UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07704
Schwab Capital Trust
(Exact name of registrant as specified in charter)
211 Main Street, San Francisco, California 94105
(Address of principal executive offices) (Zip code)
Jonathan de St. Paer
Schwab Capital Trust
211 Main Street, San Francisco, California 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: (415) 636-7000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2023
Item 1: Report(s) to Shareholders.
Semiannual Report | April 30, 2023
Schwab Equity Index Funds®
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®
This page is intentionally left blank.
Eight cost-efficient ways to tap into the power of the stock market for long-term growth potential.
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
Schwab Equity Index Funds | Semiannual Report1
Schwab Equity Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab S&P 500 Index Fund (Ticker Symbol: SWPPX) | |
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Fund Category: Morningstar Large Blend1 | |
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Schwab 1000 Index Fund (Ticker Symbol: SNXFX) | |
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Fund Category: Morningstar Large Blend1 | |
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Schwab Small-Cap Index Fund (Ticker Symbol: SWSSX) | |
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Fund Category: Morningstar Small Blend1 | |
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Schwab Total Stock Market Index Fund (Ticker Symbol: SWTSX) | |
Dow Jones U.S. Total Stock Market IndexSM | |
Fund Category: Morningstar Large Blend1 | |
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Total Return for the 6 Months Ended April 30, 2023 |
Schwab U.S. Large-Cap Growth Index Fund (Ticker Symbol: SWLGX) | |
Russell 1000® Growth Index | |
Fund Category: Morningstar Large Growth1 | |
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Schwab U.S. Large-Cap Value Index Fund (Ticker Symbol: SWLVX) | |
Russell 1000® Value Index | |
Fund Category: Morningstar Large Value1 | |
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Schwab U.S. Mid-Cap Index Fund (Ticker Symbol: SWMCX) | |
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Fund Category: Morningstar Mid-Cap Blend1 | |
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Schwab International Index Fund2 (Ticker Symbol: SWISX) | |
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Fund Category: Morningstar Foreign Large Blend1 | |
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All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
2Schwab Equity Index Funds | Semiannual Report
Schwab Equity Index Funds
| Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
| Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
| Ferian Juwono, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight and day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Index Fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
| Sabya Sinha, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2015, Mr. Sinha spent a year at F-Squared Investments on the product development and analytics team. Prior to F-Squared, he worked at IndexIQ Advisors as a senior index portfolio manager for three years and for Bank of America’s Columbia Management subsidiary as a portfolio manager for three years. Mr. Sinha also spent time as a software consultant at DPM Mellon, LLC and an equity trader at Jane Street Capital. |
| Agnes Zau, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the funds, except for the Schwab International Index Fund. Prior to joining Schwab in 2018, Ms. Zau was at BlackRock for three years, most recently as a multi-asset portfolio investment consultant where she advised institutional clients on asset allocation and strategy, constructed risk decomposition and portfolio optimization, and conducted scenario analyses for the core multi-asset target risk strategies. She spent the preceding three years as a derivatives specialist at Mellon Capital. |
Schwab Equity Index Funds | Semiannual Report3
Schwab S&P 500 Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab S&P 500 Index Fund (5/19/97) | | | | |
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Fund Category: Morningstar Large Blend2 | | | | |
Fund Expense Ratio3: 0.02% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Standard & Poor’s®,” “S&P®,” and “S&P 500®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. The “S&P 500® Index” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab S&P 500 Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
4Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Performance and Fund Facts as of April 30, 2023
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Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
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Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report5
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab 1000 Index Fund (4/2/91) | | | | |
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Fund Category: Morningstar Large Blend2 | | | | |
Fund Expense Ratio3: 0.05% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
6Schwab Equity Index Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
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Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
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Sector Weightings % of Investments5
Top Equity Holdings % of Net Assets6
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
As a result of the Schwab 1000 Index®’s once per year reconstitution and the effects of certain corporate actions, the fund may hold more or less than 1,000 securities.
3
Portfolio turnover rate excludes in-kind transactions.
5
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
6
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report7
Schwab Small-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab Small-Cap Index Fund (5/19/97) | | | | |
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Fund Category: Morningstar Small Blend2 | | | | |
Fund Expense Ratio3: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Russell 2000®” is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab Small-Cap Index Fund. The Schwab Small-Cap Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
8Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Performance and Fund Facts as of April 30, 2023
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Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
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| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
2
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report9
Schwab Total Stock Market Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Total Stock Market Index Fund (6/1/99) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Fund Category: Morningstar Large Blend2 | | | | |
Fund Expense Ratio3: 0.03% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “Standard & Poor’s®” and “S&P®” are registered trademarks of Standard & Poor’s Financial Services LLC (S&P), and “Dow Jones®” is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones) and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management, Inc. The “Dow Jones U.S. Total Stock Market IndexSM” is a product of S&P Dow Jones Indices LLC or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc. The Schwab Total Stock Market Index Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
10Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report11
Schwab U.S. Large-Cap Growth Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Large-Cap Growth Index Fund (12/20/17) | | | | |
Russell 1000® Growth Index | | | | |
Fund Category: Morningstar Large Growth2 | | | | |
Fund Expense Ratio3: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell 1000® Growth Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Growth Index Fund. The Schwab U.S. Large-Cap Growth Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
12Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report13
Schwab U.S. Large-Cap Value Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Large-Cap Value Index Fund (12/20/17) | | | | |
Russell 1000® Value Index | | | | |
Fund Category: Morningstar Large Value2 | | | | |
Fund Expense Ratio3: 0.035% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell 1000® Value Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Large-Cap Value Index Fund. The Schwab U.S. Large-Cap Value Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
14Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report15
Schwab U.S. Mid-Cap Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
| | | | |
Fund: Schwab U.S. Mid-Cap Index Fund (12/20/17) | | | | |
| | | | |
Fund Category: Morningstar Mid-Cap Blend2 | | | | |
Fund Expense Ratio3: 0.04% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – The Russell Midcap® Index is a registered mark of the Frank Russell Company (Russell) and has been licensed for use by the Schwab U.S. Mid-Cap Index Fund. The Schwab U.S. Mid-Cap Index Fund is not sponsored, endorsed, sold or promoted by Russell and Russell makes no representation regarding the advisability of investing in the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
16Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Equity Index Funds | Semiannual Report17
Schwab International Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Index Fund (5/19/97) | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Blend4 | | | | |
Fund Expense Ratio5: 0.06% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Index ownership – “MSCI EAFE®” is a registered mark of MSCI and has been licensed for use by the Schwab International Index Fund. The Schwab International Index Fund is not sponsored, endorsed, sold or promoted by MSCI and MSCI bears no liability with respect to the fund. The Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the fund.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus.
18Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Equity Index Funds | Semiannual Report19
Schwab Equity Index Funds
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.
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 November 1, 2022 and held through April 30, 2023.
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 under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in 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.
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.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
|
Schwab S&P 500 Index Fund | | | | |
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Schwab Small-Cap Index Fund | | | | |
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Schwab Total Stock Market Index Fund | | | | |
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Schwab U.S. Large-Cap Growth Index Fund | | | | |
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Schwab U.S. Large-Cap Value Index Fund | | | | |
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Schwab U.S. Mid-Cap Index Fund | | | | |
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Schwab International Index Fund | | | | |
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| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
20Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.02%. The ratio presented for period ended 10/31/19 is a blended ratio. |
Schwab Equity Index Funds | Semiannual Report21
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
The PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
Johnson Controls International plc | | |
L3Harris Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raytheon Technologies Corp. | | |
Rockwell Automation, Inc. | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
| | |
|
Commercial & Professional Services 1.3% |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Robert Half International, Inc. | | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.1% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
22Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 0.9% |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
| | |
| | |
| | |
| | |
| | |
| | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.5% |
Alexandria Real Estate Equities, Inc. | | |
| | |
AvalonBay Communities, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Mid-America Apartment Communities, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Ameriprise Financial, Inc. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
| | |
Discover Financial Services | | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
FleetCor Technologies, Inc. * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report23
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
The Bank of New York Mellon Corp. | | |
The Charles Schwab Corp. (b) | | |
The Goldman Sachs Group, Inc. | | |
| | |
| | |
|
Food, Beverage & Tobacco 3.7% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 6.1% |
| | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.7% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
The Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
|
|
| | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
| | |
The Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
24Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 7.2% |
Activision Blizzard, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Charter Communications, Inc., Class A * | | |
| | |
DISH Network Corp., Class A * | | |
| | |
| | |
| | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
The Interpublic Group of Cos., Inc. | | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 8.2% |
| | |
Agilent Technologies, Inc. | | |
| | |
| | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A * | | |
|
Semiconductors & Semiconductor Equipment 6.0% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
|
Software & Services 10.7% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
Cadence Design Systems, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
Schwab Equity Index Funds | Semiannual Report25
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
|
Technology Hardware & Equipment 8.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
Seagate Technology Holdings plc | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 1.1% |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
|
| | |
|
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $31,047,235,765) | |
Total Investments in Securities
(Cost $31,047,235,765) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| Issuer is affiliated with the fund’s investment adviser. |
26Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Equity Index Funds | Semiannual Report27
Schwab S&P 500 Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $96,529,934) | | |
Investments in securities, at value - unaffiliated (cost $30,950,705,831) | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
28Schwab Equity Index Funds | Semiannual Report
Schwab S&P 500 Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $137,516) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
Schwab Equity Index Funds | Semiannual Report29
Schwab S&P 500 Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
30Schwab Equity Index Funds | Semiannual Report
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report31
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
First Financial Bankshares, Inc. | | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
ServisFirst Bancshares, Inc. | | |
| | |
| | |
The PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Bloom Energy Corp., Class A * | | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Evoqua Water Technologies Corp. * | | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
32Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Johnson Controls International plc | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raytheon Technologies Corp. | | |
| | |
| | |
Rockwell Automation, Inc. | | |
Sensata Technologies Holding plc | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 1.6% |
| | |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Casella Waste Systems, Inc., Class A * | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
Robert Half International, Inc. | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.9% |
| | |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Schwab Equity Index Funds | Semiannual Report33
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Consumer Durables & Apparel 1.1% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
| | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A * | | |
| | |
| | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
Performance Food Group Co. * | | |
| | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
PBF Energy, Inc., Class A | | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
34Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.8% |
| | |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Independence Realty Trust, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Medical Properties Trust, Inc. | | |
Mid-America Apartment Communities, Inc. | | |
National Retail Properties, Inc. | | |
National Storage Affiliates Trust | | |
Omega Healthcare Investors, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
Ryman Hospitality Properties, Inc. | | |
| | |
Simon Property Group, Inc. | | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Ares Management Corp., Class A | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Blackstone Mortgage Trust, Inc., Class A | | |
| | |
| | |
| | |
Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
| | |
Coinbase Global, Inc., Class A *(a) | | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
FactSet Research Systems, Inc. | | |
Fidelity National Information Services, Inc. | | |
| | |
FleetCor Technologies, Inc. * | | |
| | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Jefferies Financial Group, Inc. | | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
The Bank of New York Mellon Corp. | | |
| | |
The Charles Schwab Corp. (c) | | |
The Goldman Sachs Group, Inc. | | |
Schwab Equity Index Funds | Semiannual Report35
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.5% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
National Beverage Corp. * | | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 6.0% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
AMN Healthcare Services, Inc. * | | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
Inspire Medical Systems, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
iRhythm Technologies, Inc. * | | |
Laboratory Corp. of America Holdings | | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
Oak Street Health, Inc. * | | |
| | |
Option Care Health, Inc. * | | |
| | |
| | |
Privia Health Group, Inc. * | | |
| | |
| | |
| | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.5% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
| | |
The Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
|
|
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
| | |
36Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
Ryan Specialty Holdings, Inc., Class A * | | |
Selective Insurance Group, Inc. | | |
| | |
The Hanover Insurance Group, Inc. | | |
The Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
Reliance Steel & Aluminum Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United States Steel Corp. | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 6.9% |
Activision Blizzard, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
AMC Entertainment Holdings, Inc., Class A (a) | | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
DISH Network Corp., Class A * | | |
| | |
Endeavor Group Holdings, Inc., Class A * | | |
| | |
| | |
Getty Images Holdings, Inc. *(a) | | |
| | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
Schwab Equity Index Funds | Semiannual Report37
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
The Interpublic Group of Cos., Inc. | | |
The New York Times Co., Class A | | |
The Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 8.1% |
| | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
Cerevel Therapeutics Holdings, Inc. * | | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Horizon Therapeutics plc * | | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals plc * | | |
| | |
Karuna Therapeutics, Inc. * | | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
Mirati Therapeutics, Inc. * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma plc, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 5.7% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 11.0% |
| | |
| | |
Akamai Technologies, Inc. * | | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
| | |
Bentley Systems, Inc., Class B | | |
Bill.com Holdings, Inc. * | | |
| | |
Cadence Design Systems, Inc. * | | |
38Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 8.3% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
National Instruments Corp. | | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
Seagate Technology Holdings plc | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 1.0% |
| | |
Frontier Communications Parent, Inc. * | | |
Iridium Communications, Inc. | | |
Liberty Global plc, Class C * | | |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
Avis Budget Group, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
| | |
Uber Technologies, Inc. * | | |
| | |
Schwab Equity Index Funds | Semiannual Report39
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
New Jersey Resources Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $3,259,524,977) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $41,711,309) | |
Total Investments in Securities
(Cost $3,301,236,286) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $9,986,517. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
40Schwab Equity Index Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report41
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $5,326,629) | | |
Investments in securities, at value - unaffiliated (cost $3,295,909,657) including securities on loan of $9,986,517 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
42Schwab Equity Index Funds | Semiannual Report
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $26,398) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on sales of in-kind redemptions - unaffiliated | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report43
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
44Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 10/31/19 is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report45
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
Cenntro Electric Group Ltd. * | | |
| | |
| | |
Faraday Future Intelligent Electric, Inc. * | | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
Lordstown Motors Corp., Class A *(a) | | |
Luminar Technologies, Inc. *(a) | | |
Modine Manufacturing Co. * | | |
Motorcar Parts of America, Inc. * | | |
Mullen Automotive, Inc. *(a) | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
The Goodyear Tire & Rubber Co. * | | |
| | |
Winnebago Industries, Inc. | | |
Workhorse Group, Inc. *(a) | | |
| | |
| | |
|
|
| | |
| | |
Amalgamated Financial Corp. | | |
| | |
American National Bankshares, Inc. | | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bankwell Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
Blue Ridge Bankshares, Inc. | | |
| | |
Bridgewater Bancshares, Inc. * | | |
| | |
Business First Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Capital City Bank Group, Inc. | | |
Capitol Federal Financial, Inc. | | |
Capstar Financial Holdings, Inc. | | |
Carter Bankshares, Inc. * | | |
| | |
Central Pacific Financial Corp. | | |
Citizens & Northern Corp. | | |
| | |
| | |
| | |
Coastal Financial Corp. * | | |
| | |
Columbia Financial, Inc. * | | |
Community Bank System, Inc. | | |
Community Trust Bancorp, Inc. | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
Equity Bancshares, Inc., Class A | | |
Esquire Financial Holdings, Inc. | | |
Farmers & Merchants Bancorp, Inc. | | |
Farmers National Banc Corp. | | |
| | |
Financial Institutions, Inc. | | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
First Business Financial Services, Inc. | | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
First Financial Bankshares, Inc. | | |
| | |
| | |
First Guaranty Bancshares, Inc. | | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
First Western Financial, Inc. * | | |
| | |
| | |
46Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
Greene County Bancorp, Inc. | | |
Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
| | |
Independent Bank Corp., Michigan | | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
John Marshall Bancorp, Inc. | | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
| | |
| | |
Metrocity Bankshares, Inc. | | |
Metropolitan Bank Holding Corp. * | | |
| | |
Midland States Bancorp, Inc. | | |
MidWestOne Financial Group, Inc. | | |
| | |
National Bank Holdings Corp., Class A | | |
| | |
Nicolet Bankshares, Inc. * | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
| | |
Orrstown Financial Services, Inc. | | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
| | |
Peoples Financial Services Corp. | | |
| | |
| | |
| | |
| | |
| | |
Provident Financial Services, Inc. | | |
| | |
| | |
Red River Bancshares, Inc. | | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
Republic First Bancorp, Inc. *(a) | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
| | |
| | |
Simmons First National Corp., Class A | | |
| | |
South Plains Financial, Inc. | | |
Southern First Bancshares, Inc. * | | |
Southern Missouri Bancorp, Inc. | | |
Southside Bancshares, Inc. | | |
| | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
Summit Financial Group, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
| | |
The Bank of N.T. Butterfield & Son Ltd. | | |
| | |
The First Bancshares, Inc. | | |
The First of Long Island Corp. | | |
The Hingham Institution For Savings | | |
Third Coast Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
USCB Financial Holdings, Inc. * | | |
| | |
| | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Aerojet Rocketdyne Holdings, Inc. * | | |
| | |
| | |
| | |
Albany International Corp., Class A | | |
Allied Motion Technologies, Inc. | | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Woodmark Corp. * | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A * | | |
Schwab Equity Index Funds | Semiannual Report47
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Babcock & Wilcox Enterprises, Inc. * | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
Brookfield Business Corp., Class A | | |
| | |
| | |
| | |
CIRCOR International, Inc. * | | |
| | |
Comfort Systems USA, Inc. | | |
Concrete Pumping Holdings, Inc. * | | |
Construction Partners, Inc., Class A * | | |
| | |
Custom Truck One Source, Inc. * | | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Evoqua Water Technologies Corp. * | | |
Fathom Digital Manufacturing Corp., Class A * | | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
| | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
