
ConAgra Foods, Inc.		25,335		665,044
Constellation Brands, Inc., Class A *		11,289		246,552
Corn Products International, Inc.		4,626		265,301
Dr. Pepper Snapple Group, Inc.		13,352		508,044
General Mills, Inc.		37,044		1,419,156
Green Mountain Coffee Roasters, Inc. *		7,173		466,030
H.J. Heinz Co.		19,695		1,038,123
Hormel Foods Corp.		8,806		250,707
Kellogg Co.		15,154		793,312
Kraft Foods, Inc., Class A		100,072		3,809,741
Lorillard, Inc.		8,241		1,080,230
McCormick & Co., Inc.		8,080		407,636
Mead Johnson Nutrition Co.		12,625		981,594
Molson Coors Brewing Co., Class B		9,595		421,604
Monster Beverage Corp. *		9,090		519,857
PepsiCo, Inc.		96,447		6,070,374
Philip Morris International, Inc.		108,070		9,026,006
Post Holdings, Inc. *		1,760		54,806
Ralcorp Holdings, Inc. *		3,535		263,711
Reynolds American, Inc.		20,636		865,268
Sara Lee Corp.		35,737		723,674
Smithfield Foods, Inc. *		9,136		214,056
The Coca-Cola Co.		128,263		8,960,453
The Hershey Co.		9,618		583,813
The J.M. Smucker Co.		7,161		539,367
Tyson Foods, Inc., Class A		17,443		329,847

				48,104,287

Health Care Equipment & Services 3.9%
Aetna, Inc.		22,117		1,034,191

36 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
AmerisourceBergen Corp.		16,277		607,946
Baxter International, Inc.		35,057		2,037,863
Becton, Dickinson & Co.		12,625		962,278
Boston Scientific Corp. *		92,484		575,250
C.R. Bard, Inc.		5,269		493,284
Cardinal Health, Inc.		21,210		881,276
CareFusion Corp. *		13,279		342,731
Cerner Corp. *		8,641		637,965
CIGNA Corp.		17,431		768,881
Coventry Health Care, Inc. *		9,094		297,283
Covidien plc		30,156		1,575,651
DaVita, Inc. *		5,649		488,921
DENTSPLY International, Inc.		8,635		334,002
Edwards Lifesciences Corp. *		7,070		517,029
Express Scripts, Inc. *		27,775		1,481,241
Gen-Probe, Inc. *		3,030		206,888
HCA Holdings, Inc.		10,138		270,380
Henry Schein, Inc. *		5,555		411,181
Hologic, Inc. *		15,702		325,502
Humana, Inc.		10,116		881,104
IDEXX Laboratories, Inc. *		3,535		303,126
Intuitive Surgical, Inc. *		2,525		1,291,840
Laboratory Corp. of America Holdings *		6,093		547,700
McKesson Corp.		15,150		1,265,177
Medco Health Solutions, Inc. *		23,545		1,591,407
Medtronic, Inc.		64,835		2,471,510
Omnicare, Inc.		7,117		250,376
Patterson Cos., Inc.		6,224		198,670
Quest Diagnostics, Inc.		9,602		557,396
ResMed, Inc. *		9,244		270,849
St. Jude Medical, Inc.		19,757		832,165
Stryker Corp.		18,180		975,175
UnitedHealth Group, Inc.		65,769		3,666,622
Universal Health Services, Inc., Class B		5,559		247,987
Varian Medical Systems, Inc. *		7,157		466,994
WellPoint, Inc.		21,258		1,395,163
Zimmer Holdings, Inc. *		11,624		706,158

				32,169,162

Household & Personal Products 2.3%
Avon Products, Inc.		25,882		483,735
Church & Dwight Co., Inc.		8,724		416,484
Colgate-Palmolive Co.		27,351		2,548,566
Energizer Holdings, Inc. *		4,130		315,739
Herbalife Ltd.		7,182		475,520
Kimberly-Clark Corp.		23,997		1,748,901
The Clorox Co.		8,081		546,356
The Estee Lauder Cos., Inc., Class A		14,196		831,034
The Procter & Gamble Co.		168,670		11,388,598

				18,754,933

Insurance 3.8%
ACE Ltd.		20,707		1,484,899
Aflac, Inc.		28,803		1,360,942
Alleghany Corp. *(a)		511		165,891
Allied World Assurance Co. Holdings AG		2,525		166,574
American Financial Group, Inc.		5,082		190,321
American International Group, Inc. *		26,765		782,073
Aon Corp.		19,952		933,953
Arch Capital Group Ltd. *		8,080		299,364
Assurant, Inc.		5,586		237,237
Assured Guaranty Ltd.		10,176		170,957
Axis Capital Holdings Ltd.		7,663		236,404
Berkshire Hathaway, Inc., Class B *		117,160		9,191,202
Brown & Brown, Inc.		7,117		168,175
Cincinnati Financial Corp.		9,137		321,348
CNA Financial Corp.		1,560		44,008
Erie Indemnity Co., Class A		1,592		121,167
Everest Re Group Ltd.		2,712		238,249
Fidelity National Financial, Inc., Class A		14,187		244,868
Genworth Financial, Inc., Class A *		29,807		270,946
Hartford Financial Services Group, Inc.		26,951		558,155
HCC Insurance Holdings, Inc.		7,088		216,467
Lincoln National Corp.		18,715		464,881
Loews Corp.		21,285		833,095
Markel Corp. *		609		248,442
Marsh & McLennan Cos., Inc.		33,090		1,032,408
MetLife, Inc.		50,500		1,946,775
Old Republic International Corp.		14,695		159,588
PartnerRe Ltd.		4,040		256,298
Principal Financial Group, Inc.		18,015		498,295
Prudential Financial, Inc.		29,643		1,812,966
Reinsurance Group of America, Inc.		4,545		262,110
RenaissanceRe Holdings Ltd.		3,115		224,155
The Allstate Corp.		29,424		924,796
The Chubb Corp.		17,170		1,166,873
The Progressive Corp.		36,393		779,538
The Travelers Cos., Inc.		25,338		1,468,844
Torchmark Corp.		6,355		307,836
Transatlantic Holdings, Inc.		3,669		222,341
Unum Group		18,213		419,810
Validus Holdings Ltd.		4,227		128,881
W.R. Berkley Corp.		7,167		256,220
White Mountains Insurance Group Ltd.		505		250,591
XL Group plc		19,566		406,973

				31,474,916

Materials 3.9%
Air Products & Chemicals, Inc.		12,124		1,094,070
Airgas, Inc.		4,134		340,352
Albemarle Corp.		5,672		377,301
Alcoa, Inc.		64,244		653,362
Allegheny Technologies, Inc.		6,565		288,007
Allied Nevada Gold Corp. *		4,736		162,966
AptarGroup, Inc.		3,601		190,061
Ashland, Inc.		4,137		262,948
Ball Corp.		10,210		409,217
Bemis Co., Inc.		6,565		205,944
Celanese Corp., Series A		9,605		456,910
CF Industries Holdings, Inc.		4,545		845,370
Cliffs Natural Resources, Inc.		8,731		554,244
Crown Holdings, Inc. *		9,642		356,465
E.I. du Pont de Nemours & Co.		57,065		2,901,755
Eastman Chemical Co.		8,242		446,139
Ecolab, Inc.		16,524		991,440

See financial notes 37

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
FMC Corp.		4,545		449,819
Freeport-McMoRan Copper & Gold, Inc.		57,570		2,450,179
Huntsman Corp.		11,685		159,617
International Flavors & Fragrances, Inc.		4,885		278,592
International Paper Co.		24,781		871,052
LyondellBasell Industries N.V., Class A		20,743		895,683
Martin Marietta Materials, Inc. (a)		2,756		236,658
MeadWestvaco Corp.		10,244		310,188
Molycorp, Inc. *(a)		3,660		90,402
Monsanto Co.		32,825		2,539,999
Newmont Mining Corp.		29,534		1,754,320
Nucor Corp.		17,675		769,393
Owens-Illinois, Inc. *		10,100		241,390
PPG Industries, Inc.		9,596		875,635
Praxair, Inc.		18,685		2,036,665
Reliance Steel & Aluminum Co.		4,545		244,157
Rockwood Holdings, Inc. *		4,545		242,021
Royal Gold, Inc.		3,303		229,393
Sealed Air Corp.		11,615		228,002
Sigma-Aldrich Corp.		6,558		470,799
Sonoco Products Co.		6,060		199,010
Southern Copper Corp.		10,457		336,311
Steel Dynamics, Inc.		13,130		194,455
The Dow Chemical Co.		71,711		2,403,036
The Mosaic Co.		17,170		991,568
The Scotts Miracle-Gro Co., Class A (a)		2,641		123,704
The Sherwin-Williams Co.		5,555		572,998
The Valspar Corp.		5,555		257,474
Titanium Metals Corp.		5,090		74,619
United States Steel Corp. (a)		8,696		236,705
Valhi, Inc.		505		28,962
Vulcan Materials Co.		7,074		315,217
Walter Energy, Inc.		3,797		246,160

				31,890,734

Media 3.4%
AMC Networks, Inc., Class A *		3,636		165,038
Cablevision Systems Corp., Class A		14,654		208,526
CBS Corp., Class B		38,410		1,148,459
Charter Communications, Inc., Class A *		2,526		160,174
Clear Channel Outdoor Holdings, Inc., Class A *		2,020		26,725
Comcast Corp., Class A		169,680		4,985,198
DIRECTV, Class A *		44,945		2,081,852
Discovery Communications, Inc., Series A *		16,122		752,091
DISH Network Corp., Class A		13,130		383,002
Gannett Co., Inc.		14,645		217,332
John Wiley & Sons, Inc., Class A		3,030		137,562
Liberty Global, Inc., Series A *		16,530		829,475
Liberty Media Corp. - Liberty Capital, Series A *		7,070		635,522
News Corp., Class A		141,765		2,816,871
Omnicom Group, Inc.		17,171		848,934
Scripps Networks Interactive, Class A		5,666		256,103
Sirius XM Radio, Inc. *		236,845		535,270
The Interpublic Group of Cos., Inc.		28,162		330,059
The McGraw-Hill Cos., Inc.		18,245		849,122
The Walt Disney Co.		105,345		4,423,437
The Washington Post Co., Class B (a)		505		198,920
Time Warner Cable, Inc.		19,485		1,545,940
Time Warner, Inc.		61,170		2,276,136
Viacom, Inc., Class B		32,641		1,554,364
Virgin Media, Inc.		18,923		476,860

				27,842,972

Pharmaceuticals, Biotechnology & Life Sciences 7.3%
Abbott Laboratories		95,942		5,431,277
Agilent Technologies, Inc. *		21,210		925,180
Alexion Pharmaceuticals, Inc. *		11,608		971,938
Allergan, Inc.		19,190		1,719,232
Amgen, Inc.		54,028		3,671,202
Biogen Idec, Inc. *		14,778		1,721,194
Bristol-Myers Squibb Co.		105,040		3,379,137
Celgene Corp. *		28,026		2,055,006
Covance, Inc. *		3,535		168,725
Eli Lilly & Co.		59,985		2,353,811
Endo Pharmaceuticals Holdings, Inc. *		6,953		257,748
Forest Laboratories, Inc. *		15,458		502,694
Gilead Sciences, Inc. *		45,882		2,087,631
Hospira, Inc. *		10,100		359,762
Human Genome Sciences, Inc. *		11,295		89,005
Illumina, Inc. *		7,591		389,039
Johnson & Johnson		167,660		10,911,313
Life Technologies Corp. *		11,110		525,614
Merck & Co., Inc.		188,862		7,208,862
Mettler-Toledo International, Inc. *		2,020		364,166
Mylan, Inc. *		25,969		608,713
PerkinElmer, Inc.		7,074		190,998
Perrigo Co.		5,158		531,583
Pfizer, Inc.		471,670		9,952,237
Regeneron Pharmaceuticals, Inc. *		4,414		462,543
Techne Corp.		2,127		152,272
Thermo Fisher Scientific, Inc. *		23,230		1,315,283
United Therapeutics Corp. *		3,030		144,622
Vertex Pharmaceuticals, Inc. *		13,130		511,020
Warner Chilcott plc, Class A *		10,437		174,611
Waters Corp. *		5,616		503,194
Watson Pharmaceuticals, Inc. *		7,759		452,505

				60,092,117

Real Estate 2.7%
Alexandria Real Estate Equities, Inc.		3,769		270,200
American Capital Agency Corp.		13,130		403,222
American Tower Corp.		24,004		1,502,170
Annaly Capital Management, Inc.		59,222		984,270
AvalonBay Communities, Inc.		6,060		785,800
Boston Properties, Inc.		9,090		923,090
BRE Properties, Inc.		4,566		221,131
Brookfield Office Properties, Inc.		15,702		274,000
Camden Property Trust		4,332		268,584
CBRE Group, Inc. *		17,812		326,494
Chimera Investment Corp.		59,706		183,297
DDR Corp.		13,205		186,587
Digital Realty Trust, Inc.		6,565		475,963
Equity Residential		18,180		1,034,260
Essex Property Trust, Inc.		2,064		288,939

38 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Federal Realty Investment Trust		4,040		385,214
General Growth Properties, Inc.		23,504		382,410
HCP, Inc.		24,745		977,428
Health Care REIT, Inc.		12,120		659,813
Host Hotels & Resorts, Inc.		42,595		672,149
Jones Lang LaSalle, Inc.		2,530		205,967
Kimco Realty Corp.		24,788		455,603
Liberty Property Trust		7,070		239,814
Piedmont Office Realty Trust, Inc., Class A		10,278		181,098
Plum Creek Timber Co., Inc.		10,100		395,516
ProLogis, Inc.		28,038		943,759
Public Storage		8,615		1,155,013
Rayonier, Inc.		7,575		337,239
Realty Income Corp.		8,138		300,211
Regency Centers Corp.		5,358		229,269
Rouse Properties, Inc. *		868		12,699
Simon Property Group, Inc.		18,180		2,463,026
SL Green Realty Corp.		5,214		396,525
The Macerich Co.		8,033		433,702
UDR, Inc.		13,150		329,013
Ventas, Inc.		17,675		988,386
Vornado Realty Trust		11,252		919,626
Weyerhaeuser Co.		32,076		670,068

				21,861,555

Retailing 3.8%
Abercrombie & Fitch Co., Class A		5,555		254,364
Advance Auto Parts, Inc.		4,562		389,458
Amazon.com, Inc. *		21,715		3,901,968
American Eagle Outfitters, Inc.		11,932		173,491
AutoNation, Inc. *		2,130		72,590
AutoZone, Inc. *		2,020		756,450
Bed Bath & Beyond, Inc. *		15,150		905,061
Best Buy Co., Inc.		18,022		445,143
CarMax, Inc. *		13,656		419,103
Dick’s Sporting Goods, Inc.		5,516		246,896
Dollar General Corp. *		7,470		314,188
Dollar Tree, Inc. *		7,575		670,463
Expedia, Inc.		6,076		206,888
Family Dollar Stores, Inc.		6,755		364,703
GameStop Corp., Class A (a)		8,474		193,038
Genuine Parts Co.		9,642		604,361
Groupon, Inc. *(a)		2,020		39,824
Guess?, Inc.		3,679		127,477
J.C. Penney Co., Inc.		9,121		361,192
Kohl’s Corp.		15,503		770,189
Liberty Interactive Corp., Series A *		36,865		691,587
Limited Brands, Inc.		15,872		738,524
LKQ Corp. *		9,090		289,607
Lowe’s Cos., Inc.		77,027		2,186,026
Macy’s, Inc.		25,755		977,917
Netflix, Inc. *		3,184		352,564
Nordstrom, Inc.		10,247		549,444
O’Reilly Automotive, Inc. *		7,827		677,036
PetSmart, Inc.		7,070		394,082
Priceline.com, Inc. *		3,030		1,899,871
Ross Stores, Inc.		14,152		754,726
Sears Holdings Corp. *(a)		3,030		211,070
Staples, Inc.		43,430		636,684
Target Corp.		37,370		2,118,505
The Gap, Inc.		15,565		363,598
The Home Depot, Inc.		94,932		4,515,915
The TJX Cos., Inc.		46,077		1,686,879
Tiffany & Co.		7,692		500,057
Tractor Supply Co.		4,545		388,461
TripAdvisor, Inc. *		6,076		195,830
Urban Outfitters, Inc. *		7,415		210,512

				31,555,742

Semiconductors & Semiconductor Equipment 2.4%
Advanced Micro Devices, Inc. *		34,352		252,487
Altera Corp.		19,797		761,195
Analog Devices, Inc.		18,199		713,583
Applied Materials, Inc.		80,295		982,811
Atmel Corp. *		27,298		275,983
Broadcom Corp., Class A *		28,565		1,061,190
Cree, Inc. *		7,086		214,635
First Solar, Inc. *(a)		3,535		114,180
Intel Corp.		312,586		8,402,312
KLA-Tencor Corp.		10,137		490,631
Lam Research Corp. *		7,692		320,756
Linear Technology Corp.		13,154		440,396
LSI Corp. *		34,885		300,011
Marvell Technology Group Ltd. *		30,940		464,100
Maxim Integrated Products, Inc.		17,999		501,992
Microchip Technology, Inc.		11,648		420,143
Micron Technology, Inc. *		52,254		446,772
NVIDIA Corp. *		36,374		551,066
ON Semiconductor Corp. *		26,765		242,758
Skyworks Solutions, Inc. *		10,856		292,786
Texas Instruments, Inc.		69,825		2,328,664
Xilinx, Inc.		16,204		598,414

				20,176,865

Software & Services 9.4%
Accenture plc, Class A		42,420		2,525,687
Activision Blizzard, Inc.		25,603		305,956
Adobe Systems, Inc. *		30,162		992,028
Akamai Technologies, Inc. *		11,299		406,764
Alliance Data Systems Corp. *		3,123		379,007
ANSYS, Inc. *		5,565		351,597
Autodesk, Inc. *		14,173		536,448
Automatic Data Processing, Inc.		30,083		1,634,109
BMC Software, Inc. *		10,384		388,777
Broadridge Financial Solutions, Inc.		7,622		185,519
CA, Inc.		22,593		610,689
Citrix Systems, Inc. *		11,615		868,105
Cognizant Technology Solutions Corp., Class A *		18,527		1,314,491
Computer Sciences Corp.		9,180		291,557
eBay, Inc. *		67,670		2,418,526
Electronic Arts, Inc. *		20,420		333,459
Equinix, Inc. *		3,030		424,745
FactSet Research Systems, Inc.		2,595		226,803
Fidelity National Information Services, Inc.		15,745		499,589
Fiserv, Inc. *		8,594		569,782
Genpact Ltd. *		6,102		97,754
Global Payments, Inc.		5,050		260,681
Google, Inc., Class A *		15,290		9,453,042

See financial notes 39

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
IAC/InterActiveCorp		4,545		207,252
Informatica Corp. *		6,565		322,735
International Business Machines Corp.		72,713		14,304,828
Intuit, Inc.		16,750		968,820
LinkedIn Corp., Class A *		1,010		87,739
MasterCard, Inc., Class A		6,565		2,757,300
Microsoft Corp.		459,036		14,569,803
Nuance Communications, Inc. *		14,035		363,787
Oracle Corp.		238,856		6,991,315
Paychex, Inc.		20,231		633,230
Rackspace Hosting, Inc. *		6,565		342,956
Red Hat, Inc. *		11,615		574,478
Rovi Corp. *		6,763		239,951
SAIC, Inc. *		20,957		256,095
Salesforce.com, Inc. *		7,575		1,084,437
Solera Holdings, Inc.		4,087		196,176
Symantec Corp. *		45,020		803,157
Synopsys, Inc. *		9,170		279,410
Teradata Corp. *		10,160		676,148
TIBCO Software, Inc. *		9,776		283,211
Total System Services, Inc.		12,124		265,273
VeriSign, Inc.		9,714		358,932
Visa, Inc., Class A		29,788		3,466,430
VMware, Inc., Class A *		4,042		399,713
Western Union Co.		38,000		663,860
Yahoo!, Inc. *		72,363		1,073,143
Zynga, Inc. *(a)		6,565		86,461

				77,331,755

Technology Hardware & Equipment 7.9%
Acme Packet, Inc. *		3,535		107,747
Amphenol Corp., Class A		10,128		566,763
Apple, Inc. *		56,884		30,856,157
Arrow Electronics, Inc. *		6,813		273,542
Avnet, Inc. *		9,130		326,306
Cisco Systems, Inc.		330,260		6,565,569
Corning, Inc.		95,602		1,246,650
Dell, Inc. *		98,244		1,699,621
Dolby Laboratories, Inc., Class A *		3,104		118,169
EMC Corp. *		124,891		3,458,232
F5 Networks, Inc. *		5,050		631,048
FLIR Systems, Inc.		9,599		251,206
Harris Corp.		7,077		308,770
Hewlett-Packard Co.		121,430		3,073,393
Ingram Micro, Inc., Class A *		10,100		193,213
Jabil Circuit, Inc.		12,123		313,137
JDS Uniphase Corp. *		13,983		182,338
Juniper Networks, Inc. *		32,242		733,828
Molex, Inc.		8,840		239,564
Motorola Mobility Holdings, Inc. *		17,720		703,484
Motorola Solutions, Inc.		17,488		870,902
NCR Corp. *		9,642		209,424
NetApp, Inc. *		22,500		967,500
Polycom, Inc. *		11,110		229,422
QUALCOMM, Inc.		103,020		6,405,784
Riverbed Technology, Inc. *		9,332		265,682
SanDisk Corp. *		14,541		719,198
Seagate Technology plc		25,953		681,526
TE Connectivity Ltd.		26,476		967,698
Trimble Navigation Ltd. *		7,579		381,148
Western Digital Corp. *		14,180		556,565
Xerox Corp.		84,850		698,315

				64,801,901

Telecommunication Services 2.7%
AT&T, Inc.		364,105		11,137,972
CenturyLink, Inc.		37,370		1,504,142
Clearwire Corp., Class A *		8,922		20,521
Crown Castle International Corp. *		15,150		784,922
Frontier Communications Corp. (a)		62,658		287,600
MetroPCS Communications, Inc. *		19,096		196,689
NII Holdings, Inc. *		10,232		182,948
SBA Communications Corp., Class A *		7,101		333,250
Sprint Nextel Corp. *		182,853		451,647
Telephone & Data Systems, Inc.		6,090		153,894
United States Cellular Corp. *		1,078		46,505
Verizon Communications, Inc.		173,712		6,620,164
Windstream Corp.		35,350		427,028

				22,147,282

Transportation 1.8%
C.H. Robinson Worldwide, Inc.		10,100		668,317
CSX Corp.		64,171		1,348,233
Delta Air Lines, Inc. *		51,145		501,732
Expeditors International of Washington, Inc.		13,134		573,036
FedEx Corp.		18,180		1,636,018
Hertz Global Holdings, Inc. *		14,373		205,534
J.B. Hunt Transport Services, Inc.		6,089		311,818
Kansas City Southern *		6,626		461,037
Norfolk Southern Corp.		20,705		1,426,574
Southwest Airlines Co.		48,504		435,566
Union Pacific Corp.		29,795		3,284,899
United Continental Holdings, Inc. *		20,203		417,192
United Parcel Service, Inc., Class B		42,112		3,237,992

				14,507,948

Utilities 3.5%
AGL Resources, Inc.		7,100		283,077
Alliant Energy Corp.		6,731		287,010
Ameren Corp.		14,649		469,793
American Electric Power Co., Inc.		29,337		1,103,365
American Water Works Co., Inc.		10,624		364,191
Aqua America, Inc.		8,127		180,501
Atmos Energy Corp.		5,555		170,705
Calpine Corp. *		23,525		360,168
CenterPoint Energy, Inc.		23,866		465,148
CMS Energy Corp.		15,250		326,502
Consolidated Edison, Inc.		17,675		1,026,917
Constellation Energy Group, Inc.		11,110		402,849
Dominion Resources, Inc.		34,763		1,754,489
DTE Energy Co.		10,147		547,837
Duke Energy Corp.		80,582		1,685,775
Edison International		18,226		763,123
Entergy Corp.		10,672		711,075
Exelon Corp.		40,311		1,574,951
FirstEnergy Corp.		25,394		1,124,700
Integrys Energy Group, Inc.		4,654		242,148

40 See financial notes

Schwab U.S. Large-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
ITC Holdings Corp.		3,030		228,704
MDU Resources Group, Inc.		10,652		231,148
National Fuel Gas Co.		4,677		235,393
NextEra Energy, Inc.		26,260		1,562,733
NiSource, Inc.		16,712		401,088
Northeast Utilities		10,652		382,407
NRG Energy, Inc. *		14,731		251,900
NSTAR		6,565		307,899
NV Energy, Inc.		14,183		222,389
OGE Energy Corp.		6,072		318,659
ONEOK, Inc.		6,060		500,798
Pepco Holdings, Inc.		13,682		265,978
PG&E Corp.		24,565		1,023,869
Pinnacle West Capital Corp.		6,580		309,457
PPL Corp.		35,284		1,007,358
Progress Energy, Inc.		17,871		948,593
Public Service Enterprise Group, Inc.		31,061		956,058
Questar Corp.		10,706		205,769
SCANA Corp.		7,070		318,150
Sempra Energy		13,635		807,737
TECO Energy, Inc.		12,167		218,398
The AES Corp. *		46,885		635,761
The Southern Co.		52,520		2,320,859
UGI Corp.		6,714		189,671
Westar Energy, Inc.		6,811		187,439
Wisconsin Energy Corp.		14,140		481,891
Xcel Energy, Inc.		29,307		776,342

				29,140,772

Total Common Stock
(Cost $739,869,723)				821,597,626




Rights 0.0% of net assets

Real Estate 0.0%
Rouse Properties, Inc. *(c)(d)		861		—

Total Rights
(Cost $—)				—




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		448,033		448,033

Total Other Investment Company
(Cost $448,033)				448,033



End of Investments.



Collateral Invested for Securities on Loan 0.1% of net assets


State Street Institutional U.S. Government Money Market Fund		1,018,292		1,018,292

Total Collateral Invested for Securities on Loan
(Cost $1,018,292)				1,018,292



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $740,748,305 and the unrealized appreciation and depreciation were $103,627,211 and ($22,329,857), respectively, with a net unrealized appreciation of $81,297,354.


*		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)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.
(d)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$821,597,626		$—		$—		$821,597,626
Other Investment Company(a)		448,033		—		—		448,033
Rights(a)		—		—		—		—

Total		$822,045,659		$—		$—		$822,045,659

Other Financial Instruments
Collateral Invested for Securities on Loan		$1,018,292		$—		$—		$1,018,292


(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

See financial notes 41

Schwab U.S. Large-Cap ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $739,287,726) including securities on loan of $1,188,785		$821,176,493
Investment in affiliated issuer, at value (cost $1,030,030)		$869,166
Collateral invested for securities on loan		1,018,292
Receivables:
Dividends		1,826,406
Fund shares sold		1,638,995
Income from securities on loan		5,044
Foreign tax reclaims	+	951

Total assets		826,535,347

Liabilities

Collateral held for securities on loan		1,018,292
Payables:
Investments bought		1,626,019
Investment adviser fees	+	5,403

Total liabilities		2,649,714

Net Assets

Total assets		826,535,347
Total liabilities	−	2,649,714

Net assets		$823,885,633

Net Assets by Source
Capital received from investors		739,436,395
Net investment income not yet distributed		2,745,351
Net realized capital losses		(83,964	)
Net unrealized capital gains		81,787,851

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$823,885,633

25,250,001

$32.63

42 See financial notes

Schwab U.S. Large-Cap ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (including $7,038 from affiliated issuer and net of foreign withholding tax of $15,289)		$7,761,216
Interest		246
Securities on loan	+	21,751

Total investment income		7,783,213

Expenses

Investment adviser fees		275,239

Total expenses	−	275,239

Net investment income		7,507,974

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $655 gains from affiliated issuer)		(2,688,161	)
Net realized gains on in-kind redemptions	+	3,963,071

Net realized gains		1,274,910
Net unrealized gains on investments (including $98,551 gains from affiliated issuer)	+	82,931,136

Net realized and unrealized gains		84,206,046

Net increase in net assets resulting from operations		$91,714,020

See financial notes 43

Schwab U.S. Large-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$7,507,974			$9,053,736
Net realized gains		1,274,910			14,320,204
Net unrealized gains	+	82,931,136			18,714,018

Net increase in net assets resulting from operations		91,714,020			42,087,958

Distributions to Shareholders

Distributions from net investment income		($6,840,965	)		($8,109,371	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

4,800,000

$143,652,269

12,800,000

$387,220,506

Shares Redeemed

(700,000

)

(20,420,197

)

(2,600,000

)

(78,921,350

)

Net transactions in fund shares

4,100,000

$123,232,072

10,200,000

$308,299,156

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

21,150,001

$615,780,506

10,950,001

$273,502,763

Total increase

4,100,000

208,105,127

10,200,000

342,277,743

End of period

25,250,001

$823,885,633

21,150,001

$615,780,506

Net investment income not yet distributed

$2,745,351

$2,078,342

44 See financial notes

Schwab U.S. Large-Cap Growth ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			12/9/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		29.44			24.21			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.17			0.27			0.15
Net realized and unrealized gains (losses)		3.90			5.20			(0.83	)

Total from investment operations		4.07			5.47			(0.68	)
Less distributions:
Distributions from net investment income		(0.18	)		(0.24	)		(0.11	)

Net asset value at end of period		33.33			29.44			24.21

Total return (%)		13.93	²		22.57			(2.75	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.13			0.14	^3,4
Gross operating expenses		0.13	³		0.13			0.14	³
Net investment income (loss)		1.17	³		0.93			0.86	³
Portfolio turnover rate⁵		4	²		10			6	²
Net assets, end of period ($ x 1,000)		394,932			309,155			108,946

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 45

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.8%	Common Stock		350,377,717		394,269,513
	0	.1%	Other Investment Company		208,246		208,246


	99	.9%	Total Investments		350,585,963		394,477,759
	0	.2%	Collateral Invested for Securities on Loan		876,527		876,527
	(0	.1)%	Other Assets and Liabilities, Net				(421,800	)


	100	.0%	Net Assets				394,932,486


	Number		Value
Security	of Shares		($)

Common Stock 99.8% of net assets

Automobiles & Components 0.6%
BorgWarner, Inc. *		6,636		549,726
Gentex Corp.		8,769		207,387
Johnson Controls, Inc.		40,776		1,330,521
The Goodyear Tire & Rubber Co. *		14,937		192,090
Visteon Corp. *		3,081		165,511

				2,445,235

Banks 0.5%
Fifth Third Bancorp		54,994		748,468
Hudson City Bancorp, Inc.		29,254		200,390
SunTrust Banks, Inc.		32,124		737,567
Zions Bancorp		10,960		208,240

				1,894,665

Capital Goods 7.9%
Aecom Technology Corp. *		6,199		144,747
AGCO Corp. *		5,728		295,737
AMETEK, Inc.		9,548		454,485
Caterpillar, Inc.		35,313		4,033,098
Cooper Industries plc		9,954		609,384
Cummins, Inc.		10,665		1,285,879
Danaher Corp.		34,134		1,803,299
Deere & Co.		24,885		2,063,713
Donaldson Co., Inc.		4,266		313,252
Dover Corp.		11,155		714,143
Emerson Electric Co.		44,664		2,247,046
Exelis, Inc.		10,999		115,599
Fastenal Co.		17,676		931,172
First Solar, Inc. *(a)		3,318		107,171
Flowserve Corp.		3,318		393,415
Fluor Corp.		10,428		630,685
Foster Wheeler AG *		6,985		172,041
Gardner Denver, Inc.		3,081		211,603
Goodrich Corp.		7,584		955,356
Illinois Tool Works, Inc.		24,897		1,386,514
ITT Corp.		5,499		137,200
Jacobs Engineering Group, Inc. *		7,821		361,487
Joy Global, Inc.		6,399		556,457
KBR, Inc.		8,951		325,100
Lincoln Electric Holdings, Inc.		5,051		233,306
McDermott International, Inc. *		13,987		182,670
MSC Industrial Direct Co., Class A		2,651		210,516
Navistar International Corp. *		4,357		182,035
PACCAR, Inc.		21,567		992,298
Pall Corp.		7,110		451,130
Precision Castparts Corp.		8,769		1,468,194
Quanta Services, Inc. *		12,349		258,094
Rockwell Collins, Inc.		9,243		548,017
Roper Industries, Inc.		5,748		526,057
Spirit AeroSystems Holdings, Inc., Class A *		6,823		163,479
SPX Corp.		3,318		242,679
Textron, Inc.		16,407		451,357
The Babcock & Wilcox Co. *		6,987		179,845
The Boeing Co.		39,690		2,974,765
The Timken Co.		4,740		248,376
TransDigm Group, Inc. *		2,844		337,839
URS Corp. *		4,643		202,667
W.W. Grainger, Inc.		3,555		738,480
Xylem, Inc.		10,999		285,754

				31,126,141

Commercial & Professional Services 0.8%
Copart, Inc. *		3,469		172,687
Corrections Corp. of America *		5,965		149,483
Equifax, Inc.		7,157		300,880
IHS, Inc., Class A *		3,081		291,370
Manpower, Inc.		4,858		209,234
Nielsen Holdings N.V. *		4,320		127,397
Robert Half International, Inc.		8,678		246,715
Stericycle, Inc. *		5,214		452,419
The Dun & Bradstreet Corp.		2,925		241,751
Towers Watson & Co., Class A		3,222		206,015
Verisk Analytics, Inc., Class A *		8,226		357,831
Waste Connections, Inc.		6,653		216,356

				2,972,138

Consumer Durables & Apparel 1.8%
Coach, Inc.		17,334		1,297,277
Fossil, Inc. *		3,161		385,579
Harman International Industries, Inc.		4,190		205,855
Michael Kors Holdings Ltd. *		2,370		102,502
Mohawk Industries, Inc. *		3,555		225,778
NIKE, Inc., Class B		22,752		2,455,396
NVR, Inc. *		293		202,756
PVH Corp.		3,792		322,358
Ralph Lauren Corp.		3,792		658,784
Stanley Black & Decker, Inc.		10,034		770,611
Tempur-Pedic International, Inc. *		3,905		308,495

				6,935,391

46 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Consumer Services 2.4%
Apollo Group, Inc., Class A *		6,986		297,883
Chipotle Mexican Grill, Inc. *		1,896		739,857
Darden Restaurants, Inc.		7,900		402,821
DeVry, Inc.		3,659		130,004
Dunkin’ Brands Group, Inc. *		2,575		74,778
Hyatt Hotels Corp., Class A *		2,404		99,550
Las Vegas Sands Corp. *		23,602		1,312,507
Marriott International, Inc., Class A		17,551		619,199
Marriott Vacations Worldwide Corp. *		1,868		46,569
MGM Resorts International *		19,010		261,768
Penn National Gaming, Inc. *		3,940		167,647
Starbucks Corp.		45,030		2,186,657
Starwood Hotels & Resorts Worldwide, Inc.		11,613		625,941
Weight Watchers International, Inc. (a)		1,896		147,850
Wynn Resorts Ltd.		5,451		646,161
Yum! Brands, Inc.		27,966		1,852,468

				9,611,660

Diversified Financials 2.2%
Affiliated Managers Group, Inc. *		3,318		353,002
BlackRock, Inc.		6,162		1,226,238
CBOE Holdings, Inc.		5,257		144,936
Discover Financial Services		32,610		978,626
ETRADE Financial Corp.		15,584		150,074
Franklin Resources, Inc.		9,006		1,061,717
IntercontinentalExchange, Inc. *		4,503		621,234
Leucadia National Corp.		11,797		336,097
Moody’s Corp.		11,545		445,752
MSCI, Inc., Class A *		7,195		254,559
State Street Corp.		29,500		1,245,785
T. Rowe Price Group, Inc.		15,233		938,200
The Charles Schwab Corp. (b)		61,755		857,159
The NASDAQ OMX Group, Inc. *		8,252		217,358

				8,830,737

Energy 9.9%
Alpha Natural Resources, Inc. *		13,357		247,906
Anadarko Petroleum Corp.		30,099		2,531,928
Arch Coal, Inc.		12,764		173,207
Baker Hughes, Inc.		26,070		1,310,800
Cabot Oil & Gas Corp.		12,454		434,396
Cameron International Corp. *		14,592		812,920
Cimarex Energy Co.		5,118		412,869
Cobalt International Energy, Inc. *		8,845		265,881
Concho Resources, Inc. *		6,399		683,669
CONSOL Energy, Inc.		13,538		484,931
Continental Resources, Inc. *		3,555		322,367
Denbury Resources, Inc. *		23,891		475,670
Diamond Offshore Drilling, Inc.		3,890		266,348
EOG Resources, Inc.		16,116		1,834,968
FMC Technologies, Inc. *		14,457		729,067
Halliburton Co.		55,153		2,018,048
Helmerich & Payne, Inc.		5,821		356,827
Hess Corp.		18,335		1,190,308
HollyFrontier Corp.		11,624		379,291
Kinder Morgan, Inc. (a)		5,937		209,220
Marathon Petroleum Corp.		21,287		884,475
Murphy Oil Corp.		11,850		757,689
Nabors Industries Ltd. *		17,080		372,002
National-Oilwell Varco, Inc.		25,596		2,112,438
Newfield Exploration Co. *		8,058		290,088
Noble Corp. *		15,670		629,621
Noble Energy, Inc.		10,665		1,041,437
Occidental Petroleum Corp.		48,822		5,095,552
Oceaneering International, Inc.		6,431		349,010
Patterson-UTI Energy, Inc.		9,273		180,082
Peabody Energy Corp.		16,223		565,858
Pioneer Natural Resources Co.		7,347		805,525
Plains Exploration & Production Co. *		8,367		368,734
QEP Resources, Inc.		10,502		358,538
Range Resources Corp.		9,717		618,779
Rowan Cos., Inc. *		7,516		277,115
SandRidge Energy, Inc. *		22,800		197,676
Schlumberger Ltd.		81,054		6,290,601
SM Energy Co.		3,814		300,238
Southwestern Energy Co. *		20,750		685,995
Sunoco, Inc.		6,403		247,348
Ultra Petroleum Corp. *		9,029		225,364
Weatherford International Ltd. *		44,899		717,486
Whiting Petroleum Corp. *		6,949		407,489

				38,919,761

Food & Staples Retailing 3.7%
Costco Wholesale Corp.		26,070		2,243,584
CVS Caremark Corp.		80,667		3,638,082
Wal-Mart Stores, Inc.		106,413		6,286,880
Walgreen Co.		52,657		1,746,106
Whole Foods Market, Inc.		9,480		765,415

				14,680,067

Food, Beverage & Tobacco 2.6%
Brown-Forman Corp., Class B		6,491		529,990
Bunge Ltd.		8,769		590,329
Green Mountain Coffee Roasters, Inc. *		7,179		466,420
Lorillard, Inc.		8,295		1,087,309
Monster Beverage Corp. *		9,480		542,161
PepsiCo, Inc.		94,326		5,936,878
Post Holdings, Inc. *		1,659		51,661
Ralcorp Holdings, Inc. *		3,318		247,523
Sara Lee Corp.		35,098		710,735

				10,163,006

Health Care Equipment & Services 6.9%
Aetna, Inc.		21,719		1,015,580
AmerisourceBergen Corp.		16,150		603,203
Baxter International, Inc.		34,365		1,997,637
Becton, Dickinson & Co.		12,324		939,335
C.R. Bard, Inc.		5,214		488,135
CareFusion Corp. *		13,283		342,834
Cerner Corp. *		8,532		629,918
Coventry Health Care, Inc. *		8,876		290,156
Covidien plc		29,625		1,547,906
DaVita, Inc. *		5,688		492,296
DENTSPLY International, Inc.		8,554		330,869
Edwards Lifesciences Corp. *		6,873		502,623

See financial notes 47

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Express Scripts, Inc. *		27,149		1,447,856
Gen-Probe, Inc. *		2,946		201,153
HCA Holdings, Inc.		9,932		264,886
Henry Schein, Inc. *		5,487		406,148
Hologic, Inc. *		15,719		325,855
Hospira, Inc. *		9,876		351,783
IDEXX Laboratories, Inc. *		3,404		291,893
Intuitive Surgical, Inc. *		2,370		1,212,539
Laboratory Corp. of America Holdings *		6,162		553,902
McKesson Corp.		14,768		1,233,276
Medco Health Solutions, Inc. *		23,116		1,562,410
Medtronic, Inc.		63,646		2,426,186
Patterson Cos., Inc.		6,025		192,318
Quest Diagnostics, Inc.		9,480		550,314
ResMed, Inc. *		9,006		263,876
St. Jude Medical, Inc.		19,565		824,078
Stryker Corp.		17,607		944,440
UnitedHealth Group, Inc.		64,938		3,620,294
Universal Health Services, Inc., Class B		5,458		243,481
Varian Medical Systems, Inc. *		7,110		463,928
Zimmer Holdings, Inc. *		11,451		695,648

				27,256,756

Household & Personal Products 1.4%
Church & Dwight Co., Inc.		8,568		409,036
Colgate-Palmolive Co.		26,843		2,501,231
Energizer Holdings, Inc. *		4,266		326,135
Herbalife Ltd.		7,018		464,662
Mead Johnson Nutrition Co.		12,324		958,191
The Estee Lauder Cos., Inc., Class A		14,220		832,439

				5,491,694

Insurance 2.7%
Alleghany Corp. *(a)		493		160,047
Berkshire Hathaway, Inc., Class B *		115,182		9,036,028
Erie Indemnity Co., Class A		1,659		126,266
Markel Corp. *		569		232,124
RenaissanceRe Holdings Ltd.		3,103		223,292
The Progressive Corp.		36,266		776,818
White Mountains Insurance Group Ltd.		363		180,128

				10,734,703

Materials 4.9%
Airgas, Inc.		4,029		331,708
Albemarle Corp.		5,340		355,217
Alcoa, Inc.		63,730		648,134
Allegheny Technologies, Inc.		6,291		275,986
Allied Nevada Gold Corp. *		4,769		164,101
AptarGroup, Inc.		3,707		195,655
Ashland, Inc.		4,503		286,211
Ball Corp.		9,803		392,904
CF Industries Holdings, Inc.		4,266		793,476
Cliffs Natural Resources, Inc.		8,769		556,656
Crown Holdings, Inc. *		9,255		342,157
Ecolab, Inc.		16,231		973,860
FMC Corp.		4,266		422,206
Freeport-McMoRan Copper & Gold, Inc.		56,439		2,402,044
Huntsman Corp.		11,166		152,528
LyondellBasell Industries N.V., Class A		20,343		878,411
Martin Marietta Materials, Inc. (a)		2,710		232,708
Molycorp, Inc. *(a)		3,625		89,538
Monsanto Co.		32,071		2,481,654
Newmont Mining Corp.		28,995		1,722,303
Nucor Corp.		17,091		743,971
Praxair, Inc.		18,249		1,989,141
Reliance Steel & Aluminum Co.		4,370		234,756
Rockwood Holdings, Inc. *		4,030		214,598
Royal Gold, Inc.		3,318		230,435
Sigma-Aldrich Corp.		6,212		445,960
Steel Dynamics, Inc.		12,949		191,775
The Mosaic Co.		16,948		978,747
The Scotts Miracle-Gro Co., Class A (a)		2,610		122,252
United States Steel Corp. (a)		8,593		233,901
Valhi, Inc.		320		18,352
Walter Energy, Inc.		3,792		245,835

				19,347,180

Media 3.6%
AMC Networks, Inc., Class A *		3,441		156,187
Charter Communications, Inc., Class A *		2,249		142,609
Clear Channel Outdoor Holdings, Inc., Class A *		2,506		33,154
Comcast Corp., Class A		165,971		4,876,228
DIRECTV, Class A *		44,272		2,050,679
Discovery Communications, Inc., Series A *		15,835		738,703
DISH Network Corp., Class A		12,366		360,716
John Wiley & Sons, Inc., Class A		3,138		142,465
Liberty Global, Inc., Series A *		16,236		814,722
Liberty Media Corp. - Liberty Capital, Series A *		7,110		639,118
Scripps Networks Interactive, Class A		5,688		257,098
Sirius XM Radio, Inc. *		235,815		532,942
The Washington Post Co., Class B		287		113,049
Time Warner Cable, Inc.		19,197		1,523,090
Viacom, Inc., Class B		31,995		1,523,602
Virgin Media, Inc.		18,048		454,810

				14,359,172

Pharmaceuticals, Biotechnology & Life Sciences 4.7%
Alexion Pharmaceuticals, Inc. *		11,139		932,668
Allergan, Inc.		18,486		1,656,161
Amgen, Inc.		52,614		3,575,121
Biogen Idec, Inc. *		14,694		1,711,410
Celgene Corp. *		27,520		2,017,904
Covance, Inc. *		3,792		180,992
Endo Pharmaceuticals Holdings, Inc. *		6,912		256,228
Gilead Sciences, Inc. *		45,057		2,050,094
Human Genome Sciences, Inc. *		11,912		93,867
Illumina, Inc. *		7,382		378,328
Life Technologies Corp. *		10,741		508,157
Mettler-Toledo International, Inc. *		2,133		384,537
Mylan, Inc. *		25,553		598,962

48 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
PerkinElmer, Inc.		6,989		188,703
Perrigo Co.		5,062		521,690
Regeneron Pharmaceuticals, Inc. *		4,349		455,732
Techne Corp.		2,133		152,701
Thermo Fisher Scientific, Inc. *		22,991		1,301,750
United Therapeutics Corp. *		3,318		158,368
Vertex Pharmaceuticals, Inc. *		12,361		481,090
Warner Chilcott plc, Class A *		10,344		173,055
Waters Corp. *		5,476		490,650
Watson Pharmaceuticals, Inc. *		7,624		444,632

				18,712,800

Real Estate 2.4%
Alexandria Real Estate Equities, Inc.		3,669		263,031
American Tower Corp.		23,567		1,474,823
AvalonBay Communities, Inc.		5,688		737,563
Boston Properties, Inc.		8,769		890,492
CBRE Group, Inc. *		17,631		323,176
Digital Realty Trust, Inc.		6,285		455,662
Essex Property Trust, Inc.		2,133		298,599
Federal Realty Investment Trust		3,792		361,567
Jones Lang LaSalle, Inc.		2,607		212,236
Public Storage		8,532		1,143,885
Simon Property Group, Inc.		17,775		2,408,157
SL Green Realty Corp.		5,067		385,345
The Macerich Co.		7,834		422,958

				9,377,494

Retailing 5.7%
Advance Auto Parts, Inc.		4,503		384,421
Amazon.com, Inc. *		21,330		3,832,788
AutoZone, Inc. *		1,896		710,014
Bed Bath & Beyond, Inc. *		14,931		891,978
Best Buy Co., Inc.		17,696		437,091
CarMax, Inc. *		13,746		421,865
Dick’s Sporting Goods, Inc.		5,373		240,495
Dollar General Corp. *		7,356		309,393
Dollar Tree, Inc. *		7,347		650,283
Family Dollar Stores, Inc.		6,642		358,602
GameStop Corp., Class A (a)		8,223		187,320
Groupon, Inc. *(a)		1,901		37,478
Guess?, Inc.		4,029		139,605
Kohl’s Corp.		15,232		756,726
Liberty Interactive Corp., Series A *		36,089		677,030
LKQ Corp. *		8,732		278,201
Lowe’s Cos., Inc.		75,615		2,145,954
Netflix, Inc. *		3,318		367,402
Nordstrom, Inc.		9,886		530,087
O’Reilly Automotive, Inc. *		7,821		676,516
PetSmart, Inc.		6,762		376,914
Priceline.com, Inc. *		3,081		1,931,849
Ross Stores, Inc.		14,220		758,353
Sears Holdings Corp. *(a)		2,757		192,053
Target Corp.		36,807		2,086,589
The Sherwin-Williams Co.		5,264		542,982
The TJX Cos., Inc.		45,228		1,655,797
Tiffany & Co.		7,655		497,651
Tractor Supply Co.		4,283		366,068
Urban Outfitters, Inc. *		7,283		206,764

				22,648,269

Semiconductors & Semiconductor Equipment 1.2%
Altera Corp.		19,437		747,352
Atmel Corp. *		25,961		262,466
Broadcom Corp., Class A *		28,046		1,041,909
Cree, Inc. *		6,949		210,485
Lam Research Corp. *		7,393		308,288
Marvell Technology Group Ltd. *		31,119		466,785
NVIDIA Corp. *		35,688		540,673
ON Semiconductor Corp. *		26,638		241,607
Skyworks Solutions, Inc. *		11,106		299,529
Xilinx, Inc.		15,905		587,372

				4,706,466

Software & Services 14.5%
Accenture plc, Class A		41,712		2,483,532
Activision Blizzard, Inc.		25,393		303,446
Adobe Systems, Inc. *		29,521		970,946
Akamai Technologies, Inc. *		11,161		401,796
Alliance Data Systems Corp. *		3,081		373,910
ANSYS, Inc. *		5,464		345,216
Autodesk, Inc. *		13,616		515,366
Automatic Data Processing, Inc.		29,531		1,604,124
BMC Software, Inc. *		10,208		382,187
Broadridge Financial Solutions, Inc.		7,232		176,027
CA, Inc.		22,185		599,661
Citrix Systems, Inc. *		11,254		841,124
Cognizant Technology Solutions Corp., Class A *		18,249		1,294,767
eBay, Inc. *		66,435		2,374,387
Electronic Arts, Inc. *		20,043		327,302
Equinix, Inc. *		2,844		398,672
FactSet Research Systems, Inc.		2,457		214,742
Fidelity National Information Services, Inc.		15,469		490,831
Fiserv, Inc. *		8,532		565,672
Genpact Ltd. *		6,266		100,381
Global Payments, Inc.		4,811		248,344
Google, Inc., Class A *		15,013		9,281,787
IAC/InterActiveCorp		4,420		201,552
Informatica Corp. *		6,330		311,183
Intuit, Inc.		16,371		946,899
LinkedIn Corp., Class A *		990		86,001
MasterCard, Inc., Class A		6,181		2,596,020
Microsoft Corp.		450,063		14,285,000
Nuance Communications, Inc. *		13,655		353,938
Oracle Corp.		234,393		6,860,683
Rackspace Hosting, Inc. *		6,458		337,366
Red Hat, Inc. *		11,559		571,708
Rovi Corp. *		6,576		233,316
Salesforce.com, Inc. *		7,347		1,051,796
Solera Holdings, Inc.		4,199		201,552
Symantec Corp. *		44,339		791,008
TIBCO Software, Inc. *		9,954		288,367
Visa, Inc., Class A		29,151		3,392,302
VMware, Inc., Class A *		3,866		382,309
Zynga, Inc. *(a)		5,925		78,032

				57,263,252

See financial notes 49

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Technology Hardware & Equipment 15.3%
Acme Packet, Inc. *		3,255		99,212
Agilent Technologies, Inc. *		20,697		902,803
Amphenol Corp., Class A		9,954		557,026
Apple, Inc. *		55,812		30,274,661
Arrow Electronics, Inc. *		6,697		268,885
Cisco Systems, Inc.		323,742		6,435,991
Corning, Inc.		93,822		1,223,439
Dell, Inc. *		96,423		1,668,118
Dolby Laboratories, Inc., Class A *		3,151		119,959
EMC Corp. *		122,367		3,388,342
F5 Networks, Inc. *		4,977		621,926
FLIR Systems, Inc.		9,489		248,327
Harris Corp.		6,940		302,792
Hewlett-Packard Co.		119,176		3,016,345
Ingram Micro, Inc., Class A *		9,185		175,709
JDS Uniphase Corp. *		13,746		179,248
Juniper Networks, Inc. *		31,659		720,559
Motorola Mobility Holdings, Inc. *		17,645		700,506
NCR Corp. *		9,640		209,381
NetApp, Inc. *		22,122		951,246
Polycom, Inc. *		10,326		213,232
QUALCOMM, Inc.		100,962		6,277,817
Riverbed Technology, Inc. *		9,208		262,152
Teradata Corp. *		10,191		678,211
Trimble Navigation Ltd. *		7,584		381,399
Western Digital Corp. *		13,804		541,807

				60,419,093

Telecommunication Services 0.4%
Clearwire Corp., Class A *		6,776		15,585
Crown Castle International Corp. *		14,596		756,219
MetroPCS Communications, Inc. *		18,908		194,753
NII Holdings, Inc. *		10,148		181,446
SBA Communications Corp., Class A *		6,684		313,680
United States Cellular Corp. *		867		37,402

				1,499,085

Transportation 3.1%
C.H. Robinson Worldwide, Inc.		9,837		650,914
CSX Corp.		62,969		1,322,979
Delta Air Lines, Inc. *		50,691		497,279
Expeditors International of Washington, Inc.		13,035		568,717
FedEx Corp.		17,631		1,586,614
Hertz Global Holdings, Inc. *		14,171		202,645
J.B. Hunt Transport Services, Inc.		5,801		297,069
Kansas City Southern *		6,636		461,733
Southwest Airlines Co.		46,701		419,375
Union Pacific Corp.		29,151		3,213,898
United Parcel Service, Inc., Class B		41,712		3,207,235

				12,428,458

Utilities 0.6%
Calpine Corp. *		23,098		353,630
EQT Corp.		8,931		473,521
ITC Holdings Corp.		3,318		250,443
NRG Energy, Inc. *		14,801		253,097
ONEOK, Inc.		5,925		489,642
The AES Corp. *		46,162		625,957

				2,446,290

Total Common Stock
(Cost $350,377,717)				394,269,513




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		208,246		208,246

Total Other Investment Company
(Cost $208,246)				208,246



End of Investments



Collateral Invested for Securities on Loan 0.2% of net assets


State Street Institutional U.S. Government Money Market Fund		876,527		876,527

Total Collateral Invested for Securities on Loan
(Cost $876,527)				876,527



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $350,806,215 and the unrealized appreciation and depreciation were $55,197,226 and ($11,525,682), respectively, with a net unrealized appreciation of $43,671,544.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Issuer is affiliated with the fund’s adviser.

