N-CSRS

Schwab Value Advantage Money Fund

Fund Management

Linda Klingman, Managing Director and Head of Money Market Strategies for Schwab Asset Management, leads the portfolio management teams for taxable and tax-exempt Schwab Money Funds, and has overall responsibility for all aspects of the management of the fund. Prior to joining Schwab in 1990, she was a senior money market trader with AIM Management, Inc. for five years. She has managed money market funds since 1988.

Michael Lin, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Lin has been a portfolio manager with Schwab Asset Management since 2006, and also worked in Schwab Asset Management’s fund administration group for nearly four years, where he focused on security pricing and valuation of the Schwab Funds. Prior to joining Schwab, he was a senior trader of the taxable money market funds at American Century Investments for three years.

Jonathan Roman, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Roman has been a portfolio manager with Schwab Asset Management since 2010 and has held a number of positions at Schwab since beginning his tenure in 2005. In 2009, he joined the portfolio management group as a trader, and prior to that he worked in portfolio operations and analytics, providing trading support to the taxable money market desk.

Jonathan Feske, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Feske previously was responsible for credit and investment research for global banks for the Schwab Taxable Bond Funds and Schwab Money Funds. Prior to joining Schwab in 2011, Mr. Feske was a high-yield bond analyst for more than two years at Miller Tabak Roberts Securities, a boutique corporate bond broker-dealer. He covered both U.S. and emerging market credits, focusing on distressed situations in various industrial sectors. Previously, Mr. Feske was employed in the securities industry as an equity trader for three years.

Karim Menoufy, Portfolio Manager, is responsible for the day-to-day co-management of the fund. Mr. Menoufy has been a portfolio manager with Schwab Asset Management since 2013, when he started as an associate portfolio manager and was promoted to portfolio manager in 2020. He held several positions prior to that supporting the taxable and tax-exempt money funds during his tenure at the firm. Before joining Schwab in 2007, he spent several years as a mortgage specialist at JPMorgan Chase and an equity plan administrator for Delegata Corporation.

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Schwab Value Advantage Money Fund

The Schwab Value Advantage Money Fund’s (the fund) goal is to seek the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in high-quality, short-term money market investments issued by U.S. and foreign issuers. Examples of these securities include commercial paper, promissory notes, certificates of deposit and time deposits, variable- and floating-rate debt securities, bank notes and bankers’ acceptances, repurchase agreements, and obligations that are issued by the U.S. government, its agencies, or instrumentalities. For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Market Highlights. The six-month reporting period ended June 30, 2022, was marked by a continuing imbalance in supply and demand of short-term money market securities, particularly U.S. Treasuries, with demand remaining high and supply declining as the U.S. Treasury’s borrowing needs decreased. Interest rates rose during the reporting period as a result of persistently high inflation brought on by a tight labor market, supply chain constraints, and rising energy prices in the wake of COVID-19 and the war in Ukraine.

After maintaining the federal funds rate in a range of 0.00% to 0.25% through mid-March, the U.S. Federal Reserve (Fed) shifted its stance as inflation continued to rise and indicators of economic activity and employment continued to strengthen. After issuing successively stronger signals that interest rates could begin to rise sooner in 2022 than previously anticipated, the Fed increased the federal funds rate three times between March and June to end the reporting period in a range of 1.50% to 1.75%. In addition, the Fed’s bond-buying program, which had begun to scale back in November 2021, was ended altogether in early March 2022. In June, the Fed also began to reduce the $9 trillion in assets it holds on its balance sheet. Given expectations of further rate hikes throughout the remainder of the year, the yield curve steepened over the period, with longer-term yields rising more than shorter-term yields as demand increased for securities with shorter maturities. Strong demand for the Fed’s Overnight Reverse Repurchase Agreement Facility drove its usage to an all-time high in June as a result of expected interest rate hikes, significant cash in the market, limited investment options, and the ongoing supply and demand imbalances for U.S. Treasuries.

Outside the United States, major central banks grappled with similar economic conditions. After holding its policy rate unchanged since March 2016, at 0.00%, the European Central Bank announced in June its intention to raise interest rates in July for the first time in 11 years. Also in June, the Bank of England raised the Bank of England key official bank rate for the fifth consecutive time, to 1.25%, bringing borrowing costs to a 13-year high as it wrestled with soaring inflation. In contrast, the Bank of Japan upheld its short-term interest rate target of -0.1%, unchanged since 2016, and vowed to defend its cap on bond yields with unlimited buying, as opposed to the monetary tightening being employed in many other countries around the globe.

Performance, Positioning, and Strategies. Throughout the reporting period, the fund’s investment adviser remained focused on ensuring liquidity and stability of capital as market conditions evolved, and on continuing a rigorous credit review process and ongoing monitoring for all issuers and regions in which the fund invests. In expectation of, and in response to, the Fed’s short-term interest rate increases, the fund’s weighted average maturity (WAM) was shortened during the reporting period to reduce NAV volatility and allow for quicker reinvestment at higher rates. The fund’s WAM began the period at 41 days and ended it at 15 days.

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

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Schwab Value Advantage Money Fund

Performance and Fund Facts as of June 30, 2022 (continued)

The performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. To obtain more current performance information, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

The seven-day yield is the income generated by the fund’s portfolio holdings minus the fund’s operating expenses. The seven-day yields are calculated using standard SEC formulas. The effective yield includes the effect of reinvesting daily dividends. Please remember that money market fund yields fluctuate.

	Schwab Value Advantage Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SWVXX	SNAXX
Minimum Initial Investment²	None	$1,000,000
Seven-Day Yield (with waivers)³	1.24%	1.38%
Seven-Day Yield (without waivers)³	1.23%	1.38%
Seven-Day Effective Yield (with waivers)³	1.24%	1.39%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

¹	Due to a special distribution of ordinary income, the fund’s stated yields temporarily increased in October and December 2021.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Value Advantage Money Fund

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

As a fund shareholder, you may incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, transfer agent and shareholder services fees, and other fund expenses.

The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in the 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 January 1, 2022 and held through June 30, 2022.

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 the fund 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 the fund’s or share class’ 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. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	EXPENSE RATIO (ANNUALIZED)^1,2	BEGINNING ACCOUNT VALUE AT 1/1/22	ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/22	EXPENSES PAID DURING PERIOD 1/1/22-6/30/22³
Schwab Value Advantage Money Fund
Investor Shares
Actual Return	0.26%	$1,000.00	$1,001.30	$1.29
Hypothetical 5% Return	0.26%	$1,000.00	$1,023.51	$1.30
Ultra Shares
Actual Return	0.17%	$1,000.00	$1,001.80	$0.84
Hypothetical 5% Return	0.17%	$1,000.00	$1,023.95	$0.85


¹	Based on the most recent six-month expense ratio.
²	Expense ratio (annualized) reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
³	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Value Advantage Money Fund

Financial Statements

FINANCIAL HIGHLIGHTS

Investor Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.00 ²	0.00 ²	0.02	0.02	0.01
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	0.00 ²	0.00 ²	(0.00) ²	—
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.02	0.02	0.01
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ^2,3	(0.00) ²	(0.02)	(0.02)	(0.01)
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	(0.00) ²	—	—
Total distributions	(0.00) ²	(0.00) ²	(0.00) ²	(0.02)	(0.02)	(0.01)
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.13% ⁴	0.04% ³	0.44%	2.07%	1.79%	0.81%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.26% ^5,6	0.11% ⁶	0.28% ^6,7	0.34%	0.34%	0.39% ⁸
Gross operating expenses	0.35% ⁵	0.35%	0.41%	0.42%	0.44%	0.54%
Net investment income (loss)	0.28% ⁵	0.04%	0.47%	2.02%	1.87%	0.84%
Net assets, end of period (x 1,000,000)	$47,190	$42,245	$56,419	$74,972	$47,721	$14,955


*	Unaudited.
¹	Calculated based on the average shares outstanding during the period.
²	Per-share amount was less than $0.005.
³	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁴	Not annualized.
⁵	Annualized.
⁶	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁷	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.
⁸	Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

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Schwab Value Advantage Money Fund

FINANCIAL HIGHLIGHTS (continued)

Ultra Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17¹
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.01	0.02	0.02	0.01
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³	0.00 ³	(0.00) ³	—
Total from investment operations	0.00 ³	0.00 ³	0.01	0.02	0.02	0.01
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ^3,4	(0.01)	(0.02)	(0.02)	(0.01)
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	(0.00) ³	—	—
Total distributions	(0.00) ³	(0.00) ³	(0.01)	(0.02)	(0.02)	(0.01)
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.18% ⁵	0.04% ⁴	0.53%	2.22%	1.94%	1.00%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.17% ^6,7	0.11% ⁷	0.18% ^7,8	0.19%	0.19%	0.20% ⁹
Gross operating expenses	0.20% ⁶	0.20%	0.26%	0.27%	0.29%	0.33%
Net investment income (loss)	0.36% ⁶	0.04%	0.56%	2.17%	2.00%	1.08%
Net assets, end of period (x 1,000,000)	$32,490	$33,078	$37,882	$47,497	$29,554	$12,612


*	Unaudited.
¹	Effective November 17, 2017, the Select Shares and Premier Shares were combined into the Ultra Shares. The financial history as shown in the financial highlights is that of the former Ultra Shares.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁵	Not annualized.
⁶	Annualized.
⁷	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁸	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.
⁹	Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (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 U.S. Securities and Exchange Commission (SEC) monthly on Form N-MFP, which is available immediately upon filing. The fund’s Form N-MFP is available on the SEC’s website at www.sec.gov. The fund also makes available its complete schedule of portfolio holdings 5 business days after month end on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus.

For fixed-rate obligations and repurchase agreements, the rate shown is the coupon rate (the rate established when the obligation was issued) and if the coupon rate is not available, the effective yield at the time of purchase is shown. For variable-rate obligations, the rate shown is the interest rate as of the report date based on each security’s rate reset date. The reference rate and spread used is shown parenthetically in the security description, if available; if not, the reference rate is described in a footnote. The date shown in the maturity date column below is either the date on which the principal amount must be paid or the date payment must be made pursuant to a demand feature. If the security’s structure includes one of a number of maturity-shortening provisions set forth in Rule 2a-7, such as an interest rate reset, demand feature or put feature, the effective maturity date is also disclosed. If the effective maturity and maturity date are the same, the date will only appear in the maturity date column.

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
CERTIFICATES OF DEPOSIT 28.1% OF NET ASSETS
BANK OF MONTREAL (CHICAGO BRANCH) (SOFR + 0.18%)	(a)	1.69%	07/01/22	08/23/22	298,000,000	298,000,000
BANK OF NOVA SCOTIA (HOUSTON BRANCH)
(SOFR + 0.20%)	(a)	1.71%	07/01/22	11/22/22	296,000,000	296,000,000
(SOFR + 0.55%)	(a)	2.06%	07/01/22	12/23/22	199,000,000	199,000,000
(SOFR + 0.40%)	(a)	1.91%	07/01/22	01/09/23	359,500,000	359,500,000
(SOFR + 0.46%)	(a)	1.97%	07/01/22	02/13/23	114,000,000	114,000,000
(SOFR + 0.50%)	(a)	2.01%	07/01/22	03/13/23	297,000,000	297,000,000
(SOFR + 0.51%)	(a)	2.02%	07/01/22	03/16/23	95,000,000	94,999,759
(SOFR + 0.51%)	(a)	2.02%	07/01/22	03/24/23	277,000,000	277,000,000
BARCLAYS BANK PLC (NEW YORK BRANCH)
		0.35%		07/01/22	960,000,000	960,000,000
(SOFR + 0.19%)	(a)	1.71%	07/01/22	08/17/22	57,000,000	57,000,000
(SOFR + 0.45%)	(a)	1.97%	07/01/22	10/07/22	253,000,000	253,000,000
(SOFR + 0.40%)	(a)	1.92%	07/01/22	10/13/22	109,000,000	109,000,000
(SOFR + 0.44%)	(a)	1.96%	07/01/22	12/01/22	67,000,000	67,000,000
BNP PARIBAS (NEW YORK BRANCH)
(SOFR + 0.15%)	(a)	1.66%	07/01/22	08/01/22	199,000,000	199,000,000
(SOFR + 0.15%)	(a)	1.66%	07/01/22	08/08/22	100,000,000	100,000,000
CANADIAN IMPERIAL BANK OF COMMERCE (NEW YORK BRANCH)
		0.33%		07/05/22	100,000,000	100,000,000
(SOFR + 0.17%)	(a)	1.68%	07/01/22	08/19/22	461,000,000	461,000,000
		0.35%		11/04/22	240,000,000	240,000,000
		2.92%		12/20/22	288,000,000	288,000,000
CITIBANK NA
		2.30%		09/27/22	482,000,000	482,000,000
		2.30%		09/28/22	500,000,000	500,000,000
		3.02%		01/03/23	395,000,000	395,000,000
COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH)		1.72%		09/22/22	150,000,000	150,000,000
COOPERATIEVE RABOBANK UA (LONDON BRANCH)		0.28%		08/16/22	95,000,000	95,000,000

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
COOPERATIEVE RABOBANK UA (NEW YORK BRANCH)
(SOFR + 0.16%)	(a)	1.67%	07/01/22	08/22/22	255,000,000	255,000,000
(SOFR + 0.16%)	(a)	1.67%	07/01/22	08/25/22	300,000,000	300,000,000
(SOFR + 0.16%)	(a)	1.67%	07/01/22	09/09/22	158,000,000	158,000,000
(SOFR + 0.17%)	(a)	1.68%	07/01/22	09/23/22	132,000,000	132,000,000
(SOFR + 0.35%)	(a)	1.86%	07/01/22	11/21/22	350,000,000	350,000,000
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (NEW YORK BRANCH)		1.60%		09/01/22	29,800,000	29,800,000
CREDIT AGRICOLE SA (LONDON BRANCH)
		1.45%		08/12/22	183,200,000	183,200,000
		1.54%		08/25/22	106,000,000	106,000,000
		1.56%		08/26/22	109,000,000	109,000,000
		1.60%		08/26/22	22,500,000	22,500,000
		1.62%		08/31/22	221,100,000	221,100,000
		2.18%		09/21/22	53,000,000	53,000,000
DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK (NEW YORK BRANCH)		1.56%		07/07/22	673,000,000	673,000,000
LANDESBANK BADEN WUERTTEMBERG (NEW YORK BRANCH)
		1.59%		07/05/22	463,000,000	463,000,000
		1.59%		07/06/22	321,000,000	321,000,000
MITSUBISHI UFJ TRUST AND BANKING CORP (LONDON BRANCH)
		1.34%		07/27/22	70,000,000	69,932,484
		1.55%		08/17/22	86,000,000	86,000,000
		1.60%		08/24/22	8,500,000	8,500,000
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)
		0.45%		07/19/22	123,000,000	123,000,000
(SOFR + 0.19%)	(a)	1.70%	07/01/22	08/12/22	200,000,000	200,000,000
		1.45%		08/24/22	266,000,000	266,000,000
(SOFR + 0.33%)	(a)	1.84%	07/01/22	09/06/22	7,000,000	7,000,000
(SOFR + 0.37%)	(a)	1.88%	07/01/22	10/25/22	174,000,000	174,000,000
(SOFR + 0.48%)	(a)	1.99%	07/01/22	12/16/22	200,000,000	200,000,000
MIZUHO BANK LTD (NEW YORK BRANCH)
(SOFR + 0.31%)	(a)	1.83%	07/01/22	09/21/22	100,000,000	100,000,000
		2.35%		10/03/22	271,000,000	271,000,000
		2.35%		10/05/22	200,000,000	200,000,000
		2.40%		10/07/22	224,000,000	224,000,000
		2.45%		10/13/22	79,000,000	79,000,000
MUFG BANK LTD (LONDON BRANCH)
		1.03%		07/01/22	97,000,000	97,000,000
		1.03%		07/07/22	54,000,000	54,000,000
		1.04%		07/08/22	188,000,000	187,962,092
		1.79%		09/09/22	53,000,000	53,000,000

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Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
MUFG BANK LTD (NEW YORK BRANCH)
(SOFR + 0.16%)	(a)	1.68%	07/01/22	07/26/22	185,000,000	185,000,000
		0.34%		08/23/22	205,000,000	205,000,000
(SOFR + 0.19%)	(a)	1.71%	07/01/22	08/24/22	263,000,000	263,000,000
(SOFR + 0.42%)	(a)	1.94%	07/01/22	11/09/22	147,000,000	147,000,000
(SOFR + 0.42%)	(a)	1.94%	07/01/22	11/14/22	166,000,000	166,000,000
(SOFR + 0.45%)	(a)	1.97%	07/01/22	11/30/22	74,000,000	74,000,000
NATIXIS (NEW YORK BRANCH)		1.43%		08/02/22	150,000,000	150,000,000
NORDEA BANK ABP (NEW YORK BRANCH)
(SOFR + 0.15%)	(a)	1.67%	07/01/22	08/23/22	138,000,000	138,000,000
(SOFR + 0.16%)	(a)	1.68%	07/01/22	08/29/22	350,000,000	350,000,000
(SOFR + 0.37%)	(a)	1.89%	07/01/22	10/28/22	194,000,000	194,000,000
(SOFR + 0.40%)	(a)	1.91%	07/01/22	11/23/22	38,800,000	38,800,000
OVERSEA CHINESE BANKING CORPORATION LTD (NEW YORK BRANCH)
(SOFR + 0.15%)	(a)	1.67%	07/01/22	08/10/22	190,000,000	190,000,000
(SOFR + 0.43%)	(a)	1.94%	07/01/22	12/06/22	99,000,000	99,000,000
(SOFR + 0.48%)	(a)	2.00%	07/01/22	02/27/23	83,100,000	83,100,000
(SOFR + 0.53%)	(a)	2.05%	07/01/22	03/22/23	200,000,000	200,000,000
ROYAL BANK OF CANADA (NEW YORK BRANCH)
(SOFR + 0.51%)	(a)	2.02%	07/01/22	12/29/22	263,000,000	263,000,000
(SOFR + 0.51%)	(a)	2.02%	07/01/22	01/05/23	495,000,000	495,000,000
(SOFR + 0.50%)	(a)	2.01%	07/01/22	03/06/23	238,000,000	238,000,000
(SOFR + 0.50%)	(a)	2.01%	07/01/22	03/16/23	344,500,000	344,500,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH)		1.06%		07/29/22	100,000,000	100,000,000
SUMITOMO MITSUI BANKING CORP (NEW YORK BRANCH)
		0.32%		07/05/22	163,000,000	163,000,000
(SOFR + 0.18%)	(a)	1.69%	07/01/22	08/01/22	323,000,000	323,000,000
(SOFR + 0.18%)	(a)	1.69%	07/01/22	08/08/22	188,000,000	188,000,000
(SOFR + 0.42%)	(a)	1.93%	07/01/22	11/09/22	370,000,000	370,000,000
(SOFR + 0.44%)	(a)	1.95%	07/01/22	11/22/22	44,000,000	44,000,000
(SOFR + 0.45%)	(a)	1.96%	07/01/22	11/23/22	177,000,000	177,000,000
(SOFR + 0.45%)	(a)	1.96%	07/01/22	12/06/22	180,500,000	180,500,000
(SOFR + 0.51%)	(a)	2.02%	07/01/22	12/16/22	48,650,000	48,650,000
(SOFR + 0.51%)	(a)	2.02%	07/01/22	12/27/22	46,000,000	46,000,000
SUMITOMO MITSUI TRUST BANK LTD (LONDON BRANCH)		1.65%		09/01/22	208,000,000	207,411,415
SUMITOMO MITSUI TRUST BANK LTD (NEW YORK BRANCH)
(SOFR + 0.32%)	(a)	1.83%	07/01/22	08/01/22	338,000,000	338,000,000
(SOFR + 0.31%)	(a)	1.82%	07/01/22	08/10/22	285,000,000	285,000,000
(SOFR + 0.18%)	(a)	1.69%	07/01/22	08/25/22	206,000,000	206,000,000