GrafTech International Ltd. | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
H&E Equipment Services, Inc. | | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
Hillman Solutions Corp. * | | |
Hudson Technologies, Inc. * | | |
| | |
Hydrofarm Holdings Group, Inc. * | | |
| | |
Hyster-Yale Materials Handling, Inc. | | |
| | |
| | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
| | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
Lightning eMotors, Inc. * | | |
| | |
| | |
Markforged Holding Corp. * | | |
Masonite International Corp. * | | |
| | |
| | |
Microvast Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rush Enterprises, Inc., Class A | | |
Rush Enterprises, Inc., Class B | | |
Sarcos Technology and Robotics Corp. * | | |
Shoals Technologies Group, Inc., Class A * | | |
Simpson Manufacturing Co., Inc. | | |
| | |
Standex International Corp. | | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
| | |
| | |
Terran Orbital Corp. *(a) | | |
Textainer Group Holdings Ltd. | | |
| | |
The Greenbrier Cos., Inc. | | |
48Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
The Manitowoc Co., Inc. * | | |
| | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
Triton International Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. *(a) | | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Commercial & Professional Services 3.9% |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
Aris Water Solution, Inc., Class A | | |
| | |
Barrett Business Services, Inc. | | |
| | |
BrightView Holdings, Inc. * | | |
Casella Waste Systems, Inc., Class A * | | |
| | |
| | |
CompX International, Inc. | | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
Forrester Research, Inc. * | | |
| | |
| | |
Healthcare Services Group, Inc. | | |
Heidrick & Struggles International, Inc. | | |
Heritage-Crystal Clean, Inc. * | | |
HireRight Holdings Corp. * | | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
KAR Auction Services, Inc. * | | |
Kelly Services, Inc., Class A | | |
| | |
Kimball International, Inc., Class B | | |
| | |
| | |
| | |
Li-Cycle Holdings Corp. *(a) | | |
Liquidity Services, Inc. * | | |
Matthews International Corp., Class A | | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.7% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
aka Brands Holding Corp. * | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
Big 5 Sporting Goods Corp. (a) | | |
| | |
Boot Barn Holdings, Inc. * | | |
Build-A-Bear Workshop, Inc. | | |
| | |
Camping World Holdings, Inc., Class A (a) | | |
| | |
| | |
| | |
| | |
ContextLogic, Inc., Class A *(a) | | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
| | |
Duluth Holdings, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report49
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
LL Flooring Holdings, Inc. * | | |
Lulu's Fashion Lounge Holdings, Inc. *(a) | | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
OneWater Marine, Inc., Class A * | | |
| | |
| | |
Qurate Retail, Inc., Series A * | | |
Rent the Runway, Inc., Class A *(a) | | |
| | |
RumbleON, Inc., Class B * | | |
Sally Beauty Holdings, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
| | |
| | |
| | |
The Children's Place, Inc. * | | |
The Container Store Group, Inc. * | | |
| | |
| | |
| | |
Tile Shop Holdings, Inc. * | | |
| | |
Torrid Holdings, Inc. *(a) | | |
TravelCenters of America, Inc. * | | |
| | |
| | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.3% |
| | |
Allbirds, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
| | |
Ethan Allen Interiors, Inc. | | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Smith & Wesson Brands, Inc. | | |
Snap One Holdings Corp. * | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Superior Group of Cos., Inc. | | |
Taylor Morrison Home Corp. * | | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Tupperware Brands Corp. * | | |
| | |
Universal Electronics, Inc. * | | |
| | |
Vizio Holding Corp., Class A * | | |
| | |
Wolverine World Wide, Inc. | | |
| | |
|
|
| | |
Accel Entertainment, Inc. * | | |
Adtalem Global Education, Inc. * | | |
American Public Education, Inc. * | | |
| | |
Biglari Holdings, Inc., Class B * | | |
| | |
| | |
Bluegreen Vacations Holding Corp. | | |
| | |
Brinker International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
El Pollo Loco Holdings, Inc. | | |
European Wax Center, Inc., Class A * | | |
| | |
F45 Training Holdings, Inc. * | | |
50Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
First Watch Restaurant Group, Inc. * | | |
| | |
Full House Resorts, Inc. * | | |
Golden Entertainment, Inc. * | | |
Graham Holdings Co., Class B | | |
Hilton Grand Vacations, Inc. * | | |
| | |
Inspired Entertainment, Inc. * | | |
International Game Technology plc | | |
| | |
| | |
Kura Sushi USA, Inc., Class A * | | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lindblad Expeditions Holdings, Inc. * | | |
Monarch Casino & Resort, Inc. | | |
| | |
| | |
| | |
OneSpaWorld Holdings Ltd. * | | |
Papa John's International, Inc. | | |
Perdoceo Education Corp. * | | |
Portillo's, Inc., Class A * | | |
RCI Hospitality Holdings, Inc. | | |
Red Rock Resorts, Inc., Class A | | |
| | |
Rush Street Interactive, Inc. * | | |
Ruth's Hospitality Group, Inc. | | |
| | |
SeaWorld Entertainment, Inc. * | | |
Shake Shack, Inc., Class A * | | |
Sonder Holdings, Inc. *(a) | | |
Strategic Education, Inc. | | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
The Beachbody Co., Inc. * | | |
The Cheesecake Factory, Inc. | | |
The ONE Group Hospitality, Inc. * | | |
| | |
Universal Technical Institute, Inc. * | | |
| | |
| | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
|
Consumer Staples Distribution & Retail 0.6% |
| | |
Ingles Markets, Inc., Class A | | |
Natural Grocers by Vitamin Cottage, Inc. | | |
| | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
The Chefs' Warehouse, Inc. * | | |
United Natural Foods, Inc. * | | |
Village Super Market, Inc., Class A | | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
| | |
| | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
Earthstone Energy, Inc., Class A * | | |
| | |
| | |
Equitrans Midstream Corp. | | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings N.V. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
International Seaways, Inc. | | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
| | |
| | |
NACCO Industries, Inc., Class A | | |
Newpark Resources, Inc. * | | |
| | |
NexTier Oilfield Solutions, Inc. * | | |
| | |
Nordic American Tankers Ltd. | | |
Northern Oil and Gas, Inc. | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report51
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
ProFrac Holding Corp., Class A * | | |
| | |
Ranger Oil Corp., Class A | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
| | |
| | |
Select Energy Services, Inc., Class A | | |
| | |
SilverBow Resources, Inc. * | | |
Sitio Royalties Corp., Class A | | |
| | |
Solaris Oilfield Infrastructure, Inc., Class A | | |
| | |
| | |
Teekay Tankers Ltd., Class A * | | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
US Silica Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Weatherford International plc * | | |
World Fuel Services Corp. | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 5.6% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
| | |
American Assets Trust, Inc. | | |
Apartment Investment & Management Co., Class A | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Ashford Hospitality Trust, Inc. * | | |
Bluerock Homes Trust, Inc. * | | |
Braemar Hotels & Resorts, Inc. | | |
| | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
Corporate Office Properties Trust | | |
| | |
DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust | | |
Easterly Government Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
Essential Properties Realty Trust, Inc. | | |
| | |
| | |
Four Corners Property Trust, Inc. | | |
Franklin Street Properties Corp. | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, Inc. | | |
| | |
Hersha Hospitality Trust, Class A | | |
Independence Realty Trust, Inc. | | |
| | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
| | |
NexPoint Residential Trust, Inc. | | |
Office Properties Income Trust | | |
One Liberty Properties, Inc. | | |
| | |
| | |
| | |
| | |
Phillips Edison & Co., Inc. | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
Postal Realty Trust, Inc., Class A | | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
Tanger Factory Outlet Centers, Inc. | | |
| | |
| | |
The Necessity Retail REIT, Inc. | | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
Urstadt Biddle Properties, Inc., Class A | | |
Veris Residential, Inc. * | | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
| | |
A-Mark Precious Metals, Inc. | | |
Angel Oak Mortgage, Inc. (a) | | |
Apollo Commercial Real Estate Finance, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
52Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Ares Commercial Real Estate Corp. | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
Assetmark Financial Holdings, Inc. * | | |
Associated Capital Group, Inc., Class A | | |
Atlanticus Holdings Corp. * | | |
| | |
AvidXchange Holdings, Inc. * | | |
B. Riley Financial, Inc. (a) | | |
Bakkt Holdings, Inc. *(a) | | |
Banco Latinoamericano de Comercio Exterior S.A., Class E | | |
BGC Partners, Inc., Class A | | |
Blackstone Mortgage Trust, Inc., Class A | | |
Bread Financial Holdings, Inc. | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
Broadmark Realty Capital, Inc. | | |
| | |
| | |
Cass Information Systems, Inc. | | |
Chicago Atlantic Real Estate Finance, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
Compass Diversified Holdings | | |
Consumer Portfolio Services, Inc. * | | |
Curo Group Holdings Corp. | | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
Finance Of America Cos., Inc., Class A * | | |
| | |
| | |
Focus Financial Partners, Inc., Class A * | | |
Franklin BSP Realty Trust, Inc. | | |
GCM Grosvenor, Inc., Class A | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
Hamilton Lane, Inc., Class A | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
| | |
| | |
I3 Verticals, Inc., Class A * | | |
International Money Express, Inc. * | | |
Invesco Mortgage Capital, Inc. | | |
Jackson Financial, Inc., Class A | | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp. REIT | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MoneyGram International, Inc. * | | |
| | |
| | |
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
Nexpoint Real Estate Finance, Inc. | | |
NMI Holdings, Inc., Class A * | | |
Open Lending Corp., Class A * | | |
Oportun Financial Corp. * | | |
Oppenheimer Holdings, Inc., Class A | | |
| | |
Orchid Island Capital, Inc. | | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
Perella Weinberg Partners, Class A | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
Priority Technology Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Regional Management Corp. | | |
| | |
| | |
Sculptor Capital Management, Inc. | | |
Silvercrest Asset Management Group, Inc., Class A | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
Sunlight Financial Holdings, Inc. * | | |
| | |
TPG RE Finance Trust, Inc. | | |
Two Harbors Investment Corp. | | |
| | |
Velocity Financial, Inc. * | | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
Waterstone Financial, Inc. | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.1% |
22nd Century Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Brookfield Realty Capital Corp., Class A *(a) | | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
Fresh Del Monte Produce, Inc. | | |
| | |
Schwab Equity Index Funds | Semiannual Report53
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
John B. Sanfilippo & Son, Inc. | | |
| | |
Lifecore Biomedical, Inc. * | | |
| | |
| | |
| | |
National Beverage Corp. * | | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
| | |
| | |
The Duckhorn Portfolio, Inc. * | | |
The Hain Celestial Group, Inc. * | | |
The Simply Good Foods Co. * | | |
The Vita Coco Co., Inc. * | | |
Tootsie Roll Industries, Inc. | | |
| | |
Turning Point Brands, Inc. | | |
| | |
| | |
| | |
Vintage Wine Estates, Inc. * | | |
| | |
Whole Earth Brands, Inc. * | | |
| | |
|
Health Care Equipment & Services 7.3% |
23andMe Holding Co., Class A * | | |
| | |
| | |
| | |
| | |
AirSculpt Technologies, Inc. (a) | | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
American Well Corp., Class A * | | |
AMN Healthcare Services, Inc. * | | |
| | |
Apollo Medical Holdings, Inc. * | | |
| | |
ATI Physical Therapy, Inc. * | | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Babylon Holdings Ltd., Class A *(a) | | |
Bioventus, Inc., Class A * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
| | |
| | |
Castle Biosciences, Inc. * | | |
| | |
Clover Health Investments Corp. * | | |
Community Health Systems, Inc. * | | |
Computer Programs & Systems, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
| | |
iRhythm Technologies, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
LifeStance Health Group, Inc. *(a) | | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
| | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
NextGen Healthcare, Inc. * | | |
| | |
| | |
OmniAb, Inc., Class A *(b) | | |
OmniAb, Inc., Class B *(b) | | |
| | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
P3 Health Partners, Inc. * | | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Senseonics Holdings, Inc. *(a) | | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
54Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Silk Road Medical, Inc. * | | |
| | |
| | |
| | |
| | |
Tactile Systems Technology, Inc. * | | |
| | |
| | |
| | |
The Oncology Institute, Inc. * | | |
The Pennant Group, Inc. * | | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
U.S. Physical Therapy, Inc. | | |
| | |
Utah Medical Products, Inc. | | |
| | |
| | |
Vicarious Surgical, Inc. *(a) | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 1.2% |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Edgewell Personal Care Co. | | |
| | |
| | |
Herbalife Nutrition Ltd. * | | |
| | |
| | |
Nature's Sunshine Products, Inc. * | | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
Thorne HealthTech, Inc. * | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
| | |
|
|
Ambac Financial Group, Inc. * | | |
American Equity Investment Life Holding Co. | | |
| | |
Argo Group International Holdings Ltd. | | |
Bright Health Group, Inc. * | | |
BRP Group, Inc., Class A * | | |
CNO Financial Group, Inc. | | |
| | |
Donegal Group, Inc., Class A | | |
| | |
| | |
| | |
Genworth Financial, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
Greenlight Capital Re Ltd., Class A * | | |
| | |
| | |
Horace Mann Educators Corp. | | |
| | |
James River Group Holdings Ltd. | | |
| | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
National Western Life Group, Inc., Class A | | |
| | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
| | |
| | |
Universal Insurance Holdings, Inc. | | |
| | |
|
|
5E Advanced Materials, Inc. *(a) | | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
| | |
Danimer Scientific, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
Hycroft Mining Holding Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report55
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
Novagold Resources, Inc. * | | |
| | |
| | |
| | |
Orion Engineered Carbons S.A. | | |
| | |
Perimeter Solutions S.A. * | | |
| | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
| | |
| | |
Rayonier Advanced Materials, Inc. * | | |
| | |
Schnitzer Steel Industries, Inc., Class A | | |
Sensient Technologies Corp. | | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tronox Holdings plc, Class A | | |
United States Lime & Minerals, Inc. | | |
| | |
| | |
Worthington Industries, Inc. | | |
| | |
|
Media & Entertainment 1.9% |
AdTheorent Holding Co., Inc. *(a) | | |
Advantage Solutions, Inc. * | | |
AMC Networks, Inc., Class A * | | |
| | |
Boston Omaha Corp., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
Cumulus Media, Inc., Class A * | | |
| | |
| | |
Entravision Communications Corp., Class A | | |
Eventbrite, Inc., Class A * | | |
EverQuote, Inc., Class A * | | |
| | |
Gambling.com Group Ltd. * | | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
| | |
| | |
Integral Ad Science Holding Corp. * | | |
John Wiley & Sons, Inc., Class A | | |
| | |
| | |
Liberty Media Corp. - Liberty Braves, Class A * | | |
Liberty Media Corp. - Liberty Braves, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Lions Gate Entertainment Corp., Class B * | | |
Madison Square Garden Entertainment Corp. * | | |
| | |
MediaAlpha, Inc., Class A * | | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
Quotient Technology, Inc. * | | |
Reservoir Media, Inc. *(a) | | |
| | |
| | |
Sinclair Broadcast Group, Inc., Class A | | |
| | |
Sphere Entertainment Co. * | | |
| | |
| | |
| | |
The Arena Group Holdings, Inc. * | | |
The E.W. Scripps Co., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vivid Seats, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 9.8% |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
AbCellera Biologics, Inc. * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Aclaris Therapeutics, Inc. * | | |
Acrivon Therapeutics, Inc. * | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Aerovate Therapeutics, Inc. * | | |
| | |
| | |
Agios Pharmaceuticals, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. * | | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
| | |
56Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Alpine Immune Sciences, Inc. * | | |
ALX Oncology Holdings, Inc. * | | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
AN2 Therapeutics, Inc. *(a) | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Apellis Pharmaceuticals, Inc. * | | |
Arbutus Biopharma Corp. * | | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
| | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
| | |
| | |
Aurinia Pharmaceuticals, Inc. * | | |
| | |
Avidity Biosciences, Inc. * | | |
Axsome Therapeutics, Inc. * | | |
Beam Therapeutics, Inc. * | | |
| | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
BioLife Solutions, Inc. * | | |
Bionano Genomics, Inc. *(a) | | |
Bioxcel Therapeutics, Inc. * | | |
| | |
Blueprint Medicines Corp. * | | |
| | |
| | |
Cara Therapeutics, Inc. * | | |
| | |
Caribou Biosciences, Inc. * | | |
Cassava Sciences, Inc. *(a) | | |
Catalyst Pharmaceuticals, Inc. * | | |
Celldex Therapeutics, Inc. * | | |
| | |
Century Therapeutics, Inc. * | | |
Cerevel Therapeutics Holdings, Inc. * | | |
| | |
Chinook Therapeutics, Inc. * | | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
Cullinan Oncology, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
Design Therapeutics, Inc. *(a) | | |
DICE Therapeutics, Inc. * | | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Eagle Pharmaceuticals, Inc. * | | |
| | |
Edgewise Therapeutics, Inc. * | | |
| | |
Eiger BioPharmaceuticals, Inc. * | | |
Emergent BioSolutions, Inc. * | | |
Enanta Pharmaceuticals, Inc. * | | |
Enochian Biosciences, Inc. *(a) | | |
| | |
| | |
Esperion Therapeutics, Inc. * | | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
| | |
Foghorn Therapeutics, Inc. * | | |
Fulcrum Therapeutics, Inc. * | | |
| | |
| | |
| | |
GreenLight Biosciences Holdings PBC * | | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
Heron Therapeutics, Inc. * | | |
| | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Inovio Pharmaceuticals, Inc. * | | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intercept Pharmaceuticals, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Iovance Biotherapeutics, Inc. * | | |
Ironwood Pharmaceuticals, Inc. * | | |
iTeos Therapeutics, Inc. * | | |
| | |
Janux Therapeutics, Inc. * | | |
Jounce Therapeutics, Inc. * | | |
KalVista Pharmaceuticals, Inc. * | | |
Karuna Therapeutics, Inc. * | | |
Karyopharm Therapeutics, Inc. * | | |
Keros Therapeutics, Inc. * | | |
Kezar Life Sciences, Inc. * | | |
Kiniksa Pharmaceuticals Ltd., Class A * | | |
Kinnate Biopharma, Inc. * | | |
| | |
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
Lyell Immunopharma, Inc. * | | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report57
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Mersana Therapeutics, Inc. * | | |
| | |
Mineralys Therapeutics, Inc. * | | |
MiNK Therapeutics, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
| | |
NanoString Technologies, Inc. * | | |
Nautilus Biotechnology, Inc. * | | |
| | |
NGM Biopharmaceuticals, Inc. * | | |
| | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
Ocular Therapeutix, Inc. * | | |
| | |
Organogenesis Holdings, Inc. * | | |
Outlook Therapeutics, Inc. *(a) | | |
Pacific Biosciences of California, Inc. * | | |
Pacira BioSciences, Inc. * | | |
Pardes Biosciences, Inc. * | | |
| | |
Phathom Pharmaceuticals, Inc. *(a) | | |
Phibro Animal Health Corp., Class A | | |
PMV Pharmaceuticals, Inc. * | | |
Point Biopharma Global, Inc. * | | |
Praxis Precision Medicines, Inc. * | | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
Prometheus Biosciences, Inc. * | | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
RAPT Therapeutics, Inc. * | | |
Reata Pharmaceuticals, Inc., Class A * | | |
Recursion Pharmaceuticals, Inc., Class A * | | |
| | |
Relay Therapeutics, Inc. * | | |
Relmada Therapeutics, Inc. * | | |
| | |
Revance Therapeutics, Inc. * | | |
REVOLUTION Medicines, Inc. * | | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. *(a) | | |
Sangamo Therapeutics, Inc. * | | |
Science 37 Holdings, Inc. * | | |
| | |
| | |
Seres Therapeutics, Inc. * | | |
| | |
Singular Genomics Systems, Inc. *(a) | | |
| | |
SpringWorks Therapeutics, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
Talaris Therapeutics, Inc. * | | |
| | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
| | |
Theravance Biopharma, Inc. * | | |
Theseus Pharmaceuticals, Inc. * | | |
Third Harmonic Bio, Inc. *(a) | | |
Travere Therapeutics, Inc. * | | |
| | |
| | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Ventyx Biosciences, Inc. * | | |
Vera Therapeutics, Inc. *(a) | | |
| | |
| | |
Verve Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
VistaGen Therapeutics, Inc. * | | |
| | |
Xeris Biopharma Holdings, Inc. * | | |
Y-mAbs Therapeutics, Inc. * | | |
Zentalis Pharmaceuticals, Inc. * | | |
| | |
|
Real Estate Management & Development 0.6% |
American Realty Investors, Inc. * | | |
Anywhere Real Estate, Inc. * | | |
| | |
Cushman & Wakefield plc * | | |
DigitalBridge Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Offerpad Solutions, Inc. * | | |
RE/MAX Holdings, Inc., Class A | | |
| | |
| | |
| | |
The RMR Group, Inc., Class A | | |
| | |
Transcontinental Realty Investors, Inc. * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.6% |
ACM Research, Inc., Class A * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
58Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
Kulicke & Soffa Industries, Inc. | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc., Class A * | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
SMART Global Holdings, Inc. * | | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
Veeco Instruments, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
American Software, Inc., Class A | | |
Amplitude, Inc., Class A * | | |
Appfolio, Inc., Class A * | | |
| | |
Applied Digital Corp. *(a) | | |
| | |
| | |
| | |
BigCommerce Holdings, Inc. * | | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
C3.ai, Inc., Class A *(a) | | |
Cerberus Cyber Sentinel Corp. * | | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
| | |
Cyxtera Technologies, Inc. * | | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
| | |
| | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
ForgeRock, Inc., Class A * | | |
Greenidge Generation Holdings, Inc. * | | |
Grid Dynamics Holdings, Inc. * | | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
| | |
Marathon Digital Holdings, Inc. *(a) | | |
| | |
| | |
MicroStrategy, Inc., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
| | |
| | |
Riot Platforms, Inc. *(a) | | |
Sapiens International Corp. N.V. | | |
SecureWorks Corp., Class A * | | |
| | |
| | |
Sprout Social, Inc., Class A * | | |
| | |
Squarespace, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Viant Technology, Inc., Class A * | | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Schwab Equity Index Funds | Semiannual Report59
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
Technology Hardware & Equipment 3.5% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
| | |
Akoustis Technologies, Inc. * | | |
Arlo Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
Comtech Telecommunications Corp. | | |
| | |
| | |
| | |
Digi International, Inc. * | | |
| | |
| | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
FARO Technologies, Inc. * | | |
Focus Universal, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
Kimball Electronics, Inc. * | | |
| | |
Lightwave Logic, Inc. *(a) | | |
Methode Electronics, Inc. | | |
| | |
Mirion Technologies, Inc. * | | |
Napco Security Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Ondas Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
Ribbon Communications, Inc. * | | |
| | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
Vishay Precision Group, Inc. * | | |
| | |
| | |
|
Telecommunication Services 0.9% |
| | |
| | |
Bandwidth, Inc., Class A * | | |
Charge Enterprises, Inc. * | | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
| | |
| | |
| | |
Iridium Communications, Inc. | | |
KORE Group Holdings, Inc. * | | |
Liberty Latin America Ltd., Class A * | | |
Liberty Latin America Ltd., Class C * | | |
| | |
Radius Global Infrastructure, Inc., Class A * | | |
Shenandoah Telecommunications Co. | | |
Telephone & Data Systems, Inc. | | |
United States Cellular Corp. * | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
Bird Global, Inc., Class A * | | |
Blade Air Mobility, Inc. * | | |
| | |
Covenant Logistics Group, Inc. | | |
| | |
Eagle Bulk Shipping, Inc. | | |
| | |
| | |
Frontier Group Holdings, Inc. * | | |
Genco Shipping & Trading Ltd. | | |
Golden Ocean Group Ltd. *(a) | | |
Hawaiian Holdings, Inc. * | | |
| | |
Hub Group, Inc., Class A * | | |
| | |
| | |
| | |
P.A.M. Transportation Services, Inc. * | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
| | |
| | |
Sun Country Airlines Holdings, Inc. * | | |
TuSimple Holdings, Inc., Class A * | | |
Universal Logistics Holdings, Inc. | | |
| | |
Wheels Up Experience, Inc. * | | |
| | |
|
60Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
|
| | |
| | |
American States Water Co. | | |
Artesian Resources Corp., Class A | | |
| | |
| | |
Brookfield Infrastructure Corp., Class A | | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class A | | |
Clearway Energy, Inc., Class C | | |
Global Water Resources, Inc. | | |
| | |
| | |
Montauk Renewables, Inc. * | | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