50 See financial notes

Schwab U.S. Large-Cap Growth ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$394,269,513		$—		$—		$394,269,513
Other Investment Company(a)		208,246		—		—		208,246

Total		$394,477,759		$—		$—		$394,477,759

Other Financial Instruments
Collateral Invested for Securities on Loan		$876,527		$—		$—		$876,527


(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

See financial notes 51

Schwab U.S. Large-Cap Growth ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $349,572,529) including securities on loan of $896,096		$393,620,600
Investment in affiliated issuer, at value (cost $1,013,434)		$857,159
Collateral invested for securities on loan		876,527
Receivables:
Dividends		454,426
Income from securities on loan	+	4,522

Total assets		395,813,234

Liabilities

Collateral held for securities on loan		876,527
Payables:
Investment adviser fees	+	4,221

Total liabilities		880,748

Net Assets

Total assets		395,813,234
Total liabilities	−	880,748

Net assets		$394,932,486

Net Assets by Source
Capital received from investors		346,493,793
Net investment income not yet distributed		630,887
Net realized capital gains		3,904,992
Net unrealized capital gains		43,902,814

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$394,932,486

11,850,001

$33.33

52 See financial notes

Schwab U.S. Large-Cap Growth ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (including $7,067 from affiliated issuer and net of foreign withholding tax of $13,206)		$2,137,133
Interest		98
Securities on loan	+	18,962

Total investment income		2,156,193

Expenses

Investment adviser fees		215,554

Total expenses	−	215,554

Net investment income		1,940,639

Realized and Unrealized Gains (Losses)

Net realized losses on investments (including $51 gains from affiliated issuer)		(1,678,227	)
Net realized gains on in-kind redemptions	+	7,514,883

Net realized gains		5,836,656
Net unrealized gains on investments (including $95,030 gains from affiliated issuer)	+	37,788,324

Net realized and unrealized gains		43,624,980

Net increase in net assets resulting from operations		$45,565,619

See financial notes 53

Schwab U.S. Large-Cap Growth ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$1,940,639			$2,375,687
Net realized gains		5,836,656			4,511,853
Net unrealized gains	+	37,788,324			13,838,390

Net increase in net assets resulting from operations		45,565,619			20,725,930

Distributions to Shareholders

Distributions from net investment income		($1,980,565	)		($1,857,920	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

2,550,000

$77,832,882

7,100,000

$214,473,454

Shares Redeemed

(1,200,000

)

(35,640,197

)

(1,100,000

)

(33,132,421

)

Net transactions in fund shares

1,350,000

$42,192,685

6,000,000

$181,341,033

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

10,500,001

$309,154,747

4,500,001

$108,945,704

Total increase

1,350,000

85,777,739

6,000,000

200,209,043

End of period

11,850,001

$394,932,486

10,500,001

$309,154,747

Net investment income not yet distributed

$630,887

$670,813

54 See financial notes

Schwab U.S. Large-Cap Value ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			12/9/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		27.34			24.36			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.41			0.70			0.47
Net realized and unrealized gains (losses)		2.97			2.99			(0.78	)

Total from investment operations		3.38			3.69			(0.31	)
Less distributions:
Distributions from net investment income		(0.39	)		(0.71	)		(0.33	)

Net asset value at end of period		30.33			27.34			24.36

Total return (%)		12.55	²		15.12			(1.29	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.13			0.14	^3,4
Gross operating expenses		0.13	³		0.13			0.14	³
Net investment income (loss)		3.04	³		2.68			2.98	³
Portfolio turnover rate⁵		5	²		7			5	²
Net assets, end of period ($ x 1,000)		306,324			241,994			84,052

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁵ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 55

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.7%	Common Stock		281,111,776		305,227,306
	0	.0%	Rights		—		—
	0	.0%	Other Investment Company		107,655		107,655


	99	.7%	Total Investments		281,219,431		305,334,961
	0	.0%	Collateral Invested for Securities on Loan		88,713		88,713
	0	.3%	Other Assets and Liabilities, Net				900,325


	100	.0%	Net Assets				306,323,999


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Automobiles & Components 1.2%
Ford Motor Co.		169,074		2,093,136
General Motors Co. *		25,654		667,517
Harley-Davidson, Inc.		10,504		489,276
Lear Corp.		4,646		210,046
TRW Automotive Holdings Corp. *		4,646		212,508

				3,672,483

Banks 4.7%
BB&T Corp.		30,718		898,502
BOK Financial Corp.		1,163		62,430
City National Corp.		2,222		104,434
Comerica, Inc.		8,888		263,885
Commerce Bancshares, Inc.		3,636		140,386
Cullen/Frost Bankers, Inc.		2,626		148,316
First Republic Bank *		3,466		103,945
Huntington Bancshares, Inc.		38,178		223,150
KeyCorp		42,438		343,748
M&T Bank Corp.		5,656		461,643
New York Community Bancorp, Inc.		19,464		253,227
People’s United Financial, Inc.		16,023		201,729
PNC Financial Services Group, Inc.		23,432		1,394,673
Regions Financial Corp.		55,613		320,331
TFS Financial Corp. *		4,444		41,551
U.S. Bancorp		85,244		2,506,174
Wells Fargo & Co.		222,806		6,971,600

				14,439,724

Capital Goods 8.0%
3M Co.		28,684		2,512,718
Eaton Corp.		14,955		780,501
Fortune Brands Home & Security, Inc. *		6,681		129,211
General Dynamics Corp.		13,332		976,302
General Electric Co.		471,872		8,989,162
Honeywell International, Inc.		31,916		1,901,236
Hubbell, Inc., Class B		2,626		197,528
Ingersoll-Rand plc		13,865		552,936
L-3 Communications Holdings, Inc.		4,848		340,572
Lockheed Martin Corp.		11,514		1,017,953
Masco Corp.		16,021		190,329
Northrop Grumman Corp.		10,908		652,407
Owens Corning, Inc. *		5,080		160,782
Parker Hannifin Corp.		6,716		603,164
Pentair, Inc.		4,447		171,210
Raytheon Co.		15,378		776,897
Rockwell Automation, Inc.		6,464		516,991
Tyco International Ltd.		20,806		1,078,167
United Technologies Corp.		35,350		2,964,804

				24,512,870

Commercial & Professional Services 0.6%
Avery Dennison Corp.		4,848		147,864
Cintas Corp.		5,050		194,728
Covanta Holding Corp.		5,454		89,064
Iron Mountain, Inc.		7,528		233,744
Pitney Bowes, Inc.		8,302		150,515
R.R. Donnelley & Sons Co. (a)		8,484		117,249
Republic Services, Inc.		13,479		402,079
Waste Management, Inc.		17,795		622,469

				1,957,712

Consumer Durables & Apparel 0.9%
D.R. Horton, Inc.		12,322		176,698
Garmin Ltd. (a)		5,470		258,129
Hasbro, Inc.		5,454		192,635
Leggett & Platt, Inc.		6,464		146,280
Lennar Corp., Class A		7,328		171,329
Mattel, Inc.		15,150		491,466
Newell Rubbermaid, Inc.		12,963		237,223
Toll Brothers, Inc. *		6,630		155,540
Tupperware Brands Corp.		2,629		164,812
VF Corp.		3,838		560,540
Whirlpool Corp.		3,439		259,885

				2,814,537

Consumer Services 2.0%
Carnival Corp.		17,813		539,556
H&R Block, Inc.		13,534		220,604
International Game Technology		13,332		200,247
McDonald’s Corp.		46,056		4,572,440
Royal Caribbean Cruises Ltd.		6,060		172,649
Wyndham Worldwide Corp.		6,868		302,123

				6,007,619

Diversified Financials 8.8%
American Express Co.		45,854		2,425,218
Ameriprise Financial, Inc.		10,100		563,176

56 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Bank of America Corp.		449,248		3,580,507
Capital One Financial Corp.		20,402		1,032,341
CIT Group, Inc. *		8,919		363,092
Citigroup, Inc.		129,280		4,307,610
CME Group, Inc.		2,836		820,994
Eaton Vance Corp.		5,454		157,130
Invesco Ltd.		19,796		490,347
Jefferies Group, Inc.		6,308		105,470
JPMorgan Chase & Co.		169,478		6,650,317
Legg Mason, Inc.		6,060		165,983
LPL Investment Holdings, Inc. *		1,818		61,994
Morgan Stanley		59,299		1,099,403
Northern Trust Corp.		9,696		430,599
NYSE Euronext		11,514		342,772
Raymond James Financial, Inc.		4,445		157,220
SEI Investments Co.		6,467		127,723
SLM Corp.		22,826		359,738
TD Ameritrade Holding Corp.		10,100		188,567
The Bank of New York Mellon Corp.		55,092		1,218,084
The Goldman Sachs Group, Inc.		18,988		2,186,278

				26,834,563

Energy 13.5%
Apache Corp.		17,170		1,853,158
Chesapeake Energy Corp.		29,256		731,400
Chevron Corp.		89,688		9,786,755
ConocoPhillips		55,146		4,221,426
Devon Energy Corp.		17,574		1,288,350
El Paso Corp.		34,138		949,378
EXCO Resources, Inc. (a)		6,868		48,969
Exxon Mobil Corp.		214,120		18,521,380
Forest Oil Corp. *		5,086		65,762
Marathon Oil Corp.		31,551		1,069,263
Southern Union Co.		5,252		230,773
Spectra Energy Corp.		28,886		906,443
The Williams Cos., Inc.		25,856		772,577
Tidewater, Inc.		2,222		132,209
Valero Energy Corp.		25,250		618,372
WPX Energy, Inc. *		8,605		156,267

				41,352,482

Food & Staples Retailing 0.6%
Safeway, Inc.		15,362		329,515
Sysco Corp.		26,462		778,512
The Kroger Co.		24,846		591,086

				1,699,113

Food, Beverage & Tobacco 8.7%
Altria Group, Inc.		92,920		2,796,892
Archer-Daniels-Midland Co.		27,270		850,824
Beam, Inc.		6,807		374,930
Campbell Soup Co.		8,888		296,148
Coca-Cola Enterprises, Inc.		13,851		400,294
ConAgra Foods, Inc.		18,382		482,527
Constellation Brands, Inc., Class A *		8,484		185,291
Corn Products International, Inc.		3,434		196,940
Dr. Pepper Snapple Group, Inc.		9,519		362,198
General Mills, Inc.		26,866		1,029,236
H.J. Heinz Co.		14,342		755,967
Hormel Foods Corp.		6,464		184,030
Kellogg Co.		10,908		571,034
Kraft Foods, Inc., Class A		73,326		2,791,521
McCormick & Co., Inc.		5,871		296,192
Molson Coors Brewing Co., Class B		6,889		302,703
Philip Morris International, Inc.		78,376		6,545,963
Reynolds American, Inc.		14,948		626,770
Smithfield Foods, Inc. *		6,868		160,917
The Coca-Cola Co.		93,122		6,505,503
The Hershey Co.		7,070		429,149
The J.M. Smucker Co.		5,050		380,366
Tyson Foods, Inc., Class A		12,928		244,468

				26,769,863

Health Care Equipment & Services 1.1%
Boston Scientific Corp. *		65,823		409,419
Cardinal Health, Inc.		15,352		637,876
CIGNA Corp.		12,726		561,344
Humana, Inc.		7,272		633,391
Omnicare, Inc.		5,078		178,644
WellPoint, Inc.		15,554		1,020,809

				3,441,483

Household & Personal Products 3.4%
Avon Products, Inc.		19,190		358,661
Kimberly-Clark Corp.		17,446		1,271,465
The Clorox Co.		5,918		400,116
The Procter & Gamble Co.		122,816		8,292,536

				10,322,778

Insurance 4.9%
ACE Ltd.		15,150		1,086,406
Aflac, Inc.		21,210		1,002,172
Allied World Assurance Co. Holdings AG		1,621		106,937
American Financial Group, Inc.		3,859		144,520
American International Group, Inc. *		19,190		560,732
Aon Corp.		14,544		680,805
Arch Capital Group Ltd. *		5,886		218,076
Assurant, Inc.		4,242		180,158
Assured Guaranty Ltd.		7,752		130,234
Axis Capital Holdings Ltd.		5,858		180,719
Brown & Brown, Inc.		5,252		124,105
Cincinnati Financial Corp.		6,667		234,478
CNA Financial Corp.		1,414		39,889
Everest Re Group Ltd.		2,020		177,457
Fidelity National Financial, Inc., Class A		9,736		168,043
Genworth Financial, Inc., Class A *		21,836		198,489
Hartford Financial Services Group, Inc.		19,594		405,792
HCC Insurance Holdings, Inc.		5,050		154,227
Lincoln National Corp.		13,535		336,209
Loews Corp.		15,352		600,877
Marsh & McLennan Cos., Inc.		24,038		749,986
MetLife, Inc.		36,562		1,409,465
Old Republic International Corp.		11,202		121,654
PartnerRe Ltd.		3,030		192,223
Principal Financial Group, Inc.		13,130		363,176
Prudential Financial, Inc.		21,614		1,321,912

See financial notes 57

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Reinsurance Group of America, Inc.		3,274		188,812
The Allstate Corp.		21,115		663,644
The Chubb Corp.		12,354		839,578
The Travelers Cos., Inc.		18,382		1,065,605
Torchmark Corp.		4,668		226,118
Transatlantic Holdings, Inc.		2,828		171,377
Unum Group		12,989		299,396
Validus Holdings Ltd.		3,232		98,544
W.R. Berkley Corp.		4,982		178,107
XL Group plc		14,221		295,797

				14,915,719

Materials 2.9%
Air Products & Chemicals, Inc.		8,888		802,053
Bemis Co., Inc.		4,646		145,745
Celanese Corp., Series A		6,872		326,901
E.I. du Pont de Nemours & Co.		41,612		2,115,970
Eastman Chemical Co.		5,747		311,085
International Flavors & Fragrances, Inc.		3,636		207,361
International Paper Co.		17,978		631,927
MeadWestvaco Corp.		7,676		232,429
Owens-Illinois, Inc. *		7,474		178,629
PPG Industries, Inc.		7,070		645,138
Sealed Air Corp.		8,484		166,541
Sonoco Products Co.		4,447		146,040
Southern Copper Corp.		7,757		249,475
The Dow Chemical Co.		52,924		1,773,483
The Valspar Corp.		3,838		177,891
Titanium Metals Corp.		3,646		53,450
Vulcan Materials Co.		5,257		234,252
Weyerhaeuser Co.		23,836		497,934

				8,896,304

Media 3.1%
Cablevision Systems Corp., Class A		10,504		149,472
CBS Corp., Class B		27,876		833,492
Gannett Co., Inc.		10,998		163,210
News Corp., Class A		103,424		2,055,035
Omnicom Group, Inc.		12,322		609,200
The Interpublic Group of Cos., Inc.		20,487		240,108
The McGraw-Hill Cos., Inc.		13,026		606,230
The Walt Disney Co.		76,962		3,231,634
Time Warner, Inc.		44,484		1,655,250

				9,543,631

Pharmaceuticals, Biotechnology & Life Sciences 9.4%
Abbott Laboratories		69,488		3,933,716
Bristol-Myers Squibb Co.		76,558		2,462,871
Eli Lilly & Co.		43,632		1,712,120
Forest Laboratories, Inc. *		11,312		367,866
Johnson & Johnson		122,008		7,940,281
Merck & Co., Inc.		136,956		5,227,610
Pfizer, Inc.		343,602		7,250,002

				28,894,466

Real Estate 2.8%
American Capital Agency Corp.		9,696		297,764
Annaly Capital Management, Inc.		43,228		718,449
BRE Properties, Inc.		3,434		166,309
Brookfield Office Properties, Inc.		11,514		200,919
Camden Property Trust		3,232		200,384
Chimera Investment Corp.		44,688		137,192
DDR Corp.		10,100		142,713
Equity Residential		13,130		746,966
General Growth Properties, Inc.		17,074		277,794
HCP, Inc.		18,180		718,110
Health Care REIT, Inc.		8,484		461,869
Host Hotels & Resorts, Inc.		31,363		494,908
Kimco Realty Corp.		18,180		334,149
Liberty Property Trust		5,071		172,008
Piedmont Office Realty Trust, Inc., Class A		7,694		135,568
Plum Creek Timber Co., Inc.		7,272		284,772
ProLogis, Inc.		20,402		686,731
Rayonier, Inc.		5,454		242,812
Realty Income Corp.		5,908		217,946
Regency Centers Corp.		4,040		172,872
Rouse Properties, Inc. *		638		9,334
UDR, Inc.		9,898		247,648
Ventas, Inc.		12,928		722,934
Vornado Realty Trust		8,282		676,888

				8,467,039

Retailing 2.2%
Abercrombie & Fitch Co., Class A		3,911		179,085
American Eagle Outfitters, Inc.		8,490		123,445
AutoNation, Inc. *		1,542		52,551
Expedia, Inc.		4,444		151,318
Genuine Parts Co.		7,070		443,148
J.C. Penney Co., Inc.		6,666		263,974
Limited Brands, Inc.		11,314		526,440
Macy’s, Inc.		18,988		720,974
Staples, Inc.		31,512		461,966
The Gap, Inc.		11,341		264,926
The Home Depot, Inc.		68,680		3,267,107
TripAdvisor, Inc. *		4,444		143,230

				6,598,164

Semiconductors & Semiconductor Equipment 3.6%
Advanced Micro Devices, Inc. *		24,867		182,772
Analog Devices, Inc.		13,130		514,827
Applied Materials, Inc.		58,689		718,353
Intel Corp.		226,846		6,097,621
KLA-Tencor Corp.		7,474		361,742
Linear Technology Corp.		9,494		317,859
LSI Corp. *		24,851		213,719
Maxim Integrated Products, Inc.		13,130		366,196
Microchip Technology, Inc.		8,484		306,018
Micron Technology, Inc. *		38,380		328,149
Texas Instruments, Inc.		50,764		1,692,979

				11,100,235

Software & Services 0.9%
Computer Sciences Corp.		6,868		218,128
Paychex, Inc.		14,544		455,227
SAIC, Inc. *		15,156		185,206
Synopsys, Inc. *		6,464		196,958

58 See financial notes

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Total System Services, Inc.		8,686		190,050
VeriSign, Inc.		7,071		261,273
Western Union Co.		27,508		480,565
Yahoo!, Inc. *		52,924		784,863

				2,772,270

Technology Hardware & Equipment 4.5%
Avnet, Inc. *		6,580		235,169
International Business Machines Corp.		52,722		10,371,999
Jabil Circuit, Inc.		8,701		224,747
Molex, Inc.		6,666		180,649
Motorola Solutions, Inc.		12,735		634,203
SanDisk Corp. *		10,504		519,528
Seagate Technology plc		18,630		489,224
TE Connectivity Ltd.		19,190		701,394
Xerox Corp.		61,633		507,239

				13,864,152

Telecommunication Services 4.9%
AT&T, Inc.		264,822		8,100,905
CenturyLink, Inc.		27,270		1,097,617
Frontier Communications Corp. (a)		44,305		203,360
Sprint Nextel Corp. *		131,255		324,200
Telephone & Data Systems, Inc.		4,607		116,419
Verizon Communications, Inc.		126,856		4,834,482
Windstream Corp.		25,452		307,460

				14,984,443

Transportation 0.5%
Norfolk Southern Corp.		15,150		1,043,835
United Continental Holdings, Inc. *		14,746		304,505

				1,348,340

Utilities 6.5%
AGL Resources, Inc.		5,050		201,344
Alliant Energy Corp.		4,848		206,719
Ameren Corp.		10,706		343,341
American Electric Power Co., Inc.		21,412		805,305
American Water Works Co., Inc.		7,878		270,058
Aqua America, Inc.		6,288		139,657
Atmos Energy Corp.		3,838		117,942
CenterPoint Energy, Inc.		17,574		342,517
CMS Energy Corp.		11,312		242,190
Consolidated Edison, Inc.		13,130		762,853
Constellation Energy Group, Inc.		7,878		285,656
Dominion Resources, Inc.		25,452		1,284,562
DTE Energy Co.		7,491		404,439
Duke Energy Corp.		58,587		1,225,640
Edison International		13,332		558,211
Energen Corp.		3,232		172,039
Entergy Corp.		7,878		524,911
Exelon Corp.		29,318		1,145,454
FirstEnergy Corp.		18,584		823,085
Integrys Energy Group, Inc.		3,439		178,931
MDU Resources Group, Inc.		7,878		170,953
National Fuel Gas Co.		3,458		174,041
NextEra Energy, Inc.		18,786		1,117,955
NiSource, Inc.		12,524		300,576
Northeast Utilities		7,686		275,927
NSTAR		4,646		217,897
NV Energy, Inc.		10,504		164,703
OGE Energy Corp.		4,309		226,136
Pepco Holdings, Inc.		10,109		196,519
PG&E Corp.		17,978		749,323
Pinnacle West Capital Corp.		4,848		228,001
PPL Corp.		25,654		732,422
Progress Energy, Inc.		12,928		686,218
Public Service Enterprise Group, Inc.		22,624		696,367
Questar Corp.		7,945		152,703
SCANA Corp.		5,252		236,340
Sempra Energy		9,898		586,358
TECO Energy, Inc.		9,090		163,166
The Southern Co.		38,380		1,696,012
UGI Corp.		5,050		142,663
Westar Energy, Inc.		5,252		144,535
Wisconsin Energy Corp.		10,302		351,092
Xcel Energy, Inc.		21,614		572,555

				20,017,316

Total Common Stock
(Cost $281,111,776)				305,227,306




Rights 0.0% of net assets

Real Estate 0.0%
Rouse Properties, Inc. *(b)(c)		626		—

Total Rights
(Cost $—)				—




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		107,655		107,655

Total Other Investment Company
(Cost $107,655)				107,655



End of Investments



Collateral Invested for Securities on Loan 0.0% of net assets


State Street Institutional U.S. Government Money Market Fund		88,713		88,713

Total Collateral Invested for Securities on Loan
(Cost $88,713)				88,713



End of Collateral Invested for Securities on Loan

See financial notes 59

Schwab U.S. Large-Cap Value ETF

Portfolio Holdings (Unaudited) continued

At 2/29/12, the tax basis cost of the fund’s investments was $281,504,877 and the unrealized appreciation and depreciation were $30,967,482 and ($7,137,398), respectively, with a net unrealized appreciation $23,830,084.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.
(c)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$305,227,306		$—		$—		$305,227,306
Rights(a)		—		—		—		—
Other Investment Company(a)		107,655		—		—		107,655

Total		$305,334,961		$—		$—		$305,334,961

Other Financial Instruments
Collateral Invested for Securities on Loan		$88,713		$—		$—		$88,713


(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

60 See financial notes

Schwab U.S. Large-Cap Value ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $281,219,431) including securities on loan of $185,486		$305,334,961
Collateral invested for securities on loan		88,713
Receivables:
Dividends		991,377
Foreign tax reclaims		691
Income from securities on loan	+	238

Total assets		306,415,980

Liabilities

Collateral held for securities on loan		88,713
Payables:
Investment adviser fees	+	3,268

Total liabilities		91,981

Net Assets

Total assets		306,415,980
Total liabilities	−	91,981

Net assets		$306,323,999

Net Assets by Source
Capital received from investors		280,038,845
Net investment income not yet distributed		1,515,917
Net realized capital gains		620,479
Net unrealized capital gains		24,148,758

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$306,323,999

10,100,001

$30.33

See financial notes 61

Schwab U.S. Large-Cap Value ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (net of foreign withholding tax of $1,576)		$4,032,376
Interest		99
Securities on loan	+	1,491

Total investment income		4,033,966

Expenses

Investment adviser fees		165,649

Total expenses	−	165,649

Net investment income		3,868,317

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(1,727,435	)
Net realized gains on in-kind redemptions	+	3,030,772

Net realized gains		1,303,337
Net unrealized gains on investments	+	25,952,468

Net realized and unrealized gains		27,255,805

Net increase in net assets resulting from operations		$31,124,122

62 See financial notes

Schwab U.S. Large-Cap Value ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$3,868,317			$4,681,204
Net realized gains		1,303,337			599,859
Net unrealized gains	+	25,952,468			2,436,722

Net increase in net assets resulting from operations		31,124,122			7,717,785

Distributions to Shareholders

Distributions from net investment income		($3,499,291	)		($4,010,596	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

2,050,000

$58,360,750

5,800,000

$165,268,749

Shares Redeemed

(800,000

)

(21,655,415

)

(400,000

)

(11,034,472

)

Net transactions in fund shares

1,250,000

$36,705,335

5,400,000

$154,234,277

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

8,850,001

$241,993,833

3,450,001

$84,052,367

Total increase

1,250,000

64,330,166

5,400,000

157,941,466

End of period

10,100,001

$306,323,999

8,850,001

$241,993,833

Net investment income not yet distributed

$1,515,917

$1,146,891

See financial notes 63

Schwab U.S. Mid-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			1/12/11¹–
	2/29/12*			8/31/11


Per-Share Data ($)

Net asset value at beginning of period		23.75			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.16			0.18
Net realized and unrealized gains (losses)		3.14			(1.29	)

Total from investment operations		3.30			(1.11	)
Less distributions:
Distributions from net investment income		(0.15	)		(0.14	)

Net asset value at end of period		26.90			23.75

Total return (%)		13.99	²		(4.49	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	³		0.13	³
Gross operating expenses		0.13	³		0.13	³
Net investment income (loss)		1.46	³		1.18	³
Portfolio turnover rate⁴		8	²		9	²
Net assets, end of period ($ x 1,000)		197,731			79,550

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

64 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.9%	Common Stock		189,631,768		197,473,843
	0	.0%	Other Investment Company		63,088		63,088


	99	.9%	Total Investments		189,694,856		197,536,931
	1	.1%	Collateral Invested for Securities on Loan		2,177,289		2,177,289
	(1	.0)%	Other Assets and Liabilities, Net				(1,982,992	)


	100	.0%	Net Assets				197,731,228


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 1.4%
Gentex Corp.		16,758		396,327
Lear Corp.		12,054		544,961
The Goodyear Tire & Rubber Co. *		28,959		372,413
TRW Automotive Holdings Corp. *		12,201		558,074
Visteon Corp. *		6,027		323,770
WABCO Holdings, Inc. *		8,085		480,977

				2,676,522

Banks 3.6%
Associated Banc-Corp		20,357		269,527
Bank of Hawaii Corp.		5,586		256,956
BankUnited, Inc.		4,704		108,333
BOK Financial Corp.		3,234		173,601
Capitol Federal Financial, Inc.		19,698		230,270
City National Corp.		5,733		269,451
Commerce Bancshares, Inc.		9,563		369,227
Cullen/Frost Bankers, Inc.		6,762		381,918
East West Bancorp, Inc.		17,640		390,197
First Citizens BancShares, Inc., Class A		735		129,470
First Horizon National Corp.		31,017		291,560
First Niagara Financial Group, Inc.		34,692		331,655
First Republic Bank *		9,261		277,737
Fulton Financial Corp.		23,520		230,496
Hancock Holding Co.		9,114		309,420
Hudson City Bancorp, Inc.		57,356		392,889
Huntington Bancshares, Inc.		104,370		610,043
People’s United Financial, Inc.		42,397		533,778
Popular, Inc. *		120,188		228,357
Prosperity Bancshares, Inc.		5,586		244,332
TCF Financial Corp.		17,934		193,328
TFS Financial Corp. *		10,500		98,175
Valley National Bancorp		21,903		274,007
Washington Federal, Inc.		13,083		211,945
Zions Bancorp		21,315		404,985

				7,211,657

Capital Goods 10.3%
Acuity Brands, Inc.		4,998		310,826
Aecom Technology Corp. *		12,936		302,056
AGCO Corp. *		11,319		584,400
Air Lease Corp. *		8,379		206,040
Alliant Techsystems, Inc.		3,969		238,140
AMETEK, Inc.		18,963		902,639
Armstrong World Industries, Inc. *		2,646		135,528
BE Aerospace, Inc. *		11,466		525,601
Carlisle Cos., Inc.		7,203		351,506
CLARCOR, Inc.		6,321		319,021
Crane Co.		6,027		292,731
Donaldson Co., Inc.		8,232		604,476
Foster Wheeler AG *		13,725		338,047
Gardner Denver, Inc.		6,027		413,934
Graco, Inc.		7,203		368,650
Harsco Corp.		9,555		212,408
Hubbell, Inc., Class B		6,615		497,580
IDEX Corp.		9,702		405,544
Jacobs Engineering Group, Inc. *		15,141		699,817
KBR, Inc.		17,640		640,685
Kennametal, Inc.		9,555		440,199
Lennox International, Inc.		5,880		230,084
Lincoln Electric Holdings, Inc.		9,996		461,715
Masco Corp.		42,336		502,952
McDermott International, Inc. *		27,411		357,988
MSC Industrial Direct Co., Class A		5,145		408,564
Navistar International Corp. *		8,526		356,216
Nordson Corp.		7,350		404,029
Oshkosh Corp. *		10,731		250,140
Owens Corning, Inc. *		13,524		428,035
Pall Corp.		13,671		867,425
Pentair, Inc.		11,760		452,760
Polypore International, Inc. *(a)		4,851		199,473
Quanta Services, Inc. *		24,696		516,146
Regal-Beloit Corp.		4,557		307,598
Seaboard Corp. *		36		68,872
Snap-On, Inc.		6,909		422,347
Spirit AeroSystems Holdings, Inc., Class A *		13,671		327,557
SPX Corp.		6,027		440,815
Terex Corp. *		12,936		328,445
Textron, Inc.		32,781		901,805
The Babcock & Wilcox Co. *		13,671		351,892
The Shaw Group, Inc. *		8,529		246,829
The Timken Co.		9,408		492,979
Thomas & Betts Corp. *		6,174		445,948
TransDigm Group, Inc. *		5,439		646,099
URS Corp. *		9,408		410,659
Wabtec Corp.		5,733		428,427
Woodward, Inc.		6,909		302,407

				20,348,034

See financial notes 65

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 3.9%
Avery Dennison Corp.		12,495		381,097
Cintas Corp.		13,230		510,149
Clean Harbors, Inc. *		5,586		375,156
Copart, Inc. *		6,909		343,930
Corrections Corp. of America *		11,674		292,550
Covanta Holding Corp.		13,818		225,648
Equifax, Inc.		14,406		605,628
IHS, Inc., Class A *		5,733		542,170
Iron Mountain, Inc.		20,139		625,316
KAR Auction Services, Inc. *		3,545		56,968
Manpower, Inc.		9,702		417,865
Pitney Bowes, Inc.		22,197		402,432
R.R. Donnelley & Sons Co. (a)		22,050		304,731
Robert Half International, Inc.		17,199		488,968
Rollins, Inc.		8,967		181,671
The Dun & Bradstreet Corp.		5,880		485,982
Towers Watson & Co., Class A		6,321		404,165
Verisk Analytics, Inc., Class A *		16,317		709,789
Waste Connections, Inc.		13,230		430,240

				7,784,455

Consumer Durables & Apparel 4.7%
D.R. Horton, Inc.		32,639		468,043
Deckers Outdoor Corp. *		4,557		340,681
Fossil, Inc. *		6,321		771,036
Hanesbrands, Inc. *		11,466		329,418
Harman International Industries, Inc.		8,232		404,438
Jarden Corp.		10,878		383,667
Leggett & Platt, Inc.		16,905		382,560
Lennar Corp., Class A		18,984		443,846
Michael Kors Holdings Ltd. *		4,851		209,806
Mohawk Industries, Inc. *		6,468		410,783
Newell Rubbermaid, Inc.		34,986		640,244
NVR, Inc. *		588		406,896
Polaris Industries, Inc.		7,644		504,963
PulteGroup, Inc. *		39,690		350,066
PVH Corp.		7,350		624,823
Tempur-Pedic International, Inc. *		7,791		615,489
Toll Brothers, Inc. *		17,787		417,283
Tupperware Brands Corp.		7,203		451,556
Under Armour, Inc., Class A *		4,557		406,667
Whirlpool Corp.		8,967		677,636

				9,239,901

Consumer Services 2.9%
Bally Technologies, Inc. *		4,998		214,614
Brinker International, Inc.		9,450		260,726
Choice Hotels International, Inc.		3,969		149,115
DeVry, Inc.		7,056		250,700
Dunkin’ Brands Group, Inc. *		5,145		149,411
Education Management Corp. *(a)		3,087		55,782
H&R Block, Inc.		37,191		606,213
International Game Technology		35,721		536,530
ITT Educational Services, Inc. *(a)		3,234		221,982
MGM Resorts International *		37,926		522,241
Panera Bread Co., Class A *		3,528		545,358
Penn National Gaming, Inc. *		8,085		344,017
Service Corp. International		26,754		303,390
Sotheby’s		7,938		312,281
The Wendy’s Co.		36,534		185,227
Weight Watchers International, Inc. (a)		3,529		275,191
Wyndham Worldwide Corp.		18,375		808,316

				5,741,094

Diversified Financials 2.5%
Affiliated Managers Group, Inc. *		6,174		656,852
CBOE Holdings, Inc.		10,731		295,854
ETRADE Financial Corp.		30,429		293,031
Eaton Vance Corp.		14,112		406,567
Federated Investors, Inc., Class B (a)		12,201		249,998
Jefferies Group, Inc.		17,199		287,567
Legg Mason, Inc.		16,317		446,923
LPL Investment Holdings, Inc. *		4,704		160,406
MSCI, Inc., Class A *		14,112		499,283
Raymond James Financial, Inc.		12,495		441,948
SEI Investments Co.		17,346		342,584
The NASDAQ OMX Group, Inc. *		16,611		437,534
Waddell & Reed Financial, Inc., Class A		10,290		324,752

				4,843,299

Energy 5.7%
Arch Coal, Inc.		25,284		343,104
Atwood Oceanics, Inc. *		6,615		314,609
Berry Petroleum Co., Class A		6,321		341,081
CARBO Ceramics, Inc. (a)		2,352		215,561
Cobalt International Energy, Inc. *		18,081		543,515
Dresser-Rand Group, Inc. *		8,967		470,947
Dril-Quip, Inc. *		4,263		298,367
EXCO Resources, Inc. (a)		17,717		126,322
Forest Oil Corp. *		13,316		172,176
Helmerich & Payne, Inc.		11,613		711,877
Laredo Petroleum Holdings, Inc. *		2,058		52,211
Oasis Petroleum, Inc. *		8,232		264,000
Oceaneering International, Inc.		12,789		694,059
Oil States International, Inc. *		6,027		489,513
Patterson-UTI Energy, Inc.		18,161		352,687
Plains Exploration & Production Co. *		17,052		751,482
Quicksilver Resources, Inc. *		13,841		76,679
Rowan Cos., Inc. *		14,994		552,829
RPC, Inc. (a)		5,733		91,785
SandRidge Energy, Inc. *		45,141		391,372
SEACOR Holdings, Inc. *		2,646		261,636
SM Energy Co.		7,497		590,164
Southern Union Co.		13,818		607,163
Sunoco, Inc.		12,789		494,039
Superior Energy Services, Inc. *		18,375		539,123
Teekay Corp.		5,145		148,176
Tesoro Corp. *		17,052		452,390
Tidewater, Inc.		6,321		376,100
Unit Corp. *		5,733		272,719
World Fuel Services Corp.		8,379		349,069

				11,344,755

Food, Beverage & Tobacco 1.3%
Constellation Brands, Inc., Class A *		22,344		487,993
Corn Products International, Inc.		8,967		514,257

66 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Dean Foods Co. *		21,609		264,926
Flowers Foods, Inc.		16,177		309,628
Post Holdings, Inc. *		3,234		100,707
Ralcorp Holdings, Inc. *		6,468		482,513
Smithfield Foods, Inc. *		18,081		423,638

				2,583,662

Health Care Equipment & Services 5.1%
Accretive Health, Inc. *(a)		4,704		122,257
Alere, Inc. *		10,290		261,675
Allscripts Healthcare Solutions, Inc. *		21,915		423,398
AMERIGROUP Corp. *		5,733		389,443
Brookdale Senior Living, Inc. *		12,054		224,686
Catalyst Health Solutions, Inc. *		5,145		319,093
Community Health Systems, Inc. *		10,878		274,561
Coventry Health Care, Inc. *		17,640		576,652
DENTSPLY International, Inc.		16,611		642,513
Gen-Probe, Inc. *		5,733		391,449
Health Net, Inc. *		10,440		394,006
Hill-Rom Holdings, Inc.		7,350		249,679
Hologic, Inc. *		31,164		646,030
IDEXX Laboratories, Inc. *		6,615		567,236
LifePoint Hospitals, Inc. *		5,733		223,415
Lincare Holdings, Inc.		10,584		284,286
MEDNAX, Inc. *		5,736		426,701
Omnicare, Inc.		13,671		480,946
Owens & Minor, Inc.		7,644		229,014
Patterson Cos., Inc.		11,613		370,687
Quality Systems, Inc.		4,412		189,142
ResMed, Inc. *		17,493		512,545
STERIS Corp.		6,468		202,966
Teleflex, Inc.		4,851		287,519
Tenet Healthcare Corp. *		51,088		288,647
The Cooper Cos., Inc.		5,586		443,975
Universal Health Services, Inc., Class B		10,878		485,268
VCA Antech, Inc. *		10,143		223,044

				10,130,833

Household & Personal Products 1.4%
Church & Dwight Co., Inc.		17,052		814,062
Energizer Holdings, Inc. *		8,232		629,336
Herbalife Ltd.		13,818		914,890
Nu Skin Enterprises, Inc., Class A		6,909		399,064

				2,757,352

Insurance 6.1%
Alleghany Corp. *(a)		1,029		334,054
Allied World Assurance Co. Holdings AG		4,410		290,928
American Financial Group, Inc.		10,290		385,360
American National Insurance Co.		1,764		127,184
Arch Capital Group Ltd. *		16,170		599,098
Arthur J. Gallagher & Co.		13,230		451,408
Aspen Insurance Holdings Ltd.		8,232		218,395
Assurant, Inc.		11,172		474,475
Assured Guaranty Ltd.		20,874		350,683
Axis Capital Holdings Ltd.		15,435		476,170
Brown & Brown, Inc.		13,671		323,046
Cincinnati Financial Corp.		18,081		635,909
Endurance Specialty Holdings Ltd.		4,853		186,646
Erie Indemnity Co., Class A		3,235		246,216
Everest Re Group Ltd.		5,292		464,902
Fidelity National Financial, Inc., Class A		26,019		449,088
Genworth Financial, Inc., Class A *		57,407		521,830
Hanover Insurance Group, Inc.		5,439		222,020
HCC Insurance Holdings, Inc.		13,083		399,555
Markel Corp. *		1,176		479,749
Mercury General Corp.		3,234		138,674
Old Republic International Corp.		28,518		309,705
PartnerRe Ltd.		7,938		503,587
ProAssurance Corp.		3,528		309,617
Reinsurance Group of America, Inc.		8,820		508,649
RenaissanceRe Holdings Ltd.		6,174		444,281
Torchmark Corp.		12,789		619,499
Transatlantic Holdings, Inc.		7,350		445,410
Validus Holdings Ltd.		8,526		259,958
W.R. Berkley Corp.		13,233		473,080
White Mountains Insurance Group Ltd.		739		366,707

				12,015,883

Materials 8.6%
AbitibiBowater, Inc. *		8,543		130,708
Airgas, Inc.		7,791		641,433
Albemarle Corp.		10,731		713,826
Allegheny Technologies, Inc.		12,936		567,502
Allied Nevada Gold Corp. *		10,143		349,021
AptarGroup, Inc.		7,350		387,933
Ashland, Inc.		8,379		532,569
Bemis Co., Inc.		12,201		382,745
Celanese Corp., Series A		18,669		888,084
Coeur d’Alene Mines Corp. *		10,437		296,828
Compass Minerals International, Inc.		3,823		275,447
Cytec Industries, Inc.		5,880		349,625
Domtar Corp.		4,410		422,787
Eastman Chemical Co.		15,435		835,497
Greif, Inc., Class A		4,704		240,892
Huntsman Corp.		22,932		313,251
International Flavors & Fragrances, Inc.		9,555		544,922
Intrepid Potash, Inc. *		6,174		156,141
Kronos Worldwide, Inc.		2,222		51,928
Martin Marietta Materials, Inc. (a)		5,439		467,047
MeadWestvaco Corp.		20,139		609,809
Molycorp, Inc. *(a)		7,203		177,914
Owens-Illinois, Inc. *		19,551		467,269
Packaging Corp. of America		12,201		361,638
Reliance Steel & Aluminum Co.		8,820		473,810
Rock-Tenn Co., Class A		8,379		590,636
Rockwood Holdings, Inc. *		8,085		430,526
Royal Gold, Inc.		6,468		449,203
RPM International, Inc.		15,582		371,942
Sealed Air Corp.		22,785		447,270
Silgan Holdings, Inc.		5,586		237,517
Sonoco Products Co.		11,760		386,198
Steel Dynamics, Inc.		26,019		385,341
The Scotts Miracle-Gro Co., Class A (a)		4,998		234,106

See financial notes 67

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Valspar Corp.		10,290		476,942
Titanium Metals Corp.		9,702		142,231
United States Steel Corp. (a)		17,052		464,155
Vulcan Materials Co.		13,965		622,280
W.R. Grace & Co. *		7,350		418,656
Walter Energy, Inc.		7,350		476,501
Westlake Chemical Corp.		2,352		141,661

				16,913,791

Media 2.1%
AMC Networks, Inc., Class A *		6,909		313,600
Charter Communications, Inc., Class A *		4,557		288,959
Clear Channel Outdoor Holdings, Inc., Class A *		4,582		60,620
DreamWorks Animation SKG, Inc., Class A *		7,938		137,010
Gannett Co., Inc.		28,242		419,111
John Wiley & Sons, Inc., Class A		6,174		280,300
Lamar Advertising Co., Class A *		6,770		221,379
Liberty Media Corp. - Liberty Capital, Series A *		13,671		1,228,886
Morningstar, Inc.		3,087		184,819
Pandora Media, Inc. *		7,203		94,071
Regal Entertainment Group, Class A (a)		9,261		127,987
The Interpublic Group of Cos., Inc.		54,254		635,857
The Washington Post Co., Class B		588		231,613

				4,224,212

Pharmaceuticals, Biotechnology & Life Sciences 3.1%
Amylin Pharmaceuticals, Inc. *		15,729		268,808
Bio-Rad Laboratories, Inc., Class A *		2,352		239,716
BioMarin Pharmaceutical, Inc. *		13,671		488,738
Bruker Corp. *		10,955		175,609
Charles River Laboratories International, Inc. *		6,174		216,893
Covance, Inc. *		7,203		343,799
Dendreon Corp. *(a)		17,493		196,971
Endo Pharmaceuticals Holdings, Inc. *		13,692		507,562
Human Genome Sciences, Inc. *		23,302		183,620
Mettler-Toledo International, Inc. *		3,822		689,030
Onyx Pharmaceuticals, Inc. *		7,497		287,285
PerkinElmer, Inc.		13,524		365,148
Regeneron Pharmaceuticals, Inc. *		8,673		908,844
Salix Pharmaceuticals Ltd. *		6,321		311,752
Techne Corp.		4,116		294,664
United Therapeutics Corp. *		6,029		287,764
Warner Chilcott plc, Class A *		20,727		346,763

				6,112,966

Real Estate 8.1%
Alexandria Real Estate Equities, Inc.		7,350		526,922
American Campus Communities, Inc.		8,232		338,747
Apartment Investment & Management Co., Class A		14,406		357,845
BRE Properties, Inc.		8,820		427,153
Camden Property Trust		8,526		528,612
CBRE Group, Inc. *		34,545		633,210
Chimera Investment Corp.		120,754		370,715
Corporate Office Properties Trust		8,379		205,453
DDR Corp.		26,901		380,111
Digital Realty Trust, Inc.		12,495		905,887
Douglas Emmett, Inc.		14,994		315,924
Duke Realty Corp.		29,611		411,001
Equity Lifestyle Properties, Inc.		4,557		303,086
Essex Property Trust, Inc.		3,969		555,620
Federal Realty Investment Trust		7,350		700,823
Highwoods Properties, Inc.		8,526		272,832
Home Properties, Inc.		6,027		347,336
Hospitality Properties Trust		14,700		363,531
Jones Lang LaSalle, Inc.		5,145		418,854
Liberty Property Trust		13,524		458,734
Mack-Cali Realty Corp.		10,437		298,498
MFA Financial, Inc.		41,748		304,760
Mid-America Apartment Communities, Inc.		4,410		275,052
National Retail Properties, Inc.		11,466		305,569
OMEGA Healthcare Investors, Inc.		12,054		245,540
Piedmont Office Realty Trust, Inc., Class A		20,580		362,620
Rayonier, Inc.		14,406		641,355
Realty Income Corp.		15,876		585,666
Regency Centers Corp.		10,731		459,179
Senior Housing Properties Trust		19,116		409,082
SL Green Realty Corp.		10,143		771,375
Taubman Centers, Inc.		6,909		477,205
The Macerich Co.		15,582		841,272
UDR, Inc.		26,019		650,995
Washington REIT		7,644		226,415
Weingarten Realty Investors		14,112		351,389

				16,028,368

Retailing 4.4%
Aaron’s, Inc.		8,234		230,058
Abercrombie & Fitch Co., Class A		10,437		477,910
Advance Auto Parts, Inc.		8,673		740,414
American Eagle Outfitters, Inc.		22,972		334,013
AutoNation, Inc. *		4,122		140,478
Big Lots, Inc. *		7,644		335,189
Chico’s FAS, Inc.		20,433		306,699
Dick’s Sporting Goods, Inc.		10,731		480,320
Dillard’s, Inc., Class A		3,969		242,665
Foot Locker, Inc.		18,375		535,999
GameStop Corp., Class A (a)		16,464		375,050
Guess?, Inc.		7,497		259,771
HomeAway, Inc. *(a)		3,381		89,529
LKQ Corp. *		17,346		552,643
PetSmart, Inc.		13,377		745,634
Sally Beauty Holdings, Inc. *		16,519		393,152
Signet Jewelers Ltd.		10,290		482,601
Tractor Supply Co.		8,526		728,717
Ulta Salon, Cosmetics & Fragrance, Inc. *		5,880		489,451
Urban Outfitters, Inc. *		14,553		413,160
Williams-Sonoma, Inc.		11,025		425,565

				8,779,018

68 See financial notes

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Semiconductors & Semiconductor Equipment 2.4%
Advanced Micro Devices, Inc. *		67,385		495,280
Atmel Corp. *		51,303		518,673
Cree, Inc. *		13,818		418,547
Cypress Semiconductor Corp. *		18,234		314,537
Lam Research Corp. *		14,556		606,985
LSI Corp. *		67,620		581,532
Novellus Systems, Inc. *		8,232		382,624
ON Semiconductor Corp. *		52,219		473,626
Skyworks Solutions, Inc. *		21,903		590,724
Teradyne, Inc. *		21,903		359,647

				4,742,175

Software & Services 7.4%
Akamai Technologies, Inc. *		21,903		788,508
Alliance Data Systems Corp. *		6,027		731,437
ANSYS, Inc. *		11,025		696,559
Booz Allen Hamilton Holding Corp.		1,788		32,917
Broadridge Financial Solutions, Inc.		14,700		357,798
Cadence Design Systems, Inc. *		31,752		373,721
Computer Sciences Corp.		18,228		578,921
Compuware Corp. *		26,019		234,431
Concur Technologies, Inc. *		5,586		329,295
DST Systems, Inc.		4,410		233,730
Equinix, Inc. *		5,586		783,045
FactSet Research Systems, Inc.		4,859		424,677
FleetCor Technologies, Inc. *		3,824		141,603
Fortinet, Inc. *		14,112		381,730
Gartner, Inc. *		10,584		426,112
Genpact Ltd. *		12,348		197,815
Global Payments, Inc.		9,408		485,641
IAC/InterActiveCorp		8,673		395,489
Informatica Corp. *		12,495		614,254
Jack Henry & Associates, Inc.		10,290		347,185
Lender Processing Services, Inc.		9,996		220,312
MICROS Systems, Inc., Class A *		9,555		496,191
NeuStar, Inc., Class A *		7,676		269,044
Nuance Communications, Inc. *		27,342		708,705
Parametric Technology Corp. *		14,112		376,790
Rackspace Hosting, Inc. *		13,083		683,456
Rovi Corp. *		13,230		469,400
Solera Holdings, Inc.		8,673		416,304
Synopsys, Inc. *		17,199		524,053
TIBCO Software, Inc. *		19,845		574,910
Total System Services, Inc.		22,785		498,536
VeriFone Systems, Inc. *		12,201		584,306
WebMD Health Corp. *		6,911		171,738

				14,548,613

Technology Hardware & Equipment 4.8%
Acme Packet, Inc. *		6,468		197,145
Anixter International, Inc. *		3,528		245,337
Arrow Electronics, Inc. *		13,377		537,086
Avnet, Inc. *		17,640		630,453
AVX Corp.		5,762		76,289
Brocade Communications Systems, Inc. *		54,758		316,501
Diebold, Inc.		7,362		288,075
Dolby Laboratories, Inc., Class A *		6,027		229,448
EchoStar Corp., Class A *		4,851		145,384
FLIR Systems, Inc.		18,963		496,262
Ingram Micro, Inc., Class A *		18,228		348,702
InterDigital, Inc.		5,439		205,866
IPG Photonics Corp. *		3,087		162,469
Jabil Circuit, Inc.		22,648		584,998
JDS Uniphase Corp. *		27,195		354,623
Lexmark International, Inc., Class A		9,261		341,546
Molex, Inc.		17,493		474,060
National Instruments Corp.		11,172		297,175
NCR Corp. *		18,669		405,491
Polycom, Inc. *		21,021		434,084
Riverbed Technology, Inc. *		18,522		527,321
Seagate Technology plc		49,539		1,300,894
Trimble Navigation Ltd. *		14,406		724,478
Zebra Technologies Corp., Class A *		6,323		243,056

				9,566,743

Telecommunication Services 1.2%
Clearwire Corp., Class A *		17,100		39,330
Level 3 Communications, Inc. *		18,536		450,610
MetroPCS Communications, Inc. *		37,526		386,518
SBA Communications Corp., Class A *		13,524		634,681
Telephone & Data Systems, Inc.		11,760		297,175
tw telecom, Inc. *		18,081		390,550
United States Cellular Corp. *		1,911		82,441

				2,281,305

Transportation 1.9%
Hertz Global Holdings, Inc. *		27,803		397,583
J.B. Hunt Transport Services, Inc.		11,613		594,702
Kansas City Southern *		12,936		900,087
Kirby Corp. *		6,615		453,921
Landstar System, Inc.		5,586		301,979
Ryder System, Inc.		6,029		320,923
United Continental Holdings, Inc. *		39,249		810,492

				3,779,687

Utilities 7.0%
AGL Resources, Inc.		13,672		545,103
Alliant Energy Corp.		12,936		551,591
American Water Works Co., Inc.		20,727		710,522
Aqua America, Inc.		16,317		362,401
Atmos Energy Corp.		10,584		325,246
Cleco Corp.		7,350		282,828
CMS Energy Corp.		29,988		642,043
Energen Corp.		8,526		453,839
GenOn Energy, Inc. *		90,258		222,035
Great Plains Energy, Inc.		15,890		314,304
Hawaiian Electric Industries, Inc.		11,172		279,859
IDACORP, Inc.		5,880		238,022
Integrys Energy Group, Inc.		9,261		481,850
ITC Holdings Corp.		6,027		454,918
MDU Resources Group, Inc.		20,580		446,586
National Fuel Gas Co.		9,261		466,106
NiSource, Inc.		33,222		797,328
NRG Energy, Inc. *		28,665		490,171
NSTAR		12,348		579,121

See financial notes 69

Schwab U.S. Mid-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
NV Energy, Inc.		27,783		435,637
OGE Energy Corp.		11,466		601,736
Pepco Holdings, Inc.		26,754		520,098
Piedmont Natural Gas Co., Inc.		8,379		271,480
Pinnacle West Capital Corp.		12,789		601,467
Questar Corp.		21,021		404,024
SCANA Corp.		13,671		615,195
TECO Energy, Inc.		23,961		430,100
UGI Corp.		13,818		390,358
Vectren Corp.		9,555		279,197
Westar Energy, Inc.		13,818		380,271
WGL Holdings, Inc.		6,027		246,082

				13,819,518

Total Common Stock
(Cost $189,631,768)				197,473,843




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		63,088		63,088

Total Other Investment Company
(Cost $63,088)				63,088



End of Investments



Collateral Invested for Securities on Loan 1.1% of net assets


State Street Institutional U.S. Government Money Market Fund		2,177,289		2,177,289

Total Collateral Invested for Securities on Loan
(Cost $2,177,289)				2,177,289



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $189,844,415 and the unrealized appreciation and depreciation were $12,978,113 and ($5,285,597), respectively, with a net unrealized appreciation of $7,692,516.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$197,473,843		$—		$—		$197,473,843
Other Investment Company(a)		63,088		—		—		63,088

Total		$197,536,931		$—		$—		$197,536,931

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,177,289		$—		$—		$2,177,289

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

70 See financial notes

Schwab U.S. Mid-Cap ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $189,694,856) including securities on loan of $2,114,504		$197,536,931
Collateral invested for securities on loan		2,177,289
Receivables:
Dividends		192,994
Income from securities on loan	+	3,424

Total assets		199,910,638

Liabilities

Collateral held for securities on loan		2,177,289
Payables:
Investment adviser fees	+	2,121

Total liabilities		2,179,410

Net Assets

Total assets		199,910,638
Total liabilities	−	2,179,410

Net assets		$197,731,228

Net Assets by Source
Capital received from investors		189,323,954
Net investment income not yet distributed		356,742
Net realized capital gains		190,098
Net unrealized capital gains		7,860,434

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$197,731,228

7,350,001

$26.90

See financial notes 71

Schwab U.S. Mid-Cap ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends		$893,057
Interest		55
Securities on loan	+	15,248

Total investment income		908,360

Expenses

Investment adviser fees		74,438

Total expenses	−	74,438

Net investment income		833,922

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(836,595	)
Net realized gains on in-kind redemptions	+	1,289,958

Net realized gains		453,363
Net unrealized gains on investments	+	18,163,780

Net realized and unrealized gains		18,617,143

Net increase in net assets resulting from operations		$19,451,065

72 See financial notes

Schwab U.S. Mid-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				*1/12/11-8/31/11**
Net investment income		$833,922			$448,890
Net realized gains		453,363			473,873
Net unrealized gains (losses)	+	18,163,780			(10,303,346	)

Net increase (decrease) in net assets resulting from operations		19,451,065			(9,380,583	)

Distributions to Shareholders

Distributions from net investment income		($599,220	)		($326,850	)

Transactions in Fund Shares

9/1/11-2/29/12

1/12/11*-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

5,050,000

$123,328,815

4,750,001

$123,751,580

Shares Redeemed

(1,050,000

)

(23,999,903

)

(1,400,000

)

(34,493,676

)

Net transactions in fund shares

4,000,000

$99,328,912

3,350,001

$89,257,904

Shares Outstanding and Net Assets

9/1/11-2/29/12

1/12/11*-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

3,350,001

$79,550,471

—

$—

Total increase

4,000,000

118,180,757

3,350,001

79,550,471

End of period

7,350,001

$197,731,228

3,350,001

$79,550,471

Net investment income not yet distributed

$356,742

$122,040


*		Commencement of operations.

See financial notes 73

Schwab U.S. Small-Cap ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		32.34			26.48			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.23			0.39			0.23
Net realized and unrealized gains (losses)		3.97			5.86			1.45	²

Total from investment operations		4.20			6.25			1.68
Less distributions:
Distributions from net investment income		(0.21	)		(0.39	)		(0.20	)

Net asset value at end of period		36.33			32.34			26.48

Total return (%)		13.09	³		23.55			6.67	³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	⁴		0.13			0.14	^4,5
Gross operating expenses		0.13	⁴		0.13			0.14	⁴
Net investment income (loss)		1.43	⁴		1.17			1.05	⁴
Portfolio turnover rate⁶		5	³		11			8	³
Net assets, end of period ($ x 1,000)		626,777			462,523			193,310

* Unaudited.

¹ Commencement of operations.

