0001752724-24-131405.txt : 20240612 0001752724-24-131405.hdr.sgml : 20240612 20240612145556 ACCESSION NUMBER: 0001752724-24-131405 CONFORMED SUBMISSION TYPE: N-CEN PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20240331 FILED AS OF DATE: 20240612 DATE AS OF CHANGE: 20240612 EFFECTIVENESS DATE: 20240612 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCHWAB STRATEGIC TRUST CENTRAL INDEX KEY: 0001454889 ORGANIZATION NAME: 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: 241038163 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 Ariel Investments, LLC 200 East Randolph Street Chicago 60601 800-292-7435 Sub-Adviser Schwab Strategic Trust 211 Main Street San Francisco 94105 800-648-5300 Trust and Fund Records State Street Bank and Trust Company One Congress Street Suite 1 Boston 02114 617-786-3000 Custodian, Transfer Agent and Fund Accountant SEI Investments Distribution Co. 1 Freedom Valley Drive Oaks 19456 610-676-1000 Principal Underwriter N N N-1A 30 Y Michael J. Beer 002007424 N Nancy F. Heller 001813276 N Richard A. Wurster 006638804 Y Walter W. Bettinger II 002915574 Y David L. Mahoney N/A N Kimberly S. Patmore N/A N Jean Derek Penn 001310915 N Jane P. Moncreiff N/A N Robert W. Burns N/A N Jessica Seidlitz 004910590 9800 Schwab Way Lone Tree 80124 XXXXXX Y N N N N N SEI Investments Distribution Co. 8-27897 000010690 9845004D1BC905A05108 N N Deloitte & Touche LLP 34 N/A N N N N N N N Schwab Crypto Thematic ETF S000076371 549300EPEZERMIWD3885 N 0 0 0 Exchange-Traded Fund Y Y -0.12000000 -0.71000000 0.45000000 0.45000000 Y N Y N Goldman Sachs Bank USA KD3XUN7C6T14HNAYLU02 N N Cash collateral reinvestment fee Revenue sharing split 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) Rule 6c-11 (17 CFR 270.6c-11) Rule 17a-7 (17 CFR 270.17a-7) N N N N Charles Schwab Investment Management, Inc. 801-35905 000106753 EVQ6EP3QESDF386W4D54 N State Street Bank and Trust Company 85-05003 571474TGEMMWANRLN572 N N N PricingDirect Inc. 549300WIC0TOJ7N7GD54 N London Stock Exchange Group PLC 213800QAUUUP6I445N30 GB N Bloomberg L.P. 549300B56MD0ZC402L06 N ICE Data Services, Inc. 13-3668779 Tax ID N N State Street Bank and Trust Company (Edinburgh, GB, Branch) 571474TGEMMWANRLN572 GB N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) The Hongkong and Shanghai Banking Corporation Limited (Jung-gu, Seoul, KR, Branch) 2HI3YI5320L3RW6NJ957 KR N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) Mizuho Bank, Ltd. (Minato ku, Tokyo, JP, Branch) RB0PEZSDGCO3JS6CEU02 JP N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) The Hongkong and Shanghai Banking Corporation Limited (Sydney, NSW, AU, Branch) 2HI3YI5320L3RW6NJ957 AU N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) State Street Bank International GmbH ZMHGNT7ZPKZ3UFZ8EO46 DE N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) State Street Bank and Trust Company 571474TGEMMWANRLN572 N N Bank - section 17(f)(1) (15 U.S.C. 80a-17(f)(1)) The Hongkong and Shanghai Banking Corporation Limited 2HI3YI5320L3RW6NJ957 HK N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) UBS Switzerland AG 549300WOIFUSNYH0FL22 CH N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) BNP Paribas R0MUWSFPU8MPRO8K5P83 FR N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) State Street Trust Company Canada 549300L71XG2CTQ2V827 CA N Y Foreign custodian - rule 17f-5 (17 CFR 270.17f-5) N State Street Bank and Trust Company 571474TGEMMWANRLN572 N N N Charles Schwab Investment Management, Inc. EVQ6EP3QESDF386W4D54 Y N N TD Ameritrade, Inc. 8-23395 000007870 CWQYQU0TV2NLMLZKNB44 0.00000000 Flow Traders U.S. LLC 8-68300 000150780 549300K64LZQW7R9ST34 0.00000000 Charles Schwab, Hong Kong, Ltd. N/A N/A N/A HK 0.00000000 TD Ameritrade Clearing, Inc. 8-16335 000005633 MRK678VXOI09YSSN8X19 0.00000000 Flow Traders U.S. Institutional Trading LLC 8-69711 000282266 549300H90VV8DK5UM624 0.00000000 Charles Schwab Singapore Pte. Ltd. N/A N/A N/A SG 0.00000000 