Portland General Electric Co. | | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Sunnova Energy International, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $4,312,268,205) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Aduro Biotech, Inc. CVR *(b) | | |
Oncternal Therapeutics, Inc. CVR *(b) | | |
| | |
Tobira Therapeutics, Inc. CVR *(b) | | |
| | |
Total Rights
(Cost $2,055) | |
| | |
SHORT-TERM INVESTMENTS 1.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
Total Short-Term Investments
(Cost $72,902,773) | |
Total Investments in Securities
(Cost $4,385,173,033) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $68,930,091. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Schwab Equity Index Funds | Semiannual Report61
Schwab Small-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
62Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $4,385,173,033) including securities on loan of $68,930,091 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
Variation margin on future contracts | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report63
Schwab Small-Cap Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $54,838) | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on sales of in-kind redemptions - unaffiliated | | |
Net realized losses on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized losses | | |
Decrease in net assets resulting from operations | | |
64Schwab Equity Index Funds | Semiannual Report
Schwab Small-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Decrease in net assets from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report65
Schwab Total Stock Market Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
66Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 1.6% |
| | |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Cooper-Standard Holdings, Inc. * | | |
| | |
| | |
Envirotech Vehicles, Inc. * | | |
Faraday Future Intelligent Electric, Inc. * | | |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Luminar Technologies, Inc. *(a) | | |
Mobileye Global, Inc., Class A *(a) | | |
Modine Manufacturing Co. * | | |
Motorcar Parts of America, Inc. * | | |
Mullen Automotive, Inc. *(a) | | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
Standard Motor Products, Inc. | | |
| | |
Strattec Security Corp. * | | |
Superior Industries International, Inc. * | | |
| | |
The Goodyear Tire & Rubber Co. * | | |
| | |
| | |
Winnebago Industries, Inc. | | |
Workhorse Group, Inc. *(a) | | |
| | |
| | |
|
|
1895 Bancorp of Wisconsin, Inc. * | | |
| | |
| | |
| | |
Affinity Bancshares, Inc. * | | |
Amalgamated Financial Corp. | | |
| | |
American National Bankshares, Inc. | | |
| | |
AmeriServ Financial, Inc. | | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. | | |
Auburn National BanCorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bank of South Carolina Corp. | | |
Bank of the James Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Bankwell Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
Blue Ridge Bankshares, Inc. | | |
| | |
| | |
Bridgewater Bancshares, Inc. * | | |
Broadway Financial Corp. * | | |
| | |
Business First Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Capital City Bank Group, Inc. | | |
Capitol Federal Financial, Inc. | | |
Capstar Financial Holdings, Inc. | | |
Carter Bankshares, Inc. * | | |
| | |
| | |
CB Financial Services, Inc. | | |
Central Pacific Financial Corp. | | |
Central Valley Community Bancorp | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report67
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
ChoiceOne Financial Services, Inc. | | |
| | |
Citizens & Northern Corp. | | |
Citizens Community Bancorp Inc/WI | | |
Citizens Financial Group, Inc. | | |
Citizens Financial Services, Inc. | | |
| | |
| | |
| | |
| | |
Coastal Financial Corp. * | | |
Codorus Valley Bancorp, Inc. | | |
| | |
Columbia Banking System, Inc. | | |
Columbia Financial, Inc. * | | |
| | |
Commerce Bancshares, Inc. | | |
Community Bank System, Inc. | | |
Community Trust Bancorp, Inc. | | |
Community West Bancshares | | |
| | |
CrossFirst Bankshares, Inc. * | | |
Cullen/Frost Bankers, Inc. | | |
| | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
Eagle Bancorp Montana, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
Equity Bancshares, Inc., Class A | | |
Esquire Financial Holdings, Inc. | | |
| | |
| | |
| | |
Farmers & Merchants Bancorp, Inc. | | |
Farmers National Banc Corp. | | |
| | |
Fidelity D&D Bancorp, Inc. | | |
| | |
Financial Institutions, Inc. | | |
| | |
| | |
| | |
First Bancorp/Southern Pines NC | | |
| | |
| | |
First Business Financial Services, Inc. | | |
| | |
First Citizens BancShares, Inc., Class A | | |
First Commonwealth Financial Corp. | | |
First Community Bankshares, Inc. | | |
| | |
| | |
First Financial Bankshares, Inc. | | |
| | |
First Financial Northwest, Inc. | | |
| | |
First Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
First Mid Bancshares, Inc. | | |
| | |
| | |
| | |
First Savings Financial Group, Inc. | | |
First Seacoast Bancorp, Inc. * | | |
| | |
First Western Financial, Inc. * | | |
| | |
| | |
| | |
Franklin Financial Services Corp. | | |
| | |
| | |
| | |
German American Bancorp, Inc. | | |
| | |
Great Southern Bancorp, Inc. | | |
Greene County Bancorp, Inc. | | |
Guaranty Bancshares, Inc. | | |
| | |
| | |
| | |
Hawthorn Bancshares, Inc. | | |
| | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
HomeTrust Bancshares, Inc. | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
Independent Bank Corp., Michigan | | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
John Marshall Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
MainStreet Bancshares, Inc. | | |
| | |
| | |
| | |
Metrocity Bankshares, Inc. | | |
Metropolitan Bank Holding Corp. * | | |
| | |
68Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Midland States Bancorp, Inc. | | |
MidWestOne Financial Group, Inc. | | |
| | |
National Bank Holdings Corp., Class A | | |
National Bankshares, Inc. | | |
| | |
New York Community Bancorp, Inc. | | |
Nicolet Bankshares, Inc. * | | |
| | |
Northeast Community Bancorp, Inc. | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
| | |
| | |
| | |
OceanFirst Financial Corp. | | |
| | |
| | |
| | |
Old Point Financial Corp. | | |
| | |
| | |
Orange County Bancorp, Inc. | | |
| | |
Orrstown Financial Services, Inc. | | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Peapack-Gladstone Financial Corp. | | |
Penns Woods Bancorp, Inc. | | |
Peoples Bancorp of North Carolina, Inc. | | |
| | |
Peoples Financial Services Corp. | | |
Pinnacle Financial Partners, Inc. | | |
| | |
| | |
Ponce Financial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
Provident Financial Holdings, Inc. | | |
Provident Financial Services, Inc. | | |
| | |
| | |
Red River Bancshares, Inc. | | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
Republic First Bancorp, Inc. * | | |
Richmond Mutual BanCorp., Inc. | | |
| | |
| | |
| | |
Sandy Spring Bancorp, Inc. | | |
| | |
| | |
Seacoast Banking Corp. of Florida | | |
ServisFirst Bancshares, Inc. | | |
| | |
| | |
Simmons First National Corp., Class A | | |
| | |
Sound Financial Bancorp, Inc. | | |
South Plains Financial, Inc. | | |
Southern First Bancshares, Inc. * | | |
Southern Missouri Bancorp, Inc. | | |
Southern States Bancshares, Inc. | | |
Southside Bancshares, Inc. | | |
| | |
| | |
| | |
Stock Yards Bancorp, Inc. | | |
Summit Financial Group, Inc. | | |
| | |
| | |
| | |
Territorial Bancorp, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
| | |
The Community Financial Corp. | | |
| | |
The First Bancshares, Inc. | | |
The First of Long Island Corp. | | |
The Hingham Institution For Savings | | |
The PNC Financial Services Group, Inc. | | |
Third Coast Bancshares, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
United Security Bancshares | | |
| | |
| | |
USCB Financial Holdings, Inc. * | | |
| | |
| | |
Virginia National Bankshares Corp. | | |
| | |
Washington Trust Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Western New England Bancorp, Inc. | | |
William Penn Bancorp, Inc. | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report69
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
Advent Technologies Holdings, Inc. *(a) | | |
| | |
Aerojet Rocketdyne Holdings, Inc. * | | |
| | |
| | |
| | |
AgEagle Aerial Systems, Inc. * | | |
| | |
| | |
Albany International Corp., Class A | | |
| | |
Allied Motion Technologies, Inc. | | |
Allison Transmission Holdings, Inc. | | |
| | |
Alta Equipment Group, Inc. | | |
Ameresco, Inc., Class A * | | |
American Superconductor Corp. * | | |
American Woodmark Corp. * | | |
| | |
Amprius Technologies, Inc. * | | |
| | |
| | |
Applied Industrial Technologies, Inc. | | |
Archer Aviation, Inc., Class A * | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Babcock & Wilcox Enterprises, Inc. * | | |
| | |
Beacon Roofing Supply, Inc. * | | |
| | |
| | |
Bloom Energy Corp., Class A * | | |
| | |
BlueLinx Holdings, Inc. * | | |
| | |
Bowman Consulting Group Ltd. * | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
Byrna Technologies, Inc. * | | |
| | |
Capstone Green Energy Corp. * | | |
| | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
| | |
CIRCOR International, Inc. * | | |
| | |
Comfort Systems USA, Inc. | | |
Commercial Vehicle Group, Inc. * | | |
Concrete Pumping Holdings, Inc. * | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Custom Truck One Source, Inc. * | | |
| | |
Desktop Metal, Inc., Class A *(a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
Dragonfly Energy Holdings Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Vault Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Eos Energy Enterprises, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Evoqua Water Technologies Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Flux Power Holdings, Inc. * | | |
| | |
Fortune Brands Innovations, Inc. | | |
Franklin Electric Co., Inc. | | |
FreightCar America, Inc. * | | |
FTAI Aviation Ltd., Class A | | |
| | |
| | |
Gates Industrial Corp. plc * | | |
| | |
Gencor Industries, Inc. * | | |
| | |
| | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
| | |
GrafTech International Ltd. | | |
| | |
70Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
| | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
Hillman Solutions Corp. * | | |
Honeywell International, Inc. | | |
| | |
| | |
Hudson Technologies, Inc. * | | |
Huntington Ingalls Industries, Inc. | | |
| | |
Hydrofarm Holdings Group, Inc. * | | |
| | |
Hyster-Yale Materials Handling, Inc. | | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Innovative Solutions and Support, Inc. * | | |
| | |
| | |
| | |
Janus International Group, Inc. * | | |
| | |
John Bean Technologies Corp. | | |
Johnson Controls International plc | | |
| | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
KULR Technology Group, Inc. * | | |
L.B. Foster Co., Class A * | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Manitex International, Inc. * | | |
Markforged Holding Corp. * | | |
| | |
Masonite International Corp. * | | |
| | |
| | |
| | |
| | |
Mayville Engineering Co., Inc. * | | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
National Presto Industries, Inc. | | |
Nauticus Robotics, Inc. *(a) | | |
| | |
NEXTracker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ocean Power Technologies, Inc. * | | |
| | |
Orion Energy Systems, Inc. * | | |
Orion Group Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Perma-Pipe International Holdings, Inc. * | | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
| | |
| | |
Quanex Building Products Corp. | | |
| | |
Raytheon Technologies Corp. | | |
| | |
| | |
| | |
Resideo Technologies, Inc. * | | |
| | |
| | |
Rockwell Automation, Inc. | | |
Rush Enterprises, Inc., Class A | | |
Rush Enterprises, Inc., Class B | | |
Sensata Technologies Holding plc | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
SKYX Platforms Corp. *(a) | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A | | |
| | |
Standex International Corp. | | |
Stanley Black & Decker, Inc. | | |
| | |
Sterling Infrastructure, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report71
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Terran Orbital Corp. *(a) | | |
| | |
| | |
| | |
| | |
| | |
The Greenbrier Cos., Inc. | | |
The LS Starrett Co., Class A * | | |
The Manitowoc Co., Inc. * | | |
| | |
| | |
| | |
| | |
Thermon Group Holdings, Inc. * | | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Triton International Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Virgin Galactic Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
Westwater Resources, Inc. * | | |
Willis Lease Finance Corp. * | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
| | |
Commercial & Professional Services 1.7% |
| | |
| | |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
| | |
ARC Document Solutions, Inc. | | |
Aris Water Solution, Inc., Class A | | |
| | |
| | |
Aurora Innovation, Inc. * | | |
Automatic Data Processing, Inc. | | |
Barrett Business Services, Inc. | | |
| | |
BlackSky Technology, Inc. *(a) | | |
Booz Allen Hamilton Holding Corp. | | |
| | |
BrightView Holdings, Inc. * | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Casella Waste Systems, Inc., Class A * | | |
| | |
CECO Environmental Corp. * | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
FiscalNote Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Healthcare Services Group, Inc. | | |
Heidrick & Struggles International, Inc. | | |
Heritage-Crystal Clean, Inc. * | | |
| | |
HireRight Holdings Corp. * | | |
| | |
| | |
Huron Consulting Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
72Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
KAR Auction Services, Inc. * | | |
| | |
Kelly Services, Inc., Class A | | |
| | |
Kimball International, Inc., Class B | | |
Knightscope, Inc., Class A * | | |
| | |
| | |
| | |
Liquidity Services, Inc. * | | |
| | |
| | |
Matthews International Corp., Class A | | |
| | |
| | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
Odyssey Marine Exploration, Inc. * | | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
Performant Financial Corp. * | | |
Perma-Fix Environmental Services, Inc. * | | |
| | |
| | |
| | |
Quest Resource Holding Corp. * | | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
Robert Half International, Inc. | | |
| | |
Science Applications International Corp. | | |
| | |
| | |
| | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Where Food Comes From, Inc. * | | |
| | |
| | |
|
| | |
Consumer Discretionary Distribution & Retail 4.8% |
1-800-Flowers.com, Inc., Class A * | | |
| | |
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
| | |
| | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
| | |
| | |
Asbury Automotive Group, Inc. * | | |
| | |
| | |
| | |
Barnes & Noble Education, Inc. * | | |
| | |
| | |
Big 5 Sporting Goods Corp. (a) | | |
| | |
Boot Barn Holdings, Inc. * | | |
Brilliant Earth Group, Inc., Class A * | | |
Build-A-Bear Workshop, Inc. | | |
Burlington Stores, Inc. * | | |
| | |
Camping World Holdings, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Designer Brands, Inc., Class A | | |
Destination XL Group, Inc. * | | |
Dick's Sporting Goods, Inc. | | |
| | |
Duluth Holdings, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
| | |
| | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lazydays Holdings, Inc. * | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report73
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
LL Flooring Holdings, Inc. * | | |
| | |
Lulu's Fashion Lounge Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
National Vision Holdings, Inc. * | | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
OneWater Marine, Inc., Class A * | | |
O'Reilly Automotive, Inc. * | | |
| | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
Qurate Retail, Inc., Series A * | | |
Rent the Runway, Inc., Class A *(a) | | |
| | |
| | |
| | |
RumbleON, Inc., Class B * | | |
Sally Beauty Holdings, Inc. * | | |
Shift Technologies, Inc. * | | |
| | |
| | |
| | |
Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
| | |
| | |
| | |
The Children's Place, Inc. * | | |
The Container Store Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tile Shop Holdings, Inc. * | | |
| | |
| | |
TravelCenters of America, Inc. * | | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
Warby Parker, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.3% |
| | |
Allbirds, Inc., Class A * | | |
American Outdoor Brands, Inc. * | | |
| | |
| | |
| | |
Bassett Furniture Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Century Communities, Inc. | | |
| | |
| | |
Cricut, Inc., Class A (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dream Finders Homes, Inc., Class A * | | |
| | |
Ethan Allen Interiors, Inc. | | |
Flexsteel Industries, Inc. | | |
| | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
Green Brick Partners, Inc. * | | |
Hamilton Beach Brands Holding Co., Class A | | |
| | |
| | |
| | |
| | |
Hovnanian Enterprises, Inc., Class A * | | |
Installed Building Products, Inc. | | |
| | |
| | |
Johnson Outdoors, Inc., Class A | | |
| | |
| | |
Lakeland Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Levi Strauss & Co., Class A | | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
| | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
74Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
| | |
Smith & Wesson Brands, Inc. | | |
Snap One Holdings Corp. * | | |
Solo Brands, Inc., Class A * | | |
| | |
| | |
| | |
Superior Group of Cos., Inc. | | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
Topgolf Callaway Brands Corp. * | | |
| | |
| | |
Tupperware Brands Corp. * | | |
Under Armour, Inc., Class A * | | |
Under Armour, Inc., Class C * | | |
| | |
Universal Electronics, Inc. * | | |
| | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
VOXX International Corp. * | | |
| | |
| | |
Wolverine World Wide, Inc. | | |
| | |
| | |
|
|
| | |
Accel Entertainment, Inc. * | | |
| | |
Adtalem Global Education, Inc. * | | |
| | |
American Public Education, Inc. * | | |
| | |
| | |
Biglari Holdings, Inc., Class B * | | |
| | |
| | |
Bluegreen Vacations Holding Corp. | | |
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Caesars Entertainment, Inc. * | | |
Canterbury Park Holding Corp. | | |
| | |
| | |
Carrols Restaurant Group, Inc. * | | |
| | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
| | |
Cracker Barrel Old Country Store, Inc. | | |
| | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Dutch Bros, Inc., Class A *(a) | | |
El Pollo Loco Holdings, Inc. | | |
European Wax Center, Inc., Class A * | | |
| | |
| | |
F45 Training Holdings, Inc. * | | |
Fiesta Restaurant Group, Inc. * | | |
First Watch Restaurant Group, Inc. * | | |
| | |
Full House Resorts, Inc. * | | |
| | |
Global Business Travel Group I * | | |
Golden Entertainment, Inc. * | | |
Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
| | |
Hall of Fame Resort & Entertainment Co. *(a) | | |
Hilton Grand Vacations, Inc. * | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A * | | |
Inspired Entertainment, Inc. * | | |
| | |
| | |
Kura Sushi USA, Inc., Class A * | | |
| | |
| | |
Life Time Group Holdings, Inc. * | | |
| | |
Lincoln Educational Services Corp. * | | |
Lindblad Expeditions Holdings, Inc. * | | |
Marriott International, Inc., Class A | | |
Marriott Vacations Worldwide Corp. | | |
| | |
Membership Collective Group, Inc., Class A * | | |
MGM Resorts International | | |
| | |
Monarch Casino & Resort, Inc. | | |
| | |
| | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
OneSpaWorld Holdings Ltd. * | | |
Papa John's International, Inc. | | |
Penn Entertainment, Inc. * | | |
Perdoceo Education Corp. * | | |
Planet Fitness, Inc., Class A * | | |
Playa Hotels & Resorts N.V. * | | |
| | |
Portillo's, Inc., Class A * | | |
| | |
RCI Hospitality Holdings, Inc. | | |
Red Robin Gourmet Burgers, Inc. * | | |
Red Rock Resorts, Inc., Class A | | |
| | |
Royal Caribbean Cruises Ltd. * | | |
Schwab Equity Index Funds | Semiannual Report75
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Rush Street Interactive, Inc. * | | |
Ruth's Hospitality Group, Inc. | | |
| | |
SeaWorld Entertainment, Inc. * | | |
Service Corp. International | | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. * | | |
| | |
| | |
Strategic Education, Inc. | | |
| | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
The Beachbody Co., Inc. * | | |
The Cheesecake Factory, Inc. | | |
The ONE Group Hospitality, Inc. * | | |
| | |
| | |
| | |
Universal Technical Institute, Inc. * | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
Xponential Fitness, Inc., Class A * | | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.8% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
| | |
Ingles Markets, Inc., Class A | | |
MedAvail Holdings, Inc. * | | |
Natural Grocers by Vitamin Cottage, Inc. | | |
Performance Food Group Co. * | | |
| | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
| | |
| | |
The Chefs' Warehouse, Inc. * | | |
| | |
U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Village Super Market, Inc., Class A | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
| | |
|
|
Adams Resources & Energy, Inc. | | |
| | |
American Resources Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
California Resources Corp. | | |
| | |
Centrus Energy Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clean Energy Fuels Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Crescent Energy Co., Class A | | |
| | |
| | |
| | |
| | |
Diamond Offshore Drilling, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Earthstone Energy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Equitrans Midstream Corp. | | |
Evolution Petroleum Corp. | | |
Excelerate Energy, Inc., Class A | | |
Expro Group Holdings N.V. * | | |
| | |
Forum Energy Technologies, Inc. * | | |
Geospace Technologies Corp. * | | |
| | |
Granite Ridge Resources, Inc. | | |
| | |
Gulf Island Fabrication, Inc. * | | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
| | |
HighPeak Energy, Inc. (a) | | |
Houston American Energy Corp. * | | |
Independence Contract Drilling, Inc. * | | |
International Seaways, Inc. | | |
| | |
| | |
KLX Energy Services Holdings, Inc. * | | |
| | |
76Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
Mammoth Energy Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
NACCO Industries, Inc., Class A | | |
Natural Gas Services Group, Inc. * | | |
New Fortress Energy, Inc. | | |
Newpark Resources, Inc. * | | |
| | |
NexTier Oilfield Solutions, Inc. * | | |
Nine Energy Service, Inc. * | | |
| | |
Northern Oil and Gas, Inc. | | |
| | |
Occidental Petroleum Corp. | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
| | |
Overseas Shipholding Group, Inc., Class A * | | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Pioneer Natural Resources Co. | | |
PrimeEnergy Resources Corp. * | | |
| | |
ProFrac Holding Corp., Class A * | | |
| | |
| | |
Ranger Energy Services, Inc. * | | |
Ranger Oil Corp., Class A | | |
REX American Resources Corp. * | | |
Riley Exploration Permian, Inc. | | |
| | |
| | |
| | |
| | |
SEACOR Marine Holdings, Inc. * | | |
Select Energy Services, Inc., Class A | | |
SilverBow Resources, Inc. * | | |
Sitio Royalties Corp., Class A | | |
| | |
| | |
Solaris Oilfield Infrastructure, Inc., Class A | | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
TETRA Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
US Silica Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Weatherford International plc * | | |
World Fuel Services Corp. | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.9% |
| | |
| | |
Alexander & Baldwin, Inc. | | |
| | |
Alexandria Real Estate Equities, Inc. | | |
Alpine Income Property Trust, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
Apartment Investment & Management Co., Class A | | |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
Ashford Hospitality Trust, Inc. * | | |
AvalonBay Communities, Inc. | | |
Bluerock Homes Trust, Inc. * | | |
| | |
Braemar Hotels & Resorts, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
Broadstone Net Lease, Inc. | | |
| | |
| | |
| | |
CBL & Associates Properties, Inc. | | |
| | |
| | |
| | |
| | |
Community Healthcare Trust, Inc. | | |
Corporate Office Properties Trust | | |
| | |
Creative Media & Community Trust Corp. | | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
Digital Realty Trust, Inc. | | |
Diversified Healthcare Trust | | |
| | |
Easterly Government Properties, Inc. | | |
EastGroup Properties, Inc. | | |
| | |
Empire State Realty Trust, Inc., Class A | | |
| | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essential Properties Realty Trust, Inc. | | |
Essex Property Trust, Inc. | | |
Schwab Equity Index Funds | Semiannual Report77
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Extra Space Storage, Inc. | | |
| | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
Franklin Street Properties Corp. | | |
Gaming & Leisure Properties, Inc. | | |
| | |
Gladstone Commercial Corp. | | |
| | |
Global Medical REIT, Inc. | | |
| | |
Global Self Storage, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Hersha Hospitality Trust, Class A | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
| | |
Industrial Logistics Properties Trust | | |
Innovative Industrial Properties, Inc. | | |
InvenTrust Properties Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
| | |
Medical Properties Trust, Inc. (a) | | |
Mid-America Apartment Communities, Inc. | | |
| | |
National Health Investors, Inc. | | |
National Retail Properties, Inc. | | |
National Storage Affiliates Trust | | |
| | |
New Century Financial Corp. *(c) | | |
NexPoint Diversified Real Estate Trust | | |
NexPoint Residential Trust, Inc. | | |
Office Properties Income Trust | | |
Omega Healthcare Investors, Inc. | | |
One Liberty Properties, Inc. | | |
| | |
| | |
| | |
Park Hotels & Resorts, Inc. | | |
| | |
Phillips Edison & Co., Inc. | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
Plymouth Industrial REIT, Inc. | | |
Postal Realty Trust, Inc., Class A | | |
| | |
| | |
Presidio Property Trust, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
SL Green Realty Corp. (a) | | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
| | |
Sunstone Hotel Investors, Inc. | | |
Tanger Factory Outlet Centers, Inc. | | |
| | |
| | |
The Necessity Retail REIT, Inc. | | |
| | |
| | |
| | |
Universal Health Realty Income Trust | | |
| | |
Urstadt Biddle Properties, Inc., Class A | | |
| | |
Veris Residential, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
|
| | |
ACRES Commercial Realty Corp. | | |
| | |
Affiliated Managers Group, Inc. | | |
| | |
AG Mortgage Investment Trust, Inc. | | |
| | |
| | |
| | |
| | |
A-Mark Precious Metals, Inc. | | |
| | |
Ameriprise Financial, Inc. | | |
Angel Oak Mortgage, Inc. (a) | | |
Annaly Capital Management, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
Apollo Global Management, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
Ares Commercial Real Estate Corp. | | |
Ares Management Corp., Class A | | |
Arlington Asset Investment Corp., Class A * | | |
ARMOUR Residential REIT, Inc. | | |
Artisan Partners Asset Management, Inc., Class A | | |
78Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Assetmark Financial Holdings, Inc. * | | |
Associated Capital Group, Inc., Class A | | |
Atlanticus Holdings Corp. * | | |
| | |
AvidXchange Holdings, Inc. * | | |
B. Riley Financial, Inc. (a) | | |
Bakkt Holdings, Inc. *(a) | | |
Berkshire Hathaway, Inc., Class B * | | |
BGC Partners, Inc., Class A | | |
| | |
Blackstone Mortgage Trust, Inc., Class A | | |
| | |
| | |
| | |
| | |
Bread Financial Holdings, Inc. | | |
Bridge Investment Group Holdings, Inc., Class A | | |
Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
Broadmark Realty Capital, Inc. | | |
| | |
| | |
Capital One Financial Corp. | | |
Cass Information Systems, Inc. | | |
Cboe Global Markets, Inc. | | |
Cherry Hill Mortgage Investment Corp. (a) | | |
Chicago Atlantic Real Estate Finance, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
| | |
| | |
Coinbase Global, Inc., Class A *(a) | | |
Consumer Portfolio Services, Inc. * | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
Curo Group Holdings Corp. | | |
Diamond Hill Investment Group, Inc. | | |
Discover Financial Services | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
Ellington Financial, Inc. | | |
Ellington Residential Mortgage REIT | | |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
| | |
| | |
FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
Fidelity National Information Services, Inc. | | |
Finance Of America Cos., Inc., Class A * | | |
| | |
| | |
FleetCor Technologies, Inc. * | | |
| | |
| | |
Focus Financial Partners, Inc., Class A * | | |
Forge Global Holdings, Inc. * | | |
Franklin BSP Realty Trust, Inc. | | |
| | |
GCM Grosvenor, Inc., Class A | | |
| | |
Granite Point Mortgage Trust, Inc. | | |
| | |
Green Dot Corp., Class A * | | |
| | |
Guild Holdings Co., Class A * | | |
Hamilton Lane, Inc., Class A | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
| | |
| | |
I3 Verticals, Inc., Class A * | | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
International Money Express, Inc. * | | |
| | |
Invesco Mortgage Capital, Inc. | | |
Jack Henry & Associates, Inc. | | |
Jackson Financial, Inc., Class A | | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
| | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp. REIT | | |
| | |
| | |
| | |
loanDepot, Inc., Class A * | | |
LPL Financial Holdings, Inc. | | |
Lument Finance Trust, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
Mastercard, Inc., Class A | | |
Medallion Financial Corp. | | |
| | |
| | |
| | |
| | |
MoneyGram International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
NerdWallet, Inc., Class A * | | |
New York Mortgage Trust, Inc. | | |
Nexpoint Real Estate Finance, Inc. | | |
Nicholas Financial, Inc. * | | |
NMI Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Open Lending Corp., Class A * | | |
Oportun Financial Corp. * | | |
Oppenheimer Holdings, Inc., Class A | | |
Schwab Equity Index Funds | Semiannual Report79
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Orchid Island Capital, Inc. (a) | | |
| | |
Paymentus Holdings, Inc., Class A * | | |
| | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
Perella Weinberg Partners, Class A | | |
| | |
PJT Partners, Inc., Class A | | |
| | |
Priority Technology Holdings, Inc. * | | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
Regional Management Corp. | | |
| | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A *(a) | | |
| | |
| | |
| | |
Safeguard Scientifics, Inc. * | | |
Sculptor Capital Management, Inc. | | |
Security National Financial Corp., Class A * | | |
| | |
| | |
Shift4 Payments, Inc., Class A * | | |
Silvercrest Asset Management Group, Inc., Class A | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
StepStone Group, Inc., Class A | | |
| | |
| | |
Sunlight Financial Holdings, Inc. * | | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
The Bank of New York Mellon Corp. | | |
| | |
The Charles Schwab Corp. (d) | | |
The Goldman Sachs Group, Inc. | | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
Two Harbors Investment Corp. | | |
U.S. Global Investors, Inc., Class A | | |
Upstart Holdings, Inc. *(a) | | |
| | |
| | |
Velocity Financial, Inc. * | | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
| | |
| | |
Waterstone Financial, Inc. | | |
Western Asset Mortgage Capital Corp. | | |
Westwood Holdings Group, Inc. | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.4% |
22nd Century Group, Inc. * | | |
| | |
| | |
| | |
Archer-Daniels-Midland Co. | | |
| | |
| | |
| | |
Brookfield Realty Capital Corp., Class A *(a) | | |
Brown-Forman Corp., Class A | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Consolidated, Inc. | | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
Fresh Del Monte Produce, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
John B. Sanfilippo & Son, Inc. | | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
Lifecore Biomedical, Inc. * | | |
| | |
MamaMancini's Holdings, Inc. * | | |
McCormick & Co., Inc. - Non Voting Shares | | |
| | |
| | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
National Beverage Corp. * | | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
Seneca Foods Corp., Class A * | | |
| | |
Splash Beverage Group, Inc. * | | |
| | |
80Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
The Boston Beer Co., Inc., Class A * | | |
| | |
The Duckhorn Portfolio, Inc. * | | |
The Hain Celestial Group, Inc. * | | |
| | |
| | |
| | |
The Real Good Food Co., Inc. * | | |
The Simply Good Foods Co. * | | |
The Vita Coco Co., Inc. * | | |
Tootsie Roll Industries, Inc. | | |
| | |
Turning Point Brands, Inc. | | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Whole Earth Brands, Inc. * | | |
| | |
| | |
|
Health Care Equipment & Services 6.0% |
23andMe Holding Co., Class A * | | |
| | |
Acadia Healthcare Co., Inc. * | | |
Accelerate Diagnostics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
AirSculpt Technologies, Inc. (a) | | |
| | |
| | |
| | |
Alignment Healthcare, Inc. * | | |
Alphatec Holdings, Inc. * | | |
| | |
American Well Corp., Class A * | | |
| | |
AMN Healthcare Services, Inc. * | | |
| | |
Apollo Medical Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Aveanna Healthcare Holdings, Inc. * | | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
| | |
| | |
Bioventus, Inc., Class A * | | |
Boston Scientific Corp. * | | |
Brookdale Senior Living, Inc. * | | |
Butterfly Network, Inc. *(a) | | |
| | |
| | |
| | |
| | |
Castle Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Clover Health Investments Corp. * | | |
| | |
Community Health Systems, Inc. * | | |
Computer Programs & Systems, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Definitive Healthcare Corp. * | | |
| | |
| | |
| | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Evolent Health, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
InfuSystem Holdings, Inc. * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report81
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intuitive Surgical, Inc. * | | |
| | |
iRhythm Technologies, Inc. * | | |
| | |
KORU Medical Systems, Inc. * | | |
Laboratory Corp. of America Holdings | | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
LifeStance Health Group, Inc. * | | |
| | |
| | |
| | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
NextGen Healthcare, Inc. * | | |
| | |
| | |
Oak Street Health, Inc. * | | |
OmniAb, Inc., Class A *(c) | | |
OmniAb, Inc., Class B *(c) | | |
| | |
| | |
| | |
Option Care Health, Inc. * | | |
OraSure Technologies, Inc. * | | |
Orchestra BioMed Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
| | |
| | |
| | |
| | |
Privia Health Group, Inc. * | | |
PROCEPT BioRobotics Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Select Medical Holdings Corp. | | |
Semler Scientific, Inc. * | | |
Senseonics Holdings, Inc. *(a) | | |
| | |
Sensus Healthcare, Inc. * | | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
Silk Road Medical, Inc. * | | |
| | |
| | |
| | |
Sonida Senior Living, Inc. * | | |
| | |
| | |
| | |
Streamline Health Solutions, Inc. * | | |
| | |
| | |
| | |
Tabula Rasa HealthCare, Inc. * | | |
Tactile Systems Technology, Inc. * | | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Oncology Institute, Inc. * | | |
The Pennant Group, Inc. * | | |
TransMedics Group, Inc. * | | |
Treace Medical Concepts, Inc. * | | |
U.S. Physical Therapy, Inc. | | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Utah Medical Products, Inc. | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
Vicarious Surgical, Inc. * | | |
| | |
| | |
| | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 1.5% |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
Church & Dwight Co., Inc. | | |
| | |
| | |
Edgewell Personal Care Co. | | |
| | |
| | |
Herbalife Nutrition Ltd. * | | |
| | |
| | |
| | |
| | |
82Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Natural Alternatives International, Inc. * | | |
Nature's Sunshine Products, Inc. * | | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
| | |
The Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
Thorne HealthTech, Inc. * | | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
Ambac Financial Group, Inc. * | | |
American Equity Investment Life Holding Co. | | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
| | |
Arch Capital Group Ltd. * | | |
Argo Group International Holdings Ltd. | | |
Arthur J. Gallagher & Co. | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Bright Health Group, Inc. * | | |
Brighthouse Financial, Inc. * | | |
| | |
BRP Group, Inc., Class A * | | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
CNO Financial Group, Inc. | | |
| | |
Donegal Group, Inc., Class A | | |
| | |
| | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
| | |
GoHealth, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
Greenlight Capital Re Ltd., Class A * | | |
Hagerty, Inc., Class A *(a) | | |
Hallmark Financial Services, Inc. * | | |
| | |
Heritage Insurance Holdings, Inc. | | |
Horace Mann Educators Corp. | | |
| | |
James River Group Holdings Ltd. | | |
| | |
| | |
Kingsway Financial Services, Inc. * | | |
Kinsale Capital Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
| | |
| | |
| | |
National Western Life Group, Inc., Class A | | |
| | |
Old Republic International Corp. | | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
| | |
Ryan Specialty Holdings, Inc., Class A * | | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
| | |
Skyward Specialty Insurance Group, Inc. * | | |
Stewart Information Services Corp. | | |
| | |
The Hanover Insurance Group, Inc. | | |
The Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
United Insurance Holdings Corp. * | | |
Universal Insurance Holdings, Inc. | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
5E Advanced Materials, Inc. *(a) | | |
Advanced Emissions Solutions, Inc. * | | |
| | |
Air Products & Chemicals, Inc. | | |
| | |
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report83
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
Core Molding Technologies, Inc. * | | |
| | |
| | |
| | |
Danimer Scientific, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Flotek Industries, Inc. * | | |
| | |
| | |
Friedman Industries, Inc. | | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
| | |
| | |
Haynes International, Inc. | | |
| | |
| | |
Hycroft Mining Holding Corp. * | | |
Idaho Strategic Resources, Inc. * | | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Loop Industries, Inc. *(a) | | |
| | |
| | |
| | |
LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
Mercer International, Inc. | | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
Northern Technologies International Corp. | | |
| | |
| | |
| | |
| | |
| | |
Orion Engineered Carbons S.A. | | |
Packaging Corp. of America | | |
| | |
Perimeter Solutions S.A. * | | |
| | |
| | |
PureCycle Technologies, Inc. *(a) | | |
| | |
| | |
| | |
Rayonier Advanced Materials, Inc. * | | |
Reliance Steel & Aluminum Co. | | |
| | |
| | |
| | |
Schnitzer Steel Industries, Inc., Class A | | |
| | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
| | |
| | |
The Scotts Miracle-Gro Co. | | |
| | |
| | |
| | |
| | |
| | |
Tronox Holdings plc, Class A | | |
| | |
| | |
United States Lime & Minerals, Inc. | | |
United States Steel Corp. | | |
Universal Stainless & Alloy Products, Inc. * | | |
| | |
| | |
| | |
| | |
84Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Worthington Industries, Inc. | | |
| | |
|
Media & Entertainment 6.6% |
Activision Blizzard, Inc. * | | |
AdTheorent Holding Co., Inc. * | | |
Advantage Solutions, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Altice USA, Inc., Class A * | | |
AMC Entertainment Holdings, Inc., Class A (a) | | |
AMC Networks, Inc., Class A * | | |
| | |
Boston Omaha Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Charter Communications, Inc., Class A * | | |
Cinedigm Corp., Class A * | | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
| | |
Cumulus Media, Inc., Class A * | | |
| | |
| | |
| | |
DISH Network Corp., Class A * | | |
| | |
| | |
Endeavor Group Holdings, Inc., Class A * | | |
Entravision Communications Corp., Class A | | |
Eventbrite, Inc., Class A * | | |
EverQuote, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Genius Brands International, Inc. * | | |
Golden Matrix Group, Inc. * | | |
| | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
| | |
Integral Ad Science Holding Corp. * | | |
| | |
John Wiley & Sons, Inc., Class A | | |
| | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Braves, Class A * | | |
Liberty Media Corp. - Liberty Braves, Class C * | | |
| | |
Liberty Media Corp. - Liberty Formula One, Class A * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Liberty Media Corp. - Liberty SiriusXM, Class A * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Lions Gate Entertainment Corp., Class B * | | |
Live Nation Entertainment, Inc. * | | |
| | |
| | |
Madison Square Garden Entertainment Corp. * | | |
Madison Square Garden Sports Corp. | | |
| | |
| | |
| | |
MediaAlpha, Inc., Class A * | | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
Nexstar Media Group, Inc., Class A | | |
Nextdoor Holdings, Inc. * | | |
| | |
| | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
PubMatic, Inc., Class A * | | |
| | |
Quotient Technology, Inc. * | | |
Reading International, Inc., Class B * | | |
| | |
| | |
| | |
| | |
Saga Communications, Inc., Class A | | |
| | |
| | |
| | |
Sinclair Broadcast Group, Inc., Class A | | |
Sirius XM Holdings, Inc. (a) | | |
| | |
| | |
Sphere Entertainment Co. * | | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
The Arena Group Holdings, Inc. * | | |
The E.W. Scripps Co., Class A * | | |
The Interpublic Group of Cos., Inc. | | |
| | |
The New York Times Co., Class A | | |
The Trade Desk, Inc., Class A * | | |
| | |
| | |
Townsquare Media, Inc., Class A | | |
| | |
Schwab Equity Index Funds | Semiannual Report85
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Vivid Seats, Inc., Class A * | | |
Warner Bros Discovery, Inc. * | | |
Warner Music Group Corp., Class A | | |
| | |
| | |
World Wrestling Entertainment, Inc., Class A | | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 8.2% |
10X Genomics, Inc., Class A * | | |
| | |
4D Molecular Therapeutics, Inc. * | | |
| | |
| | |
| | |
Abeona Therapeutics, Inc. * | | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
AcelRx Pharmaceuticals, Inc. * | | |
Achieve Life Sciences, Inc. * | | |
Aclaris Therapeutics, Inc. * | | |
Acrivon Therapeutics, Inc. * | | |
Actinium Pharmaceuticals, Inc. * | | |
Acumen Pharmaceuticals, Inc. * | | |
Adaptive Biotechnologies Corp. * | | |
| | |
| | |
Adverum Biotechnologies, Inc. * | | |
Aerovate Therapeutics, Inc. * | | |
| | |
Agilent Technologies, Inc. | | |
Agios Pharmaceuticals, Inc. * | | |
Akebia Therapeutics, Inc. * | | |
Akero Therapeutics, Inc. * | | |
Akoya Biosciences, Inc. * | | |
Aldeyra Therapeutics, Inc. * | | |
| | |
| | |
| | |
Allogene Therapeutics, Inc. * | | |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
Alpine Immune Sciences, Inc. * | | |
| | |
| | |
| | |
Amicus Therapeutics, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Amylyx Pharmaceuticals, Inc. * | | |
AN2 Therapeutics, Inc. *(a) | | |
| | |
Anavex Life Sciences Corp. *(a) | | |
ANI Pharmaceuticals, Inc. * | | |
Anika Therapeutics, Inc. * | | |
Anixa Biosciences, Inc. * | | |
| | |
| | |
| | |
Apellis Pharmaceuticals, Inc. * | | |
AquaBounty Technologies, Inc. * | | |
| | |
Arbutus Biopharma Corp. * | | |
| | |
| | |
Arcturus Therapeutics Holdings, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * | | |
| | |
Arrowhead Pharmaceuticals, Inc. * | | |
ARS Pharmaceuticals, Inc. * | | |
| | |
Assembly Biosciences, Inc. * | | |
Assertio Holdings, Inc. * | | |
Astria Therapeutics, Inc. * | | |
Atara Biotherapeutics, Inc. * | | |
Atea Pharmaceuticals, Inc. * | | |
| | |
Atossa Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Avidity Biosciences, Inc. * | | |
| | |
| | |
| | |
Axsome Therapeutics, Inc. * | | |
| | |
Beam Therapeutics, Inc. * | | |
Bellerophon Therapeutics, Inc. * | | |
| | |
| | |
BioCryst Pharmaceuticals, Inc. * | | |
| | |
| | |
BioLife Solutions, Inc. * | | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
Bionano Genomics, Inc. *(a) | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Bioxcel Therapeutics, Inc. * | | |
Blueprint Medicines Corp. * | | |
Bolt Biotherapeutics, Inc. * | | |
BrainStorm Cell Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Capricor Therapeutics, Inc. * | | |
Cara Therapeutics, Inc. * | | |
| | |
| | |
Caribou Biosciences, Inc. * | | |
Carisma Therapeutics, Inc. | | |
Cassava Sciences, Inc. *(a) | | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
Celldex Therapeutics, Inc. * | | |
86Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Century Therapeutics, Inc. * | | |
Cerevel Therapeutics Holdings, Inc. * | | |
Charles River Laboratories International, Inc. * | | |
Checkpoint Therapeutics, Inc. *(a) | | |
| | |
Chinook Therapeutics, Inc. * | | |
| | |
Cidara Therapeutics, Inc. * | | |
Citius Pharmaceuticals, Inc. * | | |
Clearside Biomedical, Inc. * | | |
| | |
| | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Compass Therapeutics, Inc. * | | |
Corbus Pharmaceuticals Holdings, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Crinetics Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Cullinan Oncology, Inc. * | | |
| | |
Cymabay Therapeutics, Inc. * | | |
Cytek Biosciences, Inc. * | | |
| | |
CytomX Therapeutics, Inc. * | | |
| | |
| | |
Day One Biopharmaceuticals, Inc. * | | |
Decibel Therapeutics, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
| | |
Design Therapeutics, Inc. *(a) | | |
DICE Therapeutics, Inc. * | | |
| | |
| | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Eagle Pharmaceuticals, Inc. * | | |
Edgewise Therapeutics, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
Eledon Pharmaceuticals, Inc. * | | |
| | |
Emergent BioSolutions, Inc. * | | |
Enanta Pharmaceuticals, Inc. * | | |
Enliven Therapeutics, Inc. * | | |
Entrada Therapeutics, Inc. * | | |
| | |
| | |
Esperion Therapeutics, Inc. * | | |
Eton Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
EyePoint Pharmaceuticals, Inc. * | | |
Fate Therapeutics, Inc. * | | |
| | |
| | |
Finch Therapeutics Group, Inc. * | | |
Foghorn Therapeutics, Inc. * | | |
| | |
Frequency Therapeutics, Inc. * | | |
Fulcrum Therapeutics, Inc. * | | |
Galectin Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Greenwich Lifesciences, Inc. * | | |
| | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Hepion Pharmaceuticals, Inc. * | | |
| | |
Homology Medicines, Inc. * | | |
| | |
Horizon Therapeutics plc * | | |
| | |
| | |
Ideaya Biosciences, Inc. * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
Immuneering Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Impel Pharmaceuticals, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Intellia Therapeutics, Inc. * | | |
Intercept Pharmaceuticals, Inc. * | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Iovance Biotherapeutics, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
iTeos Therapeutics, Inc. * | | |
| | |
Janux Therapeutics, Inc. * | | |
Jasper Therapeutics, Inc. * | | |
Jazz Pharmaceuticals plc * | | |
| | |
KalVista Pharmaceuticals, Inc. * | | |
Karuna Therapeutics, Inc. * | | |
Karyopharm Therapeutics, Inc. * | | |
| | |
Keros Therapeutics, Inc. * | | |
Kezar Life Sciences, Inc. * | | |
| | |
Kiniksa Pharmaceuticals Ltd., Class A * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report87
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
| | |
Larimar Therapeutics, Inc. * | | |
Leap Therapeutics, Inc. * | | |
Lexicon Pharmaceuticals, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
Lineage Cell Therapeutics, Inc. * | | |
| | |
| | |
Longboard Pharmaceuticals, Inc. * | | |
Lyell Immunopharma, Inc. * | | |
Lyra Therapeutics, Inc. * | | |
| | |
Madrigal Pharmaceuticals, Inc. * | | |
Magenta Therapeutics, Inc. * | | |
| | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
Marinus Pharmaceuticals, Inc. * | | |
Matinas BioPharma Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Merrimack Pharmaceuticals, Inc. * | | |
Mersana Therapeutics, Inc. * | | |
Mettler-Toledo International, Inc. * | | |
| | |
Mind Medicine MindMed, Inc. * | | |
Mineralys Therapeutics, Inc. * | | |
MiNK Therapeutics, Inc. * | | |
Mirati Therapeutics, Inc. * | | |
Miromatrix Medical, Inc. * | | |
Mirum Pharmaceuticals, Inc. * | | |
| | |
Moleculin Biotech, Inc. * | | |
Monte Rosa Therapeutics, Inc. * | | |
| | |
MyMD Pharmaceuticals, Inc. *(a) | | |
| | |
NanoString Technologies, Inc. * | | |
| | |
Nautilus Biotechnology, Inc. * | | |
Neubase Therapeutics, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
| | |
NGM Biopharmaceuticals, Inc. * | | |
| | |
| | |
| | |
NRX Pharmaceuticals, Inc. * | | |
Nurix Therapeutics, Inc. * | | |
Nuvalent, Inc., Class A * | | |
| | |
| | |
Ocular Therapeutix, Inc. * | | |
| | |
Olema Pharmaceuticals, Inc. * | | |
Omega Therapeutics, Inc. * | | |
| | |
| | |
| | |
Oncternal Therapeutics, Inc. * | | |
| | |
| | |
| | |
Organogenesis Holdings, Inc. * | | |
| | |
| | |
ORIC Pharmaceuticals, Inc. * | | |
Osmotica Pharmaceuticals plc *(a) | | |
Outlook Therapeutics, Inc. *(a) | | |
Ovid therapeutics, Inc. * | | |
Pacific Biosciences of California, Inc. * | | |
Pacira BioSciences, Inc. * | | |
Palatin Technologies, Inc. * | | |
Paratek Pharmaceuticals, Inc. * | | |
| | |
PDS Biotechnology Corp. * | | |
| | |
| | |
| | |
| | |
Perspective Therapeutics, Inc. * | | |
| | |
PharmaCyte Biotech, Inc. * | | |
Phathom Pharmaceuticals, Inc. *(a) | | |
Phibro Animal Health Corp., Class A | | |
Pieris Pharmaceuticals, Inc. * | | |
Pliant Therapeutics, Inc. * | | |
PMV Pharmaceuticals, Inc. * | | |
Point Biopharma Global, Inc. * | | |
Poseida Therapeutics, Inc. * | | |
Praxis Precision Medicines, Inc. * | | |
| | |
Precision BioSciences, Inc. * | | |
Prelude Therapeutics, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
Prime Medicine, Inc. *(a) | | |
| | |
Prometheus Biosciences, Inc. * | | |
| | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
Puma Biotechnology, Inc. * | | |
Pyxis Oncology, Inc. *(a) | | |
| | |
| | |
Quince Therapeutics, Inc. * | | |
| | |
| | |
Rani Therapeutics Holdings, Inc., Class A * | | |
Rapid Micro Biosystems, Inc., Class A * | | |
RAPT Therapeutics, Inc. * | | |
Reata Pharmaceuticals, Inc., Class A * | | |
Recursion Pharmaceuticals, Inc., Class A * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Regulus Therapeutics, Inc. * | | |
Relay Therapeutics, Inc. * | | |
Relmada Therapeutics, Inc. * | | |
Reneo Pharmaceuticals, Inc. * | | |
| | |
| | |
Revance Therapeutics, Inc. * | | |
Reviva Pharmaceuticals Holdings, Inc. *(a) | | |
REVOLUTION Medicines, Inc. * | | |
| | |
Rhythm Pharmaceuticals, Inc. * | | |
88Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Rigel Pharmaceuticals, Inc. * | | |
Rocket Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma plc, Class A | | |
SAB Biotherapeutics, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sangamo Therapeutics, Inc. * | | |
Sarepta Therapeutics, Inc. * | | |
Satsuma Pharmaceuticals, Inc. * | | |
| | |
Scholar Rock Holding Corp. * | | |
| | |
scPharmaceuticals, Inc. *(a) | | |
| | |
| | |
Seelos Therapeutics, Inc. * | | |
Selecta Biosciences, Inc. * | | |
SELLAS Life Sciences Group, Inc. * | | |
Sera Prognostics, Inc., Class A * | | |
Seres Therapeutics, Inc. * | | |
| | |
| | |
Singular Genomics Systems, Inc. * | | |
| | |
Solid Biosciences, Inc. * | | |
| | |
| | |
Spectrum Pharmaceuticals, Inc. * | | |
Spero Therapeutics, Inc. * | | |
SpringWorks Therapeutics, Inc. * | | |
Standard BioTools, Inc. * | | |
Stoke Therapeutics, Inc. * | | |
Summit Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
| | |
Syndax Pharmaceuticals, Inc. * | | |
| | |
| | |
Synthetic Biologics, Inc. * | | |
Syros Pharmaceuticals, Inc. * | | |
Tango Therapeutics, Inc. * | | |
Tarsus Pharmaceuticals, Inc. * | | |
Taysha Gene Therapies, Inc. * | | |
TCR2 Therapeutics, Inc. * | | |
Tenaya Therapeutics, Inc. * | | |
Terns Pharmaceuticals, Inc. * | | |
| | |
| | |
Theravance Biopharma, Inc. * | | |
Thermo Fisher Scientific, Inc. | | |
Theseus Pharmaceuticals, Inc. * | | |
Third Harmonic Bio, Inc. *(a) | | |
Tracon Pharmaceuticals, Inc. * | | |
Travere Therapeutics, Inc. * | | |
Trevi Therapeutics, Inc. * | | |
| | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
UNITY Biotechnology, Inc. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
Vaxxinity, Inc., Class A * | | |
| | |
Ventyx Biosciences, Inc. * | | |
| | |
Vera Therapeutics, Inc. * | | |
| | |
| | |
| | |
Verrica Pharmaceuticals, Inc. *(a) | | |
Vertex Pharmaceuticals, Inc. * | | |
Verve Therapeutics, Inc. * | | |
| | |
Vigil Neuroscience, Inc. * | | |
Viking Therapeutics, Inc. * | | |
Vir Biotechnology, Inc. * | | |
Viracta Therapeutics, Inc. * | | |
Viridian Therapeutics, Inc. * | | |
| | |
Voyager Therapeutics, Inc. * | | |
| | |
WaVe Life Sciences Ltd. * | | |
Werewolf Therapeutics, Inc. * | | |
West Pharmaceutical Services, Inc. | | |
X4 Pharmaceuticals, Inc. * | | |
| | |
| | |
Xeris Biopharma Holdings, Inc. * | | |
| | |
Zentalis Pharmaceuticals, Inc. * | | |
| | |
Zynerba Pharmaceuticals, Inc. * | | |
| | |
|
Real Estate Management & Development 0.2% |
Altisource Asset Management Corp. * | | |
Altisource Portfolio Solutions S.A. * | | |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
| | |
Cushman & Wakefield plc * | | |
DigitalBridge Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Jones Lang LaSalle, Inc. * | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Maui Land & Pineapple Co., Inc. * | | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
Rafael Holdings, Inc., Class B * | | |
RE/MAX Holdings, Inc., Class A | | |
| | |
Seritage Growth Properties, Class A * | | |
| | |
| | |
The Howard Hughes Corp. * | | |
The RMR Group, Inc., Class A | | |
| | |
Trinity Place Holdings, Inc. * | | |
Zillow Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 5.5% |
ACM Research, Inc., Class A * | | |
Advanced Micro Devices, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report89