² The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

74 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.9%	Common Stock		584,679,724		626,200,391
	0	.0%	Rights		—		—


	99	.9%	Total Investments		584,679,724		626,200,391
	2	.2%	Collateral Invested for Securities on Loan		13,908,517		13,908,517
	(2	.1)%	Other Assets and Liabilities, Net				(13,331,772	)


	100	.0%	Net Assets				626,777,136


	Number		Value
Security	of Shares		($)

Common Stock 99.9% of net assets

Automobiles & Components 1.0%
American Axle & Manufacturing Holdings, Inc. *		24,272		276,458
Cooper Tire & Rubber Co.		23,889		396,557
Dana Holding Corp. *		57,615		921,840
Dorman Products, Inc. *		5,175		234,997
Drew Industries, Inc. *		7,328		200,787
Exide Technologies *		27,995		83,145
Federal-Mogul Corp. *		9,660		166,249
Fuel Systems Solutions, Inc. *		6,061		156,980
Modine Manufacturing Co. *		18,032		163,731
Superior Industries International, Inc.		9,055		163,714
Tenneco, Inc. *		23,805		916,493
Tesla Motors, Inc. *(a)		20,457		683,468
Thor Industries, Inc.		18,285		595,542
Tower International, Inc. *		2,434		31,009
WABCO Holdings, Inc. *		25,185		1,498,256
Winnebago Industries, Inc. *		11,076		98,798

				6,588,024

Banks 6.7%
1st Source Corp.		5,082		124,763
Arrow Financial Corp.		4,662		112,168
Associated Banc-Corp		66,226		876,832
Astoria Financial Corp.		34,422		302,225
BancFirst Corp.		2,760		112,967
BancorpSouth, Inc.		30,413		360,090
Bank Mutual Corp.		17,595		69,148
Bank of Hawaii Corp.		18,630		856,980
Bank of the Ozarks, Inc.		10,416		305,710
BankFinancial Corp.		6,562		37,075
BankUnited, Inc.		15,226		350,655
BBCN Bancorp, Inc. *		29,325		300,581
Beneficial Mutual Bancorp, Inc. *		13,800		125,166
Berkshire Hills Bancorp, Inc.		7,957		174,974
Boston Private Financial Holdings, Inc.		30,015		286,043
Brookline Bancorp, Inc.		26,565		243,867
Camden National Corp.		3,105		109,762
Capital City Bank Group, Inc.		5,065		39,862
CapitalSource, Inc.		105,225		710,269
Capitol Federal Financial, Inc.		63,825		746,114
Cardinal Financial Corp.		10,606		114,015
Cascade Bancorp *(a)		6,711		38,924
Cathay General Bancorp		29,334		479,318
Centerstate Banks, Inc.		10,424		72,968
Central Pacific Financial Corp. *		1,436		19,874
Chemical Financial Corp.		9,718		214,379
Citizens Republic Bancorp, Inc. *		15,180		207,814
City Holding Co. (a)		5,604		192,049
Clifton Savings Bancorp, Inc.		4,272		41,994
CoBiz Financial, Inc.		14,145		82,465
Columbia Banking System, Inc.		14,656		309,974
Community Bank System, Inc.		14,145		386,441
Community Trust Bancorp, Inc.		5,269		162,496
CVB Financial Corp.		35,443		381,721
CYS Investments, Inc.		43,125		585,206
Dime Community Bancshares		11,923		165,968
Doral Financial Corp. *		44,850		62,790
East West Bancorp, Inc.		56,235		1,243,918
ESSA Bancorp, Inc.		4,023		38,701
F.N.B. Corp.		52,785		622,335
First Bancorp		5,922		59,220
First Busey Corp.		31,395		151,952
First Citizens BancShares, Inc., Class A		2,417		425,755
First Commonwealth Financial Corp.		39,377		235,868
First Community Bancshares, Inc.		5,555		68,882
First Financial Bancorp		22,425		367,097
First Financial Bankshares, Inc. (a)		11,802		404,337
First Financial Corp.		4,183		133,814
First Financial Holdings, Inc.		5,657		55,212
First Horizon National Corp.		99,360		933,984
First Interstate BancSystem, Inc.		5,866		79,778
First Merchants Corp.		10,111		112,030
First Midwest Bancorp, Inc.		28,290		327,032
First Niagara Financial Group, Inc.		112,125		1,071,915
FirstMerit Corp.		42,117		675,978
Flagstar Bancorp, Inc. *		75,210		54,219
Flushing Financial Corp.		12,624		163,481
Fulton Financial Corp.		75,555		740,439
Glacier Bancorp, Inc.		28,116		388,001
Great Southern Bancorp, Inc.		3,533		77,797
Hampton Roads Bankshares, Inc. *		8,625		22,425
Hancock Holding Co.		30,705		1,042,435
Heartland Financial USA, Inc.		5,756		90,542
Home Bancshares, Inc.		9,777		246,380
Hudson Valley Holding Corp.		6,611		107,892
IBERIABANK Corp.		11,385		603,860
Independent Bank Corp.		8,051		221,322
International Bancshares Corp.		22,080		419,078
Investors Bancorp, Inc. *		17,940		260,668
Kearny Financial Corp.		6,214		57,977
Lakeland Financial Corp.		5,757		145,192
MB Financial, Inc.		21,390		425,661

See financial notes 75

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Meridian Interstate Bancorp, Inc. *		4,272		55,237
MGIC Investment Corp. *		70,725		318,970
National Penn Bancshares, Inc.		48,300		422,625
NBT Bancorp, Inc.		12,507		272,778
Northfield Bancorp, Inc. (a)		7,480		103,074
Northwest Bancshares, Inc.		37,268		470,322
Ocwen Financial Corp. *		37,260		600,259
Old National Bancorp		35,880		433,430
Oriental Financial Group, Inc.		17,015		199,926
Oritani Financial Corp.		16,560		215,777
Orrstown Financial Services, Inc.		2,762		23,891
Pacific Capital Bancorp NA *(a)		2,071		58,009
PacWest Bancorp		12,226		266,160
Park National Corp. (a)		5,175		356,247
Pinnacle Financial Partners, Inc. *		13,488		223,361
Popular, Inc. *		384,187		729,955
PrivateBancorp, Inc.		24,840		360,180
Prosperity Bancshares, Inc.		17,940		784,696
Provident Financial Services, Inc.		22,124		303,984
Provident New York Bancorp		13,986		119,301
Radian Group, Inc. (a)		50,370		190,902
Renasant Corp.		9,903		150,229
Republic Bancorp, Inc., Class A		4,197		109,374
Rockville Financial, Inc.		4,916		56,780
Roma Financial Corp.		2,965		30,273
S&T Bancorp, Inc.		10,541		223,575
S.Y. Bancorp, Inc.		4,683		101,855
Sandy Spring Bancorp, Inc.		9,666		174,568
SCBT Financial Corp.		5,196		160,920
Signature Bank *		17,595		1,044,439
Simmons First National Corp., Class A		6,139		161,394
Southside Bancshares, Inc.		6,236		132,889
State Bank Financial Corp. *		12,199		198,112
StellarOne Corp.		9,234		107,391
Sterling Bancorp		12,420		110,538
Sterling Financial Corp. *		10,752		209,234
Susquehanna Bancshares, Inc.		70,708		655,463
SVB Financial Group *		16,905		1,002,128
Synovus Financial Corp.		276,345		585,851
TCF Financial Corp.		57,306		617,759
Territorial Bancorp, Inc.		4,352		91,392
Texas Capital Bancshares, Inc. *		14,248		482,865
Tompkins Financial Corp.		3,450		141,795
TowneBank (a)		11,439		147,792
TriCo Bancshares		6,110		98,982
TrustCo Bank Corp.		35,190		188,618
Trustmark Corp.		21,896		516,308
UMB Financial Corp.		14,145		589,139
Umpqua Holdings Corp.		44,178		544,273
Union First Market Bankshares Corp.		8,727		121,131
United Bankshares, Inc. (a)		19,665		575,791
United Financial Bancorp, Inc.		5,865		92,960
Univest Corp. of Pennsylvania		6,938		109,620
Valley National Bancorp		71,070		889,086
ViewPoint Financial Group		6,132		91,919
Washington Federal, Inc.		41,429		671,150
Washington Trust Bancorp, Inc.		5,520		129,775
Webster Financial Corp.		28,290		618,985
WesBanco, Inc.		9,694		189,033
Westamerica Bancorp		11,040		522,854
Western Alliance Bancorp *		31,395		255,555
Westfield Financial, Inc.		10,027		79,514
Wilshire Bancorp, Inc. *		24,840		107,806
Wintrust Financial Corp.		13,800		465,198
WSFS Financial Corp.		3,207		123,437

				42,025,658

Capital Goods 11.3%
3D Systems Corp. *(a)		16,318		365,523
A.O. Smith Corp.		14,835		669,949
A123 Systems, Inc. *(a)		38,295		68,931
AAON, Inc.		7,991		148,233
AAR Corp.		15,525		342,326
Accuride Corp. *		16,408		130,444
Aceto Corp.		9,839		81,565
Actuant Corp., Class A		27,255		767,773
Acuity Brands, Inc.		16,215		1,008,411
Aegion Corp. *		15,276		269,010
Aerovironment, Inc. *		6,557		186,743
Air Lease Corp. *		27,945		687,168
Aircastle Ltd.		18,378		250,125
Albany International Corp., Class A		10,121		242,094
Alliant Techsystems, Inc.		12,765		765,900
Altra Holdings, Inc. *		10,391		202,521
Ameresco, Inc., Class A *		6,948		97,897
American Railcar Industries, Inc. *		3,495		103,102
American Science & Engineering, Inc.		3,450		250,815
American Superconductor Corp. *(a)		13,800		61,824
American Woodmark Corp.		3,889		55,263
Ampco-Pittsburgh Corp.		3,152		66,854
API Technologies Corp. *		12,765		48,379
Apogee Enterprises, Inc.		10,530		139,733
Applied Industrial Technologies, Inc.		14,835		595,922
Armstrong World Industries, Inc. *		8,280		424,102
Astec Industries, Inc. *		7,010		266,029
Astronics Corp. *		3,852		128,772
AZZ, Inc.		4,842		243,068
Badger Meter, Inc.		6,210		199,776
Barnes Group, Inc.		18,630		516,051
BE Aerospace, Inc. *		36,915		1,692,184
Beacon Roofing Supply, Inc. *		17,402		410,339
Belden, Inc.		18,285		721,709
Blount International, Inc. *		18,293		313,725
Brady Corp., Class A		17,689		565,164
Briggs & Stratton Corp.		19,155		324,486
Builders FirstSource, Inc. *		17,735		53,737
Capstone Turbine Corp. *(a)		97,488		108,212
Carlisle Cos., Inc.		23,460		1,144,848
Cascade Corp.		3,220		171,433
Ceradyne, Inc. *		8,837		273,152
Chart Industries, Inc. *		11,389		778,894
CIRCOR International, Inc.		6,623		219,288
CLARCOR, Inc.		19,320		975,080
Colfax Corp. *		17,587		598,310
Columbus McKinnon Corp. *		7,730		128,704
Comfort Systems USA, Inc.		14,490		165,766
Crane Co.		20,010		971,886
Cubic Corp.		6,231		297,842
Curtiss-Wright Corp.		17,940		666,471
DigitalGlobe, Inc. *		13,337		205,123

76 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Douglas Dynamics, Inc.		7,779		101,127
Ducommun, Inc. *		4,197		64,088
DXP Enterprises, Inc. *		3,510		129,870
Dycom Industries, Inc. *		13,455		286,322
Dynamic Materials Corp.		5,065		113,000
EMCOR Group, Inc.		25,185		700,143
Encore Wire Corp.		7,138		207,930
Energy Recovery, Inc. *		18,975		40,796
EnerSys *		19,312		648,497
EnPro Industries, Inc. *		7,957		300,854
ESCO Technologies, Inc.		9,881		353,641
Esterline Technologies Corp. *		11,730		761,863
Federal Signal Corp. *		23,805		111,883
Franklin Electric Co., Inc.		7,590		379,576
FreightCar America, Inc.		4,683		129,485
FuelCell Energy, Inc. *		42,908		63,933
Furmanite Corp. *		13,360		97,528
GATX Corp.		17,940		780,211
GenCorp, Inc. *		21,390		128,340
Generac Holdings, Inc. *		10,695		272,081
General Cable Corp. *		20,700		641,079
GeoEye, Inc. *		6,555		132,870
Gibraltar Industries, Inc. *		11,730		162,109
Global Power Equipment Group, Inc. *		5,358		129,931
Graco, Inc.		23,805		1,218,340
GrafTech International Ltd. *		49,156		624,773
Graham Corp.		3,797		88,584
Granite Construction, Inc.		13,110		374,946
Great Lakes Dredge & Dock Co.		21,474		152,251
Griffon Corp.		20,355		217,595
H&E Equipment Services, Inc. *		11,730		202,812
Harsco Corp.		31,050		690,241
HEICO Corp., Class A		13,800		550,344
Hexcel Corp. *		37,605		950,278
Houston Wire & Cable Co.		5,976		84,859
Huntington Ingalls Industries, Inc. *		17,940		643,687
IDEX Corp.		32,085		1,341,153
II-VI, Inc. *		20,238		473,367
Interline Brands, Inc. *		12,545		257,925
John Bean Technologies Corp.		10,776		186,102
Kaman Corp.		10,005		345,072
Kaydon Corp.		12,133		456,443
Kennametal, Inc.		30,360		1,398,685
L.B. Foster Co.		4,140		121,923
Lawson Products, Inc.		1,119		18,251
Layne Christensen Co. *		7,603		183,917
Lennox International, Inc.		18,630		728,992
Lindsay Corp.		4,830		316,800
MasTec, Inc. *		23,856		419,627
Meritor, Inc. *		36,225		268,427
Michael Baker Corp. *		3,150		76,010
Moog, Inc., Class A *		16,215		712,001
Mueller Industries, Inc.		14,183		652,418
Mueller Water Products, Inc., Class A		58,650		174,190
MYR Group, Inc. *		7,740		155,032
NACCO Industries, Inc., Class A		2,073		202,739
Nordson Corp.		23,805		1,308,561
Nortek, Inc. *		3,795		134,533
Northwest Pipe Co. *		3,231		79,095
Orbital Sciences Corp. *		22,255		312,683
Orion Marine Group, Inc. *		9,834		71,788
Oshkosh Corp. *		34,834		811,981
Otter Tail Corp.		12,454		264,523
Pike Electric Corp. *		7,590		67,779
Polypore International, Inc. *(a)		15,529		638,552
Powell Industries, Inc. *		3,450		113,125
Primoris Services Corp.		10,620		163,336
Quanex Building Products Corp.		14,552		247,530
Raven Industries, Inc.		6,900		435,045
RBC Bearings, Inc. *		8,280		376,823
Regal-Beloit Corp.		14,839		1,001,632
Robbins & Myers, Inc.		14,490		707,257
RSC Holdings, Inc. *		23,805		530,137
Rush Enterprises, Inc., Class A *		12,625		300,727
Sauer-Danfoss, Inc. *		4,140		224,140
Seaboard Corp. *		141		269,750
Simpson Manufacturing Co., Inc.		15,525		462,955
Snap-On, Inc.		22,425		1,370,840
Standex International Corp.		4,916		187,840
Sterling Construction Co., Inc. *		6,557		67,996
Sun Hydraulics Corp.		7,598		249,670
TAL International Group, Inc.		8,839		318,558
Taser International, Inc. *		22,770		91,763
Tecumseh Products Co., Class A *		5,603		25,718
Teledyne Technologies, Inc. *		14,149		843,280
Tennant Co.		6,900		283,176
Terex Corp. *		41,745		1,059,906
Textainer Group Holdings Ltd.		6,956		231,078
The Gorman-Rupp Co.		6,942		200,416
The Greenbrier Cos., Inc. *		9,207		232,753
The Keyw Holding Corp. *(a)		6,278		44,574
The Manitowoc Co., Inc.		50,370		792,824
The Middleby Corp. *		7,245		708,126
The Shaw Group, Inc. *		27,934		808,410
The Toro Co.		11,730		794,590
Thermon Group Holdings, Inc. *		5,175		104,224
Thomas & Betts Corp. *		20,355		1,470,242
Titan International, Inc.		16,229		399,883
Titan Machinery, Inc. *		6,900		180,711
Tredegar Corp.		9,103		211,554
Trex Co., Inc. *		5,300		142,729
TriMas Corp. *		10,218		247,582
Trinity Industries, Inc.		31,050		1,079,298
Triumph Group, Inc.		14,835		946,473
Tutor Perini Corp. *		12,891		203,420
Twin Disc, Inc. (a)		3,460		110,582
United Rentals, Inc. *		23,805		992,192
Universal Forest Products, Inc.		7,665		246,353
USG Corp. *		24,913		355,010
Valmont Industries, Inc.		8,627		958,201
Vicor Corp.		8,280		67,234
Wabash National Corp. *		25,875		273,240
Wabtec Corp.		18,285		1,366,438
Watsco, Inc.		10,005		714,257
Watts Water Technologies, Inc., Class A		11,730		463,804
WESCO International, Inc. *		16,560		1,041,458
Woodward, Inc.		22,770		996,643

				70,600,595

See financial notes 77

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Commercial & Professional Services 2.8%
ABM Industries, Inc.		17,084		387,807
Acacia Research Corp. *		16,273		642,783
Acco Brands Corp. *		21,045		248,331
American Reprographics Co. *		12,785		67,505
CBIZ, Inc. *		16,126		104,819
CDI Corp.		5,066		76,041
Cenveo, Inc. *		20,248		78,967
Clean Harbors, Inc. *		17,940		1,204,850
Consolidated Graphics, Inc. *		3,537		165,143
CoStar Group, Inc. *		9,660		579,407
Courier Corp.		3,607		38,883
CRA International, Inc. *		3,898		92,811
Deluxe Corp.		19,665		485,136
EnergySolutions, Inc. *		31,395		132,173
EnerNOC, Inc. *(a)		8,810		69,335
Ennis, Inc.		9,807		164,365
Exponent, Inc. *		5,175		249,539
FTI Consulting, Inc. *		16,215		649,735
Fuel Tech, Inc. *		6,126		37,920
G&K Services, Inc., Class A		7,348		244,909
Healthcare Services Group, Inc.		23,512		458,014
Heidrick & Struggles International, Inc.		6,964		141,508
Herman Miller, Inc.		22,263		467,523
Higher One Holdings, Inc. *(a)		12,614		185,426
Hill International, Inc. *		9,862		52,860
HNI Corp.		14,145		357,586
Huron Consulting Group, Inc. *		8,625		329,303
ICF International, Inc. *		7,393		191,700
Innerworkings, Inc. *		11,040		125,856
Insperity, Inc.		9,063		273,068
Interface, Inc., Class A		21,425		262,456
KAR Auction Services, Inc. *		11,767		189,096
Kelly Services, Inc., Class A		11,042		165,630
Kforce, Inc. *		15,870		223,767
Kimball International, Inc., Class B		9,454		58,237
Knoll, Inc.		18,513		285,470
Korn/Ferry International *		18,115		289,297
McGrath Rentcorp		9,034		286,830
Metalico, Inc. *		15,870		79,667
Mine Safety Appliances Co.		12,080		445,269
Mistras Group, Inc. *		6,216		139,238
Mobile Mini, Inc. *		14,582		314,971
Monster Worldwide, Inc. *		50,037		347,257
Multi-Color Corp.		5,001		109,372
Navigant Consulting, Inc. *		20,010		270,335
On Assignment, Inc. *		14,164		196,596
Pendrell Corp. *		56,597		136,965
Quad Graphics, Inc. (a)		8,281		123,967
Resources Connection, Inc.		16,632		217,380
Rollins, Inc.		28,156		570,441
RPX Corp. *		6,900		116,265
Schawk, Inc.		3,692		40,870
School Specialty, Inc. *		5,175		16,560
Standard Parking Corp. *		6,214		112,163
Steelcase, Inc., Class A		32,085		281,706
Swisher Hygiene, Inc. *(a)		44,291		130,658
Sykes Enterprises, Inc. *		15,750		217,035
Team, Inc. *		7,284		222,890
Tetra Tech, Inc. *		23,355		573,599
The Advisory Board Co. *		6,210		502,637
The Brink’s Co.		17,622		444,956
The Corporate Executive Board Co.		13,130		544,107
The Geo Group, Inc. *		24,202		426,197
TMS International Corp., Class A *		4,830		57,477
TrueBlue, Inc. *		15,786		261,416
United Stationers, Inc.		16,667		484,010
US Ecology, Inc.		6,822		128,731
Viad Corp.		8,085		157,334

				17,734,155

Consumer Durables & Apparel 3.5%
American Greetings Corp., Class A		14,583		218,745
Beazer Homes USA, Inc. *(a)		28,635		89,341
Blyth, Inc.		2,419		154,332
Brookfield Residential Properties, Inc. *		12,181		126,439
Brunswick Corp.		34,155		816,646
Callaway Golf Co.		24,497		160,455
Carter’s, Inc. *		19,320		938,372
Cavco Industries, Inc. *		2,415		108,892
Columbia Sportswear Co.		5,535		276,363
Crocs, Inc. *		34,155		671,146
CSS Industries, Inc.		3,795		74,382
Deckers Outdoor Corp. *		14,839		1,109,364
Ethan Allen Interiors, Inc.		10,491		264,898
Furniture Brands International, Inc. *		17,974		28,758
G-III Apparel Group Ltd. *		6,210		154,753
Hanesbrands, Inc. *		36,915		1,060,568
Helen of Troy Ltd. *		11,385		370,012
Hovnanian Enterprises, Inc., Class A *(a)		24,072		66,679
Iconix Brand Group, Inc. *		27,830		505,393
iRobot Corp. *		10,111		258,033
JAKKS Pacific, Inc.		10,760		167,103
Jarden Corp.		35,190		1,241,151
K-Swiss, Inc., Class A *		10,350		34,466
KB HOME (a)		25,530		291,553
Kenneth Cole Productions, Inc., Class A *		4,485		70,370
La-Z-Boy, Inc. *		19,803		282,985
Leapfrog Enterprises, Inc. *		17,457		122,723
Liz Claiborne, Inc. *		35,880		350,906
M.D.C Holdings, Inc.		14,283		351,076
M/I Homes, Inc. *		7,319		88,633
Maidenform Brands, Inc. *		8,840		185,640
Marine Products Corp.		5,865		36,480
Meritage Homes Corp. *		10,174		263,405
Movado Group, Inc.		7,318		156,605
National Presto Industries, Inc. (a)		1,795		155,429
Oxford Industries, Inc.		5,520		278,208
Perry Ellis International, Inc. *		4,987		86,923
Polaris Industries, Inc.		25,185		1,663,721
Pool Corp.		18,630		678,132
PulteGroup, Inc. *		128,340		1,131,959
Quiksilver, Inc. *		50,715		237,346
Sealy Corp. *		18,975		32,637
Skechers U.S.A., Inc., Class A *		15,181		193,861
Skullcandy, Inc. *(a)		6,210		87,685
Smith & Wesson Holding Corp. *		24,495		128,109
Standard Pacific Corp. *		40,068		175,498

78 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Steven Madden Ltd. *		15,180		655,472
Sturm Ruger & Co., Inc.		7,590		317,110
The Jones Group, Inc.		32,255		317,712
The Ryland Group, Inc.		17,114		310,277
The Warnaco Group, Inc. *		16,560		972,238
True Religion Apparel, Inc. *		10,005		263,832
Under Armour, Inc., Class A *		14,839		1,324,232
UniFirst Corp.		5,869		352,610
Universal Electronics, Inc. *		5,434		106,289
Vera Bradley, Inc. *(a)		9,051		332,172
Weyco Group, Inc.		2,891		67,476
Wolverine World Wide, Inc.		18,477		704,713
Zagg, Inc. *(a)		8,625		90,563

				21,760,871

Consumer Services 4.0%
AFC Enterprises, Inc. *		9,808		156,830
Ambassadors Group, Inc.		6,779		35,725
American Public Education, Inc. *		7,245		283,714
Ameristar Casinos, Inc.		12,464		247,286
Bally Technologies, Inc. *		17,250		740,715
Biglari Holdings, Inc. *		690		283,252
BJ’s Restaurants, Inc. *		9,307		462,093
Bob Evans Farms, Inc.		12,075		444,360
Boyd Gaming Corp. *		21,390		171,334
Bravo Brio Restaurant Group, Inc. *		6,915		133,321
Bridgepoint Education, Inc. *(a)		7,025		171,129
Brinker International, Inc.		30,705		847,151
Buffalo Wild Wings, Inc. *		7,249		626,966
Caesars Entertainment Corp. *		682		7,720
Cambium Learning Group, Inc. *		3,276		9,435
Capella Education Co. *		4,830		187,404
Career Education Corp. *		22,983		198,114
CEC Entertainment, Inc.		7,590		289,634
Choice Hotels International, Inc.		12,765		479,581
Churchill Downs, Inc.		4,886		255,049
Coinstar, Inc. *(a)		11,725		682,747
Corinthian Colleges, Inc. *		29,325		131,669
Cracker Barrel Old Country Store, Inc.		8,631		480,488
Denny’s Corp. *		36,915		153,197
DineEquity, Inc. *		6,555		349,906
Domino’s Pizza, Inc. *		21,045		809,391
Education Management Corp. *(a)		10,447		188,777
Gaylord Entertainment Co. *		16,207		482,320
Grand Canyon Education, Inc. *		12,528		214,354
Hillenbrand, Inc.		23,805		546,801
International Speedway Corp., Class A		11,187		281,465
Interval Leisure Group, Inc. *		15,411		207,894
Isle of Capri Casinos, Inc. *		9,086		57,696
ITT Educational Services, Inc. *(a)		10,350		710,424
Jack in the Box, Inc. *		18,664		445,136
K12, Inc. *		13,800		297,528
Krispy Kreme Doughnuts, Inc. *		22,683		185,547
Life Time Fitness, Inc. *		15,289		756,347
Lincoln Educational Services Corp.		8,686		73,484
Matthews International Corp., Class A		11,385		353,163
Morgans Hotel Group Co. *		10,844		55,630
National American University Holdings, Inc.		3,796		26,230
Orient-Express Hotels Ltd., Class A *		35,451		350,610
P.F. Chang’s China Bistro, Inc.		8,280		317,290
Panera Bread Co., Class A *		11,385		1,759,893
Papa John’s International, Inc. *		7,598		282,342
Peet’s Coffee & Tea, Inc. *		4,830		311,004
Pinnacle Entertainment, Inc. *		23,805		262,093
Red Robin Gourmet Burgers, Inc. *		5,386		185,332
Regis Corp.		22,132		383,105
Ruby Tuesday, Inc. *		24,495		190,571
Scientific Games Corp., Class A *		22,971		241,425
Service Corp. International		86,940		985,900
Shuffle Master, Inc. *		20,355		297,183
Six Flags Entertainment Corp.		21,390		968,111
Sonic Corp. *		24,036		198,537
Sotheby’s		26,565		1,045,067
Speedway Motorsports, Inc.		4,889		75,877
Steiner Leisure Ltd. *		5,520		276,221
Stewart Enterprises, Inc., Class A		30,777		191,433
Strayer Education, Inc. (a)		4,830		496,983
Texas Roadhouse, Inc.		23,866		399,278
The Cheesecake Factory, Inc. *		20,173		597,928
The Marcus Corp.		7,342		88,471
The Wendy’s Co.		119,370		605,206
Universal Technical Institute, Inc. *		8,368		108,700
Vail Resorts, Inc.		14,145		595,505
WMS Industries, Inc. *		21,490		473,425

				25,208,497

Diversified Financials 2.2%
Advance America Cash Advance Centers, Inc.		19,665		203,926
Artio Global Investors, Inc.		11,912		57,058
Asset Acceptance Capital Corp. *		4,063		19,055
BGC Partners, Inc., Class A		31,439		221,016
Calamos Asset Management, Inc., Class A		8,084		99,110
Cardtronics, Inc. *		16,338		434,427
Cash America International, Inc.		11,389		528,222
Cohen & Steers, Inc. (a)		8,625		284,108
Cowen Group, Inc., Class A *		31,231		87,447
Credit Acceptance Corp. *		2,491		239,784
DFC Global Corp. *		16,307		292,058
Duff & Phelps Corp., Class A		10,501		144,494
Encore Capital Group, Inc. *		8,625		192,165
Epoch Holding Corp.		7,073		176,471
Evercore Partners, Inc., Class A		9,752		265,157
EZCORP, Inc., Class A *		17,595		554,242
FBR Capital Markets Corp. *		20,355		51,295
Federated Investors, Inc., Class B (a)		40,365		827,079
Financial Engines, Inc. *		15,394		354,832
First Cash Financial Services, Inc. *		10,695		451,971
FX Alliance, Inc. *		2,050		27,737
Gain Capital Holdings, Inc.		3,497		18,324
GAMCO Investors, Inc., Class A		1,455		67,090
GFI Group, Inc.		25,185		96,710
Gleacher & Co., Inc. *		27,945		42,476
Green Dot Corp., Class A *		7,806		249,246
Greenhill & Co., Inc.		11,040		485,318

See financial notes 79

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
HFF, Inc. *		13,500		194,535
ICG Group, Inc. *		14,982		129,894
Interactive Brokers Group, Inc., Class A		14,865		235,759
INTL FCStone, Inc. *		5,434		123,080
Investment Technology Group, Inc. *		16,338		187,887
Janus Capital Group, Inc.		71,395		629,704
KBW, Inc.		11,389		188,260
Knight Capital Group, Inc., Class A *		37,066		491,125
Life Partners Holdings, Inc. (a)		3,481		14,794
MarketAxess Holdings, Inc.		12,765		422,777
Nelnet, Inc., Class A		10,779		284,781
Netspend Holdings, Inc. *		12,765		109,907
NewStar Financial, Inc. *		11,490		113,291
Oppenheimer Holdings, Inc., Class A		4,021		67,312
PHH Corp. *		21,554		293,565
PICO Holdings, Inc. *		8,722		192,843
Piper Jaffray Cos., Inc. *		7,401		181,917
Portfolio Recovery Associates, Inc. *		6,555		457,080
Pzena Investment Management, Inc., Class A		3,795		19,506
Safeguard Scientifics, Inc. *		7,246		122,530
Stifel Financial Corp. *		20,692		776,571
SWS Group, Inc.		12,420		69,428
The First Marblehead Corp. *		24,497		29,886
Virtus Investment Partners, Inc. *		2,415		192,089
Waddell & Reed Financial, Inc., Class A		33,465		1,056,155
Westwood Holdings Group, Inc.		2,417		93,635
WisdomTree Investments, Inc. *		26,910		190,523
World Acceptance Corp. *		5,627		357,427

				13,697,079

Energy 6.2%
Abraxas Petroleum Corp. *(a)		34,845		140,077
Alon USA Energy, Inc.		4,668		43,879
Amyris, Inc. *(a)		7,749		41,690
Apco Oil & Gas International, Inc. (a)		3,450		259,371
Approach Resources, Inc. *		7,986		275,996
ATP Oil & Gas Corp. *(a)		17,038		136,304
Atwood Oceanics, Inc. *		21,430		1,019,211
Basic Energy Services, Inc. *		11,042		219,294
Berry Petroleum Co., Class A		21,045		1,135,588
Bill Barrett Corp. *		16,560		484,049
Bonanza Creek Energy, Inc. *		3,795		70,587
BPZ Resources, Inc. *(a)		40,710		130,679
Bristow Group, Inc.		13,173		621,897
C&J Energy Services, Inc. *(a)		4,308		87,539
Cal Dive International, Inc. *		36,225		105,053
CARBO Ceramics, Inc. (a)		7,592		695,807
Carrizo Oil & Gas, Inc. *		13,373		376,717
Cheniere Energy, Inc. *		27,630		415,555
Clayton Williams Energy, Inc. *		3,450		304,808
Clean Energy Fuels Corp. *(a)		19,416		364,827
Cloud Peak Energy, Inc. *		22,871		405,274
Comstock Resources, Inc. *		17,964		287,963
Contango Oil & Gas Co. *		5,175		329,027
Crosstex Energy, Inc.		17,657		242,431
CVR Energy, Inc. *		34,155		929,358
Dawson Geophysical Co. *		3,105		117,648
Delek US Holdings, Inc.		5,703		75,337
DHT Holding, Inc.		20,700		22,977
Dresser-Rand Group, Inc. *		28,635		1,503,910
Dril-Quip, Inc. *		13,800		965,862
Endeavour International Corp. *(a)		14,071		162,801
Energy Partners Ltd. *		11,449		195,091
Exterran Holdings, Inc. *		24,252		349,229
FX Energy, Inc. *		19,787		125,252
Gastar Exploration Ltd. *		22,425		64,360
GeoResources, Inc. *		8,282		265,355
Gevo, Inc. *(a)		2,689		26,917
Global Geophysical Services, Inc. *		8,161		87,976
GMX Resources, Inc. *(a)		21,811		38,387
Goodrich Petroleum Corp. *(a)		10,272		163,633
Green Plains Renewable Energy, Inc. *		8,640		98,064
Gulf Island Fabrication, Inc.		4,683		137,259
Gulfmark Offshore, Inc., Class A *		10,185		511,694
Gulfport Energy Corp. *		17,595		591,544
Hallador Energy Co. (a)		2,108		21,291
Harvest Natural Resources, Inc. *(a)		12,939		85,656
Helix Energy Solutions Group, Inc. *		37,777		726,829
Hercules Offshore, Inc. *		52,095		264,643
Hornbeck Offshore Services, Inc. *		11,730		477,997
Houston American Energy Corp. *(a)		7,300		79,132
Hyperdynamics Corp. *(a)		51,750		70,380
ION Geophysical Corp. *		44,850		321,126
Isramco, Inc. *		408		33,701
James River Coal Co. *(a)		13,665		78,300
Key Energy Services, Inc. *		57,270		977,026
KiOR, Inc., Class A *(a)		3,949		34,356
Kodiak Oil & Gas Corp. *		94,530		915,996
Laredo Petroleum Holdings, Inc. *		6,555		166,300
Lufkin Industries, Inc.		11,725		933,779
Magnum Hunter Resources Corp. *(a)		47,437		328,264
Matador Resources Co. *		5,470		64,874
Matrix Service Co. *		10,410		137,828
McMoRan Exploration Co. *		41,083		575,162
Newpark Resources, Inc. *		34,500		271,515
Northern Oil and Gas, Inc. *		23,616		559,935
Oasis Petroleum, Inc. *		26,902		862,747
Oil States International, Inc. *		19,669		1,597,516
Overseas Shipholding Group, Inc. (a)		10,473		92,686
OYO Geospace Corp. *		2,070		227,804
Parker Drilling Co. *		44,505		281,717
Patriot Coal Corp. *		34,156		246,948
Penn Virginia Corp.		17,443		85,296
Petroleum Development Corp. *		9,097		296,016
PetroQuest Energy, Inc. *		21,601		131,766
PHI, Inc. *		5,177		114,412
Pioneer Drilling Co. *		23,148		230,554
Quicksilver Resources, Inc. *		45,408		251,560
Recovery Energy, Inc. *(a)		4,140		17,140
Renewable Energy Group, Inc. *		3,076		29,437
Rentech, Inc. *		84,180		149,840
Resolute Energy Corp. *		19,101		213,167
Rex Energy Corp. *		17,940		206,310
Rosetta Resources, Inc. *		20,355		1,038,919
RPC, Inc. (a)		18,373		294,152
Sanchez Energy Corp. *		4,140		99,070
SEACOR Holdings, Inc. *		8,282		818,924
SemGroup Corp., Class A *		14,145		401,294

80 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Ship Finance International Ltd. (a)		16,098		221,026
Solazyme, Inc. *(a)		4,272		58,868
Stone Energy Corp. *		19,320		617,274
Superior Energy Services, Inc. *		59,329		1,740,713
Swift Energy Co. *		16,560		497,297
Targa Resources Corp.		12,765		567,149
Teekay Corp.		16,207		466,762
Tesco Corp. *		12,420		190,274
Tesoro Corp. *		54,510		1,446,150
TETRA Technologies, Inc. *		28,445		258,565
Unit Corp. *		18,975		902,641
USEC, Inc. *(a)		55,200		73,968
VAALCO Energy, Inc. *		21,391		168,775
Venoco, Inc. *		10,831		118,058
Voyager Oil & Gas, Inc. *(a)		20,700		67,068
W&T Offshore, Inc.		14,174		357,894
Warren Resources, Inc. *		26,787		104,469
Western Refining, Inc.		20,824		377,956
Willbros Group, Inc. *		18,630		78,246
World Fuel Services Corp.		27,255		1,135,443

				38,886,238

Food & Staples Retailing 0.9%
Arden Group, Inc., Class A		690		61,783
Casey’s General Stores, Inc.		14,490		742,323
Chefs’ Warehouse Holdings, LLC *		5,520		115,920
Fresh Market, Inc. *		11,730		528,085
Ingles Markets, Inc., Class A		4,963		88,689
Nash Finch Co.		4,706		126,168
PriceSmart, Inc.		6,900		445,947
Rite Aid Corp. *		228,045		351,189
Roundy’s, Inc. *		7,180		71,800
Ruddick Corp.		16,215		664,166
Spartan Stores, Inc.		8,625		153,870
SUPERVALU, Inc. (a)		80,730		527,167
Susser Holdings Corp. *		2,992		75,817
The Andersons, Inc.		7,000		301,630
The Pantry, Inc. *		9,233		114,766
United Natural Foods, Inc. *		18,630		848,038
Village Super Market, Inc., Class A		1,915		57,622
Weis Markets, Inc.		4,485		192,227
Winn-Dixie Stores, Inc. *		20,355		192,965

				5,660,172

Food, Beverage & Tobacco 1.5%
Alico, Inc.		1,450		33,727
Alliance One International, Inc. *		37,950		140,036
B&G Foods, Inc.		18,368		427,607
Cal-Maine Foods, Inc.		4,926		189,651
Calavo Growers, Inc.		4,742		130,405
Central European Distribution Corp. *(a)		24,497		106,807
Chiquita Brands International, Inc. *		17,377		166,645
Coca-Cola Bottling Co. Consolidated		2,070		133,391
Darling International, Inc. *		43,856		701,257
Dean Foods Co. *		70,380		862,859
Diamond Foods, Inc. (a)		8,629		206,406
Dole Food Co., Inc. *		13,920		133,354
Flowers Foods, Inc.		52,440		1,003,702
Fresh Del Monte Produce, Inc.		14,492		325,490
Harbinger Group, Inc. *		3,625		16,530
J&J Snack Foods Corp.		5,520		276,938
Lancaster Colony Corp.		7,590		494,640
Limoneira Co. (a)		3,481		63,842
National Beverage Corp. *		3,890		62,279
Pilgrim’s Pride Corp. *		21,635		135,651
Primo Water Corp. *		5,175		13,766
Sanderson Farms, Inc.		7,935		390,402
Seneca Foods Corp., Class A *		3,883		99,482
Smart Balance, Inc. *		21,105		126,419
Snyders-Lance, Inc.		23,951		537,700
Star Scientific, Inc. *(a)		43,393		162,724
The Boston Beer Co., Inc., Class A *(a)		3,450		326,094
The Hain Celestial Group, Inc. *		14,137		577,355
Tootsie Roll Industries, Inc. (a)		11,097		258,005
TreeHouse Foods, Inc. *		13,804		795,110
Universal Corp.		9,315		427,931
Vector Group Ltd. (a)		15,040		272,976

				9,599,181

Health Care Equipment & Services 7.2%
Abaxis, Inc. *		8,282		219,970
ABIOMED, Inc. *		12,573		262,524
Accretive Health, Inc. *(a)		14,759		383,586
Accuray, Inc. *		23,199		157,289
Air Methods Corp. *		4,485		404,682
Alere, Inc. *		34,155		868,562
Align Technology, Inc. *		22,964		588,108
Alimera Sciences, Inc. *(a)		3,590		13,498
Allscripts Healthcare Solutions, Inc. *		70,725		1,366,407
Almost Family, Inc. *		3,306		75,641
Alphatec Holdings, Inc. *		21,045		39,565
Amedisys, Inc. *		11,122		142,918
AMERIGROUP Corp. *		18,287		1,242,236
AMN Healthcare Services, Inc. *		15,263		81,504
AmSurg Corp. *		11,939		311,966
Analogic Corp.		4,830		275,068
AngioDynamics, Inc. *		9,438		122,883
ArthroCare Corp. *		11,040		288,144
Assisted Living Concepts, Inc., Class A		7,717		123,858
athenahealth, Inc. *		13,455		950,865
Atrion Corp.		692		142,552
Bio-Reference Labs, Inc. *		9,237		186,033
BioScrip, Inc. *		20,520		130,097
Brookdale Senior Living, Inc. *		38,643		720,305
Cantel Medical Corp.		8,280		167,173
Catalyst Health Solutions, Inc. *		16,905		1,048,448
Centene Corp. *		19,320		942,816
Chemed Corp.		8,280		511,870
Community Health Systems, Inc. *		34,990		883,148
Computer Programs & Systems, Inc.		4,489		273,111
Conceptus, Inc. *		10,226		137,744
CONMED Corp. *		10,695		319,139
CorVel Corp. *		2,512		113,894
Cross Country Healthcare, Inc. *		12,075		68,344
CryoLife, Inc. *		10,524		57,356
Cyberonics, Inc. *		10,538		392,330
Dexcom, Inc. *		25,899		279,450

See financial notes 81

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Emeritus Corp. *		11,552		213,250
Endologix, Inc. *		19,665		260,168
ePocrates, Inc. *		5,764		53,605
ExamWorks Group, Inc. *		12,987		134,026
Gentiva Health Services, Inc. *		11,444		89,835
Greatbatch, Inc. *		8,987		222,428
Greenway Medical Technologies *(a)		2,734		40,463
Haemonetics Corp. *		10,005		670,635
Hanger Orthopedic Group, Inc. *		12,664		262,018
Health Management Associates, Inc., Class A *		96,463		711,897
Health Net, Inc. *		34,155		1,289,010
HEALTHSOUTH Corp. *		36,570		744,565
Healthways, Inc. *		13,237		105,234
Hill-Rom Holdings, Inc.		24,142		820,104
HMS Holdings Corp. *		32,430		1,044,895
ICU Medical, Inc. *		4,830		221,600
Insulet Corp. *		15,395		303,589
Integra LifeSciences Holdings Corp. *		8,280		261,648
Invacare Corp.		11,942		197,162
IPC The Hospitalist Co. *		6,210		225,858
IRIS International, Inc. *		7,319		81,753
Kensey Nash Corp.		3,289		74,266
Kindred Healthcare, Inc. *		19,939		205,172
Landauer, Inc.		3,795		203,564
LHC Group, Inc. *		6,031		102,648
LifePoint Hospitals, Inc. *		18,630		726,011
Lincare Holdings, Inc.		33,810		908,137
Magellan Health Services, Inc. *		11,040		521,750
MAKO Surgical Corp. *(a)		14,145		553,069
Masimo Corp. *		20,879		455,162
MedAssets, Inc. *		20,459		292,155
MedCath Corp.		7,690		59,674
Medidata Solutions, Inc. *		8,809		175,651
MEDNAX, Inc. *		18,630		1,385,886
Merge Healthcare, Inc. *		22,187		144,881
Meridian Bioscience, Inc.		15,934		287,131
Merit Medical Systems, Inc. *		15,914		199,243
MModal, Inc. *		11,906		122,513
Molina Healthcare, Inc. *		11,640		395,294
MWI Veterinary Supply, Inc. *		4,832		418,306
National Healthcare Corp.		4,140		185,555
Natus Medical, Inc. *		11,516		120,573
Navidea Biopharmaceuticals, Inc. *(a)		32,327		96,981
Neogen Corp. *		9,034		313,480
NuVasive, Inc. *		15,058		236,260
NxStage Medical, Inc. *		18,101		362,020
Omnicell, Inc. *		12,314		183,725
OraSure Technologies, Inc. *		17,087		171,383
Orthofix International N.V. *		6,935		271,921
Owens & Minor, Inc.		24,840		744,206
Palomar Medical Technologies, Inc. *		6,769		74,730
PharMerica Corp. *		11,199		137,300
PSS World Medical, Inc. *		20,026		485,230
Quality Systems, Inc.		14,490		621,186
Quidel Corp. *		11,051		156,703
RTI Biologics, Inc. *		20,719		76,660
Select Medical Holdings Corp. *		21,390		180,104
Sirona Dental Systems, Inc. *		21,390		1,067,361
Skilled Healthcare Group, Inc., Class A *		9,109		59,482
STERIS Corp.		20,692		649,315
Sun Healthcare Group, Inc. *		9,660		43,084
Sunrise Senior Living, Inc. *(a)		20,727		160,427
SurModics, Inc. *		6,581		93,450
Symmetry Medical, Inc. *		13,553		98,124
Team Health Holdings, Inc. *		11,056		239,805
Teleflex, Inc.		15,525		920,167
Tenet Healthcare Corp. *		165,255		933,691
The Cooper Cos., Inc.		17,940		1,425,871
The Ensign Group, Inc.		6,555		179,673
Thoratec Corp. *		22,770		785,565
Triple-S Management Corp., Class B *		7,801		184,650
Unilife Corp. *(a)		24,190		89,745
Universal American Corp.		13,895		157,569
Vanguard Health Systems, Inc. *		13,800		137,448
VCA Antech, Inc. *		33,120		728,309
Volcano Corp. *		20,355		570,551
WellCare Health Plans, Inc. *		16,215		1,100,350
West Pharmaceutical Services, Inc.		12,787		531,939
Wright Medical Group, Inc. *		15,629		258,816
Zeltiq Aesthetics, Inc. *(a)		2,415		26,758
Zoll Medical Corp. *		8,625		630,919

				44,968,426

Household & Personal Products 0.5%
Central Garden & Pet Co., Class A *		18,491		176,959
Elizabeth Arden, Inc. *		10,695		397,319
Inter Parfums, Inc.		6,555		110,583
Medifast, Inc. *(a)		5,654		91,764
Nature’s Sunshine Products, Inc. *		3,837		56,596
Nu Skin Enterprises, Inc., Class A		22,425		1,295,268
Prestige Brands Holdings, Inc., Class A *		18,720		308,880
Revlon, Inc., Class A *		4,580		69,433
Spectrum Brands Holdings, Inc. *		9,393		266,949
USANA Health Sciences, Inc. *(a)		3,450		127,995
WD-40 Co.		5,902		254,258

				3,156,004

Insurance 3.0%
American Equity Investment Life Holding Co.		22,278		269,564
American National Insurance Co.		5,520		397,992
AMERISAFE, Inc. *		7,129		160,830
AmTrust Financial Services, Inc.		9,149		247,114
Argo Group International Holdings Ltd.		11,618		346,797
Arthur J. Gallagher & Co.		42,780		1,459,654
Aspen Insurance Holdings Ltd.		27,255		723,075
Baldwin & Lyons, Inc., Class B		3,834		80,667
Citizens, Inc. *		14,704		157,039
CNO Financial Group, Inc. *		85,560		634,855
Crawford & Co., Class B		9,852		43,349
Delphi Financial Group, Inc., Class A		18,630		830,153
Donegal Group, Inc., Class A		3,529		48,594
eHealth, Inc. *		7,374		110,831
EMC Insurance Group, Inc.		1,964		41,381

82 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Employers Holdings, Inc.		14,146		244,584
Endurance Specialty Holdings Ltd.		15,525		597,092
Enstar Group Ltd. *		3,797		368,233
FBL Financial Group, Inc., Class A		5,056		171,752
First American Financial Corp.		39,537		608,870
Flagstone Reinsurance Holdings S.A.		20,700		163,944
Global Indemnity plc *		5,870		112,293
Greenlight Capital Re Ltd., Class A *		11,767		277,113
Hanover Insurance Group, Inc.		17,940		732,311
Harleysville Group, Inc.		4,830		273,426
Hilltop Holdings, Inc. *		15,650		128,956
Horace Mann Educators Corp.		15,252		264,317
Infinity Property & Casualty Corp.		4,830		264,829
Kansas City Life Insurance Co.		1,532		49,055
Kemper Corp.		16,905		483,821
Maiden Holdings Ltd.		23,805		205,913
MBIA, Inc. *(a)		58,305		628,528
Meadowbrook Insurance Group, Inc.		20,355		193,780
Mercury General Corp.		10,005		429,014
Montpelier Re Holdings Ltd.		23,805		410,636
National Financial Partners Corp. *		15,927		243,046
National Interstate Corp.		2,681		64,746
National Western Life Insurance Co., Class A		1,035		140,512
OneBeacon Insurance Group Ltd., Class A		8,627		131,562
Platinum Underwriters Holdings Ltd.		14,490		515,264
Presidential Life Corp.		7,433		80,425
Primerica, Inc.		18,285		457,491
ProAssurance Corp.		11,385		999,148
Protective Life Corp.		33,465		929,323
RLI Corp.		6,585		461,345
Safety Insurance Group, Inc.		5,520		235,594
Seabright Holdings, Inc.		7,792		63,739
Selective Insurance Group, Inc.		20,700		355,626
StanCorp Financial Group, Inc.		17,250		685,860
State Auto Financial Corp.		5,756		80,469
Stewart Information Services Corp. (a)		6,821		89,628
Symetra Financial Corp.		29,670		294,920
The Navigators Group, Inc. *		4,537		213,284
The Phoenix Cos., Inc. *		41,745		86,412
Tower Group, Inc.		13,914		320,718
United Fire Group, Inc.		8,790		176,591
Universal Insurance Holdings, Inc.		9,564		38,543

				18,824,608

Materials 5.7%
A. Schulman, Inc.		11,761		303,904
A.M. Castle & Co. *		7,075		81,009
AbitibiBowater, Inc. *		27,712		423,994
AK Steel Holding Corp.		40,818		323,279
AMCOL International Corp.		10,218		299,694
American Vanguard Corp.		9,232		152,513
Balchem Corp.		11,385		310,241
Boise, Inc.		45,605		375,329
Buckeye Technologies, Inc.		15,196		519,095
Cabot Corp.		23,805		964,341
Calgon Carbon Corp. *		20,955		316,630
Carpenter Technology Corp.		16,900		866,970
Century Aluminum Co. *		24,303		238,412
Chemtura Corp. *		37,260		578,275
Clearwater Paper Corp. *		8,675		297,639
Coeur d’Alene Mines Corp. *		35,190		1,000,804
Commercial Metals Co.		44,012		584,919
Compass Minerals International, Inc.		12,422		895,005
Cytec Industries, Inc.		19,320		1,148,767
Deltic Timber Corp.		4,830		314,964
Domtar Corp.		14,145		1,356,081
Eagle Materials, Inc.		17,135		537,696
Ferro Corp. *		32,775		181,901
FutureFuel Corp.		5,261		58,134
General Moly, Inc. *(a)		24,630		88,914
Georgia Gulf Corp. *		12,599		406,444
Glatfelter		17,599		274,720
Globe Specialty Metals, Inc.		20,076		285,481
Graphic Packaging Holding Co. *		48,645		256,846
Greif, Inc., Class A		15,525		795,035
H.B. Fuller Co.		18,875		568,704
Hawkins, Inc.		3,236		125,395
Haynes International, Inc.		4,830		305,691
Headwaters, Inc. *		23,115		70,270
Hecla Mining Co.		106,950		543,306
Horsehead Holding Corp. *		16,784		191,338
Innophos Holdings, Inc.		8,316		418,960
Intrepid Potash, Inc. *		19,680		497,707
Kaiser Aluminum Corp.		6,266		302,898
KapStone Paper and Packaging Corp. *		16,095		323,510
Koppers Holdings, Inc.		7,961		299,572
Kraton Performance Polymers, Inc. *		12,420		345,152
Kronos Worldwide, Inc.		7,599		177,589
Louisiana-Pacific Corp. *		49,808		406,931
LSB Industries, Inc. *		7,245		291,394
Materion Corp. *		7,694		225,819
McEwen Mining, Inc. *(a)		73,830		386,131
Metals USA Holdings Corp. *		4,977		65,099
Minerals Technologies, Inc.		6,900		445,533
Myers Industries, Inc.		13,110		174,625
Neenah Paper, Inc.		5,394		150,439
NewMarket Corp.		3,795		692,322
NL Industries, Inc.		2,898		42,890
Noranda Aluminium Holding Corp.		8,545		102,540
Olin Corp.		27,600		580,428
Olympic Steel, Inc.		3,834		89,869
OM Group, Inc. *		12,265		337,042
Omnova Solutions, Inc. *		17,250		87,975
Packaging Corp. of America		38,985		1,155,515
PolyOne Corp.		34,749		466,679
Quaker Chemical Corp.		4,831		199,086
Rock-Tenn Co., Class A		27,600		1,945,524
RPM International, Inc.		50,359		1,202,069
RTI International Metals, Inc. *		11,232		253,169
Schnitzer Steel Industries, Inc., Class A		8,979		405,492
Schweitzer-Mauduit International, Inc.		6,210		435,010
Sensient Technologies Corp.		19,320		714,647
Silgan Holdings, Inc.		17,940		762,809
Solutia, Inc.		46,920		1,318,921
Spartech Corp. *		9,712		56,330
Stepan Co.		3,105		271,470

See financial notes 83

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Stillwater Mining Co. *		43,470		617,274
STR Holdings, Inc. *		16,215		115,127
SunCoke Energy, Inc. *		26,565		380,676
Texas Industries, Inc. (a)		8,785		297,197
TPC Group, Inc. *		5,523		191,869
United States Lime & Minerals, Inc. *		725		44,153
US Silica Holdings, Inc. *(a)		4,786		80,979
W.R. Grace & Co. *		24,150		1,375,584
Wausau Paper Corp.		18,474		172,547
Westlake Chemical Corp.		7,590		457,146
Worthington Industries, Inc.		20,700		349,209
Zep, Inc.		8,370		126,973
Zoltek Cos., Inc. *		10,519		127,175

				36,008,795

Media 1.4%
Arbitron, Inc.		10,188		340,687
Ascent Media Corp., Class A *		5,865		288,793
Belo Corp., Class A		35,190		252,312
Cinemark Holdings, Inc.		37,260		779,479
Crown Media Holdings, Inc., Class A *(a)		12,452		15,939
Digital Domain Media Group, Inc. *(a)		2,760		15,484
Digital Generation, Inc. *		9,048		90,480
DreamWorks Animation SKG, Inc., Class A *		26,220		452,557
Entercom Communications Corp., Class A *		10,005		70,035
Entravision Communications Corp., Class A		19,100		31,706
Fisher Communications, Inc. *		2,298		65,884
Harte-Hanks, Inc.		16,800		146,832
Journal Communications, Inc., Class A *		15,733		74,732
Knology, Inc. *		12,891		229,846
Lamar Advertising Co., Class A *		22,483		735,194
LIN TV Corp., Class A *		12,255		50,491
Live Nation Entertainment, Inc. *		59,714		556,534
Madison Square Garden, Inc., Class A *		22,109		704,172
Martha Stewart Living Omnimedia, Class A (a)		10,695		48,127
Meredith Corp. (a)		14,490		476,721
Morningstar, Inc.		9,752		583,852
National CineMedia, Inc.		20,900		332,519
Pandora Media, Inc. *		23,460		306,388
ReachLocal, Inc. *		3,522		27,472
Regal Entertainment Group, Class A (a)		29,238		404,069
Scholastic Corp.		9,315		284,759
Sinclair Broadcast Group, Inc.		18,352		209,580
The Dolan Media Co. *		10,352		92,961
The E.W. Scripps Co., Class A *		12,653		120,456
The McClatchy Co., Class A *(a)		19,320		49,073
The New York Times Co., Class A *		48,990		322,844
Valassis Communications, Inc. *		17,681		441,671
World Wrestling Entertainment, Inc., Class A (a)		11,051		101,006

				8,702,655

Pharmaceuticals, Biotechnology & Life Sciences 5.1%
Achillion Pharmaceuticals, Inc. *		17,498		183,729
Acorda Therapeutics, Inc. *		15,525		406,134
Aedea Biosciences, Inc. *		9,315		198,596
Affymax, Inc. *		14,145		144,420
Affymetrix, Inc. *		23,690		98,787
Akorn, Inc. *		25,451		318,901
Alkermes plc *		37,260		656,149
Allos Therapeutics, Inc. *		20,355		30,329
Alnylam Pharmaceuticals, Inc. *		16,905		225,513
AMAG Pharmaceuticals, Inc. *		8,491		134,243
Amylin Pharmaceuticals, Inc. *		50,840		868,856
Arena Pharmaceuticals, Inc. *		60,375		107,467
ARIAD Pharmaceuticals, Inc. *		57,960		831,146
ArQule, Inc. *		20,155		143,100
Array BioPharma, Inc. *		30,280		85,087
Auxilium Pharmaceuticals, Inc. *		18,118		358,012
AVANIR Pharmaceuticals, Inc. *(a)		46,643		128,735
AVEO Pharmaceuticals, Inc. *		16,273		212,200
Bio-Rad Laboratories, Inc., Class A *		7,603		774,898
BioCryst Pharmaceuticals, Inc. *(a)		14,698		68,493
BioMarin Pharmaceutical, Inc. *		44,160		1,578,720
Bruker Corp. *		35,880		575,156
Cadence Pharmaceuticals, Inc. *(a)		20,768		77,880
Cell Therapeutics, Inc. *(a)		72,462		92,751
Cepheid, Inc. *		24,495		989,353
Charles River Laboratories International, Inc. *		20,355		715,071
ChemoCentryx, Inc. *		1,708		17,490
Clovis Oncology, Inc. *(a)		3,450		86,216
Codexis, Inc. *		6,231		24,550
Cubist Pharmaceuticals, Inc. *		23,460		1,005,496
Cytori Therapeutics, Inc. *(a)		19,665		63,911
Dendreon Corp. *(a)		57,256		644,703
Durect Corp. *		30,360		22,466
Dyax Corp. *		37,260		55,517
Emergent Biosolutions, Inc. *		8,802		134,407
Endocyte, Inc. *		11,730		41,642
Enzo Biochem, Inc. *		12,302		31,739
Enzon Pharmaceuticals, Inc. *		13,885		98,167
eResearchTechnology, Inc. *		17,851		113,889
Exact Sciences Corp. *		19,568		183,744
Exelixis, Inc. *		48,990		278,263
Fluidigm Corp. *		6,103		88,005
Genomic Health, Inc. *		7,592		221,535
Geron Corp. *		50,025		100,050
Halozyme Therapeutics, Inc. *		32,303		371,808
Hi-Tech Pharmacal Co., Inc. *		3,795		151,496
Idenix Pharmaceuticals, Inc. *		25,546		300,676
ImmunoGen, Inc. *		28,897		397,912
Immunomedics, Inc. *		25,238		89,847
Impax Laboratories, Inc. *		24,873		580,785
Incyte Corp. *(a)		37,950		643,632
InterMune, Inc. *		24,840		333,353
Ironwood Pharmaceuticals, Inc. *		17,970		240,618
Isis Pharmaceuticals, Inc. *		35,880		326,867
Jazz Pharmaceuticals plc *		5,883		308,681
Lexicon Pharmaceuticals, Inc. *		65,550		111,435
Luminex Corp. *		15,608		350,712
MannKind Corp. *(a)		34,500		80,730
MAP Pharmaceuticals, Inc. *		9,550		153,277

84 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Medicis Pharmaceutical Corp., Class A		24,495		855,855
Medivation, Inc. *		13,455		881,437
Metabolix, Inc. *(a)		11,784		32,406
Micromet, Inc. *		33,950		373,110
Momenta Pharmaceuticals, Inc. *		17,011		249,381
Myriad Genetics, Inc. *		33,120		801,504
Nektar Therapeutics *(a)		43,272		310,260
Neurocrine Biosciences, Inc. *		24,495		192,776
Novavax, Inc. *		37,260		47,320
NPS Pharmaceuticals, Inc. *		32,284		220,177
Obagi Medical Products, Inc. *		7,146		81,107
Onyx Pharmaceuticals, Inc. *		25,185		965,089
Opko Health, Inc. *(a)		58,650		289,731
Optimer Pharmaceuticals, Inc. *(a)		16,130		206,303
Osiris Therapeutics, Inc. *(a)		5,911		30,855
Pacific Biosciences of California, Inc. *		16,632		69,355
Pain Therapeutics, Inc. *		13,116		48,136
Par Pharmaceutical Cos., Inc. *		14,145		524,921
PAREXEL International Corp. *		22,590		553,003
PDL BioPharma, Inc.		53,130		338,969
Pharmacyclics, Inc. *		20,700		521,433
POZEN, Inc. *		7,391		32,225
Progenics Pharmaceuticals, Inc. *		11,132		108,537
Questcor Pharmaceuticals, Inc. *		22,425		872,332
Rigel Pharmaceuticals, Inc. *		26,487		264,870
Sagent Pharmaceuticals, Inc. *		5,520		119,729
Salix Pharmaceuticals Ltd. *		20,355		1,003,909
Sangamo BioSciences, Inc. *(a)		18,382		96,873
Santarus, Inc. *		20,378		92,109
Savient Pharmaceuticals, Inc. *(a)		24,150		48,542
Seattle Genetics, Inc. *(a)		38,491		710,544
Sequenom, Inc. *		42,780		184,810
SIGA Technologies, Inc. *(a)		13,800		39,330
Spectrum Pharmaceuticals, Inc. *		22,080		313,315
Sucampo Pharmaceuticals, Inc., Class A *		4,830		35,259
Synergy Pharmaceuticals, Inc. *		9,315		41,731
Targacept, Inc. *		10,572		72,101
The Medicines Co. *		20,548		440,344
Theravance, Inc. *		27,255		509,668
Vanda Pharmaceuticals, Inc. *		11,080		51,411
ViroPharma, Inc. *		26,910		862,735
VIVUS, Inc. *		33,340		750,150
XenoPort, Inc. *		13,349		53,396
ZIOPHARM Oncology, Inc. *(a)		26,220		128,740