₁₁

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SVENSKA HANDELSBANKEN AB (NEW YORK BRANCH)
		0.33%		07/05/22	285,000,000	285,000,000
		0.30%		07/08/22	200,000,000	200,000,000
		0.20%		07/15/22	57,000,000	57,000,000
		0.27%		08/12/22	242,000,000	242,000,000
		0.28%		08/15/22	250,000,000	250,000,000
		0.37%		09/02/22	90,000,000	90,000,000
SWEDBANK (NEW YORK BRANCH)		1.14%		08/08/22	200,000,000	200,000,000
TORONTO-DOMINION BANK (NEW YORK BRANCH)
		0.21%		08/08/22	82,000,000	82,000,000
(SOFR + 0.16%)	(a)	1.66%	07/01/22	08/08/22	332,000,000	332,000,000
		3.00%		12/27/22	134,000,000	134,000,000
(SOFR + 0.42%)	(a)	1.92%	07/01/22	01/04/23	225,000,000	225,000,000
(SOFR + 0.41%)	(a)	1.91%	07/01/22	01/17/23	139,100,000	139,100,000
(SOFR + 0.48%)	(a)	2.00%	07/01/22	02/21/23	483,000,000	483,000,000
(SOFR + 0.48%)	(a)	2.00%	07/01/22	02/24/23	283,000,000	283,000,000
(SOFR + 0.49%)	(a)	2.01%	07/01/22	02/27/23	403,000,000	403,000,000
(SOFR + 0.50%)	(a)	2.02%	07/01/22	03/02/23	228,800,000	228,800,000
WESTPAC BANKING CORPORATION (NEW YORK BRANCH) (SOFR + 0.36%)	(a)	1.87%	07/01/22	11/14/22	120,000,000	120,000,000
Total Certificates Of Deposit (Cost $22,422,355,750)						22,422,355,750

ASSET-BACKED COMMERCIAL PAPER 7.1% OF NET ASSETS
ANTALIS SA	(b)(c)	1.60%		07/05/22	30,720,000	30,714,539
BARTON CAPITAL SA
	(b)(c)	2.31%		09/22/22	21,000,000	20,888,642
	(b)(c)	2.47%		10/04/22	52,000,000	51,663,806
BEDFORD ROW FUNDING CORP
	(b)(c)	1.14%		08/02/22	50,000,000	49,949,333
(EFFR + 0.16%)	(a)(b)(c)	1.74%	07/01/22	08/25/22	100,000,000	100,000,000
(EFFR + 0.12%)	(a)(b)(c)	1.70%	07/01/22	09/01/22	6,000,000	5,999,689
	(b)(c)	1.63%		09/12/22	60,000,000	59,802,900
(EFFR + 0.19%)	(a)(b)(c)	1.77%	07/01/22	11/09/22	145,000,000	145,000,000
(EFFR + 0.19%)	(a)(b)(c)	1.77%	07/01/22	11/22/22	100,000,000	100,000,000
(SOFR + 0.42%)	(a)(b)(c)	1.93%	07/01/22	11/28/22	96,000,000	96,000,000
(SOFR + 0.45%)	(a)(b)(c)	1.96%	07/01/22	02/01/23	128,000,000	128,000,000
(SOFR + 0.45%)	(a)(b)(c)	1.96%	07/01/22	02/02/23	89,000,000	89,000,000
(SOFR + 0.48%)	(a)(b)(c)	1.99%	07/01/22	02/15/23	250,000,000	250,000,000
(SOFR + 0.54%)	(a)(b)(c)	2.05%	07/01/22	03/24/23	191,000,000	191,000,000
CAFCO LLC
	(b)(c)	1.00%		07/01/22	53,000,000	53,000,000
	(b)(c)	1.56%		07/01/22	7,700,000	7,700,000

₁₂

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
CHARIOT FUNDING LLC
	(b)(c)	0.33%		07/05/22	37,000,000	36,998,643
(SOFR + 0.40%)	(a)(b)(c)	1.92%	07/01/22	11/07/22	100,000,000	100,000,000
	(b)(c)	2.02%		11/08/22	150,000,000	148,916,667
CHARTA LLC
	(b)(c)	1.56%		07/01/22	7,300,000	7,300,000
	(b)(c)	1.00%		07/13/22	90,000,000	89,970,000
COLLATERALIZED COMMERCIAL PAPER V CO LLC
	(c)	1.20%		07/15/22	90,000,000	89,958,000
	(c)	0.47%		07/20/22	31,000,000	30,992,310
	(c)	1.33%		09/01/22	148,000,000	147,663,547
	(c)	1.49%		09/26/22	91,000,000	90,674,523
(SOFR + 0.49%)	(a)(c)	2.00%	07/01/22	10/05/22	248,000,000	248,000,000
(SOFR + 0.35%)	(a)(c)	1.86%	07/01/22	10/19/22	92,000,000	92,000,000
(SOFR + 0.45%)	(a)(c)	1.96%	07/01/22	12/06/22	194,000,000	194,000,000
(SOFR + 0.44%)	(a)(c)	1.95%	07/01/22	12/12/22	77,000,000	77,000,000
(SOFR + 0.44%)	(a)(c)	1.95%	07/01/22	12/14/22	215,000,000	215,000,000
CRC FUNDING LLC	(b)(c)	1.56%		07/01/22	3,800,000	3,800,000
GOTHAM FUNDING CORP	(b)(c)	1.30%		08/03/22	400,000,000	399,523,333
LMA AMERICAS LLC
	(b)(c)	1.33%		08/08/22	150,000,000	149,791,000
	(b)(c)	1.33%		08/09/22	103,500,000	103,351,995
	(b)(c)	1.48%		08/19/22	66,000,000	65,867,945
	(b)(c)	1.49%		08/22/22	50,000,000	49,893,111
	(b)(c)	1.81%		09/15/22	66,000,000	65,749,200
	(b)(c)	2.52%		10/04/22	27,000,000	26,821,875
MANHATTAN ASSET FUNDING COMPANY LLC
(SOFR + 0.18%)	(a)(b)(c)	1.69%	07/01/22	08/17/22	99,000,000	99,000,000
(SOFR + 0.43%)	(a)(b)(c)	1.94%	07/01/22	12/01/22	27,000,000	27,000,000
MATCHPOINT FINANCE PLC	(b)(c)	1.00%		07/01/22	58,000,000	58,000,000
OLD LINE FUNDING LLC
	(b)(c)	1.14%		07/27/22	50,000,000	49,958,833
	(b)(c)	1.63%		09/12/22	60,000,000	59,802,900
	(b)(c)	1.91%		09/13/22	92,000,000	91,640,689
	(b)(c)	1.93%		09/16/22	49,000,000	48,798,773
PRICOA SHORT TERM FUNDING LLC
	(b)(c)	1.05%		08/05/22	48,000,000	47,951,000
	(b)(c)	2.37%		10/07/22	25,000,000	24,840,070
RIDGEFIELD FUNDING COMPANY LLC
	(b)(c)	1.00%		07/11/22	51,000,000	50,985,833
	(b)(c)	1.30%		08/03/22	99,000,000	98,882,025
	(b)(c)	1.81%		09/22/22	250,000,000	248,962,500

₁₃

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
SHEFFIELD RECEIVABLES COMPANY LLC
	(b)(c)	2.26%		09/23/22	97,000,000	96,490,750
	(b)(c)	2.26%		09/26/22	98,000,000	97,467,125
	(b)(c)	2.32%		09/28/22	23,500,000	23,365,795
STARBIRD FUNDING CORP
(SOFR + 0.17%)	(a)(b)(c)	1.68%	07/01/22	08/10/22	93,000,000	93,000,000
	(b)(c)	3.05%		12/19/22	96,000,000	94,632,000
THUNDER BAY FUNDING LLC
	(b)(c)	1.96%		09/13/22	95,000,000	94,619,208
	(b)(c)	2.21%		09/27/22	70,000,000	69,623,556
VERSAILLES COMMERCIAL PAPER LLC
	(b)(c)	1.08%		07/07/22	75,000,000	74,986,500
	(b)(c)	1.10%		07/08/22	146,000,000	145,968,772
	(b)(c)	1.66%		09/02/22	100,000,000	99,711,250
	(b)(c)	1.66%		09/07/22	38,000,000	37,881,567
Total Asset-Backed Commercial Paper (Cost $5,645,560,204)						5,645,560,204

FINANCIAL COMPANY COMMERCIAL PAPER 19.5% OF NET ASSETS
ANZ NEW ZEALAND INTL LTD (LONDON BRANCH)	(b)(c)	1.66%		09/14/22	88,000,000	87,697,500
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD
	(b)	0.44%		07/20/22	210,000,000	209,951,233
(SOFR + 0.15%)	(a)(b)	1.66%	07/01/22	08/18/22	100,000,000	100,000,000
	(b)	1.73%		09/19/22	295,000,000	293,872,445
	(b)	2.35%		10/11/22	53,000,000	52,650,112
(SOFR + 0.39%)	(a)(b)	1.90%	07/01/22	11/04/22	150,000,000	150,000,000
BANK OF MONTREAL
(SOFR + 0.17%)	(a)(b)	1.68%	07/01/22	08/17/22	246,000,000	246,000,000
(SOFR + 0.36%)	(a)(b)	1.87%	07/01/22	10/06/22	179,000,000	179,000,000
BARCLAYS BANK UK PLC
	(b)	1.60%		07/01/22	193,000,000	193,000,000
	(b)	1.60%		07/05/22	242,000,000	241,956,978
	(b)	1.60%		07/06/22	48,000,000	47,989,333
	(b)	1.60%		07/07/22	140,000,000	139,962,667
BAYERISCHE LANDESBANK (NEW YORK BRANCH)
		1.58%		07/07/22	291,000,000	290,923,370
		1.58%		07/08/22	484,000,000	483,851,305
BNP PARIBAS SA (SOFR + 0.41%)	(a)(b)	1.92%	07/01/22	11/28/22	57,000,000	57,000,000
BOFA SECURITIES INC
	(b)	2.21%		09/21/22	140,000,000	139,298,444
(SOFR + 0.40%)	(a)(b)	1.91%	07/01/22	11/16/22	240,000,000	240,000,000
(SOFR + 0.46%)	(a)(b)	1.97%	07/01/22	02/10/23	290,000,000	290,000,000
(SOFR + 0.46%)	(a)(b)	1.97%	07/01/22	02/23/23	196,000,000	196,000,000

₁₄

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
BPCE SA
(SOFR + 0.30%)	(a)(b)	1.81%	07/01/22	08/01/22	350,000,000	350,000,000
	(b)	1.45%		08/04/22	38,000,000	37,948,320
	(b)	1.75%		09/08/22	184,000,000	183,386,360
CITIGROUP GLOBAL MARKETS INC
	(b)	0.42%		07/13/22	380,000,000	379,946,800
	(b)	1.34%		09/01/22	95,000,000	94,782,397
	(b)	1.49%		10/03/22	150,000,000	149,420,333
	(b)	1.49%		10/04/22	126,000,000	125,507,900
DBS BANK LTD
	(b)	1.00%		07/18/22	245,000,000	244,884,306
	(b)	1.00%		07/19/22	47,000,000	46,976,500
	(b)	2.31%		09/30/22	487,000,000	484,168,636
DNB BANK ASA	(b)	0.34%		07/06/22	87,500,000	87,495,868
DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK FRANKFURT AM MAIN	(b)	1.03%		07/13/22	116,000,000	115,960,173
FEDERATION DES CAISSES DESJARDINS DU QUEBEC
	(b)	1.58%		07/05/22	48,000,000	47,991,600
	(b)	2.20%		09/21/22	200,000,000	199,002,333
JP MORGAN SECURITIES LLC (SOFR + 0.41%)	(a)(b)	1.93%	07/01/22	11/28/22	192,000,000	192,000,000
MACQUARIE BANK LTD
	(b)	1.55%		08/17/22	183,000,000	182,632,068
(SOFR + 0.30%)	(a)(b)	1.82%	07/01/22	08/22/22	331,000,000	331,000,000
(SOFR + 0.35%)	(a)(b)	1.87%	07/01/22	10/12/22	270,900,000	270,900,000
MITSUBISHI UFJ TRUST AND BANKING CORP (SINGAPORE BRANCH)
	(b)	1.51%		08/12/22	35,000,000	34,938,750
	(b)	1.56%		08/19/22	40,600,000	40,514,345
MITSUBISHI UFJ TRUST AND BANKING CORPORATION (NEW YORK BRANCH)	(b)	1.03%		07/20/22	64,000,000	63,965,209
MIZUHO BANK LTD (SINGAPORE BRANCH)
	(b)	1.51%		08/03/22	98,000,000	97,865,250
	(b)	1.22%		08/04/22	144,000,000	143,834,080
	(b)	1.48%		08/18/22	100,000,000	99,804,000
	(b)	1.48%		08/19/22	298,000,000	297,403,752
	(b)	1.51%		08/23/22	25,000,000	24,944,792
	(b)	1.61%		09/06/22	15,000,000	14,955,194
NATIONAL AUSTRALIA BANK LTD
(SOFR + 0.17%)	(a)(b)	1.68%	07/01/22	07/25/22	110,000,000	110,000,000
(SOFR + 0.16%)	(a)(b)	1.67%	07/01/22	09/01/22	200,000,000	200,000,000
(SOFR + 0.33%)	(a)(b)	1.84%	07/01/22	10/07/22	200,000,000	200,000,000
(SOFR + 0.36%)	(a)(b)	1.87%	07/01/22	10/27/22	300,000,000	300,000,000
(SOFR + 0.38%)	(a)(b)	1.89%	07/01/22	11/04/22	296,000,000	296,000,000
(SOFR + 0.38%)	(a)(b)	1.89%	07/01/22	11/07/22	195,000,000	195,000,000

₁₅

Schwab Value Advantage Money Fund | Semiannual Report

See financial notes

Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
NATIONAL BANK OF CANADA
(SOFR + 0.16%)	(a)(b)	1.67%	07/01/22	08/04/22	52,000,000	52,000,000
(SOFR + 0.17%)	(a)(b)	1.68%	07/01/22	08/30/22	165,000,000	165,000,000
OVERSEA-CHINESE BANKING CORPORATION LTD (SOFR + 0.48%)	(a)(b)	2.00%	07/01/22	12/23/22	55,000,000	55,000,000
ROYAL BANK OF CANADA
	(b)	0.33%		07/05/22	200,000,000	199,992,667
(SOFR + 0.18%)	(a)(b)	1.69%	07/01/22	08/23/22	59,000,000	59,000,000
SANTANDER UK PLC
		1.50%		08/18/22	283,000,000	282,437,773
		1.65%		09/07/22	389,000,000	387,794,964
		2.30%		10/04/22	78,000,000	77,530,700
SKANDINAVISKA ENSKILDA BANKEN AB
	(b)	0.33%		07/05/22	219,000,000	218,991,970
	(b)	0.28%		08/08/22	290,000,000	289,914,289
	(b)	0.28%		08/12/22	206,000,000	205,932,707
(SOFR + 0.16%)	(a)(b)	1.68%	07/01/22	08/15/22	97,000,000	97,000,000
(SOFR + 0.36%)	(a)(b)	1.88%	07/01/22	10/26/22	61,000,000	61,000,000
(SOFR + 0.39%)	(a)(b)	1.91%	07/01/22	11/10/22	337,000,000	337,000,000
(SOFR + 0.40%)	(a)(b)	1.92%	07/01/22	11/17/22	91,000,000	91,000,000
(SOFR + 0.44%)	(a)(b)	1.96%	07/01/22	12/27/22	112,000,000	112,000,000
SKANDINAVISKA ENSKILDA BANKEN AB (NEW YORK BRANCH) (SOFR + 0.41%)	(a)(b)	1.93%	07/01/22	11/23/22	27,000,000	27,000,000
SOCIETE GENERALE SA
	(b)	1.63%		08/31/22	290,000,000	289,201,493
	(b)	2.14%		08/31/22	12,000,000	11,956,690
SUMITOMO MITSUI TRUST BANK LTD (SINGAPORE BRANCH)
	(b)	1.27%		08/04/22	65,000,000	64,922,036
	(b)	1.36%		08/08/22	206,000,000	205,706,450
	(b)	1.84%		09/20/22	154,000,000	153,365,905
SWEDBANK AB
(SOFR + 0.37%)	(a)	1.88%	07/01/22	10/25/22	300,000,000	300,000,000
(SOFR + 0.39%)	(a)	1.90%	07/01/22	11/03/22	200,000,000	200,000,000
(SOFR + 0.41%)	(a)	1.92%	07/01/22	11/14/22	333,000,000	333,000,000
(SOFR + 0.44%)	(a)	1.95%	07/01/22	12/20/22	106,000,000	106,000,000
UBS AG (LONDON BRANCH)
(SOFR + 0.43%)	(a)(b)	1.95%	07/01/22	11/14/22	50,000,000	50,000,000
(SOFR + 0.46%)	(a)(b)	1.98%	07/01/22	12/16/22	87,000,000	87,000,000
(SOFR + 0.48%)	(a)(b)	2.00%	07/01/22	12/21/22	200,000,000	200,000,000
(SOFR + 0.47%)	(a)(b)	1.99%	07/01/22	12/28/22	200,000,000	200,000,000
(SOFR + 0.50%)	(a)(b)	2.02%	07/01/22	02/16/23	295,000,000	295,000,000
UNITED OVERSEAS BANK LTD
(SOFR + 0.19%)	(a)(b)	1.71%	07/01/22	10/18/22	113,000,000	113,000,000
(SOFR + 0.19%)	(a)(b)	1.71%	07/01/22	10/25/22	244,000,000	244,000,000
(SOFR + 0.46%)	(a)(b)	1.98%	07/01/22	02/23/23	130,000,000	130,000,000