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Allegro MicroSystems, Inc. * | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Everspin Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Kulicke & Soffa Industries, Inc. | | |
| | |
Lattice Semiconductor Corp. * | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
| | |
Monolithic Power Systems, Inc. | | |
Navitas Semiconductor Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rigetti Computing, Inc., Class A * | | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
SkyWater Technology, Inc. * | | |
| | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
Veeco Instruments, Inc. * | | |
| | |
| | |
|
Software & Services 10.7% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Akamai Technologies, Inc. * | | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
Altair Engineering, Inc., Class A * | | |
| | |
American Software, Inc., Class A | | |
Amplitude, Inc., Class A * | | |
| | |
Appfolio, Inc., Class A * | | |
| | |
AppLovin Corp., Class A * | | |
| | |
| | |
| | |
Atlassian Corp., Class A * | | |
| | |
| | |
| | |
Backblaze, Inc., Class A * | | |
Bentley Systems, Inc., Class B | | |
BigCommerce Holdings, Inc. * | | |
Bill.com Holdings, Inc. * | | |
| | |
| | |
| | |
Blend Labs, Inc., Class A * | | |
| | |
| | |
| | |
C3.ai, Inc., Class A *(a) | | |
Cadence Design Systems, Inc. * | | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
Clear Secure, Inc., Class A | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
Cloudflare, Inc., Class A * | | |
Cognizant Technology Solutions Corp., Class A | | |
CommVault Systems, Inc. * | | |
Computer Task Group, Inc. * | | |
Confluent, Inc., Class A * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
Crowdstrike Holdings, Inc., Class A * | | |
90Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Cyxtera Technologies, Inc. * | | |
| | |
DecisionPoint Systems, Inc. * | | |
| | |
| | |
DigitalOcean Holdings, Inc. * | | |
| | |
Dolby Laboratories, Inc., Class A | | |
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
E2open Parent Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Embark Technology, Inc. * | | |
Enfusion, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Expensify, Inc., Class A * | | |
| | |
| | |
| | |
ForgeRock, Inc., Class A * | | |
| | |
Freshworks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Grid Dynamics Holdings, Inc. * | | |
Guidewire Software, Inc. * | | |
HashiCorp, Inc., Class A * | | |
| | |
Informatica, Inc., Class A * | | |
Information Services Group, Inc. | | |
Instructure Holdings, Inc. * | | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
Marathon Digital Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
MicroStrategy, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Qualtrics International, Inc., Class A * | | |
| | |
Quantum Computing, Inc. * | | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
Riot Platforms, Inc. *(a) | | |
| | |
| | |
| | |
SecureWorks Corp., Class A * | | |
SEMrush Holdings, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
| | |
| | |
Smartsheet, Inc., Class A * | | |
Smith Micro Software, Inc. * | | |
Snowflake, Inc., Class A * | | |
| | |
SoundHound AI, Inc., Class A *(a) | | |
| | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * | | |
| | |
Squarespace, Inc., Class A * | | |
| | |
Synchronoss Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report91
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Viant Technology, Inc., Class A * | | |
| | |
| | |
Weave Communications, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 8.0% |
| | |
| | |
Advanced Energy Industries, Inc. | | |
Aeva Technologies, Inc. * | | |
| | |
| | |
Airspan Networks Holdings, Inc. * | | |
Akoustis Technologies, Inc. * | | |
Alpine 4 Holdings, Inc. * | | |
| | |
| | |
Applied Optoelectronics, Inc. * | | |
| | |
Arlo Technologies, Inc. * | | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Benchmark Electronics, Inc. | | |
Boxlight Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Coda Octopus Group, Inc. * | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Digi International, Inc. * | | |
| | |
| | |
| | |
| | |
Evolv Technologies Holdings, Inc. * | | |
| | |
| | |
| | |
FARO Technologies, Inc. * | | |
Focus Universal, Inc. *(a) | | |
Frequency Electronics, Inc. | | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
Kimball Electronics, Inc. * | | |
| | |
| | |
| | |
Lightwave Logic, Inc. *(a) | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
Methode Electronics, Inc. | | |
| | |
| | |
Mirion Technologies, Inc. * | | |
| | |
| | |
Napco Security Technologies, Inc. * | | |
National Instruments Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ondas Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Presto Automation, Inc. * | | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
92Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Research Frontiers, Inc. * | | |
| | |
Ribbon Communications, Inc. * | | |
Richardson Electronics Ltd/United States | | |
| | |
| | |
| | |
Seagate Technology Holdings plc | | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Teledyne Technologies, Inc. * | | |
TransAct Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
Vishay Precision Group, Inc. * | | |
| | |
Wayside Technology Group, Inc. | | |
| | |
Wireless Telecom Group, Inc. * | | |
Wrap Technologies, Inc. *(a) | | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 1.0% |
| | |
AST SpaceMobile, Inc. *(a) | | |
| | |
| | |
Bandwidth, Inc., Class A * | | |
Charge Enterprises, Inc. * | | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
| | |
Iridium Communications, Inc. | | |
KORE Group Holdings, Inc. * | | |
Liberty Global plc, Class A * | | |
Liberty Global plc, Class C * | | |
Liberty Latin America Ltd., Class A * | | |
Liberty Latin America Ltd., Class C * | | |
| | |
NII Holdings, Inc. Escrow *(c) | | |
| | |
Radius Global Infrastructure, Inc., Class A * | | |
Shenandoah Telecommunications Co. | | |
| | |
| | |
Telephone & Data Systems, Inc. | | |
| | |
| | |
United States Cellular Corp. * | | |
Verizon Communications, Inc. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
| | |
American Airlines Group, Inc. * | | |
| | |
Avis Budget Group, Inc. * | | |
Bird Global, Inc., Class A * | | |
Blade Air Mobility, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
Covenant Logistics Group, Inc. | | |
| | |
| | |
| | |
Eagle Bulk Shipping, Inc. | | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Frontier Group Holdings, Inc. * | | |
FTAI Infrastructure, Inc. | | |
Genco Shipping & Trading Ltd. | | |
| | |
Hawaiian Holdings, Inc. * | | |
| | |
Hertz Global Holdings, Inc. * | | |
Hub Group, Inc., Class A * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
P.A.M. Transportation Services, Inc. * | | |
Pangaea Logistics Solutions Ltd. | | |
Radiant Logistics, Inc. * | | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
| | |
Sun Country Airlines Holdings, Inc. * | | |
Uber Technologies, Inc. * | | |
| | |
U-Haul Holding Co. - Non Voting | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
Universal Logistics Holdings, Inc. | | |
US Xpress Enterprises, Inc., Class A * | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report93
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
American Electric Power Co., Inc. | | |
American States Water Co. | | |
American Water Works Co., Inc. | | |
Artesian Resources Corp., Class A | | |
| | |
| | |
| | |
| | |
| | |
California Water Service Group | | |
| | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class A | | |
Clearway Energy, Inc., Class C | | |
| | |
Consolidated Edison, Inc. | | |
Consolidated Water Co., Ltd. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Genie Energy Ltd., Class B | | |
Global Water Resources, Inc. | | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
| | |
Montauk Renewables, Inc. * | | |
| | |
New Jersey Resources Corp. | | |
| | |
| | |
Northwest Natural Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
Spruce Power Holding Corp. * | | |
| | |
Sunnova Energy International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $9,650,261,464) | |
|
PREFERRED STOCKS 0.0% OF NET ASSETS |
|
|
| | |
Total Preferred Stocks
(Cost $529) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
Pharmaceuticals, Biotechnology & Life Sciences 0.0% |
Aduro Biotech, Inc. CVR *(c) | | |
Carisma Therapeutics, Inc. CVR *(c) | | |
F-star Therapeutics, Inc. Agonist CVR *(c) | | |
F-star Therapeutics, Inc. Antagonist CVR *(c) | | |
| | |
| | |
Total Rights
(Cost $3,686) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (e)(f) | | |
Total Short-Term Investments
(Cost $30,743,334) | |
Total Investments in Securities
(Cost $9,681,009,013) | |
94Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
(DEPRECIATION)
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/16/23 | | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
Net Unrealized Appreciation | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $29,250,234. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Health Care Equipment & Services | | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
Telecommunication Services | | | | |
| | | | |
| | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report95
Schwab Total Stock Market Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $24,850,160) | | |
Investments in securities, at value - unaffiliated (cost $9,656,158,853) including securities on loan of $29,250,234 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
96Schwab Equity Index Funds | Semiannual Report
Schwab Total Stock Market Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $37,125) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
Schwab Equity Index Funds | Semiannual Report97
Schwab Total Stock Market Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
98Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| 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. |
| |
| |
| Ratio includes less than 0.0005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 10/31/19 is a blended ratio. |
| The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio. |
Schwab Equity Index Funds | Semiannual Report99
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 2.2% |
| | |
| | |
| | |
| | |
|
|
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
|
|
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
Armstrong World Industries, Inc. | | |
| | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
|
Commercial & Professional Services 2.0% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
Broadridge Financial Solutions, Inc. | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
Ritchie Bros Auctioneers, Inc. | | |
Robert Half International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 7.8% |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
100Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.3% |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Planet Fitness, Inc., Class A * | | |
Six Flags Entertainment Corp. * | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
BJ's Wholesale Club Holdings, Inc. * | | |
| | |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
Performance Food Group Co. * | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
Occidental Petroleum Corp. | | |
| | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 1.4% |
| | |
Apartment Income REIT Corp. | | |
| | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
Extra Space Storage, Inc. | | |
| | |
Lamar Advertising Co., Class A | | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
|
|
| | |
Ameriprise Financial, Inc. | | |
Apollo Global Management, Inc. | | |
Ares Management Corp., Class A | | |
| | |
| | |
Credit Acceptance Corp. * | | |
Euronet Worldwide, Inc. * | | |
FactSet Research Systems, Inc. | | |
| | |
FleetCor Technologies, Inc. * | | |
Jack Henry & Associates, Inc. | | |
Schwab Equity Index Funds | Semiannual Report101
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
Rocket Cos., Inc., Class A *(a) | | |
Shift4 Payments, Inc., Class A * | | |
The Charles Schwab Corp. (b) | | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
Upstart Holdings, Inc. *(a) | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.6% |
Brown-Forman Corp., Class A | | |
Brown-Forman Corp., Class B | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
| | |
| | |
The Boston Beer Co., Inc., Class A * | | |
| | |
| | |
| | |
|
Health Care Equipment & Services 5.3% |
| | |
| | |
| | |
| | |
Baxter International, Inc. | | |
| | |
| | |
| | |
| | |
Definitive Healthcare Corp. * | | |
| | |
Doximity, Inc., Class A * | | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
|
Household & Personal Products 1.6% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
The Estee Lauder Cos., Inc., Class A | | |
| | |
| | |
|
|
| | |
Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
| | |
| | |
Erie Indemnity Co., Class A | | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
RenaissanceRe Holdings Ltd. | | |
Ryan Specialty Holdings, Inc., Class A * | | |
| | |
| | |
|
|
| | |
Ardagh Metal Packaging S.A. | | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. * | | |
Graphic Packaging Holding Co. | | |
| | |
| | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Scotts Miracle-Gro Co. | | |
| | |
| | |
| | |
|
102Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Media & Entertainment 7.3% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Liberty Media Corp. - Liberty SiriusXM, Class A * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. | | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
Nexstar Media Group, Inc., Class A | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Spotify Technology S.A. * | | |
Take-Two Interactive Software, Inc. * | | |
The Trade Desk, Inc., Class A * | | |
| | |
| | |
Warner Bros Discovery, Inc. * | | |
World Wrestling Entertainment, Inc., Class A | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.7% |
10X Genomics, Inc., Class A * | | |
| | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
| | |
Horizon Therapeutics plc * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Sarepta Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
Ultragenyx Pharmaceutical, Inc. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
CBRE Group, Inc., Class A * | | |
Opendoor Technologies, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 8.3% |
Advanced Micro Devices, Inc. * | | |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Software & Services 19.2% |
| | |
| | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report103
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
Procore Technologies, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
| | |
SentinelOne, Inc., Class A * | | |
| | |
Smartsheet, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 13.8% |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
| | |
Keysight Technologies, Inc. * | | |
National Instruments Corp. | | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
|
C.H. Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
Uber Technologies, Inc. * | | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $838,243,004) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell 1000 Growth ETF | | |
Total Investment Companies
(Cost $1,031,060) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $3,174,731) | |
Total Investments in Securities
(Cost $842,448,795) | |
104Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 1000 Growth Index, e-mini, expires 06/16/23 | | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
Net Unrealized Appreciation | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $714,099. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the
underlying securities held by the underlying mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
Schwab Equity Index Funds | Semiannual Report105
Schwab U.S. Large-Cap Growth Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $3,012,549) | | |
Investments in securities, at value - unaffiliated (cost $839,436,246) including securities on loan of $714,099 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
106Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Growth Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $66) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Equity Index Funds | Semiannual Report107
Schwab U.S. Large-Cap Growth Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
108Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.0005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.035%. The ratio presented for period ended 10/31/19 is a blended ratio. |
| The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Equity Index Funds | Semiannual Report109
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 0.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
The PNC Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
Armstrong World Industries, Inc. | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
| | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Gates Industrial Corp. plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Honeywell International, Inc. | | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Johnson Controls International plc | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
110Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raytheon Technologies Corp. | | |
| | |
Rockwell Automation, Inc. | | |
Sensata Technologies Holding plc | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A | | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.1% |
Automatic Data Processing, Inc. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ritchie Bros Auctioneers, Inc. | | |
Robert Half International, Inc. | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 1.8% |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 1.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Under Armour, Inc., Class A * | | |
Under Armour, Inc., Class C * | | |
| | |
Schwab Equity Index Funds | Semiannual Report111
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A * | | |
| | |
Marriott Vacations Worldwide Corp. | | |
| | |
MGM Resorts International | | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
Six Flags Entertainment Corp. * | | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.9% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
Grocery Outlet Holding Corp. * | | |
Performance Food Group Co. * | | |
| | |
| | |
U.S. Foods Holding Corp. * | | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 4.3% |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
| | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
EastGroup Properties, Inc. | | |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Hudson Pacific Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Medical Properties Trust, Inc. | | |
Mid-America Apartment Communities, Inc. | | |
National Retail Properties, Inc. | | |
National Storage Affiliates Trust | | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
112Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
Simon Property Group, Inc. | | |
| | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
| | |
Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
| | |
Coinbase Global, Inc., Class A *(a) | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Intercontinental Exchange, Inc. | | |
| | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A *(a) | | |
| | |
| | |
| | |
SoFi Technologies, Inc. * | | |
| | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
The Bank of New York Mellon Corp. | | |
| | |
The Charles Schwab Corp. (c) | | |
The Goldman Sachs Group, Inc. | | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 4.3% |
| | |
Archer-Daniels-Midland Co. | | |
Brown-Forman Corp., Class A | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
| | |
The Boston Beer Co., Inc., Class A * | | |
| | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 6.6% |
| | |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report113
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Definitive Healthcare Corp. * | | |
| | |
Doximity, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
Oak Street Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 1.5% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
| | |
| | |
|
|
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
| | |
The Hanover Insurance Group, Inc. | | |
The Hartford Financial Services Group, Inc. | | |
| | |
| | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
Air Products & Chemicals, Inc. | | |
| | |
| | |
| | |
| | |
Ardagh Metal Packaging S.A. | | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
114Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Reliance Steel & Aluminum Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Scotts Miracle-Gro Co. | | |
United States Steel Corp. | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 6.7% |
Activision Blizzard, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Altice USA, Inc., Class A * | | |
AMC Entertainment Holdings, Inc., Class A (a) | | |
| | |
| | |
DISH Network Corp., Class A * | | |
| | |
| | |
| | |
| | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Formula One, Class A * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Liberty Media Corp. - Liberty SiriusXM, Class A * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. | | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class A | | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
Take-Two Interactive Software, Inc. * | | |
The Interpublic Group of Cos., Inc. | | |
The New York Times Co., Class A | | |
| | |
| | |
Warner Bros Discovery, Inc. * | | |
| | |
|
| | |
Pharmaceuticals, Biotechnology & Life Sciences 9.8% |
10X Genomics, Inc., Class A * | | |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
| | |
| | |
Horizon Therapeutics plc * | | |
| | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
Jazz Pharmaceuticals plc * | | |
| | |
| | |
Mirati Therapeutics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Royalty Pharma plc, Class A | | |
| | |
Thermo Fisher Scientific, Inc. | | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
|
Real Estate Management & Development 0.2% |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
Opendoor Technologies, Inc. * | | |
The Howard Hughes Corp. * | | |
| | |
Zillow Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.4% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
Schwab Equity Index Funds | Semiannual Report115
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
| | |
Bill.com Holdings, Inc. * | | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
Informatica, Inc., Class A * | | |
International Business Machines Corp. | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Procore Technologies, Inc. * | | |
| | |
| | |
SentinelOne, Inc., Class A * | | |
Snowflake, Inc., Class A * | | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 2.4% |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
National Instruments Corp. | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
Telecommunication Services 2.0% |
| | |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
Avis Budget Group, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
Copa Holdings S.A., Class A | | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
Uber Technologies, Inc. * | | |
| | |
U-Haul Holding Co. - Non Voting | | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
| | |
|
|
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
Brookfield Renewable Corp., Class A | | |
| | |
116Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $506,745,151) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell 1000 Value ETF | | |
Total Investment Companies
(Cost $677,077) | |
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $2,696,354) | |
Total Investments in Securities
(Cost $510,118,582) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
Russell 1000 Value Index, e-mini, expires 06/16/23 | | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
Net Unrealized Appreciation | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $874,904. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
Schwab Equity Index Funds | Semiannual Report117
Schwab U.S. Large-Cap Value Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.2% OF NET ASSETS |
|
|
| | | | | | | | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the
underlying securities held by the underlying mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
118Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $945,685) | | |
Investments in securities, at value - unaffiliated (cost $509,172,897) including securities on loan of $874,904 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Variation margin on future contracts | | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report119
Schwab U.S. Large-Cap Value Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $961) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
120Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Large-Cap Value Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report121
Schwab U.S. Mid-Cap Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Effective December 20, 2018, the annual operating expense ratio was reduced to 0.04%. The ratio presented for period ended 10/31/19 is a blended ratio. |
| The investment adviser voluntarily agreed to waive the fund’s management fees to 0.00% beginning with the fund’s commencement of operations through June 30, 2018. The ratio presented for period ended 10/31/18 is a blended ratio. |
| Portfolio turnover rate excludes in-kind transactions. |
122Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.6% OF NET ASSETS |
|
Automobiles & Components 0.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * | | |
| | |
| | |
|
|
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
| | |
| | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
| | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
Armstrong World Industries, Inc. | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
| | |
ChargePoint Holdings, Inc. *(a) | | |
Core & Main, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Gates Industrial Corp. plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
Sensata Technologies Holding plc | | |
SiteOne Landscape Supply, Inc. * | | |
| | |
Spirit AeroSystems Holdings, Inc., Class A | | |
Schwab Equity Index Funds | Semiannual Report123
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Stanley Black & Decker, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
| | |
|
Commercial & Professional Services 4.5% |
Booz Allen Hamilton Holding Corp. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Driven Brands Holdings, Inc. * | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
Ritchie Bros Auctioneers, Inc. | | |
Robert Half International, Inc. | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 4.5% |
| | |
| | |
| | |
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
GameStop Corp., Class A *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
Petco Health & Wellness Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Victoria's Secret & Co. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 3.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Under Armour, Inc., Class A * | | |