				32,083,133

Real Estate 8.5%
Acadia Realty Trust		16,215		343,596
Alexander’s, Inc.		1,035		392,731
American Assets Trust, Inc.		11,187		240,744
American Campus Communities, Inc.		26,565		1,093,150
American Capital Mortgage Investment Corp.		3,242		69,898
Anworth Mortgage Asset Corp.		50,370		327,405
Apartment Investment & Management Co., Class A		46,230		1,148,353
ARMOUR Residential REIT, Inc.		46,230		326,846
Ashford Hospitality Trust		25,554		215,676
Associated Estates Realty Corp.		16,024		239,078
AV Homes, Inc. *		3,720		38,948
BioMed Realty Trust, Inc.		58,413		1,075,967
Brandywine Realty Trust		51,060		551,959
Campus Crest Communities, Inc.		11,947		126,519
CapLease, Inc.		25,875		104,276
Capstead Mortgage Corp.		31,654		420,998
CBL & Associates Properties, Inc.		53,820		948,847
Cedar Realty Trust, Inc.		20,355		96,890
Chesapeake Lodging Trust		12,082		213,006
Cogdell Spencer, Inc.		17,633		74,588
Colonial Properties Trust		33,810		693,781
Colony Financial, Inc.		12,420		207,166
CommonWealth REIT		32,430		603,198
Coresite Realty Corp.		7,662		163,584
Corporate Office Properties Trust		27,945		685,211
Cousins Properties, Inc.		32,085		237,108
CreXus Investment Corp.		25,530		284,659
CubeSmart		43,470		490,342
DCT Industrial Trust, Inc.		94,185		533,087
DiamondRock Hospitality Co.		63,825		635,697
Douglas Emmett, Inc.		48,300		1,017,681
Duke Realty Corp.		95,910		1,331,231
DuPont Fabros Technology, Inc.		23,806		545,157
EastGroup Properties, Inc.		10,073		485,418
Education Realty Trust, Inc.		33,120		340,474
Entertainment Properties Trust		17,595		800,572
Equity Lifestyle Properties, Inc.		15,180		1,009,622
Equity One, Inc.		23,236		441,949
Extra Space Storage, Inc.		35,880		946,156
FelCor Lodging Trust, Inc. *		47,265		181,498
First Industrial Realty Trust, Inc. *		30,360		358,855
First Potomac Realty Trust		19,464		257,509
Forest City Enterprises, Inc., Class A *		49,697		726,570
Forestar Group, Inc. *		13,916		218,342
Franklin Street Properties Corp.		28,697		295,866
Getty Realty Corp.		10,898		185,266
Glimcher Realty Trust		40,369		399,653
Government Properties Income Trust		13,924		324,847
Hatteras Financial Corp.		29,670		845,002
Healthcare Realty Trust, Inc.		29,196		603,481
Hersha Hospitality Trust		56,580		284,597
Highwoods Properties, Inc.		27,600		883,200
Home Properties, Inc.		18,630		1,073,647
Hospitality Properties Trust		46,920		1,160,332
Hudson Pacific Properties, Inc.		8,794		134,460
Inland Real Estate Corp.		29,528		256,008
Invesco Mortgage Capital		44,505		762,371
Investors Real Estate Trust		30,705		234,279
iStar Financial, Inc. *(a)		28,998		204,436
Kennedy-Wilson Holdings, Inc.		13,110		177,247
Kilroy Realty Corp.		26,191		1,148,213
Kite Realty Group Trust		22,770		111,801
LaSalle Hotel Properties		33,465		892,846
Lexington Realty Trust		52,785		456,590
LTC Properties, Inc.		11,430		352,730
Mack-Cali Realty Corp.		34,155		976,833
Medical Properties Trust, Inc.		50,644		492,260
MFA Financial, Inc.		136,620		997,326

See financial notes 85

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mid-America Apartment Communities, Inc.		14,145		882,224
National Health Investors, Inc.		9,307		438,639
National Retail Properties, Inc.		36,570		974,590
NorthStar Realty Finance Corp.		36,225		193,441
OMEGA Healthcare Investors, Inc.		39,163		797,750
Parkway Properties, Inc.		8,851		88,421
Pebblebrook Hotel Trust		19,665		421,421
Pennsylvania REIT		21,045		282,424
Pennymac Mortgage Investment Trust		10,410		187,380
Post Properties, Inc.		19,145		836,062
Potlatch Corp.		15,525		478,480
PS Business Parks, Inc.		7,245		452,233
Ramco-Gershenson Properties Trust		15,304		169,415
Redwood Trust, Inc.		26,811		310,203
Resource Capital Corp.		27,962		161,341
Retail Opportunity Investments Corp.		18,285		212,655
RLJ Lodging Trust		24,495		429,152
Sabra Healthcare REIT, Inc.		14,490		206,917
Saul Centers, Inc.		2,965		112,255
Senior Housing Properties Trust		62,445		1,336,323
Sovran Self Storage, Inc.		10,695		508,119
Starwood Property Trust, Inc.		35,535		701,461
Strategic Hotels & Resorts, Inc. *		55,747		347,304
Summit Hotel Properties, Inc.		10,788		99,357
Sun Communities, Inc.		9,660		399,827
Sunstone Hotel Investors, Inc. *		44,505		399,655
Tanger Factory Outlet Centers, Inc.		33,465		979,855
Taubman Centers, Inc.		22,080		1,525,066
Tejon Ranch Co. *		5,764		168,424
The Howard Hughes Corp. *		10,005		555,778
The St. Joe Co. *		35,190		566,911
Two Harbors Investment Corp.		66,930		688,040
Universal Health Realty Income Trust		4,830		182,526
Urstadt Biddle Properties, Class A		7,937		150,962
Walter Investment Management Corp.		10,438		212,726
Washington REIT		25,519		755,873
Weingarten Realty Investors		46,230		1,151,127
Winthrop Realty Trust		9,662		110,050

				52,972,020

Retailing 5.1%
1-800-FLOWERS.COM, Inc., Class A *		9,051		24,709
Aaron’s, Inc.		27,600		771,144
Aeropostale, Inc. *		31,050		557,968
America’s Car-Mart, Inc. *		3,831		170,901
Ann, Inc. *		19,665		469,797
Asbury Automotive Group, Inc. *		12,571		325,966
Ascena Retail Group, Inc. *		24,487		945,198
Barnes & Noble, Inc. *(a)		16,273		216,594
bebe stores, Inc.		13,491		120,879
Big 5 Sporting Goods Corp.		7,590		59,126
Big Lots, Inc. *		25,185		1,104,362
Blue Nile, Inc. *(a)		5,327		189,908
Brown Shoe Co., Inc.		16,223		174,884
Cabela’s, Inc. *		18,409		653,151
Charming Shoppes, Inc. *		44,850		253,403
Chico’s FAS, Inc.		66,145		992,836
Christopher & Banks Corp.		9,365		20,041
Citi Trends, Inc. *		5,622		60,942
Coldwater Creek, Inc. *		31,050		29,187
Collective Brands, Inc. *		23,124		416,694
Core-Mark Holding Co., Inc.		4,215		168,937
Dillard’s, Inc., Class A		12,765		780,452
DSW, Inc., Class A		9,660		544,824
Express, Inc. *		27,600		656,880
Foot Locker, Inc.		59,340		1,730,948
Francesca’s Holdings Corp. *		5,865		134,602
Fred’s, Inc., Class A		14,541		201,393
Gaiam, Inc., Class A *		6,346		22,973
Genesco, Inc. *		9,319		634,997
GNC Holdings, Inc., Class A *		21,390		692,394
Gordmans Stores, Inc. *		1,960		29,733
Group 1 Automotive, Inc.		8,970		462,583
Haverty Furniture Cos., Inc.		7,682		84,502
hhgregg, Inc. *(a)		8,852		101,178
Hibbett Sports, Inc. *		10,522		515,052
HomeAway, Inc. *(a)		11,385		301,475
Hot Topic, Inc.		15,281		136,307
HSN, Inc.		15,705		583,598
Jos. A. Bank Clothiers, Inc. *		10,350		532,921
Kirkland’s, Inc. *		6,567		104,744
Lithia Motors, Inc.		8,470		199,977
Lumber Liquidators Holdings, Inc. *		9,174		200,819
MarineMax, Inc. *		8,828		71,330
Mattress Firm Holding Corp. *(a)		2,070		68,807
Monro Muffler Brake, Inc.		11,730		538,055
New York & Co., Inc. *		9,849		25,706
NutriSystem, Inc. (a)		10,701		120,600
Office Depot, Inc. *		105,225		347,242
OfficeMax, Inc. *		33,140		185,584
Orbitz Worldwide, Inc. *		8,625		30,964
Overstock.com, Inc. *		4,514		28,709
Pacific Sunwear Of California, Inc. *		25,185		52,889
Penske Automotive Group, Inc.		17,595		423,688
PetMed Express, Inc. (a)		7,134		86,892
Pier 1 Imports, Inc. *		41,745		716,762
RadioShack Corp. (a)		37,448		265,506
Rent-A-Center, Inc.		22,425		794,293
Rue21, Inc. *		5,619		149,915
Saks, Inc. *(a)		42,780		498,387
Sally Beauty Holdings, Inc. *		54,088		1,287,294
Select Comfort Corp. *		21,066		623,343
Shoe Carnival, Inc. *		3,497		91,551
Shutterfly, Inc. *		11,385		311,494
Signet Jewelers Ltd.		33,120		1,553,328
Sonic Automotive, Inc., Class A		13,182		225,808
Stage Stores, Inc.		13,112		196,024
Stamps.com, Inc. *		4,963		128,294
Stein Mart, Inc. *		9,828		70,467
Systemax, Inc. *		4,141		79,921
Teavana Holdings, Inc. *(a)		2,664		62,471
The Buckle, Inc.		10,350		464,922
The Cato Corp., Class A		10,768		291,920
The Children’s Place Retail Stores, Inc. *		9,744		494,508
The Finish Line, Inc., Class A		20,028		460,444
The Men’s Wearhouse, Inc.		20,010		774,987
The Pep Boys-Manny, Moe & Jack		20,619		310,110

86 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
The Talbots, Inc. *		26,350		77,996
The Wet Seal, Inc., Class A *		36,580		128,030
Ulta Salon, Cosmetics & Fragrance, Inc. *		18,979		1,579,812
Vitamin Shoppe, Inc. *		10,388		440,763
VOXX International Corp. *		7,320		93,623
Williams-Sonoma, Inc.		35,880		1,384,968
Zumiez, Inc. *		8,280		260,158

				32,176,544

Semiconductors & Semiconductor Equipment 3.6%
Advanced Energy Industries, Inc. *		14,583		174,996
Amkor Technology, Inc. *		40,865		261,127
ANADIGICS, Inc. *		25,530		65,612
Applied Micro Circuits Corp. *		24,840		168,415
ATMI, Inc. *		12,167		268,039
Brooks Automation, Inc.		25,453		304,163
Cabot Microelectronics Corp. *		9,315		468,079
Cavium Networks, Inc. *		18,622		665,364
CEVA, Inc. *		9,034		222,688
Cirrus Logic, Inc. *		25,185		593,862
Cohu, Inc.		9,178		102,977
Cymer, Inc. *		10,833		498,101
Cypress Semiconductor Corp. *		58,650		1,011,712
Diodes, Inc. *		13,132		326,199
DSP Group, Inc. *		7,709		49,261
Entegris, Inc. *		51,279		463,562
Entropic Communications, Inc. *		32,474		200,202
Exar Corp. *		14,145		99,015
Fairchild Semiconductor International, Inc. *		48,990		714,764
FEI Co. *		14,492		645,184
FormFactor, Inc. *		19,732		100,831
GT Advanced Technologies, Inc. *		48,655		416,487
Hittite Microwave Corp. *		10,695		611,540
Inphi Corp. *		7,705		110,644
Integrated Device Technology, Inc. *		54,932		379,580
Intermolecular, Inc. *		3,795		23,833
International Rectifier Corp. *		26,910		604,129
Intersil Corp., Class A		47,756		540,598
IXYS Corp. *		10,366		123,666
Kopin Corp. *		25,530		91,908
Kulicke & Soffa Industries, Inc. *		27,726		312,195
Lattice Semiconductor Corp. *		45,540		300,109
LTX-Credence Corp. *		18,630		125,753
MaxLinear, Inc., Class A *		5,351		29,431
MEMC Electronic Materials, Inc. *		86,464		339,804
Micrel, Inc.		19,324		206,187
Microsemi Corp. *		33,120		692,870
MIPS Technologies, Inc. *		20,355		117,245
MKS Instruments, Inc.		20,042		600,258
Monolithic Power Systems, Inc. *		13,168		244,793
Nanometrics, Inc. *		7,940		139,347
Novellus Systems, Inc. *		26,565		1,234,741
OmniVision Technologies, Inc. *		22,330		365,542
Pericom Semiconductor Corp. *		8,975		69,018
Photronics, Inc. *		22,085		154,816
PMC-Sierra, Inc. *		88,320		606,758
Power Integrations, Inc.		11,385		424,660
Rambus, Inc. *		39,091		276,764
RF Micro Devices, Inc. *		105,915		505,215
Rubicon Technology, Inc. *		6,916		62,037
Rudolph Technologies, Inc. *		12,075		119,180
Semtech Corp. *		24,948		716,257
Sigma Designs, Inc. *		11,866		68,230
Silicon Image, Inc. *		29,862		154,387
Silicon Laboratories, Inc. *		16,215		726,432
Spansion, Inc., Class A *		18,694		239,283
Standard Microsystems Corp. *		8,851		226,497
SunPower Corp. *		17,250		129,892
Supertex, Inc. *		4,580		84,547
Teradyne, Inc. *		71,070		1,166,969
Tessera Technologies, Inc. *		19,572		328,810
TriQuint Semiconductor, Inc. *		62,156		400,285
Ultratech, Inc. *		9,688		263,610
Veeco Instruments, Inc. *		14,839		401,247
Volterra Semiconductor Corp. *		9,430		289,784

				22,429,491

Software & Services 8.2%
Accelrys, Inc. *		20,779		164,985
ACI Worldwide, Inc. *		14,544		549,472
Actuate Corp. *		17,940		108,358
Acxiom Corp. *		31,740		445,630
Advent Software, Inc. *		12,651		325,510
Ancestry.com, Inc. *(a)		11,177		254,612
Angie’s List, Inc. *(a)		3,105		49,680
AOL, Inc. *		37,260		669,190
Archipelago Learning, Inc. *		3,796		34,695
Ariba, Inc. *		36,915		1,161,715
Aspen Technology, Inc. *		36,225		744,786
Bankrate, Inc. *		16,560		394,790
Blackbaud, Inc.		17,081		538,906
Booz Allen Hamilton Holding Corp.		6,400		117,824
Bottomline Technologies, Inc. *		13,800		387,780
BroadSoft, Inc. *(a)		8,970		326,239
CACI International, Inc., Class A *		10,005		591,696
Cadence Design Systems, Inc. *		102,810		1,210,074
Carbonite, Inc. *(a)		5,488		53,179
Cass Information Systems, Inc.		3,583		137,910
CIBER, Inc. *		23,805		104,266
CommVault Systems, Inc. *		15,870		818,416
Compuware Corp. *		83,835		755,353
comScore, Inc. *		13,800		303,462
Concur Technologies, Inc. *		17,940		1,057,563
Constant Contact, Inc. *		11,547		349,181
Convergys Corp. *		40,365		519,901
CoreLogic, Inc. *		41,055		631,426
Cornerstone OnDemand, Inc. *		10,350		214,659
CSG Systems International, Inc. *		13,035		208,690
DealerTrack Holdings, Inc. *		15,870		441,980
Deltek, Inc. *		6,631		73,140
Demand Media, Inc. *		12,983		89,063
Dice Holdings, Inc. *		19,594		173,995
Digital River, Inc. *		14,494		255,819
DST Systems, Inc.		14,490		767,970
EarthLink, Inc.		41,745		311,835
Ebix, Inc. (a)		13,110		305,463
Echo Global Logistics, Inc. *		6,050		112,530
Envestnet, Inc. *		8,413		104,742
EPAM Systems, Inc. *		3,076		43,402
EPIQ Systems, Inc.		12,127		139,339

See financial notes 87

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Euronet Worldwide, Inc. *		18,632		359,411
Exlservice Holdings, Inc. *		9,315		259,143
Fair Isaac Corp.		14,835		600,521
FalconStor Software, Inc. *		12,789		36,449
FleetCor Technologies, Inc. *		12,412		459,616
Forrester Research, Inc. *		5,385		173,559
Fortinet, Inc. *		45,885		1,241,189
Gartner, Inc. *		34,155		1,375,080
Global Cash Access Holdings, Inc. *		18,174		101,047
Guidewire Software, Inc. *		3,076		69,579
Heartland Payment Systems, Inc.		13,662		386,908
iGate Corp. *		11,852		206,580
Imperva, Inc. *		1,725		63,911
InfoSpace, Inc. *		14,301		166,035
Interactive Intelligence Group *		5,246		146,888
Internap Network Services Corp. *		20,010		149,675
IntraLinks Holdings, Inc. *		13,633		80,162
j2 Global, Inc.		17,595		520,284
Jack Henry & Associates, Inc.		32,775		1,105,829
JDA Software Group, Inc. *		16,287		408,152
Jive Software, Inc. *		4,140		90,293
Kenexa Corp. *		9,660		268,451
Keynote Systems, Inc.		5,725		113,870
KIT Digital, Inc. *(a)		16,215		163,934
Lender Processing Services, Inc.		32,430		714,757
Limelight Networks, Inc. *		26,952		101,340
Lionbridge Technologies, Inc. *		21,825		56,527
Liquidity Services, Inc. *		8,280		358,110
LivePerson, Inc. *		17,792		268,303
LogMeIn, Inc. *		8,350		307,781
LoopNet, Inc. *		11,496		211,526
Manhattan Associates, Inc. *		8,280		383,861
ManTech International Corp., Class A		8,363		280,495
Marchex, Inc., Class B		8,777		37,653
MAXIMUS, Inc.		13,110		546,818
Mentor Graphics Corp. *		36,225		549,171
MICROS Systems, Inc., Class A *		30,705		1,594,511
MicroStrategy, Inc., Class A *		3,153		427,515
ModusLink Global Solutions, Inc.		16,389		91,123
MoneyGram International, Inc. *		3,948		70,748
Monotype Imaging Holdings, Inc. *		13,380		187,721
Motricity, Inc. *(a)		13,800		18,354
Move, Inc. *		14,506		127,073
NCI, Inc., Class A *		2,805		20,196
NetScout Systems, Inc. *		13,800		292,974
NetSuite, Inc. *		11,385		543,065
NeuStar, Inc., Class A *		25,530		894,827
NIC, Inc.		24,699		298,611
OpenTable, Inc. *(a)		8,970		435,045
OPNET Technologies, Inc.		5,520		157,596
Parametric Technology Corp. *		45,195		1,206,707
Pegasystems, Inc. (a)		6,230		174,938
Perficient, Inc. *		11,551		139,536
Progress Software Corp. *		24,495		568,039
PROS Holdings, Inc. *		7,592		133,088
QLIK Technologies, Inc. *		30,015		908,554
Quest Software, Inc. *		23,115		462,762
QuinStreet, Inc. *		10,609		110,864
RealD, Inc. *(a)		14,837		175,077
RealNetworks, Inc.		8,970		91,046
RealPage, Inc. *		11,949		236,949
Responsys, Inc. *		7,245		87,447
Rosetta Stone, Inc. *		4,580		41,357
Sapient Corp.		41,745		521,395
SciQuest, Inc. *		6,437		96,877
ServiceSource International, Inc. *		14,490		243,432
Solarwinds, Inc. *		22,425		835,556
Sourcefire, Inc. *		11,040		497,021
SS&C Technologies Holdings, Inc. *		12,786		264,926
Stream Global Services, Inc. *		15,870		48,721
Synchronoss Technologies, Inc. *		11,549		386,430
Syntel, Inc.		6,210		317,952
Take-Two Interactive Software, Inc. *		33,002		509,881
Taleo Corp., Class A *		15,870		727,163
Tangoe, Inc. *		10,005		187,494
TechTarget *		6,267		43,242
TeleCommunication Systems, Inc., Class A *		18,630		49,928
TeleNav, Inc. *		7,936		53,330
TeleTech Holdings, Inc. *		10,728		163,817
The Active Network, Inc. *		4,339		69,424
The Ultimate Software Group, Inc. *		10,005		698,549
THQ, Inc. *		20,700		11,178
TiVo, Inc. *		46,575		523,969
TNS, Inc. *		9,662		177,104
Travelzoo, Inc. *(a)		2,876		73,050
Tyler Technologies, Inc. *		11,387		430,087
Unisys Corp. *		14,994		280,088
United Online, Inc.		33,287		168,432
ValueClick, Inc. *		30,360		631,488
VASCO Data Security International, Inc. *		9,849		89,035
VeriFone Systems, Inc. *		39,675		1,900,036
Verint Systems, Inc. *		8,340		229,267
VirnetX Holding Corp. *(a)		15,916		343,626
Virtusa Corp. *		7,935		124,024
VistaPrint N.V. *(a)		14,837		603,569
Vocus, Inc. *		7,787		105,358
WebMD Health Corp. *		22,180		551,173
Websense, Inc. *		14,980		269,790
Wright Express Corp. *		15,180		939,338
XO Group, Inc. *		11,287		102,034
Zillow, Inc. *		1,293		41,273

				51,216,914

Technology Hardware & Equipment 5.2%
ADTRAN, Inc.		25,530		899,932
Aeroflex Holding Corp. *		6,702		73,521
Anaren, Inc. *		5,777		101,329
Anixter International, Inc. *		11,730		815,704
Arris Group, Inc. *		45,885		522,630
Aruba Networks, Inc. *		34,489		744,618
Aviat Networks, Inc. *		21,390		56,256
Avid Technology, Inc. *		11,516		122,645
AVX Corp.		20,058		265,568
Bel Fuse, Inc., Class B		4,272		74,675
Benchmark Electronics, Inc. *		23,115		379,548
Black Box Corp.		6,932		186,609
Brightpoint, Inc. *		25,605		225,324
Brocade Communications Systems, Inc. *		176,985		1,022,973
Calix, Inc. *		13,271		119,970

88 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Checkpoint Systems, Inc. *		15,375		170,662
Ciena Corp. *		36,141		539,224
Cognex Corp.		14,592		622,203
Coherent, Inc. *		9,660		535,937
Comtech Telecommunications Corp.		8,970		289,462
Comverse Technology, Inc. *		77,625		498,352
CTS Corp.		12,830		127,659
Daktronics, Inc.		15,247		137,223
Diebold, Inc.		24,495		958,489
Digi International, Inc. *		9,547		107,308
DTS, Inc. *		6,632		186,227
Echelon Corp. *		11,930		58,696
EchoStar Corp., Class A *		15,642		468,791
Electro Rent Corp.		7,319		132,108
Electro Scientific Industries, Inc.		9,328		129,100
Electronics for Imaging, Inc. *		17,660		281,854
Emulex Corp. *		33,465		350,044
Extreme Networks, Inc. *		34,845		128,578
Fabrinet *		7,297		130,397
FARO Technologies, Inc. *		6,237		345,904
Finisar Corp. *		34,845		707,005
Fusion-io, Inc. *(a)		8,280		226,044
Harmonic, Inc. *		43,470		256,038
Imation Corp. *		11,120		69,500
Infinera Corp. *		39,766		316,537
Insight Enterprises, Inc. *		16,999		355,279
InterDigital, Inc.		17,940		679,029
Intermec, Inc. *		18,735		140,138
Intevac, Inc. *		8,092		63,927
InvenSense, Inc. *(a)		3,795		59,544
IPG Photonics Corp. *		10,040		528,405
Itron, Inc. *		15,525		689,620
Ixia *		18,713		258,614
KEMET Corp. *		16,582		149,404
Lexmark International, Inc., Class A		30,360		1,119,677
Littelfuse, Inc.		8,733		462,238
Loral Space & Communications, Inc. *		4,830		344,089
Maxwell Technologies, Inc. *		10,730		195,179
Measurement Specialties, Inc. *		5,360		174,307
Mercury Computer Systems, Inc. *		12,075		173,518
Meru Networks, Inc. *(a)		4,170		19,682
Methode Electronics, Inc.		14,328		131,101
MTS Systems Corp.		5,953		292,352
Multi-Fineline Electronix, Inc. *		3,721		98,086
National Instruments Corp.		35,535		945,231
NeoPhotonics Corp. *		5,994		31,948
NETGEAR, Inc. *		14,490		544,389
Newport Corp. *		14,863		248,509
Novatel Wireless, Inc. *		10,436		35,795
Oclaro, Inc. *		19,320		83,462
Oplink Communications, Inc. *		7,635		125,290
Opnext, Inc. *		7,249		7,321
OSI Systems, Inc. *		7,590		447,810
Park Electrochemical Corp.		7,323		208,705
Plantronics, Inc.		17,940		669,162
Plexus Corp. *		13,800		478,860
Power-One, Inc. *		20,893		90,676
Pulse Electronics Corp.		15,870		48,880
QLogic Corp. *		40,020		687,944
Quantum Corp. *		87,285		229,560
Rofin-Sinar Technologies, Inc. *		10,574		248,066
Rogers Corp. *		6,210		230,329
Sanmina-SCI Corp. *		30,360		352,176
ScanSource, Inc. *		10,350		382,950
SeaChange International, Inc. *		10,604		72,531
ShoreTel, Inc. *		9,134		49,050
Silicon Graphics International Corp. *		12,420		120,350
Sonus Networks, Inc. *		86,250		251,850
STEC, Inc. *		16,064		155,660
Stratasys, Inc. *		8,111		298,809
Super Micro Computer, Inc. *		11,385		188,308
Sycamore Networks, Inc. *		7,703		142,274
Symmetricom, Inc. *		16,050		94,214
Synaptics, Inc. *		12,420		456,435
SYNNEX Corp. *		9,315		384,057
Tech Data Corp. *		16,560		885,629
Tellabs, Inc.		126,960		502,762
TTM Technologies, Inc. *		20,470		239,704
Ubiquiti Networks, Inc. *(a)		2,760		72,533
Universal Display Corp. *(a)		15,180		627,086
UTStarcom Holdings Corp. *		48,990		68,586
ViaSat, Inc. *		15,982		737,250
Viasystems Group, Inc. *		1,645		30,465
Vishay Intertechnology, Inc. *		55,200		676,752
Vishay Precision Group, Inc. *		4,969		72,995
X-Rite, Inc. *		10,880		49,286
Zebra Technologies Corp., Class A *		20,692		795,400

				32,387,882

Telecommunication Services 1.0%
AboveNet, Inc. *		8,683		603,989
Alaska Communications Systems Group, Inc. (a)		15,709		50,269
Atlantic Tele-Network, Inc.		3,471		133,009
Boingo Wireless, Inc. *(a)		4,830		46,175
Cbeyond, Inc. *		10,266		78,843
Cincinnati Bell, Inc. *		73,970		277,387
Cogent Communications Group, Inc. *		17,504		322,424
Consolidated Communications Holdings, Inc.		10,223		193,930
Elephant Talk Communications, Inc. *(a)		32,775		70,139
Fairpoint Communications, Inc. *(a)		6,900		25,944
General Communication, Inc., Class A *		13,345		141,324
Globalstar, Inc. *(a)		39,591		33,716
Hawaiian Telcom Holdco, Inc. *		3,590		56,435
IDT Corp., Class B		7,325		66,291
Iridium Communications, Inc. *		17,080		130,491
Leap Wireless International, Inc. *		23,805		248,524
Level 3 Communications, Inc. *		60,720		1,476,103
Lumos Networks Corp.		5,457		69,850
Neutral Tandem, Inc. *		12,079		134,802
NTELOS Holdings Corp.		5,457		126,875
Premiere Global Services, Inc. *		19,665		170,102
Shenandoah Telecommunications Co.		9,489		94,795
tw telecom, Inc. *		57,960		1,251,936
USA Mobility, Inc.		9,106		124,934
Vonage Holdings Corp. *		54,072		129,232

				6,057,519

See financial notes 89

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Transportation 2.5%
Air Transport Services Group, Inc. *		21,073		114,426
Alaska Air Group, Inc. *		13,800		946,266
Alexander & Baldwin, Inc.		15,870		736,527
Allegiant Travel Co. *		5,869		293,333
AMERCO		2,415		251,498
Arkansas Best Corp.		9,789		174,244
Atlas Air Worldwide Holdings, Inc. *		10,005		426,413
Avis Budget Group, Inc. *		39,817		513,639
Baltic Trading Ltd. (a)		4,752		21,764
Celadon Group, Inc.		7,806		115,217
Con-way, Inc.		20,700		611,685
Dollar Thrifty Automotive Group, Inc. *		11,040		838,046
Eagle Bulk Shipping, Inc. *(a)		23,279		37,246
Forward Air Corp.		11,385		383,333
Genco Shipping & Trading Ltd. *(a)		12,165		83,330
Genesee & Wyoming, Inc., Class A *		15,180		901,996
Hawaiian Holdings, Inc. *		19,320		102,589
Heartland Express, Inc.		21,416		309,890
Hub Group, Inc., Class A *		14,490		516,279
JetBlue Airways Corp. *		94,185		480,343
Kirby Corp. *		21,394		1,468,056
Knight Transportation, Inc.		21,247		363,961
Landstar System, Inc.		17,976		971,783
Marten Transport Ltd.		5,865		122,403
Old Dominion Freight Line, Inc. *		21,390		930,679
Pacer International, Inc. *		13,124		72,444
Patriot Transportation Holding, Inc. *		3,010		67,725
RailAmerica, Inc. *		8,676		178,726
Republic Airways Holdings, Inc. *		16,905		89,766
Roadrunner Transportation Systems, Inc. *		4,142		73,935
Ryder System, Inc.		19,665		1,046,768
SkyWest, Inc.		20,010		228,514
Spirit Airlines, Inc. *		10,695		208,873
Swift Transportation Co. *		27,865		326,578
Universal Truckload Services, Inc.		2,160		33,674
US Airways Group, Inc. *		64,515		478,056
UTI Worldwide, Inc.		39,035		630,025
Werner Enterprises, Inc.		20,010		484,642
Wesco Aircraft Holdings, Inc. *		8,316		122,328
Zipcar, Inc. *(a)		9,660		125,677

				15,882,677

Utilities 2.8%
ALLETE, Inc.		12,420		516,424
American States Water Co.		7,245		267,051
Avista Corp.		22,080		545,376
Black Hills Corp.		15,180		498,511
California Water Service Group		15,659		300,809
Central Vermont Public Service Corp.		4,830		170,209
CH Energy Group, Inc.		5,865		391,020
Chesapeake Utilities Corp.		3,601		147,893
Cleco Corp.		24,150		929,292
Connecticut Water Service, Inc.		3,246		93,550
Dynegy, Inc. *		39,006		50,708
El Paso Electric Co.		16,215		530,717
Genie Energy Ltd.		7,325		70,247
GenOn Energy, Inc. *		292,215		718,849
Great Plains Energy, Inc.		51,405		1,016,791
Hawaiian Electric Industries, Inc.		36,570		916,078
IDACORP, Inc.		19,320		782,074
MGE Energy, Inc.		8,665		380,047
Middlesex Water Co.		5,754		105,989
New Jersey Resources Corp.		15,870		740,970
Northwest Natural Gas Co.		10,350		473,719
NorthWestern Corp.		13,485		468,334
Ormat Technologies, Inc.		6,763		136,883
Piedmont Natural Gas Co., Inc.		27,592		893,981
PNM Resources, Inc.		30,360		545,873
Portland General Electric Co.		28,980		714,067
SJW Corp.		5,051		120,668
South Jersey Industries, Inc.		11,730		609,960
Southwest Gas Corp.		17,595		750,427
The Empire District Electric Co.		15,728		313,774
The Laclede Group, Inc.		7,935		326,049
UIL Holdings Corp.		19,320		681,030
Unisource Energy Corp.		14,145		520,394
Unitil Corp.		3,949		105,043
Vectren Corp.		32,085		937,524
WGL Holdings, Inc.		19,665		802,922

				17,573,253

Total Common Stock
(Cost $584,679,724)				626,200,391




Rights 0.0% of net assets

Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Forest Laboratories, Inc. *(b)(c)		5,521		—

Total Rights
(Cost $—)				—



End of Investments



Collateral Invested for Securities on Loan 2.2% of net assets


State Street Institutional U.S. Government Money Market Fund		13,908,517		13,908,517

Total Collateral Invested for Securities on Loan
(Cost $13,908,517)				13,908,517



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $585,798,502 and the unrealized appreciation and depreciation were $76,907,154 and ($36,505,265), respectively, with a net unrealized appreciation of $40,401,889.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Illiquid security. At the period end, the value of these amounted to $0 or 0% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.

90 See financial notes

Schwab U.S. Small-Cap ETF

Portfolio Holdings (Unaudited) continued


REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$626,200,391		$—		$—		$626,200,391
Rights(a)		—		—		—		—

Total		$626,200,391		$—		$—		$626,200,391

Other Financial Instruments
Collateral Invested for Securities on Loan		$13,908,517		$—		$—		$13,908,517


(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

See financial notes 91

Schwab U.S. Small-Cap ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $584,679,724) including securities on loan of $13,312,894		$626,200,391
Collateral invested for securities on loan		13,908,517
Receivables:
Investments sold		200,373
Dividends		447,591
Income from securities on loan	+	48,420

Total assets		640,805,292

Liabilities

Collateral held for securities on loan		13,908,517
Payables:
Investments bought		72,075
Investment adviser fees		6,771
Due to custodian	+	40,793

Total liabilities		14,028,156

Net Assets

Total assets		640,805,292
Total liabilities	−	14,028,156

Net assets		$626,777,136

Net Assets by Source
Capital received from investors		579,013,164
Net investment income not yet distributed		1,000,058
Net realized capital gains		4,860,795
Net unrealized capital gains		41,903,119

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$626,777,136

17,250,001

$36.33

92 See financial notes

Schwab U.S. Small-Cap ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (net of foreign withholding tax of $62)		$3,557,355
Interest		237
Securities on loan	+	332,036

Total investment income		3,889,628

Expenses

Investment adviser fees		324,149

Total expenses	−	324,149

Net investment income		3,565,479

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(5,000,525	)
Net realized gains on in-kind redemptions	+	11,510,729

Net realized gains		6,510,204
Net unrealized gains on investments	+	54,093,552

Net realized and unrealized gains		60,603,756

Net increase in net assets resulting from operations		$64,169,235

See financial notes 93

Schwab U.S. Small-Cap ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$3,565,479			$4,865,989
Net realized gains		6,510,204			16,916,401
Net unrealized gains	+	54,093,552			9,815,575

Net increase in net assets resulting from operations		64,169,235			31,597,965

Distributions to Shareholders

Distributions from net investment income		($3,073,425	)		($4,559,215	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

4,700,000

$157,787,001

9,400,000

$323,402,760

Shares Redeemed

(1,750,000

)

(54,628,603

)

(2,400,000

)

(81,228,190

)

Net transactions in fund shares

2,950,000

$103,158,398

7,000,000

$242,174,570

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

14,300,001

$462,522,928

7,300,001

$193,309,608

Total increase

2,950,000

164,254,208

7,000,000

269,213,320

End of period

17,250,001

$626,777,136

14,300,001

$462,522,928

Net investment income not yet distributed

$1,000,058

$508,004

94 See financial notes

Schwab U.S. Dividend Equity ETF™

Financial Statements

Financial Highlights


	10/19/11¹–
	2/29/12*


Per-Share Data ($)

Net asset value at beginning of period		25.00

Income (loss) from investment operations:
Net investment income (loss)		0.23
Net realized and unrealized gains (losses)		2.25

Total from investment operations		2.48
Less distributions:
Distributions from net investment income		(0.12	)

Net asset value at end of period		27.36

Total return (%)		9.97	²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.17	³
Gross operating expenses		0.17	³
Net investment income (loss)		3.42	³
Portfolio turnover rate⁴		1	²
Net assets, end of period ($ x 1,000)		300,977

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 95

Schwab U.S. Dividend Equity ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.

Cost

Value

Holdings by Category

($)

.7%

Common Stock

288,603,295

300,004,572

.0%

Other Investment Company

82,289

.7%

Total Investments

288,685,584

300,086,861

.3%

Other Assets and
Liabilities, Net

890,394

100

.0%

Net Assets

300,977,255


	Number		Value
Security	of Shares		($)

Common Stock 99.7% of net assets

Capital Goods 15.7%
3M Co.		67,980		5,955,048
Applied Industrial Technologies, Inc.		4,040		162,287
Caterpillar, Inc.		62,036		7,085,131
Crane Co.		5,500		267,135
Cummins, Inc.		18,480		2,228,134
Dover Corp.		19,619		1,256,008
Emerson Electric Co.		78,760		3,962,416
General Dynamics Corp.		31,515		2,307,843
Graco, Inc.		6,600		337,788
Honeywell International, Inc.		75,680		4,508,258
ITT Corp.		10,139		252,968
Lockheed Martin Corp.		27,308		2,414,300
Northrop Grumman Corp.		25,744		1,539,749
Rockwell Automation, Inc.		15,180		1,214,096
The Boeing Co.		70,176		5,259,691
United Technologies Corp.		83,816		7,029,648
W.W. Grainger, Inc.		6,209		1,289,796
Watsco, Inc.		2,860		204,175

				47,274,471

Commercial & Professional Services 0.5%
Rollins, Inc.		7,954		161,148
Waste Management, Inc.		42,467		1,485,496

				1,646,644

Consumer Durables & Apparel 2.3%
Hasbro, Inc.		12,980		458,453
Leggett & Platt, Inc.		14,960		338,545
NIKE, Inc., Class B		40,040		4,321,117
Polaris Industries, Inc.		6,820		450,529
VF Corp.		9,240		1,349,502

				6,918,146

Consumer Services 4.1%
Darden Restaurants, Inc.		14,080		717,939
H&R Block, Inc.		32,379		527,778
McDonald’s Corp.		109,336		10,854,878
Strayer Education, Inc.		1,320		135,821

				12,236,416

Diversified Financials 0.8%
Eaton Vance Corp.		12,540		361,278
Federated Investors, Inc., Class B		10,864		222,603
SEI Investments Co.		15,840		312,840
T. Rowe Price Group, Inc.		26,836		1,652,829

				2,549,550

Energy 12.4%
Chevron Corp.		124,296		13,563,179
ConocoPhillips		130,896		10,020,089
Exxon Mobil Corp.		159,056		13,758,344

				37,341,612

Food & Staples Retailing 5.3%
Sysco Corp.		62,260		1,831,689
Wal-Mart Stores, Inc.		187,440		11,073,955
Walgreen Co.		92,864		3,079,371

				15,985,015

Food, Beverage & Tobacco 10.2%
Brown-Forman Corp., Class B		11,497		938,730
Campbell Soup Co.		21,120		703,718
Flowers Foods, Inc.		14,740		282,124
H.J. Heinz Co.		34,100		1,797,411
Kellogg Co.		26,050		1,363,717
McCormick & Co., Inc.		14,080		710,336
PepsiCo, Inc.		165,656		10,426,389
The Coca-Cola Co.		190,296		13,294,079
The Hershey Co.		16,727		1,015,329
Universal Corp.		2,493		114,528

				30,646,361

Health Care Equipment & Services 1.8%
Baxter International, Inc.		60,720		3,529,653
Becton, Dickinson & Co.		21,780		1,660,072
Meridian Bioscience, Inc.		4,482		80,766
Owens & Minor, Inc.		6,820		204,327

				5,474,818

Household & Personal Products 7.2%
Avon Products, Inc.		45,752		855,105
Colgate-Palmolive Co.		47,520		4,427,914
Kimberly-Clark Corp.		41,580		3,030,350
The Procter & Gamble Co.		196,896		13,294,418

				21,607,787

Insurance 1.8%
Aflac, Inc.		49,940		2,359,665

96 See financial notes

Schwab U.S. Dividend Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Arthur J. Gallagher & Co.		11,880		405,346
Everest Re Group Ltd.		4,836		424,842
Mercury General Corp.		2,860		122,637
The Chubb Corp.		29,480		2,003,461

				5,315,951

Materials 4.3%
Air Products & Chemicals, Inc.		21,120		1,905,869
E.I. du Pont de Nemours & Co.		98,780		5,022,963
Greif, Inc., Class A		4,262		218,257
PPG Industries, Inc.		16,330		1,490,113
Praxair, Inc.		32,120		3,501,080
RPM International, Inc.		13,860		330,838
Sonoco Products Co.		10,560		346,790

				12,815,910

Media 0.5%
Meredith Corp.		3,740		123,046
The McGraw-Hill Cos., Inc.		31,028		1,444,043

				1,567,089

Pharmaceuticals, Biotechnology & Life Sciences 10.7%
Abbott Laboratories		164,780		9,328,196
Bristol-Myers Squibb Co.		181,720		5,845,932
Eli Lilly & Co.		103,840		4,074,682
Johnson & Johnson		199,096		12,957,168

				32,205,978

Retailing 4.5%
Genuine Parts Co.		16,500		1,034,220
Ross Stores, Inc.		24,860		1,325,784
The Gap, Inc.		27,362		639,176
The Home Depot, Inc.		163,240		7,765,327
The TJX Cos., Inc.		79,856		2,923,528

				13,688,035

Semiconductors & Semiconductor Equipment 6.2%
Intel Corp.		514,132		13,819,868
Linear Technology Corp.		22,660		758,657
Texas Instruments, Inc.		120,996		4,035,217

				18,613,742

Software & Services 5.8%
Automatic Data Processing, Inc.		52,140		2,832,245
FactSet Research Systems, Inc.		4,400		384,560
International Business Machines Corp.		66,220		13,027,460
Paychex, Inc.		34,320		1,074,216

				17,318,481

Technology Hardware & Equipment 0.3%
Harris Corp.		12,316		537,347
Molex, Inc.		15,840		429,264

				966,611

Telecommunication Services 0.9%
CenturyLink, Inc.		64,900		2,612,225

Transportation 2.0%
C.H. Robinson Worldwide, Inc.		17,380		1,150,035
CSX Corp.		111,554		2,343,750
Norfolk Southern Corp.		35,636		2,455,320

				5,949,105

Utilities 2.4%
CenterPoint Energy, Inc.		41,863		815,910
Entergy Corp.		18,700		1,245,981
Exelon Corp.		69,810		2,727,477
NSTAR		10,996		515,712
PPL Corp.		61,206		1,747,431
WGL Holdings, Inc.		5,342		218,114

				7,270,625

Total Common Stock
(Cost $288,603,295)				300,004,572




Other Investment Company 0.0% of net assets

Money Market Fund 0.0%
State Street Institutional U.S. Government Money Market Fund		82,289		82,289

Total Other Investment Company
(Cost $82,289)				82,289



End of Investments

At 2/29/12, the tax basis cost of the fund’s investments was $288,701,623 and the unrealized appreciation and depreciation were $12,498,958 and ($1,113,720), respectively, with a net unrealized appreciation of $11,385,238.

See financial notes 97

Schwab U.S. Dividend Equity ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):

Quoted Prices in

Significant

Active Markets for

Significant Other

Unobservable

Identical Assets

Observable Inputs

Inputs

Description

(Level 1)

(Level 2)

(Level 3)

Total*

Common Stock(a)

$300,004,572

$—

$300,004,572

Other Investment Company(a)

82,289

—

82,289

Total

$300,086,861

$—

$300,086,861


*		The fund had no Other Financial Instruments.
(a)		As categorized in Portfolio Holdings.

There were no significant transfers between Level 1, Level 2 and Level 3 for the period ended February 29, 2012.

98 See financial notes

Schwab U.S. Dividend Equity ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $288,685,584)		$300,086,861
Receivables:
Fund shares sold		5,473,313
Dividends	+	1,155,503

Total assets		306,715,677

Liabilities

Payables:
Investments bought		5,734,281
Investment adviser fees	+	4,141

Total liabilities		5,738,422

Net Assets

Total assets		306,715,677
Total liabilities	−	5,738,422

Net assets		$300,977,255

Net Assets by Source
Capital received from investors		288,496,820
Net investment income not yet distributed		1,180,371
Net realized capital losses		(101,213	)
Net unrealized capital gains		11,401,277

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$300,977,255

11,000,001

$27.36

See financial notes 99

Schwab U.S. Dividend Equity ETF

Statement of

Operations

For October 19, 2011* through February 29, 2012



Investment Income

Dividends		$1,845,767
Interest	+	17

Total investment income		1,845,784

Expenses

Investment adviser fees		87,338

Total expenses	−	87,338

Net investment income		1,758,446

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(101,213	)
Net unrealized gains on investments	+	11,401,277

Net realized and unrealized gains		11,300,064

Net increase in net assets resulting from operations		$13,058,510


*		Commencement of operations.

100 See financial notes

Schwab U.S. Dividend Equity ETF

Statements of

Changes in Net Assets

For the current period only. Because the fund commenced operations on
October 19, 2011, it has no prior report period.
Figures for the current period are unaudited


*10/19/11-2/29/12**
Net investment income		$1,758,446
Net realized losses		(101,213	)
Net unrealized gains	+	11,401,277

Net increase in net assets resulting from operations		13,058,510

Distributions to Shareholders

Distributions from net investment income		($578,075	)

Transactions in Fund Shares


		*10/19/11-2/29/12**
			SHARES		VALUE
Shares Sold			11,100,001		$291,044,966
Shares Redeemed	+		(100,000	)	(2,548,146	)

Net transactions in fund shares			11,000,001		$288,496,820

Shares Outstanding and Net Assets

		*10/19/11-2/29/12**
			SHARES		NET ASSETS
Beginning of period			—		$—
Total increase	+		11,000,001		300,977,255

End of period			11,000,001		$300,977,255


Net investment income not yet distributed					$1,180,371


*		Commencement of operations.

See financial notes 101

Schwab U.S. ETFs

Financial Notes, unaudited

1. Business Structure of the Funds

Each of the funds discussed in this report is a series of Schwab Strategic Trust (the “trust”), a no-load, open-end management investment company. The trust is organized as a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The list below shows all the funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. REIT ETF
Schwab U.S. Broad Market ETF		Schwab International Equity ETF
Schwab U.S. Large-Cap ETF		Schwab International Small-Cap Equity ETF
Schwab U.S. Large-Cap Growth ETF		Schwab Emerging Markets Equity ETF
Schwab U.S. Large-Cap Value ETF		Schwab U.S. TIPS ETF
Schwab U.S. Mid-Cap ETF		Schwab Short-Term U.S. Treasury ETF
Schwab U.S. Small-Cap ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Dividend Equity ETF		Schwab U.S. Aggregate Bond ETF

The funds issue and redeem shares at their net assets value (“NAV”) only in large blocks of shares, typically 50,000 shares or more (“Creation Units”). These transactions are usually in exchange for a basket of securities and an amount of cash. As a practical matter, only institutions or large investors purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Individual shares of the funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).

Schwab U.S. Dividend Equity ETF commenced operations on October 19, 2011.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in the preparation of their financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

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

	•	Underlying funds: valued at their respective net asset values.

102

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If the funds determine that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted prices.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The funds’ policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year.

The levels associated with valuing the funds’s investment for the period ended February 29, 2012 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Securities Lending: Under the Securities Lending Program, a fund (the “lender”) may make short-term loans of its securities to another party (the “borrower”) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign government, or letters of credit issued by a bank. The initial collateral received by a fund is required to have a value of at least 102% of the current market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter, at a value equal to at least 100% of the current market value of the securities on loan and is marked to market daily. The cash collateral of securities loaned is invested in money market portfolios registered under Rule 2a-7 of the 1940 Act. Securities lending income, as disclosed in a fund’s Statement of Operations, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent which are subject to adjustments pursuant to the securities lending agreement.

103

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

If applicable, the value of the securities on loan as of February 29, 2012 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains or losses from security transactions are based on the identified costs of the securities involved.

(d) Investment Income:

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the day they learn of the ex-dividend date.

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

(f) Distributions to Shareholders:

The funds make distributions from net investment income every quarter and net realized capital gains, if any, once a year.

(g) Accounting Estimates:

The accounting policies described in this report conform with accounting principles generally accepted in the United States of America. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It’s possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

(h) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies. Accordingly, the funds distribute substantially all of their net investment income and realized net capital gains, if any, to their respective shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax.

(i) Indemnification:

Under the funds’ organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss to be remote.

(j) New Accounting Pronouncements:

In April 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Updates (“ASU”) related to accounting for repurchase agreements and similar agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The ASU modifies the criteria for determining effective control of transferred assets and as a result certain agreements may now be accounted for as secured borrowings. The ASU is effective prospectively for new and existing transfers that are modified in the first interim or annual period beginning on or after December 15, 2011.

In May 2011, the FASB issued an update to requirements relating to “Fair Value Measurement which represents amendments to achieve common fair value measurement and disclosure requirements in US GAAP and IFRS.” The amendments include (i) those that clarify the FASB’s intent about the application of existing fair value measurement and disclosure requirements and (ii) those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments that change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements relate to (i) measuring the fair value of the financial instruments that are managed

104

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

within a portfolio; (ii) application of premium and discount in a fair value measurement; and (iii) additional disclosures about fair value measurements. The update is effective for annual periods beginning after December 15, 2011 with early adoption prohibited.

At this time, management is evaluating the implications of these changes and their impact on the financial statements.

3. Risk Factors:

Investing in the funds may involve certain risks, as described in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.

Stock markets rise and fall daily. As with any investment whose performance is tied to these markets, the value of the investment in a fund will fluctuate, which means that the investors could lose money.

The funds are not actively managed. Therefore, a fund follows the securities included in an index during upturns as well as downturns. Because of the indexing strategies, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance is normally below that of the index.

Certain funds primarily invest in dividend paying stocks. As a result, fund performance will correlate directly with the performance of the dividend paying stock segment of the stock market, and a fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, a fund’s ability to generate income may be affected.

The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Certain funds invest in large-cap stocks. Large-cap stocks tend to go in and out of favor based on market and economic conditions. During a period when large-cap U.S. stocks fall behind other types of investments — mid- or small-cap stocks, for instance — a fund’s large-cap holdings could reduce performance.

Certain funds invest in mid-cap stocks. Historically, mid-cap stocks have been riskier than large-cap stocks. Mid-cap companies themselves may be more vulnerable to adverse business or economic events than larger, more established companies. Stock prices of midsized companies may be based in substantial part on future expectations rather than current achievements and may move sharply, especially during market upturns and downturns. During a period when mid-cap stocks fall behind other types of investments — bonds or large-cap stocks, for instance — a fund’s mid-cap holdings could reduce performance.

Certain funds invest in small-cap stocks. Historically, small-cap stocks have been riskier than large- and mid-cap stocks, and their prices may move sharply, especially during market upturns and downturns. Small-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies. During a period when small-cap stocks fall behind other types of investments — large-cap and mid-cap stocks, for instance — a fund’s small-cap holdings could reduce performance.

Certain funds invest in growth stocks. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.

Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.

Certain funds may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because these funds utilize a sampling approach, they may not track the return of the index as well as they would if the funds purchased all of the securities in the index.

105

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

As an index fund, a fund seeks to track the performance of its benchmark index, although it may not be successful in doing so. The divergence between the performance of a fund and its benchmark index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.

A fund may invest in derivative instruments. The principal types of derivatives a fund may use are futures contracts. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as market risk and liquidity risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to leverage risk, credit risk, lack of availability risk, valuation risk, correlation risk and tax risk. Leverage risk is the risk that use of derivatives may magnify the effect of any decrease or increase in the value of the fund’s portfolio securities. Credit risk is the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gain. These risks could cause a fund to lose more than the principal amount invested.

A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

A fund may lend its portfolio securities to brokers, dealers, and other financial institutions provided a number of conditions are satisfied, including that the loan is fully collateralized. Securities lending involves the risk of loss of rights in the collateral or delay in recovery of the collateral if the borrower fails to return the security loaned or becomes insolvent.

To the extent that a fund’s or an index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, a fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.

Although fund shares are listed on national securities exchanges, there can be no assurance that an active trading market for fund shares will develop or be maintained. If an active market is not maintained, investors may find it difficult to buy or sell fund shares.

Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares of a fund will approximate a fund’s NAV, there may be times when the market price and the NAV vary significantly. Investors may pay more than NAV when they buy shares of a fund in the secondary market, and may receive less than NAV when they sell those shares in the secondary market.

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

Charles Schwab Investment Management, Inc. (“CSIM” or the “investment adviser”), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser pursuant to an Investment Advisory Agreement (“Advisory Agreement”) between CSIM and the trust.

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Schwab

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

0.06%

0.08%

0.13%

0.17%

106

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

The funds may engage in certain transactions involving affiliates, including investing in outstanding shares of The Charles Schwab Corporation. Below is a summary of investing activity involving The Charles Schwab Corporation shares own by the funds during the report period:


	Balance
	of Shares								Balance				Realized		Dividends
	Held at								of Shares		Market		Gain (Loss)		Received
	Beginning		Gross			Gross			Held at		Value at		During		During
Fund	of Period		Additions			Sales			2/29/12		2/29/12		Period		Period

Schwab U.S. Broad Market ETF		52,662		19,163	*		(2,965	)		68,860		$955,777		$1,452		$7,566
Schwab U.S. Large-Cap ETF		52,452		11,904			(1,736	)		62,620		869,166		655		7,038
Schwab U.S. Large-Cap Growth ETF		53,760		13,891			(5,896	)		61,755		857,159		51		7,067


*		Includes 5,141 shares in connection with a merger between optionsXpress Holdings, Inc. and The Charles Schwab Corporation.

The funds may engage in direct transactions with certain other Schwab ETFs when practical. When one fund is seeking to sell a security that another is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs. This practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended February 29, 2012, there were no direct security transactions with other Schwab ETFs.

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other Schwab Funds including Schwab ETFs. All loans are for temporary or emergency purposes only. The interest rate charged on the loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The interfund lending facility is subject to the oversight and periodic review of the Board of Trustees of the Schwab Funds. The funds had no interfund borrowing or lending activity during the period.

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

State Street Bank and Trust Company (“State Street”) serves as the funds’ transfer agent. As part of these services, the transfer agent maintains records pertaining to the sale, redemption and transfer of the funds’ shares.

State Street also serves as custodian and accountant for the funds. The custodian is responsible for the daily safekeeping of securities and cash held or sold by the funds. The funds’ accountant maintains all books and records related to the funds’ transactions.

6. Board of Trustees:

Trustees may include people who are officers and/or directors of the investment adviser or its affiliate. Federal securities law limits the percentage of such “interested persons” who may serve on a trust’s board, and the trust was in compliance with these limitations throughout the report period. The trust did not pay any of these interested persons for their services as trustees.

7. Borrowing from Banks:

The funds have access to custodian overdraft facilities and to an uncommitted line of credit of $100 million with State Street. The funds pay interest on the amounts they borrow at rates that are negotiated periodically.

There were no borrowings from the line of credit by the funds during the period. However, the funds may have utilized their overdraft facility and incurred interest expense, which is disclosed on the Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

107

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 29, 2012, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab U.S. Broad Market ETF		$23,319,032		$17,360,785
Schwab U.S. Large-Cap ETF		17,265,371		13,799,510
Schwab U.S. Large-Cap Growth ETF		15,993,259		14,376,110
Schwab U.S. Large-Cap Value ETF		13,408,855		12,280,178
Schwab U.S. Mid-Cap ETF		12,943,921		10,042,375
Schwab U.S. Small-Cap ETF		37,906,543		25,975,703
Schwab U.S. Dividend Equity ETF		3,119,022		2,056,287

9. In-Kind Transactions:

The consideration for the purchase of Creation Units of a fund generally consists of the in-kind deposit of a designated portfolio of securities, which constitutes an optimized representation of the securities involved in a relevant fund’s underlying index, and an amount of cash. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units.

The in-kind transactions for the period ended February 29, 2012 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab U.S. Broad Market ETF		$188,133,139		$38,982,857
Schwab U.S. Large-Cap ETF		142,767,174		20,299,083
Schwab U.S. Large-Cap Growth ETF		75,881,679		33,910,777
Schwab U.S. Large-Cap Value ETF		56,739,690		20,166,821
Schwab U.S. Mid-Cap ETF		121,533,688		22,846,472
Schwab U.S. Small-Cap ETF		155,346,846		53,418,345
Schwab U.S. Dividend Equity ETF		287,641,773		—

For the period ended February 29, 2012, certain funds realized net capital gains or losses resulting from in-kind redemptions of large blocks of shares or multiples thereof (“Creation Units”). Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to paid-in-capital at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses for the period ended February 29, 2012 are disclosed in the funds’ Statements of Operations.

10. Federal Income Taxes

Capital loss carryforwards may be used to offset future realized capital gains, for federal income tax purposes. As of August 31, 2011, the following funds had capital loss carryforwards available to offset future net capital gains before the expiration date as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

Expiration Date

ETF

August 31, 2019

$—

$721,062

$691,441

$295,384

$—

$927,632

$—

No expiration

—

218,695

—

Total

$—

$721,062

$691,441

$295,384

$218,695

$927,632

$—

108

Schwab U.S. ETFs

Financial Notes, unaudited (continued)

10. Federal Income Taxes (continued):

For tax purposes, realized net capital losses occurring after October 31, may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended August 31, 2011, capital losses deferred for each fund were as follows:

Schwab U.S.

Broad

Schwab U.S.

Large-Cap

Schwab U.S.

Dividend

Market

Large-Cap

Growth

Value

Mid-Cap

Small-Cap

Equity

ETF

Deferred capital losses

$—

$457,674

$1,015,808

$250,819

$—

As of August 31, 2011, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds’ financial statements. The funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the year ended August 31, 2011, the funds did not incur any interest or penalties.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (“the Act”) was signed by the President. The Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs.

Certain of the enacted provisions include:

Post-enactment capital losses may now be carried forward indefinitely, but must retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. The Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.

Finally, the Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.

Except for the simplification provisions related to RIC qualification, the Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010. The funds are fully compliant with the noted provisions of the Act for the period ending February 29, 2012.

11. Subsequent Events:

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

109

Investment Advisory Agreement Approval

The Investment Company Act of 1940 (the “1940 Act”) requires that initial approval of, as well as the continuation of, a fund’s investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or “interested persons” of any party (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund’s trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

Initial Approval of Investment Advisory Agreement

The Board of Trustees (the “Board” or the “Trustees”, as appropriate) called and held a meeting on August 4, 2011, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (“CSIM”) as investment adviser to Schwab U.S. Dividend Equity ETF (the “Fund”) under the investment advisory agreement between Schwab Strategic Trust and CSIM (the “Agreement”). In preparation for the meeting, the Board requested and reviewed a variety of materials provided by CSIM with respect to the services to be provided to the Fund under the Agreement. The Independent Trustees met in executive session outside the presence of fund management and participated in question and answer sessions with representatives of CSIM.