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
WESTPAC BANKING CORP
(SOFR + 0.14%)	(a)(b)	1.65%	07/01/22	08/04/22	200,000,000	200,000,000
(SOFR + 0.35%)	(a)(b)	1.86%	07/01/22	10/24/22	170,000,000	170,000,000
(SOFR + 0.36%)	(a)(b)	1.87%	07/01/22	11/14/22	100,000,000	99,999,352
(SOFR + 0.48%)	(a)(b)	1.99%	07/01/22	01/03/23	98,000,000	98,000,000
Total Financial Company Commercial Paper (Cost $15,552,129,349)						15,552,129,349

NON-FINANCIAL COMPANY COMMERCIAL PAPER 2.2% OF NET ASSETS
EQUINOR ASA	(b)	1.56%		07/01/22	194,000,000	194,000,000
TOTALENERGIES CAPITAL CANADA LTD
	(b)(c)	1.64%		07/05/22	229,000,000	228,958,271
	(b)(c)	1.64%		07/06/22	242,000,000	241,944,878
	(b)(c)	1.64%		07/07/22	290,000,000	289,920,733
TOYOTA CREDIT CANADA INC
		1.10%		07/06/22	45,000,000	44,993,125
		1.22%		08/02/22	34,000,000	33,963,431
		1.32%		08/22/22	42,000,000	41,920,527
(SOFR + 0.35%)	(a)	1.87%	07/01/22	10/06/22	50,000,000	50,000,000
TOYOTA FINANCE AUSTRALIA LTD
		1.41%		08/19/22	70,000,000	69,866,611
		1.66%		10/11/22	100,000,000	99,532,500
TOYOTA MOTOR CREDIT CORP
(SOFR + 0.18%)	(a)	1.70%	07/01/22	08/23/22	150,000,000	150,000,000
(SOFR + 0.23%)	(a)	1.75%	07/01/22	11/14/22	100,000,000	100,000,000
TOYOTA MOTOR FINANCE (NETHERLANDS) B.V.		1.51%		08/12/22	135,000,000	134,763,750
UNITEDHEALTH GROUP INC	(b)	1.56%		07/01/22	97,000,000	97,000,000
Total Non-Financial Company Commercial Paper (Cost $1,776,863,826)						1,776,863,826

NON-NEGOTIABLE TIME DEPOSITS 6.0% OF NET ASSETS
ABN AMRO BANK NV		1.58%		07/07/22	365,000,000	365,000,000
AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (LONDON BRANCH)		1.56%		07/05/22	1,436,000,000	1,436,000,000
BANCO SANTANDER SA (NEW YORK BRANCH)		1.58%		07/06/22	784,000,000	784,000,000
CREDIT INDUSTRIEL ET COMMERCIAL
		1.60%		07/05/22	290,000,000	290,000,000
		1.60%		07/06/22	193,000,000	193,000,000
DBS BANK LTD		1.60%		07/07/22	80,000,000	80,000,000

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
ING BANK NV
		1.59%		07/06/22	1,498,000,000	1,498,000,000
		1.59%		07/07/22	145,000,000	145,000,000
ROYAL BANK OF CANADA		1.57%		07/01/22	2,000,000	2,000,000
Total Non-Negotiable Time Deposits (Cost $4,793,000,000)						4,793,000,000

NON-U.S. SOVEREIGN, SUB-SOVEREIGN AND SUPRA-NATIONAL DEBT 0.3% OF NET ASSETS
CAISSE AMORTISSEMENT DE LA DETTE SOCIALE	(b)	1.02%		07/13/22	222,000,000	221,924,890
Total Non-U.S. Sovereign, Sub-Sovereign And Supra-National Debt (Cost $221,924,890)						221,924,890

VARIABLE RATE DEMAND NOTES 0.6% OF NET ASSETS
ABAG FINANCE AUTH
TAXABLE RB (PUBLIC POLICY INSTITUTE OF CALIFORNIA) SERIES 2001B (LOC: WELLS FARGO BANK NA)	(a)(d)	1.65%		07/07/22	17,550,000	17,550,000
BLUE MOUNTAIN ENTERPRISES, LLC
VARIABLE RATE DEMAND BONDS SERIES 2013 (LOC: WELLS FARGO BANK NA)	(a)(d)	1.67%		07/07/22	2,610,000	2,610,000
CAROL ALLEN LIQUIDITY TRUST II
TAXABLE VARIABLE RATE DEMAND NOTES SERIES 2021 (LOC: COMERICA BANK)	(a)(d)	1.67%		07/07/22	26,110,000	26,110,000
CELLMARK, INC
TAXABLE NOTES SERIES 2018A (LOC: SWEDBANK AB)	(a)(d)	1.64%		07/07/22	48,000,000	48,000,000
COOK CNTY
TAXABLE GO BONDS SERIES 2004D (LOC: BARCLAYS BANK PLC)	(a)(d)	1.58%		07/07/22	29,000,000	29,000,000
EAGLE CNTY
RB (BC HOUSING) SERIES 1997B (LOC: WELLS FARGO BANK NA)	(a)(d)	1.76%		07/07/22	1,500,000	1,500,000
RB (TARNES AT BC) SERIES 1999B (LOC: WELLS FARGO BANK NA)	(a)(d)	1.76%		07/07/22	2,410,000	2,410,000
HARTFORD HEALTHCARE CORP
TAXABLE BONDS SERIES C (LOC: JPMORGAN CHASE BANK NA)	(a)(d)	1.61%		07/07/22	49,000,000	49,000,000
ILLINOIS HOUSING DEVELOPMENT AUTH
HOUSING BONDS SERIES 2017A2 (LIQ: FEDERAL HOME LOAN BANKS)	(a)(d)	1.62%		07/07/22	23,800,000	23,800,000
ILLINOIS HSG DEV AUTH 2016
M/F RB SERIES 2022C (LIQ: FEDERAL HOME LOAN BANKS)	(a)(d)	1.58%		07/07/22	11,785,000	11,785,000
KNOX INDIANA
ECONOMIC DEVELOPMENT RB (TOLL IN) SERIES 2014 (LOC: TRUIST BANK)	(a)(d)	1.65%		07/07/22	11,300,000	11,300,000
LABCON NORTH AMERICA
TAXABLE BONDS SERIES 2010 (LOC: BANK OF THE WEST)	(a)(d)	1.60%		07/07/22	1,005,000	1,005,000
MACON-BIBB CNTY INDUSTRIAL AUTH
IDRB SERIES 2015 (LOC: BANK OF AMERICA NA)	(a)(d)	1.65%		07/07/22	6,840,000	6,840,000

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
NEW VIRIDIAN EDGE
M/F HOUSING RB (VIRIDIAN EDGE APTS) SERIES 2022 (LOC: FEDERAL HOME LOAN BANKS)	(a)(d)	1.64%		07/07/22	29,000,000	29,000,000
NUVEEN CREDIT STRATEGIES INCOME FUND
TAXABLE VARIABLE RATE DEMAND PREFERRED SHARES SERIES A (LOC: SOCIETE GENERALE SA)	(a)(b)(d)	1.81%		07/07/22	30,000,000	30,000,000
NUVEEN FLOATING RATE INCOME FUND
VARIABLE RATE DEMAND PREFERRED SHARES SERIES A (LOC: SUMITOMO MITSUI BANKING CORPORATION)	(a)(b)(d)	1.81%		07/07/22	31,000,000	31,000,000
NUVEEN SHORT DURATION CREDIT OPPORTUNITIES FUND
VARIABLE RATE DEMAND PREFERRED SHARES SERIES A (LOC: BARCLAYS BANK PLC)	(a)(b)(d)	1.81%		07/07/22	19,000,000	19,000,000
SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT
SUB WATER REFUNDING RB SERIES 2021A (LIQ: BANK OF AMERICA NA)	(a)(d)	1.66%		07/07/22	70,995,000	70,995,000
TENDERFOOT SEASONAL HOUSING, LLC
TAXABLE NOTES SERIES 2000B (LOC: WELLS FARGO BANK NA)	(a)(d)	1.76%		07/07/22	5,885,000	5,885,000
TRIBOROUGH BRIDGE & TUNNEL AUTH
GENERAL REFUNDING RB SERIES 2018E (LOC: BANK OF AMERICA NA)	(a)(d)	1.63%		07/07/22	8,000,000	8,000,000
YAVAPAI CNTY IDA
TAXABLE RB (DRAKE CEMENT) SERIES 2015 (LOC: BANK OF NOVA SCOTIA)	(a)(d)	1.60%		07/07/22	21,375,000	21,375,000
Total Variable Rate Demand Notes (Cost $446,165,000)						446,165,000

OTHER INSTRUMENTS 0.8% OF NET ASSETS
BANK OF AMERICA NA
		0.33%		07/05/22	198,000,000	198,000,000
(SOFR + 0.15%)	(a)	1.66%	07/01/22	08/16/22	200,000,000	200,000,000
(SOFR + 0.40%)	(a)	1.91%	07/01/22	12/05/22	246,000,000	246,000,000
Total Other Instruments (Cost $644,000,000)						644,000,000

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
REPURCHASE AGREEMENTS 35.6% OF NET ASSETS
U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENTS* 2.9%
BANCO SANTANDER SA
Issued 06/30/22, repurchase date 07/01/22		1.56%		07/01/22	65,002,817	65,000,000
(Collateralized by U.S. Government Agency Securities valued at $66,950,000, 1.50% - 5.50%, due 07/01/34 - 06/01/52)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
BARCLAYS BANK PLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	200,008,611	200,000,000
(Collateralized by U.S. Government Agency Securities valued at $209,188,059, 3.88% - 11.62%, due 09/25/24 - 05/20/52)
BOFA SECURITIES INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	1,350,058,125	1,350,000,000
(Collateralized by U.S. Government Agency Securities valued at $1,390,500,000, 1.47% - 6.15%, due 10/01/22 - 07/01/52)
DAIWA CAPITAL MARKETS AMERICA INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	180,007,750	180,000,000
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $185,053,894, 0.25% - 5.00%, due 03/15/24 - 06/01/52)
JP MORGAN SECURITIES LLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	50,002,153	50,000,000
(Collateralized by U.S. Government Agency Securities valued at $51,500,000, 1.63% - 7.00%, due 07/01/27 - 04/20/62)
RBC DOMINION SECURITIES INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	300,012,917	300,000,000
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $306,783,016, 0.13% - 3.38%, due 02/15/24 - 11/20/51)
WELLS FARGO SECURITIES LLC
Issued 06/30/22, repurchase date 07/01/22		1.56%		07/01/22	131,005,677	131,000,000
(Collateralized by U.S. Government Agency Securities valued at $136,245,904, 2.00% - 5.50%, due 01/01/23 - 07/01/52)
						2,276,000,000
U.S. TREASURY REPURCHASE AGREEMENTS 26.6%
BARCLAYS BANK PLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	67,899,355	67,896,432
(Collateralized by U.S. Treasury Securities valued at $69,257,394, 2.88% - 3.75%, due 04/30/29 - 08/15/41)
BNP PARIBAS SA
Issued 05/05/22, repurchase date 07/05/22		0.97%		07/05/22	610,000,959	609,000,000
(Collateralized by U.S. Treasury Securities valued at $622,200,985, 0.00% - 4.50%, due 07/15/22 - 05/15/52)
Issued 05/11/22, repurchase date 09/12/22		1.36%		07/07/22	701,507,333	700,000,000
(Collateralized by U.S. Treasury Securities valued at $717,344,742, 0.00% - 7.50%, due 07/07/22 - 05/15/51)
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	19,730,849,486	19,730,000,000
(Collateralized by U.S. Treasury Securities valued at $19,730,849,520, 0.13% - 2.63%, due 02/28/23 - 05/15/31)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
FICC - BANK OF NEW YORK
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	100,004,306	100,000,000
(Collateralized by U.S. Treasury Securities valued at $102,000,011, 0.38% - 0.50%, due 05/31/27 - 07/31/27)
						21,206,896,432
OTHER REPURCHASE AGREEMENTS** 6.1%
BMO CAPITAL MARKETS CORP
Issued 06/30/22, repurchase date 07/07/22		1.66%		07/07/22	121,039,056	121,000,000
(Collateralized by U.S. Treasury Securities and common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $127,055,985, 0.00% - 7.00%, due 12/01/23 - 12/31/00)
BNP PARIBAS SA
Issued 06/29/22, repurchase date 07/06/22		1.66%		07/06/22	294,094,897	294,000,000
(Collateralized by U.S. Treasury Securities, U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $336,065,120, 1.38% - 14.37%, due 11/27/23 - 12/31/00)
Issued 06/29/22, repurchase date 07/06/22		1.72%		07/06/22	460,153,844	460,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $529,177,195, 0.00% - 10.50%, due 07/20/26 - 04/01/51)
Issued 05/10/22, repurchase date 08/08/22		1.45%		08/04/22	145,502,264	145,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $167,354,469, 1.58% - 7.15%, due 09/15/25 - 07/17/46)
Issued 05/31/22, repurchase date 08/29/22		1.70%		08/04/22	190,583,194	190,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $202,743,825, 0.63% - 8.63%, due 05/01/23 - 12/31/00)
BOFA SECURITIES INC
Issued 06/17/22, repurchase date 08/01/22	(a)	1.92%	07/01/22	08/01/22	419,003,200	418,000,000
(Collateralized by U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $480,700,001, 0.00% - 13.37%, due 06/20/23 - 01/15/69) (SOFR + 0.41%)
Issued 06/24/22, repurchase date 09/28/22	(a)	2.01%	07/01/22	09/28/22	243,297,120	242,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $261,360,000, 0.00%, due 01/01/49 - 12/31/00) (SOFR + 0.50%)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK SA
Issued 06/27/22, repurchase date 07/01/22		1.63%		07/01/22	97,017,568	97,000,000
(Collateralized by U.S. Treasury Securities, U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $100,452,106, 0.00% - 5.30%, due 10/06/22 - 07/01/52)
Issued 06/29/22, repurchase date 07/06/22		1.63%		07/06/22	508,161,008	508,000,000
(Collateralized by U.S. Treasury Securities, U.S. Government Agency Securities and common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $538,320,927, 0.13% - 16.21%, due 07/18/22 - 12/31/00)
JP MORGAN SECURITIES LLC
Issued 06/28/22, repurchase date 07/05/22		1.70%		07/05/22	403,133,214	403,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $463,493,771, 0.00% - 11.50%, due 01/30/23 - 07/01/14)
Issued 04/29/22, repurchase date 10/26/22	(a)	1.89%	07/01/22	09/28/22	828,559,560	822,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $947,562,943, 0.00% - 8.22%, due 07/15/24 - 10/25/69) (SOFR + 0.38%)
Issued 06/13/22, repurchase date 12/12/22	(a)	1.93%	07/01/22	09/28/22	433,472,384	431,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $496,048,723, 1.03% - 50.60%, due 05/15/23 - 05/25/65) (SOFR + 0.42%)
MIZUHO SECURITIES USA LLC
Issued 06/30/22, repurchase date 07/01/22		1.67%		07/01/22	24,001,113	24,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $25,920,081, 0.00%, due 12/31/00)
RBC CAPITAL MARKETS LLC
Issued 06/30/22, repurchase date 07/07/22		1.67%		07/07/22	242,078,583	242,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $254,182,721, 0.52% - 10.20%, due 08/01/22 - 12/31/00)
WELLS FARGO SECURITIES LLC
Issued 05/03/22, repurchase date 10/28/22		1.80%		10/03/22	307,333,250	305,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $353,871,675, 0.25% - 6.44%, due 01/20/23 - 08/26/69)

₂₂

Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
Issued 06/08/22, repurchase date 12/05/22		2.17%		10/03/22	170,191,873	169,000,000
(Collateralized by common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations valued at $196,458,698, 0.00% - 7.77%, due 10/17/22 - 12/15/62)
						4,871,000,000
Total Repurchase Agreements (Cost $28,353,896,432)						28,353,896,432
Total Investments in Securities (Cost $79,855,895,451)						79,855,895,451

*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
**	Collateralized via common stocks, ETFs, corporate bonds, asset backed securities, American depositary receipts, or non-agency collateralized mortgage obligations or less frequently by higher rated U.S. Government Agency Securities and/ or U.S. Treasury Securities. Securities without a stated maturity date, such as common stocks, ETFs, American depositary receipts and perpetual bonds, are represented by 12/31/00.
(a)	Variable rate security; rate shown is effective rate at period end.
(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 $18,904,611,833 or 23.7% of net assets.
(c)	Credit-enhanced or liquidity-enhanced.
(d)	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index.