Under Armour, Inc., Class C * | | |
| | |
| | |
124Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Bright Horizons Family Solutions, Inc. * | | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. | | |
| | |
| | |
| | |
DoorDash, Inc., Class A * | | |
DraftKings, Inc., Class A * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A * | | |
| | |
Marriott Vacations Worldwide Corp. | | |
MGM Resorts International | | |
| | |
Norwegian Cruise Line Holdings Ltd. * | | |
Penn Entertainment, Inc. * | | |
Planet Fitness, Inc., Class A * | | |
Royal Caribbean Cruises Ltd. * | | |
Service Corp. International | | |
Six Flags Entertainment Corp. * | | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 1.1% |
Albertsons Cos., Inc., Class A | | |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
| | |
Grocery Outlet Holding Corp. * | | |
Performance Food Group Co. * | | |
| | |
U.S. Foods Holding Corp. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Southwestern Energy Co. * | | |
| | |
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 6.9% |
Alexandria Real Estate Equities, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
AvalonBay Communities, Inc. | | |
| | |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
| | |
EastGroup Properties, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthcare Realty Trust, Inc. | | |
Healthpeak Properties, Inc. | | |
Highwoods Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Hudson Pacific Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lamar Advertising Co., Class A | | |
| | |
Medical Properties Trust, Inc. | | |
Mid-America Apartment Communities, Inc. | | |
National Retail Properties, Inc. | | |
National Storage Affiliates Trust | | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
| | |
Simon Property Group, Inc. | | |
SL Green Realty Corp. (a) | | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report125
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Affiliated Managers Group, Inc. | | |
| | |
| | |
| | |
Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Ares Management Corp., Class A | | |
| | |
Cboe Global Markets, Inc. | | |
Coinbase Global, Inc., Class A *(a) | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
Discover Financial Services | | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
FactSet Research Systems, Inc. | | |
FleetCor Technologies, Inc. * | | |
| | |
| | |
Interactive Brokers Group, Inc., Class A | | |
| | |
Jack Henry & Associates, Inc. | | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
Rocket Cos., Inc., Class A *(a) | | |
| | |
Shift4 Payments, Inc., Class A * | | |
| | |
SoFi Technologies, Inc. * | | |
Starwood Property Trust, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
The Bank of New York Mellon Corp. | | |
| | |
| | |
| | |
Tradeweb Markets, Inc., Class A | | |
Upstart Holdings, Inc. *(a) | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 2.5% |
Brown-Forman Corp., Class A | | |
Brown-Forman Corp., Class B | | |
| | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
The Boston Beer Co., Inc., Class A * | | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
|
Health Care Equipment & Services 5.6% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Definitive Healthcare Corp. * | | |
| | |
| | |
Doximity, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Laboratory Corp. of America Holdings | | |
| | |
Molina Healthcare, Inc. * | | |
| | |
Oak Street Health, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
126Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Tandem Diabetes Care, Inc. * | | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
Zimmer Biomet Holdings, Inc. | | |
| | |
|
Household & Personal Products 0.6% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
| | |
|
|
| | |
American Financial Group, Inc. | | |
Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
Cincinnati Financial Corp. | | |
| | |
Erie Indemnity Co., Class A | | |
| | |
F&G Annuities & Life, Inc. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
Old Republic International Corp. | | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
Ryan Specialty Holdings, Inc., Class A * | | |
| | |
The Hanover Insurance Group, Inc. | | |
The Hartford Financial Services Group, Inc. | | |
| | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Ardagh Metal Packaging S.A. | | |
| | |
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ginkgo Bioworks Holdings, Inc. *(a) | | |
Graphic Packaging Holding Co. | | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
Reliance Steel & Aluminum Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Scotts Miracle-Gro Co. | | |
United States Steel Corp. | | |
| | |
| | |
| | |
| | |
|
Media & Entertainment 3.5% |
Altice USA, Inc., Class A * | | |
AMC Entertainment Holdings, Inc., Class A (a) | | |
| | |
DISH Network Corp., Class A * | | |
| | |
| | |
| | |
| | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Formula One, Class A * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Liberty Media Corp. - Liberty SiriusXM, Class A * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Live Nation Entertainment, Inc. * | | |
Schwab Equity Index Funds | Semiannual Report127
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Madison Square Garden Sports Corp. | | |
| | |
| | |
| | |
Nexstar Media Group, Inc., Class A | | |
| | |
Paramount Global, Class A | | |
Paramount Global, Class B | | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Sirius XM Holdings, Inc. (a) | | |
Spotify Technology S.A. * | | |
Take-Two Interactive Software, Inc. * | | |
The Interpublic Group of Cos., Inc. | | |
The New York Times Co., Class A | | |
The Trade Desk, Inc., Class A * | | |
| | |
Warner Bros Discovery, Inc. * | | |
World Wrestling Entertainment, Inc., Class A | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 5.5% |
10X Genomics, Inc., Class A * | | |
Agilent Technologies, Inc. | | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Elanco Animal Health, Inc. * | | |
| | |
| | |
Horizon Therapeutics plc * | | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Jazz Pharmaceuticals plc * | | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
Mettler-Toledo International, Inc. * | | |
Mirati Therapeutics, Inc. * | | |
| | |
Neurocrine Biosciences, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Royalty Pharma plc, Class A | | |
Sarepta Therapeutics, Inc. * | | |
| | |
| | |
| | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
| | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
|
Real Estate Management & Development 0.5% |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
Opendoor Technologies, Inc. * | | |
The Howard Hughes Corp. * | | |
WeWork, Inc., Class A *(a) | | |
Zillow Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.3% |
Allegro MicroSystems, Inc. * | | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
Lattice Semiconductor Corp. * | | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Akamai Technologies, Inc. * | | |
| | |
| | |
| | |
AppLovin Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
Bill.com Holdings, Inc. * | | |
| | |
Cadence Design Systems, Inc. * | | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Confluent, Inc., Class A * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
128Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Informatica, Inc., Class A * | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
| | |
Procore Technologies, Inc. * | | |
| | |
RingCentral, Inc., Class A * | | |
SentinelOne, Inc., Class A * | | |
Smartsheet, Inc., Class A * | | |
| | |
| | |
| | |
Thoughtworks Holding, Inc. * | | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 4.5% |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Dell Technologies, Inc., Class C | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Lumentum Holdings, Inc. * | | |
| | |
National Instruments Corp. | | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
|
| | |
Telecommunication Services 0.1% |
Frontier Communications Parent, Inc. * | | |
| | |
| | |
|
|
| | |
American Airlines Group, Inc. * | | |
Avis Budget Group, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
Copa Holdings S.A., Class A | | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
Hertz Global Holdings, Inc. * | | |
JB Hunt Transport Services, Inc. | | |
| | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
U-Haul Holding Co. - Non Voting | | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
|
| | |
| | |
American Water Works Co., Inc. | | |
| | |
| | |
Brookfield Renewable Corp., Class A | | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
Essential Utilities, Inc. | | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
Schwab Equity Index Funds | Semiannual Report129
Schwab U.S. Mid-Cap Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $923,051,161) | |
|
INVESTMENT COMPANIES 0.1% OF NET ASSETS |
|
|
iShares Russell Mid-Cap ETF | | |
Total Investment Companies
(Cost $870,911) | |
| | |
SHORT-TERM INVESTMENTS 0.7% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $7,187,586) | |
Total Investments in Securities
(Cost $931,109,658) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
S&P 400 Mid-Cap Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $4,486,170. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the
underlying securities held by the underlying mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
130Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $931,109,658) including securities on loan of $4,486,170 | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report131
Schwab U.S. Mid-Cap Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $2,939) | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized losses on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
132Schwab Equity Index Funds | Semiannual Report
Schwab U.S. Mid-Cap Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Equity Index Funds | Semiannual Report133
Schwab International Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
134Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.5% OF NET ASSETS |
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Commonwealth Bank of Australia | | |
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Fortescue Metals Group Ltd. | | |
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Insurance Australia Group Ltd. | | |
James Hardie Industries plc | | |
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National Australia Bank Ltd. | | |
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Northern Star Resources Ltd. | | |
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Treasury Wine Estates Ltd. | | |
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Washington H Soul Pattinson & Co., Ltd. | | |
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Woodside Energy Group Ltd. | | |
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Anheuser-Busch InBev S.A./N.V. | | |
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Groupe Bruxelles Lambert N.V. | | |
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AP Moller - Maersk A/S, Class A | | |
AP Moller - Maersk A/S, Class B | | |
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Novo Nordisk A/S, Class B | | |
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Vestas Wind Systems A/S * | | |
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Schwab Equity Index Funds | Semiannual Report135
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Cie Generale des Etablissements Michelin S.C.A. | | |
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La Francaise des Jeux SAEM | | |
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LVMH Moet Hennessy Louis Vuitton SE | | |
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Unibail-Rodamco-Westfield * | | |
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Veolia Environnement S.A. | | |
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Bayerische Motoren Werke AG | | |
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Carl Zeiss Meditec AG, Class B | | |
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Daimler Truck Holding AG * | | |
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Fresenius Medical Care AG & Co. KGaA | | |
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Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen * | | |
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Telefonica Deutschland Holding AG | | |
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136Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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BOC Hong Kong Holdings Ltd. | | |
Budweiser Brewing Co. APAC Ltd. | | |
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CK Hutchison Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
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Futu Holdings Ltd., ADR * | | |
Galaxy Entertainment Group Ltd. * | | |
Hang Lung Properties Ltd. | | |
| | |
Henderson Land Development Co., Ltd. | | |
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Hong Kong & China Gas Co., Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
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New World Development Co., Ltd. | | |
Power Assets Holdings Ltd. | | |
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SITC International Holdings Co., Ltd. | | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
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Techtronic Industries Co., Ltd. | | |
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Wharf Real Estate Investment Co., Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
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|
|
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Bank of Ireland Group plc | | |
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Flutter Entertainment plc * | | |
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Bank Leumi Le-Israel B.M. | | |
Bezeq The Israeli Telecommunication Corp., Ltd. | | |
Check Point Software Technologies Ltd. * | | |
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Israel Discount Bank Ltd., A Shares | | |
Mizrahi Tefahot Bank Ltd. | | |
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Teva Pharmaceutical Industries Ltd. ADR, ADR * | | |
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The First International Bank of Israel Ltd. | | |
Tower Semiconductor Ltd. * | | |
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|
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Assicurazioni Generali S.p.A. | | |
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Davide Campari-Milano N.V. | | |
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FinecoBank Banca Fineco S.p.A. | | |
Infrastrutture Wireless Italiane S.p.A. | | |
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Mediobanca Banca di Credito Finanziario S.p.A. | | |
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Recordati Industria Chimica e Farmaceutica S.p.A. | | |
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Terna - Rete Elettrica Nazionale | | |
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Asahi Group Holdings Ltd. | | |
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Bandai Namco Holdings, Inc. | | |
BayCurrent Consulting, Inc. | | |
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Central Japan Railway Co. | | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co., Ltd. | | |
Concordia Financial Group Ltd. | | |
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Dai Nippon Printing Co., Ltd. | | |
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Dai-ichi Life Holdings, Inc. | | |
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| | |
Daito Trust Construction Co., Ltd. | | |
Daiwa House Industry Co., Ltd. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Securities Group, Inc. | | |
Schwab Equity Index Funds | Semiannual Report137
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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GMO Payment Gateway, Inc. | | |
Hakuhodo DY Holdings, Inc. | | |
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Hankyu Hanshin Holdings, Inc. | | |
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Hirose Electric Co., Ltd. | | |
Hitachi Construction Machinery Co., Ltd. | | |
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Iida Group Holdings Co., Ltd. | | |
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Itochu Techno-Solutions Corp. | | |
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Japan Exchange Group, Inc. | | |
Japan Metropolitan Fund Invest | | |
Japan Post Bank Co., Ltd. | | |
Japan Post Holdings Co., Ltd. | | |
Japan Post Insurance Co., Ltd. | | |
Japan Real Estate Investment Corp. | | |
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Keisei Electric Railway Co., Ltd. | | |
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Kintetsu Group Holdings Co., Ltd. | | |
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Kobayashi Pharmaceutical Co., Ltd. | | |
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Koei Tecmo Holdings Co., Ltd. | | |
Koito Manufacturing Co., Ltd. | | |
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Kurita Water Industries Ltd. | | |
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McDonald's Holdings Co., Japan Ltd. | | |
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Mitsubishi Chemical Group Corp. | | |
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Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co., Ltd. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
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Mizuho Financial Group, Inc. | | |
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MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co., Ltd. | | |
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Nihon M&A Center Holdings, Inc. | | |
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Nippon Building Fund, Inc. | | |
Nippon Express Holdings, Inc. | | |
Nippon Paint Holdings Co., Ltd. | | |
Nippon Prologis REIT, Inc. | | |
Nippon Sanso Holdings Corp. | | |
Nippon Shinyaku Co., Ltd. | | |
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Nippon Telegraph & Telephone Corp. | | |
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Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co., Ltd. | | |
Nitori Holdings Co., Ltd. | | |
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Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc. | | |
Nomura Research Institute Ltd. | | |
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Odakyu Electric Railway Co., Ltd. | | |
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Ono Pharmaceutical Co., Ltd. | | |
Open House Group Co., Ltd. | | |
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Otsuka Holdings Co., Ltd. | | |
Pan Pacific International Holdings Corp. | | |
| | |
Persol Holdings Co., Ltd. | | |
| | |
Recruit Holdings Co., Ltd. | | |
Renesas Electronics Corp. * | | |
138Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Sekisui Chemical Co., Ltd. | | |
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Seven & i Holdings Co., Ltd. | | |
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Shin-Etsu Chemical Co., Ltd. | | |
| | |
| | |
Shizuoka Financial Group, Inc. | | |
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| | |
| | |
| | |
| | |
Square Enix Holdings Co., Ltd. | | |
| | |
| | |
Sumitomo Chemical Co., Ltd. | | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Metal Mining Co., Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Realty & Development Co., Ltd. | | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
The Kansai Electric Power Co., Inc. | | |
| | |
| | |
| | |
Tokio Marine Holdings, Inc. | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
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Welcia Holdings Co., Ltd. | | |
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Yamato Holdings Co., Ltd. | | |
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BNP Paribas Emissions- und Handelsgesellschaft mbH | | |
Coca-Cola Europacific Partners plc | | |
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| | |
Just Eat Takeaway.com N.V * | | |
Koninklijke Ahold Delhaize N.V. | | |
| | |
| | |
| | |
| | |
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| | |
Universal Music Group N.V. | | |
| | |
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|
|
Auckland International Airport Ltd. * | | |
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Fisher & Paykel Healthcare Corp., Ltd. | | |
| | |
| | |
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|
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| | |
Gjensidige Forsikring A.S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Yara International A.S.A. | | |
| | |
|
Schwab Equity Index Funds | Semiannual Report139
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
|
EDP - Energias de Portugal S.A. | | |
| | |
| | |
Jeronimo Martins, SGPS, S.A. | | |
| | |
|
|
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
Capitaland Investment Ltd. | | |
| | |
| | |
| | |
Grab Holdings Ltd., Class A * | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
Oversea-Chinese Banking Corp., Ltd. | | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
ACS, Actividades de Construccion y Servicios S.A. | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria S.A. | | |
| | |
| | |
| | |
Corp. ACCIONA Energias Renovables S.A. * | | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil S.A. | | |
Naturgy Energy Group S.A. | | |
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Fastighets AB Balder, B Shares * | | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
L E Lundbergfortagen AB, B Shares | | |
| | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, A Shares | | |
| | |
| | |
Svenska Cellulosa AB, S.C.A., B Shares | | |
Svenska Handelsbanken AB, A Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
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Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
Volvo Car AB, B Shares *(a) | | |
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|
|
| | |
| | |
| | |
Bachem Holding AG, Class B | | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont S.A., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
140Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Kuehne & Nagel International AG (a) | | |
Logitech International S.A. | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Swatch Group AG, Bearer Shares | | |
| | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
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| | |
Associated British Foods plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings plc | | |
| | |
British American Tobacco plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals plc | | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group plc | | |
Legal & General Group plc | | |
| | |
London Stock Exchange Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings plc | | |
| | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
Rolls-Royce Holdings plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering plc | | |
| | |
| | |
| | |
| | |
| | |
The British Land Co., plc | | |
| | |
| | |
United Utilities Group plc | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $6,493,131,662) | |
|
PREFERRED STOCKS 0.5% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
Porsche Automobil Holding SE | | |
| | |
| | |
| | |
Total Preferred Stocks
(Cost $40,178,344) | |
Schwab Equity Index Funds | Semiannual Report141
Schwab International Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 0.4% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
Total Short-Term Investments
(Cost $39,710,223) | |
Total Investments in Securities
(Cost $6,573,020,229) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $36,891,342. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| Global Depositary Receipt |
| Real Estate Investment Trust |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are valued at unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
142Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $6,573,020,229) including securities on loan of $36,891,342 | | |
| | |
Foreign currency, at value (cost $6,966,461) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Equity Index Funds | Semiannual Report143
Schwab International Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $15,639,535) | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
144Schwab Equity Index Funds | Semiannual Report
Schwab International Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
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Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
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DISTRIBUTIONS TO SHAREHOLDERS |
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TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
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SHARES OUTSTANDING AND NET ASSETS |
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Total increase (decrease) | | | | | |
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Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust, except Schwab 1000 Index Fund, which is a series of Schwab Investments. Both Schwab Capital Trust and Schwab Investments (the trusts) are no-load, open-end management investment companies. Each 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 trusts as of the end of the period, including the funds discussed in this report, which are highlighted:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
Schwab S&P 500 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 Fundamental US Large Company Index Fund |
Schwab International Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Large Company Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental International Small Company Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
Schwab International Opportunities Fund | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity Fund | Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
| Schwab Target 2055 Index Fund |
| Schwab Target 2060 Index Fund |
| Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
| |
SCHWAB INVESTMENTS (ORGANIZED OCTOBER 26, 1990) |
| Schwab Tax-Free Bond Fund |
Schwab Treasury Inflation Protected Securities Index Fund | Schwab California Tax-Free Bond Fund |
Schwab U.S. Aggregate Bond Index Fund | Schwab Opportunistic Municipal Bond Fund |
Schwab Short-Term Bond Index Fund | Schwab Global Real Estate Fund |
Each fund in this report offers one share class. 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The funds may invest in certain mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
• Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s 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 investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
• 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. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a 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.