Charles Schwab & Co., Inc. 8-16514 000005393 549300ZP8XN77GK5BS04 0.00000000 Academy Securities, Inc. 8-35173 000017433 2549000QX6RLQOZ2XC11 462.55000000 Citigroup Global Markets Inc. 8-8177 000007059 MBNUM2BPBDO7JBLYG310 1895.01000000 Penserra Securities LLC 8-67773 000145994 549300WY8ZBI168Y6Z05 1456.79000000 Macquarie Capital (USA) Inc. 8-47198 000036368 549300670K07JRB5UQ40 255.68000000 Virtu Americas LLC 8-68193 000149823 549300RA02N3BNSWBV74 500.19000000 Jefferies LLC 8-15074 000002347 58PU97L1C0WSRCWADL48 652.68000000 Instinet, LLC 8-23669 000007897 549300MGMN3RKMU8FT57 973.94000000 Roth Capital Partners, LLC 8-32129 000015407 549300FMF3TPT1HFRF48 348.64000000 Cantor Fitzgerald & Co. 8-201 000000134 5493004J7H4GCPG6OB62 507.14000000 BofA Securities, Inc. 8-69787 000283942 549300HN4UKV1E2R3U73 265.32000000 8214.22000000 RBC Capital Markets, LLC 8-45411 000031194 549300LCO2FLSSVFFR64 146637.07000000 Citadel Securities LLC 8-53574 000116797 12UUJYTN7D3SW8KCSG25 18855.04000000 BofA Securities, Inc. 8-69787 000283942 549300HN4UKV1E2R3U73 311458.53000000 Barclays Capital Inc. 8-41342 000019714 AC28XWWI3WIBK2824319 173111.44000000 650062.08000000 N 16773629.31153846 Committed 1000000000.00000000 N Uncommitted 400000000.00000000 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 Bloomberg L.P. 549300B56MD0ZC402L06 N London Stock Exchange Group PLC 213800QAUUUP6I445N30 GB 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. EVQ6EP3QESDF386W4D54 Y N N Flow Traders U.S. Institutional Trading LLC 8-69711 000282266 549300H90VV8DK5UM624 0.00000000 Charles Schwab, Hong Kong, Ltd. N/A N/A N/A HK 0.00000000 Flow Traders U.S. LLC 8-68300 000150780 549300K64LZQW7R9ST34 0.00000000 Charles Schwab & Co., Inc. 8-16514 000005393 549300ZP8XN77GK5BS04 0.00000000 Charles Schwab Singapore Pte. Ltd. N/A N/A N/A SG 0.00000000 TD Ameritrade Clearing, Inc. 8-16335 000005633 MRK678VXOI09YSSN8X19 0.00000000 TD Ameritrade, Inc. 8-23395 000007870 CWQYQU0TV2NLMLZKNB44 0.00000000 Academy Securities, Inc. 8-35173 000017433 2549000QX6RLQOZ2XC11 89.60000000 UBS Securities LLC 8-22651 000007654 T6FIZBDPKLYJKFCRVK44 101.04000000 Stonex Financial Inc. 8-51269 000045993 549300LNKU6K5TJCRG93 85.84000000 Loop Capital Markets LLC 8-50140 000043098 254900FPPM2WN90D4786 1493.70000000 Sanford C. Bernstein & Co., LLC 8-52942 000104474 549300I7JYZHT7D5CO04 164.88000000 Siebert Williams Shank & Co., LLC 8-49877 000042568 254900VTARX8RAY9QK77 97.62000000 Stephens Inc. 8-1927 000003496 213800LH6T9XDYZCA534 104.46000000 Cantor Fitzgerald & Co. 8-201 000000134 5493004J7H4GCPG6OB62 224.48000000 Cabrera Capital Markets LLC 8-26406 000010081 254900BIRJU76JRBK985 78.06000000 CastleOak Securities, L.P. 8-65786 000125334 549300MXL7C60HZ59S65 1292.80000000 3920.36000000 176814.00000000 Y 17321392.45076923 Committed 1000000000.00000000 N Uncommitted 400000000.00000000 N N N Schwab Crypto Thematic ETF S000076371 Y 50000.00000000 0.31777777 0.26757253 99.68222222 0.26757253 3.32000000 0.00000000 96.68000000 0.00000000 0.00000000 500.00000000 0.00000000 0.00000000 500.00000000 0.00000000 0.00000000 500.00000000 0.00000000 0.00000000 500.00000000 0.00000000 N Schwab Ariel ESG ETF S000072244 N 5000.00000000 8.97894736 1.04063186 91.02105263 1.04063186 9.32500000 1.25500000 90.67500000 1.25500000 0.00000000 100.00000000 0.00000000 0.00000000 100.00000000 0.00000000 0.00000000 100.00000000 0.00000000 0.00000000 100.00000000 0.00000000 N true INTERNAL CONTROL RPT 2 NCEN_811-22311_44839007_0324.htm schwabstrategictrust.htm - Generated by SEC Publisher for SEC Filing

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 audits of the financial statements of Schwab Ariel ESG ETF and Schwab Crypto Thematic ETF (the "Funds") as of and for the year ended March 31, 2024, 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 trustees of the trust; 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, 2024.

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, 2024