The Board, including a majority of the Independent Trustees approved the Agreement with respect to the Fund. The Board’s approval was based on consideration and evaluation of a variety of specific factors discussed at this meeting, including:


1.	the nature, extent and quality of the services to be provided to the Fund under the Agreement, including the resources of CSIM and its affiliates to be dedicated to the Fund;

2.	CSIM’s investment performance in managing other Fund having relevant investment objectives and strategies;

3.	the Fund’s estimated expenses and how those expenses compared to those of certain other comparable exchange-traded funds;

4.	the profitability of CSIM and its affiliates, including Charles Schwab & Co., Inc. (“Schwab”), with respect to management of other funds, including both direct and indirect benefits accruing to CSIM and its affiliates; and

5.	the extent to which economies of scale may be realized as the Fund grows and whether fee levels in the Agreement relating to the Fund reflect those economies of scale for the benefit of Fund investors.

Nature, Extent and Quality of Services. The Board considered the nature, extent and quality of the services to be provided by CSIM to the Fund and the resources of CSIM and its affiliates will dedicate to the Fund. In this regard, the Trustees evaluated, among other things, CSIM’s personnel, experience, track record and compliance program. The Trustees also considered the fact that Schwab’s extensive branch network, Internet access, investment and research tools, telephone services, and array of account features may be expected to benefit the Fund and its shareholders. The Trustees also considered Schwab’s excellent reputation as a full service brokerage firm and its overall financial condition. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by CSIM to the Fund and the resources of CSIM and its affiliates dedicated to the Fund supported approval of the Agreement with respect to the Fund.

Performance. With regard to Fund performance, since the Fund had not commenced operations and therefore did not have any performance of its own, the Board considered performance of other funds having comparable investment objectives in determining whether to approve the Agreement. The Trustees also considered both risk and shareholder risk expectations for the Fund and the appropriateness of the benchmark that would be used to compare the performance of the Fund. Following such evaluation the Board concluded, within the context of its full deliberations, that the performance of CSIM supported approval of the Agreement with respect to the Fund.

Fund Expenses. With respect to the Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement, and the Fund’s estimated net operating expense ratio in comparison to those of other comparable exchange-traded funds. The Board evaluated the Fund’s unitary fee through review of comparative information with respect to fees paid by similar exchange-traded funds tracking equity indexes. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported approval of the Agreement with respect to the Fund.

Profitability. With regard to profitability, the Trustees considered the compensation flowing to CSIM and its affiliates directly or indirectly. The Trustees also considered any other benefits derived by CSIM from its relationship with the Fund, such as whether, by virtue of its management of the Fund, CSIM obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the varied

110

levels of compensation and profitability under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Fund by CSIM and its affiliates. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of CSIM, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the Fund.

Economies of Scale. Recognizing that the Fund had not yet commenced operations and had no assets, the Trustees considered the possible development of any economies of scale and whether those could be expected to be passed along to the Fund’s shareholders through various efficiencies that may result from increases in the Fund’s assets. The Board determined that such economies of scale will be shared by way of the relatively low advisory fee and unitary fee structure of the Fund, although the Board will continue to monitor fees as the Fund grows in size and assess whether breakpoints may be warranted. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund may be expected to obtain reasonable benefit from economies of scale if such economies develop.

In the course of their deliberations, the Trustees did not identify any particular information or factor that was all important or controlling. Based on the Trustees’ deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously approved the Agreement as it relates to the Fund and concluded that the compensation under the Agreement relating to the Fund is fair and reasonable in light of such services and expenses and such other matters as the Trustees have considered to be relevant in the exercise of their reasonable judgment.

111

Trustees and Officers

The tables below give information about the trustees and officers for the Schwab Strategic Trust which includes the funds covered in this report. The “Fund Complex” includes the Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust, Laudus Trust and Laudus Institutional Trust. The Fund Complex includes 92 funds.

The address for all trustees and officers is 211 Main Street, San Francisco, CA 94105. You can find more information about the trustees and officers in the Statement of Additional Information, which is available free by calling 1-800-435-4000.

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	17	Director, PS Business Parks, Inc. (2005 – present). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G, Inc. (certified public accountants and advisers) (May 1987 – present).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	17	None

112

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	92	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010); Co-Head and Senior Portfolio Manager, Wells Capital Management (June 1999 – March 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008); Managing Director, Head of Market-Based Strategies State Street Research (August 2003 – Jan. 2005).

113

Officers of the Trust (continued)


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


Catherine MacGregor 1964 Vice President and Assistant Secretary (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President and Assistant Secretary, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President (March 2011 – present), Vice President (2004 – March 2011), Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds; Vice President, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

114

Glossary

ask See “offer.”

asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage to help offset risks and rewards, based on your goals, time horizon and risk tolerance.

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

authorized participant (AP) A large institutional investor that places orders for creation units with the funds’ distributor.

beta A historical measure of an investment’s volatility relative to a market index (usually the S&P 500^®). The index is defined as having a beta of 1.00. Investments with a beta higher than 1.00 have been more volatile than the index; those with a beta of less than 1.00 have been less volatile.

bid The highest price at which someone is willing to buy a security.

cap, capitalization See “market cap.”

capital gain, capital loss The difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the gain or loss is still “on paper” and is considered unrealized.

commencement of operations The date that the first NAV was calculated.

creation unit (C.U.) A basket of securities that is delivered by an authorized participant (AP) to the fund equal to the current holdings of the ETF, plus a designated cash component. In return, the APs receive a large block of ETF shares (typically 50,000 shares), which investors can then buy and sell in the secondary market.

exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.

expense ratio The amount that is taken from the fund’s assets each year to cover the operating expenses. An expense ratio of 0.50% means that a fund’s expenses amount to half of one percent of its average net assets a year.

gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.

inception date The date that the shares began trading in the secondary market.

indicative optimized portfolio value (IOPV) A calculation disseminated by the stock exchange that approximates the fund’s NAV every 15 seconds throughout the trading day.

liquidity The ability to convert a security or asset quickly into cash.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

market price return The return based on the change in market price per share of the fund over a given time period. Market price returns assume that dividends and capital gain distributions have been reinvested in the fund at market price.

median market cap The midpoint of the range of market caps of the stocks held by a fund. There are different ways of calculating median market cap. With a simple median, half of the stocks in the fund’s portfolio would be larger than the median, and half would be smaller. With a weighted median (the type that is calculated for these funds), half of the fund’s assets are invested in stocks that are larger than the median market cap, and half in stocks that are smaller.

MSCI EAFE (Europe, Australasia, Far East) Index A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

net asset value (NAV) The value of one share of a fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding.

NAV return The return based on the change in NAV of the fund over a given time period. NAV returns assume that dividends and capital gain distributions have been reinvested in the fund.

offer (ask) The lowest price at which an individual is willing to sell a security.

open The price at which a security opened for trading on a given day.

outstanding shares, shares outstanding When speaking of the fund, indicates all shares currently held by investors.

price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.

price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.

primary market The market that deals with the issuance of new securities.

S&P 500 Index A market capitalization index that is designed to measure the performance of 500 leading publicly held companies in leading industries of the U.S. economy.

sampling If a fund uses a sampling method, the fund will not fully replicate the benchmark index and may hold securities not included in the index. A fund that utilizes a sampling approach may not track the return of the index.

secondary market The market in which investors purchase securities from other investors rather than directly from the issuing companies. Organized exchanges facilitate the trading of securities in the secondary market.

spread The gap between bid and ask prices of a security.

stock A share of ownership, or equity, in the issuing company.

total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.

tracking error The difference between the performance of the fund and its benchmark index, positive or negative.

115

Notes

Schwab ETFs^tmare designed to be low-cost, diversified investments. Each fund follows broad market indices and provides exposure to specific segments of the market, making each a solid investment option for the core portions of an investor portfolio. The list to the right shows all currently available Schwab ETFs.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-800-435-4000 for a prospectus and brochure for any Schwab ETF. Please read the prospectus carefully before you invest. This report must be preceded or accompanied by a current prospectus.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available without charge, upon request, by visiting the Schwab ETFs’ website at www.schwabetfs.com, the SEC’s website at http://www.sec.gov, or by contacting Schwab ETFs at 1-800-435-4000.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available, without charge, by visiting the fund’s website at www.schwabetfs.com or the SEC’s website at http://www.sec.gov.

Schwab ETFs

U.S. ETFs

Schwab U.S. Broad Market ETF^tm

Schwab U.S. Large-Cap ETF^tm

Schwab U.S. Large-Cap Growth ETF^tm

Schwab U.S. Large-Cap Value ETF^tm

Schwab U.S. Mid-Cap ETF^tm

Schwab U.S. Small-Cap ETF^tm

Schwab U.S. Dividend Equity ETF^tm

Schwab U.S. REIT ETF^tm

International ETFs

Schwab International Equity ETF^tm

Schwab International Small-Cap Equity ETF^tm

Schwab Emerging Markets Equity ETF^tm

Fixed Income ETFs

Schwab U.S. Aggregate Bond ETF^tm

Schwab Short-Term U.S. Treasury ETF^tm

Schwab Intermediate-Term U.S. Treasury ETF^tm

Schwab U.S. TIPS ETF^tm

Investment Adviser

Charles Schwab Investment Management, Inc.

211 Main Street, San Francisco, CA 94105

Schwab ETFs^tm

1-800-435-4000

This report is not authorized for distribution to prospective investors

unless preceded or accompanied by a current prospectus.

Printed on recycled paper.

MFR54789-02

Semiannual report dated February 29, 2012, enclosed

Schwab International ETFs

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Equity ETF^tm

Schwab International Small-Cap

Equity ETF^tm

Schwab Emerging Markets

Equity ETF^tm

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Schwab International ETFs

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February 29, 2012

Schwab International

Equity ETF^tm

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Equity ETF^tm

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Equity ETF^tm

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In This Report


Performance at a Glance		2
From the President		3
Fund Management		5
Fund Summaries
Schwab International Equity ETF™		6
Schwab International Small-Cap Equity ETF™		8
Schwab Emerging Markets Equity ETF™		10
Fund Expenses		12
Financial Statements and Portfolio Holdings
Schwab International Equity ETF™		13
Schwab International Small-Cap Equity ETF™		33
Schwab Emerging Markets Equity ETF™		53
Financial Notes		69
Trustees and Officers		77
Glossary		80

Fund investment adviser: Charles Schwab Investment Management, Inc. (CSIM).
Distributor: SEI Investments Distribution Co. (SIDCO).

Performance at a Glance

The performance quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end, please visit www.schwabetfs.com.


Total Return for the Report Period*


Schwab International Equity ETF^tm (Ticker Symbol: SCHF)

NAV Return¹			3.50%
Market Price Return¹			3.54%
FTSE Developed ex-US Index			3.60%
ETF Category: Morningstar Foreign Large-Cap Blend²			3.11%

Performance Details			pages 6-7



Schwab International Small-Cap Equity ETF^tm (Ticker Symbol: SCHC)

NAV Return¹			0.23%
Market Price Return¹			0.90%
FTSE Developed Small Cap ex-US Liquid Index			0.39%
ETF Category: Morningstar Foreign Small/Mid Growth²			-1.78%

Performance Details			pages 8-9



Schwab Emerging Markets Equity ETF^tm (Ticker Symbol: SCHE)

NAV Return¹			4.86%
Market Price Return¹			4.31%
FTSE All-Emerging Index			5.24%
ETF Category: Morningstar Diversified Emerging Markets²			3.95%

Performance Details			pages 10-11

Index ownership — “FTSE^®” is a trademark jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited (“FTSE”) under license. FTSE does not sponsor, endorse or promote Schwab ETFs and does not accept any liability in relation to their issue, operation and trading.


*	The report period covers the six months beginning September 1, 2011 through February 29, 2012.

¹	The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

²	The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.

2 Schwab International ETFs

From the President

Marie Chandoha is President and CEO of Charles Schwab Investment Management, Inc., and the funds covered in this report.

Dear Shareholder,

For the six months ended February 29, 2012, international stock investors experienced two sharply contrasting performance environments: the risk-averse environment of 2011, and the comparatively risk-tolerant environment of early 2012. As discussed in more detail below, the euro zone’s sovereign debt crisis, mixed economic growth, and financial market volatility were catalysts for these two sharply different investment settings. For the six-month report period, the FTSE All Emerging Index returned 5.24%, the FTSE Developed ex-U.S. Index returned 3.60%, and the FTSE Developed Small Cap ex-U.S. Liquid Index returned 0.39%.

The euro zone’s ongoing sovereign debt crisis represented one of the primary reasons for the limited economic growth globally, while also fueling substantial financial market volatility. The pressure brought on by this debt crisis was particularly clear in the latter part of 2011. Ongoing efforts by European leaders to restructure Greece’s sovereign debt, while at the same time attempting to avoid a default, translated into an anxiety-ridden climate for investors. Amid this uncertain financial market backdrop, the Federal Reserve and European Central Bank acted in close coordination to ensure that financial markets had ample liquidity. In spite of this collaboration, investment capital generally favored perceived “safe haven” countries such as the U.S. in 2011.

On the economic front, results were mixed. Government initiatives aimed at controlling inflation, currency values, and rising prices in residential properties tempered economic activity within some emerging economies. Brazil’s economy, for example—which enjoys developed agricultural, service, mining, and manufacturing—is estimated to have expanded by an inflation-adjusted 2.8% in 2011 (as measured by real gross domestic product). This rate represented less than half of the

Asset Class Performance Comparison % returns during the report period

This graph compares the performance of various asset classes during the report period. Final performance figures for the period are in the key below.



		13.31%		S&P 500^® Index: measures U.S. large-cap stocks

		12.40%		Russell 2000^® Index: measures U.S. small-cap stocks

		4.26%		MSCI EAFE^® Index: measures (in U.S. dollars) large-cap stocks in Europe, Australasia and the Far East

		2.73%		Barclays Capital U.S. Aggregate Bond Index: measures the U.S. bond market

		0.01%		Three-Month U.S. Treasury Bills (T-bills): measures short-term U.S. Treasury obligations

Data source: Index provider websites and Charles Schwab Investment Management, Inc.

Nothing in this report represents a recommendation of a security by the investment adviser.

Manager views and portfolio holdings may have changed since the report date.

Schwab International ETFs 3

From the President continued

International stock investors experienced two sharply contrasting performance environments: the risk-averse environment of 2011, and the comparatively risk-tolerant environment of early 2012.

country’s 2010 pace and a steeper deceleration than was originally expected. China’s economy slowed while heading toward a forecasted “soft landing”—moderate but relatively robust economic growth—and decreased manufacturing activity tempered economic expansion in Hong Kong, South Korea, and Thailand.

In addition, economic activity in some developed markets decelerated heading into 2012. With U.S. growth expanding at what could be perceived as a frustratingly slow pace, demand for European exports was limited, and Europe confronted the effects of austerity measures that weighed on its own economic growth. As a result, the euro zone headed toward what the European Commission—the Directorate-General for Economic and Financial Affairs in Europe—forecasted in February would be a mild recession. By comparison, U.S. economic growth gained some momentum heading into 2012. In Japan, reduced demand from developed nations represented a significant hurdle for the country’s export-driven economy, while domestic reconstruction provided a modest counterbalance.

With that backdrop in mind, international equities started out the six months on a sour note, selling off sharply in September 2011. A worrisome soft patch in U.S. economic data that fueled fears of recession was one catalyst for the selloff, while the stock market’s reaction to Standard & Poor’s August downgrade of long-term Treasuries—and worries about possible credit-related aftershocks—was another. In addition, data began to suggest an unexpectedly quick deceleration of economic growth in China, while the euro zone’s crisis worsened.

Investors’ interest in riskier assets shifted sharply as 2012 began, however. U.S. economic data improved and paved the way for a potential increase in demand for imports. China’s economy slowed but didn’t stall, while a long-awaited resolution to the debt crisis in Greece seemed not only possible but likely. As a result, investors turned to the same markets they had largely avoided in 2011. For the first two months of 2012, the FTSE All Emerging Index, FTSE Developed ex-U.S. Index, and FTSE Developed Small Cap ex-U.S. Liquid Index each experienced double-digit returns, a sharp contrast to the comparatively negative returns generated for the last four months of 2011.

For details concerning the characteristics and investment performance of the Schwab International ETFs, please read the pages that follow this letter.

Sincerely,

Indices are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index return figures assume dividends and distributions were reinvested.

4 Schwab International ETFs

Fund Management



		Agnes Hong, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in September 2009, she worked for five years as a portfolio manager for a major asset management firm. Prior to that, she worked in strategy and management consulting for five years. In addition, she also worked as a senior product manager servicing global financial services clients.

		Ferian Juwono, CFA, a managing director and portfolio manager of the investment adviser, has day-to-day responsibility for the co-management of the funds. Prior to joining the firm in May 2010, he was a portfolio manager at a major asset management firm for three years. Before that position, he was a senior business analyst at a major financial firm for nearly two years. In addition, he was a senior financial analyst at a regional banking firm for four years.

Schwab International ETFs 5

Schwab International Equity ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab International Equity ETF^tm (11/3/09)
NAV Return²		3.50	%		-7.33	%		4.63	%
Market Price Return²		3.54	%		-7.86	%		4.68	%
FTSE Developed ex-US Index		3.60	%		-7.25	%		4.89	%
ETF Category: Morningstar Foreign Large Blend³		3.11	%		-7.62	%		5.51	%

Fund Expense Ratio⁴: 0.13%

Country Weightings % of Investments


Japan			17.1%
United Kingdom			16.6%
Canada			9.0%
France			8.3%
Australia			7.2%
Germany			7.1%
Switzerland			6.9%
Republic of Korea			5.0%
Hong Kong			4.0%
Netherlands			3.8%
Other Countries			15.0%
Total			100.0%

International investing may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principals, or from economic or political instability in other nations.


*		Inception represents the date that the shares began trading in the secondary market.

¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

6 Schwab International ETFs

Performance Summary as of 2/29/12 continued

Statistics


Number of Holdings			977
Weighted Average Market Cap ($ x 1,000,000)			$47,644
Price/Earnings Ratio (P/E)			19.7
Price/Book Ratio (P/B)			1.1
Portfolio Turnover Rate¹			4%

Sector Weightings % of Investments


Financials			23.6%
Industrials			12.4%
Materials			11.4%
Consumer Discretionary			10.3%
Energy			10.1%
Consumer Staples			10.0%
Health Care			7.7%
Information Technology			5.8%
Telecommmunication Services			4.8%
Utilities			3.8%
Other			0.1%
Total			100.0%

Top Equity Holdings % of Net Assets²


Nestle S.A. - Reg’d			1.6%
Samsung Electronics Co., Ltd. GDR - Reg’d			1.2%
HSBC Holdings plc			1.2%
BP plc			1.1%
Royal Dutch Shell plc, A Shares			1.0%
Vodafone Group plc			1.0%
Novartis AG - Reg’d			1.0%
Total S.A.			0.9%
BHP Billiton Ltd.			0.9%
Roche Holding AG			0.9%
Total			10.8%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		This list is not a recommendation of any security by the investment adviser.

Schwab International ETFs 7

Schwab International Small-Cap Equity ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab International Small-Cap Equity ETF^tm (1/14/10)
NAV Return²		0.23	%		-7.32	%		5.80	%
Market Price Return²		0.90	%		-7.82	%		5.91	%
FTSE Developed Small Cap ex-US Liquid Index		0.39	%		-7.41	%		6.26	%
ETF Category: Morningstar Foreign Small/Mid Growth³		-1.78	%		-10.90	%		3.40	%

Fund Expense Ratio⁴: 0.35%

Country Weightings % of Investments


Canada			21.0%
United Kingdom			17.3%
Japan			14.0%
Australia			8.0%
Republic of Korea			4.3%
Germany			4.2%
Switzerland			3.5%
Hong Kong			3.4%
France			3.1%
Sweden			2.5%
Other Countries			18.7%
Total			100.0%

Investments in smaller companies typically exhibit higher volatility.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

8 Schwab International ETFs

Performance Summary as of 2/29/12 continued

Statistics


Number of Holdings			977
Weighted Average Market Cap ($ x 1,000,000)			$1,966
Price/Earnings Ratio (P/E)			19.0
Price/Book Ratio (P/B)			1.3
Portfolio Turnover Rate¹			16%

Sector Weightings % of Investments


Industrials			20.6%
Financials			17.2%
Materials			15.5%
Consumer Discretionary			15.1%
Energy			10.0%
Information Technology			7.6%
Consumer Staples			5.9%
Health Care			4.5%
Utilities			2.4%
Telecommunication Services			1.0%
Other			0.2%
Total			100.0%

Top Equity Holdings % of Net Assets²


New Gold, Inc.			0.4%
Baytex Energy Corp.			0.4%
Metro, Inc., A Shares			0.4%
Franco-Nevada Corp.			0.4%
Athabasca Oil Sands Corp.			0.4%
Onex Corp.			0.4%
Inmet Mining Corp.			0.3%
Centerra Gold, Inc.			0.3%
Viterra, Inc.			0.3%
Pembina Pipeline Corp.			0.3%
Total			3.6%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		This list is not a recommendation of any security by the investment adviser.

Schwab International ETFs 9

Schwab Emerging Markets Equity ETF™

Performance Summary as of 2/29/12

Average Annual Total Returns¹


Fund and Inception Date	6 Months			1 Year			Since Inception*


Fund: Schwab Emerging Markets Equity ETF^tm (1/14/10)
NAV Return²		4.86	%		-0.98	%		4.82	%
Market Price Return²		4.31	%		-2.19	%		4.71	%
FTSE All-Emerging Index		5.24	%		-0.81	%		5.39	%
ETF Category: Morningstar Diversified Emerging Markets³		3.95	%		-2.00	%		3.59	%

Fund Expense Ratio⁴: 0.25%

Country Weightings % of Investments


Brazil			19.2%
China			17.1%
Taiwan			12.6%
South Africa			10.1%
India			9.8%
Russia			6.8%
Mexico			5.3%
Malaysia			4.5%
Indonesia			3.0%
Chile			2.3%
Other Countries			9.3%
Total			100.0%

Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.


*		Inception represents the date that the shares began trading in the secondary market.
¹		Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
²		The fund’s per share net asset value (“NAV”) is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the market value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund’s NAV is calculated. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
³		Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
⁴		As stated in the prospectus.

10 Schwab International ETFs

Performance Summary as of 2/29/12 continued

Statistics


Number of Holdings			553
Weighted Average Market Cap ($ x 1,000,000)			$35,098
Price/Earnings Ratio (P/E)			12.6
Price/Book Ratio (P/B)			1.6
Portfolio Turnover Rate¹			4%

Sector Weightings % of Investments


Financials			26.3%
Energy			16.4%
Materials			13.9%
Information Technology			8.9%
Telecommunication Services			8.8%
Consumer Staples			8.0%
Industrials			6.0%
Consumer Discretionary			5.8%
Utilities			3.9%
Health Care			1.2%
Other			0.8%
Total			100.0%

Top Equity Holdings % of Net Assets²


Petroleo Brasileiro S.A. ADR			2.2%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR			2.1%
China Mobile Ltd.			1.8%
Gazprom ADR			1.7%
China Construction Bank Corp., H Shares			1.6%
Petroleo Brasileiro S.A. ADR			1.6%
America Movil S.A.B. de C.V., Series L			1.5%
Vale S.A. ADR			1.4%
Itau Unibanco Holding S.A. ADR			1.4%
Industrial & Commercial Bank of China Ltd., H Shares			1.3%
Total			16.6%

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.


¹		Not annualized.
²		This list is not a recommendation of any security by the investment adviser.

Schwab International ETFs 11

Fund Expenses (Unaudited)

Examples for a $1,000 Investment


					Ending
			Beginning		Account Value		Expenses Paid
	Expense Ratio¹		Account Value		(Net of Expenses)		During Period²
	(Annualized)		at 9/1/11		at 2/29/12		9/1/11–2/29/12

Schwab International Equity ETF^tm
Actual Return		0.13%	$	1,000	$	1,035.00	$	0.66
Hypothetical 5% Return		0.13%	$	1,000	$	1,024.22	$	0.65


Schwab International Small-Cap Equity ETF^tm
Actual Return		0.35%	$	1,000	$	1,002.30	$	1.74
Hypothetical 5% Return		0.35%	$	1,000	$	1,023.12	$	1.76


Schwab Emerging Markets Equity ETF^tm
Actual Return		0.25%	$	1,000	$	1,048.60	$	1.27
Hypothetical 5% Return		0.25%	$	1,000	$	1,023.62	$	1.26


¹		Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
²		Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 days of the period, and divided by 366 days of the fiscal year.

12 Schwab International ETFs

Schwab International Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			10/30/09¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		25.99			23.82			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.25			0.68			0.38
Net realized and unrealized gains (losses)		0.54			1.96	²		(1.52	)

Total from investment operations		0.79			2.64			(1.14	)
Less distributions:
Distributions from net investment income		(0.75	)		(0.47	)		(0.04	)

Net asset value at end of period		26.03			25.99			23.82

Total return (%)		3.50	³		11.04			(4.57	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.13	⁴		0.13			0.14	^4,5
Gross operating expenses		0.13	⁴		0.13			0.14	⁴
Net investment income (loss)		2.36	⁴		3.10			2.94	⁴
Portfolio turnover rate⁶		4	³		6			6	³
Net assets, end of period ($ x 1,000)		757,422			634,208			285,869

* Unaudited.

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 13

Schwab International Equity ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	99	.0%	Common Stock		736,060,508		750,212,140
	0	.4%	Preferred Stock		2,310,152		2,889,199
	0	.1%	Other Investment Company		507,296		507,296


	99	.5%	Total Investments		738,877,956		753,608,635
	0	.3%	Collateral Invested for Securities on Loan		2,281,438		2,281,438
	0	.2%	Other Assets and Liabilities, Net				1,532,285


	100	.0%	Net Assets				757,422,358


	Number		Value
Security	of Shares		($)

Common Stock 99.0% of net assets

Australia 7.2%


Banks 2.1%
Australia & New Zealand Banking Group Ltd.		146,664		3,478,267
Bendigo & Adelaide Bank Ltd.		27,354		228,457
Commonwealth Bank of Australia		92,538		4,942,146
National Australia Bank Ltd.		132,696		3,393,602
Westpac Banking Corp.		172,854		3,903,287

				15,945,759


Capital Goods 0.0%
CSR Ltd.		58,200		120,105
GWA Group Ltd.		50,925		130,952

				251,057


Commercial & Professional Services 0.1%
Brambles Ltd.		101,559		794,441
Downer EDI Ltd. *		40,449		172,628

				967,069


Consumer Services 0.1%
Crown Ltd.		39,576		359,183
Echo Entertainment Group Ltd.		78,570		365,031
Tatts Group Ltd.		152,484		392,109

				1,116,323


Diversified Financials 0.2%
ASX Ltd.		13,095		438,321
Challenger Ltd.		27,354		122,356
IOOF Holdings Ltd.		24,735		148,056
Macquarie Group Ltd.		20,370		589,175

				1,297,908


Energy 0.5%
Aquila Resources Ltd. *		9,312		51,614
Energy Resources of Australia Ltd. *		56,745		77,251
New Hope Corp., Ltd.		23,280		143,623
Origin Energy Ltd.		67,367		990,627
Paladin Energy Ltd. *		25,317		51,152
Santos Ltd.		52,380		816,085
Woodside Petroleum Ltd.		31,437		1,264,898
WorleyParsons Ltd.		14,259		452,478

				3,847,728


Food & Staples Retailing 0.6%
Metcash Ltd.		60,819		278,618
Wesfarmers Ltd.		54,417		1,710,930
Wesfarmers Ltd., Price Protected Shares		12,513		403,833
Woolworths Ltd.		66,057		1,806,408

				4,199,789


Food, Beverage & Tobacco 0.1%
Coca-Cola Amatil Ltd.		34,920		452,752
Treasury Wine Estates Ltd.		49,914		209,786

				662,538


Health Care Equipment & Services 0.1%
Ansell Ltd.		5,820		93,254
Cochlear Ltd.		2,910		192,200
Ramsay Health Care Ltd.		8,730		173,083
Sonic Healthcare Ltd.		18,333		238,487

				697,024


Insurance 0.3%
AMP Ltd.		165,915		718,844
Insurance Australia Group Ltd.		149,574		534,920
QBE Insurance Group Ltd.		56,163		706,938
Suncorp Group Ltd.		53,835		475,798

				2,436,500


Materials 1.9%
Adelaide Brighton Ltd.		32,883		106,585
Amcor Ltd.		108,543		832,655
BHP Billiton Ltd.		180,129		7,025,798
Boral Ltd.		34,629		164,626
DuluxGroup Ltd.		20,079		67,253
Fortescue Metals Group Ltd.		119,310		718,020
Gunns Ltd. *		340,470		64,376
Iluka Resources Ltd.		43,068		777,098
Incitec Pivot Ltd.		112,908		397,692
Newcrest Mining Ltd.		37,830		1,368,851
Nufarm Ltd. *		14,841		75,685
Orica Ltd.		20,079		590,087
OZ Minerals Ltd.		15,922		188,372
Rio Tinto Ltd.		26,190		1,908,632

				14,285,730


Media 0.0%
APN News & Media Ltd.		45,687		44,673
Consolidated Media Holdings Ltd.		44,523		135,175

				179,848


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
CSL Ltd.		34,629		1,226,461


Real Estate 0.6%
CFS Retail Property Trust		245,604		472,346

14 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Commonwealth Property Office Fund		318,378		335,392
Dexus Property Group		358,803		346,964
GPT Group		123,747		417,152
Lend Lease Group		41,072		332,378
Mirvac Group		188,277		244,109
Stockland		170,235		583,059
Westfield Group		129,204		1,227,071
Westfield Retail Trust		149,574		405,634

				4,364,105


Software & Services 0.0%
Computershare Ltd.		37,248		311,493


Telecommunication Services 0.1%
Telstra Corp., Ltd.		214,176		763,641


Transportation 0.2%
Asciano Group		49,640		265,486
Sydney Airport		23,650		66,948
Toll Holdings Ltd.		14,550		89,136
Transurban Group		129,786		785,273

				1,206,843


Utilities 0.1%
AGL Energy Ltd.		36,666		552,640

				54,312,456

Austria 0.3%


Banks 0.1%
Erste Group Bank AG		8,148		205,293
Raiffeisen Bank International Holding AG		3,201		116,406

				321,699


Capital Goods 0.0%
Andritz AG		2,037		202,786
Strabag SE		3,201		96,773

				299,559


Energy 0.1%
OMV AG		10,476		391,404


Insurance 0.0%
Vienna Insurance Group AG		2,619		116,104


Materials 0.1%
Voestalpine AG		10,767		383,192


Real Estate 0.0%
Immofinanz AG *		53,600		188,358


Telecommunication Services 0.0%
Telekom Austria AG		21,534		251,678

				1,951,994

Belgium 0.8%


Banks 0.0%
Dexia S.A. *		66,348		24,585
KBC GROEP N.V.		6,984		165,642

				190,227


Capital Goods 0.0%
NV Bekaert S.A.		4,947		166,069


Diversified Financials 0.1%
Groupe Bruxelles Lambert S.A.		5,238		395,047


Food & Staples Retailing 0.0%
Colruyt S.A.		5,820		229,047
Delhaize Group		1,455		80,297

				309,344


Food, Beverage & Tobacco 0.4%
Anheuser-Busch InBev N.V.		45,396		3,061,815


Insurance 0.1%
Ageas		164,706		351,201


Materials 0.1%
Solvay S.A.		2,037		251,671
Umicore		6,402		334,423

				586,094


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
UCB S.A.		8,439		342,165


Telecommunication Services 0.1%
Belgacom S.A.		11,349		362,763
Telenet Group Holding N.V. *		4,365		172,720

				535,483

				5,937,445

Canada 8.9%


Automobiles & Components 0.1%
Magna International, Inc.		10,000		478,501


Banks 2.2%
Bank of Montreal		29,100		1,715,953
Bank of Nova Scotia		58,200		3,152,414
Canadian Imperial Bank of Commerce		29,100		2,265,779
Royal Bank of Canada		87,300		4,935,138
The Toronto-Dominion Bank		58,200		4,776,187

				16,845,471


Capital Goods 0.2%
Bombardier, Inc., B Shares		116,400		561,348
Finning International, Inc.		29,100		849,704

				1,411,052


Consumer Services 0.0%
Tim Hortons, Inc.		4,000		217,107


Diversified Financials 0.0%
CI Financial Corp.		5,000		111,681
IGM Financial, Inc.		5,000		231,941

				343,622


Energy 2.4%
ARC Resources Ltd.		6,000		155,642
Cameco Corp.		5,000		123,357
Canadian Natural Resources Ltd.		58,200		2,170,350
Canadian Oil Sands Ltd.		18,000		431,839
Cenovus Energy, Inc.		43,740		1,707,945
Crescent Point Energy Corp.		10,000		475,659
Enbridge, Inc.		58,200		2,254,848
EnCana Corp.		58,200		1,191,240
Husky Energy, Inc.		29,100		789,728
Imperial Oil Ltd.		29,100		1,397,166
MEG Energy Corp. *		5,100		225,343
Nexen, Inc.		29,100		595,916
Pacific Rubiales Energy Corp.		15,000		437,535
Penn West Petroleum Ltd.		15,000		329,103

See financial notes 15

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Suncor Energy, Inc.		87,300		3,157,141
Talisman Energy, Inc.		58,200		803,614
TransCanada Corp.		46,180		2,042,807

				18,289,233


Food & Staples Retailing 0.1%
Loblaw Cos. Ltd.		2,000		70,501
Shoppers Drug Mart Corp.		19,400		827,841

				898,342


Food, Beverage & Tobacco 0.1%
Saputo, Inc.		12,200		508,338


Insurance 0.6%
Great-West Lifeco, Inc.		29,100		680,413
Manulife Financial Corp.		116,400		1,463,051
Power Corp. of Canada		29,100		738,616
Power Financial Corp.		29,100		812,183
Sun Life Financial, Inc.		29,100		642,596

				4,336,859


Materials 1.8%
Agnico-Eagle Mines Ltd.		5,000		182,598
Agrium, Inc.		2,500		213,666
Barrick Gold Corp.		62,100		2,984,734
Eldorado Gold Corp.		17,600		270,178
First Quantum Minerals Ltd.		24,000		551,663
Goldcorp, Inc.		54,600		2,659,183
IAMGOLD Corp.		12,100		183,782
Ivanhoe Mines Ltd. *		32,985		575,006
Kinross Gold Corp.		58,200		647,028
Osisko Mining Corp. *		29,100		370,490
Potash Corp. of Saskatchewan, Inc.		51,060		2,386,204
Silver Wheaton Corp.		23,200		892,244
Teck Resources Ltd., Class B		38,200		1,536,610
Yamana Gold, Inc.		29,100		507,577

				13,960,963


Media 0.2%
Shaw Communications, Inc., B Shares		29,100		600,052
Thomson Reuters Corp.		29,100		848,227

				1,448,279


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Valeant Pharmaceuticals International, Inc. *		12,700		676,551


Real Estate 0.2%
Brookfield Asset Management, Inc., Class A		29,100		913,520
Brookfield Office Properties, Inc.		58,200		1,015,745

				1,929,265


Retailing 0.0%
Canadian Tire Corp. Ltd., Class A		3,660		233,472


Software & Services 0.1%
CGI Group, Inc., A Shares *		29,100		625,756


Technology Hardware & Equipment 0.1%
Research In Motion Ltd. *		33,100		471,489


Telecommunication Services 0.2%
BCE, Inc.		29,100		1,197,740
Rogers Communications, Inc., B Shares		10,900		419,754

				1,617,494


Transportation 0.4%
Canadian National Railway Co.		29,100		2,252,484
Canadian Pacific Railway Ltd.		7,110		535,190

				2,787,674


Utilities 0.1%
Canadian Utilities Ltd., Class A		4,000		267,790
Fortis, Inc.		6,000		198,833
TransAlta Corp.		11,000		233,301

				699,924

				67,779,392

China 0.0%


Consumer Durables & Apparel 0.0%
Anta Sports Products Ltd. (a)		3,000		3,334


Materials 0.0%
China Zhongwang Holdings Ltd. (a)		116,400		51,028
Fosun International		145,500		90,613

				141,641


Retailing 0.0%
Golden Eagle Retail Group Ltd. (a)		20,000		49,409


Technology Hardware & Equipment 0.0%
Foxconn International Holdings Ltd. (a)		97,000		68,163

				262,547

Denmark 1.1%


Banks 0.1%
Danske Bank A/S *		63,574		1,149,600


Capital Goods 0.1%
FLSmidth & Co. A/S		4,074		325,465
Rockwool International A/S, B Shares		873		89,613
Vestas Wind Systems A/S *		5,238		54,098

				469,176


Food, Beverage & Tobacco 0.1%
Carlsberg A/S, B Shares		7,857		621,039


Health Care Equipment & Services 0.1%
Coloplast A/S, B Shares		1,746		288,395
William Demant Holding A/S *		1,746		162,733

				451,128


Materials 0.1%
Novozymes A/S, B Shares		13,095		391,124


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Novo Nordisk A/S, B Shares		31,428		4,424,886


Transportation 0.1%
AP Moller - Maersk A/S, A Shares		23		177,619
AP Moller - Maersk A/S, B Shares		45		364,356
DSV A/S		9,603		224,621

				766,596

				8,273,549

Finland 0.7%


Automobiles & Components 0.0%
Nokian Renkaat Oyj		8,148		363,065

16 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Capital Goods 0.2%
Kone Oyj, B Shares		13,968		833,164
Wartsila Oyj		13,968		482,820

				1,315,984


Food & Staples Retailing 0.0%
Kesko Oyj, B Shares		3,492		117,855


Insurance 0.1%
Sampo Oyj, A Shares		34,047		963,269


Materials 0.1%
Stora Enso Oyj, R Shares		44,814		337,805
UPM-Kymmene Oyj		34,629		479,445

				817,250


Technology Hardware & Equipment 0.2%
Nokia Oyj		212,721		1,121,154


Utilities 0.1%
Fortum Oyj		28,518		711,470

				5,410,047

France 8.3%


Automobiles & Components 0.2%
Compagnie Generale des Etablissements Michelin, B Shares		9,133		632,363
Faurecia		1,746		49,036
Renault S.A.		14,841		788,950

				1,470,349


Banks 0.6%
BNP Paribas		61,401		3,009,056
Credit Agricole S.A.		50,925		327,464
Societe Generale		44,814		1,453,731

				4,790,251


Capital Goods 1.1%
Alstom S.A.		16,878		730,163
Bouygues S.A.		16,005		511,268
Compagnie de Saint-Gobain		31,428		1,498,349
Legrand S.A.		11,058		403,090
Safran S.A.		11,931		401,476
Schneider Electric S.A.		31,428		2,144,523
Thales S.A.		4,365		158,209
Vallourec S.A.		6,984		493,751
Vinci S.A.		29,391		1,536,679
Wendel		2,037		172,322
Zodiac Aerospace		2,328		225,247

				8,275,077


Commercial & Professional Services 0.1%
Bureau Veritas S.A.		4,365		362,080
Edenred		17,460		467,826
Societe BIC S.A.		2,619		264,404

				1,094,310


Consumer Durables & Apparel 0.7%
Christian Dior S.A.		4,074		634,628
Hermes International		2,619		981,137
LVMH Moet Hennessy Louis Vuitton S.A.		22,407		3,785,695

				5,401,460


Consumer Services 0.2%
Accor S.A.		17,460		616,605
Sodexo		11,058		854,550

				1,471,155


Diversified Financials 0.0%
Eurazeo		2,463		117,128


Energy 1.1%
Compagnie Generale De Geophysique-Veritas *		9,312		288,870
Technip S.A.		6,402		701,644
Total S.A.		125,130		7,028,553

				8,019,067


Food & Staples Retailing 0.2%
Carrefour S.A.		36,084		908,433
Casino Guichard Perrachon S.A.		3,783		370,025

				1,278,458


Food, Beverage & Tobacco 0.5%
Danone S.A.		35,793		2,431,361
Pernod Ricard S.A.		13,695		1,422,715

				3,854,076


Health Care Equipment & Services 0.2%
bioMerieux		1,164		97,567
Essilor International S.A.		13,386		1,070,089

				1,167,656


Household & Personal Products 0.2%
L’Oreal S.A.		15,714		1,799,575


Insurance 0.3%
AXA S.A.		132,131		2,139,578
CNP Assurances		10,476		151,629
SCOR SE		10,185		270,650

				2,561,857


Materials 0.4%
Air Liquide S.A.		16,328		2,130,246
Arkema S.A		2,910		267,740
Lafarge S.A.		13,095		611,525

				3,009,511


Media 0.4%
Eutelsat Communications		7,275		272,392
JC Decaux S.A. *		3,201		89,193
Lagardere S.C.A.		7,566		227,521
Publicis Groupe		7,857		431,606
Societe Television Francaise 1		9,312		111,736
Vivendi		74,496		1,606,411

				2,738,859


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Sanofi		75,951		5,639,795


Real Estate 0.2%
Gecina S.A.		1,455		140,293
Klepierre		5,238		167,044
Unibail-Rodamco SE		5,529		1,072,440

				1,379,777


Retailing 0.1%
PPR		5,820		993,418


Software & Services 0.1%
Atos Origin S.A.		3,783		216,185
Cap Gemini S.A.		8,439		373,322

See financial notes 17

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Dassault Systemes S.A.		2,910		242,594

				832,101


Technology Hardware & Equipment 0.1%
Alcatel-Lucent *		189,150		476,195
Gemalto N.V.		4,656		267,102

				743,297


Telecommunication Services 0.2%
France Telecom S.A.		109,707		1,681,079


Transportation 0.1%
Aeroports de Paris		1,455		115,419
Air France-KLM *		6,111		36,271
Bollore		582		120,674
Groupe Eurotunnel S.A. - Reg’d		24,735		215,469

				487,833


Utilities 0.5%
Electricite de France		19,788		495,394
GDF Suez		101,559		2,645,105
Suez Environnement S.A.		23,862		350,803
Veolia Environnement		30,555		375,422

				3,866,724

				62,672,813

Germany 6.6%


Automobiles & Components 0.8%
Bayerische Motoren Werke AG		20,661		1,918,921
Continental AG *		4,074		372,384
Daimler AG - Reg’d		57,909		3,516,517
Volkswagen AG		1,455		247,576

				6,055,398


Banks 0.1%
Commerzbank AG *		225,537		569,008


Capital Goods 0.9%
GEA Group AG		12,513		424,492
Hochtief AG		3,783		265,222
MAN SE		9,312		1,077,501
Siemens AG - Reg’d		51,798		5,187,061

				6,954,276


Consumer Durables & Apparel 0.2%
Adidas AG		13,968		1,102,041
Puma AG Rudolf Dassler Sport		582		202,771

				1,304,812


Diversified Financials 0.5%
Deutsche Bank AG - Reg’d		55,290		2,592,717
Deutsche Boerse AG		13,095		871,830

				3,464,547


Food & Staples Retailing 0.1%
Metro AG		12,804		509,041


Health Care Equipment & Services 0.2%
Fresenius Medical Care AG & Co. KGaA		11,931		839,182
Fresenius SE		7,275		755,185

				1,594,367


Household & Personal Products 0.1%
Beiersdorf AG		4,656		292,794
Henkel AG & Co. KGaA		4,947		271,090

				563,884


Insurance 0.7%
Allianz SE - Reg’d		26,481		3,224,612
Hannover Rueckversicherung AG - Reg’d		3,783		210,847
Muenchener Rueckversicherungs - Gesellschaft AG - Reg’d		11,931		1,746,832

				5,182,291


Materials 1.0%
BASF SE		49,470		4,360,998
HeidelbergCement AG		12,222		660,678
K+S AG		11,648		583,918
Lanxess AG		4,656		349,409
Linde AG		7,275		1,214,524
Salzgitter AG		2,910		178,831
ThyssenKrupp AG		23,280		630,774

				7,979,132


Media 0.0%
Kabel Deutschland Holding AG *		4,365		263,166


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Bayer AG - Reg’d		51,507		3,823,999
Merck KGaA		3,783		392,747

				4,216,746


Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG *		66,057		670,774


Software & Services 0.5%
SAP AG		53,544		3,627,846


Telecommunication Services 0.3%
Deutsche Telekom AG - Reg’d		186,822		2,189,227


Transportation 0.1%
Deutsche Lufthansa AG - Reg’d		10,767		150,079
Deutsche Post AG - Reg’d		51,216		903,326

				1,053,405


Utilities 0.5%
E.ON AG		122,220		2,822,718
RWE AG		26,020		1,190,397

				4,013,115

				50,211,035

Greece 0.1%


Banks 0.0%
Alpha Bank AE *		15,540		27,648
National Bank of Greece S.A. ADR *		35,000		108,150

				135,798


Energy 0.0%
Hellenic Petroleum S.A.		5,000		36,787


Food, Beverage & Tobacco 0.1%
Coca Cola Hellenic Bottling Co. S.A. ADR *		9,312		175,624


Telecommunication Services 0.0%
Hellenic Telecommunications Organization S.A.		20,661		65,779

				413,988

18 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Hong Kong 4.0%


Automobiles & Components 0.0%
Geely Automobile Holdings Ltd.		210,000		92,603
Xinyi Glass Holdings Co., Ltd.		156,000		98,157

				190,760


Banks 0.3%
BOC Hong Kong Holdings Ltd.		291,000		816,077
Dah Sing Banking Group Ltd.		246,560		264,182
Hang Seng Bank Ltd.		58,200		815,702
The Bank of East Asia Ltd. (a)		174,600		706,892

				2,602,853


Capital Goods 0.5%
Hutchison Whampoa Ltd.		228,000		2,272,445
Jardine Matheson Holdings Ltd.		11,000		561,000
Jardine Strategic Holdings Ltd.		5,000		152,800
Johnson Electric Holdings Ltd.		305,000		181,686
Noble Group Ltd.		341,181		388,529

				3,556,460


Consumer Durables & Apparel 0.1%
Hutchison Harbour Ring Ltd.		582,000		54,030
Techtronic Industries Co., Ltd.		145,500		175,972
Yue Yuen Industrial Holdings Ltd.		40,000		136,158

				366,160


Consumer Services 0.2%
China Travel International Investment Hong Kong Ltd.		582,000		115,564
Galaxy Entertainment Group Ltd. *		151,000		373,815
Sands China Ltd.		116,400		438,243
The Hongkong & Shanghai Hotels Ltd.		145,500		215,745

				1,143,367


Diversified Financials 0.2%
Hong Kong Exchanges & Clearing Ltd.		87,300		1,625,401


Energy 0.0%
Mongolia Energy Co., Ltd. *		291,000		30,392


Food, Beverage & Tobacco 0.1%
China Huiyuan Juice Group Ltd. (a)		145,500		55,343
China Mengniu Dairy Co., Ltd.		74,000		209,910
Want Want China Holdings Ltd.		582,000		579,321

				844,574


Household & Personal Products 0.1%
Hengan International Group Co., Ltd.		99,500		904,464


Insurance 0.3%
AIA Group Ltd.		523,800		1,985,600


Materials 0.0%
Fushan International Energy Group Ltd.		140,000		59,569
Nine Dragons Paper Holdings Ltd.		62,000		56,039

				115,608


Real Estate 1.1%
Cheung Kong (Holdings) Ltd.		90,000		1,313,615
Chinese Estates Holdings Ltd.		145,500		234,505
Hang Lung Group Ltd.		40,000		269,479
Hang Lung Properties Ltd.		77,000		291,889
Henderson Land Development Co., Ltd.		45,000		282,856
Hongkong Land Holdings Ltd.		291,000		1,609,230
Hopewell Holdings Ltd.		145,500		445,559
Hysan Development Co., Ltd.		31,000		134,901
Kerry Properties Ltd.		10,000		47,578
Kowloon Development Co., Ltd.		25,000		27,270
New World Development Co., Ltd.		416,000		576,072
Sino Land Co., Ltd.		105,000		187,643
Sun Hung Kai Properties Ltd.		115,000		1,773,405
Swire Pacific Ltd.		42,000		476,824
Swire Properties Ltd. *		21,000		51,663
The Link REIT		145,500		544,989
The Wharf Holdings Ltd.		53,000		332,117
Wheelock & Co., Ltd.		10,000		34,426

				8,634,021


Retailing 0.3%
Belle International Holdings Ltd.		291,000		478,015
Chow Tai Fook Jewellery Group Ltd. (a)		30,000		51,059
GOME Electrical Appliances Holdings Ltd. (a)		1,164,000		355,697
Li & Fung Ltd.		220,000		507,188
Lifestyle International Holdings Ltd.		145,500		401,473
Parkson Retail Group Ltd.		291,000		345,191

				2,138,623


Semiconductors & Semiconductor Equipment 0.1%
ASM Pacific Technology Ltd.		29,100		410,102
GCL Poly Energy Holdings Ltd. (a)		384,000		131,702

				541,804


Software & Services 0.2%
Alibaba.com Ltd. *		65,000		110,796
Tencent Holdings Ltd.		50,100		1,307,457

				1,418,253


Technology Hardware & Equipment 0.0%
AAC Acoustic Technologies Holdings, Inc.		50,000		128,422
VTech Holdings Ltd. (a)		10,000		112,691

				241,113


Telecommunication Services 0.0%
HKT Trust / HKT Ltd. *		5,760		4,174
PCCW Ltd.		291,000		107,309

				111,483


Transportation 0.2%
Cathay Pacific Airways Ltd.		62,000		123,269
Hopewell Highway Infrastructure Ltd. (a)		1,746,000		1,026,569

				1,149,838


Utilities 0.3%
Cheung Kong Infrastructure Holdings Ltd.		22,000		129,208
CLP Holdings Ltd.		98,000		868,084
ENN Energy Holdings Ltd.		40,000		136,158
Hong Kong & China Gas Co., Ltd.		339,200		867,714
Power Assets Holdings Ltd.		80,000		597,238

				2,598,402

				30,199,176

See financial notes 19

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Ireland 0.5%


Commercial & Professional Services 0.1%
Experian plc		57,327		865,860


Food, Beverage & Tobacco 0.1%
Kerry Group plc, A Shares		6,693		286,503


Materials 0.1%
CRH plc		42,486		914,877


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Elan Corp. plc *		44,232		554,415
Shire plc		30,555		1,072,845

				1,627,260


Transportation 0.0%
Ryanair Holdings plc *		11,021		60,593

				3,755,093

Israel 0.6%


Banks 0.1%
Bank Hapoalim B.M.		66,348		215,230
Bank Leumi Le-Israel		56,745		164,694
First International Bank of Israel Ltd. *		7,857		75,194
Israel Discount Bank, A Shares *		53,259		67,020

				522,138


Capital Goods 0.0%
Delek Group Ltd.		291		52,671
Elbit Systems Ltd.		873		32,065
IDB Holding Corp., Ltd. *		873		7,028
Ormat Industries Ltd.		15,423		67,757

				159,521


Energy 0.1%
Avner Oil Exploration LP *		75,660		49,689
Delek Drilling - LP *		13,968		50,120
Isramco Negev 2 LP *		523,800		70,048
Oil Refineries Ltd. *		46,560		25,436
Ratio Oil Exploration 1992 LP *		291,000		26,509

				221,802


Food, Beverage & Tobacco 0.0%
Osem Investments Ltd.		1,455		21,038
Strauss Group Ltd. *		1,164		12,730

				33,768


Insurance 0.0%
Harel Insurance Investments & Financial Services Ltd.		582		18,525


Materials 0.1%
Israel Chemicals Ltd.		27,354		290,472
The Israel Corp., Ltd.		291		174,928

				465,400


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
Teva Pharmaceutical Industries Ltd.		55,149		2,473,946


Real Estate 0.0%
Azrieli Group		2,328		54,165
Gazit-Globe Ltd.		4,365		43,092

				97,257


Software & Services 0.0%
NICE Systems Ltd. *		2,910		99,254


Telecommunication Services 0.0%
Bezeq Israeli Telecommunication Corp., Ltd.		107,670		178,203
Cellcom Israel Ltd.		2,328		31,613

				209,816

				4,301,427

Italy 2.1%


Automobiles & Components 0.1%
Fiat S.p.A.		31,137		180,853
Pirelli & C S.p.A.		27,987		292,766

				473,619


Banks 0.4%
Banca Carige S.p.A.		62,274		95,966
Banca Monte dei Paschi di Siena S.p.A.		291,000		156,097
Banco Popolare Societa Cooperatira		87,300		161,158
Intesa Sanpaolo		600,042		1,172,710
UniCredit S.p.A.		221,742		1,158,614
Unione di Banche Italiane S.c.p.A.		41,031		190,898

				2,935,443


Capital Goods 0.1%
Fiat Industrial S.p.A. *		51,507		551,207


Consumer Durables & Apparel 0.1%
Luxottica Group S.p.A.		11,349		411,572


Consumer Services 0.0%
Autogrill S.p.A.		13,386		136,447


Diversified Financials 0.0%
EXOR S.p.A.		5,529		139,565
Mediobanca S.p.A.		34,047		222,714

				362,279


Energy 0.6%
Eni S.p.A.		165,579		3,834,078
Saipem S.p.A.		20,370		1,034,642

				4,868,720


Food, Beverage & Tobacco 0.0%
Parmalat S.p.A.		68,385		155,056


Insurance 0.2%
Assicurazioni Generali S.p.A.		96,321		1,557,779


Media 0.0%
Mediaset S.p.A.		48,306		143,712


Telecommunication Services 0.1%
Telecom Italia S.p.A.		730,410		845,165
Telecom Italia S.p.A. - RSP		262,191		249,195

				1,094,360


Transportation 0.1%
Atlantia S.p.A.		28,141		473,188


Utilities 0.4%
A2A S.p.A.		113,199		114,403
Enel S.p.A.		444,648		1,791,554
Snam Rete Gas S.p.A.		99,231		482,382
Terna-Rete Elettrica Nazionale S.p.A.		91,083		344,568

				2,732,907

				15,896,289

20 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Japan 17.0%


Automobiles & Components 2.1%
Bridgestone Corp.		29,100		703,232
Denso Corp.		29,100		966,045
Honda Motor Co., Ltd.		87,300		3,338,195
Isuzu Motors Ltd.		6,000		33,951
Mitsubishi Motors Corp. *		582,000		697,480
NHK Spring Co., Ltd.		5,000		51,767
Nissan Motor Co., Ltd.		145,500		1,495,626
Nok Corp.		29,100		583,869
Sumitomo Rubber Industries Ltd.		29,100		367,795
Suzuki Motor Corp.		29,100		692,806
Toyota Motor Corp.		148,830		6,169,071
Yamaha Motor Co., Ltd.		29,100		419,207

				15,519,044


Banks 1.8%
77 Bank Ltd.		28,000		123,499
Aozora Bank Ltd.		291,000		844,885
Bank of Yokohama Ltd.		30,000		145,293
Fukuoka Financial Group, Inc.		27,000		118,087
Hokuhoku Financial Group, Inc.		291,000		564,455
Mitsubishi UFJ Financial Group, Inc.		814,800		4,228,021
Mizuho Financial Group, Inc.		1,319,200		2,216,595
Resona Holdings, Inc.		145,500		699,277
Sapporo Hokuyo Holdings, Inc.		58,200		201,334
Senshu Ikeda Holdings, Inc.		232,800		342,268
Shinsei Bank Ltd.		301,000		390,474
Shizuoka Bank Ltd.		20,000		204,102
Sumitomo Mitsui Financial Group, Inc.		87,300		2,973,636
Sumitomo Mitsui Trust Holdings, Inc.		150,000		522,609
The Chiba Bank Ltd.		20,000		127,008
The Hokkoku Bank Ltd.		2,000		7,586
The Juroku Bank Ltd.		20,000		69,434
The Nanto Bank Ltd.		4,000		19,570
The San-In Godo Bank Ltd.		2,000		15,345
The Shiga Bank Ltd.		8,000		49,815
Yamaguchi Financial Group, Inc.		9,000		82,506

				13,945,799


Capital Goods 2.3%
COMSYS Holdings Corp.		29,100		317,102
Daikin Industries Ltd.		29,100		866,457
Fanuc Ltd.		12,090		2,200,219
Hitachi Cable Ltd. *		7,000		16,778
IHI Corp.		291,000		740,623
ITOCHU Corp.		58,200		665,122
JS Group Corp.		29,100		611,193
JTEKT Corp.		29,100		330,044
Kandenko Co., Ltd.		2,000		10,526
Kawasaki Heavy Industries Ltd.		291,000		916,790
Komatsu Ltd.		58,200		1,741,542
Mitsubishi Corp.		87,300		2,147,446
Mitsubishi Electric Corp.		4,000		36,027
Mitsubishi Heavy Industries Ltd.		291,000		1,369,792
Mitsui & Co., Ltd.		87,300		1,508,929
Nippon Sheet Glass Co., Ltd.		45,000		75,612
Sojitz Corp.		145,500		271,442
Sumitomo Corp.		87,300		1,299,685
Sumitomo Electric Industries Ltd.		58,200		760,037
The Japan Steel Works Ltd.		1,000		7,438
THK Co., Ltd.		29,100		618,743
Toyota Tsusho Corp.		29,100		586,386
Ushio, Inc.		29,100		433,228

				17,531,161


Commercial & Professional Services 0.2%
Secom Co., Ltd.		29,100		1,385,971


Consumer Durables & Apparel 0.9%
Haseko Corp. *		155,500		115,271
Makita Corp.		29,100		1,215,196
NAMCO BANDAI Holdings, Inc.		29,100		408,062
Nikon Corp.		29,100		791,316
Panasonic Corp.		174,600		1,637,279
Sega Sammy Holdings, Inc.		29,100		554,029
Sony Corp.		58,200		1,248,992
Sumitomo Forestry Co., Ltd.		29,100		265,689
TSI Holdings Co., Ltd.		32,100		195,122