The levels associated with valuing the funds’ investments as of April 30, 2023 are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trusts’ Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2023, 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 and Schwab International Index Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2023, if any, are disclosed in each fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced new measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab International Index Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in each fund’s Statement of Operations, if any. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab International Index Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab International Index Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2023, the Schwab International Index Fund did not incur any compliance fees.
(e) Expenses:
Pursuant to an Amended and Restated Investment Advisory and Administration Agreement (Advisory Agreement) between the investment adviser and each trust, the investment adviser pays the operating expenses of each fund, excluding acquired fund fees and expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and 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 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) Foreign Taxes:
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2023, if any, are reflected in each fund’s Statement of Assets and Liabilities.
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Schwab Equity Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(j) 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.
(k) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the funds may involve certain risks, as discussed in the funds’ prospectuses, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of a fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
Sampling Index Tracking Risk. To the extent a fund uses sampling techniques, a fund will not fully replicate its index and may hold securities not included in the index. As a result, a fund will be subject to the risk that the investment adviser’s investment strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund utilizes a sampling approach, it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Concentration Risk. To the extent that a fund’s or its respective index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, the fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Growth Investing Risk. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Value Investing Risk. Certain funds emphasize a “value” style of investing, which targets undervalued companies with characteristics for improved valuations. This style of investing is subject to the risk that the valuations never improve or that the returns on “value” securities may not move in tandem with the returns on other styles of investing or the stock market in general.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities also include American Depositary Receipts, Global Depositary Receipts (GDRs) and European Depositary Receipts, which may be less liquid than the underlying shares in their primary trading market, and GDRs, in particular, many of which are issued by companies in emerging markets, may be more volatile. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Derivatives Risk. A fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are futures and options on futures. An option is the right to buy or sell an instrument at a specific price before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, credit risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility and cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
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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 each fund’s investment adviser and administrator pursuant to an Advisory Agreement between the investment adviser and each trust.
For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
| | 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 |
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Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2023, as applicable:
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| | SCHWAB SMALL-CAP INDEX FUND | SCHWAB U.S. LARGE-CAP GROWTH INDEX FUND | SCHWAB U.S. MID-CAP INDEX FUND | SCHWAB INTERNATIONAL INDEX FUND |
Schwab MarketTrack All Equity Portfolio | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | |
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| | | | | |
| | | | | |
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine fees. The investment adviser agreed to pay these professional fees, on behalf of the Schwab International Index Fund, subject to reimbursement by the fund to the extent the fund is able to successfully recover taxes withheld in the future.
For the period ended April 30, 2023, the professional fees incurred by the Schwab International Index Fund and paid by the investment adviser were $1,994, as shown as Professional fees in the fund’s Statement of Operations.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
For the period ended April 30, 2023, the Schwab International Index Fund recovered previously withheld foreign taxes from Sweden. The payments received by Schwab International Index Fund amounted to $489,800 and is recorded as Dividends received from securities — unaffiliated in the Statement of Operations. The investment adviser paid upfront professional fees associated with recovering these foreign taxes in the amount of $19,449, which has been reimbursed to the investment adviser by the Schwab International Index Fund and is recorded as Dividends received from securities — unaffiliated in the fund’s Statement of Operations.
As of April 30, 2023, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the Schwab International Index Fund to the investment adviser was $0.
No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
Interfund Transactions
The funds may engage in direct transactions with certain other funds in the Fund Complex 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 April 30, 2023, 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:
| | | |
Schwab S&P 500 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 | | | |
| | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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 trusts were in compliance with these limitations throughout the report period. The funds do not pay any interested or non-interested (independent trustees) trustees. The independent trustees are paid by the investment adviser. 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds’ proportionate share of the unused portion of the Syndicated Credit Facility.
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Financial Notes, unaudited (continued)
6. Borrowing from Banks (continued):
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 28, 2023. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds 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 paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Derivatives:The funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2023, if any, are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts are presented in the Statement of Operations, if any. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2023, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
| | |
Schwab S&P 500 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 | | |
8. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
| | |
Schwab S&P 500 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 | | |
During the period ended April 30, 2023, the following funds had transactions in connection with in-kind transactions:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
| | |
Schwab Small-Cap Index Fund | | |
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Financial Notes, unaudited (continued)
8. Purchases and Sales of Investment Securities (continued):
For the period ended April 30, 2023, where applicable, the funds realized net capital gains or losses resulting from in-kind redemptions. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses on sales of in-kind redemptions for the period ended April 30, 2023, are disclosed in the funds’ Statements of Operations, if any.
9. Federal Income Taxes:As of April 30, 2023, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab S&P 500 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 | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2022, the funds had capital loss carryforwards available as follows:
| |
Schwab S&P 500 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 | |
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab S&P 500 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 | | |
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Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
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 in 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 October 31, 2022, 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 each fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the funds did not incur any interest or penalties.
10. 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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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust and Schwab Investments, 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 106 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.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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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 | |
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). | | |
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). | | |
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|
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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
|
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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
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.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 1000 Value Index An index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell Midcap Index An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
Schwab 1000 Index A float-adjusted market capitalization weighted index developed by Charles Schwab & Co., Inc. that represents the performance of the largest 1,000 publicly traded companies in the United States. As a result of corporate actions, the index may be comprised of more or less than 1,000 securities.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab Active 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 Active Equity Funds
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
1Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Core Equity Fund (Ticker Symbol: SWANX) | |
| |
Fund Category: Morningstar Large Blend1 | |
| |
| |
Schwab Dividend Equity Fund2 (Ticker Symbol: SWDSX) | |
Russell 1000® Value Index | |
Fund Category: Morningstar Large Value1 | |
| |
| |
Schwab Large-Cap Growth Fund (Ticker Symbol: SWLSX) | |
Russell 1000® Growth Index | |
Fund Category: Morningstar Large Growth1 | |
| |
| |
Schwab Small-Cap Equity Fund (Ticker Symbol: SWSCX) | |
| |
Fund Category: Morningstar Small Blend1 | |
| |
| |
Schwab Health Care Fund2 (Ticker Symbol: SWHFX) | |
Dow Jones Global Health Care Index | |
Fund Category: Morningstar Health1 | |
| |
| |
Schwab International Core Equity Fund2 (Ticker Symbol: SICNX) | |
| |
Fund Category: Morningstar Foreign Large Blend1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
Schwab Active Equity Funds | Semiannual Report2
Schwab Active Equity Funds
| Bill McMahon, CFA, Managing Director and Chief Investment Officer of Active Equity Strategies for Schwab Asset Management, is responsible for investment management, research, and portfolio construction for Schwab Asset Management’s active equity strategies and solutions. He is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund, Schwab Core Equity Fund, and Schwab Dividend Equity Fund. Mr. McMahon has more than 20 years of experience in the financial services industry. Prior to his current role, Mr. McMahon was an SVP in Charles Schwab Investment Advisory, Inc. (CSIA), serving as CIO and as a member of the portfolio management team for the ThomasPartners Strategies. Mr. McMahon co-founded ThomasPartners, Inc. in 2001 and served as partner of the firm until its acquisition by the Charles Schwab Corporation in 2012 and subsequent merger with CSIA in 2018. Mr. McMahon began his career at State Street Corporation, with the latter half of his tenure with State Street Global Advisors. |
| Iain Clayton, CFA, FRM, Senior Portfolio Manager and Head of Quantitative Portfolio Management for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Core Equity Fund, Schwab International Core Equity Fund, Schwab Small-Cap Equity Fund, and Schwab Health Care Fund. Prior to joining Schwab in 2013, Mr. Clayton spent more than five years at SSI Investment Management where he was a portfolio manager and the director of quantitative research. In these roles, Mr. Clayton co-managed multiple investment strategies and developed quantitative models and valuation approaches. From 2004 to 2008, he worked as a portfolio manager and director at RCM Capital Management (now known as Allianz Global Investors) and helped manage various equity portfolios and developed fundamental-based stock selection models. Prior to that, he was a vice president at Eureka Investment Advisors for almost three years and also served as a senior quantitative analyst and assistant portfolio manager. He has also worked as a quantitative research analyst at RCM Capital Management. |
| Brian Hillburn, CFA, Senior Portfolio Manager and the Director of Fundamental Research for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Core Equity Fund. Mr. Hillburn also provides fundamental equity research coverage for the ThomasPartners Strategies and the Schwab Active Equity Funds. Previously, Mr. Hillburn was a senior equity research analyst for the ThomasPartners Strategies at Schwab Asset Management. Prior to joining the ThomasPartners Strategies, Mr. Hillburn was an equity analyst at Rockland Trust, and earlier positions include equity research analysis roles on mutual fund teams at Wells Capital and Morgan Stanley Investment Management. |
| Wei Li, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab International Core Equity Fund, Schwab Dividend Equity Fund, Schwab Small-Cap Equity Fund, and Schwab Health Care Fund. Prior to joining Schwab in 2012, Ms. Li spent more than 10 years at Barclays Global Investors (now known as BlackRock), where she held a number of positions. From 2001 to 2009, she worked in various roles in the global advanced active group, including portfolio management and quantitative research for both U.S. and international equity markets. After 2009, she worked in the defined contribution research and product development area for almost two years. |
| Gretchen Novak, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund. Ms. Novak also provides fundamental equity research coverage of certain industry sectors for the ThomasPartners Strategies and the Schwab Active Equity Funds. Previously, Ms. Novak was a director and senior equity research analyst for the ThomasPartners Strategies at Schwab Asset Management. Prior to joining the ThomasPartners Strategies, Ms. Novak was a senior portfolio manager at Mazama Capital Management, Inc., where she oversaw the equity research and portfolio management of the firm’s consumer discretionary and staples sectors. Prior to Mazama Capital, Ms. Novak was an equity analyst at Cramer Rosenthal McGlynn, LLC. |
| Jim Serhant, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Dividend Equity Fund and the ThomasPartners Balanced Strategies. Mr. Serhant also provides fundamental equity research coverage of certain industry sectors for the ThomasPartners Strategies and the Schwab Active Equity Funds. Prior to joining Schwab in 2016, Mr. Serhant was an executive vice president at Hartford Investment Management where he was the head of high yield and a senior portfolio manager, overseeing the credit research and portfolio management of the firm’s high yield strategies. Previously, he was a fixed income analyst at Delaware Investments and JP Morgan. |
3Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Fund Management (continued)
| Holly Emerson, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Large-Cap Growth Fund and Schwab Small-Cap Equity Fund. Prior to joining Schwab in 2014, Ms. Emerson spent nearly 10 years at Algert Coldiron Investors LLC (now known as Algert Global), a quantitative market-neutral hedge fund manager. She held a number of positions at Algert, including assistant portfolio manager and director of operations. In her various roles, she acted as the lead portfolio manager for the Canadian fund, conducted macroeconomic research, and managed relationships with prime brokerage investment banks. |
Schwab Active Equity Funds | Semiannual Report4
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Core Equity Fund (7/1/96) | | | | |
| | | | |
Fund Category: Morningstar Large Blend2 | | | | |
Fund Expense Ratio3: 0.73% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
5Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments2
Top Equity Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report6
Schwab Dividend Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Dividend Equity Fund (9/2/03) | | | | |
Russell 1000® Value Index | | | | |
Dividend Equity Spliced Index | | | | |
| | | | |
Fund Category: Morningstar Large Value3 | | | | |
Fund Expense Ratios4: Net 0.89%; Gross 0.90% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
7Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments2
Top Equity Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report8
Schwab Large-Cap Growth Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Large-Cap Growth Fund (10/3/05) | | | | |
Russell 1000® Growth Index | | | | |
Fund Category: Morningstar Large Growth2 | | | | |
Fund Expense Ratios3: Net 0.99%; Gross 1.02% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
9Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments3
Top Equity Holdings % of Net Assets4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
3
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report10
Schwab Small-Cap Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Small-Cap Equity Fund (7/1/03) | | | | |
| | | | |
Fund Category: Morningstar Small Blend2 | | | | |
Fund Expense Ratio3: 1.09% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
11Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments2
Top Equity Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report12
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Health Care Fund (7/3/00) | | | | |
Dow Jones Global Health Care Index | | | | |
| | | | |
Fund Category: Morningstar Health3 | | | | |
Fund Expense Ratio4: 0.80% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Since the Schwab Health Care Fund focuses its investments on companies involved in a specific sector, this fund may involve a greater degree of risk than an investment in mutual funds that do not concentrate their investments.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
13Schwab Active Equity Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Industry Weightings % of Investments
Top Equity Holdings % of Net Assets2
Portfolio holdings may have changed since the report date.
Source of Industry Classification: S&P and MSCI.
2
This list is not a recommendation of any security by the investment adviser.
Schwab Active Equity Funds | Semiannual Report14
Schwab International Core Equity Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Core Equity Fund (5/30/08) | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Blend4 | | | | |
Fund Expense Ratios5: Net 0.86%; Gross 0.89% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
15Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments
Top Equity Holdings % of Net Assets2
Top Country Weightings % of Investments3
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
This list is not a recommendation of any security by the investment adviser.
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.
Schwab Active Equity Funds | Semiannual Report16
Schwab Active Equity Funds
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 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 November 1, 2022 and held through April 30, 2023.
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 under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in 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.
