0001752724-23-129517.txt : 20230613 0001752724-23-129517.hdr.sgml : 20230613 20230613111106 ACCESSION NUMBER: 0001752724-23-129517 CONFORMED SUBMISSION TYPE: N-CEN PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230613 DATE AS OF CHANGE: 20230613 EFFECTIVENESS DATE: 20230613 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB STRATEGIC TRUST CENTRAL INDEX KEY: 0001454889 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CEN SEC ACT: 1940 Act SEC FILE NUMBER: 811-22311 FILM NUMBER: 231010602 BUSINESS ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 1-415-667-7000 MAIL ADDRESS: STREET 1: 211 MAIN STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: Schwab Strategic Trust DATE OF NAME CHANGE: 20090127 0001454889 S000072244 Schwab Ariel ESG ETF C000228159 Schwab Ariel ESG ETF SAEF 0001454889 S000076371 Schwab Crypto Thematic ETF C000236174 Schwab Crypto Thematic ETF STCE N-CEN 1 primary_doc.xml X0404 N-CEN LIVE 0001454889 XXXXXXXX 811-22311 false false false N-1A S000076371 C000236174 S000072244 C000228159 SCHWAB STRATEGIC TRUST 811-22311 0001454889 549300NAZEQOIX80E226 211 MAIN STREET SAN FRANCISCO 94105 US-CA US 800-648-5300 Charles Schwab Investment Management, Inc. 211 Main Street San Francisco 94105 800-648-5300 Investment Manager and Fund Administrator State Street Bank and Trust Company One Lincoln Street Boston 02111 617-786-3000 Custodian, Transfer Agent and Fund Accountant Schwab Strategic Trust 211 Main Street San Francisco 94105 800-648-5300 Trust and Fund Records SEI Investments Distribution Co. 1 Freedom Valley Drive Oaks 19456 610-676-1000 Principal Underwriter N N N-1A 29 Y Michael J. 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Morgan Securities LLC 8-35008 000000079 ZBUT11V806EZRVTWT807 85.71000000 Citadel Securities Institutional LLC 8-69663 000281102 549300MLQ1S3715IUK04 135.69000000 Stonex Financial Inc. 8-51269 000045993 549300LNKU6K5TJCRG93 1302.88000000 Mizuho Securities USA LLC 8-37710 000019647 7TK5RJIZDFROZCA6XF66 82.66000000 BofA Securities, Inc. 8-69787 000283942 549300HN4UKV1E2R3U73 129.61000000 3527.01000000 RBC Capital Markets, LLC 8-45411 000031194 549300LCO2FLSSVFFR64 2058.75000000 SG Americas Securities, LLC 8-66125 000128351 549300F35UE0BOM1WJ55 13008.27000000 Barclays Capital Inc. 8-41342 000019714 AC28XWWI3WIBK2824319 22790.86000000 Goldman Sachs & Co. LLC 8-129 000000361 FOR8UP27PHTHYVLBNG30 179976.11000000 UBS Securities LLC 8-22651 000007654 T6FIZBDPKLYJKFCRVK44 12458.70000000 HSBC Securities (USA) Inc. 8-41562 000019585 CYYGQCGNHMHPSMRL3R97 44629.74000000 274922.43000000 N 8029607.50125000 Uncommitted 400000000.00000000 N Committed 1000000000.00000000 N N N Schwab Ariel ESG ETF S000072244 54930094NCCVIUH3GM08 N 0 0 0 Exchange-Traded Fund N N Y N N/A N/A N/A Rule 32a-4 (17 CFR 270.32a-4) Rule 18f-4(c)(4) (17CFR 270.18f-4(c)(4)) Rule 18f-4 (17 CFR 270.18f-4) N N N N Charles Schwab Investment Management, Inc. 801-35905 000106753 EVQ6EP3QESDF386W4D54 N Ariel Investments, LLC 801-18767 000108211 5493007TOVD6LN5SJS12 N N State Street Bank and Trust Company 85-05003 571474TGEMMWANRLN572 N N N ICE Data Services, Inc. 13-3668779 Tax ID N PricingDirect Inc. 549300WIC0TOJ7N7GD54 N Refinitiv US Holdings Inc. 549300NF240HXJO7N016 N Bloomberg L.P. 549300B56MD0ZC402L06 N N State Street Bank and Trust Company 571474TGEMMWANRLN572 N N Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1)) N State Street Bank and Trust Company 571474TGEMMWANRLN572 N N N Charles Schwab Investment Management, Inc. 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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Trustees of the Schwab Strategic Trust and Shareholders of Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF:

 

In planning and performing our audit of the financial statements of Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF (the "Funds") as of and for the year then ended March 31, 2023 for Schwab Ariel ESG ETF and as of the year then ended and for the period from August 4, 2022 (commencement of operations) through March 31, 2023 for Schwab Crypto Thematic ETF, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), we considered the Funds’ internal control over financial reporting, including controls over safeguarding securities, as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-CEN, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

 

The management of the Funds is responsible for establishing and maintaining effective internal control over financial reporting. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. A fund's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A fund's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the fund; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the fund are being made only in accordance with authorizations of management and directors of the fund; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a fund's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the fund's annual or interim financial statements will not be prevented or detected on a timely basis.

Our consideration of the Funds’ internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily disclose all deficiencies in internal control that might be material weaknesses under standards established by the PCAOB. However, we noted no deficiencies in the Funds’ internal control over financial reporting and its operation, including controls for safeguarding securities, that we consider to be a material weakness, as defined above, as of March 31, 2023.

This report is intended solely for the information and use of management and Board of Trustees of Schwab Strategic Trust and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.

/s/ Deloitte & Touche LLP

Denver, Colorado

May 17, 2023