				6,430,956


Consumer Services 0.0%
Benesse Holdings, Inc.		2,000		92,167
Oriental Land Co., Ltd.		1,000		104,028

				196,195


Diversified Financials 0.4%
Acom Co., Ltd. *		400		8,421
Credit Saison Co., Ltd.		29,100		583,150
Daiwa Securities Group, Inc.		130,000		541,265
Mitsubishi UFJ Lease & Finance Co., Ltd.		5,820		249,511
Nomura Holdings, Inc.		261,900		1,213,399
ORIX Corp.		5,820		563,017

				3,158,763


Energy 0.3%
Cosmo Oil Co., Ltd.		30,000		87,843
Inpex Corp.		155		1,104,954
JX Holdings, Inc.		119,800		754,855
Showa Shell Sekiyu K.K.		29,100		197,020
TonenGeneral Sekiyu KK		15,000		139,363

				2,284,035


Food & Staples Retailing 0.3%
Aeon Co., Ltd.		58,200		742,061
Seven & i Holdings Co., Ltd.		58,200		1,614,989

				2,357,050


Food, Beverage & Tobacco 0.6%
Ajinomoto Co., Inc.		27,000		319,570
Asahi Breweries Ltd.		29,100		639,236
Japan Tobacco, Inc.		291		1,553,150
Kagome Co., Ltd.		29,100		572,365
Kewpie Corp.		29,100		402,669
Kirin Holdings Co., Ltd.		35,000		413,393
Sapporo Holdings Ltd.		10,000		37,188
Toyo Suisan Kaisha Ltd.		2,000		51,569
Yakult Honsha Co., Ltd.		9,000		279,318

				4,268,458


Health Care Equipment & Services 0.1%
Medipal Holdings Corp.		8,900		107,429
Miraca Holdings, Inc.		2,100		80,560
Nipro Corp. (a)		4,000		30,689
Olympus Corp.		29,100		488,595
Suzuken Co., Ltd.		2,100		62,139

See financial notes 21

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Terumo Corp.		6,100		295,052

				1,064,464


Household & Personal Products 0.2%
Kao Corp.		29,100		747,454
Lion Corp.		11,000		62,787
Shiseido Co., Ltd.		14,200		247,544
Unicharm Corp.		4,100		213,003

				1,270,788


Insurance 0.5%
Sony Financial Holdings, Inc.		58,200		1,069,229
T&D Holdings, Inc.		58,200		682,380
The Dai-ichi Life Insurance Co., Ltd.		432		570,022
Tokio Marine Holdings, Inc.		58,200		1,614,270

				3,935,901


Materials 1.3%
Asahi Kasei Corp.		60,000		381,764
Hitachi Chemical Co., Ltd.		29,100		539,648
JFE Holdings, Inc.		32,200		696,593
JSR Corp.		29,100		613,710
Kobe Steel Ltd.		291,000		506,931
Kuraray Co. Ltd.		29,100		421,364
Mitsubishi Chemical Holdings Corp.		145,500		841,290
Nippon Paper Group, Inc. (a)		4,500		96,905
Nippon Steel Corp.		291,000		841,290
Nissan Chemical Industries Ltd.		11,200		112,083
Nisshin Steel Co., Ltd.		4,000		6,919
Nitto Denko Corp.		24,600		1,015,122
Shin-Etsu Chemical Co., Ltd.		29,100		1,565,734
Showa Denko K.K.		291,000		661,527
Sumitomo Chemical Co., Ltd.		20,000		86,978
Sumitomo Metal Industries Ltd.		291,000		607,598
Sumitomo Metal Mining Co., Ltd.		22,000		327,527
Tokyo Steel Manufacturing Co., Ltd.		29,100		245,196
Toray Industries, Inc.		50,000		357,055

				9,925,234


Media 0.2%
Dentsu, Inc.		29,100		907,802
Hakuhodo DY Holdings, Inc.		5,820		356,290
SKY Perfect JSAT Holdings, Inc.		131		61,421

				1,325,513


Pharmaceuticals, Biotechnology & Life Sciences 0.8%
Astellas Pharma, Inc.		29,100		1,200,815
Chugai Pharmaceutical Co., Ltd.		29,100		478,169
Daiichi Sankyo Co., Ltd.		29,100		536,772
Dainippon Sumitomo Pharma Co., Ltd.		29,100		303,080
Eisai Co., Ltd.		29,100		1,182,839
Kissei Pharmaceutical Co., Ltd.		1,700		33,248
Otsuka Holdings Co., Ltd.		29,100		820,797
Shionogi & Co., Ltd.		29,100		404,466
Takeda Pharmaceutical Co., Ltd.		29,100		1,319,459

				6,279,645


Real Estate 0.5%
Daito Trust Construction Co., Ltd.		3,800		336,150
Daiwa House Industry Co., Ltd.		22,000		285,125
Mitsubishi Estate Co., Ltd.		54,000		980,726
Mitsui Fudosan Co., Ltd.		45,000		857,302
NTT Urban Development Corp.		291		234,411
Sumitomo Real Estate Sales Co., Ltd.		2,910		129,070
Sumitomo Realty & Development Co., Ltd.		30,000		702,743
Tokyo Tatemono Co., Ltd. *		1,000		4,089

				3,529,616


Retailing 0.4%
Aoyama Trading Co., Ltd.		4,100		76,691
DeNA Co., Ltd.		1,900		62,089
Fast Retailing Co., Ltd.		2,000		415,864
Isetan Mitsukoshi Holdings Ltd.		58,200		657,932
J Front Retailing Co., Ltd.		34,000		172,226
Komeri Co., Ltd.		1,000		28,997
Marui Group Co., Ltd.		29,100		238,006
Point, Inc.		2,910		109,835
USS Co., Ltd.		2,910		286,182
Yamada Denki Co., Ltd.		11,640		757,880

				2,805,702


Semiconductors & Semiconductor Equipment 0.1%
Tokyo Electron Ltd.		19,400		1,080,974


Software & Services 0.4%
KONAMI Corp.		29,100		803,180
Nintendo Co., Ltd.		4,000		593,032
Nomura Research Institute Ltd.		29,100		694,963
NTT Data Corp.		100		338,399
Square Enix Holdings Co., Ltd.		3,900		76,420
Trend Micro, Inc.		2,800		82,125
Yahoo! Japan Corp.		873		277,194

				2,865,313


Technology Hardware & Equipment 1.6%
Alps Electric Co., Ltd.		29,100		261,375
Brother Industries Ltd.		29,100		377,861
Canon, Inc.		87,300		3,969,162
FUJIFILM Holdings Corp.		29,100		739,544
Fujitsu Ltd.		31,000		168,903
Hamamatsu Photonics KK		2,100		75,137
Hitachi Ltd.		291,000		1,700,556
Hoya Corp.		29,100		680,222
Keyence Corp.		1,000		263,405
Konica Minolta Holdings, Inc.		10,000		84,754
Kyocera Corp.		10,500		932,728
Murata Manufacturing Co., Ltd.		29,100		1,741,902
NEC Corp. *		82,000		161,082
Nippon Electric Glass Co., Ltd.		10,000		93,897
OMRON Corp.		29,100		647,146
Ricoh Co., Ltd.		15,000		138,436
Seiko Epson Corp.		5,200		70,670
Toshiba Corp.		55,000		241,908

				12,348,688


Telecommunication Services 0.7%
KDDI Corp.		174		1,109,266
Nippon Telegraph & Telephone Corp.		29,100		1,378,781
NTT DoCoMo, Inc.		923		1,582,807
SOFTBANK Corp.		42,100		1,259,255

				5,330,109


Transportation 0.8%
All Nippon Airways Co., Ltd. (a)		291,000		895,219
Central Japan Railway Co.		152		1,252,582
East Japan Railway Co.		29,100		1,873,128
Tobu Railway Co., Ltd.		10,000		52,261
Tokyu Corp.		192,000		927,502

22 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
West Japan Railway Co.		29,100		1,191,827

				6,192,519


Utilities 0.5%
Chubu Electric Power Co., Inc.		33,100		609,737
Electric Power Development Co., Ltd.		11,000		282,271
Hokkaido Electric Power Co., Inc.		3,000		44,514
Kyushu Electric Power Co., Inc.		29,100		429,633
Osaka Gas Co., Ltd.		92,000		354,633
Shikoku Electric Power Co., Inc.		8,500		235,026
The Chugoku Electric Power Co., Inc.		29,100		529,941
The Kansai Electric Power Co., Inc.		29,100		483,921
The Tokyo Electric Power Co., Inc. *		87,300		242,680
Toho Gas Co., Ltd.		20,000		117,124
Tohoku Electric Power Co., Inc.		16,000		188,980
Tokyo Gas Co., Ltd.		100,000		458,364

				3,976,824

				129,008,722

Luxembourg 0.3%


Energy 0.1%
Tenaris S.A.		24,444		477,401


Materials 0.1%
ArcelorMittal		68,385		1,447,649


Media 0.1%
SES		19,497		472,199


Retailing 0.0%
L’Occitane International S.A.		15,500		36,853

				2,434,102

Macau 0.0%


Consumer Services 0.0%
Wynn Macau Ltd.		80,000		210,942

Netherlands 3.8%


Capital Goods 0.2%
Koninklijke (Royal) Philips Electronics N.V.		63,438		1,336,985


Commercial & Professional Services 0.1%
Randstad Holding N.V.		11,349		431,156


Diversified Financials 0.3%
ING Groep N.V. CVA *		245,107		2,183,022


Energy 1.8%
Fugro N.V. CVA		4,947		364,762
Royal Dutch Shell plc, A Shares		210,393		7,684,747
Royal Dutch Shell plc, B Shares		151,320		5,631,007
SBM Offshore N.V.		9,603		174,962

				13,855,478


Food & Staples Retailing 0.1%
Koninklijke Ahold N.V.		69,840		969,751


Food, Beverage & Tobacco 0.5%
Heineken Holding N.V.		4,365		195,608
Heineken N.V.		16,005		848,474
Unilever N.V. CVA		89,337		2,979,286

				4,023,368


Insurance 0.1%
AEGON N.V. *		117,273		616,523


Materials 0.2%
Akzo Nobel N.V.		13,386		762,367
Koninklijke DSM N.V.		10,767		601,326

				1,363,693


Media 0.1%
Reed Elsevier N.V.		40,449		501,208
Wolters Kluwer N.V.		17,460		326,403

				827,611


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
QIAGEN N.V. *		13,677		210,492


Real Estate 0.0%
Corio N.V.		4,656		224,656


Semiconductors & Semiconductor Equipment 0.2%
ASML Holding N.V.		23,280		1,074,387
STMicroelectronics N.V.		19,206		143,900

				1,218,287


Telecommunication Services 0.1%
Koninklijke (Royal) KPN N.V.		92,538		1,007,016


Transportation 0.1%
Koninklijke Vopak N.V.		1,455		81,552
TNT Express N.V.		20,370		254,805
TNT N.V.		8,730		51,909

				388,266

				28,656,304

New Zealand 0.1%


Consumer Services 0.0%
Sky City Entertainment Group Ltd.		103,014		326,599


Real Estate 0.0%
Kiwi Income Property Trust		148,410		127,017


Telecommunication Services 0.0%
Chorus Ltd. *		23,141		63,611
Telecom Corp. of New Zealand Ltd.		115,818		208,987

				272,598


Transportation 0.1%
Auckland International Airport Ltd.		168,780		342,268

				1,068,482

Norway 0.9%


Banks 0.1%
DnB NOR A.S.A.		61,158		789,544


Capital Goods 0.1%
Orkla A.S.A.		58,200		486,732


Energy 0.5%
Aker Solutions A.S.A.		6,111		106,601
Kvaerner A.S.A. *		15,132		43,018
Seadrill Ltd.		20,370		849,216
Statoil A.S.A.		81,480		2,345,698

				3,344,533


Insurance 0.0%
Storebrand A.S.A.		22,365		107,806

See financial notes 23

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.1%
Norsk Hydro A.S.A.		58,289		352,393
Yara International A.S.A.		14,550		717,584

				1,069,977


Telecommunication Services 0.1%
Telenor A.S.A.		52,089		968,160

				6,766,752

Papua N.Guinea 0.1%


Energy 0.1%
Oil Search Ltd.		90,501		680,562

Portugal 0.2%


Banks 0.0%
Banco Comercial Portugues S.A. - Reg’d *		304,968		69,352


Energy 0.0%
Galp Energia, SGPS, S.A., B Shares		19,788		346,498


Food & Staples Retailing 0.1%
Jeronimo Martins, SGPS, S.A. *		19,788		366,880


Telecommunication Services 0.0%
Portugal Telecom, SGPS, S.A. - Reg’d		33,174		172,227


Utilities 0.1%
EDP - Energias de Portugal S.A.		205,737		602,719

				1,557,676

Republic of Korea 5.0%


Automobiles & Components 0.5%
Halla Climate Control Corp.		250		5,207
Hankook Tire Co., Ltd.		5,820		222,921
Hyundai Mobis		3,904		994,561
Hyundai Motor Co.		9,312		1,797,932
Kia Motors Corp.		18,788		1,187,344

				4,207,965


Banks 0.5%
BS Financial Group, Inc.		4,800		59,854
DGB Financial Group, Inc.		1,200		16,143
Hana Financial Group, Inc.		5,250		185,133
Industrial Bank of Korea		3,300		38,347
KB Financial Group, Inc. ADR *		39,285		1,447,652
Shinhan Financial Group Co., Ltd. ADR *		22,989		1,785,326
Woori Finance Holdings Co., Ltd.		7,200		78,840

				3,611,295


Capital Goods 0.7%
CJ Corp.		1,000		74,192
Daelim Industrial Co., Ltd.		1,800		202,731
Daewoo Engineering & Construction Co., Ltd. *		7,000		66,325
Daewoo International Corp.		1,690		53,250
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		2,930		94,155
Doosan Corp.		1,746		267,661
Doosan Heavy Industries and Construction Co., Ltd.		2,150		135,681
Doosan Infracore Co., Ltd. *		4,610		93,335
GS Engineering & Construction Corp.		2,000		173,054
Hanjin Heavy Industries & Construction Co., Ltd. *		910		17,082
Hyundai Development Co.		4,000		88,494
Hyundai Engineering & Construction Co., Ltd.		4,409		333,811
Hyundai Heavy Industries Co., Ltd.		3,428		1,040,297
Hyundai Mipo Dockyard Co., Ltd.		620		86,455
KCC Corp.		300		96,270
LG Corp.		4,536		283,418
LS Corp.		1,683		129,829
Samsung C&T Corp.		9,000		619,455
Samsung Engineering Co., Ltd.		2,090		441,829
Samsung Heavy Industries Co., Ltd.		11,850		431,641
Samsung Techwin Co., Ltd.		3,201		183,409
SK Holdings Co., Ltd.		2,020		306,054
STX Corp.		3,200		42,477
STX Offshore & Shipbuilding Co., Ltd.		3,100		46,830

				5,307,735


Consumer Durables & Apparel 0.1%
LG Electronics, Inc.		6,330		483,213


Consumer Services 0.0%
Kangwon Land, Inc.		7,430		171,350


Diversified Financials 0.1%
Daewoo Securities Co., Ltd.		20,008		249,491
Hyundai Securities Co., Ltd.		9,000		88,896
Korea Investment Holdings Co., Ltd.		2,650		107,187
Samsung Securities Co., Ltd.		3,836		208,820
Woori Investment & Securities Co., Ltd.		5,000		62,794

				717,188


Energy 0.2%
GS Holdings		2,180		125,883
S-Oil Corp.		5,238		587,605
SK Innovation Co., Ltd.		3,972		658,612

				1,372,100


Food & Staples Retailing 0.0%
E-Mart Co., Ltd.		547		132,750
Shinsegae Co., Ltd.		352		82,594

				215,344


Food, Beverage & Tobacco 0.1%
CJ CheilJedang Corp.		500		143,691
KT&G Corp.		3,506		229,403
Lotte Confectionery Co., Ltd.		50		80,851

				453,945


Household & Personal Products 0.1%
Amorepacific Corp.		203		186,175
AMOREPACIFIC Group		700		153,925
LG Household & Health Care Ltd.		620		284,860

				624,960


Insurance 0.1%
Dongbu Insurance Co., Ltd.		3,650		159,380
Samsung Fire & Marine Insurance Co., Ltd.		2,330		439,456
Samsung Life Insurance Co., Ltd.		3,059		249,647

				848,483

24 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Materials 0.6%
Cheil Industries, Inc.		2,050		175,181
Dongkuk Steel Mill Co., Ltd.		1,980		44,601
Hanwha Chemical Corp.		5,040		125,693
Hanwha Corp.		4,090		129,238
Honam Petrochemical Corp.		1,026		324,659
Hyosung Corp.		1,350		80,248
Hyundai Steel Co.		2,037		208,484
Korea Zinc Co., Ltd.		611		239,490
LG Chem Ltd.		2,910		1,036,568
OCI Co., Ltd.		1,056		253,446
POSCO ADR		24,735		2,287,987
SKC Co., Ltd.		600		26,280

				4,931,875


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Celltrion, Inc.		3,089		96,641
Yuhan Corp.		434		46,359

				143,000


Retailing 0.1%
Hyundai Department Store Co., Ltd.		1,016		151,665
Lotte Midopa Co., Ltd.		5,500		81,857
Lotte Shopping Co., Ltd.		582		196,129

				429,651


Semiconductors & Semiconductor Equipment 1.3%
Hynix Semiconductor, Inc. *		18,800		507,506
Samsung Electronics Co., Ltd. GDR - Reg’d		16,978		9,202,076

				9,709,582


Software & Services 0.1%
Daum Communications Corp.		376		37,878
NCsoft Corp.		1,050		259,983
NHN Corp.		2,910		607,375
SK C&C Co. Ltd.		1,000		112,181

				1,017,417


Technology Hardware & Equipment 0.2%
LG Display Co., Ltd. ADR *		71,877		945,901
Samsung Electro-Mechanics Co., Ltd.		1,550		129,961
Samsung SDI Co., Ltd.		1,000		123,355

				1,199,217


Telecommunication Services 0.1%
KT Corp. ADR		20,079		295,362
LG Uplus Corp.		12,400		70,273
SK Telecom Co., Ltd. ADR		32,883		475,159

				840,794


Transportation 0.1%
Hanjin Shipping Co., Ltd. *		4,500		69,387
Hyundai Glovis Co., Ltd.		500		82,907
Hyundai Merchant Marine Co., Ltd. *		3,567		99,798
Korea Express Co., Ltd. *		1,164		85,319
Korean Air Lines Co., Ltd. *		2,299		108,505

				445,916


Utilities 0.1%
Korea Electric Power Corp. ADR *		82,644		921,481

				37,652,511

Singapore 1.5%


Banks 0.4%
DBS Group Holdings Ltd.		30,000		341,634
Oversea-Chinese Banking Corp., Ltd.		291,000		2,095,657
United Overseas Bank Ltd.		25,000		361,883

				2,799,174


Capital Goods 0.2%
Keppel Corp., Ltd.		40,000		354,465
Singapore Technologies Engineering Ltd.		291,000		742,115
Yangzijiang Shipbuilding Holdings Ltd.		338,000		368,643

				1,465,223


Consumer Services 0.0%
Hotel Properties Ltd.		38,000		58,206


Food & Staples Retailing 0.1%
Olam International Ltd.		154,772		295,407


Food, Beverage & Tobacco 0.2%
Golden Agri-Resources Ltd. (a)		582,000		340,719
Indofood Agri Resources Ltd. *		37,000		47,921
People’s Food Holdings Ltd. *		291,000		148,190
Wilmar International Ltd.		291,000		1,192,518

				1,729,348


Media 0.0%
Singapore Press Holdings Ltd.		24,000		72,946


Real Estate 0.3%
CapitaCommercial Trust		291,000		276,542
Capitaland Ltd.		291,000		718,778
CapitaMall Trust		291,000		420,065
Keppel Land Ltd.		33,000		90,509
Wheelock Properties Singapore Ltd.		16,000		21,043
Wing Tai Holdings Ltd.		412,000		421,268
Yanlord Land Group Ltd. (a)		371,000		410,586

				2,358,791


Retailing 0.0%
Jardine Cycle & Carriage Ltd.		5,000		191,628


Telecommunication Services 0.2%
Singapore Telecommunications Ltd.		582,000		1,479,562


Transportation 0.1%
ComfortDelGro Corp., Ltd.		291,000		357,055
Neptune Orient Lines Ltd. (a)		291,000		312,715
Singapore Post Ltd.		291,000		226,368

				896,138

				11,346,423

Spain 2.7%


Banks 0.9%
Banco Bilbao Vizcaya Argentaria S.A.		257,244		2,315,551
Banco de Sabadell S.A. (a)		76,019		247,108
Banco Popular Espanol S.A. (a)		69,881		288,011
Banco Santander S.A.		506,340		4,217,739

				7,068,409


Capital Goods 0.1%
ACS, Actividades de Construccion y Servicios S.A. (a)		15,714		469,496

See financial notes 25

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Zardoya Otis S.A. (a)		8,776		118,805

				588,301


Diversified Financials 0.1%
Corporacion Financiera Alba S.A.		2,328		103,577
Criteria Caixacorp S.A. (a)		77,988		369,413

				472,990


Energy 0.3%
Repsol YPF S.A.		71,877		1,881,652


Food & Staples Retailing 0.0%
Distribuidora Internacional de Alimentacion S.A. *		41,904		205,722


Insurance 0.0%
Mapfre S.A.		62,295		215,080


Materials 0.0%
Acerinox S.A. (a)		13,968		200,210


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Grifols S.A. *		13,968		291,486


Retailing 0.2%
Industria de Diseno Textil S.A.		14,841		1,375,997


Software & Services 0.0%
Amadeus IT Holding S.A.		10,185		194,830
Indra Sistemas S.A. (a)		9,312		118,886

				313,716


Telecommunication Services 0.6%
Telefonica S.A.		261,027		4,472,941


Transportation 0.1%
Abertis Infraestructuras S.A.		21,825		374,430
Ferrovial S.A.		29,391		373,505

				747,935


Utilities 0.4%
Enagas		13,095		269,677
Gas Natural SDG S.A.		31,137		528,980
Iberdrola S.A.		316,676		1,881,708

				2,680,365

				20,514,804

Sweden 2.8%


Banks 0.6%
Nordea Bank AB		185,658		1,801,326
Skandinaviska Enskilda Banken AB, A Shares		124,257		935,561
Svenska Handelsbanken AB, A Shares		34,629		1,170,151
Swedbank AB, A Shares		39,285		676,287

				4,583,325


Capital Goods 1.0%
AB SKF, B Shares		31,137		792,193
Alfa Laval AB		30,555		631,480
Assa Abloy AB, B Shares		27,936		853,922
Atlas Copco AB, A Shares		42,195		1,107,541
Atlas Copco AB, B Shares		25,317		590,603
Hexagon AB, B Shares		11,931		241,316
Sandvik AB		54,126		832,176
Scania AB, B Shares		25,026		504,653
Skanska AB, B Shares		25,317		464,705
Volvo AB, B Shares		85,554		1,256,177

				7,274,766


Commercial & Professional Services 0.0%
Securitas AB, B Shares		28,809		278,640


Consumer Durables & Apparel 0.0%
Electrolux AB, Series B		11,640		257,203


Diversified Financials 0.2%
Industrivarden AB, A Shares		16,878		271,046
Investor AB, B Shares		34,338		769,194
Kinnevik Investment AB, B Shares		8,148		186,857

				1,227,097


Energy 0.0%
Lundin Petroleum AB *		10,185		239,148


Food, Beverage & Tobacco 0.1%
Swedish Match AB		22,407		861,087


Health Care Equipment & Services 0.1%
Elekta AB, B Shares		2,037		96,031
Getinge AB, B Shares		12,222		351,473

				447,504


Materials 0.1%
Boliden AB		11,058		194,903
Holmen AB, B Shares		8,730		255,168
Svenska Cellulosa AB, B Shares		33,465		601,542

				1,051,613


Media 0.0%
Modern Times Group, B Shares		2,328		114,564


Retailing 0.2%
Hennes & Mauritz AB, B Shares		35,211		1,273,351


Technology Hardware & Equipment 0.3%
Telefonaktiebolaget LM Ericsson, B Shares		186,531		1,884,968


Telecommunication Services 0.2%
Tele2 AB, B Shares		26,481		542,450
TeliaSonera AB		134,733		989,235

				1,531,685

				21,024,951

Switzerland 6.8%


Capital Goods 0.6%
ABB Ltd. - Reg’d *		149,283		3,069,014
Geberit AG - Reg’d *		3,492		752,785
Schindler Holding AG		3,492		432,212
Schindler Holding AG - Reg’d		4,947		604,063
Sulzer AG - Reg’d		873		125,884

				4,983,958


Commercial & Professional Services 0.2%
Adecco S.A. - Reg’d *		9,894		497,968
SGS S.A. - Reg’d		396		745,096

				1,243,064


Consumer Durables & Apparel 0.4%
Compagnie Financiere Richemont S.A., A Shares		32,883		2,027,697
Swatch Group AG		2,037		927,543
Swatch Group AG - Reg’d		4,947		394,837

				3,350,077

26 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.7%
Credit Suisse Group AG - Reg’d *		66,348		1,790,442
GAM Holding Ltd. *		11,058		146,687
Julius Baer Group Ltd. *		15,714		618,373
Pargesa Holding S.A.		1,455		108,457
UBS AG - Reg’d *		220,578		3,097,421

				5,761,380


Energy 0.1%
Transocean Ltd.		11,640		623,057


Food, Beverage & Tobacco 1.6%
Lindt & Spruengli AG		2		73,064
Nestle S.A. - Reg’d		201,081		12,343,653

				12,416,717


Health Care Equipment & Services 0.0%
Sonova Holding AG - Reg’d *		2,619		293,633


Insurance 0.5%
Baloise Holding AG - Reg’d		2,619		206,997
Swiss Re Ltd. *		22,116		1,318,343
Zurich Financial Services AG *		8,148		2,060,403

				3,585,743


Materials 0.6%
Givaudan S.A. - Reg’d *		873		828,083
Glencore International plc		34,920		240,982
Holcim Ltd. - Reg’d *		12,513		819,523
Syngenta AG - Reg’d *		7,275		2,382,333

				4,270,921


Pharmaceuticals, Biotechnology & Life Sciences 1.9%
Lonza Group AG - Reg’d *		4,656		242,969
Novartis AG - Reg’d		130,950		7,164,928
Roche Holding AG		38,703		6,766,634

				14,174,531


Telecommunication Services 0.1%
Swisscom AG - Reg’d		1,746		698,516


Transportation 0.1%
Kuehne & Nagel International AG - Reg’d		2,910		384,727

				51,786,324

United Kingdom 16.5%


Banks 2.3%
Barclays plc		713,532		2,792,586
HSBC Holdings plc		1,028,976		9,127,671
Lloyds Banking Group plc *		2,104,512		1,174,463
Royal Bank of Scotland Group plc *		1,147,122		511,625
Standard Chartered plc		139,729		3,610,422

				17,216,767


Capital Goods 0.7%
BAE Systems plc		196,425		981,187
Bunzl plc		15,714		241,484
Cobham plc		56,745		169,873
European Aeronautic Defence & Space Co.		20,661		753,556
IMI plc		8,730		135,134
Invensys plc		44,814		148,975
Meggitt plc		29,100		179,621
Rolls-Royce Holdings plc *		102,723		1,335,731
Smiths Group plc		18,042		313,574
The Weir Group plc		8,730		293,697
Wolseley plc		18,915		736,056

				5,288,888


Commercial & Professional Services 0.2%
Aggreko plc		4,487		158,622
Capita Group plc		36,375		445,682
G4S plc		82,644		381,801
Hays plc		89,919		115,703
Rentokil Initial plc *		129,786		161,715

				1,263,523


Consumer Durables & Apparel 0.1%
Burberry Group plc		28,809		649,815


Consumer Services 0.4%
Carnival plc		16,587		489,663
Compass Group plc		130,950		1,317,872
Intercontinental Hotels Group plc		20,370		466,624
Ladbrokes plc		82,353		197,464
TUI Travel plc		57,327		181,322
Whitbread plc		17,169		465,429
William Hill plc		67,512		242,116

				3,360,490


Diversified Financials 0.1%
3i Group plc		62,565		189,395
ICAP plc		48,597		298,725
Investec plc		14,550		92,971
London Stock Exchange Group plc		5,820		83,860
Man Group plc		106,797		223,319
Schroders plc		9,021		222,788
Schroders plc, Non-Voting Shares		5,820		113,983

				1,225,041


Energy 2.0%
AMEC plc		19,206		339,328
BG Group plc		201,372		4,881,517
BP plc		1,088,340		8,560,708
Cairn Energy plc *		27,506		151,240
John Wood Group plc		582		7,047
Petrofac Ltd.		3,783		96,146
Subsea 7 S.A. *		11,931		288,306
Tullow Oil plc		52,089		1,227,341

				15,551,633


Food & Staples Retailing 0.5%
J Sainsbury plc		114,072		543,575
Tesco plc		471,420		2,380,453
William Morrison Supermarkets plc		153,648		711,790

				3,635,818


Food, Beverage & Tobacco 2.3%
Associated British Foods plc		21,534		412,106
British American Tobacco plc		116,400		5,907,412
Diageo plc		145,500		3,494,568
Imperial Tobacco Group plc		57,618		2,292,762
SABMiller plc		69,258		2,818,455
Tate & Lyle plc		32,010		356,662
Unilever plc		76,242		2,473,610

				17,755,575


Health Care Equipment & Services 0.1%
Smith & Nephew plc		57,909		571,691

See financial notes 27

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Household & Personal Products 0.3%
Reckitt Benckiser Group plc		46,560		2,588,328


Insurance 0.8%
Aviva plc		171,108		1,006,698
Legal & General Group plc		382,665		738,436
Old Mutual plc		343,380		872,715
Prudential plc		170,526		1,940,897
Resolution Ltd.		202,574		870,488
Standard Life plc		123,966		460,418

				5,889,652


Materials 2.4%
Anglo American plc		81,771		3,460,910
Antofagasta plc		15,132		321,496
BHP Billiton plc		131,532		4,281,107
Eurasian Natural Resources Corp.		24,444		273,532
Fresnillo plc		11,931		362,505
Johnson Matthey plc		11,931		439,885
Kazakhmys plc		18,624		329,937
Lonmin plc		12,804		225,605
Randgold Resources Ltd.		4,947		568,986
Rexam plc		60,237		399,432
Rio Tinto plc		84,099		4,814,885
Vedanta Resources plc		9,312		214,206
Xstrata plc		136,188		2,610,641

				18,303,127


Media 0.5%
Aegis Group plc		43,113		118,940
British Sky Broadcasting Group plc		67,221		719,460
Daily Mail & General Trust plc, A Shares		12,804		87,951
ITV plc		265,974		365,184
Pearson plc		41,322		791,458
Reed Elsevier plc		60,819		534,840
WPP plc		71,004		911,372

				3,529,205


Pharmaceuticals, Biotechnology & Life Sciences 1.2%
AstraZeneca plc		86,136		3,863,061
GlaxoSmithKline plc		247,350		5,480,440

				9,343,501


Real Estate 0.3%
British Land Co. plc		79,734		599,026
Capital Shopping Centres Group		62,856		334,062
Hammerson plc		61,692		386,118
Land Securities Group plc		45,687		492,633
SEGRO plc		57,327		215,206

				2,027,045


Retailing 0.2%
Kingfisher plc		121,056		549,588
Marks & Spencer Group plc		82,062		475,856
Next plc		9,312		412,199

				1,437,643


Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings plc		73,914		672,431


Software & Services 0.1%
Logica plc		98,067		134,803
The Sage Group plc		74,787		371,069

				505,872


Telecommunication Services 1.2%
BT Group plc		434,754		1,493,170
Inmarsat plc		25,317		193,963
Vodafone Group plc		2,748,786		7,436,236

				9,123,369


Utilities 0.7%
Centrica plc		280,524		1,362,293
International Power plc		92,538		511,326
National Grid plc		184,847		1,894,245
Scottish & Southern Energy plc		49,761		1,025,430
Severn Trent plc		12,804		322,146
United Utilities Group plc		32,010		312,687

				5,428,127

				125,367,541

United States 0.1%


Health Care Equipment & Services 0.1%
Synthes, Inc. (b)		4,365		758,793

Total Common Stock
(Cost $736,060,508)				750,212,140




Preferred Stock 0.4% of net assets

Germany 0.4%


Automobiles & Components 0.3%
Porsche Automobil Holding SE		8,439		551,629
Volkswagen AG		9,312		1,748,292

				2,299,921


Household & Personal Products 0.1%
Henkel AG & Co. KGaA		8,730		570,476

				2,870,397

Italy 0.0%


Diversified Financials 0.0%
EXOR S.p.A.		873		18,802

Total Preferred Stock
(Cost $2,310,152)				2,889,199




Other Investment Company 0.1% of net assets

Money Market Fund 0.1%
State Street Institutional U.S. Government Money Market Fund		507,296		507,296

Total Other Investment Company
(Cost $507,296)				507,296



End of Investments

28 See financial notes

Schwab International Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Collateral Invested for Securities on Loan 0.3% of net assets


State Street Institutional U.S. Government Money Market Fund		2,281,438		2,281,438

Total Collateral Invested for Securities on Loan
(Cost $2,281,438)				2,281,438



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $739,049,213 and the unrealized appreciation and depreciation were $61,221,158 and ($46,661,736), respectively, with a net unrealized appreciation of $14,559,422.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $758,793 or 0.1% of net assets.


ADR —		American Depositary Receipt
CVA —		Dutch Certificate
GDR —		Global Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
RSP —		Risparmio (Convertible Savings Shares)

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$750,212,140		$—		$—		$750,212,140
Preferred Stock(a)		2,889,199		—		—		2,889,199
Other Investment Company(a)		507,296		—		—		507,296

Total		$753,608,635		$—		$—		$753,608,635

Other Financial Instruments
Collateral Invested for Securities on Loan		$2,281,438		$—		$—		$2,281,438


(a)		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance				Change in												Balance
	as of		Realized		Unrealized							Gross		Gross			as of
	August 31,		Gain		Gains		Gross		Gross			Transfers		Transfers			February 29,
Investments in Securities	2011		(Loss)		(Losses)		Purchases		Sales			in*		out*			2012

Common Stock
Australia		$9,160		$—		$—		$—		$—			$—		($9,160	)		$—
Japan		199,871		—		31,463		—		(231,334	)		—		—			—

Total		$209,031		$—		$31,463		$—		($231,334	)		$—		($9,160	)		$—


*		All security transfers in and out of Level 3 from Level 1 or Level 2 were the result of fair valued securities for which no quoted value was available.

There were no significant transfers between Level 1 and Level 2 for the period ended February 29, 2012.

See financial notes 29

Schwab International Equity ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $738,877,956) including securities on loan of $2,667,721		$753,608,635
Collateral invested for securities on loan		2,281,438
Foreign currency, at value (cost $4,418,508)		4,432,211
Receivables:
Dividends		2,013,073
Foreign tax reclaims		280,847
Income from securities on loan	+	4,203

Total assets		762,620,407

Liabilities

Collateral held for securities on loan		2,281,438
Payables:
Investments bought		2,908,548
Investment adviser fees	+	8,063

Total liabilities		5,198,049

Net Assets

Total assets		762,620,407
Total liabilities	−	5,198,049

Net assets		$757,422,358

Net Assets by Source
Capital received from investors		760,697,366
Net investment income not yet distributed		1,600,835
Net realized capital losses		(19,632,158	)
Net unrealized capital gains		14,756,315

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$757,422,358

29,100,001

$26.03

30 See financial notes

Schwab International Equity ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (net of foreign withholding tax of $603,073)		$7,784,366
Interest		1,932
Securities on loan	+	73,799

Total investment income		7,860,097

Expenses

Investment adviser fees		410,233

Total expenses	−	410,233

Net investment income		7,449,864

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(13,667,483	)
Net realized losses on foreign currency transactions	+	(184,177	)

Net realized losses		(13,851,660	)
Net unrealized gains on investments		35,139,405
Net unrealized losses on foreign currency translations	+	(38,324	)

Net unrealized gains	+	35,101,081

Net realized and unrealized gains		21,249,421

Net increase in net assets resulting from operations		$28,699,285

See financial notes 31

Schwab International Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$7,449,864			$16,338,245
Net realized losses		(13,851,660	)		(3,996,445	)
Net unrealized gains (losses)	+	35,101,081			(1,919,270	)

Net increase in net assets resulting from operations		28,699,285			10,422,530

Distributions to Shareholders

Distributions from net investment income		($19,440,540	)		($7,027,040	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

4,700,000

$113,955,917

12,400,000

$344,943,232

Shares Redeemed

—

Net transactions in fund shares

4,700,000

$113,955,917

12,400,000

$344,943,232

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

24,400,001

$634,207,696

12,000,001

$285,868,974

Total increase

4,700,000

123,214,662

12,400,000

348,338,722

End of period

29,100,001

$757,422,358

24,400,001

$634,207,696

Net investment income not yet distributed

$1,600,835

$13,591,511

32 See financial notes

Schwab International Small-Cap Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			1/13/10¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		27.48			23.54			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.23			0.72			0.21
Net realized and unrealized gains (losses)		(0.32	)		3.88			(1.67	)

Total from investment operations		(0.09	)		4.60			(1.46	)
Less distributions:
Distributions from net investment income		(0.82	)		(0.66	)		—

Net asset value at end of period		26.57			27.48			23.54

Total return (%)		0.23	²		19.52			(5.84	)²

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.35	³		0.35			0.35	³
Gross operating expenses		0.35	³		0.35			0.35	³
Net investment income (loss)		1.69	³		2.46			2.18	³
Portfolio turnover rate⁴		17	²		18			7	²
Net assets, end of period ($ x 1,000)		170,028			162,139			58,848

* Unaudited.

¹ Commencement of operations.

² Not annualized.

³ Annualized.

⁴ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 33

Schwab International Small-Cap Equity ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	98	.7%	Common Stock		164,701,242		167,869,089
	0	.3%	Other Investment Companies		523,498		571,882
	0	.5%	Preferred Stock		699,802		762,370
	0	.0%	Rights		—		480


	99	.5%	Total Investments		165,924,542		169,203,821
	3	.9%	Collateral Invested for Securities on Loan		6,627,995		6,627,995
	(3	.4)%	Other Assets and Liabilities, Net				(5,803,355	)


	100	.0%	Net Assets				170,028,461


	Number		Value
Security	of Shares		($)

Common Stock 98.7% of net assets

Australia 8.0%


Capital Goods 0.9%
Ausdrill Ltd.		16,000		68,630
Boart Longyear Ltd.		82,451		383,062
Bradken Ltd.		22,713		204,666
Emeco Holdings Ltd.		56,740		65,903
Macmahon Holdings Ltd. *		206,517		182,968
Monadelphous Group Ltd.		9,565		246,788
NRW Holdings Ltd.		41,000		169,663
UGL Ltd.		17,742		234,824

				1,556,504


Commercial & Professional Services 0.8%
Cabcharge Australia Ltd.		27,104		166,043
Campbell Brothers Ltd.		6,144		394,049
Mineral Resources Ltd.		6,400		91,277
SAI Global Ltd.		37,841		193,796
Seek Ltd.		35,848		262,216
Transfield Services Ltd.		72,793		191,904

				1,299,285


Consumer Durables & Apparel 0.1%
G.U.D. Holdings Ltd. (a)		19,018		152,055


Consumer Services 0.3%
Invocare Ltd.		36,169		309,895
Navitas Ltd. (a)		34,165		121,446

				431,341


Diversified Financials 0.1%
FlexiGroup Ltd.		47,835		111,636


Energy 0.7%
Aurora Oil & Gas Ltd. *(a)		96,000		337,100
AWE Ltd. *		83,941		155,540
Beach Energy Ltd.		65,551		110,841
Coalspur Mines Ltd. *(a)		57,232		96,465
Dart Energy Ltd. *		74,865		31,951
Karoon Gas Australia Ltd. *		33,648		219,584
Linc Energy Ltd. *		130,357		209,858
Nexus Energy Ltd. *		72,960		16,160

				1,177,499


Food, Beverage & Tobacco 0.2%
Australian Agricultural Co., Ltd. *		34,165		50,018
GrainCorp Ltd.		44,183		378,081

				428,099


Health Care Equipment & Services 0.2%
Primary Health Care Ltd.		95,670		323,537
Sigma Pharmaceuticals Ltd.		50,880		33,534

				357,071


Materials 2.1%
Ampella Mining Ltd. *(a)		27,335		42,086
Atlas Iron Ltd.		94,769		326,634
Bathurst Resources Ltd. *(a)		89,614		77,943
Beadell Resources Ltd. *		48,823		41,146
Centamin plc *		92,391		134,012
Coal of Africa Ltd. *(a)		97,013		111,107
Discovery Metals Ltd. *		48,000		82,201
Flinders Mines Ltd. *		192,896		61,482
Gindalbie Metals Ltd. *		152,626		114,609
Gryphon Minerals Ltd. *(a)		47,835		59,953
Independence Group NL (a)		31,725		153,905
Integra Mining Ltd. *		145,385		91,107
Intrepid Mines Ltd. *		60,597		86,423
Kingsgate Consolidated Ltd. (a)		23,915		177,255
Medusa Mining Ltd.		32,548		226,121
Mirabela Nickel Ltd. *		102,505		111,305
Mount Gibson Iron Ltd.		149,013		203,666
OceanaGold Corp. *		27,200		69,315
PanAust Ltd. *		84,288		331,491
Perseus Mining Ltd. *		85,214		264,239
Ramelius Resources Ltd. *		16,630		19,585
Regis Resources Ltd. *		52,610		246,128
Resolute Mining Ltd. *		70,400		158,213
Sandfire Resources NL *(a)		15,189		135,390
St. Barbara Ltd. *		54,697		136,515
Sundance Resources Ltd. *		418,735		192,280

				3,654,111


Media 0.1%
Austar United Communications Ltd. *		117,792		171,812


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Acrux Ltd.		9,253		37,890
Mesoblast Ltd. *(a)		37,632		310,232
Pharmaxis Ltd. *(a)		44,800		50,341

				398,463


Real Estate 0.9%
Abacus Property Group *		70,059		146,092
Aspen Group		64,000		34,229
BWP Trust		116,664		229,410
Centro Retail Australia *		134,529		271,081
Challenger Diversified Property Group		102,505		58,145

34 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Charter Hall Group		47,835		111,119
Charter Hall Retail REIT		65,888		223,533
FKP Property Group		199,650		118,642
Investa Office Fund		488,323		329,755

				1,522,006


Retailing 0.6%
Automotive Holdings Group Ltd.		54,625		138,696
David Jones Ltd. (a)		71,488		208,546
JB Hi-Fi Ltd. (a)		11,095		136,659
Myer Holdings Ltd. (a)		82,005		199,355
Pacific Brands Ltd.		181,376		140,117
Super Retail Group Ltd. (a)		16,000		121,356
Wotif.com Holdings Ltd.		18,797		93,422

				1,038,151


Software & Services 0.2%
carsales.com.au Ltd. (a)		15,937		88,334
Iress Market Technology Ltd.		29,760		228,617

				316,951


Telecommunication Services 0.1%
TPG Telecom Ltd.		62,600		106,527


Transportation 0.1%
Virgin Australia Holdings Ltd. *		353,113		162,146


Utilities 0.4%
APA Group (a)		64,000		339,521
Energy World Corp., Ltd. *		151,581		113,005
Spark Infrastructure Group		164,010		241,884

				694,410

				13,578,067

Austria 0.6%


Automobiles & Components 0.1%
Semperit AG Holding		2,680		119,382


Capital Goods 0.1%
Wienerberger AG		17,792		220,153


Energy 0.1%
Schoeller-Bleckmann Oilfield Equipment AG		1,637		148,469


Materials 0.0%
Mayr Melnhof Karton AG		680		67,440


Real Estate 0.2%
CA Immobilien Anlagen AG *		15,246		159,159
Conwert Immobilien Invest SE		14,723		166,679
S IMMO AG *		6,400		37,481

				363,319


Transportation 0.1%
Oesterreichische Post AG		4,583		151,796

				1,070,559

Belgium 1.1%


Consumer Durables & Apparel 0.0%
Van de Velde N.V.		832		42,460


Diversified Financials 0.4%
Ackermans & van Haaren N.V.		3,695		308,035
RHJ International *		21,067		124,562
Sofina S.A.		2,594		206,048

				638,645


Materials 0.3%
Nyrstar *		26,541		251,722
Tessenderlo Chemie N.V.		4,511		148,325

				400,047


Real Estate 0.2%
Befimmo S.C.A. Sicafi		2,325		149,754
Cofinimmo		1,664		201,447

				351,201


Retailing 0.1%
S.A. D’Ieteren N.V.		4,480		217,062


Technology Hardware & Equipment 0.1%
Barco N.V.		1,088		71,723
EVS Broadcast Equipment S.A.		2,702		146,205

				217,928

				1,867,343

Canada 20.9%


Automobiles & Components 0.1%
Linamar Corp.		7,200		134,504


Banks 0.4%
Canadian Western Bank		7,200		201,025
Genworth MI Canada, Inc.		7,200		158,335
Home Capital Group, Inc. (a)		7,200		361,115

				720,475


Capital Goods 0.8%
Aecon Group, Inc.		7,200		85,674
ATS Automation Tooling Systems, Inc. *		14,400		119,884
CAE, Inc.		40,800		441,574
Russel Metals, Inc. (a)		7,200		195,470
Superior Plus Corp.		12,800		100,456
Toromont Industries Ltd.		7,200		171,785
Westport Innovations, Inc. *(a)		6,400		260,951

				1,375,794


Commercial & Professional Services 0.6%
Progressive Waste Solutions Ltd.		14,000		289,680
Ritchie Bros. Auctioneers, Inc.		14,400		352,927
Stantec, Inc. *		7,200		213,526
Transcontinental, Inc., Class A		7,200		93,568

				949,701


Consumer Durables & Apparel 0.3%
Dorel Industries, Inc., Class B		6,400		174,986
Gildan Activewear, Inc.		14,400		361,553

				536,539


Diversified Financials 0.8%
AGF Management Ltd., Class B		7,200		112,062
Canaccord Financial, Inc. (a)		7,200		67,179
Dundee Corp., Class A *		7,200		177,341
GMP Capital, Inc.		6,400		59,130
Onex Corp.		15,700		579,415
TMX Group, Inc.		7,200		315,793

				1,310,920

See financial notes 35

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Energy 6.0%
Advantage Oil & Gas Ltd. *		21,600		83,992
AltaGas Ltd.		7,000		217,615
Athabasca Oil Sands Corp. *		54,000		673,252
Bankers Petroleum Ltd. *		34,000		168,455
Baytex Energy Corp. (a)		12,800		743,607
Birchcliff Energy Ltd. *		12,800		143,731
BlackPearl Resources, Inc. *		38,400		171,932
Bonavista Energy Corp.		12,800		298,898
Bonterra Energy Corp.		300		16,810
Calfrac Well Services Ltd.		7,200		236,333
Celtic Exploration Ltd. *		15,500		285,309
Crew Energy, Inc. *		7,200		96,785
Denison Mines Corp. *		68,000		133,936
Enerflex Ltd.		7,200		88,597
Enerplus Corp.		15,800		384,032
Ensign Energy Services, Inc.		14,400		257,751
Fairborne Energy Ltd. *		6,400		16,959
Gibson Energy, Inc.		6,400		138,598
Keyera Corp.		6,400		274,207
Legacy Oil & Gas, Inc. *		14,000		159,196
Mullen Group Ltd.		7,200		160,309
NAL Energy Corp.		6,400		49,643
Nuvista Energy Ltd. *		14,400		58,334
Paramount Resources Ltd., A Shares *		7,200		273,833
Pason Systems, Inc.		7,200		106,215
Pembina Pipeline Corp.		19,200		547,179
Pengrowth Energy Corp.		25,600		262,251
PetroBakken Energy Ltd., A Shares		6,800		111,153
Petrobank Energy & Resources Ltd. *		6,400		102,340
Petrominerales Ltd.		9,949		186,566
Peyto Exploration & Development Corp.		12,800		240,158
Precision Drilling Corp. *		28,000		340,566
Progress Energy Resources Corp.		35,800		393,638
Provident Energy Ltd.		19,200		231,971
Savanna Energy Services Corp. *		14,400		113,013
ShawCor Ltd., Class A		7,200		234,067
SouthGobi Resources Ltd. *		12,800		98,117
Tourmaline Oil Corp. *		12,800		334,246
Trican Well Service Ltd.		21,000		386,548
Trilogy Energy Corp.		8,000		259,099
Trinidad Drilling Ltd.		19,200		151,074
Uranium One, Inc. *		76,800		253,414
Veresen, Inc.		14,900		230,697
Vermilion Energy, Inc.		9,600		474,176

				10,188,602


Food & Staples Retailing 0.8%
Empire Co., Ltd., A Shares		6,800		393,453
Metro, Inc., A Shares		13,600		707,788
The Jean Coutu Group, Inc., A Shares		14,400		184,505

				1,285,746


Food, Beverage & Tobacco 0.5%
Cott Corp. *		14,400		94,738
Maple Leaf Foods, Inc.		14,400		165,353
Viterra, Inc.		51,600		560,556

				820,647


Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.		7,200		197,224


Materials 5.7%
Alamos Gold, Inc.		15,000		280,826
AuRico Gold, Inc. *		35,827		352,832
Aurizon Mines Ltd. *		21,600		115,133
B2Gold Corp. *		25,600		106,044
Banro Corp. *		12,800		69,656
Canfor Corp. *		14,400		166,376
Capstone Mining Corp. *		28,800		92,691
CCL Industries, Inc., Class B		7,200		263,161
Centerra Gold, Inc.		29,700		600,061
China Gold International Resources Corp., Ltd. *		21,000		92,319
Detour Gold Corp. *		12,800		352,830
Dundee Precious Metals, Inc. *		14,000		144,413
Eastern Platinum Ltd. *		85,400		49,422
First Majestic Silver Corp. *		6,400		131,970
Franco-Nevada Corp.		15,800		701,331
Gabriel Resources Ltd. *		21,600		132,677
Great Basin Gold Ltd. *		42,900		37,458
Harry Winston Diamond Corp. *		7,200		97,881
HudBay Minerals, Inc.		22,700		274,949
Imperial Metals Corp. *		14,000		234,388
Inmet Mining Corp.		8,800		600,217
Kirkland Lake Gold, Inc. *		6,800		114,743
Lake Shore Gold Corp. *		36,000		56,287
Lundin Mining Corp. *		48,300		254,017
Major Drilling Group International, Inc.		13,600		248,955
Mercator Minerals Ltd. *(a)		14,000		24,306
Methanex Corp.		14,400		453,513
Minefinders Corp. Ltd. *		7,200		112,428
Neo Material Technologies, Inc. *		6,400		56,596
Nevsun Resources Ltd.		12,800		53,152
New Gold, Inc. *		64,000		751,145
NovaGold Resources, Inc. *		28,800		239,476
Pan American Silver Corp.		15,400		386,974
Pretium Resources, Inc. *(a)		6,400		115,336
Quadra FNX Mining Ltd. *		32,000		487,010
Rubicon Minerals Corp. *		14,400		52,778
Seabridge Gold, Inc. *		6,400		152,958
SEMAFO, Inc.		34,400		231,906
Sherritt International Corp.		30,100		185,499
Silver Standard Resources, Inc. *		7,200		124,416
Silvercorp Metals, Inc.		21,000		155,003
Taseko Mines Ltd. *		21,600		87,939
Thompson Creek Metals Co., Inc. *		14,400		105,410
West Fraser Timber Co., Ltd.		7,000		340,566

				9,687,048


Media 1.0%
Astral Media, Inc., A Shares		7,200		267,181
Cineplex, Inc.		6,400		173,621
Cogeco Cable, Inc.		6,400		316,637
Corus Entertainment, Inc.		6,400		142,107
Groupe Aeroplan, Inc.		25,600		322,291
Imax Corp. *		6,800		174,393
Quebecor, Inc., Class B		6,800		249,852
Torstar Corp.		6,800		67,106

				1,713,188

36 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Nordion, Inc.		14,400		145,031


Real Estate 1.9%
Allied Properties Real Estate Investment Trust		7,200		194,373
Artis Real Estate Investment Trust		6,400		103,250
Boardwalk Real Estate Investment Trust		7,200		406,802
Calloway Real Estate Investment Trust		7,200		197,809
Canadian Apartment Properties Real Estate Investment Trust		7,200		168,350
Canadian Real Estate Investment Trust		7,200		279,535
Chartwell Seniors Housing Real Estate Investment Trust		25,600		238,339
Cominar Real Estate Investment Trust		7,200		167,838
Dundee Real Estate Investment Trust		7,200		251,465
Extendicare Real Estate Investment Trust		14,400		124,270
First Capital Realty, Inc.		14,400		261,845
H&R Real Estate Investment Trust (a)		21,000		503,599
InnVest Real Estate Investment Trust		19,200		106,434
Morguard Real Estate Investment Trust		7,200		119,153
Primaris Retail Real Estate Investment Trust		7,200		158,701

				3,281,763


Retailing 0.3%
Dollarama, Inc.		7,000		305,528
Reitmans Ltd., A Shares		6,800		102,937
RONA, Inc.		12,800		121,769

				530,234


Software & Services 0.4%
MacDonald, Dettwiler & Associates Ltd.		6,800		306,188
Open Text Corp. *		7,500		459,617

				765,805


Technology Hardware & Equipment 0.1%
Celestica, Inc. *		15,000		141,479


Telecommunication Services 0.1%
Manitoba Telecom Services, Inc.		6,400		214,752


Transportation 0.1%
TransForce, Inc.		7,200		130,849


Utilities 0.8%
ATCO Ltd., Class I		7,000		482,136
Atlantic Power Corp. *		12,800		187,526
Emera, Inc.		14,000		473,750
Just Energy Group, Inc. (a)		6,400		83,107
Northland Power, Inc.		6,400		112,737

				1,339,256

				35,469,557

China 0.9%


Capital Goods 0.1%
China Automation Group Ltd. (a)		158,000		53,986
China Singyes Solar Technologies Holdings Ltd.		64,000		37,299
Haitian International Holdings Ltd.		68,000		71,720
International Mining Machinery Holdings Ltd. (b)(c)		65,000		71,070

				234,075


Consumer Durables & Apparel 0.0%
China Hongxing Sports Ltd. *(b)(c)		884,000		24,458


Food, Beverage & Tobacco 0.0%
Uni-President China Holdings Ltd. (a)		64,000		41,673


Materials 0.2%
Dongyue Group (a)		192,000		197,553
West China Cement Ltd. (a)		640,000		148,536

				346,089


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
China Medical System Holdings Ltd. (a)		192,400		147,853
China Shineway Pharmaceutical Group Ltd. (a)		64,000		120,314

				268,167


Retailing 0.2%
Intime Department Store Group Co., Ltd.		72,000		89,586
PCD Stores Group Ltd.		352,000		67,625
Silver Base Group Holdings Ltd. (a)		192,000		144,327

				301,538


Software & Services 0.1%
Kingdee International Software Group Co., Ltd. (a)		512,000		139,294


Technology Hardware & Equipment 0.1%
China Wireless Technologies Ltd.		512,000		107,606
O-Net Communications Group Ltd. *		64,000		22,693

				130,299


Utilities 0.0%
Sound Global Ltd. (a)		88,000		43,755

				1,529,348

Cyprus 0.1%


Banks 0.1%
Bank of Cyprus plc		72,677		56,874
Marfin Popular Bank PCL *		165,027		53,423

				110,297

Denmark 0.8%


Banks 0.3%
Jyske Bank A/S *		8,451		304,420
Sydbank A/S		10,981		211,806

				516,226


Capital Goods 0.1%
NKT Holding A/S (a)		2,934		125,801


Consumer Durables & Apparel 0.0%
Pandora A/S (a)		2,560		32,727


Health Care Equipment & Services 0.1%
GN Store Nord A/S		24,000		265,143


Insurance 0.1%
Topdanmark A/S *		1,600		272,916

See financial notes 37

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Alk-Abello A/S		1,718		105,100


Software & Services 0.1%
SimCorp A/S		680		111,096

				1,429,009

Finland 2.2%


Capital Goods 0.8%
Cargotec Oyj, B Shares		6,191		263,275
Cramo Oyj		6,034		97,829
Konecranes Oyj		6,037		192,201
Outotec Oyj		5,334		328,366
Ramirent Oyj		12,674		132,750
Uponor Oyj		6,400		74,954
YIT Oyj		14,028		310,565

				1,399,940


Commercial & Professional Services 0.1%
Lassila & Tikanoja Oyj		6,402		100,198
Poyry Oyj		8,753		76,167

				176,365


Consumer Durables & Apparel 0.1%
Amer Sports Oyj, A Shares		15,320		208,624


Diversified Financials 0.1%
Pohjola Bank plc, A Shares		20,774		241,073


Materials 0.4%
Huhtamaki Oyj		14,795		206,621
Kemira Oyj		12,800		183,896
M-real Oyj, B Shares *		39,269		108,212
Talvivaara Mining Co. plc *		24,167		108,289
Tikkurila Oyj		6,400		129,703

				736,721


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Orion Oyj, Class B		8,057		174,278


Real Estate 0.2%
Citycon Oyj		35,281		119,404
Sponda Oyj		36,404		153,885

				273,289


Retailing 0.1%
Stockmann Oyj Abp, B Shares (a)		5,058		119,421


Software & Services 0.1%
Tieto Oyj		10,476		192,969


Telecommunication Services 0.2%
Elisa Oyj		13,210		301,998

				3,824,678

France 3.0%


Capital Goods 0.3%
Mersen		2,240		76,709
Nexans S.A.		3,916		272,346
Saft Groupe S.A.		3,297		100,491