AUTH —	Authority
CNTY —	County
DEV —	Development
EFFR —	Effective Federal Funds Rate is published daily by the Federal Reserve Bank of New York and is based on the interest rate financial institutions charge each other for overnight funds.
FICC —	Fixed Income Clearing Corp
GO —	General obligation
HSG —	Housing
IDA —	Industrial development agency/authority
IDRB —	Industrial development revenue bond
LIQ —	Liquidity agreement
LOC —	Letter of credit
M/F —	Multi-family
RB —	Revenue bond
SIFMA —	Securities Industry and Financial Markets Association. The SIFMA Municipal Swap Index is a market index comprised of high-grade 7-day tax-exempt Variable Rate Demand Obligations with certain characteristics.
SOFR —	Secured Overnight Financing Rate is published daily by the Federal Reserve Bank of New York and is based on the cost of borrowing cash overnight collateralized by U.S. Treasury securities.
VRDN —	Variable rate demand note

At June 30, 2022, all of the fund’s investment securities were classified as Level 2. The breakdown of the fund’s investments into categories is disclosed on the Portfolio Holdings. (See financial note 2(a) for additional information)

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Schwab Value Advantage Money Fund | Semiannual Report

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Table of Contents

Schwab Value Advantage Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	1/1/22-6/30/22		1/1/21-12/31/21
Net investment income		$111,121,714	$29,661,168
Net realized gains	+	19,783	9,276
Increase in net assets from operations		$111,141,497	$29,670,444
DISTRIBUTIONS TO SHAREHOLDERS
Investor Shares		($57,256,447)	($17,251,715)
Ultra Shares	+	(52,625,733)	(12,414,827)
Total distributions		($109,882,180)	($29,666,542)
TRANSACTIONS IN FUND SHARES*
Shares Sold
Investor Shares		19,739,716,304	16,073,464,443
Ultra Shares	+	17,708,722,034	23,051,474,291
Total shares sold		37,448,438,338	39,124,938,734
Shares Reinvested
Investor Shares		27,891,572	14,038,849
Ultra Shares	+	28,534,027	10,043,474
Total shares reinvested		56,425,599	24,082,323
Shares Redeemed
Investor Shares		(14,823,960,345)	(30,261,185,452)
Ultra Shares	+	(18,325,325,713)	(27,865,832,468)
Total shares redeemed		(33,149,286,058)	(58,127,017,920)
Net transactions in fund shares		4,355,577,879	(18,977,996,863)
NET ASSETS
Beginning of period		$75,323,276,714	$94,301,269,675
Total increase (decrease)	+	4,356,837,196	(18,977,992,961)
End of period		$79,680,113,910	$75,323,276,714

^*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

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Financial Notes, unaudited

1. Business Structure of the Fund:

Schwab Value Advantage Money Fund is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business 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 fund discussed in this report, which is highlighted:

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Retirement Government Money Fund
Schwab U.S. Treasury Money Fund	Schwab Municipal Money Fund
Schwab Treasury Obligations Money Fund	Schwab AMT Tax-Free Money Fund
Schwab Value Advantage Money Fund	Schwab California Municipal Money Fund
Schwab Variable Share Price Money Fund	Schwab New York Municipal Money Fund

Schwab Value Advantage Money Fund offers two share classes: Investor Shares and Ultra Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the fund’s Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the 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 fund uses in its preparation of financial statements. The fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the fund to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities in the fund are valued at amortized cost (which approximates fair value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate fair value, securities may be fair valued as determined in accordance with procedures adopted by the Board. The Pricing Committee considers a number of factors, including unobservable market inputs when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the fund pursuant to the valuation procedures.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If the fund determines 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.

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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.

• 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. Securities held by stable NAV money funds operating pursuant to Rule 2a-7 under the 1940 Act are valued at amortized cost which approximates current fair value and are considered to be valued using Level 2 inputs.

• Level 3 — significant unobservable inputs (including the fund’s 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 fund uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used by the fund 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 fund in the absence of market information. Assumptions used by the fund due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s 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.

As disclosed in the Portfolio Holdings, as of June 30, 2022, all of the fund’s investments were classified as Level 2.

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

Repurchase Agreements: In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The fund mitigates this risk by ensuring that a fund’s repurchase agreements are collateralized by cash and/or U.S. government securities, fixed income securities, equity securities or other types of securities. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and U.S. government securities, such as debt securities, equity securities and high yield securities that are rated below investment grade. All collateral is held by the fund’s custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its fair value is at least equal to the maturity amount under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2022, the fund had investments in repurchase agreements with a gross value of $28,353,896,432 as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities. The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Cash Investments: The fund may invest a portion of its assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the fund.

Delayed-Delivery Transactions: The fund may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The fund will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to the fund until the security is delivered. The fund will earmark or segregate appropriate liquid assets to cover its delayed-delivery purchase obligations, if any.

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.

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Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

Interest income is recorded as it accrues. If the fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).

(e) Expenses:

Expenses that are specific to the fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.

The fund offers multiple share classes. The net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The fund declares distributions from net investment income, if any, every day it is open for business. These distributions, which are substantially equal to the fund’s net investment income for that day, are paid out to shareholders once a month. The fund makes distributions from net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.

(g) Accounting Estimates:

The accounting policies described in this report conform to GAAP. 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 fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax.

(i) Indemnification:

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

(j) Recent Accounting Standards:

In March 2020, the FASB issued Accounting Standards Update “Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)” (ASU 2020-04), which provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered based reference rates at the end of 2021. The temporary relief provided is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. At this time, management believes the adoption of ASU 2020-04 will not have a material impact to the financial statements.

3. Risk Factors:

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

closures, low or negative interest rates, travel restrictions or quarantines; and significantly adversely impact the economy. Governmental and quasi-governmental authorities and regulators throughout the world have in the past often responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes which could have an unexpected impact on financial markets and the fund’s investments. As with any investment whose performance is tied to these markets, the value of an investment in the fund will fluctuate, which means that an investor could lose money over short or long periods.

Investment Risk. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Retail Money Market Fund Risk. The fund is a “retail money market fund,” as such term is defined or interpreted under the rules governing money market funds. A “retail money market fund” is a money market fund that has policies and procedures reasonably designed to limit all beneficial owners of the fund to natural persons. The fund may involuntarily redeem any investor who is not a natural person. The fund will provide advance notice of its intent to make any such involuntary redemption. Neither the fund nor the investment adviser will be responsible for any loss or tax liability in an investor’s account resulting from such involuntary redemption. As a “retail money market fund,” the fund is permitted to value its securities using the amortized cost method to seek to maintain a stable $1.00 share price. However, the fund may be subject to liquidity fees and/or redemption gates on fund redemptions if the fund’s liquidity falls below required minimums because of market conditions or other factors.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, the fund’s yield will change over time. During periods when interest rates are low or there are negative interest rates, the fund’s yield (and total return) also could be low or even negative. In addition, the fund may be unable to pay expenses out of fund assets or maintain a stable $1.00 share price. Also, a change in a central bank’s monetary policy or economic conditions may result in a change in interest rates, which could have sudden and unpredictable effects on the markets. A sudden or unpredictable rise or decline in interest rates may cause volatility. Volatility in the market may decrease liquidity in the money market securities markets, making it more difficult for the fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of the fund’s money market securities holdings.

Stable Net Asset Value Risk. If the fund or another money market fund fails to maintain a stable net asset value (or such perception exists in the market place), the fund could experience increased redemptions, which may adversely impact the fund’s share price. The fund is permitted, among other things, to reduce or withhold any income and/or gains generated from its portfolio to maintain a stable $1.00 share price.

Repurchase Agreements Risk. When the fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when the fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security. These risks are magnified to the extent that a repurchase agreement is secured by collateral other than cash and government securities, such as debt securities, equity securities and high-yield securities that are rated below investment grade (also referred to as junk bonds) (Alternative Collateral). High-yield securities that are used as Alternative Collateral are subject to greater levels of credit and liquidity risk, and are considered primarily speculative with respect to the issuer’s continuing ability to make principal and interest payments. Alternative Collateral may be subject to greater price volatility and may be more volatile or less liquid than other types of collateral, increasing the risk that the fund will be unable to recover fully in the event of a counterparty’s default.

Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in credit quality, the issuer, guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations. Even though the fund’s investments in repurchase agreements are collateralized at all times, there is some risk to the fund if the other party should default on its obligations and the fund is delayed or prevented from recovering or disposing of the collateral. The credit quality of the fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause the fund’s share price or yield to fall.

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Certain U.S. government securities that the fund invests in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) maintain only lines of credit with the U.S. Treasury. The Federal Home Loan Banks maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation, are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities the fund owns do not extend to the shares of the fund itself.

Credit and Liquidity Enhancements Risk. The fund may invest in securities with credit or liquidity enhancements provided by a bank or other financial institution, and the existence and nature of such enhancements may be a significant factor in the investment adviser’s decision-making process. Generally, these enhancements are employed by the issuers of the securities to reduce credit risk and provide enhanced or back-up liquidity for a purchaser, such as the fund. Adverse developments affecting these banks and financial institutions could therefore have a negative effect on the value of the fund’s holdings. For example, a rating agency downgrade of a credit or liquidity enhancement provider may adversely affect the value of securities held by the fund. Any decline in the value of the securities held by the fund could cause the fund’s share price or yield to fall. To the extent that a portion of the fund’s underlying investments are enhanced by the same bank or financial institution, these risks may be increased.

Foreign Investment Risk. Although the fund may invest only in U.S. dollar-denominated securities, the fund’s investments in securities of foreign issuers or securities with credit or liquidity enhancements provided by foreign entities may involve certain risks that are greater than those associated with investments in securities of U.S. issuers or securities with credit or liquidity enhancements provided by U.S. entities. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; the imposition of economic sanctions or other government restrictions; differing accounting, auditing, financial reporting and legal standards and practices; differing securities market structures; and higher transaction costs. These risks may negatively impact the value or liquidity of the fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. In addition, sovereign risk, or the risk that a government may become unwilling or unable to meet its loan obligations or guarantees, could increase the credit risk of financial institutions connected to that particular country.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. The fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect the fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, the fund’s yield at times could lag the yields of other money market funds.

Liquidity Risk. Liquidity risk exists when particular investments are difficult to purchase, sell or value, especially during stressed market conditions. The market for certain investments may become illiquid due to specific adverse changes in the conditions of a particular issuer or under adverse market or economic conditions independent of the issuer. In addition, limited dealer inventories of certain securities could potentially lead to decreased liquidity. In such cases, the fund, due to limitations on investments in illiquid securities and the difficulty in readily purchasing and selling such securities at favorable times or prices, may decline in value, experience lower returns and/or be unable to achieve its desired level of exposure to a certain issuer or sector. Further, transactions in illiquid securities may entail transaction costs that are higher than those for transactions in liquid securities.

Redemption Risk. The fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in the fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the fund, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Fund Regulation Risk. The SEC and other regulatory agencies continue to review the regulation of money market funds. As of the date of this shareholder report, the SEC has proposed amendments to the rules that govern money market funds. These proposed amendments, if implemented, may affect the fund’s investment strategies, performance, yield, expenses, operations and continued viability.

Money Market Fund Risk. The fund is not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

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

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions:

Investment Adviser

Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as the fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between the investment adviser and the trust.

For its advisory and administrative services to the fund, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.19% of the fund’s average daily net assets.

Shareholder Servicing

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the fund. The Plan enables the fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of the investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the fund.

Pursuant to the Plan, the fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the fund (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the fund), and the fund will pay no more than the amounts listed in the table below, calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers.

Payments under the Plan are made as described above without regard to whether the fee is more or less than the service provider’s actual cost of providing the services, and if more, such excess may be retained as profit by the service provider.

	SHAREHOLDER SERVICING FEE
Investor Shares	0.15%
Ultra Shares	n/a

Contractual Expense Limitation

The investment adviser and its affiliates have made an additional agreement with the fund, for so long as the investment adviser serves as the investment adviser to the fund, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation), as follows:

Investor Shares	0.34%
Ultra Shares	0.19%

During the period ended June 30, 2022, the fund waived a total of $21,904,022 in expenses: $2,326,016 was waived in accordance with the contractual expense limitation agreement and $19,578,006 was waived voluntarily.

Voluntary Yield Waiver/Reimbursement

The investment adviser and its affiliates may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for the fund.

Interfund Transactions

The fund may engage in transactions with certain other funds in the Fund Complex (for definition refer to the Trustees and Officers section) in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. 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 June 30, 2022, the fund’s purchases and sales of securities with other funds in the Fund Complex was $0 and $483,879,088 respectively, and includes realized gains (losses) of $0.

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (SEC), the fund may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The fund had no interfund borrowing or lending activity during the period.

5. Board of Trustees:

The Board may include people who are officers and/or directors of the investment adviser or its affiliates. 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, but it did pay non-interested persons (independent trustees), as noted on the fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the fund was a participant with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 29, 2022. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by the fund, the fund paid a commitment fee of 0.15% per annum on the fund’s proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the fund was a participant with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), maturing on September 29, 2022. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings from either line of credit during the period.

The fund also has access to custodian overdraft facilities. The fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on the fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of June 30, 2022, the tax basis cost of the fund’s investments was $79,855,895,451.

The tax-basis components of distributions and components of distributable earnings on a tax basis are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of June 30, 2022. The tax-basis components of distributions paid during the year ended December 31, 2021 were as follows:

PRIOR FISCAL YEAR END DISTRIBUTIONS

ORDINARY
INCOME

$29,666,542

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

As of December 31, 2021, 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 fund, and has determined that no provision for income tax is required in the fund’s financial statements. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the fiscal year ended December 31, 2021, the fund did not incur any interest or penalties.

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Investment Advisory Agreement Approval

The Investment Company Act of 1940, as amended (the 1940 Act), requires that 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.

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Value Advantage Money Fund (the Fund), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Fund that the Board reviews during the course of each year, including information that relates to the Fund’s operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.

The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance of the Agreement with respect to the Fund at meetings held on

May 16, 2022 and June 8, 2022, and approved the renewal of the Agreement with respect to the Fund for an additional one-year term at the meeting on June 8, 2022 called for the purpose of voting on such approval.

The Board’s approval of the continuance of the Agreement with respect to the Fund was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to the Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Fund;
2.	the Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	the Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to the Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.	the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement 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 provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Fund’s portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments the investment adviser has made in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Fund and its shareholders. The Trustees considered Schwab’s overall financial condition and its reputation as a full service brokerage firm, as well as the wide range of products, services, and

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account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Fund and the resources of the investment adviser and its affiliates dedicated to the Fund supported renewal of the Agreement with respect to the Fund.

Fund Performance. The Board considered the Fund’s performance in determining whether to renew the Agreement with respect to the Fund. Specifically, the Trustees considered the Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of portfolio yield and market trends, as well as in consideration of the Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of the Fund, the Trustees considered the risk profile for the Fund and the Fund’s operation as a money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of the Fund supported renewal 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 net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Fund and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Fund from exceeding a specified cap, as well as historically using voluntary waivers (which the investment adviser will not recoup) to maintain a certain yield. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts and any differences in the market for these types of accounts. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported renewal of the Agreement with respect to the Fund.

Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across the Fund and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Fund by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser is reasonable and supported renewal of the Agreement with respect to the Fund.

Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to the Fund’s shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has shared any economies of scale with the Fund by investing in the investment adviser’s infrastructure, as discussed above, over time and that the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Fund continue to increase as a result of regulatory or other developments. The Trustees considered that the investment adviser and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of such funds at subsidized expense levels. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund obtains reasonable benefits from economies of scale.

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Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, which includes the fund 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 and Laudus Trust. The Fund Complex includes 104 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 fund’s Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor.	104	None
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Retired.	104	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	104	Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare).	104	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired.	104	Director (2008 – present), KLA-Tencor Corporation

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	104	None
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services).	104	None

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present), and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc.	104	Director (2008 – present), The Charles Schwab Corporation
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Managing Director (Jan. 2022 – present), Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (Feb. 2018 – Apr. 2022), The Charles Schwab Corporation; Managing Director (May 2022 – present) and Senior Executive Vice President (July 2015 – May 2022), Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – Apr. 2020), Charles Schwab Bank, SSB; Director (Nov. 2017 – Apr. 2020), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Senior Executive Vice President (Feb. 2016 – present) and Chief Financial Officer (Feb. 2016 – Aug. 2017), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation.	104	None

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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
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Mar. 2019 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc.
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Director (July 2020 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs.
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs.
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc.
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs.

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 retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab.
³	The President, Treasurer and Secretary/Clerk 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.

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Glossary

144A securities These securities may be sold only to qualified institutional buyers under Securities Act Rule 144A.

agency discount notes Notes issued by federal agencies—known as Government Sponsored Enterprises, or GSEs—at a discount to their value at maturity. An agency discount note is a short-term investment offering a high degree of credit quality.

American Depositary Receipt (ADR) U.S. dollar-denominated receipts issued by U.S. banks or trust companies that represent shares of foreign-based corporations.

asset-backed commercial paper A short-term investment that is typically issued by a bank or other financial institution. The notes represent an interest in financial assets such as trade receivables, credit card receivables, auto receivables, etc. and are generally used for the short-term financing needs of companies. Asset-backed commercial paper is subject to credit risk.

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.

collateralized mortgage obligation (CMO) A type of security that is collateralized by pools of mortgages backed by government agencies or private issuers (non-agency). The streams of principal and interest payments on the mortgages are distributed to the different classes of CMO interests, known as tranches. Each tranche may have different principal balances, coupon rates, prepayment risks, and maturity dates.

commercial paper Promissory notes issued by banks, corporations and other entities to finance short-term credit needs. These securities generally are structured on a discounted basis but sometimes may be interest-bearing notes. Commercial paper, which may be unsecured, is subject to credit risk.

corporate note An unsecured debt security issued by a corporation that is subject to the credit risk of the issuer.

credit-enhanced securities Securities that are backed by the credit of an entity other than the issuer (such as a financial institution). Credit enhancements, which can equal up to 100% of the security’s value, are designed to help lower the risk of default on a security and may also make the security more liquid.

credit quality The capacity of an issuer to make its interest and principal payments. Federal regulations strictly regulate the credit quality of the securities a money market fund can buy.

credit ratings Debt issuers, including corporations, states and municipalities, may arrange with a recognized independent rating organization, such as Standard & Poor’s, Fitch, Inc., Moody’s Investor Service, and DBRS, to rate their creditworthiness and/or the creditworthiness of their debt issues. For example, an issuer may obtain a long-term rating within the investment grade rating category, which is, from high to low, AAA, AA, A and BBB for Standard & Poor’s, Fitch, and DBRS; and Aaa, Aa, A and Baa for Moody’s.

credit risk The risk that a debt issuer may be unable to pay interest or repay principal to its debt holders.

dollar-weighted average maturity See weighted average maturity.

effective yield A measurement of a fund’s yield that assumes that all interest income is reinvested in additional shares of the fund.

exchange-traded fund (ETF) An investment fund that tracks an index, a commodity or a basket of assets, and trades on an exchange.

expense ratio The amount that is taken from a mutual fund’s assets each year to cover the fund’s 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.

face value The value of a bond, note, mortgage or other security as given on the certificate or instrument. Face value is also referred to as par value or nominal value.

illiquid securities Securities are generally considered illiquid if they cannot be disposed of promptly (typically within seven days) and in the ordinary course of business at approximately the amount at which a fund has valued the instruments.

interest Payments to holders of debt securities as compensation for loaning a security’s principal to the issuer.

liquidity-enhanced security The security’s structure includes a liquidity arrangement that requires an entity other than the issuer (such as a large financial institution) to provide funds to pay a tender under most circumstances. Liquidity enhancements are often used on variable-rate securities where the portfolio manager has an option to tender the securities for repayment within a specified time period (usually one day or one week) at any time prior to their final maturity.

maturity The date a debt security is scheduled to be “retired” and its principal amount repaid. The Maturity of an investment will generally reflect the security’s final maturity date unless the security’s structure includes a maturity-shortening provision such as an interest rate reset, demand feature or put feature (the “Effective Maturity Date”). For those securities with a maturity-shortening provision, including variable-rate demand securities, the Maturity is determined by using the Effective Maturity Date, as permitted by Rule 2a-7.

municipal securities Debt securities issued by a state, its counties, municipalities, authorities and other subdivisions, or the territories and possessions of the United States and the District of Columbia, including their subdivisions, agencies and instrumentalities and corporations. These securities may be issued to obtain money for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, public utilities, schools, streets, and water and sewer works.

net asset value per share (NAV) The value of one share of a mutual fund. NAV is calculated by taking the fund’s total assets, subtracting liabilities, and dividing by the number of shares outstanding. Certain money funds seek to maintain a steady NAV of $1.00.

outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.

repurchase agreement (also known as a “repo”) The sale of a security combined with a simultaneous agreement to repurchase it at a predetermined date and price.

restricted securities Securities that are subject to contractual restrictions on resale. These securities are often purchased in private placement transactions.

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

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Schwab Asset Management

With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Schwab Asset Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. The list below shows all currently available Schwab Funds^®.

Investors should carefully consider information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges and expenses before investing. Please call 1-877-824-5615 for a prospectus for any Schwab Fund. 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 Funds’ website at www.schwabassetmanagement.com/schwabfunds_prospectus, the SEC’s website at www.sec.gov, or by contacting Schwab Funds at 1-877-824-5615.

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.schwabassetmanagement.com/schwabfunds_prospectus or the SEC’s website at www.sec.gov.

Schwab Funds

Equity Funds

Schwab Core Equity Fund

Schwab Dividend Equity Fund

Schwab Large-Cap Growth Fund

Schwab Small-Cap Equity Fund

Schwab Health Care Fund

Schwab International Core Equity Fund

Schwab International Opportunities Fund

Schwab Select Large Cap Growth Fund

Schwab Fundamental US Large Company Index Fund

Schwab Fundamental US Small Company Index Fund

Schwab Fundamental International Large Company Index Fund

Schwab Fundamental International Small Company Index Fund

Schwab Fundamental Emerging Markets Large Company Index Fund

Schwab Fundamental Global Real Estate Index Fund

Schwab Global Real Estate Fund

Schwab S&P 500 Index Fund

Schwab 1000 Index^® Fund

Schwab Small-Cap Index Fund^®

Schwab Total Stock Market Index Fund^®

Schwab U.S. Large-Cap Growth Index Fund

Schwab U.S. Large-Cap Value Index Fund

Schwab U.S. Mid-Cap Index Fund

Schwab International Index Fund^®

Asset Allocation Funds

Schwab Balanced Fund

Schwab MarketTrack Portfolios^®

Schwab Target Funds

Schwab Target Index Funds

Schwab Monthly Income Funds

Bond Funds

Schwab Treasury Inflation Protected Securities Index Fund

Schwab U.S. Aggregate Bond Index Fund

Schwab Short-Term Bond Index Fund

Schwab Tax-Free Bond Fund¹

Schwab California Tax-Free Bond Fund¹

Schwab Opportunistic Municipal Bond Fund

Schwab Money Funds²

Schwab provides a broad choice of taxable and tax-exempt money market funds for both retail and institutional client types.

Investment Adviser

Charles Schwab Investment Management, Inc., dba Schwab Asset Management

211 Main Street, San Francisco, CA 94105

Funds

Schwab Funds

1-877-824-5615

State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.

You could lose money by investing in the Schwab Money Funds. All Schwab Money Funds with the exception of Schwab Variable Share Price Money Fund seek to preserve the value of your investment at $1.00 per share, but cannot guarantee they will do so. Because the share price of Schwab Variable Share Price Money Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. All Schwab Money Funds with the exception of Schwab Government Money Fund, Schwab Retirement Government Money Fund, Schwab U.S. Treasury Money Fund, Schwab Treasury Obligations Money Fund and Schwab Government Money Market Portfolio may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Schwab Money Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Schwab Money Funds’ sponsor has no legal obligation to provide financial support to the Funds, and you should not expect that the sponsor will provide financial support to the Funds at any time.

Table of Contents

Schwab Government Money Funds

Fund Management

Linda Klingman, Managing Director and Head of Money Market Strategies for Schwab Asset Management, leads the portfolio management teams for taxable and tax-exempt Schwab Money Funds, and has overall responsibility for all aspects of the management of the funds. Prior to joining Schwab in 1990, she was a senior money market trader with AIM Management, Inc. for five years. She has managed money market funds since 1988.

Lynn Paschen, Senior Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2011, Ms. Paschen held a number of positions at American Century Investments. She was most recently a portfolio manager and, from 2000 to 2003, worked as a fixed-income trader. She has managed money market funds since 2003.

Nicole Perret-Gentil, Portfolio Manager, is responsible for the day-to-day co-management of the funds. Prior to joining Schwab in 2016, Ms. Perret-Gentil worked at Freddie Mac for 15 years, most recently as a senior portfolio manager where she managed and executed trades for a fixed-income strategy. Prior to that role, she served as a portfolio manager performing fixed-income analysis, a senior research analyst for investor and dealer relations, a senior securities operations analyst in loan and securities operations, and a lead mortgage securities operations specialist. She also worked at Merrill Lynch for a year as a senior specialist in fixed-income global banking and investments.

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Schwab Government Money Fund

The Schwab Government Money Fund’s (the fund) goal is to seek the highest current income consistent with stability of capital and liquidity. To pursue its goal, the fund invests in U.S. government securities such as U.S. Treasury bills and notes, other obligations that are issued by the U.S. government, its agencies, or instrumentalities, repurchase agreements that are collateralized fully by cash and/or U.S. government securities, and obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies, or instrumentalities. The fund will invest at least 99.5% of its total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully by cash and/or U.S. government securities; under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. government securities including repurchase agreements that are collateralized fully by U.S. government securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Outside the United States, major central banks grappled with similar economic conditions. After holding its policy rate unchanged since March 2016, at 0.00%, the European Central Bank announced in June its intention to raise interest rates in July for the first time in 11 years. Also in June, the Bank of England raised its key official bank rate for the fifth consecutive time, to 1.25%, bringing borrowing costs to a 13-year high as the Bank of England wrestled with soaring inflation. In contrast, the Bank of Japan upheld its short-term interest rate target of -0.1%, unchanged since 2016, and vowed to defend its cap on bond yields with unlimited buying, as opposed to the monetary tightening being employed in many other countries around the globe.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

22 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Government Money Fund

Performance and Fund Facts as of June 30, 2022

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab Government Money Fund
	Sweep Shares	Investor Shares	Ultra Shares
Ticker Symbol	SWGXX	SNVXX	SGUXX
Minimum Initial Investment²	^*	None	$1,000,000
Seven-Day Yield (with waivers)³	0.99%	1.09%	1.24%
Seven-Day Yield (without waivers)³	0.98%	1.08%	1.23%
Seven-Day Effective Yield (with waivers)³	0.99%	1.09%	1.24%

You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

^*	Subject to the eligibility terms and conditions of your Schwab account agreement.
¹	Due to a special distribution of ordinary income, the fund’s stated yields temporarily increased in October and December 2021.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab U.S. Treasury Money Fund

The Schwab U.S. Treasury Money Fund’s (the fund) goal is to seek the highest current income that is consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government. The fund will invest at least 99.5% of its total assets in cash and/or government securities (including bills and notes); under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. Treasury securities (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Outside the United States, major central banks grappled with similar economic conditions. After holding its policy rate unchanged since March 2016, at 0.00%, the European Central Bank announced in June its intention to raise interest rates in July for the first time in 11 years. Also in June, the Bank of England raised its key official bank rate for the fifth consecutive time, to 1.25%, bringing borrowing costs to a 13-year high as the Bank of England wrestled with soaring inflation. In contrast, the Bank of Japan upheld its short-term interest rate target of -0.1%, unchanged since 2016, and vowed to defend its cap on bond yields with unlimited buying, as opposed to the monetary tightening being employed in many other countries around the globe.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments^3,4

Statistics

Weighted Average Maturity²

41 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The fund may elect to invest up to 20% of its net assets in (i) obligations that are issued by the U.S. government, its agencies or instrumentalities, including obligations that are not fully guaranteed by the U.S. Treasury and (ii) obligations that are issued by private issuers that are guaranteed as to principal or interest by the U.S. government, its agencies or instrumentalities. Please refer to the fund prospectus for further details on investment objectives, risks, charges, tax implications and expenses.
⁴	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab U.S. Treasury Money Fund

Performance and Fund Facts as of June 30, 2022

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab U.S. Treasury Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SNSXX	SUTXX
Minimum Initial Investment²	None	$1,000,000
Seven-Day Yield (with waivers)³	0.72%	0.87%
Seven-Day Yield (without waivers)³	0.71%	0.86%
Seven-Day Effective Yield (with waivers)³	0.72%	0.87%

¹	Due to a special distribution of ordinary income, the fund’s stated yields temporarily increased in October and December 2021.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Treasury Obligations Money Fund

The Schwab Treasury Obligations Money Fund’s (the fund) goal is to seek current income consistent with stability of capital and liquidity. To pursue its goal, the fund typically invests in securities backed by the full faith and credit of the U.S. government and repurchase agreements backed by such investments. The fund will invest at least 99.5% of its total assets in cash, government securities and/or repurchase agreements that are collateralized fully by cash and/or government securities; under normal circumstances, at least 80% of the fund’s net assets (including, for this purpose, any borrowings for investment purposes) will be invested solely in U.S. Treasury obligations or repurchase agreements backed by such obligations (excluding cash). For more information concerning the fund’s investment objective, strategy, and risks, please see the fund’s prospectus.

Outside the United States, major central banks grappled with similar economic conditions. After holding its policy rate unchanged since March 2016, at 0.00%, the European Central Bank announced in June its intention to raise interest rates in July for the first time in 11 years. Also in June, the Bank of England raised its key official bank rate for the fifth consecutive time, to 1.25%, bringing borrowing costs to a 13-year high as the Bank of England wrestled with soaring inflation. In contrast, the Bank of Japan upheld its short-term interest rate target of -0.1%, unchanged since 2016, and vowed to defend its cap on bond yields with unlimited buying, as opposed to the monetary tightening being employed in many other countries around the globe.

Portfolio Composition By Effective Maturity % of Investments¹

Portfolio Composition by Security Type % of Investments³

Statistics

Weighted Average Maturity²

15 Days

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

¹	Maturity shown is the date the security matures, the date the interest rate on those securities is reset, or the date those securities can be redeemed through demand.
²	Money funds must maintain a dollar-weighted average maturity of no longer than 60 days and cannot invest in any security whose effective maturity is longer than 397 days (approximately 13 months).
³	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.

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Schwab Treasury Obligations Money Fund

Performance and Fund Facts as of June 30, 2022

Seven-Day Average Yield Trend for Previous 12 Months¹

Seven-Day Yields

	Schwab Treasury Obligations Money Fund
	Investor Shares	Ultra Shares
Ticker Symbol	SNOXX	SCOXX
Minimum Initial Investment²	None	$1,000,000
Seven-Day Yield (with waivers)³	1.12%	1.27%
Seven-Day Yield (without waivers)³	1.12%	1.27%
Seven-Day Effective Yield (with waivers)³	1.13%	1.28%

¹	Due to a special distribution of ordinary income, the fund’s stated yields temporarily increased in October and December 2021.
²	Please see prospectus for further detail and eligibility requirements.
³	The Seven-Day Yield (with waivers) is the average income paid out over the previous seven days assuming interest income is not reinvested and it reflects the effect of any applicable waivers. Absent such waivers, the fund’s yield would have been lower. The Seven-Day Yield (without waivers) is the yield without the effect of any applicable waivers. The Seven-Day Effective Yield is the yield with waivers assuming that all interest income is reinvested in additional shares of the fund. For additional details, see financial note 4.

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Schwab Government Money Funds

Fund Expenses (Unaudited)

Examples for a $1,000 Investment

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 January 1, 2022 and held through June 30, 2022.

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 or share class’ 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 a 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.

	EXPENSE RATIO (ANNUALIZED)^1,2	BEGINNING ACCOUNT VALUE AT 1/1/22	ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 6/30/22	EXPENSES PAID DURING PERIOD 1/1/22-6/30/22³
Schwab Government Money Fund
Sweep Shares
Actual Return	0.26%	$1,000.00	$1,000.80	$1.29
Hypothetical 5% Return	0.26%	$1,000.00	$1,023.51	$1.30
Investor Shares
Actual Return	0.23%	$1,000.00	$1,001.00	$1.14
Hypothetical 5% Return	0.23%	$1,000.00	$1,023.65	$1.15
Ultra Shares
Actual Return	0.15%	$1,000.00	$1,001.40	$0.74
Hypothetical 5% Return	0.15%	$1,000.00	$1,024.05	$0.75
Schwab U.S. Treasury Money Fund
Investor Shares
Actual Return	0.21%	$1,000.00	$1,000.60	$1.04
Hypothetical 5% Return	0.21%	$1,000.00	$1,023.75	$1.05
Ultra Shares
Actual Return	0.14%	$1,000.00	$1,001.00	$0.69
Hypothetical 5% Return	0.14%	$1,000.00	$1,024.10	$0.70
Schwab Treasury Obligations Money Fund
Investor Shares
Actual Return	0.23%	$1,000.00	$1,001.00	$1.14
Hypothetical 5% Return	0.23%	$1,000.00	$1,023.65	$1.15
Ultra Shares
Actual Return	0.15%	$1,000.00	$1,001.40	$0.74
Hypothetical 5% Return	0.15%	$1,000.00	$1,024.05	$0.75


¹	Based on the most recent six-month expense ratio.
²	Expense ratio (annualized) reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
³	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.

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Schwab Government Money Fund

Financial Statements

FINANCIAL HIGHLIGHTS

Sweep Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)¹	0.00 ²	0.00 ²	0.00 ²	0.02	0.01	0.00 ²
Net realized and unrealized gains (losses)	0.00 ²	0.00 ²	0.00 ²	—	0.00 ²	0.00 ²
Total from investment operations	0.00 ²	0.00 ²	0.00 ²	0.02	0.01	0.00 ²
Less distributions:
Distributions from net investment income	(0.00) ²	(0.00) ^2,3	(0.00) ²	(0.02)	(0.01)	(0.00) ²
Distributions from net realized gains	—	(0.00) ²	(0.00) ²	—	(0.00) ²	(0.00) ²
Total distributions	(0.00) ²	(0.00) ²	(0.00) ²	(0.02)	(0.01)	(0.00) ²
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.08% ⁴	0.02% ³	0.23%	1.65%	1.23%	0.26%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.26% ^5,6	0.06% ⁶	0.30% ^6,7	0.59%	0.62%	0.63% ^6,8
Gross operating expenses	0.45% ⁵	0.45%	0.52%	0.59%	0.62%	0.68%
Net investment income ( loss)	0.17% ⁵	0.02%	0.18%	1.64%	1.12%	0.25%
Net assets, end of period (x 1,000,000)	$23,844	$24,159	$20,119	$12,450	$11,325	$25,324


*	Unaudited.
¹	Calculated based on the average shares outstanding during the period.
²	Per-share amount was less than $0.005.
³	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁴	Not annualized.
⁵	Annualized.
⁶	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁷	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.
⁸	Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

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Table of Contents

Schwab Government Money Fund

FINANCIAL HIGHLIGHTS (continued)

Investor Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17¹
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³	0.02	0.02	0.00 ³
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³	—	0.00 ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³	0.00 ³	0.02	0.02	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ^3,4	(0.00) ³	(0.02)	(0.02)	(0.00) ³
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	—	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³	(0.02)	(0.02)	(0.00) ³
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.10% ⁵	0.02% ⁴	0.30%	1.90%	1.51%	0.50%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.23% ^6,7	0.06% ⁷	0.27% ^7,8	0.35%	0.35%	0.40% ^7,9
Gross operating expenses	0.35% ⁶	0.35%	0.43%	0.47%	0.48%	0.53%
Net investment income (loss)	0.20% ⁶	0.02%	0.28%	1.84%	1.66%	0.51%
Net assets, end of period (x 1,000,000)	$6,692	$6,782	$11,980	$13,436	$7,871	$1,362


*	Unaudited.
¹	Effective October 3, 2017, the share class name of Purchased Shares was changed to Investor Shares.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁵	Not annualized.
⁶	Annualized.
⁷	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁸	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.
⁹	Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

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Table of Contents

Schwab Government Money Fund

FINANCIAL HIGHLIGHTS (continued)

Ultra Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	9/24/20 ¹– 12/31/20
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ^3,4	(0.00) ³
Distributions from net realized gains	—	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³
Net asset value at end of period	$1.00	$1.00	$1.00
Total return	0.14% ⁵	0.02% ⁴	0.00% ^5,6
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.15% ^7,8	0.06% ⁸	0.13% ^7,8
Gross operating expenses	0.20% ⁷	0.20%	0.20% ⁷
Net investment income (loss)	0.31% ⁷	0.03%	0.01% ⁷
Net assets, end of period (x 1,000,000)	$5,990	$4,726	$1,647


*	Unaudited.
¹	Commencement of operations.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁵	Not annualized.
⁶	Percentage was less than 0.005%.
⁷	Annualized.
⁸	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited)