				449,546


Commercial & Professional Services 0.2%
Derichebourg S.A.		26,485		88,821
Teleperformance		8,355		224,591

				313,412


Consumer Durables & Apparel 0.1%
Beneteau		6,474		84,697
Nexity		4,060		114,514

				199,211


Energy 0.3%
Bourbon S.A.		8,186		298,344
Etablissements Maurel et Prom		13,201		251,375

				549,719


Food & Staples Retailing 0.1%
Rallye S.A.		3,844		140,688


Food, Beverage & Tobacco 0.2%
Remy Cointreau S.A.		3,081		303,050


Health Care Equipment & Services 0.1%
Medica S.A.		9,046		146,420


Materials 0.1%
S.A. des Ciments Vicat		3,831		261,105


Media 0.5%
Havas S.A.		67,075		342,485
Ipsos		4,204		154,286
Metropole Television S.A.		11,834		208,327
Societe d’Edition de Canal +		17,295		112,092

				817,190


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Virbac S.A.		952		141,803


Real Estate 0.2%
Mercialys		3,959		137,907
Societe Immobiliere de Location pour l’Industrie et le Commerce		1,637		170,915

				308,822


Retailing 0.1%
CFAO		6,272		247,507


Semiconductors & Semiconductor Equipment 0.0%
Silicon-On-Insulator Technologies *(a)		10,769		71,884


Software & Services 0.3%
Alten		4,967		164,946
Altran Technologies S.A. *		22,862		128,141
Groupe Steria SCA		4,132		87,498
UbiSoft Entertainment S.A. *		17,309		148,048

				528,633


Technology Hardware & Equipment 0.3%
Ingenico		4,160		199,972
Neopost S.A.		3,595		246,992

				446,964


Utilities 0.1%
Rubis		4,508		255,265

				5,181,219

Germany 3.8%


Automobiles & Components 0.3%
ElringKlinger AG		7,539		248,391
Leoni AG		5,490		276,427

				524,818


Capital Goods 1.1%
Bauer AG (a)		2,630		86,986
Deutz AG *		20,203		147,451

38 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Gildemeister AG *		9,497		153,784
Kloeckner & Co. SE		4,823		74,808
Krones AG		2,730		156,485
KSB AG		136		81,231
KUKA AG *(a)		4,601		104,846
MTU Aero Engines Holding AG		4,727		361,503
Pfeiffer Vacuum Technology AG		1,574		171,159
Rheinmetall AG		1,718		104,624
SGL Carbon SE *(a)		4,800		233,723
Vossloh AG		1,152		122,327

				1,798,927


Consumer Durables & Apparel 0.2%
Gerry Weber International AG		3,494		132,038
Rational AG		612		147,975

				280,013


Food, Beverage & Tobacco 0.0%
Asian Bamboo AG (a)		1,408		25,615


Health Care Equipment & Services 0.1%
Rhoen Klinikum AG		8,451		166,069


Materials 0.6%
Aurubis AG		6,150		367,782
Fuchs Petrolub AG		5,941		290,870
Symrise AG		12,962		379,903

				1,038,555


Media 0.1%
Sky Deutschland AG *		64,704		178,995


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
MorphoSys AG *		5,711		141,409
Stada Arzneimittel AG		8,731		268,277

				409,686


Real Estate 0.4%
Alstria Office REIT-AG		8,609		96,967
Deutsche Euroshop AG		6,037		208,757
Deutsche Wohnen AG		13,581		181,182
DIC Asset AG		6,400		57,112
IVG Immobilien AG *		23,195		67,641

				611,659


Retailing 0.2%
BayWa AG		1,920		76,024
Douglas Holding AG (a)		4,537		209,992

				286,016


Semiconductors & Semiconductor Equipment 0.2%
Aixtron SE (a)		12,751		212,616
Dialog Semiconductor plc *		8,628		185,994

				398,610


Software & Services 0.1%
Wirecard AG		11,618		230,246


Technology Hardware & Equipment 0.1%
Wincor Nixdorf AG		4,089		223,061


Telecommunication Services 0.2%
Freenet AG		19,660		267,463

				6,439,733

Greece 0.2%


Banks 0.0%
Piraeus Bank S.A. *		61,000		38,760


Capital Goods 0.0%
Ellaktor S.A.		14,335		22,819


Diversified Financials 0.0%
Marfin Investment Group S.A. *		76,800		42,635


Energy 0.1%
Motor Oil (Hellas) Corinth Refineries S.A.		11,800		83,660


Materials 0.1%
Titan Cement Co. S.A.		8,550		171,560


Retailing 0.0%
JUMBO S.A. *		15,000		74,042

				433,476

Hong Kong 3.4%


Automobiles & Components 0.1%
Minth Group Ltd.		144,000		178,057


Capital Goods 0.1%
EVA Precision Industrial Holdings Ltd.		272,000		58,919
Lonking Holdings Ltd. (a)		128,000		51,988
Singamas Container Holdings Ltd.		128,000		38,784

				149,691


Consumer Durables & Apparel 0.5%
Daphne International Holdings Ltd.		145,000		182,659
Haier Electronics Group Co., Ltd. *		68,000		85,047
Ports Design Ltd. (a)		72,000		114,558
Skyworth Digital Holdings Ltd. (a)		328,000		184,391
Stella International Holdings Ltd.		72,000		165,989
Trinity Ltd.		162,000		128,252

				860,896


Consumer Services 0.2%
Ajisen China Holdings Ltd. (a)		204,000		279,340


Diversified Financials 0.1%
Value Partners Group Ltd. (a)		128,000		91,762


Energy 0.1%
Sino Oil & Gas Holdings Ltd. *		4,160,000		144,823
Titan Petrochemicals Group Ltd. *		1,280,000		55,288

				200,111


Food, Beverage & Tobacco 0.1%
C.P. Pokphand Co., Ltd.		1,254,000		160,070
Global Bio-Chem Technology Group Co., Ltd.		256,000		68,987

				229,057


Household & Personal Products 0.1%
Real Nutriceutical Group Ltd. (a)		128,000		45,881
Vinda International Holdings Ltd.		64,000		86,646

				132,527


Materials 0.4%
China Lumena New Materials Corp. (a)		256,000		71,627
China Precious Metal Resources Holdings Co., Ltd. *(a)		256,000		47,531

See financial notes 39

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
China Shanshui Cement Group		288,000		267,365
China Vanadium Titano - Magnetite Mining Co., Ltd. (a)		192,000		51,245
Fufeng Group Ltd.		144,000		72,040
Samling Global Ltd. (c)		1,024,000		93,743
Sino-Forest Corp. *(a)(b)(c)		17,700		24,206

				627,757


Media 0.1%
VODone Ltd. (a)		640,000		107,276


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Anxin-China Holdings Ltd. *		260,000		61,349
Sino Biopharmaceutical Ltd.		288,000		79,838

				141,187


Real Estate 0.2%
GZI Real Estate Investment Trust		581,000		302,647


Retailing 0.5%
Chow Sang Sang Holdings International Ltd. (a)		10,000		27,399
Emperor Watch & Jewellery Ltd. (a)		830,000		119,860
Giordano International Ltd.		128,000		102,985
Hengdeli Holdings Ltd. (a)		288,000		124,399
Luk Fook Holdings International Ltd.		64,000		244,672
New World Department Store China Ltd.		128,000		80,704
S.A. SA International Holdings Ltd. (a)		256,000		156,128

				856,147


Semiconductors & Semiconductor Equipment 0.0%
Apollo Solar Energy Technology Holdings Ltd. *		1,280,000		46,211


Software & Services 0.2%
G-Resources Group Ltd. *		4,080,000		278,814
Hi Sun Technology China Ltd. *		216,000		48,739

				327,553


Technology Hardware & Equipment 0.2%
Comba Telecom Systems Holdings Ltd. (a)		64,000		47,779
Digital China Holdings Ltd.		192,000		386,194

				433,973


Telecommunication Services 0.1%
SmarTone Telecommunications Holding Ltd.		64,000		136,488


Transportation 0.1%
Pacific Basin Shipping Ltd.		432,000		223,918


Utilities 0.2%
China Gas Holdings Ltd.		560,000		268,602
China Water Affairs Group Ltd. (a)		256,000		76,909
Towngas China Co., Ltd.		136,000		80,663

				426,174

				5,750,772

Ireland 1.3%


Banks 0.3%
The Governor & Co. of the Bank of Ireland *		3,008,000		543,213


Capital Goods 0.4%
DCC plc		9,615		247,915
Grafton Group plc		46,307		211,851
Kingspan Group plc		21,760		235,778

				695,544


Consumer Services 0.1%
Paddy Power plc		1,920		114,730


Food, Beverage & Tobacco 0.1%
C&C Group plc		51,200		251,016


Health Care Equipment & Services 0.1%
United Drug plc		46,160		139,551


Materials 0.3%
Kenmare Resources plc *		212,972		192,220
Smurfit Kappa Group plc *		25,425		260,218

				452,438

				2,196,492

Israel 0.5%


Health Care Equipment & Services 0.1%
Given Imaging Ltd. *		8,200		161,188


Semiconductors & Semiconductor Equipment 0.4%
EZchip Semiconductor Ltd. *		6,830		275,823
Mellanox Technologies Ltd. *		9,293		358,800

				634,623


Telecommunication Services 0.0%
Internet Gold-Golden Lines Ltd. *		4,236		34,325

				830,136

Italy 2.1%


Automobiles & Components 0.0%
Piaggio & C S.p.A.		22,400		66,581


Banks 0.6%
Banca Piccolo Credito Valtellinese Scarl (a)		29,825		94,236
Banca Popolare dell’Emilia Romagna Scrl		34,065		287,767
Banca Popolare di Milano Scarl		320,000		210,265
Banca Popolare di Sondrio Scrl		33,600		277,546
Credito Emiliano S.p.A.		14,646		71,550

				941,364


Capital Goods 0.3%
C.I.R. S.p.A - Compagnie Industriali Riunite		68,369		113,132
Danieli & C Officine Meccaniche S.p.A.		9,569		134,533
Impregilo S.p.A.		68,820		238,621

				486,286


Consumer Durables & Apparel 0.1%
Tod’s S.p.A. (a)		1,977		204,298


Diversified Financials 0.2%
Azimut Holding S.p.A.		22,641		212,311
Banca Generali S.p.A.		9,497		119,292

				331,603


Energy 0.1%
ERG S.p.A.		15,307		166,881

40 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Health Care Equipment & Services 0.2%
DiaSorin S.p.A. (a)		7,515		221,162
Sorin S.p.A. *		90,688		171,173

				392,335


Insurance 0.2%
Fondiaria-Sai S.p.A. *(a)		31,393		58,036
Societa Cattolica di Assicurazioni Scrl		8,451		180,200

				238,236


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Recordati S.p.A.		15,083		115,006


Real Estate 0.0%
Beni Stabili S.p.A.		102,505		57,522


Retailing 0.0%
Yoox S.p.A. *(a)		3,841		55,132


Transportation 0.1%
Ansaldo STS S.p.A.		20,259		204,202


Utilities 0.2%
ACEA S.p.A.		12,746		89,940
Hera S.p.A.		89,071		134,282
IREN S.p.A.		92,915		89,615

				313,837

				3,573,283

Japan 13.9%


Automobiles & Components 0.8%
Akebono Brake Industry Co., Ltd. (a)		12,800		67,052
Daido Metal Co., Ltd.		7,000		84,062
Keihin Corp. (a)		7,000		141,574
Nissin Kogyo Co., Ltd.		21,600		365,871
Press Kogyo Co., Ltd.		64,000		366,098
TS Tech Co., Ltd.		14,400		276,116

				1,300,773


Banks 0.7%
FIDEA Holdings Co., Ltd.		23,900		63,780
Kiyo Holdings, Inc.		128,000		191,352
Miyazaki Bank Ltd.		31,000		85,409
The Fukui Bank Ltd.		72,000		229,503
The Oita Bank Ltd.		68,000		204,991
The Yachiyo Bank Ltd.		2,200		56,835
Toho Bank Ltd.		23,000		82,407
Tokyo Tomin Bank Ltd.		6,400		79,308
TOMONY Holdings, Inc.		12,800		61,043
Tsukuba Bank Ltd.		18,200		65,209

				1,119,837


Capital Goods 3.7%
Aica Kogyo Co., Ltd.		21,600		301,023
Amano Corp.		6,800		62,337
Asahi Diamond Industrial Co., Ltd.		6,800		91,238
Central Glass Co., Ltd.		64,000		290,981
Daifuku Co., Ltd.		36,000		209,933
Futaba Corp.		14,400		242,313
Hanwa Co., Ltd.		72,000		337,139
Hitachi Zosen Corp.		170,000		228,935
Inaba Denki Sangyo Co., Ltd.		7,200		216,338
Iseki & Co., Ltd. *(a)		68,000		169,706
Iwatani Corp.		72,000		247,294
Kyowa Exeo Corp.		21,600		198,547
Maeda Corp.		64,000		253,818
Meidensha Corp.		72,000		272,202
Mirait Holdings Corp.		12,800		98,364
Miura Co., Ltd.		6,800		186,508
Nachi-Fujikoshi Corp.		11,000		60,749
Nichias Corp.		19,000		105,868
Nitto Boseki Co., Ltd.		64,000		217,445
Noritz Corp.		14,400		269,177
Oiles Corp.		14,400		275,760
Okumura Corp.		72,000		285,545
OSG Corp.		21,600		318,102
Penta-Ocean Construction Co., Ltd. (a)		32,000		107,536
Sanwa Holdings Corp.		72,000		252,632
SHO-BOND Holdings Co., Ltd.		7,200		165,812
Sintokogio Ltd.		28,800		297,465
Taikisha Ltd.		6,400		128,569
Takasago Thermal Engineering Co., Ltd.		12,800		104,374
Toyo Tanso Co., Ltd. (a)		6,400		252,632
Tsubakimoto Chain Co.		24,000		141,438

				6,389,780


Commercial & Professional Services 0.5%
Daiseki Co., Ltd.		7,200		126,582
Duskin Co., Ltd.		14,400		293,729
Meitec Corp.		7,500		151,686
Mitsubishi Pencil Co., Ltd.		14,400		246,405

				818,402


Consumer Durables & Apparel 0.7%
JVC Kenwood Corp. *(a)		11,600		54,030
Mizuno Corp.		39,000		211,045
Pioneer Corp. *		65,300		334,810
Sangetsu Co., Ltd.		7,200		188,318
Seiko Holdings Corp.		18,000		39,807
Tamron Co., Ltd.		6,400		187,240
Tomy Co., Ltd.		28,800		204,240

				1,219,490


Consumer Services 0.5%
Accordia Golf Co., Ltd.		310		237,843
Colowide Co., Ltd. (a)		8,000		59,797
Doutor Nichires Holdings Co., Ltd.		19,200		247,413
HIS Co., Ltd.		1,600		42,066
Saizeriya Co., Ltd. (a)		15,500		241,481

				828,600


Diversified Financials 0.4%
Aiful Corp. *		56,350		98,164
Fuyo General Lease Co., Ltd.		7,200		258,414
IBJ Leasing Co., Ltd.		7,200		167,502
Jaccs Co., Ltd.		14,000		47,912
Japan Securities Finance Co., Ltd.		12,800		77,900
Orient Corp. *		41,000		44,576

				694,468


Energy 0.1%
Itochu Enex Co., Ltd.		6,400		37,875
Shinko Plantech Co., Ltd.		6,400		56,457

				94,332


Food & Staples Retailing 0.3%
Ain Pharmaciez, Inc.		1,400		63,566
Cocokara fine, Inc.		6,400		180,914

See financial notes 41

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Izumiya Co., Ltd. (a)		23,000		116,222
Ministop Co., Ltd.		2,600		47,188
Okuwa Co., Ltd.		4,000		56,684
Valor Co., Ltd.		2,600		38,772

				503,346


Food, Beverage & Tobacco 0.8%
Fuji Oil Co., Ltd.		19,200		264,967
Fujiya Co., Ltd. *(a)		64,000		133,630
Hokuto Corp.		6,400		136,397
Megmilk Snow Brand Co., Ltd.		6,400		115,206
Morinaga Milk Industry Co., Ltd.		72,000		267,754
Nippon Suisan Kaisha Ltd.		19,200		66,708
The Nisshin Oillio Group Ltd.		68,000		285,644
Yonekyu Corp.		19,200		175,063

				1,445,369


Health Care Equipment & Services 0.4%
Nikkiso Co., Ltd.		5,000		46,948
Ship Healthcare Holdings, Inc.		12,800		248,125
Toho Holdings Co., Ltd.		21,000		323,795

				618,868


Household & Personal Products 0.3%
Aderans Co., Ltd. *		8,100		98,073
Fancl Corp.		13,600		179,955
Mandom Corp.		7,200		177,821

				455,849


Materials 2.0%
Adeka Corp.		21,600		207,887
Earth Chemical Co., Ltd.		6,400		225,906
Kureha Corp.		64,000		319,446
Kyoei Steel Ltd.		6,400		114,811
Nifco, Inc.		6,400		173,561
Nippon Light Metal Co., Ltd.		144,000		220,608
Nippon Soda Co., Ltd.		64,000		290,190
NOF Corp.		64,000		316,284
Sanyo Special Steel Co., Ltd.		30,000		160,119
Sumitomo Light Metal Industries Ltd. *		64,000		66,420
Toagosei Co., Ltd.		72,000		321,127
Tokyo Ohka Kogyo Co., Ltd.		14,400		330,200
Toyo Ink SC Holdings Co., Ltd.		72,000		297,998
Yodogawa Steel Works Ltd.		64,000		287,027

				3,331,584


Media 0.3%
Avex Group Holdings, Inc.		6,400		78,122
Kadokawa Group Holdings, Inc. (a)		6,400		201,156
Shochiku Co., Ltd. (a)		20,000		187,794

				467,072


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
KYORIN Holdings, Inc.		5,000		88,893
Nichi-iko Pharmaceutical Co., Ltd.		7,200		156,827
Seikagaku Corp.		14,800		166,761

				412,481


Real Estate 0.1%
Daibiru Corp.		6,400		45,611
Kenedix, Inc. *		332		60,871
Leopalace21 Corp. *(a)		30,100		73,632
TOC Co., Ltd.		12,800		66,420

				246,534


Retailing 0.5%
AOKI Holdings, Inc.		2,600		42,370
Arc Land Sakamoto Co., Ltd.		2,400		40,889
Daiei, Inc. *		17,450		62,306
DCM Holdings Co., Ltd.		6,400		45,861
EDION Corp.		12,800		93,145
Gulliver International Co., Ltd. (a)		940		36,757
Megane TOP Co., Ltd.		4,600		46,773
Nissen Holdings Co., Ltd.		7,500		37,250
Tsutsumi Jewelry Co., Ltd.		6,400		168,105
Xebio Co., Ltd.		6,400		152,291
Yellow Hat Ltd.		6,400		97,811

				823,558


Semiconductors & Semiconductor Equipment 0.0%
Sanken Electric Co., Ltd. (a)		14,000		62,960


Software & Services 0.4%
Fuji Soft, Inc.		19,200		372,899
GMO internet, Inc.		11,000		52,866
Ines Corp.		7,800		62,061
IT Holdings Corp.		6,400		72,745
SCSK Corp.		6,400		98,443
Transcosmos, Inc.		3,800		48,310

				707,324


Technology Hardware & Equipment 0.8%
Anritsu Corp. (a)		7,000		84,667
Canon Electronics, Inc.		6,400		158,458
Daiwabo Holdings Co., Ltd.		64,000		144,700
Horiba Ltd.		7,200		230,037
Hosiden Corp.		24,400		189,014
Nichicon Corp.		23,200		286,632
Nippon Chemi-Con Corp.		12,000		50,111
Riso Kagaku Corp.		2,600		41,599
Ryosan Co., Ltd.		7,200		148,021
Star Micronics Co., Ltd.		6,400		63,810
V Technology Co., Ltd. (a)		8		31,332

				1,428,381


Transportation 0.4%
Japan Airport Terminal Co., Ltd.		8,100		108,680
Sankyu, Inc.		64,000		250,655
The Sumitomo Warehouse Co., Ltd.		64,000		315,493

				674,828


Utilities 0.0%
Okinawa Electric Power Co., Inc.		1,100		45,731

				23,689,567

Jersey 0.1%


Insurance 0.1%
Phoenix Group Holdings		10,325		90,715

Liechtenstein 0.0%


Banks 0.0%
Liechtensteinische Landesbank AG		1,646		75,188

Luxembourg 0.2%


Commercial & Professional Services 0.1%
Regus plc		109,255		193,204

42 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Real Estate 0.1%
GAGFAH S.A.		12,674		71,919

				265,123

Netherlands 2.0%


Capital Goods 0.4%
Aalberts Industries N.V.		9,600		195,069
Arcadis N.V.		7,069		129,077
Imtech N.V.		9,665		325,096
Koninklijke BAM Groep N.V.		28,462		135,123

				784,365


Consumer Durables & Apparel 0.1%
Koninklijke Ten Cate N.V.		4,305		140,630


Diversified Financials 0.1%
BinckBank N.V.		11,023		123,420
SNS REAAL N.V. *		24,004		68,073

				191,493


Energy 0.0%
Dockwise Ltd. *		3,200		67,077


Food & Staples Retailing 0.1%
Sligro Food Group N.V.		4,655		144,684


Food, Beverage & Tobacco 0.3%
CSM N.V.		9,497		179,509
Nutreco Holding N.V.		4,655		350,331

				529,840


Health Care Equipment & Services 0.1%
Mediq N.V.		7,040		114,751


Insurance 0.1%
Delta Lloyd N.V.		9,600		178,824


Real Estate 0.4%
Eurocommercial Properties N.V.		5,763		208,186
Nieuwe Steen Investments N.V.		7,616		90,377
VastNed Retail N.V.		3,009		135,043
Wereldhave N.V.		2,458		184,461

				618,067


Semiconductors & Semiconductor Equipment 0.2%
ASM International N.V.		7,844		295,271


Software & Services 0.1%
Unit 4 N.V.		4,780		136,037


Technology Hardware & Equipment 0.1%
TKH Group N.V.		6,704		157,073

				3,358,112

New Zealand 0.2%


Insurance 0.0%
TOWER Ltd.		28,800		37,641


Real Estate 0.1%
AMP NZ Office Ltd.		64,000		46,949
Goodman Property Trust		154,834		130,556

				177,505


Utilities 0.1%
Infratil Ltd.		108,564		169,351

				384,497

Nigeria 0.0%


Energy 0.0%
Maurel & Prom Nigeria *		16,083		44,104

Norway 2.0%


Banks 0.1%
Sparebanken 1 SMN (a)		15,083		111,269


Commercial & Professional Services 0.1%
Tomra Systems A.S.A.		31,263		261,568


Energy 1.0%
BW Offshore Ltd.		67,178		99,115
DNO International A.S.A. *(a)		148,800		280,318
Fred. Olsen Energy A.S.A.		3,767		159,281
Petroleum Geo-Services A.S.A. *		27,937		428,273
Prosafe SE		30,223		266,462
Songa Offshore SE *		19,264		79,375
TGS Nopec Geophysical Co. A.S.A.		13,434		390,372

				1,703,196


Food, Beverage & Tobacco 0.1%
Cermaq A.S.A. *		8,000		113,067
Marine Harvest		231,848		125,149

				238,216


Materials 0.0%
Norske Skogindustrier A.S.A. *		20,800		22,156


Media 0.2%
Schibsted A.S.A.		9,262		305,803


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Algeta A.S.A. *		5,900		162,528


Real Estate 0.1%
Norwegian Property A.S.A.		75,548		112,688


Retailing 0.1%
Statoil Fuel & Retail A.S.A. *		25,600		168,125


Semiconductors & Semiconductor Equipment 0.1%
Nordic Semiconductor A.S.A. (a)		26,485		88,637
Renewable Energy Corp. A.S.A. *(a)		36,886		27,423

				116,060


Software & Services 0.1%
Atea A.S.A.		15,083		180,472

				3,382,081

Portugal 0.2%


Capital Goods 0.1%
Sonae		142,899		87,741


Materials 0.0%
Portucel-Empresa Produtora de Pasta e Papel S.A. *		23,915		64,366


Media 0.1%
Zon Multimedia Servicos de Telecomunicacoes e Multimedia, SGPS, S.A.		57,767		180,050

				332,157

See financial notes 43

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)

Republic of Korea 4.3%


Automobiles & Components 0.3%
Mando Corp.		1,681		252,437
Nexen Tire Corp.		4,130		59,621
S&T Daewoo Co., Ltd.		600		16,546
Ssangyong Motor Co. *		17,700		112,808

				441,412


Banks 0.4%
Jeonbuk Bank		18,054		82,304
KB Financial Group, Inc. ADR		7,590		279,692
Shinhan Financial Group Co., Ltd. ADR		3,755		291,613

				653,609


Capital Goods 0.3%
Hyundai Elevator Co., Ltd.		637		76,869
LG International Corp.		4,340		228,885
LS Industrial Systems Co., Ltd.		976		59,586
Sung Kwang Bend Co., Ltd.		1,300		28,005
Taihan Electric Wire Co., Ltd. *		14,120		44,365

				437,710


Consumer Durables & Apparel 0.1%
LG Fashion Corp.		2,000		75,085
Youngone Holdings Co., Ltd.		1,180		58,751

				133,836


Consumer Services 0.2%
Hana Tour Service, Inc.		2,970		113,095
Hotel Shilla Co., Ltd.		7,420		281,883

				394,978


Diversified Financials 0.2%
Macquarie Korea Infrastructure Fund		59,000		283,734
Tong Yang Securities, Inc.		23,520		113,529

				397,263


Energy 0.1%
SK Gas Co., Ltd.		2,360		147,035


Food, Beverage & Tobacco 0.4%
Binggrae Co., Ltd.		960		50,972
CNK International Co., Ltd. *		5,900		15,321
Daesang Corp.		14,040		181,347
ORION Corp.		510		323,672
Samyang Corp.		2,279		128,089

				699,401


Health Care Equipment & Services 0.0%
Chabio & Diostech Co., Ltd. *		6,400		64,931


Insurance 0.4%
Hanwha General Insurance Co., Ltd. *		3,400		21,761
Hyundai Marine & Fire Insurance Co., Ltd.		9,150		264,180
Korean Reinsurance Co.		15,000		195,088
Meritz Fire & Marine Insurance Co., Ltd.		19,082		214,064

				695,093


Materials 0.8%
Capro Corp.		2,950		70,538
Kolon Industries, Inc.		1,920		124,599
Korea Kumho Petrochemical Co., Ltd.		1,871		261,737
OCI Materials Co., Ltd.		1,706		117,879
Poongsan Corp.		4,450		134,845
Seah Besteel Corp.		5,890		255,349
SK Chemicals Co., Ltd.		5,070		315,876
Taekwang Industrial Co., Ltd.		57		66,745
Young Poong Corp.		50		57,253

				1,404,821


Media 0.1%
CJ CGV Co., Ltd.		2,000		45,945
CJ E&M Corp. *		1,500		41,565

				87,510


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Dong-A Pharmaceutical Co., Ltd.		3,000		227,938
Green Cross Corp.		400		45,409

				273,347


Retailing 0.2%
CJ O Shopping Co., Ltd.		408		103,210
Dongsuh Cos., Inc.		800		24,206
GS Home Shopping, Inc.		448		48,095
Hyundai Greenfood Co. Ltd.		7,400		95,913
Hyundai Home Shopping Network Corp.		1,000		129,612

				401,036


Semiconductors & Semiconductor Equipment 0.2%
Seoul Semiconductor Co., Ltd.		11,280		266,693


Technology Hardware & Equipment 0.3%
Daeduck Electronics Co., Ltd.		7,650		84,793
LG Innotek Co., Ltd. *		2,750		235,737
SFA Engineering Corp.		3,210		175,604

				496,134


Telecommunication Services 0.1%
SK Broadband Co., Ltd. *		59,000		187,750


Transportation 0.0%
Asiana Airlines, Inc. *		12,280		80,131


Utilities 0.0%
Samchully Co., Ltd.		590		54,057

				7,316,747

Singapore 1.7%


Capital Goods 0.0%
Gallant Venture Ltd. *		128,000		30,795


Commercial & Professional Services 0.0%
Cape plc		6,732		46,995


Energy 0.3%
Ezra Holdings Ltd. *(a)		144,000		144,352
Sakari Resources Ltd.		144,000		307,182

				451,534


Food, Beverage & Tobacco 0.1%
GMG Global Ltd.		1,034,000		123,554


Health Care Equipment & Services 0.1%
Biosensors International Group Ltd. *		79,000		92,498
Raffles Medical Group Ltd.		68,000		127,062

				219,560


Real Estate 0.6%
CDL Hospitality Trusts (a)		144,000		198,051
Lippo Malls Indonesia Retail Trust		192,000		60,821

44 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Mapletree Logistics Trust		384,000		277,156
Parkway Life Real Estate Investment Trust		64,000		91,872
Suntec Real Estate Investment Trust		420,000		414,291

				1,042,191


Software & Services 0.0%
CSE Global Ltd.		64,000		44,910


Technology Hardware & Equipment 0.1%
LionGold Corp., Ltd. *(a)		204,000		145,603


Transportation 0.3%
Goodpack Ltd.		77,000		84,907
SATS Ltd.		192,000		374,161

				459,068


Utilities 0.2%
Cityspring Infrastructure Trust		128,000		37,468
Hyflux Ltd. (a)		192,000		225,574

				263,042

				2,827,252

Spain 1.5%


Capital Goods 0.4%
Abengoa S.A. (a)		6,037		127,192
Construcciones y Auxiliar de Ferrocarriles S.A.		476		256,958
Gamesa Corporacion Tecnologica S.A. (a)		17,124		54,656
Obrascon Huarte Lain S.A.		9,108		281,872
Sacyr Vallehermoso S.A. (a)		20,086		80,607

				801,285


Commercial & Professional Services 0.1%
Prosegur, Compania de Seguridad S.A. - Reg’d		3,075		155,076


Consumer Services 0.1%
Melia Hotels International S.A. (a)		13,048		91,024
NH Hoteles S.A. *(a)		25,600		80,476

				171,500


Diversified Financials 0.1%
Bolsas y Mercados Espanoles		6,400		171,525


Energy 0.1%
Tecnicas Reunidas S.A. (a)		4,184		169,195


Food, Beverage & Tobacco 0.2%
Ebro Foods S.A.		12,818		258,657
Viscofan S.A.		3,767		156,968

				415,625


Insurance 0.1%
Grupo Catalana Occidente S.A.		8,139		142,627


Materials 0.1%
Grupo Empresarial Ence S.A.		29,604		77,817
Tubacex S.A. *(a)		28,025		78,727

				156,544


Media 0.1%
Antena 3 de Television S.A. (a)		11,983		72,134
Promotora de Informaciones S.A., A Shares *(a)		71,121		64,694

				136,828


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Almirall S.A.		7,616		65,305
Faes Farma S.A.		52,114		109,449
Zeltia S.A. *(a)		48,606		119,637

				294,391

				2,614,596

Sweden 2.5%


Capital Goods 0.5%
Lindab International AB		9,952		84,148
NCC AB, B Shares		9,998		223,810
Peab AB		27,032		153,665
Trelleborg AB, B Shares		31,183		336,456

				798,079


Commercial & Professional Services 0.1%
Intrum Justitia AB		3,200		51,341
Loomis AB, B Shares		11,049		160,046

				211,387


Consumer Durables & Apparel 0.1%
JM AB		8,681		159,080


Consumer Services 0.2%
Betsson AB *		4,560		128,984
Rezidor Hotel Group AB *		30,732		116,839
SkiStar AB		3,834		50,435

				296,258


Diversified Financials 0.3%
Avanza Bank Holding AB		5,562		159,018
Investment AB Oresund		4,480		73,751
L E Lundbergforetagen AB, B Shares		5,706		198,799

				431,568


Food & Staples Retailing 0.2%
Axfood AB		5,568		211,011
Hakon Invest AB		5,480		95,671

				306,682


Food, Beverage & Tobacco 0.1%
AarhusKarlshamn AB		7,728		250,325


Materials 0.1%
Billerud		10,250		94,695
Hoganas AB, B Shares		3,755		146,758

				241,453


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Meda AB, A Shares		22,924		217,886


Real Estate 0.6%
Castellum AB		22,790		301,870
Fabege AB		19,200		173,731
Hufvudstaden AB, A Shares		16,009		178,819
Kungsleden AB		23,188		174,200
Wallenstam AB, B Shares		12,800		131,003
Wihlborgs Fastigheter AB		7,966		110,846

				1,070,469


Retailing 0.1%
Clas Ohlson AB, B Shares		142		2,014
Mekonomen AB		2,688		93,201

				95,215

See financial notes 45

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Technology Hardware & Equipment 0.1%
Axis Communications AB		5,465		155,829

				4,234,231

Switzerland 3.2%


Automobiles & Components 0.1%
Rieter Holding AG - Reg’d *		748		155,188


Banks 0.3%
Basler Kantonalbank		680		83,787
St. Galler Kantonalbank AG - Reg’d		340		137,759
Valiant Holding AG - Reg’d		2,050		256,236

				477,782


Capital Goods 0.9%
Belimo Holding AG - Reg’d		72		143,065
Bucher Industries AG - Reg’d		1,280		273,804
Georg Fischer AG - Reg’d *		680		324,393
Huber & Suhner AG - Reg’d		3,369		174,649
Kaba Holding AG, B Shares - Reg’d		680		277,027
Meyer Burger Technology AG *(a)		5,202		92,393
OC Oerlikon Corp. AG - Reg’d *		29,071		221,054
Schweiter Technologies AG		144		89,595

				1,595,980


Consumer Durables & Apparel 0.2%
Forbo Holding AG - Reg’d *		476		317,562


Consumer Services 0.1%
Kuoni Reisen Holding AG - Reg’d *		408		130,437


Diversified Financials 0.2%
Bank Sarasin & Cie AG, B Shares - Reg’d		5,418		168,702
Vontobel Holding AG - Reg’d		4,967		127,090

				295,792


Health Care Equipment & Services 0.2%
Galenica AG - Reg’d		576		354,226


Insurance 0.2%
Helvetia Holding AG - Reg’d		816		288,954


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Tecan Group AG - Reg’d *		1,867		152,535


Real Estate 0.2%
Allreal Holding AG - Reg’d *		1,104		177,944
Mobimo Holding AG - Reg’d *		960		231,248

				409,192


Retailing 0.2%
Dufry AG - Reg’d *		2,298		279,071
Valora Holding AG - Reg’d		408		106,025

				385,096


Software & Services 0.1%
Temenos Group AG - Reg’d *(a)		6,632		130,674


Technology Hardware & Equipment 0.2%
Ascom Holding AG - Reg’d		5,624		58,684
Kudelski S.A.		4,750		36,910
Logitech International S.A. - Reg’d *(a)		22,726		194,250

				289,844


Transportation 0.2%
Flughafen Zuerich AG - Reg’d		408		158,517
Panalpina Welttransport Holding AG - Reg’d *		2,458		298,775

				457,292

				5,440,554

United Arab Emirates 0.1%


Energy 0.1%
Lamprell plc		17,080		92,767

United Kingdom 17.3%


Banks 0.1%
Paragon Group Cos. plc		51,981		154,781


Capital Goods 2.2%
Ashtead Group plc		67,200		265,151
Balfour Beatty plc		70,114		311,258
Bodycote plc		23,192		155,602
Carillion plc		50,186		260,551
Chemring Group plc		21,826		152,992
Cookson Group plc		34,196		369,001
Fenner plc		22,144		167,354
Kier Group plc		4,480		88,384
Melrose plc		46,452		289,992
Morgan Crucible Co. plc		31,360		177,090
Qinetiq Group plc		78,897		190,437
Senior plc		64,000		199,975
SIG plc		90,688		168,628
Spirax-Sarco Engineering plc		10,386		340,947
Travis Perkins plc		25,600		439,209
Ultra Electronics Holdings plc		8,681		233,805

				3,810,376


Commercial & Professional Services 1.2%
Babcock International Group plc		28,800		346,429
Berendsen plc		27,104		218,651
De La Rue plc		13,667		207,953
Homeserve plc		40,776		144,996
ITE Group plc		49,097		179,212
Michael Page International plc		42,123		305,225
Mitie Group plc		53,195		226,037
RPS Group plc		40,046		144,703
Shanks Group plc		22,786		38,256
Sthree plc		12,800		58,531
WS Atkins plc		17,439		210,049

				2,080,042


Consumer Durables & Apparel 1.1%
Barratt Developments plc *		138,287		325,174
Bellway plc		18,242		237,788
Bovis Homes Group plc		15,817		127,724
Pace plc		42,316		59,993
Persimmon plc		35,200		379,835
Redrow plc *		55,839		112,838
Taylor Wimpey plc *		467,499		371,088
The Berkeley Group Holdings plc *		11,588		256,936

				1,871,376


Consumer Services 0.9%
Bwin.Party Digital Entertainment plc		39,982		101,233
Dignity plc		9,105		120,504
Domino’s Pizza UK & IRL plc		18,490		131,114
Greene King plc		30,367		243,761

46 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
J.D. Wetherspoon plc		20,232		129,796
Marston’s plc		98,755		154,443
Millennium & Copthorne Hotels plc		24,690		190,855
Mitchells & Butlers plc *		51,619		216,454
Rank Group plc		32,000		70,339
Restaurant Group plc		31,111		137,962
Sportingbet plc		37,347		22,671

				1,519,132


Diversified Financials 1.3%
Aberdeen Asset Management plc		118,400		455,255
Close Brothers Group plc		17,511		206,300
F&C Asset Management plc		103,976		117,513
Henderson Group plc		81,604		155,387
IG Group Holdings plc		40,712		287,717
Intermediate Capital Group plc		57,111		246,965
International Personal Finance		44,073		174,392
Provident Financial plc		16,000		288,819
Rathbone Brothers plc		9,497		187,968
Tullett Prebon plc		30,223		154,833

				2,275,149


Energy 1.0%
Afren plc *		137,506		293,903
Bumi plc *		13,760		171,891
Enquest plc *		90,688		183,694
Heritage Oil plc *(a)		21,576		62,936
Hunting plc		20,774		273,116
Premier Oil plc *		53,273		374,955
Salamander Energy plc *		27,795		109,049
SOCO International plc *		44,443		239,823

				1,709,367


Food & Staples Retailing 0.1%
Booker Group plc		136,675		163,858


Food, Beverage & Tobacco 0.5%
Britvic plc		36,711		222,730
Cranswick plc		12,074		150,540
Dairy Crest Group plc		31,653		163,119
Devro plc		40,555		203,618
Greggs plc		17,280		150,993

				891,000


Household & Personal Products 0.1%
McBride plc *		27,411		55,282
PZ Cussons plc		26,667		132,057

				187,339


Insurance 1.0%
Amlin plc		55,604		312,130
Beazley plc		92,843		212,383
Catlin Group Ltd.		44,725		297,429
Hiscox Ltd.		46,304		303,270
Jardine Lloyd Thompson Group plc		18,797		210,791
Lancashire Holdings Ltd.		20,672		252,787
St. James’s Place plc		22,713		133,884

				1,722,674


Materials 1.5%
Aquarius Platinum Ltd.		46,755		102,398
AZ Electronic Materials S.A.		16,000		72,332
Croda International plc		15,279		525,736
DS Smith plc		140,312		377,454
Elementis plc		15,880		42,110
Filtrona plc		37,120		266,838
Hochschild Mining plc		23,895		195,054
Mondi plc		47,955		451,207
Petropavlovsk plc		24,338		279,344
Victrex plc		10,548		223,430

				2,535,903


Media 0.4%
Informa plc		67,200		465,249
Rightmove plc		6,400		147,834
UBM plc		12,837		119,553

				732,636


Pharmaceuticals, Biotechnology & Life Sciences 0.3%
BTG plc *		25,600		144,645
Genus plc		7,465		163,133
Hikma Pharmaceuticals plc		20,076		235,076

				542,854


Real Estate 1.0%
Atrium European Real Estate Ltd.		27,555		131,591
Big Yellow Group plc		23,116		107,087
Capital & Counties Properties plc		77,813		236,548
Derwent London plc		10,332		278,932
Grainger plc		49,025		86,068
Great Portland Estates plc		40,339		227,536
Helical Bar plc		19,704		58,939
London & Stamford Property plc		32,000		58,377
Savills plc		22,190		128,710
Shaftesbury plc		27,953		218,802
Unite Group plc		26,341		77,845

				1,610,435


Retailing 1.0%
Carpetright plc *(a)		7,141		75,745
Carphone Warehouse Group plc		7,673		20,898
Debenhams plc		200,135		235,943
Dixons Retail plc *		286,711		68,380
Dunelm Group plc		9,600		79,515
Halfords Group plc		27,483		139,084
Home Retail Group plc		75,101		122,369
Howden Joinery Group plc *		86,400		160,379
Inchcape plc		49,280		295,445
Kesa Electricals plc		85,155		101,411
N Brown Group plc		38,400		146,485
Ocado Group plc *(a)		32,262		47,955
Sports Direct International plc *		9,604		45,258
WH Smith plc		15,360		130,536

				1,669,403


Semiconductors & Semiconductor Equipment 0.1%
CSR plc		21,067		85,749


Software & Services 0.7%
Aveva Group plc		7,796		213,332
Computacenter plc		5,766		36,862
Fidessa Group plc		6,253		165,815
Micro Focus International plc		26,063		187,354
Misys plc *		47,936		249,253
SDL plc		6,400		72,588
Telecity Group plc *		17,920		197,378

				1,122,582


Technology Hardware & Equipment 1.3%
Domino Printing Sciences plc		10,930		114,451

See financial notes 47

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Electrocomponents plc		58,605		226,089
Halma plc		35,200		220,928
Imagination Technologies Group plc *		24,320		239,122
Laird plc		56,320		156,095
Oxford Instruments plc		8,088		150,520
Premier Farnell plc		57,600		200,681
Renishaw plc		3,200		73,457
Rotork plc		10,345		342,245
Spectris plc		10,375		289,208
Spirent Communications plc		90,688		204,121

				2,216,917


Telecommunication Services 0.3%
Cable & Wireless Communications plc		153,028		84,704
Cable & Wireless Worldwide plc		267,153		118,982
Colt Group S.A. *		75,548		120,563
Kcom Group plc		57,600		63,949
TalkTalk Telecom Group plc		35,678		82,356

				470,554


Transportation 0.9%
BBA Aviation plc		54,400		175,888
easyJet plc		29,385		206,306
FirstGroup plc		57,418		269,755
Go-Ahead Group plc		9,046		185,400
National Express Group plc		71,920		268,265
Stagecoach Group plc		70,964		304,262
Stobart Group Ltd.		75,548		148,321

				1,558,197


Utilities 0.3%
Pennon Group plc		36,639		420,530

				29,350,854

United States 0.6%


Health Care Equipment & Services 0.3%
SXC Health Solutions Corp. *		7,200		517,184


Materials 0.3%
Alacer Gold Corp. *		38,600		374,263
Golden Star Resources Ltd. *		28,800		57,895
Tahoe Resources, Inc. *		6,400		137,233

				569,391

				1,086,575

Total Common Stock
(Cost $164,701,242)				167,869,089




Preferred Stock 0.5% of net assets

Germany 0.5%


Capital Goods 0.1%
Jungheinrich AG		1,841		64,646


Materials 0.2%
Fuchs Petrolub AG		6,150		328,087


Media 0.2%
ProSiebenSat.1 Media AG		12,763		333,010

				725,743

Italy 0.0%


Insurance 0.0%
Unipol Gruppo Finanziario S.p.A. *(a)		164,250		36,627

Total Preferred Stock
(Cost $699,802)				762,370




Rights 0.0% of net assets

Norway 0.0%


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Algeta A.S.A. *(c)		264		480

Total Rights
(Cost $—)				480




Other Investment Companies 0.3% of net assets

Guernsey 0.1%
F&C Commercial Property Trust Ltd.		68,004		111,674

Switzerland 0.2%
BB Biotech AG - Reg’d *		1,646		131,190
Schroder ImmoPLUS		144		177,752
Swisscanto Real Estate Fund Ifca		794		103,035

				411,977

United States 0.0%
State Street Institutional U.S. Government Money Market Fund		48,231		48,231

Total Other Investment Companies
(Cost $523,498)				571,882



End of Investments



Collateral Invested for Securities on Loan 3.9% of net assets


State Street Institutional U.S. Government Money Market Fund		6,627,995		6,627,995

Total Collateral Invested for Securities on Loan
(Cost $6,627,995)				6,627,995



End of Collateral Invested for Securities on Loan

48 See financial notes

Schwab International Small-Cap Equity ETF

Portfolio Holdings (Unaudited) continued

At 2/29/12, the tax basis cost of the fund’s investments was $165,936,353 and the unrealized appreciation and depreciation were $16,029,379 and ($12,761,911), respectively, with a net unrealized appreciation of $3,267,468.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Illiquid security. At the period end, the value of these amounted to $119,734 or 0.1% of net assets.
(c)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
GO —		General obligation
Reg’d —		Registered
REIT —		Real Estate Investment Trust

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$160,588,969		$—		$—		$160,588,969
China(a)		1,270,815		—		—		1,270,815
Capital Goods		163,005		—		71,070		234,075
Consumer Durables & Apparel		—		—		24,458		24,458
Hong Kong(a)		5,123,015		—		—		5,123,015
Materials		509,808		—		117,949		627,757
Preferred Stock(a)		762,370		—		—		762,370
Rights(a)		—		—		480		480
Other Investment Companies(a)		571,882		—		—		571,882

Total		$168,989,864		$—		$213,957		$169,203,821

Other Financial Instruments
Collateral Invested for Securities on Loan		$6,627,995		$—		$—		$6,627,995


(a)		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:


	Balance					Change in												Balance
	as of		Realized			Unrealized								Gross		Gross		as of
	August 31,		Gains			Gains			Gross		Gross			Transfers		Transfers		February 29,
Investments in Securities	2011		(Losses)			(Losses)			Purchases		Sales			in*		out*		2012

Common Stock
China		$63,455		$—			($34,360	)		$6,218		$—			$60,215		$—		$95,528
Hong Kong		47,513		(33,059	)		55,511			55,760		(7,776	)		—		—		117,949
Rights
Norway		—		—			480			—		—			—		—		480

Total		$110,968		($33,059	)		$21,631			$61,978		($7,776	)		$60,215		$—		$213,957


*		All security transfers in and out of Level 3 from Level 1 or Level 2 were the result of fair valued securities for which no quoted value was available.

All net realized and change in unrealized gains (losses) on Level 3 investments in the tables above are reflected on the accompanying Statements of Operations. Changes in net unrealized gains (losses) for Level 3 investments held by the fund at February 29, 2012 are $4,022.

There were no significant transfers between Level 1 and Level 2 for the period ended February 29, 2012.

See financial notes 49

Schwab International Small-Cap Equity ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $165,924,542) including securities on loan of $6,240,363		$169,203,821
Collateral invested for securities on loan		6,627,995
Foreign currency, at value (cost $575,475)		580,838
Receivables:
Fund shares sold		7,965,098
Dividends		215,072
Foreign tax reclaims		24,581
Income from securities on loan	+	11,736

Total assets		184,629,141

Liabilities

Collateral held for securities on loan		6,627,995
Payables:
Investments bought		7,968,043
Investment adviser fees	+	4,642

Total liabilities		14,600,680

Net Assets

Total assets		184,629,141
Total liabilities	−	14,600,680

Net assets		$170,028,461

Net Assets by Source
Capital received from investors		174,502,918
Distributions in excess of net investment income		(1,388,355	)
Net realized capital losses		(6,371,042	)
Net unrealized capital gains		3,284,940

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$170,028,461

6,400,001

$26.57

50 See financial notes

Schwab International Small-Cap Equity ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (net of foreign withholding tax of $104,829)		$1,426,692
Interest		133
Securities on loan	+	65,813

Total investment income		1,492,638

Expenses

Investment adviser fees		256,451

Total expenses	−	256,451

Net investment income		1,236,187

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(6,681,011	)
Net realized gains on in-kind redemptions		2,225,079
Net realized losses on foreign currency transactions	+	(36,315	)

Net realized losses		(4,492,247	)
Net unrealized gains on investments		3,154,386
Net unrealized gains on foreign currency translations	+	4,899

Net unrealized gains	+	3,159,285

Net realized and unrealized losses		(1,332,962	)

Net decrease in net assets resulting from operations		($96,775	)

See financial notes 51

Schwab International Small-Cap Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$1,236,187			$3,146,034
Net realized gains (losses)		(4,492,247	)		1,158,799
Net unrealized gains	+	3,159,285			2,001,625

Net increase (decrease) in net assets resulting from operations		(96,775	)		6,306,458

Distributions to Shareholders

Distributions from net investment income		($4,859,831	)		($2,126,721	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

900,000

$23,266,002

3,800,000

$110,560,371

Shares Redeemed

(400,000

)

(10,419,635

)

(400,000

)

(11,449,115

)

Net transactions in fund shares

500,000

$12,846,367

3,400,000

$99,111,256

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

5,900,001

$162,138,700

2,500,001

$58,847,707

Total increase

500,000

7,889,761

3,400,000

103,290,993

End of period

6,400,001

$170,028,461

5,900,001

$162,138,700

(Distributions in excess of net investment income)/
Net investment income not yet distributed

($1,388,355

)

$2,235,289

52 See financial notes

Schwab Emerging Markets Equity ETF™

Financial Statements

Financial Highlights


	9/1/11–			9/1/10–			1/13/10¹–
	2/29/12*			8/31/11			8/31/10


Per-Share Data ($)

Net asset value at beginning of period		26.10			24.30			25.00

Income (loss) from investment operations:
Net investment income (loss)		0.12			0.62			0.27
Net realized and unrealized gains (losses)		1.03			1.41	²		(0.97	)

Total from investment operations		1.15			2.03			(0.70	)
Less distributions:
Distributions from net investment income		(0.57	)		(0.23	)		—

Net asset value at end of period		26.68			26.10			24.30

Total return (%)		4.86	³		8.31			(2.80	)³

Ratios/Supplemental Data (%)

Ratios to average net assets:
Net operating expenses		0.25	⁴		0.25			0.30	^4,5
Gross operating expenses		0.25	⁴		0.25			0.30	⁴
Net investment income (loss)		1.39	⁴		2.78			2.94	⁴
Portfolio turnover rate⁶		4	³		9			23	³
Net assets, end of period ($ x 1,000)		562,880			396,661			148,222

* Unaudited.

¹ Commencement of operations.

³ Not annualized.

⁴ Annualized.

⁵ Effective June 14, 2010, the annual operating expense was reduced. The ratio presented for period ended 8/31/10 is a blended rate.

⁶ Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

See financial notes 53

Schwab Emerging Markets Equity ETF

Portfolio Holdings as of February 29, 2012 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date.


				Cost		Value
Holdings by Category				($)		($)

	93	.5%	Common Stock		501,838,415		526,538,639
	0	.0%	Corporate Bonds		500		305
	5	.8%	Preferred Stock		30,330,967		32,447,810
	0	.5%	Other Investment Company		2,727,804		2,727,804


	99	.8%	Total Investments		534,897,686		561,714,558
	1	.1%	Collateral Invested for Securities on Loan		6,322,107		6,322,107
	(0	.9)%	Other Assets and Liabilities, Net				(5,156,782	)


	100	.0%	Net Assets				562,879,883


	Number		Value
Security	of Shares		($)

Common Stock 93.5% of net assets

Brazil 13.4%


Banks 1.8%
Banco Bradesco S.A. ADR		303,840		5,511,657
Banco do Brasil S.A.		168,800		2,718,458
Banco Santander Brasil S.A. ADR		119,426		1,275,470
Itau Unibanco Holding S.A.		21,100		389,580

				9,895,165


Capital Goods 0.3%
Embraer S.A. ADR		31,650		951,399
Weg S.A.		42,200		469,462

				1,420,861


Consumer Durables & Apparel 0.3%
Cyrela Brazil Realty S.A.		51,484		519,368
MRV Engenharia e Participacoes S.A.		50,640		408,506
PDG Realty S.A. Empreendimentos e Participacoes		189,056		808,242

				1,736,116


Consumer Services 0.0%
Anhanguera Educacional Participacoes S.A.		19,834		260,734


Diversified Financials 0.5%
BM&F BOVESPA S.A.		333,380		2,231,077
CETIP S.A. - Mercados Organizados		16,880		314,614

				2,545,691


Energy 4.3%
HRT Participacoes em Petroleo S.A. *		302		119,963
OGX Petroleo e Gas Participacoes S.A. *		189,900		1,880,307
OSX Brasil S.A. *		8,696		79,773
Petroleo Brasileiro S.A. ADR		730,271		21,198,514
Ultrapar Participacoes S.A. ADR		51,062		1,144,810

				24,423,367


Food, Beverage & Tobacco 1.0%
BRF - Brasil Foods S.A. ADR		132,719		2,775,154
Companhia de Bebidas das Americas ADR		21,100		713,180
Cosan S.A. Industria e Comercio		21,100		377,905
JBS S.A. *		88,620		376,799
Souza Cruz S.A.		105,500		1,579,827

				5,822,865


Health Care Equipment & Services 0.0%
Amil Participacoes S.A.		21,100		243,334


Household & Personal Products 0.2%
Natura Cosmeticos S.A.		42,200		995,211


Insurance 0.1%
Porto Seguro S.A.		16,880		211,381
Sul America S.A.		10,550		116,137

				327,518


Materials 1.9%
Braskem S.A. ADR (a)		21,100		389,506
Companhia Siderurgica Nacional S.A. ADR		179,139		1,830,801
Duratex S.A.		50,332		281,723
Fibria Celulose S.A. ADR (a)		10,550		97,166
Gerdau S.A.		21,100		179,428
Gerdau S.A. ADR		134,618		1,400,027
MMX Mineracao e Metalicos S.A. *		42,200		236,943
Usinas Siderurgicas de Minas Gerais S.A.		42,200		378,519
Vale S.A. ADR		242,650		6,100,221

				10,894,334


Real Estate 0.2%
BR Malls Participacoes S.A.		65,912		844,967


Retailing 0.2%
B2W Cia Global Do Varejo		11,715		75,057
Lojas Americanas S.A.		14,770		139,794
Lojas Renner S.A.		21,100		803,493

				1,018,344


Software & Services 0.5%
Cielo S.A.		33,572		1,200,606
Redecard S.A.		84,400		1,754,954

				2,955,560


Telecommunication Services 0.5%
Oi S.A. ADR		19,201		384,020
Tele Norte Leste Participacoes S.A. ADR		46,420		498,551
Telefonica Brasil S.A. ADR (a)		32,705		962,508
Tim Participacoes S.A.		42,225		255,529

54 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Tim Participacoes S.A. ADR		32,704		982,755

				3,083,363


Transportation 0.6%
All America Latina Logistica S.A.		127,444		738,580
CCR S.A.		253,200		2,023,358
LLX Logistica S.A. *		42,200		89,960
TAM S.A. ADR		14,981		352,203

				3,204,101


Utilities 1.0%
Centrais Eletricas Brasileiras S.A. ADR		42,200		456,182
Companhia de Saneamento Basico do Estado de Sao Paulo ADR		8,440		634,013
Companhia Energetica de Minas Gerais ADR		69,630		1,589,653
Companhia Paranaense de Energia ADR		21,100		524,968
CPFL Energia S.A. ADR (a)		20,889		677,012
EDP - Energias do Brasil S.A.		21,100		516,163
Light S.A.		21,100		334,277
Tractebel Energia S.A.		42,200		746,716

				5,478,984

				75,150,515

Chile 2.3%


Banks 0.4%
Banco de Chile ADR (a)		8,440		806,020
Banco de Credito e Inversiones		4,220		277,271
Banco Santander Chile ADR		10,972		888,842
Corpbanca S.A.		26,618,494		374,297

				2,346,430


Capital Goods 0.2%
Empresas Copec S.A.		78,492		1,351,560


Food & Staples Retailing 0.2%
Cencosud S.A.		130,609		852,689


Food, Beverage & Tobacco 0.0%
Cia Cervecerias Unidas S.A.		10,550		152,588


Materials 0.5%
Cap S.A.		20,678		893,494
Empresas CMPC S.A.		160,360		704,658
Sociedad Quimica y Minera de Chile S.A. ADR		22,577		1,336,107

				2,934,259


Retailing 0.3%
S.A.C.I. Falabella S.A.		139,893		1,396,295


Telecommunication Services 0.0%
Empresa Nacional de Telecomunicaciones S.A.		8,440		173,074


Transportation 0.2%
Lan Airlines S.A. ADR (a)		42,200		1,135,180


Utilities 0.5%
Colbun S.A.		1,933,393		567,395
Empresa Nacional de Electricidad S.A. ADR		23,026		1,216,694
Enersis S.A. ADR		42,200		852,862

				2,636,951

				12,979,026

China 17.0%


Automobiles & Components 0.3%
Dongfeng Motor Group Co., Ltd., H Shares		492,000		960,439
Great Wall Motor Co., Ltd., H Shares (a)		316,500		637,432
Guangzhou Automobile Group Co., Ltd., H Shares		215,662		253,877

				1,851,748


Banks 4.9%
Agricultural Bank of China Ltd., H Shares		2,954,000		1,470,201
Bank of China Ltd., H Shares		12,027,000		5,256,976
Bank of Communications Co., Ltd., H Shares		1,360,200		1,122,436
China CITIC Bank Corp., Ltd., H Shares		1,750,800		1,146,778
China Construction Bank Corp., H Shares		10,972,000		9,252,148
China Merchants Bank Co., Ltd., H Shares		527,500		1,209,298
China Minsheng Banking Corp., Ltd., H Shares (a)		844,100		819,536
Industrial & Commercial Bank of China Ltd., H Shares		9,917,000		7,275,646

				27,553,019


Capital Goods 0.9%
Beijing Enterprises Holdings Ltd.		105,500		670,623
China Communications Construction Co., Ltd., H Shares		844,000		864,056
China International Marine Containers (Group) Co., Ltd., B Shares		358,700		513,373
China Railway Construction Corp., Ltd., H Shares		105,500		82,706
China Railway Group Ltd., H Shares		211,000		85,426
Citic Pacific Ltd. (a)		211,000		396,661
CITIC Resources Holdings Ltd. *		422,000		75,088
CSR Corp., Ltd., H Shares (a)		450,000		353,353
Metallurgical Corp. of China Ltd., H Shares (a)		291,000		79,169
Shanghai Electric Group Co., Ltd.		422,000		227,985
Shanghai Industrial Holdings Ltd.		211,000		767,203
Shanghai Zhenhua Heavy Industry Co., Ltd., B Shares *		654,100		302,194
Weichai Power Co., Ltd. (a)		25,000		137,963
Zoomlion Heavy Industry Science and Technology Co., Ltd., H Shares (a)		184,500		285,467

				4,841,267

See financial notes 55

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.0%
CITIC Securities Co., Ltd. *(a)		30,000		66,454


Energy 3.6%
China Coal Energy Co., H Shares		633,000		812,093
China Oilfield Services Ltd., H Shares		422,000		738,909
China Petroleum & Chemical Corp., H Shares		3,111,000		3,561,984
China Shenhua Energy Co., Ltd., H Shares		422,000		1,945,215
CNOOC Ltd.		2,401,000		5,498,119
Inner Mongolia Yitai Coal Co., Ltd., B Shares		168,800		955,070
Kunlun Energy Co., Ltd.		422,000		708,439
PetroChina Co., Ltd., H Shares		3,376,000		5,101,631
Yanzhou Coal Mining Co., Ltd., H Shares		422,000		1,056,673

				20,378,133


Food, Beverage & Tobacco 0.1%
China Agri-Industries Holdings Ltd.		211,000		159,154
Tsingtao Brewery Co., Ltd. (a)		60,000		323,762
Yantai Changyu Pioneer Wine Co., Ltd.		21,100		232,256

				715,172


Health Care Equipment & Services 0.2%
Shandong Weigao Group Medical Polymer Co., Ltd.		176,000		174,282
Shanghai Pharmaceuticals Holding Co., Ltd. *		105,500		194,249
Sinopharm Group Co., H Shares		186,000		506,028

				874,559


Insurance 1.7%
China Life Insurance Co., Ltd., H Shares		1,266,000		3,950,282
China Pacific Insurance (Group) Co., Ltd., H Shares		184,500		664,901
China Taiping Insurance Holdings Co., Ltd. *		211,000		492,969
New China Life Insurance Co., Ltd. *(a)		27,300		120,384
PICC Property & Casualty Co., Ltd., H Shares		844,000		1,190,526
Ping An Insurance (Group) Co., of China Ltd., H Shares		336,500		2,943,838

				9,362,900


Materials 0.8%
Aluminum Corp. of China Ltd., H Shares (a)		422,000		233,426
Angang Steel Co., Ltd., H Shares (a)		150,000		117,011
Anhui Conch Cement Co., Ltd., H Shares (a)		211,000		733,196
BBMG Corp., H Shares		211,000		223,360
China Bluechemical Ltd., H Shares		844,000		659,468
China National Building Material Co., Ltd., H Shares		422,000		610,498
Jiangxi Copper Co., Ltd., H Shares		214,000		587,723
Sinofert Holdings Ltd.		844,000		253,558
Zhaojin Mining Industry Co., Ltd.		105,500		217,646
Zijin Mining Group Co., Ltd., H Shares (a)		1,266,000		607,233

				4,243,119


Real Estate 0.8%
China Overseas Land & Investment Ltd. (a)		844,000		1,767,289
China Resources Land Ltd. (a)		422,000		804,203
China Vanke Co., Ltd., B Shares		443,100		571,322
Guangzhou R&F Properties Co., Ltd., H Shares (a)		422,000		557,175
Sino-Ocean Land Holdings Ltd. (a)		844,000		485,351
Yuexiu Property Co., Ltd.		2,110,000		424,410

				4,609,750


Retailing 0.1%
China Resources Enterprise Ltd.		178,000		663,280


Technology Hardware & Equipment 0.3%
BYD Co., Ltd., H Shares *(a)		40,000		131,259
Lenovo Group Ltd.		1,266,000		1,118,158
ZTE Corp., H Shares (a)		144,360		431,831

				1,681,248


Telecommunication Services 2.4%
China Mobile Ltd.		949,500		10,155,244
China Telecom Corp., Ltd., H Shares		3,376,000		2,054,582
China Unicom (Hong Kong) Ltd.		844,000		1,521,348

				13,731,174


Transportation 0.6%
Air China Ltd., H Shares		844,000		637,704
China COSCO Holdings Co., Ltd., H Shares (a)		548,500		359,269
China Merchants Holdings International Co., Ltd.		422,000		1,458,231
Cosco Pacific Ltd.		422,000		637,704
Jiangsu Expressway Co., Ltd., H Shares		96,000		100,509
Zhejiang Expressway Co., Ltd., H Shares		422,000		319,940

				3,513,357


Utilities 0.3%
China Longyuan Power Group Corp., H Shares		422,000		365,646
China Resources Power Holdings Co., Ltd.		422,000		830,321
Datang International Power Generation Co., Ltd., H Shares (a)		1,266,000		458,690

				1,654,657

				95,739,837

Colombia 1.1%


Banks 0.3%
Bancolombia S.A. ADR		25,320		1,617,948

56 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Diversified Financials 0.2%
Corporacion Financiera Colombiana S.A.		24,898		477,434
Grupo de Inversiones Suramericana S.A.		27,430		503,374

				980,808


Energy 0.5%
Ecopetrol S.A. ADR		45,365		2,639,789


Food & Staples Retailing 0.0%
Almacenes Exito S.A.		14,770		209,999


Materials 0.1%
Cementos Argos S.A.		42,200		259,729
Inversiones Argos S.A.		46,420		440,348

				700,077


Utilities 0.0%
Interconexion Electrica S.A. ESP		33,760		217,315

				6,365,936

Czech Republic 0.4%


Banks 0.1%
Komercni Banka A/S		2,743		538,651


Telecommunication Services 0.0%
Telefonica O2 Czech Republic A/S		11,394		248,507


Utilities 0.3%
CEZ A/S		33,760		1,461,762

				2,248,920

Egypt 0.5%


Banks 0.1%
Commercial International Bank GDR		128,710		514,840


Capital Goods 0.2%
Orascom Construction Industries GDR		29,329		1,322,151


Telecommunication Services 0.2%
Orascom Telecom Holding SAE GDR - Reg’d *		188,435		649,912
Orascom Telecom Media And Technology Holding SAE GDR - Reg’d (b)(c)		176,826		230,168

				880,080

				2,717,071

Hong Kong 0.1%


Automobiles & Components 0.1%
Brilliance China Automotive Holdings Ltd. *(a)		422,000		492,425


Diversified Financials 0.0%
China Everbright Ltd.		50,000		94,124


Materials 0.0%
China Resources Cement Holdings Ltd. (a)		100,000		84,196

				670,745

Hungary 0.4%


Banks 0.2%
OTP Bank Nyrt. plc		51,906		964,189


Energy 0.1%
MOL Hungarian Oil and Gas Nyrt. *		10,550		916,634


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
Richter Gedeon Nyrt.		2,321		419,495

				2,300,318

India 9.8%


Automobiles & Components 0.7%
Bajaj Auto Ltd.		43,677		1,609,035
Hero Honda Motors Ltd.		13,505		537,334
Mahindra & Mahindra Ltd.		39,246		569,351
Maruti Suzuki India Ltd.		12,660		325,477
Tata Motors Ltd.		148,755		823,146

				3,864,343


Banks 1.7%
Axis Bank Ltd.		54,438		1,309,578
Bank of Baroda		15,682		257,260
Canara Bank Ltd.		56,126		584,049
HDFC Bank Ltd.		178,295		1,891,724
Housing Development Finance Corp., Ltd.		179,350		2,427,135
ICICI Bank Ltd.		93,262		1,723,092
Oriental Bank of Commerce		56,548		323,354
State Bank of India		24,265		1,114,230
Union Bank of India Ltd.		42,413		200,815

				9,831,237


Capital Goods 0.7%
Adani Enterprises Ltd.		37,136		283,540
Bharat Heavy Electricals Ltd.		118,160		736,179
Crompton Greaves Ltd.		65,208		189,131
Cummins India Ltd.		25,320		243,436
Jaiprakash Associates Ltd.		196,863		306,883
Larsen & Toubro Ltd.		72,373		1,927,092
Siemens India Ltd.		12,871		207,470

				3,893,731


Consumer Durables & Apparel 0.1%
Titan Industries Ltd.		103,390		479,927


Diversified Financials 0.3%
Bajaj Holdings & Investment Ltd.		24,265		397,568
Infrastructure Development Finance Co., Ltd.		197,496		571,614
Kotak Mahindra Bank Ltd.		53,172		594,428
Rural Electrification Corp., Ltd.		42,200		185,556
Shriram Transport Finance Co., Ltd.		8,440		94,526

				1,843,692


Energy 1.3%
Bharat Petroleum Corp., Ltd.		31,017		418,961
Cairn India Ltd. *		38,824		293,457
Coal India Ltd.		73,850		503,886
Hindustan Petroleum Corp., Ltd.		58,658		375,813
Indian Oil Corp., Ltd.		58,236		338,413

See financial notes 57

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Oil & Natural Gas Corp., Ltd.		191,588		1,146,166
Reliance Industries Ltd.		250,246		4,160,895
The Great Eastern Shipping Co., Ltd.		50,218		247,043

				7,484,634


Food, Beverage & Tobacco 0.8%
ITC Ltd.		917,428		3,896,402
Nestle India Ltd.		5,486		493,639

				4,390,041


Household & Personal Products 0.2%
Colgate-Palmolive (India) Ltd.		16,880		362,329
Hindustan Unilever Ltd.		116,894		908,725

				1,271,054


Materials 0.9%
Asian Paints Ltd.		2,110		136,476
Hindalco Industries Ltd.		276,199		838,854
Jindal Steel & Power Ltd.		72,373		860,768
JSW Steel Ltd.		35,448		585,857
NMDC Ltd.		82,712		302,681
Sesa Goa Ltd.		72,795		318,524
Sterlite Industries (India) Ltd. ADR		94,317		935,625
Tata Chemicals Ltd.		56,548		419,293
Tata Steel Ltd.		41,356		399,848
Ultratech Cement Ltd.		14,770		421,417

				5,219,343


Media 0.1%
Zee Entertainment Enterprises Ltd.		110,564		288,649


Pharmaceuticals, Biotechnology & Life Sciences 0.5%
Cipla Ltd.		110,142		711,282
Dr. Reddys Laboratories Ltd.		17,302		576,886
Lupin Ltd.		65,410		643,156
Piramal Healthcare Ltd.		13,715		127,048
Sun Pharmaceutical Industries Ltd.		60,135		674,847

				2,733,219


Real Estate 0.1%
DLF Ltd.		83,767		385,848
Housing Development & Infrastructure Ltd. *		42,200		98,030

				483,878


Software & Services 1.4%
HCL Technologies Ltd.		41,356		409,214
Infosys Technologies Ltd.		87,776		5,142,087
Mphasis Ltd.		12,660		111,385
Tata Consultancy Services Ltd.		51,484		1,282,531
Wipro Ltd. ADR		66,704		732,410

				7,677,627


Telecommunication Services 0.4%
Bharti Airtel Ltd.		257,420		1,838,339
Idea Cellular Ltd. *		279,364		539,233
Reliance Communications Ltd.		42,200		81,068

				2,458,640


Transportation 0.1%
Adani Ports and Special Economic Zone Ltd.		63,300		190,248
Container Corp. Of India Ltd.		4,220		83,268

				273,516


Utilities 0.5%
Adani Power Ltd. *		104,656		162,291
GAIL India Ltd.		70,052		533,573
NHPC Ltd.		211,000		91,702
NTPC Ltd.		247,503		917,089
Power Grid Corp. of India Ltd.		202,771		467,519
Reliance Power Ltd. *		117,738		287,318
Tata Power Co., Ltd.		211,000		499,408
Torrent Power Ltd.		10,550		47,562

				3,006,462

				55,199,993

Indonesia 3.0%


Automobiles & Components 0.6%
PT Astra International Tbk		453,000		3,558,210


Banks 0.8%
Bank Danamon Indonesia Tbk PT		211,000		104,681
PT Bank Central Asia Tbk		2,004,500		1,688,936
PT Bank Mandiri Tbk		1,371,959		981,057
PT Bank Negara Indonesia (Persero) Tbk		633,316		265,052
PT Bank Rakyat Indonesia (Persero) Tbk		2,110,000		1,614,080

				4,653,806


Capital Goods 0.3%
PT United Tractors Tbk		422,000		1,356,763


Energy 0.3%
PT Adaro Energy Tbk		1,477,000		314,395
PT Bumi Resources Tbk		3,481,500		945,640
PT Tambang Batubara Bukit Asam Tbk		211,000		485,393

				1,745,428


Food, Beverage & Tobacco 0.3%
Charoen Pokphand Indonesia Tbk PT		1,055,000		312,874
PT Astra Agro Lestari Tbk		94,950		234,743
PT Gudang Garam Tbk		80,180		504,459
PT Indofood Sukses Makmur Tbk		761,900		430,786

				1,482,862


Household & Personal Products 0.1%
PT Unilever Indonesia Tbk		253,000		539,939


Materials 0.2%
PT Aneka Tambang Tbk		738,500		160,472
PT Indocement Tunggal Prakarsa Tbk		211,000		408,199
PT Semen Gresik (Persero) Tbk		422,000		526,330
Vale Indonesia Tbk		527,500		211,994

				1,306,995


Pharmaceuticals, Biotechnology & Life Sciences 0.1%
PT Kalbe Farma Tbk		1,055,000		409,368

58 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.2%
PT Telekomunikasi Indonesia Tbk		1,688,000		1,319,335


Utilities 0.1%
PT Perusahaan Gas Negara		1,688,000		701,774

				17,074,480

Malaysia 4.5%


Automobiles & Components 0.1%
UMW Holdings Berhad		194,700		464,732


Banks 1.4%
Alliance Financial Group Berhad		341,000		441,689
CIMB Group Holdings Berhad		849,200		2,029,802
Hong Leong Bank Berhad		111,100		448,777
Malayan Banking Berhad		807,400		2,358,454
Public Bank Berhad - Foreign Market		550,741		2,507,798
RHB Capital Berhad		111,100		294,857

				8,081,377


Capital Goods 0.6%
Gamuda Berhad		466,400		568,306
IJM Corp. Berhad		219,500		430,866
Sime Darby Berhad		696,300		2,252,428

				3,251,600


Consumer Services 0.4%
Berjaya Sports Toto Berhad		194,700		284,689
Genting Berhad		445,500		1,576,465
Genting Malaysia Berhad		500,200		652,906

				2,514,060


Diversified Financials 0.2%
AMMB Holdings Berhad		424,600		868,903


Food, Beverage & Tobacco 0.5%
British American Tobacco Malaysia Berhad		21,100		367,691
IOI Corp. Berhad		765,600		1,380,150
Kuala Lumpur Kepong Berhad		90,200		705,219
PPB Group Berhad		90,200		517,924

				2,970,984


Materials 0.2%
Lafarge Malayan Cement Berhad		63,300		151,726
Petronas Chemicals Group Berhad		379,800		849,494

				1,001,220


Real Estate 0.1%
SP Setia Berhad		351,800		462,725
UEM Land Holdings Berhad *		211,000		162,714

				625,439


Telecommunication Services 0.6%
Axiata Group Berhad		1,037,300		1,790,299
Digi.com Berhad		844,000		1,132,659
Maxis Berhad		361,900		715,222

				3,638,180


Transportation 0.1%
MISC Berhad		278,860		523,182


Utilities 0.3%
Petronas Gas Berhad		126,600		710,025
Tenaga Nasional Berhad		211,250		442,881
YTL Power International Berhad		379,800		235,830

				1,388,736

				25,328,413

Mexico 5.3%


Banks 0.4%
Grupo Financiero Banorte S.A.B. de C.V., O Shares		337,600		1,372,519
Grupo Financiero Inbursa S.A.B. de C.V., O Shares		337,600		667,783

				2,040,302


Capital Goods 0.2%
Alfa S.A.B., A Shares		33,660		452,511
Grupo Carso S.A.B. de C.V., Series A1		147,700		461,905

				914,416


Diversified Financials 0.0%
Inmuebles Carso SAB de C.V., Series B1 *		189,900		159,902


Food & Staples Retailing 0.6%
Wal-Mart de Mexico S.A.B. de C.V., Series V		1,097,200		3,428,723


Food, Beverage & Tobacco 0.7%
Fomento Economico Mexicano S.A.B. de C.V.		337,600		2,492,441
Grupo Bimbo S.A.B. de C.V., Series A		253,200		570,123
Grupo Modelo S.A.B. de C.V., Series C		105,500		692,446

				3,755,010


Household & Personal Products 0.1%
Kimberly-Clark de Mexico S.A.B. de C.V., A Shares		84,400		472,199


Materials 1.3%
Cemex S.A.B. de C.V., Series CPO *		1,521,602		1,170,600
Grupo Mexico S.A.B. de C.V., Series B		1,247,326		3,944,673
Industrias Penoles S.A.B. de C.V.		26,375		1,305,295
Mexichem S.A.B. de C.V.		105,500		383,217
Minera Frisco SAB de C.V., Series A1 *		126,600		554,286

				7,358,071


Media 0.3%
Grupo Televisa S.A., Series CPO		464,200		1,990,284


Retailing 0.1%
Grupo Elektra S.A.B. de C.V.		9,495		826,975


Telecommunication Services 1.5%
America Movil S.A.B. de C.V., Series L		6,878,600		8,298,096

See financial notes 59

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Transportation 0.1%
Grupo Aeroportuario del Pacifico S.A.B. de C.V., B Shares		84,400		317,329

				29,561,307

Morocco 0.1%


Telecommunication Services 0.1%
Maroc Telecom		38,824		653,860

Pakistan 0.0%


Energy 0.0%
Oil & Gas Development Co., Ltd. GDR - Reg’d (c)(d)		9,984		164,736

Peru 0.5%


Banks 0.2%
Credicorp Ltd.		9,073		1,114,981


Materials 0.3%
Companhia de Minas Buenaventura S.A. ADR		40,723		1,634,214

				2,749,195

Philippines 0.7%


Banks 0.2%
Bank of the Philippine Islands		365,269		569,839
BDO Unibank, Inc.		164,580		252,134

				821,973


Capital Goods 0.2%
Aboitiz Equity Ventures, Inc.		147,700		164,783
SM Investments Corp.		46,420		692,147

				856,930


Diversified Financials 0.0%
Ayala Corp.		21,100		197,897


Real Estate 0.1%
Ayala Land, Inc.		844,000		404,678
SM Prime Holdings, Inc.		844,000		322,952

				727,630


Telecommunication Services 0.1%
Philippine Long Distance Telephone Co.		8,440		564,180


Utilities 0.1%
Aboitiz Power Corp.		422,000		315,846
Manila Electric Co.		73,850		455,312

				771,158

				3,939,768

Poland 1.3%


Banks 0.5%
Bank Handlowy w Warszawie S.A.		9,073		227,670
Bank Pekao S.A.		18,990		953,654
Get Bank S.A. *		312,553		182,985
Getin Holding S.A. *		106,787		81,621
Powszechna Kasa Oszczednosci Bank Polski S.A.		94,317		1,043,007

				2,488,937


Energy 0.1%
Polski Koncern Naftowy Orlen S.A. *		44,943		519,222


Insurance 0.2%
Powszechny Zaklad Ubezpieczen S.A.		10,550		1,149,175


Materials 0.2%
KGHM Polska Miedz S.A.		24,054		1,152,414


Telecommunication Services 0.1%
Telekomunikacja Polska S.A.		101,913		563,172


Utilities 0.2%
Polska Grupa Energetyczna S.A.		167,534		1,081,638
Tauron Polska Energia S.A.		91,996		152,601

				1,234,239

				7,107,159

Russia 6.7%


Banks 1.0%
Sberbank of Russia *		339,710		4,716,983
VTB Bank OJSC GDR - Reg’d		197,918		1,001,465

				5,718,448


Consumer Durables & Apparel 0.0%
PIK Group GDR - Reg’d *		74,768		199,930


Energy 4.2%
Gazprom ADR		724,574		9,600,606
LUKOIL ADR		98,959		6,348,220
NovaTek OAO GDR - Reg’d		15,192		2,204,359
Rosneft Oil Co. GDR - Reg’d		313,757		2,426,910
Surgutneftegas ADR		115,206		1,221,184
Tatneft ADR		42,833		1,712,035

				23,513,314


Materials 0.8%
Mining & Metallurgical Co., Norilsk Nickel ADR		80,180		1,588,366
Novolipetsk Steel GDR - Reg’d		21,733		520,940
Severstal GDR - Reg’d		47,264		727,865
Uralkali GDR - Reg’d		39,246		1,595,350

				4,432,521


Telecommunication Services 0.4%
Mobile TeleSystems ADR		77,015		1,405,524
Rostelecom ADR *		38,824		1,160,449

				2,565,973


Utilities 0.3%
Federal Hydrogenerating Co. ADR		357,012		1,474,102

				37,904,288

South Africa 10.1%


Banks 1.0%
ABSA Group Ltd.		57,814		1,237,730
Nedbank Group Ltd.		41,145		886,996

60 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Standard Bank Group Ltd.		254,255		3,773,111

				5,897,837


Capital Goods 0.5%
Aveng Ltd.		83,134		403,942
Barloworld Ltd.		47,897		573,399
Bidvest Group Ltd.		55,704		1,314,504
Reunert Ltd.		36,292		339,528

				2,631,373


Consumer Durables & Apparel 0.2%
Steinhoff International Holdings Ltd. *		281,927		1,016,045


Consumer Services 0.0%
Sun International Ltd.		22,155		249,646


Diversified Financials 0.9%
African Bank Investments Ltd.		126,600		667,648
FirstRand Ltd.		684,484		2,195,803
Investec Ltd.		53,383		352,963
Remgro Ltd.		81,235		1,451,505
RMB Holdings Ltd.		154,663		648,737

				5,316,656


Energy 0.9%
Sasol Ltd.		98,326		5,277,127


Food & Staples Retailing 0.5%
Clicks Group Ltd.		21,100		124,331
Massmart Holdings Ltd.		16,729		394,974
Pick n Pay Stores Ltd.		44,732		258,598
Shoprite Holdings Ltd.		86,721		1,583,052
The Spar Group Ltd.		37,558		580,999

				2,941,954


Food, Beverage & Tobacco 0.3%
AVI Ltd.		82,079		483,316
Tiger Brands Ltd.		26,586		929,593

				1,412,909


Health Care Equipment & Services 0.2%
Life Healthcare Group Holdings Ltd.		123,435		360,354
Mediclinic International Ltd.		42,200		203,914
Netcare Ltd.		234,421		432,645

				996,913


Insurance 0.5%
Discovery Holdings Ltd.		67,942		446,125
MMI Holdings Ltd.		256,411		656,670
Sanlam Ltd.		351,315		1,455,207

				2,558,002


Materials 2.2%
AECI Ltd.		25,742		318,881
African Rainbow Minerals Ltd.		15,192		389,476
Anglo Platinum Ltd.		16,458		1,307,901
AngloGold Ashanti Ltd.		58,869		2,573,889
ArcelorMittal South Africa Ltd.		26,586		232,666
Exxaro Resources Ltd.		14,137		400,379
Gold Fields Ltd.		121,958		1,944,728
Harmony Gold Mining Co., Ltd.		85,455		1,135,546
Impala Platinum Holdings Ltd.		95,372		2,139,092
Kumba Iron Ore Ltd.		15,192		1,163,859
Nampak Ltd.		135,673		428,861
Pretoria Portland Cement Co., Ltd.		99,381		421,524

				12,456,802


Media 0.6%
Naspers Ltd., N Shares		63,511		3,554,134


Pharmaceuticals, Biotechnology & Life Sciences 0.2%
Aspen Pharmacare Holdings Ltd. *		69,208		1,009,295


Real Estate 0.2%
Fountainhead Property Trust		278,252		270,775
Growthpoint Properties Ltd.		335,068		924,223

				1,194,998


Retailing 0.7%
Imperial Holdings Ltd.		37,775		747,266
Mr. Price Group Ltd.		42,200		505,367
The Foschini Group Ltd.		46,631		739,817
Truworths International Ltd.		77,015		835,564
Woolworths Holdings Ltd.		145,801		883,002

				3,711,016


Telecommunication Services 1.2%
MTN Group Ltd.		295,400		5,364,637
Telkom South Africa Ltd.		73,428		254,675
Vodacom Group (Pty) Ltd.		70,474		979,042

				6,598,354

				56,823,061

Taiwan 12.6%


Automobiles & Components 0.2%
Cheng Shin Rubber Industry Co., Ltd.		258,600		637,791
China Motor Corp.		50,000		55,535
Yulon Motor Co., Ltd.		227,000		478,772

				1,172,098


Banks 1.1%
Chang Hwa Commercial Bank		900,520		551,414
China Development Financial Holding Corp.		2,344,268		794,289
Chinatrust Financial Holding Co., Ltd.		1,818,989		1,237,576
E.Sun Financial Holding Co., Ltd.		882,946		483,584
First Financial Holding Co., Ltd.		982,071		629,747
Hua Nan Financial Holdings Co., Ltd.		1,280,160		759,926
Mega Financial Holding Co., Ltd.		1,498,280		1,167,186
Taiwan Cooperative Financial Holding *		844,000		554,130

				6,177,852


Capital Goods 0.3%
Far Eastern New Century Corp.		650,449		835,299
Taiwan Glass Industrial Corp.		226,700		278,015
Walsin Lihwa Corp.		844,000		328,746

				1,442,060


Commercial & Professional Services 0.0%
Taiwan Secom Co., Ltd.		48,000		98,789


Consumer Durables & Apparel 0.2%
Formosa Taffeta Co., Ltd.		211,000		211,387

See financial notes 61

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
Giant Manufacturing Co. Ltd.		38,000		163,526
Pou Chen Corp.		635,580		564,316

				939,229


Diversified Financials 0.5%
Capital Securities Corp.		652,629		288,616
Fubon Financial Holding Co., Ltd.		1,108,952		1,305,271
KGI Securities Co., Ltd.		428,019		192,198
Yuanta Financial Holding Co., Ltd. *		1,717,316		1,013,588

				2,799,673


Energy 0.1%
Formosa Petrochemical Corp.		251,000		827,388


Food & Staples Retailing 0.1%
President Chain Store Corp.		111,000		587,172


Food, Beverage & Tobacco 0.2%
Uni-President Enterprises Corp.		680,658		1,043,123


Insurance 0.3%
Cathay Financial Holding Co., Ltd.		1,081,716		1,273,213
Shin Kong Financial Holding Co., Ltd. *		1,291,151		437,470

				1,710,683


Materials 2.1%
Asia Cement Corp.		431,813		553,060
China Steel Corp.		1,762,719		1,828,920
Feng Hsin Iron & Steel Co.		60,000		105,729
Formosa Chemicals & Fibre Corp.		663,000		2,074,976
Formosa Plastics Corp.		1,055,000		3,301,810
Nan Ya Plastics Corp.		1,266,000		3,109,444
Oriental Union Chemical Corp.		50,000		69,567
Taiwan Cement Corp.		489,690		628,854
Taiwan Fertilizer Co., Ltd.		82,000		229,575

				11,901,935


Real Estate 0.0%
Cathay Real Estate Development Co. Ltd.		211,000		90,082


Semiconductors & Semiconductor Equipment 3.2%
Advanced Semiconductor Engineering, Inc.		1,055,015		1,033,625
Epistar Corp.		89,000		233,127
Macronix International Co., Ltd.		633,000		269,169
MediaTek, Inc.		211,099		2,161,546
MStar Semiconductor, Inc.		68,255		434,198
Novatek Microelectronics Corp.		32,000		95,795
Siliconware Precision Industries Co. ADR		134,407		775,529
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		801,800		11,642,136
United Microelectronics Corp. ADR		403,221		1,096,761

				17,741,886


Technology Hardware & Equipment 3.6%
Acer, Inc.		422,086		646,138
Advantech Co., Ltd.		47,500		159,971
Asustek Computer, Inc.		98,816		927,787
AU Optronics Corp. ADR		147,700		784,287
Catcher Technology Co., Ltd.		92,000		674,446
Cheng Uei Precision Industry Co., Ltd.		43,228		103,673
Chicony Electronics Co., Ltd.		66,050		136,162
Chimei Innolux Corp. *		844,000		455,076
Chunghwa Picture Tubes Ltd. *		422,000		32,013
CMC Magnetics Corp. *		422,000		82,115
Compal Communications, Inc.		211,000		485,940
Compal Electronics, Inc.		636,610		753,641
D-Link Corp.		120,000		94,094
Delta Electronics, Inc.		321,000		882,324
Foxconn Technology Co., Ltd.		227,817		1,050,116
HannStar Display Corp. *		633,000		74,937
Hon Hai Precision Industry Co., Ltd.		1,688,164		5,886,407
HTC Corp.		117,750		2,647,733
Inventec Co., Ltd.		639,450		304,541
Largan Precision Co., Ltd.		10,000		224,180
Lite-On Technology Corp.		422,692		574,451
Nan Ya Printed Circuit Board Corp.		30,000		75,418
Pegatron Corp.		237,441		323,093
Quanta Computer, Inc.		422,000		1,043,659
Synnex Technology International Corp.		217,053		550,090
Unimicron Technology Corp.		422,000		552,694
Wistron Corp.		442,468		736,794
Yageo Corp.		313,000		105,199

				20,366,979


Telecommunication Services 0.6%
Chunghwa Telecom Co. Ltd. ADR		61,190		1,860,788
Far EasTone Telecommunications Co., Ltd.		295,000		619,183
Taiwan Mobile Co., Ltd.		272,600		838,312

				3,318,283


Transportation 0.1%
China Airlines Ltd.		211,000		100,131
Eva Airways Corp.		261,000		178,019
Evergreen Marine Corp.		306,199		214,577
Yang Ming Marine Transport Corp.		226,200		131,583

				624,310

				70,841,542

Thailand 2.2%


Banks 0.7%
Bangkok Bank Public Co., Ltd. NVDR		84,400		504,755
Kasikornbank Public Co., Ltd. NVDR		253,200		1,225,634
Krung Thai Bank Public Co., Ltd. NVDR		1,012,800		582,280
Siam Commercial Bank Public Co., Ltd. NVDR		316,500		1,359,491

				3,672,160


Energy 0.7%
Banpu Public Co., Ltd. NVDR		21,100		451,769
IRPC PCL NVDR		2,553,100		399,858

62 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)
PTT Exploration & Production Public Co., Ltd. NVDR		211,000		1,286,288
PTT PCL NVDR		126,600		1,518,447

				3,656,362


Food & Staples Retailing 0.2%
CP ALL PCL NVDR		485,300		1,062,320


Food, Beverage & Tobacco 0.1%
Charoen Pokphand Foods Public Co., Ltd. NVDR		654,100		783,450


Materials 0.3%
Indorama Ventures PCL		211,000		280,613
PTT Global Chemical PCL		218,014		536,661
The Siam Cement Public Co., Ltd. NVDR		63,300		746,674

				1,563,948


Media 0.0%
BEC World PCL		147,700		215,950


Real Estate 0.0%
Central Pattana PCL		84,400		114,337


Telecommunication Services 0.2%
Advanced Info Service Public Co., Ltd. NVDR		189,900		1,003,932
Total Access Communication PCL		63,300		144,838

				1,148,770


Transportation 0.0%
Airports of Thailand PCL		63,300		110,328
Thai Airways International PCL		63,300		54,380

				164,708


Utilities 0.0%
Electricity Generating PCL		42,200		131,766

				12,513,771

Turkey 1.3%


Banks 0.6%
Akbank T.A.S.		253,027		1,017,354
Turkiye Garanti Bankasi A/S		202,771		771,156
Turkiye Halk Bankasi A/S		79,547		549,009
Turkiye Is Bankasi, C Shares		254,466		606,305
Yapi ve Kredi Bankasi A/S *		163,947		313,630

				3,257,454


Capital Goods 0.1%
Enka Insaat ve Sanayi A/S		35,941		102,721
Koc Holding A/S		186,102		775,980

				878,701


Diversified Financials 0.1%
Haci Omer Sabanci Holding A/S		116,683		505,240


Energy 0.1%
Tupras-Turkiye Petrol Rafinerileri A/S		19,834		490,752


Food & Staples Retailing 0.1%
BIM Birlesik Magazalar A/S		15,192		535,129


Food, Beverage & Tobacco 0.1%
Anadolu Efes Biracilik ve Malt Sanayii A/S		39,668		602,080


Materials 0.1%
Eregli Demir ve Celik Fabrikalari TAS (Erdemir)		212,568		499,172


Real Estate 0.0%
Emlak Konut Gayrimenkul Yatirim Ortakligi REIT		130,820		173,832


Telecommunication Services 0.1%
Turk Telekomunikasyon A/S		42,200		181,277
Turkcell Iletisim Hizmetleri A/S *		25,320		139,220

				320,497


Transportation 0.0%
Turk Hava Yollari Anonim Ortakligi (THY) *		153,186		233,383

				7,496,240

United Arab Emirates 0.2%


Diversified Financials 0.0%
Dubai Financial Market *		79,980		23,299


Real Estate 0.1%
Aldar Properties PJSC *		176,617		59,145
Emaar Properties PJSC		454,168		390,735

				449,880


Transportation 0.1%
DP World Ltd.		43,554		535,279

				1,008,458

Total Common Stock
(Cost $501,838,415)				526,538,639




Preferred Stock 5.8% of net assets

Brazil 5.8%


Banks 1.9%
Banco do Estado do Rio Grande do Sul		21,100		251,445
Itau Unibanco Holding S.A. ADR		365,452		7,692,764
Itausa - Investimentos Itau S.A.		435,715		3,045,361

				10,989,570


Food & Staples Retailing 0.2%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar ADR (a)		21,100		986,636


Food, Beverage & Tobacco 1.3%
Companhia de Bebidas das Americas ADR		177,240		7,091,372


Materials 1.9%
Bradespar S.A.		42,200		890,012
Klabin S.A.		105,500		524,766
Metalurgica Gerdau S.A.		42,200		561,634
Usinas Siderurgicas de Minas Gerais S.A., A Shares		84,400		572,695
Vale S.A. ADR		325,020		7,988,992

				10,538,099


Retailing 0.1%
Lojas Americanas S.A.		67,731		721,927

See financial notes 63

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued


	Number		Value
Security	of Shares		($)


Telecommunication Services 0.0%
Telemar Norte Leste S.A.		2,110		52,858


Utilities 0.4%
AES Tiete S.A.		21,100		312,770
Centrais Eletricas Brasileiras S.A. ADR		45,998		702,390
Cia de Transmissao de Energia Electrica Paulista		4,026		135,630
Companhia Energetica de Sao Paulo, B Shares		21,100		462,212
Eletropaulo Metropolitana S.A.		21,100		454,346

				2,067,348

Total Preferred Stock
(Cost $30,330,967)				32,447,810




Other Investment Company 0.5% of net assets

United States 0.5%
State Street Institutional U.S. Government Money Market Fund		2,727,804		2,727,804

Total Other Investment Company
(Cost $2,727,804)				2,727,804



Security	Face Amount		Value
Rate, Maturity Date	(local currency)		($)

Corporate Bonds 0.0% of net assets

India 0.0%


Pharmaceuticals, Biotechnology & Life Sciences 0.0%
Dr. Reddy’s Laboratories Ltd. 9.25%, 03/24/14 (INR)		285,360		305

Total Corporate Bond
(Cost $500)				305



End of Investments


	Number		Value
Security	of Shares		($)

Collateral Invested for Securities on Loan 1.1% of net assets


State Street Institutional U.S. Government Money Market Fund		6,322,107		6,322,107

Total Collateral Invested for Securities on Loan
(Cost $6,322,107)				6,322,107



End of Collateral Invested for Securities on Loan

At 2/29/12, the tax basis cost of the fund’s investments was $535,495,112 and the unrealized appreciation and depreciation were $48,744,745 and ($22,525,299), respectively, with a net unrealized appreciation of $26,219,446.


*		Non-income producing security.
(a)		All or a portion of this security is on loan.
(b)		Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registrations, normally to qualified institutional buyers. At the period end, the value of these amounted to $230,168 or 0.0% of net assets.
(c)		Illiquid security. At the period end, the value of these amounted to $394,904 or 0.1% of net assets.
(d)		Fair-valued by management in accordance with procedures approved by the Board of Trustees.


ADR —		American Depositary Receipt
GDR —		Global Depositary Receipt
NVDR —		Non-Voting Depositary Receipt
Reg’d —		Registered
REIT —		Real Estate Investment Trust
INR —		Indian Rupee

64 See financial notes

Schwab Emerging Markets Equity ETF

Portfolio Holdings (Unaudited) continued

The following is a summary of the inputs used to value the fund’s investments as of February 29, 2012 (see financial note 2(a) for additional information):


	Quoted Prices in				Significant
	Active Markets for		Significant Other		Unobservable
	Identical Assets		Observable Inputs		Inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total

Common Stock(a)		$526,373,903		$—		$—		$526,373,903
Pakistan(a)		—		—		164,736		164,736
Preferred Stock(a)		32,447,810		—		—		32,447,810
Other Investment Company(a)		2,727,804		—		—		2,727,804
Corporate Bonds(a)		—		305		—		305

Total		$561,549,517		$305		$164,736		$561,714,558

Other Financial Instruments
Collateral Invested for Securities on Loan		$6,322,107		$—		$—		$6,322,107


(a)		As categorized in Portfolio Holdings.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Balance

Change in

Balance

as of

Realized

Unrealized

Gross

as of

August 31,

Gains

Gross

Transfers

February 29,

Investments in Securities

2011

(Losses)

Purchases

Sales

in*

out*

2012

Common Stock

Pakistan

$—

$15,974

$—

$148,762

$—

$164,736

Total

$—

$15,974

$—

$148,762

$—

$164,736


*		All security transfers in and out of Level 3 from Level 1 or Level 2 were the result of fair valued securities for which no quoted value was available.

There were no significant transfers between Level 1 and Level 2 for the period ended February 29, 2012.

See financial notes 65

Schwab Emerging Markets Equity ETF

Statement of

Assets and Liabilities

As of February 29, 2012; unaudited



Assets

Investments, at value (cost $534,897,686) including securities on loan of $5,939,609		$561,714,558
Collateral invested for securities on loan		6,322,107
Foreign currency, at value (cost $597,850)		604,741
Receivables:
Dividends		718,886
Income from securities on loan		10,696
Foreign tax reclaims		1,048
Interest	+	508

Total assets		569,372,544

Liabilities

Collateral held for securities on loan		6,322,107
Payables:
Investments bought		159,143
Investment adviser fees	+	11,411

Total liabilities		6,492,661

Net Assets

Total assets		569,372,544
Total liabilities	−	6,492,661

Net assets		$562,879,883

Net Assets by Source
Capital received from investors		546,780,793
Net investment income not yet distributed		513,460
Net realized capital losses		(11,243,412	)
Net unrealized capital gains		26,829,042

Net Asset Value (NAV)

Shares

Net Assets

Outstanding

NAV

$562,879,883

21,100,001

$26.68

66 See financial notes

Schwab Emerging Markets Equity ETF

Statement of

Operations

For September 1, 2011 through February 29, 2012; unaudited



Investment Income

Dividends (net of foreign withholding tax of $304,135)		$3,369,747
Interest (net of foreign withholding tax of $39)		1,304
Securities on loan	+	48,354

Total investment income		3,419,405

Expenses

Investment adviser fees		520,682

Total expenses	−	520,682

Net investment income		2,898,723

Realized and Unrealized Gains (Losses)

Net realized losses on investments		(7,038,436	)
Net realized losses on foreign currency transactions*	+	(167,882	)

Net realized losses		(7,206,318	)
Net unrealized gains on investments (net of foreign capital gains tax of $177,964)		41,470,030
Net unrealized gains on foreign currency translations	+	11,705

Net unrealized gains	+	41,481,735

Net realized and unrealized gains		34,275,417

Net increase in net assets resulting from operations		$37,174,140


*		Includes foreign currency acquisition costs on Brazilian Real of $73,205

See financial notes 67

Schwab Emerging Markets Equity ETF

Statements of

Changes in Net Assets

For the current and prior report periods
Figures for the current period are unaudited



Operations


9/1/11-2/29/12				9/1/10-8/31/11
Net investment income		$2,898,723			$9,204,802
Net realized losses		(7,206,318	)		(3,072,159	)
Net unrealized gains (losses)	+	41,481,735			(12,954,201	)

Net increase (decrease) in net assets resulting from operations		37,174,140			(6,821,558	)

Distributions to Shareholders

Distributions from net investment income		($9,535,681	)		($2,235,300	)

Transactions in Fund Shares

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

VALUE

SHARES

VALUE

Shares Sold

5,900,000

$138,580,311

9,600,000

$269,795,240

Shares Redeemed

—

(500,000

)

(12,298,874

)

Net transactions in fund shares

5,900,000

$138,580,311

9,100,000

$257,496,366

Shares Outstanding and Net Assets

9/1/11-2/29/12

9/1/10-8/31/11

SHARES

NET ASSETS

SHARES

NET ASSETS

Beginning of period

15,200,001

$396,661,113

6,100,001

$148,221,605

Total increase

5,900,000

166,218,770

9,100,000

248,439,508

End of period

21,100,001

$562,879,883

15,200,001

$396,661,113

Net investment income not yet distributed

$513,460

$7,150,418

68 See financial notes

Schwab International ETFs

Financial Notes, unaudited

1. Business Structure of the Funds



Schwab Strategic Trust (organized January 27, 2009)		Schwab U.S. Mid-Cap ETF
Schwab International Equity ETF		Schwab U.S. Small-Cap ETF
Schwab International Small-Cap Equity ETF		Schwab U.S. Dividend Equity ETF
Schwab Emerging Markets Equity ETF		Schwab U.S. REIT ETF
Schwab U.S. Broad Market ETF		Schwab U.S. TIPS ETF
Schwab U.S. Large-Cap ETF		Schwab Short-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Growth ETF		Schwab Intermediate-Term U.S. Treasury ETF
Schwab U.S. Large-Cap Value ETF		Schwab U.S. Aggregate Bond ETF

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”)

(a) Security Valuation:

The funds value the securities in their portfolios every business day. The funds use the following policies to value various types of securities:


	•	Securities traded on an exchange or over-the-counter: valued at the closing value for the day, or, on days when no closing value has been reported, halfway between the most recent bid and asked quotes. Securities that are primarily traded on foreign exchanges are valued at the closing values of such securities on their respective exchanges with these values then translated into U.S. dollars at the valuation date exchange rate unless these securities are fair valued as discussed below.

	•	Securities for which no quoted value is available: The Board of Trustees has adopted procedures to fair value each fund’s securities when market prices are not “readily available” or are unreliable. For example, a fund may fair value a security when a security is de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Each fund makes fair value determinations in good faith in accordance with the fund’s valuation procedures. The Board of Trustees regularly reviews fair value determinations made by the funds pursuant to the procedures.

	•	Bonds and notes: valued at the bid or at halfway between the most recent bid and asked quotes or, if such quotes are unavailable, at prices for securities of comparable maturity, credit quality and type. Valuations for bonds and notes are provided by an independent bond-pricing service.

	•	Forward contracts: value based on that day’s exchange rates.

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

	•	Underlying funds: valued at their respective net asset values.

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

The three levels of the fair value hierarchy are as follows:


	•	Level 1 — quoted prices in active markets for identical securities — Investments whose values are based on quoted market prices in active markets, and whose values are therefore classified as Level 1 prices, include active listed equities. The funds do not adjust the quoted price for such investments, even in situations where the funds hold a large position and a sale could reasonably impact the quoted prices.

	•	Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. As investments whose values are classified as Level 2 prices include positions that are not traded in active markets and/or are subject to transfer restrictions, valuations may be adjusted to reflect illiquidity and/or non-transferability, which are generally based on available market information.

	•	Level 3 — significant unobservable inputs (including the funds’ own assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not available for these securities, the funds use one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the funds in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the funds in the absence of market information. Assumptions used by the funds due to the lack of observable inputs may significantly impact the resulting fair value and therefore the funds’ results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The fund’s policy is to recognize transfers between Level 1, Level 2 and Level 3 as of the beginning of the fiscal year.

The levels associated with valuing the funds’s investment for the period ended February 29, 2012 are disclosed in the Portfolio Holdings.

(b) Accounting Policies for certain Portfolio Investments (if held):

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

If applicable, the value of the securities on loan as of February 29, 2012 and the value of the related collateral are disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities.

(c) Security Transactions:

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholdings taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. The funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

When a fund closes out a forwards position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly. A fund records the daily change in market value of futures and also the change in the amount of margin deposit required (“due to / from broker”).

(d) Investment Income:

(e) Expenses:

(f) Distributions to Shareholders:

The funds make distributions from net investment income and distribute net realized capital gains, if any, once a year.

(g) Accounting Estimates:

(h) Federal Income Taxes:

(i) Foreign Taxes:

The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges, capital gains on investments on currency repatriation. All foreign taxes are recorded in accordance with the

Schwab International ETFs

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in the Statement of Operations. Foreign taxes payable as of February 29, 2012, if any, are reflected in the funds’ Statement of Assets and Liabilities.

(j) Indemnification:

(k) New Accounting Pronouncements:

At this time, management is evaluating the implications of these changes and their impact on the financial statements.

3. Risk Factors:

Certain funds invest in large- and mid-cap stocks. Both large- and mid-cap stocks tend to go in and out of favor based on market and economic conditions. However, stocks of mid-cap companies tend to be more vulnerable to adverse business or economic events than larger more established companies. During a period when large- and mid-cap U.S. stocks fall behind other types of investments — small-cap stocks, for instance — a fund’s large- and mid-cap holdings could reduce performance.

Schwab International ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

behind other types of investments — large-cap and mid-cap stocks, for instance — a fund’s small-cap holdings could reduce performance.

A fund’s investments in securities of foreign issuers may involve certain risks that are greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may be heightened in connection with investments in emerging markets. Foreign securities also include ADRs, GDRs, and EDRs, which are receipts issued by U.S. and foreign banks that represent shares of foreign-based corporations. Investment in ADRs, GDRs and EDRs may be less liquid than the underlying shares in their primary trading market and GDRs, many of which are issued by companies in emerging markets, may be more volatile.

Certain funds invest in emerging markets. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting and reporting requirements, unreliable securities valuation and greater risk associated with the custody of securities. It is sometimes difficult to obtain and enforce court judgments in such countries, and there is often a greater potential for nationalization and/or expropriation of assets by the government of an emerging market country. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in other countries. As a result, there will tend to be an increased risk of price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar.

A fund may not fully replicate the index and may hold securities not included in the index. As a result, a fund is subject to the risk that the adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because a fund utilizes a sampling approach it may not track the return of the index as well as it would if a fund purchased all of the securities in its benchmark index.

A particular investment may be difficult to purchase or sell. A fund may be unable to sell illiquid securities at an advantageous time or price.

Schwab International ETFs

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

An investment in a fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.

Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.

4. Affiliates and Affiliated Transactions:

For its advisory services to the following funds, CSIM is entitled to receive an annual fee, payable monthly, based on a percentage of the fund’s average daily net assets as follows:


		Schwab		Schwab
Schwab		International		Emerging
International		Small-Cap		Markets
Equity ETF		Equity ETF		Equity ETF

	0.13%		0.35%		0.25%

The investment adviser will pay the operating expenses of the funds, excluding interest expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses.

The funds may engage in certain transactions involving affiliates. For instance, a fund may own shares of The Charles Schwab Corporation if that company is included in its index. During the period ended February 29, 2012, there were no transactions involving affiliates.

5. Other Service Providers:

SEI Investments Distribution Co. (the “Distributor”) is the principal underwriter and distributor of shares of the funds.

Schwab International ETFs

Financial Notes, unaudited (continued)

6. Board of Trustees:

7. Borrowing from Banks:

8. Purchases and Sales/Maturities of Investment Securities:

For the period ended February 29, 2012, purchases and sales/maturities of securities (excluding in-kind transactions and short-term obligations) were as follows:


	Purchases of Securities		Sales/Maturities of Securities

Schwab International Equity ETF		$29,199,090		$28,344,037
Schwab International Small-Cap Equity ETF		25,799,191		25,414,746
Schwab Emerging Markets Equity ETF		58,133,590		16,128,646

9. In-Kind Transactions:

The in-kind transactions for the period ended February 29, 2012 were as follows:


	In-kind Purchases of Securities		In-kind Sales of Securities

Schwab International Equity ETF		$102,078,719		$—
Schwab International Small-Cap Equity ETF		20,517,554		10,069,724
Schwab Emerging Markets Equity ETF		90,827,344		—

10. Federal Income Taxes

Schwab

International

Emerging

International

Small-Cap

Markets

Expiration Date

Equity ETF

August 31, 2019

$2,345,874

$215,545

$1,091,404

Schwab International ETFs

Financial Notes, unaudited (continued)

10. Federal Income Taxes (continued):

Schwab

International

Emerging

International

Small-Cap

Markets

Equity ETF

Deferred capital losses

$3,219,306

$1,649,561

$2,802,592

Certain of the enacted provisions include:

11. Subsequent Events:

Trustees and Officers

Independent Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served¹)	During the Past Five Years	the Trustee	Other Directorships

Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Retired (January 2009 – present). Consulting Managing Director, PIMCO (investment adviser) (January 2003 – December 2008); Managing Director, PIMCO (February 1999 – December 2002); President and Trustee, PIMCO Funds and PIMCO Variable Insurance Trust (investments) (February 1994 – May 2005).	17	Director, PS Business Parks, Inc. (2005 – present). Trustee, PIMCO Funds (investment company consisting of 84 portfolios) (1997 – 2008). Trustee, PIMCO Variable Insurance Trust (investment company consisting of 16 portfolios) (1997 – 2008). Director and Chairman, PIMCO Strategic Global Government Fund (investment company consisting of one portfolio) (1997 – 2008). Director, PCM Fund, Inc. (investment company consisting of one portfolio) (1997 – 2008).


Mark A. Goldfarb 1952 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Founder and Managing Director, SS&G, Inc. (certified public accountants and advisers) (May 1987 – present).	17	None


Charles A. Ruffel 1956 Trustee (Trustee of Schwab Strategic Trust since 2009.)	Advisor (January 2008 – present) and Chief Executive Officer (January 1998 – January 2008), Asset International, Inc. (publisher of financial services information); Managing Partner and Co-Founder, Kudu Advisors, LLC (financial services) (June 2008 – present).	17	None

Interested Trustees


Name, Year of Birth,		Number of
and Position(s) with		Portfolios in
the trust; (Terms of		Fund Complex
office, and length of	Principal Occupations	Overseen by
Time Served )	During the Past Five Years	the Trustee	Other Directorships

Walter W. Bettinger II²1960 Trustee (Trustee of Schwab Strategic Trust since 2009.)	As of October 2008, President and Chief Executive Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation. Since October 2008, Director, The Charles Schwab Corporation. Since May 2008, Director, Charles Schwab & Co., Inc. and Schwab Holdings, Inc. Since 2006, Director, Charles Schwab Bank. From 2004 through 2007, Executive Vice President and President, Schwab Investor Services. From 2004 through 2005, Executive Vice President and Chief Operating Officer, Individual Investor Enterprise, and from 2002 through 2004, Executive Vice President, Corporate Services. Until October 2008, President and Chief Operating Officer, Charles Schwab & Co., Inc. and The Charles Schwab Corporation.	92	None

Officers of the Trust


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

Marie Chandoha 1961 President and Chief Executive Officer (Officer of Schwab Strategic Trust since 2010.)		Executive Vice President, Charles Schwab & Co., Inc. (Sept. 2010 – present); Director, President and Chief Executive Officer (Dec. 2010 – present), Chief Investment Officer (Sept. 2010 – Oct. 2011), Charles Schwab Investment Management, Inc.; President, Chief Executive Officer (Dec. 2010 – present), and Chief Investment Officer (Sept. 2010 – Oct. 2011), Schwab Funds, Laudus Funds and Schwab ETFs; Global Head of Fixed Income Business Division, BlackRock, Inc. (formerly Barclays Global Investors) (March 2007 – August 2010); Co-Head and Senior Portfolio Manager, Wells Capital Management (June 1999 – March 2007).


George Pereira 1964 Treasurer and Principal Financial Officer (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President and Chief Financial Officer (Nov. 2004 – present); Chief Operating Officer (Jan. 2011 – present), Charles Schwab Investment Management, Inc.; Treasurer and Chief Financial Officer, Laudus Funds (June 2006 – present); Treasurer and Principal Financial Officer, Schwab Funds (Nov. 2004 – present) and Schwab ETFs (Oct. 2009 – present); Director, Charles Schwab Worldwide Fund, PLC and Charles Schwab Asset Management (Ireland) Limited (April 2005 – present); Treasurer, Chief Financial Officer and Chief Accounting Officer, Excelsior Funds Inc., Excelsior Tax-Exempt Funds, Inc., and Excelsior Funds Trust (June 2006 – June 2007).


Omar Aguilar 1970 Senior Vice President and Chief Investment Officer – Equities (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer — Equities, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer — Equities, Schwab Funds and Laudus Funds (June 2011 – present); Head of the Portfolio Management Group and Vice President of Portfolio Management, Financial Engines, Inc. (May 2009 – April 2011); Head of Quantitative Equity, ING Investment Management (July 2004 – Jan. 2009).


Brett Wander 1961 Senior Vice President and Chief Investment Officer – Fixed Income (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President and Chief Investment Officer – Fixed Income, Charles Schwab Investment Management, Inc. (April 2011 – present); Senior Vice President and Chief Investment Officer – Fixed Income, Schwab Funds and Laudus Funds (June 2011 – present); Senior Managing Director, Global Head of Active Fixed Income Strategies, State Street Global Advisors (Jan. 2008 – Oct. 2010); Director of Alpha Strategies, Loomis, Sayles & Company (April 2006 – Jan. 2008); Managing Director, Head of Market-Based Strategies State Street Research (August 2003 – Jan. 2005).

Officers of the Trust (continued)


Name, Year of Birth, and Position(s)
with the trust; (Terms of office, and
length of Time Served³)		Principal Occupations During the Past Five Years

David Lekich 1964 Secretary and Chief Legal Officer (Officer of Schwab Strategic Trust since 2011.)		Senior Vice President, Charles Schwab & Co., Inc. (Sept. 2011 – present); Senior Vice President and Chief Counsel, Charles Schwab Investment Management Inc. (Sept. 2011 – present); Vice President, Charles Schwab & Co., Inc., (March 2004 – Sept. 2011) and Charles Schwab Investment Management, Inc. (Jan 2011 – Sept. 2011); Secretary (April 2011 – present) and Chief Legal Officer (Dec. 2011 – present), Schwab Funds (April 2011 – present); Vice President and Assistant Clerk, Laudus Funds (April 2011 – present); Secretary (May 2011 – present) and Chief Legal Officer (Nov. 2011 – present), Schwab ETFs.


Catherine MacGregor 1964 Vice President and Assistant Secretary (Officer of Schwab Strategic Trust since 2009.)		Vice President, Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc. (July 2005 – present); Vice President (Dec. 2005 – present), Chief Legal Officer and Clerk (March 2007 – present), Laudus Funds; Vice President and Assistant Secretary, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


Michael Haydel 1972 Vice President (Officer of Schwab Strategic Trust since 2009.)		Senior Vice President (March 2011 – present), Vice President (2004 – March 2011), Asset Management Client Services, Charles Schwab & Co., Inc.; Vice President (Sept. 2005 – present), Anti-Money Laundering Officer (Oct. 2005 – Feb. 2009), Laudus Funds; Vice President, Schwab Funds (June 2007 – present) and Schwab ETFs (Oct. 2009 – present).


¹		Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The Trust’s retirement policy requires that independent trustees retire by December 31 of the year in which the Trustee turns 72 or the Trustee’s twentieth year of service as an independent trustee, whichever comes first.
²		Mr. Bettinger is an Interested Trustee because he is an employee of Schwab and/or the investment adviser. In addition to his employment with the investment adviser and Schwab, Mr. Bettinger also owns stock of The Charles Schwab Corporation.
³		The President, Treasurer and Secretary hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board.

Glossary

American Depositary Receipt (ADR) U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations.

ask See “offer.”

asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.

authorized participant (AP) A large institutional investor that places orders for creation units with the funds’ distributor.

bid The highest price at which someone is willing to buy a security.

cap, capitalization See “market cap.”

commencement of operations The date that the first NAV was calculated.

exchange A marketplace, or any organization or group that provides or maintains a marketplace for trading securities, options, futures, or commodities.

gross domestic product (GDP) The output of goods and services produced by labor and property located in the United States.

inception date The date that the shares began trading in the secondary market.

indicative optimized portfolio value (IOPV) A calculation disseminated by the stock exchange that approximates the fund’s NAV every 15 seconds throughout the trading day.

liquidity The ability to convert a security or asset quickly into cash.

market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.

MSCI Emerging Markets Index A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.