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

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
U.S. GOVERNMENT AGENCY DEBT 11.5% OF NET ASSETS
FEDERAL FARM CREDIT BANKS FUNDING CORP
		0.07%		07/06/22	23,600,000	23,599,771
(SOFR + 0.04%)	(a)	1.55%	07/01/22	07/08/22	94,500,000	94,499,908
		0.07%		07/19/22	56,600,000	56,598,019
(SOFR + 0.09%)	(a)	1.60%	07/01/22	07/25/22	58,200,000	58,199,806
		1.85%		08/05/22	5,100,000	5,108,620
		0.07%		08/10/22	5,390,000	5,389,964
		0.09%		08/18/22	37,800,000	37,795,464
		0.11%		08/31/22	34,000,000	33,993,663
(EFFR - 0.02%)	(a)	1.56%	07/01/22	09/08/22	188,500,000	188,500,000
		1.70%		09/19/22	4,000,000	4,013,750
		0.99%		10/11/22	23,800,000	23,733,915
		1.01%		10/12/22	38,100,000	37,990,992
		1.03%		10/17/22	47,600,000	47,454,344
(SOFR + 0.06%)	(a)	1.57%	07/01/22	10/21/22	118,000,000	118,000,000
		0.15%		11/16/22	94,600,000	94,592,039
(SOFR + 0.06%)	(a)	1.57%	07/01/22	12/28/22	357,000,000	357,079,913
(3 mo. US TBILL + 0.02%)	(a)	1.78%	07/06/22	05/01/23	117,800,000	117,800,000
(3 mo. US TBILL + 0.03%)	(a)	1.78%	07/06/22	07/13/23	47,100,000	47,100,000
(EFFR - 0.01%)	(a)	1.57%	07/01/22	07/21/23	155,300,000	155,299,999
(SOFR + 0.03%)	(a)	1.54%	07/01/22	08/28/23	59,000,000	59,000,000
(SOFR + 0.06%)	(a)	1.57%	07/01/22	11/07/23	42,600,000	42,600,000
(SOFR + 0.04%)	(a)	1.55%	07/01/22	11/28/23	33,000,000	33,000,000
(EFFR + 0.03%)	(a)	1.61%	07/01/22	12/08/23	26,600,000	26,600,000
(SOFR + 0.12%)	(a)	1.63%	07/01/22	12/08/23	47,300,000	47,341,290
(SOFR + 0.06%)	(a)	1.57%	07/01/22	12/13/23	33,100,000	33,100,000

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
FEDERAL HOME LOAN BANKS
(SOFR + 0.01%)	(a)	1.52%	07/01/22	07/18/22	95,200,000	95,200,000
(SOFR + 0.01%)	(a)	1.52%	07/01/22	08/05/22	238,000,000	238,000,000
		1.68%		08/26/22	95,000,000	94,753,211
(SOFR + 0.01%)	(a)	1.52%	07/01/22	08/30/22	95,200,000	95,200,000
		1.90%		09/19/22	190,000,000	189,202,000
		1.90%		09/20/22	189,000,000	188,196,278
		0.21%		12/02/22	118,100,000	118,100,000
		2.17%		02/06/23	37,230,000	37,350,347
		2.15%		02/08/23	44,290,000	44,429,308
		1.25%		03/21/23	111,250,000	111,250,000
		1.02%		03/30/23	95,200,000	95,200,000
	(b)	1.13%		03/30/23	69,000,000	68,989,688
	(b)	1.28%		04/05/23	95,100,000	95,100,000
	(b)	1.60%		05/02/23	95,000,000	95,000,000
		2.00%		05/23/23	95,100,000	95,100,000
	(b)	1.90%		06/02/23	96,200,000	96,200,000
	(b)	2.75%		07/14/23	118,900,000	118,900,000
FEDERAL HOME LOAN MORTGAGE CORPORATION
(SOFR + 0.10%)	(a)	1.61%	07/01/22	08/19/22	230,900,000	230,900,000
(SOFR + 0.10%)	(a)	1.61%	07/01/22	09/09/22	131,700,000	131,700,000
	(b)	1.40%		04/21/23	95,100,000	95,100,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION
		1.38%		09/06/22	10,550,000	10,574,619
		0.25%		05/22/23	105,553,000	103,842,528
Total U.S. Government Agency Debt (Cost $4,196,679,436)						4,196,679,436

U.S. TREASURY DEBT 12.8% OF NET ASSETS
UNITED STATES TREASURY
		0.09%		07/14/22	168,300,000	168,294,530
		0.13%		07/31/22	116,000,000	116,004,787
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	07/31/22	233,400,000	233,399,656
		1.88%		07/31/22	123,000,000	123,182,281
		2.00%		07/31/22	140,000,000	140,221,847
		0.11%		08/11/22	107,200,000	107,187,181
		1.50%		08/15/22	450,749,800	451,542,573
		0.13%		08/31/22	346,500,000	346,527,320
		1.63%		08/31/22	261,900,000	262,548,445
		1.88%		08/31/22	105,400,000	105,716,592
		1.50%		09/15/22	382,700,000	383,827,148

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		0.13%		09/30/22	251,500,000	251,523,359
		1.75%		09/30/22	153,000,000	153,633,282
		1.88%		09/30/22	104,300,000	104,750,201
		0.13%		10/31/22	157,500,000	156,865,486
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	10/31/22	100,000,000	99,998,309
		1.63%		11/15/22	129,500,000	130,077,552
(3 mo. US TBILL + 0.05%)	(a)	1.81%	07/01/22	01/31/23	447,500,000	447,571,959
		2.00%		02/15/23	95,100,000	95,648,070
		0.13%		02/28/23	97,000,000	95,910,122
		2.63%		02/28/23	127,700,000	128,327,098
		0.13%		03/31/23	162,000,000	159,514,872
		2.50%		03/31/23	93,400,000	94,008,829
		0.13%		04/30/23	32,000,000	31,451,312
(3 mo. US TBILL + 0.03%)	(a)	1.79%	07/01/22	04/30/23	115,200,000	115,208,720
(3 mo. US TBILL + 0.03%)	(a)	1.79%	07/01/22	07/31/23	95,000,000	95,001,562
(3 mo. US TBILL + 0.04%)	(a)	1.79%	07/01/22	10/31/23	76,800,000	76,798,962
Total U.S. Treasury Debt (Cost $4,674,742,055)						4,674,742,055

VARIABLE RATE DEMAND NOTES 0.6% OF NET ASSETS
BRIDGE WF II PARKWAY CLUB LLC
TAXABLE M/F HOUSING RB SERIES 2021A (LOC: FEDERAL HOME LOAN BANKS)	(a)(c)	1.64%		07/07/22	56,900,000	56,900,000
FARR LIFE LLC
TAXABLE VARIABLE RATE DEMAND NOTES SERIES 2022 (LOC: FEDERAL HOME LOAN BANKS)	(a)(c)	1.63%		07/07/22	5,000,000	5,000,000
GINA RISTOW BELLING 2022
TAXABLE VARIABLE RATE DEMAND NOTES SERIES 2022 (LOC: FEDERAL HOME LOAN BANKS)	(a)(c)	1.63%		07/07/22	20,310,000	20,310,000
NEW DUBLIN SQUARE
TAXABLE M/F HOUSING RB (DUBLIN SQUARE) SERIES 2022 (LOC: FEDERAL HOME LOAN BANKS)	(a)(c)	1.64%		07/07/22	42,700,000	42,700,000
RIVERSIDE HOME LENDING
TAXABLE S/F RENTAL HOUSING RB SERIES 2021A (LOC: FEDERAL HOME LOAN BANKS)	(a)(c)	0.92%		07/07/22	77,300,000	77,300,000
Total Variable Rate Demand Notes (Cost $202,210,000)						202,210,000

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
REPURCHASE AGREEMENTS 74.8% OF NET ASSETS
U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENTS* 14.8%
BANCO SANTANDER SA
Issued 06/30/22, repurchase date 07/01/22		1.56%		07/01/22	31,001,343	31,000,000
(Collateralized by U.S. Government Agency Securities valued at $31,930,000, 1.50% - 5.50%, due 07/01/34 - 06/01/52)

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
BANK OF MONTREAL
Issued 06/16/22, repurchase date 07/28/22		1.56%		07/07/22	236,214,760	236,000,000
(Collateralized by U.S. Government Agency Securities valued at $243,520,988, 1.63% - 5.00%, due 07/01/24 - 05/20/72)
BARCLAYS BANK PLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	100,004,305	100,000,000
(Collateralized by U.S. Government Agency Securities valued at $105,004,521, 6.72% - 7.50%, due 01/27/31 - 07/25/39)
BOFA SECURITIES INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	2,000,086,111	2,000,000,000
(Collateralized by U.S. Government Agency Securities valued at $2,060,000,001, 1.50% - 5.00%, due 07/01/43 - 06/01/52)
DAIWA CAPITAL MARKETS AMERICA INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	210,009,042	210,000,000
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $216,671,592, 0.25% - 4.50%, due 01/31/23 - 06/01/52)
GOLDMAN SACHS & CO LLC
Issued 06/30/22, repurchase date 07/07/22		1.55%		07/07/22	455,137,132	455,000,000
(Collateralized by U.S. Government Agency Securities valued at $464,100,000, 2.00% - 5.50%, due 11/15/36 - 03/20/52)
JP MORGAN SECURITIES LLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	50,002,153	50,000,000
(Collateralized by U.S. Government Agency Securities valued at $51,500,000, 3.00% - 6.00%, due 11/01/27 - 06/20/51)
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	250,010,764	250,000,000
(Collateralized by U.S. Government Agency Securities valued at $257,500,000, 1.88% - 7.00%, due 07/15/27 - 07/15/62)
Issued 05/16/22, repurchase date 11/10/22	(a)	1.66%	07/01/22	10/03/22	477,059,933	474,000,000
(Collateralized by U.S. Government Agency Securities valued at $488,904,050, 1.00% - 9.87%, due 09/25/24 - 09/16/58) (SOFR + 0.15%)
Issued 06/01/22, repurchase date 12/02/22	(a)	1.66%	07/01/22	10/03/22	476,710,227	474,000,000
(Collateralized by U.S. Government Agency Securities valued at $488,701,032, 0.00% - 7.50%, due 12/15/28 - 06/16/63) (SOFR + 0.15%)
RBC DOMINION SECURITIES INC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	100,004,306	100,000,000
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $102,655,969, 0.13% - 5.25%, due 04/15/28 - 08/15/57)

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
ROYAL BANK OF CANADA
Issued 04/29/22, repurchase date 08/01/22		1.04%		07/07/22	959,909,613	958,000,000
(Collateralized by U.S. Treasury and U.S. Government Agency Securities valued at $989,419,645, 1.03% - 7.62%, due 02/15/24 - 01/01/60)
WELLS FARGO SECURITIES LLC
Issued 06/30/22, repurchase date 07/01/22		1.56%		07/01/22	61,002,643	61,000,000
(Collateralized by U.S. Government Agency Securities valued at $63,442,749, 1.52% - 4.32%, due 06/01/32 - 06/01/52)
						5,399,000,000
U.S. TREASURY REPURCHASE AGREEMENTS 60.0%
BARCLAYS BANK PLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	9,691,235	9,690,818
(Collateralized by U.S. Treasury Securities valued at $9,885,061, 0.38% - 2.00%, due 11/30/25 - 11/15/26)
BNP PARIBAS SA
Issued 05/05/22, repurchase date 07/05/22		0.97%		07/05/22	291,478,291	291,000,000
(Collateralized by U.S. Treasury Securities valued at $297,307,880, 0.00% - 3.88%, due 11/03/22 - 02/15/51)
Issued 05/11/22, repurchase date 09/12/22		1.36%		07/07/22	602,294,154	601,000,000
(Collateralized by U.S. Treasury Securities valued at $615,891,677, 0.00% - 7.25%, due 08/15/22 - 05/15/51)
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	20,985,903,521	20,985,000,000
(Collateralized by U.S. Treasury Securities valued at $20,985,903,586, 0.13% - 2.88%, due 11/15/22 - 05/15/31)
FICC - BANK OF NEW YORK
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	40,001,722	40,000,000
(Collateralized by U.S. Treasury Securities valued at $40,800,009, 0.38%, due 07/31/27)
						21,926,690,818
Total Repurchase Agreements (Cost $27,325,690,818)						27,325,690,818
Total Investments in Securities (Cost $36,399,322,309)						36,399,322,309

*	Collateralized via U.S. Government Agency Securities or less frequently by higher rated U.S. Treasury Securities.
(a)	Variable rate security; rate shown is effective rate at period end.
(b)	Step up security that pays an initial coupon rate for a set period and increased coupon rates at one or more preset intervals. Rate shown is as of period end.
(c)	VRDN is a municipal security which allows holders to sell their security through a put or tender feature, at par value plus accrued interest. The interest rate resets on a periodic basis, the majority of which are weekly but may be daily or monthly. Unless a reference rate and spread is shown parenthetically, the Remarketing Agent, generally a dealer, determines the interest rate for the security at each interest rate reset date. The rate is typically based on the SIFMA Municipal Swap Index.

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab Government Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	1/1/22-6/30/22		1/1/21-12/31/21
Net investment income		$33,776,807	$7,727,570
Net realized gains	+	47,057	117,866
Increase in net assets from operations		$33,823,864	$7,845,436
DISTRIBUTIONS TO SHAREHOLDERS
Sweep Shares		($19,979,518)	($5,121,566)
Investor Shares		(6,308,120)	(1,852,305)
Ultra Shares	+	(7,425,240)	(860,246)
Total distributions		($33,712,878)	($7,834,117)
TRANSACTIONS IN FUND SHARES*
Shares Sold
Sweep Shares		5,099,133,246	36,238,466,978
Investor Shares		4,087,615,985	5,161,189,251
Ultra Shares	+	4,643,966,616	7,375,013,859
Total shares sold		13,830,715,847	48,774,670,088
Shares Reinvested
Sweep Shares		10,340,549	5,049,524
Investor Shares		2,500,404	1,408,653
Ultra Shares	+	3,954,279	737,509
Total shares reinvested		16,795,232	7,195,686
Shares Redeemed
Sweep Shares		(5,424,615,006)	(32,203,488,522)
Investor Shares		(4,180,446,041)	(10,361,209,799)
Ultra Shares	+	(3,384,483,925)	(4,296,794,714)
Total shares redeemed		(12,989,544,972)	(46,861,493,035)
Net transactions in fund shares		857,966,107	1,920,372,739
NET ASSETS
Beginning of period		$35,667,328,506	$33,746,944,448
Total increase	+	858,077,093	1,920,384,058
End of period		$36,525,405,599	$35,667,328,506

^*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab U.S. Treasury Money Fund

Financial Statements

FINANCIAL HIGHLIGHTS

Investor Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/17/18 ¹– 12/31/18
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³	0.02	0.02
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³	0.00 ³	(0.01) ⁴
Total from investment operations	0.00 ³	0.00 ³	0.00 ³	0.02	0.01
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ^3,5	(0.00) ³	(0.02)	(0.01)
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³	(0.02)	(0.01)
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.06% ⁶	0.02% ⁵	0.27%	1.84%	1.40% ⁶
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.21% ^7,8	0.05% ⁸	0.23% ^8,9	0.35%	0.35% ⁷
Gross operating expenses	0.35% ⁷	0.35%	0.45%	0.49%	0.49% ⁷
Net investment income (loss)	0.11% ⁷	0.02%	0.15%	1.77%	1.64% ⁷
Net assets, end of period (x 1,000,000)	$5,830	$7,468	$11,297	$7,517	$3,414


*	Unaudited.
¹	Commencement of operations.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	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 fund transactions in relation to fluctuating market values.
⁵	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁶	Not annualized.
⁷	Annualized.
⁸	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁹	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab U.S. Treasury Money Fund

FINANCIAL HIGHLIGHTS (continued)

Ultra Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	9/24/20 ¹– 12/31/20
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ^3,4	(0.00) ³
Distributions from net realized gains	—	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³
Net asset value at end of period	$1.00	$1.00	$1.00
Total return	0.10% ⁵	0.02% ⁴	0.00% ^5,6
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.14% ^7,8	0.05% ⁸	0.12% ^7,8
Gross operating expenses	0.20% ⁷	0.20%	0.21% ⁷
Net investment income (loss)	0.18% ⁷	0.02%	0.01% ⁷
Net assets, end of period (x 1,000,000)	$3,177	$3,850	$2,260


*	Unaudited.
¹	Commencement of operations.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	These amounts include a non-recurring special distribution. The effect on the distributions from net investment income was less than $0.005 and the effect on the total return was 0.01%.
⁵	Not annualized.
⁶	Percentage was less than 0.005%.
⁷	Annualized.
⁸	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab U.S. Treasury Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited)

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

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
U.S. TREASURY DEBT 100.1% OF NET ASSETS
UNITED STATES TREASURY
		0.69%		07/05/22	325,000,000	324,975,181
		0.71%		07/05/22	225,870,000	225,852,181
		0.72%		07/05/22	200,000,000	199,984,000
		0.75%		07/12/22	250,000,000	249,942,670
		0.77%		07/12/22	100,000,000	99,976,625
		1.00%		07/12/22	75,000,000	74,977,129
		1.04%		07/12/22	25,000,000	24,992,075
		0.09%		07/14/22	57,000,000	56,998,147
		1.08%		07/14/22	2,000	1,999
		0.87%		07/19/22	100,000,000	99,956,450
		0.88%		07/19/22	250,000,000	249,890,625
		0.90%		07/19/22	100,000,000	99,955,000
		1.12%		07/19/22	76,000,000	75,957,440
		1.13%		07/19/22	200,000,000	199,887,000
		1.14%		07/19/22	550,000,000	549,686,375
		1.15%		07/19/22	250,000,000	249,856,562
		0.37%		07/21/22	350,000,000	349,927,472
		0.90%		07/26/22	750,000,000	749,530,469
		0.93%		07/26/22	100,000,000	99,935,764
		1.02%		07/26/22	150,000,000	149,894,167
		1.05%		07/26/22	100,000,000	99,927,431
		1.06%		07/26/22	200,000,000	199,853,472
		1.10%		07/26/22	100,000,000	99,923,889
		1.12%		07/26/22	100,000,000	99,922,500
		0.13%		07/31/22	47,500,000	47,450,083
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	07/31/22	43,000,000	43,000,895
		1.88%		07/31/22	158,600,000	158,835,441
		2.00%		07/31/22	50,000,000	50,079,229
		1.03%		08/02/22	260,000,000	259,762,066

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Schwab Government Money Funds | Semiannual Report

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Table of Contents

Schwab U.S. Treasury Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		0.91%		08/09/22	30,000,000	29,970,393
		1.23%		08/09/22	44,600,000	44,540,571
		1.24%		08/09/22	12,951,000	12,933,652
		0.11%		08/11/22	36,300,000	36,295,659
		0.92%		08/11/22	150,000,000	149,843,944
		1.50%		08/15/22	62,700,000	62,810,458
		1.63%		08/15/22	88,400,000	88,565,827
		1.45%		08/16/22	200,000,000	199,629,061
		1.51%		08/16/22	350,000,000	349,326,739
		1.04%		08/18/22	100,000,000	99,861,200
		1.45%		08/23/22	100,000,000	99,786,381
		0.13%		08/31/22	90,000,000	90,007,350
		1.63%		08/31/22	34,000,000	34,087,912
		1.88%		08/31/22	100,000,000	100,300,372
		1.50%		09/15/22	30,000,000	30,088,562
		1.53%		09/15/22	67,935,000	67,717,004
		1.64%		09/15/22	80,000,000	79,724,711
		1.76%		09/15/22	234,000,000	233,132,783
		1.75%		09/29/22	250,000,000	248,909,375
		0.13%		09/30/22	30,000,000	30,002,901
		1.88%		09/30/22	15,000,000	15,064,746
		1.51%		10/11/22	45,000,000	44,809,005
		1.52%		10/11/22	175,000,000	174,251,292
		1.38%		10/15/22	75,000,000	75,007,222
		2.08%		10/18/22	27,000,000	26,831,268
		0.13%		10/31/22	50,400,000	50,196,956
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	10/31/22	283,500,000	283,498,722
		2.00%		10/31/22	30,000,000	30,103,904
		1.63%		11/15/22	20,000,000	20,089,197
		2.51%		12/29/22	150,000,000	148,133,437
(3 mo. US TBILL + 0.05%)	(a)	1.81%	07/01/22	01/31/23	115,400,000	115,416,431
		2.38%		01/31/23	50,000,000	49,929,757
		2.00%		02/15/23	29,700,000	29,871,164
		0.13%		02/28/23	27,000,000	26,696,632
		1.50%		02/28/23	45,600,000	45,600,000
		2.63%		02/28/23	38,600,000	38,789,554
		0.13%		03/31/23	42,000,000	41,355,781
		2.50%		03/31/23	31,600,000	31,805,985
		0.13%		04/30/23	9,000,000	8,845,681
(3 mo. US TBILL + 0.03%)	(a)	1.79%	07/01/22	07/31/23	159,000,000	159,002,614
(3 mo. US TBILL + 0.04%)	(a)	1.79%	07/01/22	10/31/23	325,000,000	325,033,101
Total U.S. Treasury Debt (Cost $9,018,799,641)						9,018,799,641
Total Investments in Securities (Cost $9,018,799,641)						9,018,799,641

(a)	Variable rate security; rate shown is effective rate at period end.

US TBILL —

The reference rate is the weekly auction stop for the U.S. Treasury Bill.

At June 30, 2022, all of the fund’s investment securities were classified as Level 2. The breakdown of the fund’s investments into

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Table of Contents

Schwab U.S. Treasury Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	1/1/22-6/30/22		1/1/21-12/31/21
Net investment income		$6,973,121	$2,442,165
Net realized gains	+	18,686	36,463
Increase in net assets from operations		$6,991,807	$2,478,628
DISTRIBUTIONS TO SHAREHOLDERS
Investor Shares		($3,819,866)	($1,801,826)
Ultra Shares	+	(3,153,231)	(662,132)
Total distributions		($6,973,097)	($2,463,958)
TRANSACTIONS IN FUND SHARES*
Shares Sold
Investor Shares		3,532,012,105	3,352,593,664
Ultra Shares	+	3,120,738,181	7,366,011,332
Total shares sold		6,652,750,286	10,718,604,996
Shares Reinvested
Investor Shares		1,478,445	1,270,465
Ultra Shares	+	1,568,241	471,471
Total shares reinvested		3,046,686	1,741,936
Shares Redeemed
Investor Shares		(5,171,599,055)	(7,183,136,807)
Ultra Shares	+	(3,794,578,572)	(5,776,830,785)
Total shares redeemed		(8,966,177,627)	(12,959,967,592)
Net transactions in fund shares		(2,310,380,655)	(2,239,620,660)
NET ASSETS
Beginning of period		$11,317,690,025	$13,557,296,015
Total decrease	+	(2,310,361,945)	(2,239,605,990)
End of period		$9,007,328,080	$11,317,690,025

^*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

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Table of Contents

Schwab Treasury Obligations Money Fund

Financial Statements

FINANCIAL HIGHLIGHTS

Investor Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	1/1/20– 12/31/20	1/1/19– 12/31/19	1/1/18– 12/31/18	1/1/17– 12/31/17¹
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³	0.02	0.02	0.01
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³	0.00 ³	(0.01) ⁴	0.00 ³
Total from investment operations	0.00 ³	0.00 ³	0.00 ³	0.02	0.01	0.01
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³	(0.00) ³	(0.02)	(0.01)	(0.01)
Distributions from net realized gains	—	(0.00) ³	(0.00) ³	(0.00) ³	—	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³	(0.02)	(0.01)	(0.01)
Net asset value at end of period	$1.00	$1.00	$1.00	$1.00	$1.00	$1.00
Total return	0.10% ⁵	0.01%	0.27%	1.89%	1.51%	0.58%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.23% ^6,7	0.06% ⁷	0.30% ^7,8	0.35%	0.35%	0.33% ^7,9
Gross operating expenses	0.35% ⁶	0.35%	0.46%	0.48%	0.49%	0.54%
Net investment income (loss)	0.20% ⁶	0.01%	0.27%	1.86%	1.57%	0.65%
Net assets, end of period (x 1,000,000)	$6,300	$5,632	$7,573	$10,820	$7,545	$3,125


*	Unaudited.
¹	Effective October 3, 2017, the share class name of Value Advantage Shares was changed to Investor Shares.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	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 fund transactions in relation to fluctuating market values.
⁵	Not annualized.
⁶	Annualized.
⁷	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)
⁸	Effective September 24, 2020, the contractual expense limitation changed. The ratio presented for period ended December 31, 2020 is a blended ratio.
⁹	Effective October 3, 2017, the contractual expense limitation changed. The ratio presented for period ended December 31, 2017 is a blended ratio.

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Schwab Treasury Obligations Money Fund

FINANCIAL HIGHLIGHTS (continued)

Ultra Shares	1/1/22– 6/30/22*	1/1/21– 12/31/21	9/24/20 ¹– 12/31/20
Per-Share Data
Net asset value at beginning of period	$1.00	$1.00	$1.00
Income (loss) from investment operations:
Net investment income (loss)²	0.00 ³	0.00 ³	0.00 ³
Net realized and unrealized gains (losses)	0.00 ³	0.00 ³	0.00 ³
Total from investment operations	0.00 ³	0.00 ³	0.00 ³
Less distributions:
Distributions from net investment income	(0.00) ³	(0.00) ³	(0.00) ³
Distributions from net realized gains	—	(0.00) ³	(0.00) ³
Total distributions	(0.00) ³	(0.00) ³	(0.00) ³
Net asset value at end of period	$1.00	$1.00	$1.00
Total return	0.14% ⁴	0.01%	0.00% ^4,5
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses	0.15% ^6,7	0.06% ⁷	0.16% ^6,7
Gross operating expenses	0.20% ⁶	0.20%	0.21% ⁶
Net investment income (loss)	0.32% ⁶	0.01%	0.01% ⁶
Net assets, end of period (x 1,000,000)	$4,609	$2,244	$1,754


*	Unaudited.
¹	Commencement of operations.
²	Calculated based on the average shares outstanding during the period.
³	Per-share amount was less than $0.005.
⁴	Not annualized.
⁵	Percentage was less than 0.005%.
⁶	Annualized.
⁷	Reflects the effect of a voluntary yield waiver in excess of the contractual expense limitation. (See financial note 4)

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Table of Contents

Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited)

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

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
U.S. TREASURY DEBT 17.4% OF NET ASSETS
UNITED STATES TREASURY
		0.09%		07/14/22	39,800,000	39,798,706
		0.13%		07/31/22	29,200,000	29,201,205
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	07/31/22	182,500,000	182,500,364
		1.88%		07/31/22	41,400,000	41,461,346
		0.91%		08/09/22	20,000,000	19,980,262
		0.11%		08/11/22	25,300,000	25,296,975
		1.50%		08/15/22	110,700,000	110,894,684
		1.63%		08/15/22	61,600,000	61,715,554
		0.13%		08/31/22	94,000,000	94,007,432
		1.63%		08/31/22	59,700,000	59,847,788
		1.88%		08/31/22	26,000,000	26,078,097
		1.50%		09/15/22	113,700,000	114,035,010
		1.76%		09/15/22	116,000,000	115,570,098
		0.13%		09/30/22	55,900,000	55,905,168

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Table of Contents

Schwab Treasury Obligations Money Fund

Portfolio Holdings as of June 30, 2022 (Unaudited) (continued)

Issuer	Footnotes	Rate	Effective Maturity	Maturity Date	Face Amount ($)	Value ($)
		1.75%		09/30/22	38,000,000	38,157,286
		1.88%		09/30/22	24,600,000	24,706,184
		1.51%		10/11/22	30,000,000	29,872,670
		1.52%		10/11/22	25,000,000	24,893,042
		2.08%		10/18/22	23,000,000	22,856,265
		0.13%		10/31/22	34,100,000	33,962,623
(3 mo. US TBILL + 0.06%)	(a)	1.81%	07/01/22	10/31/22	91,000,000	90,999,805
		1.63%		11/15/22	24,900,000	25,011,051
(3 mo. US TBILL + 0.05%)	(a)	1.81%	07/01/22	01/31/23	54,900,000	54,905,998
		2.00%		02/15/23	20,500,000	20,618,143
		0.13%		02/28/23	21,000,000	20,764,047
		1.50%		02/28/23	29,400,000	29,400,000
		2.63%		02/28/23	27,000,000	27,132,589
		0.13%		03/31/23	38,000,000	37,416,947
		2.50%		03/31/23	20,400,000	20,532,978
		0.13%		04/30/23	107,000,000	105,166,305
(3 mo. US TBILL + 0.03%)	(a)	1.79%	07/01/22	04/30/23	28,000,000	28,002,119
(3 mo. US TBILL + 0.03%)	(a)	1.79%	07/01/22	07/31/23	216,000,000	216,003,140
(3 mo. US TBILL + 0.04%)	(a)	1.79%	07/01/22	10/31/23	68,700,000	68,709,206
Total U.S. Treasury Debt (Cost $1,895,403,087)						1,895,403,087

ISSUER	FOOTNOTES	RATE	EFFECTIVE MATURITY	MATURITY DATE	MATURITY AMOUNT ($)	VALUE ($)
REPURCHASE AGREEMENTS 72.8% OF NET ASSETS
U.S. TREASURY REPURCHASE AGREEMENTS 72.8%
BARCLAYS BANK PLC
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	5,417,967	5,417,734
(Collateralized by U.S. Treasury Securities valued at $5,526,327, 2.00%, due 11/15/26)
BNP PARIBAS SA
Issued 05/05/22, repurchase date 07/05/22		0.97%		07/05/22	64,105,191	64,000,000
(Collateralized by U.S. Treasury Securities valued at $65,387,309, 0.38% - 7.25%, due 08/15/22 - 05/15/47)
Issued 05/11/22, repurchase date 09/12/22		1.36%		07/07/22	417,897,940	417,000,000
(Collateralized by U.S. Treasury Securities valued at $427,332,486, 0.13% - 7.25%, due 08/15/22 - 05/15/51)
DEUTSCHE BANK AG (NEW YORK BRANCH)
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	50,002,153	50,000,000
(Collateralized by U.S. Treasury Securities valued at $51,002,218, 0.13% - 2.63%, due 07/15/22 - 02/15/52)
FEDERAL RESERVE BANK OF NEW YORK
Issued 06/30/22, repurchase date 07/01/22		1.55%		07/01/22	6,410,275,986	6,410,000,000
(Collateralized by U.S. Treasury Securities valued at $6,410,276,066, 0.13% - 2.50%, due 11/15/22 - 05/15/31)

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Table of Contents

Schwab Treasury Obligations Money Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	1/1/22-6/30/22		1/1/21-12/31/21
Net investment income		$9,272,705	$1,020,536
Net realized gains	+	10,442	141,307
Increase in net assets from operations		$9,283,147	$1,161,843
DISTRIBUTIONS TO SHAREHOLDERS
Investor Shares		($5,335,626)	($830,558)
Ultra Shares	+	(3,937,036)	(312,394)
Total distributions		($9,272,662)	($1,142,952)
TRANSACTIONS IN FUND SHARES*
Shares Sold
Investor Shares		4,279,627,309	4,104,127,424
Ultra Shares	+	4,832,864,570	5,204,907,250
Total shares sold		9,112,491,879	9,309,034,674
Shares Reinvested
Investor Shares		1,991,969	612,767
Ultra Shares	+	1,445,454	247,243
Total shares reinvested		3,437,423	860,010
Shares Redeemed
Investor Shares		(3,612,957,933)	(6,045,832,432)
Ultra Shares	+	(2,469,147,623)	(4,714,777,107)
Total shares redeemed		(6,082,105,556)	(10,760,609,539)
Net transactions in fund shares		3,033,823,746	(1,450,714,855)
NET ASSETS
Beginning of period		$7,875,740,845	$9,326,436,809
Total increase (decrease)	+	3,033,834,231	(1,450,695,964)
End of period		$10,909,575,076	$7,875,740,845

^*	Transactions took place at $1.00 per share; figures for share quantities are the same as for dollars.

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Table of Contents

Schwab Government Money Funds

Financial Notes, unaudited

1. Business Structure of the Funds:

Each of the funds in this report is a series of The Charles Schwab Family of Funds (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business 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:

THE CHARLES SCHWAB FAMILY OF FUNDS (ORGANIZED OCTOBER 20, 1989)
Schwab Government Money Fund	Schwab Retirement Government Money Fund
Schwab U.S. Treasury Money Fund	Schwab Municipal Money Fund
Schwab Treasury Obligations Money Fund	Schwab AMT Tax-Free Money Fund
Schwab Value Advantage Money Fund^®	Schwab California Municipal Money Fund
Schwab Variable Share Price Money Fund	Schwab New York Municipal Money Fund

Schwab Government Money Fund offers three share classes: Sweep Shares, Investor Shares and Ultra Shares. Schwab U.S. Treasury Money Fund and Schwab Treasury Obligations Money Fund, each offer two share classes, Investor Shares and Ultra Shares. Shares of each class represent interest in the same portfolio, but each class has different expenses and investment minimums.

Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds’ Board of Trustees (the Board) may authorize the issuance of as many shares as necessary.

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 their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

(a) Security Valuation:

Under procedures approved by the Board, the investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. Among other things, these procedures allow the funds to utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.

Securities in the funds are valued at amortized cost (which approximates fair value) as permitted in accordance with Rule 2a-7 of the 1940 Act. In the event that security valuations do not approximate fair value, securities may be fair valued as determined in accordance with procedures adopted by the Board. The Pricing Committee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Pricing Committee may employ techniques such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. The Pricing Committee regularly reviews these inputs and assumptions to calibrate the valuations. Due to the subjective and variable nature of fair value pricing, there can be no assurance that a fund could obtain the fair value assigned to the security upon the sale of such security. The Board convenes on a regular basis to review fair value determinations made by the funds pursuant to the valuation procedures.

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 significant 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 inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. 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.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

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

• 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.

As disclosed in the Portfolio Holdings, as of June 30, 2022, all of the funds’ investments were classified as Level 2.

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

Repurchase Agreements: (Schwab U.S. Treasury Money Fund may not invest in repurchase agreements) In a repurchase agreement, a fund buys a security from another party (the counterparty), usually a financial institution, with the agreement that it be sold back in the future. Repurchase agreements subject a fund to counterparty risk, meaning that the fund could lose money if the other party fails to perform under the terms of the agreement. The funds mitigate this risk by ensuring that the funds’ repurchase agreements are collateralized by cash and/or U.S. government securities. All collateral is held by the funds’ custodian (or, with multi-party agreements, the agent’s bank) and is monitored daily to ensure that its fair value is at least equal to the maturity amount under the agreement. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed or limited and the value of the collateral may decline. Investments in repurchase agreements are also based on a review of the credit quality of the repurchase agreement counterparty.

As of June 30, 2022, the following funds had investments in repurchase agreements with a gross value as disclosed in the Portfolio Holdings and the Statement of Assets and Liabilities:

Schwab Government Money Fund	$27,325,690,818
Schwab Treasury Obligations Money Fund	7,946,417,734

The value of the related collateral disclosed in the Portfolio Holdings exceeded the value of the repurchase agreements at period end.

Delayed-Delivery Transactions: The funds may buy securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security. The funds will assume the rights and risks of ownership at the time of purchase, including the risk of price and yield fluctuations. Typically, no interest will accrue to a fund until the security is delivered. The funds will earmark or segregate appropriate liquid assets to cover their delayed-delivery purchase obligations, if any.

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

2. Significant Accounting Policies (continued):

(d) Investment Income:

Interest income is recorded as it accrues. If a fund buys a debt security at a discount (less than face value) or a premium (more than face value), it amortizes premiums and accretes discounts from the purchase settlement date up to maturity. The fund then increases (in the case of discounts) or reduces (in the case of premiums) the income it records from the security. Certain securities may be callable (meaning that the issuer has the option to pay it off before its maturity date). The fund amortizes the premium and accretes the discount on each callable security to the security’s maturity date, except when the purchase price is higher than the call price at the security’s call date (in which case the premium is amortized to the call date).

(e) Expenses:

Expenses that are specific to a fund are charged directly to the fund. Expenses that are common to more than one fund in the trusts generally are allocated among those funds in proportion to their average daily net assets.

For funds offering multiple share classes, the net investment income, other than class specific expenses, and the realized and unrealized gains or losses, are allocated daily to each class in proportion to their average daily net assets.

(f) Distributions to Shareholders:

The funds declare distributions from net investment income, if any, every day they are open for business. These distributions, which are substantially equal to a fund’s net investment income for that day, are paid out to shareholders once a month. The funds make distributions from net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.

(g) Accounting Estimates:

(h) Federal Income Taxes:

The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized 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 attributable to these arrangements to be remote.

(j) Recent Accounting Standards:

3. Risk Factors:

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Schwab Government Money Funds

Financial Notes, unaudited (continued)

3. Risk Factors (continued):

low or negative interest rates, travel restrictions or quarantines; and significantly adversely impact the economy. Governmental and quasi-governmental authorities and regulators throughout the world have in the past often responded to serious economic disruptions with a variety of significant fiscal and monetary policy changes which could have an unexpected impact on financial markets and a fund’s investments. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.

Investment Risk. You could lose money by investing in the funds. Although each fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The funds’ sponsors have no legal obligation to provide financial support to the funds, and you should not expect that the sponsors will provide financial support to the funds at any time.

Interest Rate Risk. Interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, a fund’s yield will change over time. During periods when interest rates are low or there are negative interest rates, a fund’s yield (and total return) also could be low or even negative. In addition, a fund may be unable to pay expenses out of fund assets or maintain a stable $1.00 share price. Also, a change in a central bank’s monetary policy or economic conditions may result in a change in interest rates, which could have sudden and unpredictable effects on the markets. A sudden or unpredictable rise or decline in interest rates may cause volatility. Volatility in the market may decrease liquidity in the money market securities markets, making it more difficult for a fund to sell its money market investments at a time when the investment adviser might wish to sell such investments. Decreased market liquidity also may make it more difficult to value some or all of a fund’s money market securities holdings.

Stable Net Asset Value Risk. If a fund or another money market fund fails to maintain a stable net asset value (or such perception exists in the market place), the fund could experience increased redemptions, which may adversely impact the fund’s share price. Each fund is permitted, among other things, to reduce or withhold any income and/or gains generated from its portfolio to maintain a stable $1.00 share price.

Repurchase Agreements Risk.(Applies only to Schwab Government Money Fund and Schwab Treasury Obligations Money Fund) When a fund enters into a repurchase agreement, the fund is exposed to the risk that the other party (i.e., the counterparty) will not fulfill its contractual obligation. In a repurchase agreement, there exists the risk that, when a fund buys a security from a counterparty that agrees to repurchase the security at an agreed upon price (usually higher) and time, the counterparty will not repurchase the security.

Credit Risk. A decline in the credit quality of an issuer, guarantor or liquidity provider of a portfolio investment or a counterparty could cause the fund to lose money or underperform. The fund could lose money if, due to a decline in credit quality, the issuer, guarantor or liquidity provider of a portfolio investment or a counterparty fails to make, or is perceived as being unable or unwilling to make, timely principal or interest payments or otherwise honor its obligations. Even though a fund’s investments in repurchase agreements are collateralized at all times, there is some risk to the fund if the other party should default on its obligations and the fund is delayed or prevented from recovering or disposing of the collateral. The credit quality of a fund’s portfolio holdings can change rapidly in certain market environments and any downgrade or default on the part of a single portfolio investment could cause a fund’s share price or yield to fall.

Certain U.S. government securities that the funds invest in are not backed by the full faith and credit of the U.S. government, which means they are neither issued nor guaranteed by the U.S. Treasury. Although maintained in conservatorship by the Federal Housing Finance Agency (FHFA) since September 2008, the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) maintain only lines of credit with the U.S. Treasury. The Federal Home Loan Banks maintain limited access to credit lines from the U.S. Treasury. Other securities, such as obligations issued by the Federal Farm Credit Banks Funding Corporation, are supported solely by the credit of the issuer. There can be no assurance that the U.S. government will provide financial support to securities of its agencies and instrumentalities if it is not obligated to do so under law. Also, any government guarantees on securities a fund owns do not extend to the shares of the fund itself.

Management Risk. Any actively managed mutual fund is subject to the risk that its investment adviser will select investments or allocate assets in a manner that could cause a fund to underperform or otherwise not meet its investment objective. A fund’s investment adviser applies its own investment techniques and risk analyses in making investment decisions for the fund, but there can be no guarantee that they will produce the desired results. The investment adviser’s maturity decisions will also affect a fund’s yield, and potentially could affect its share price. To the extent that the investment adviser anticipates interest rate trends imprecisely, a fund’s yield at times could lag the yields of other money market funds.

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Financial Notes, unaudited (continued)

3. Risk Factors (continued):

Redemption Risk. A fund may experience periods of heavy redemptions that could cause the fund to liquidate its assets at inopportune times or at a loss or depressed value, particularly during periods of declining or illiquid markets. Redemptions by a few large investors in a fund may have a significant adverse effect on the fund’s ability to maintain a stable $1.00 share price. In the event any money market fund fails to maintain a stable net asset value, other money market funds, including the funds, could face a market-wide risk of increased redemption pressures, potentially jeopardizing the stability of their $1.00 share prices.

Money Market Fund Risk. The funds are not designed to offer capital appreciation. In exchange for their emphasis on stability and liquidity, money market investments may offer lower long-term performance than stock or bond investments.

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:

Investment Adviser

Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to an Investment Advisory and Administration Agreement between the investment adviser and the trust.

For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.19% of each fund’s average daily net assets.

Shareholder Servicing

The Board has adopted a Shareholder Servicing and Sweep Administration Plan (the Plan) on behalf of the funds. The Plan enables each fund to bear expenses relating to the provision by financial intermediaries, including Charles Schwab & Co., Inc. (Schwab), a broker-dealer affiliate of the investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The Plan also enables Sweep Shares of the Schwab Government Money Fund to pay Schwab for certain sweep administration services, such as processing of automatic purchases and redemptions, it provides to fund shareholders invested in such funds based on the amounts set forth below.

Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to the amount set forth in the table below. The shareholder servicing fee paid to a particular service provider is made pursuant to its written agreement with Schwab, as distributor of the funds (or, in the case of payments made to Schwab acting as a service provider, pursuant to Schwab’s written agreement with the funds), and the funds will pay no more than the amounts listed in the table below, calculated based on the average annual daily net asset value of the fund shares owned by shareholders holding shares through such service providers. The sweep administration fee and shareholder servicing fee paid to Schwab are based on the average daily net asset value of a fund’s shares owned by shareholders holding shares through Schwab.

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

	SHAREHOLDER SERVICING FEE	SWEEP ADMINISTRATION FEE
Schwab Government Money Fund
Sweep Shares	0.15%	0.10%
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a
Schwab U.S. Treasury Money Fund
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a
Schwab Treasury Obligations Money Fund
Investor Shares	0.15%	n/a
Ultra Shares	n/a	n/a

Contractual Expense Limitation

The investment adviser and its affiliates have made an additional agreement with each fund, for so long as the investment adviser serves as the investment adviser to the funds, which may only be amended or terminated with the approval of the Board, to limit the total annual fund operating expenses charged, excluding interest, taxes, and certain non-routine expenses (expense limitation), as follows:


Schwab Government Money Fund
Sweep Shares	0.44%
Investor Shares	0.34%
Ultra Shares	0.19%
Schwab U.S. Treasury Money Fund
Investor Shares	0.34%
Ultra Shares	0.19%
Schwab Treasury Obligations Money Fund
Investor Shares	0.34%
Ultra Shares	0.19%

During the period ended June 30, 2022, the funds waived the following amounts, of which a portion was waived in accordance with the contractual expense limitation agreement, and a portion was waived voluntarily.

	CONTRACTUAL EXPENSE LIMITATION WAIVED AMOUNT	VOLUNTARY YIELD WAIVER/ REIMBURSEMENT AMOUNT	TOTAL WAIVED AMOUNT
Schwab Government Money Fund	$1,193,150	$25,451,871	$26,645,021
Schwab U.S. Treasury Money Fund	440,586	5,252,990	5,693,576
Schwab Treasury Obligations Money Fund	308,682	3,428,549	3,737,231

Voluntary Yield Waiver/Reimbursement

The investment adviser and its affiliates may waive and/or reimburse expenses to the extent necessary to maintain a positive net yield for each class of a fund.

Interfund Transactions

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Financial Notes, unaudited (continued)

4. Affiliates and Affiliated Transactions (continued):

practice is limited to funds that share the same investment adviser, trustees and/or officers. For the period ended June 30, 2022, each fund’s purchases and sales of securities with other funds in the Fund Complex as well as any realized gains (losses) were as follows:

	PURCHASE COST	SALE PROCEEDS	REALIZED GAINS (LOSSES)
Schwab Government Money Fund	$—	$523,126,211	$0
Schwab U.S. Treasury Money Fund	—	—	—
Schwab Treasury Obligations Money Fund	—	—	—

Interfund Borrowing and Lending

Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission (SEC), the funds may enter into interfund borrowing and lending transactions with other funds in the Fund Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board. The funds had no interfund borrowing or lending activity during the period.

5. Board of Trustees:

The Board may include people who are officers and/or directors of the investment adviser or its affiliates. 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, but it did pay non-interested persons (independent trustees), as noted on each fund’s Statement of Operations. For information regarding the trustees, please refer to the Trustees and Officers table at the end of this report.

6. Borrowing from Banks:

During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $850 million line of credit (the Syndicated Credit Facility), maturing on September 29, 2022. Under the terms of the Syndicated Credit Facility, in addition to the interest charged on any borrowings by a fund, each fund paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other funds in the Fund Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility), with State Street Bank and Trust Company, maturing on September 29, 2022. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings from either line of credit during the period.

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is disclosed on each fund’s Statement of Operations, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

7. Federal Income Taxes:

As of June 30, 2022, the tax basis cost of the funds’ investments was as follows:

	TAX COST
Schwab Government Money Fund	$36,399,322,309
Schwab U.S. Treasury Money Fund	9,018,799,641
Schwab Treasury Obligations Money Fund	9,841,820,821

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Financial Notes, unaudited (continued)

7. Federal Income Taxes (continued):

	PRIOR FISCAL YEAR END DISTRIBUTIONS
	ORDINARY INCOME	LONG-TERM CAPITAL GAINS
Schwab Government Money Fund	$7,827,838	$6,279
Schwab U.S. Treasury Money Fund	2,442,165	21,793
Schwab Treasury Obligations Money Fund	1,040,488	102,464

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

As of December 31, 2021, 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 fiscal year ended December 31, 2021, the funds did not incur any interest or penalties.

8. 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.

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Investment Advisory Agreement Approval

The Board of Trustees (the Board or the Trustees, as appropriate) calls and holds one or more meetings each year that are dedicated, in whole or in part, to considering whether to renew the investment advisory and administration agreement (the Agreement) between The Charles Schwab Family of Funds (the Trust) and Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser) with respect to the existing funds in the Trust, including Schwab Government Money Fund, Schwab U.S. Treasury Money Fund, and Schwab Treasury Obligations Money Fund (the Funds), and to review certain other agreements pursuant to which the investment adviser provides investment advisory services to certain other registered investment companies. In preparation for the meeting(s), the Board requests and reviews a wide variety of materials provided by the investment adviser, including information about the investment adviser’s affiliates, personnel, business goals and priorities, profitability, third-party oversight, corporate structure and operations. As part of the renewal process, the Independent Trustees’ legal counsel, on behalf of the Independent Trustees, sends an information request letter to the investment adviser seeking certain relevant information. The responses by the investment adviser are provided to the Trustees in the Board materials for their review prior to their meeting, and the Trustees are provided with the opportunity to request any additional materials. The Board also receives data provided by an independent provider of investment company data. This information is in addition to the detailed information about the Funds that the Board reviews during the course of each year, including information that relates to the Funds’ operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. In considering the renewal, the Independent Trustees receive advice from Independent Trustees’ legal counsel, including a memorandum regarding the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participate in question and answer sessions with representatives of the investment adviser and meet in executive session outside the presence of Fund management.

The Board, including a majority of the Independent Trustees, considered information specifically relating to the continuance

of the Agreement with respect to the Funds at meetings held on May 16, 2022 and June 8, 2022, and approved the renewal of the Agreement with respect to the Funds for an additional one-year term at the meeting on June 8, 2022 called for the purpose of voting on such approval.

The Board’s approval of the continuance of the Agreement with respect to the Funds was based on consideration and evaluation of a variety of specific factors discussed at these meetings and at prior meetings, including:

1.	the nature, extent and quality of the services provided to each Fund under the Agreement, including the resources of the investment adviser and its affiliates dedicated to the Funds;
2.	each Fund’s investment performance and how it compared to that of certain other comparable mutual funds and benchmark data;
3.	each Fund’s expenses and how those expenses compared to those of certain other similar mutual funds;
4.	the profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to each Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and
5.	the extent to which economies of scale would be realized as each Fund grows and whether fee levels in the Agreement 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 provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds. In this regard, the Trustees evaluated, among other things, the investment adviser’s experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support provided with respect to the Funds’ portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, fund accounting and custody, and vendor and risk oversight. The Trustees also considered investments the investment adviser has made in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise in key areas (including portfolio management and trade operations), and improving business continuity, cybersecurity, due diligence, risk management processes, and information security programs, which are designed to provide enhanced services to the Funds and their shareholders. The Trustees considered Schwab’s overall financial condition and its reputation as a full service brokerage

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firm, as well as the wide range of products, services, and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services provided by the investment adviser to the Funds and the resources of the investment adviser and its affiliates dedicated to the Funds supported renewal of the Agreement with respect to the Funds.

Fund Performance. The Board considered each Fund’s performance in determining whether to renew the Agreement with respect to such Fund. Specifically, the Trustees considered each Fund’s performance relative to a peer category of other mutual funds and applicable indices/benchmarks, in light of portfolio yield and market trends, as well as in consideration of each Fund’s investment style and strategy attributes and disclosures. As part of this review, the Trustees considered the composition of the peer category, selection criteria and the reputation of the independent provider of investment company data who prepared the peer category analysis. In evaluating the performance of each Fund, the Trustees considered the risk profile for such Fund and such Fund’s operation as a government money market fund within the meaning of Rule 2a-7 under the 1940 Act. The Trustees further considered the level of Fund performance in the context of their review of Fund expenses and the investment adviser’s profitability discussed below and also noted that the Board and a designated committee of the Board review performance throughout the year. Following such evaluation, the Board concluded, within the context of its full deliberations, that the performance of such Fund supported renewal of the Agreement with respect to such Fund.

Fund Expenses. With respect to each Fund’s expenses, the Trustees considered the rate of compensation called for by the Agreement and each Fund’s net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Funds and provision of services as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser’s and Schwab’s practice of waiving certain fees to prevent total annual operating expenses of the Funds from exceeding a specified cap, as well as historically using voluntary waivers (which the investment adviser will not recoup) to maintain a certain yield. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts and any differences in the market for these types of accounts. Following such evaluation, the Board

concluded, within the context of its full deliberations, that the expenses of such Fund are reasonable and supported renewal of the Agreement with respect to such Fund.

Profitability. The Trustees considered the compensation flowing to the investment adviser and its affiliates, directly or indirectly, and reviewed profitability on a pre-tax basis, without regard to distribution expenses. In this connection, the Trustees reviewed management’s profitability analyses. The Trustees also reviewed profitability of the investment adviser relating to the Schwab fund complex as a whole, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain fixed costs across the Funds and other funds in the complex. The Trustees also considered any other benefits derived by the investment adviser from its relationship with the Funds, such as whether, by virtue of its management of the Funds, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. The Trustees considered whether the compensation and profitability with respect to the Funds under the Agreement and other service agreements were reasonable and justified in light of the quality of all services rendered to the Funds by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services and systems to benefit the Funds. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the profitability of the investment adviser is reasonable and supported renewal of the Agreement with respect to such Fund.

Economies of Scale. Although the Trustees recognized the difficulty of determining economies of scale with precision, the Trustees considered the potential existence of any economies of scale and whether those are passed along to a Fund’s shareholders through (i) the enhancement of services provided to the Funds in return for fees paid, including through investments by the investment adviser in its infrastructure, including modernizing the investment adviser’s technology and use of data, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Funds and their shareholders; and (ii) pricing a fund to scale and keeping overall expenses down as the fund grows. The Trustees acknowledged that the investment adviser has shared any economies of scale with the Funds by investing in the investment adviser’s infrastructure, as discussed above, over time and that the investment adviser’s internal costs of providing investment management, technology, administrative, legal and compliance services to the Funds continue to increase as a result of regulatory or other developments. The Trustees considered that the investment adviser and its affiliates may employ contractual expense caps to protect shareholders from high fees when fund assets are relatively small, for example, in the case of newer funds or funds with investment strategies that are from time to time out of favor, because, among other reasons, shareholders may benefit from the continued availability of

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Trustees and Officers

The tables below give information about the trustees and officers of The Charles Schwab Family of Funds, 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 and Laudus Trust. The Fund Complex includes 104 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 funds’ Statement of Additional Information, which is available free by calling 1-877-824-5615.

Independent Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Robert W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016)	Retired/Private Investor.	104	None
Nancy F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Retired.	104	None
David L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Private Investor.	104	Director (2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation
Jane P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019)	Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare).	104	None
Kiran M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016)	Retired.	104	Director (2008 – present), KLA-Tencor Corporation

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Independent Trustees (continued)
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Kimberly S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Consultant (2008 – present), Patmore Management Consulting (management consulting).	104	None
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services).	104	None

Interested Trustees
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served¹)	Principal Occupations During the Past Five Years	Number of Portfolios in Fund Complex Overseen by the Trustee	Other Directorships
Walter W. Bettinger II² 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010)	Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present), and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc.	104	Director (2008 – present), The Charles Schwab Corporation
Joseph R. Martinetto² 1962 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016)	Managing Director (Jan. 2022 – present), Chief Operating Officer (Feb. 2018 – present) and Senior Executive Vice President (Feb. 2018 – Apr. 2022), The Charles Schwab Corporation; Managing Director (May 2022 – present) and Senior Executive Vice President (July 2015 – May 2022), Charles Schwab & Co., Inc.; Director (May 2007 – present), Charles Schwab & Co., Inc.; Director (Apr. 2010 – Apr. 2020), Charles Schwab Bank, SSB; Director (Nov. 2017 – Apr. 2020), Charles Schwab Premier Bank, SSB; Director (May 2007 – present), Senior Executive Vice President (Feb. 2016 – present) and Chief Financial Officer (Feb. 2016 – Aug. 2017), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation.	104	None

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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
Jonathan de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018)	Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Mar. 2019 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc.
Mark Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013)	Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Director (July 2020 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited.
Omar Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs.
Brett Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011)	Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs.
William P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021)	Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc.
Catherine MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009)	Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs.

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 retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first.
²	Mr. Bettinger and Mr. Martinetto are Interested Trustees. Mr. Bettinger is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. Mr. Martinetto is an Interested Trustee because he owns stock of CSC and is an employee and director of Schwab.
³	The President, Treasurer and Secretary/Clerk 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.

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