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.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
|
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| | | | |
| | | | |
Schwab Dividend Equity Fund | | | | |
| | | | |
| | | | |
Schwab Large-Cap Growth Fund | | | | |
| | | | |
| | | | |
Schwab Small-Cap Equity Fund | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Schwab International Core Equity Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
17Schwab Active Equity Funds | Semiannual Report
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report18
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 100.0% OF NET ASSETS |
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Citizens Financial Group, Inc. | | |
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Commercial & Professional Services 1.1% |
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Consumer Discretionary Distribution & Retail 5.7% |
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Consumer Durables & Apparel 1.2% |
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Consumer Staples Distribution & Retail 2.7% |
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Equity Real Estate Investment Trusts (REITs) 1.1% |
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Berkshire Hathaway, Inc., Class B * | | |
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Fidelity National Information Services, Inc. | | |
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Food, Beverage & Tobacco 5.0% |
Constellation Brands, Inc., Class A | | |
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Health Care Equipment & Services 7.9% |
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Boston Scientific Corp. * | | |
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Intuitive Surgical, Inc. * | | |
| | |
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Household & Personal Products 1.6% |
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The Estee Lauder Cos., Inc., Class A | | |
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Media & Entertainment 8.2% |
Alphabet, Inc., Class A * | | |
Meta Platforms, Inc., Class A * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 10.0% |
| | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 4.1% |
ASML Holding N.V. NY Registry Shares | | |
| | |
| | |
|
|
| | |
| | |
19Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
Technology Hardware & Equipment 7.5% |
| | |
|
Telecommunication Services 3.7% |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
United Parcel Service, Inc., Class B | | |
|
| | |
|
| | |
Total Common Stocks
(Cost $955,340,368) | |
Total Investments in Securities
(Cost $955,340,368) | |
| Non-income producing security. |
| American Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report20
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $955,340,368) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
21Schwab Active Equity Funds | Semiannual Report
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $130,640) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 4 for additional information). |
Schwab Active Equity Funds | Semiannual Report22
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
23Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report24
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.4% OF NET ASSETS |
|
|
| | |
Citizens Financial Group, Inc. | | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
|
|
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
Raytheon Technologies Corp. | | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 5.4% |
| | |
| | |
| | |
| | |
|
|
| | |
|
Consumer Staples Distribution & Retail 2.2% |
| | |
|
|
| | |
| | |
| | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 2.0% |
| | |
Lamar Advertising Co., Class A | | |
| | |
|
|
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
| | |
|
| | |
Food, Beverage & Tobacco 8.4% |
| | |
Philip Morris International, Inc. | | |
| | |
| | |
|
Health Care Equipment & Services 7.7% |
| | |
| | |
| | |
| | |
| | |
|
Household & Personal Products 3.1% |
| | |
|
|
| | |
|
|
| | |
|
Media & Entertainment 2.7% |
| | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 10.4% |
| | |
| | |
| | |
| | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 2.6% |
| | |
|
|
| | |
International Business Machines Corp. | | |
| | |
| | |
|
Technology Hardware & Equipment 3.7% |
| | |
| | |
| | |
|
25Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Telecommunication Services 3.0% |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
United Parcel Service, Inc., Class B | | |
|
|
| | |
| | |
| | |
Total Common Stocks
(Cost $432,310,645) | |
Total Investments in Securities
(Cost $432,310,645) | |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Pharmaceuticals, Biotechnology & Life Sciences | | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Schwab Active Equity Funds | Semiannual Report26
Schwab Dividend Equity Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $432,310,645) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
27Schwab Active Equity Funds | Semiannual Report
Schwab Dividend Equity Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $76,326) | | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Active Equity Funds | Semiannual Report28
Schwab Dividend Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
29Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| Per-share amount was less than $0.005. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report30
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 96.2% OF NET ASSETS |
|
Automobiles & Components 1.2% |
| | |
|
|
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
Commercial & Professional Services 1.7% |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 8.0% |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
|
Consumer Durables & Apparel 2.6% |
| | |
| | |
| | |
|
|
| | |
|
Consumer Staples Distribution & Retail 1.5% |
| | |
|
|
| | |
|
Equity Real Estate Investment Trusts (REITs) 0.5% |
| | |
|
|
Interactive Brokers Group, Inc., Class A | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
|
Food, Beverage & Tobacco 3.1% |
Constellation Brands, Inc., Class A | | |
| | |
| | |
Philip Morris International, Inc. | | |
| | |
|
Health Care Equipment & Services 6.1% |
Edwards Lifesciences Corp. * | | |
IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
|
Household & Personal Products 1.7% |
The Estee Lauder Cos., Inc., Class A | | |
|
|
Arthur J. Gallagher & Co. | | |
|
|
| | |
|
Media & Entertainment 5.3% |
Alphabet, Inc., Class A * | | |
|
Pharmaceuticals, Biotechnology & Life Sciences 6.0% |
| | |
Horizon Therapeutics plc * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
|
Semiconductors & Semiconductor Equipment 7.8% |
Advanced Micro Devices, Inc. * | | |
ASML Holding N.V. NY Registry Shares | | |
| | |
| | |
| | |
|
Software & Services 20.1% |
| | |
| | |
| | |
| | |
| | |
31Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment 13.0% |
| | |
Total Common Stocks
(Cost $126,064,428) | |
Total Investments in Securities
(Cost $126,064,428) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| American Depositary Receipt |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Active Equity Funds | Semiannual Report32
Schwab Large-Cap Growth Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $126,064,428) | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Variation margin on future contracts | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
33Schwab Active Equity Funds | Semiannual Report
Schwab Large-Cap Growth Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $2,396) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated | | |
Net realized losses on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Active Equity Funds | Semiannual Report34
Schwab Large-Cap Growth Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
Net investment income (loss) | | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
35Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| 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. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Active Equity Funds | Semiannual Report36
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 97.2% OF NET ASSETS |
|
Automobiles & Components 2.5% |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
Modine Manufacturing Co. * | | |
| | |
The Goodyear Tire & Rubber Co. * | | |
| | |
Winnebago Industries, Inc. | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
Great Southern Bancorp, Inc. | | |
| | |
| | |
| | |
International Bancshares Corp. | | |
| | |
Metropolitan Bank Holding Corp. * | | |
| | |
OceanFirst Financial Corp. | | |
| | |
Peapack-Gladstone Financial Corp. | | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
| | |
Western New England Bancorp, Inc. | | |
| | |
|
|
| | |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GrafTech International Ltd. | | |
Helios Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Preformed Line Products Co. | | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
Standex International Corp. | | |
Sterling Infrastructure, Inc. * | | |
| | |
Titan International, Inc. * | | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
|
Commercial & Professional Services 3.0% |
Casella Waste Systems, Inc., Class A * | | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Consumer Discretionary Distribution & Retail 2.4% |
| | |
Build-A-Bear Workshop, Inc. | | |
| | |
| | |
| | |
Duluth Holdings, Inc., Class B * | | |
| | |
| | |
| | |
| | |
| | |
The Children's Place, Inc. * | | |
| | |
|
Consumer Durables & Apparel 1.6% |
| | |
| | |
Malibu Boats, Inc., Class A * | | |
MasterCraft Boat Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
|
37Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
|
| | |
Bluegreen Vacations Holding Corp. | | |
| | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
Golden Entertainment, Inc. * | | |
Hilton Grand Vacations, Inc. * | | |
Inspired Entertainment, Inc. * | | |
International Game Technology plc | | |
| | |
| | |
Red Rock Resorts, Inc., Class A | | |
SeaWorld Entertainment, Inc. * | | |
| | |
| | |
| | |
|
Consumer Staples Distribution & Retail 0.7% |
BJ's Wholesale Club Holdings, Inc. * | | |
| | |
United Natural Foods, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Equitrans Midstream Corp. | | |
| | |
Magnolia Oil & Gas Corp., Class A | | |
| | |
NexTier Oilfield Solutions, Inc. * | | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
| | |
REX American Resources Corp. * | | |
| | |
Southwestern Energy Co. * | | |
| | |
Teekay Tankers Ltd., Class A * | | |
US Silica Holdings, Inc. * | | |
| | |
World Fuel Services Corp. | | |
| | |
|
Equity Real Estate Investment Trusts (REITs) 5.4% |
Apple Hospitality REIT, Inc. | | |
Armada Hoffler Properties, Inc. | | |
| | |
| | |
| | |
DiamondRock Hospitality Co. | | |
EastGroup Properties, Inc. | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
The Necessity Retail REIT, Inc. | | |
| | |
| | |
|
|
Donnelley Financial Solutions, Inc. * | | |
Enova International, Inc. * | | |
| | |
| | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
| | |
Oportun Financial Corp. * | | |
| | |
| | |
Regional Management Corp. | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
|
Food, Beverage & Tobacco 3.5% |
Coca-Cola Consolidated, Inc. | | |
Darling Ingredients, Inc. * | | |
John B. Sanfilippo & Son, Inc. | | |
| | |
National Beverage Corp. * | | |
| | |
The Simply Good Foods Co. * | | |
| | |
| | |
|
Health Care Equipment & Services 6.6% |
| | |
AirSculpt Technologies, Inc. (a) | | |
Alignment Healthcare, Inc. * | | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
Cross Country Healthcare, Inc. * | | |
Evolent Health, Inc., Class A * | | |
| | |
Inspire Medical Systems, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
NextGen Healthcare, Inc. * | | |
OmniAb, Inc., Class A *(b) | | |
OmniAb, Inc., Class B *(b) | | |
Option Care Health, Inc. * | | |
| | |
Shockwave Medical, Inc. * | | |
| | |
| | |
| | |
Utah Medical Products, Inc. | | |
| | |
Schwab Active Equity Funds | Semiannual Report38
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
Household & Personal Products 0.3% |
| | |
Herbalife Nutrition Ltd. * | | |
Nature's Sunshine Products, Inc. * | | |
| | |
|
|
American Equity Investment Life Holding Co. | | |
CNO Financial Group, Inc. | | |
| | |
Kinsale Capital Group, Inc. | | |
National Western Life Group, Inc., Class A | | |
Stewart Information Services Corp. | | |
| | |
| | |
|
|
| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
Tronox Holdings plc, Class A | | |
| | |
|
Media & Entertainment 2.0% |
| | |
| | |
Entravision Communications Corp., Class A | | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 12.1% |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Agios Pharmaceuticals, Inc. * | | |
| | |
Amicus Therapeutics, Inc. * | | |
Amneal Pharmaceuticals, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * | | |
Arcus Biosciences, Inc. * | | |
Arrowhead Pharmaceuticals, Inc. * | | |
Beam Therapeutics, Inc. * | | |
BioCryst Pharmaceuticals, Inc. * | | |
Blueprint Medicines Corp. * | | |
| | |
| | |
| | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
Chinook Therapeutics, Inc. * | | |
| | |
Collegium Pharmaceutical, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
| | |
Deciphera Pharmaceuticals, Inc. * | | |
Denali Therapeutics, Inc. * | | |
Dynavax Technologies Corp. * | | |
Dyne Therapeutics, Inc. * | | |
Eagle Pharmaceuticals, Inc. * | | |
Emergent BioSolutions, Inc. * | | |
| | |
Halozyme Therapeutics, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Harvard Bioscience, Inc. * | | |
Horizon Therapeutics plc * | | |
IGM Biosciences, Inc. *(a) | | |
| | |
| | |
Intercept Pharmaceuticals, Inc. * | | |
Ironwood Pharmaceuticals, Inc. * | | |
Karuna Therapeutics, Inc. * | | |
Kiniksa Pharmaceuticals Ltd., Class A * | | |
Kymera Therapeutics, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
| | |
Mersana Therapeutics, Inc. * | | |
| | |
| | |
| | |
NGM Biopharmaceuticals, Inc. * | | |
Nurix Therapeutics, Inc. * | | |
Organogenesis Holdings, Inc. * | | |
Phibro Animal Health Corp., Class A | | |
Prestige Consumer Healthcare, Inc. * | | |
Protagonist Therapeutics, Inc. * | | |
| | |
| | |
| | |
Rigel Pharmaceuticals, Inc. * | | |
| | |
| | |
Theravance Biopharma, Inc. * | | |
Travere Therapeutics, Inc. * | | |
Vanda Pharmaceuticals, Inc. * | | |
| | |
| | |
Vir Biotechnology, Inc. * | | |
| | |
| | |
|
Real Estate Management & Development 0.1% |
| | |
|
Semiconductors & Semiconductor Equipment 3.2% |
| | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
| | |
39Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
CommVault Systems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Sprout Social, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
| | |
|
Technology Hardware & Equipment 4.3% |
| | |
| | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
Vishay Intertechnology, Inc. | | |
| | |
|
Telecommunication Services 1.6% |
Cogent Communications Holdings, Inc. | | |
Iridium Communications, Inc. | | |
Liberty Latin America Ltd., Class A * | | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Hub Group, Inc., Class A * | | |
| | |
Radiant Logistics, Inc. * | | |
| | |
|
|
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class A | | |
Consolidated Water Co., Ltd. | | |
Genie Energy Ltd., Class B | | |
| | |
New Jersey Resources Corp. | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $472,612,596) | |
| | |
SHORT-TERM INVESTMENTS 0.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
Total Short-Term Investments
(Cost $901,345) | |
Total Investments in Securities
(Cost $473,513,941) | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $873,282. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
Schwab Active Equity Funds | Semiannual Report40
Schwab Small-Cap Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Health Care Equipment & Services | | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
41Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $473,513,941) including securities on loan of $873,282 | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Semiannual Report42
Schwab Small-Cap Equity Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $8,778) | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net realized and unrealized losses | | |
Decrease in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 4 for additional information). |
43Schwab Active Equity Funds | Semiannual Report
Schwab Small-Cap Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Decrease in net assets from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Active Equity Funds | Semiannual Report44
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
45Schwab Active Equity Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.7% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
|
|
| | |
| | |
| | |
|
|
Carl Zeiss Meditec AG, Class B | | |
CompuGroup Medical SE & Co. KgaA | | |
| | |
|
|
CSPC Pharmaceutical Group Ltd. | | |
The United Laboratories International Holdings Ltd. | | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
Ono Pharmaceutical Co., Ltd. | | |
| | |
|
|
| | |
Samsung Biologics Co., Ltd. * | | |
| | |
|
|
Laboratorios Farmaceuticos Rovi S.A. | | |
|
| | |
|
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
|
|
| | |
| | |
| | |
| | |
|
|
| | |
Universal Vision Biotechnology Co., Ltd. | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
ACADIA Pharmaceuticals, Inc. * | | |
Agilent Technologies, Inc. | | |
| | |
AMN Healthcare Services, Inc. * | | |
| | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Intercept Pharmaceuticals, Inc. * | | |
Intuitive Surgical, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
Schwab Active Equity Funds | Semiannual Report46
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Jazz Pharmaceuticals plc * | | |
| | |
Lantheus Holdings, Inc. * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
NextGen Healthcare, Inc. * | | |
OraSure Technologies, Inc. * | | |
| | |
| | |
Phibro Animal Health Corp., Class A | | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
| | |
Veeva Systems, Inc., Class A * | | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
Zimmer Biomet Holdings, Inc. | | |
| | |
| | |
Total Common Stocks
(Cost $558,741,866) | |
Total Investments in Securities
(Cost $558,741,866) | |
| Non-income producing security. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
47Schwab Active Equity Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $558,741,866) | | |
| | |
Foreign currency, at value (cost $40,527) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Active Equity Funds | Semiannual Report48
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $205,356) | | |
|
|
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 4 for additional information). |
49Schwab Active Equity Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Active Equity Funds | Semiannual Report50
Schwab International Core Equity Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
51Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 97.4% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
BAIC Motor Corp., Ltd., H Shares | | |
|
|
Novo Nordisk A/S, Class B | | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Hellenic Telecommunications Organization S.A. | | |
| | |
| | |
|
|
| | |
China CITIC Bank Corp., Ltd., H Shares | | |
| | |
CK Infrastructure Holdings Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
PetroChina Co., Ltd., H Shares | | |
| | |
SITC International Holdings Co., Ltd. | | |
| | |
|
|
| | |
|
|
Assicurazioni Generali S.p.A. | | |
| | |
| | |
| | |
|
|
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
Electric Power Development Co., Ltd. | | |
| | |
Schwab Active Equity Funds | Semiannual Report52
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Japan Real Estate Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Nippon Building Fund, Inc. | | |
| | |
Ono Pharmaceutical Co., Ltd. | | |
| | |
Recruit Holdings Co., Ltd. | | |
| | |
| | |
| | |
Shin-Etsu Chemical Co., Ltd. | | |
| | |
Sumitomo Forestry Co., Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
|
|
| | |
Koninklijke Ahold Delhaize N.V. | | |
| | |
| | |
| | |
| | |
|
|
| | |
|
|
| | |
Samsung Electro-Mechanics Co., Ltd. | | |
Samsung Electronics Co., Ltd. | | |
| | |
|
|
Jardine Cycle & Carriage Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
|
|
| | |
Cie Financiere Richemont S.A., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Legal & General Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $449,479,984) | |
53Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 1.8% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (b) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (b)(c) | | |
| | |
Total Short-Term Investments
(Cost $9,518,871) | |
Total Investments in Securities
(Cost $458,998,855) | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $3,219,735. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Active Equity Funds | Semiannual Report54
Schwab International Core Equity Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $458,998,855) including securities on loan of $3,219,735 | | |
Foreign currency, at value (cost $5,055,183) | | |
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Income from securities on loan | | |
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Collateral held for securities on loan | | |
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Investment adviser and administrator fees | | |
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Independent trustees’ fees | | |
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| | |
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Capital received from investors | | |
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| | |
55Schwab Active Equity Funds | Semiannual Report
Schwab International Core Equity Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $866,652) | | |
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| | |
|
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Investment adviser and administrator fees | | |
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Portfolio accounting fees | | |
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Independent trustees’ fees | | |
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REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - unaffiliated | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Includes professional fees of $1,904 associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
Schwab Active Equity Funds | Semiannual Report56
Schwab International Core Equity Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
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DISTRIBUTIONS TO SHAREHOLDERS |
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TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
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SHARES OUTSTANDING AND NET ASSETS |
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Total increase (decrease) | | | | | |
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57Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| |
Schwab Dividend Equity Fund | |
Schwab Large-Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
| |
Schwab International Core Equity Fund | Schwab Fundamental US Large Company Index Fund |
Schwab S&P 500 Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab Small-Cap Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Fundamental International Small Company Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental Global Real Estate Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Target 2010 Index Fund |
Schwab International Index Fund® | Schwab Target 2015 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2020 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2025 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2030 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2035 Index Fund |
Schwab International Opportunities Fund | Schwab Target 2040 Index Fund |
| Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
| Schwab Target 2055 Index Fund |
| Schwab Target 2060 Index Fund |
| Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each fund in this report offers one share class. 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The funds may invest in certain mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab Active Equity Funds | Semiannual Report58
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
• Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
59Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
• 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. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a 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.
The levels associated with valuing the funds’ investments as of April 30, 2023, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 of the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
As of April 30, 2023, Schwab Small-Cap Equity Fund and Schwab International Core Equity Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2023, are disclosed in the fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Schwab Active Equity Funds | Semiannual Report60
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
Cash Investments: The funds, except for Schwab Core Equity Fund and Schwab International Core Equity Fund, may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab Dividend Equity Fund, Schwab Health Care Fund and Schwab International Core Equity Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations, if any, in each fund’s Statement of Operations. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab International Core Equity Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
61Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab International Core Equity Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2023, the Schwab International Core Equity Fund did not incur any compliance fees.
(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.
(f) Distributions to Shareholders:
The funds make distributions from net investment income, if any, once a year, with the exception of Schwab Dividend Equity Fund which typically pays quarterly distributions. 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:
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 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) Foreign Taxes:
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2023, if any, are reflected in each fund’s Statement of Assets and Liabilities.
(j) 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.
(k) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
Schwab Active Equity Funds | Semiannual Report62
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Management Risk. The investment techniques, risk analyses and portfolio optimization process the investment adviser may use in constructing the fund’s portfolio do not assure successful investment outcomes. Securities selected with the assistance of the investment process may be negatively impacted by factors or events not foreseen in developing the process. The portfolio optimization process and Schwab Equity Ratings and Schwab Equity International Ratings may not adequately take into account certain factors or may rely on inaccurate data inputs, may contain design flaws or faulty assumptions, and may rely on incomplete or inaccurate data inputs. The fund’s investment adviser may make investment decisions using historical information that may not produce the desired results in the future. As a result, a fund may have a lower return than if it were managed using another process or strategy.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Growth Investing Risk. Growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
Dividend Paying Stock Risk. To the extent that a fund invests in dividend paying stocks, the fund’s performance will correlate with the performance of the dividend paying stock segment of the stock market, and the fund may underperform funds that do not limit their investments to dividend paying stocks. If stocks held by a fund reduce or stop paying dividends, the fund’s ability to generate income may be affected.
Derivatives Risk. The principal type of derivative used by a fund is a futures contract. A futures contract is an agreement to buy or sell a financial instrument at a specific price on a specific day. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC), could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, counterparty risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Counterparty risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations either because the financial condition of the counterparty declines, or because the counterparty is otherwise unable or unwilling to perform under the contract. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on a fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause a fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase its volatility,
63Schwab Active Equity Funds | Semiannual Report
Schwab Active Equity Funds
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
and could cause the fund to lose more than the initial amount invested. The fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
REITs Risk. A fund’s investments in real estate investment trusts (REITs) will be subject to the risks associated with the direct ownership of real estate, including fluctuations in the value of underlying properties, defaults by borrowers or tenants, changes in interest rates and risks related to general or local economic conditions. REITs are also subject to certain additional risks; for example, REITs are dependent upon specialized management skills and cash flows, and may have their investments in relatively few properties, a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences on a fund. In addition, REITs have their own expenses, and a fund will bear a proportionate share of those expenses.
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 a fund’s investments and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market, and GDRs in particular, many of which are issued by companies in emerging markets, may be more volatile. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Concentration Risk. The investments of certain funds are concentrated in issuers doing business in the same sector, and therefore, the companies in which a fund invests will be affected by many of the same factors, such as legislative or regulatory changes, intense competition for market share and other competitive challenges. In addition, a fund is subject to the risks that stocks of these companies may underperform other segments of the equity market or stock market as a whole and are likely to have above-average volatility.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Portfolio Turnover Risk. The funds buy and sell portfolio securities actively. This may cause a fund’s portfolio turnover rate and transaction costs to rise, which may lower a fund’s performance and may increase the likelihood of capital gains distributions.
Please refer to the funds’ prospectus for a more complete description of the principal risks of investing in the funds.
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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 each fund’s investment adviser and administrator pursuant to the 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, based on a percentage of each fund’s average daily net assets as follows:
% OF AVERAGE DAILY NET ASSETS | | SCHWAB DIVIDEND EQUITY FUND | SCHWAB LARGE-CAP GROWTH FUND | SCHWAB SMALL-CAP EQUITY FUND | SCHWAB INTERNATIONAL CORE EQUITY FUND |
| | | | | |
% OF AVERAGE DAILY NET ASSETS | |
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$500 million to $1 billion | |
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For the period ended April 30, 2023, the aggregate advisory fee paid to the investment adviser by the Schwab Health Care Fund was 0.53%, as a percentage of the fund’s average daily net assets.
Shareholder Servicing
The Board has adopted a Shareholder Servicing 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.
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee up to 0.25%. 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). 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.
Expense Limitation
The investment adviser and its affiliates have made an additional agreement with the funds, 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). The below expense limitation also excludes paying acquired fund fees and expenses, which are indirect expenses incurred by the funds through their investments in underlying funds. The expense limitation as a percentage of average daily net assets is as follows:
| SCHWAB DIVIDEND EQUITY FUND | SCHWAB LARGE-CAP GROWTH FUND | SCHWAB SMALL-CAP EQUITY FUND | | SCHWAB INTERNATIONAL CORE EQUITY FUND |
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2023, as applicable:
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| | SCHWAB SMALL-CAP EQUITY FUND | SCHWAB INTERNATIONAL CORE EQUITY FUND |
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Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees on behalf of the Schwab International Core Equity Fund, subject to reimbursement by the fund to the extent the fund is able to successfully recover taxes withheld in the future.
For the period ended April 30, 2023, the professional fees incurred by the Schwab International Core Equity Fund and paid by the investment adviser were $1,904, as shown as Professional fees in the fund’s Statement of Operations.
For the period ended April 30, 2023, the Schwab International Core Equity Fund recovered previously withheld foreign taxes from Sweden. The payments received by Schwab International Core Equity Fund amounted to $377,552, and is recorded as Dividends received from securities — unaffiliated in the fund’s Statement of Operations. The investment adviser paid upfront professional fees associated with recovering these foreign taxes in the amount of $4,162, which has been reimbursed to the investment adviser by the Schwab International Core Equity Fund and is recorded as Dividends received from securities - unaffiliated in the fund’s Statement of Operations.
As of April 30, 2023, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the Schwab International Core Equity Fund to the investment adviser was $0.
No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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.
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Financial Notes, unaudited (continued)
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 funds did not pay any of these interested persons for their services as trustees, but they did pay non-interested persons (independent trustees), as noted in 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. 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 28, 2023. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds 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 in 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. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding short-term obligations) were as follows:
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Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
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Schwab International Core Equity Fund | | |
8. Derivatives:Certain funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2023, if any, are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts, if any, are presented in the Statement of Operations. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2023, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
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Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
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Schwab International Core Equity Fund | | |
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Financial Notes, unaudited (continued)
As of April 30, 2023, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
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Schwab Dividend Equity Fund | | | | |
Schwab Large-Cap Growth Fund | | | | |
Schwab Small-Cap Equity Fund | | | | |
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Schwab International Core Equity Fund | | | | |
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2022, the funds had capital loss carryforwards available as follows:
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| |
Schwab Dividend Equity Fund | |
Schwab Large-Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
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Schwab International Core Equity Fund | |
For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended October 31, 2022, the Schwab Large-Cap Growth Fund had late-year ordinary losses deferred of $80,845.
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
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Schwab Dividend Equity Fund | | |
Schwab Large-Cap Growth Fund | | |
Schwab Small-Cap Equity Fund | | |
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Schwab International Core Equity Fund | | |
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 in 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 October 31, 2022, 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 each fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the funds did not incur any interest or penalties.
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Financial Notes, unaudited (continued)
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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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 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.
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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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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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 | |
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). | | |
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). | | |
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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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dividend Equity Spliced Index An internally calculated index, comprised of the S&P 500 Index from inception of the Schwab Dividend Equity Fund until the close of business on February 27, 2015, and the Russell 1000 Value Index thereafter.
Dow Jones Global Health Care Index An index that measures the performance of healthcare providers, researchers, and supplies producers around the world. The index is quoted in U.S. dollars.
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.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 1000 Value Index An index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
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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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab Fundamental Index* Funds
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 is a registered trademark of Charles Schwab & Co., Inc.
FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.
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Schwab Fundamental Index Funds
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
Schwab Fundamental Index Funds | Semiannual Report1
Schwab Fundamental Index Funds
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Fundamental US Large Company Index Fund (Ticker Symbol: SFLNX) | |
Russell RAFITM US Large Company Index | |
| |
Fund Category: Morningstar Large Value1 | |
| |
| |
Schwab Fundamental US Small Company Index Fund (Ticker Symbol: SFSNX) | |
Russell RAFITM US Small Company Index | |
| |
Fund Category: Morningstar Small Blend1 | |
| |
| |
Schwab Fundamental International Large Company Index Fund2 (Ticker Symbol: SFNNX) | |
Russell RAFITM Developed ex US Large Company Index | |
| |
Fund Category: Morningstar Foreign Large Value1 | |
| |
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Fundamental International Small Company Index Fund2 (Ticker Symbol: SFILX) | |
Russell RAFITM Developed ex US Small Company Index | |
S&P Developed ex-U.S. Small Cap Index (Net)3 | |
Fund Category: Morningstar Foreign Small/Mid Value1 | |
| |
| |
Schwab Fundamental Emerging Markets Large Company Index Fund2 (Ticker Symbol: SFENX) | |
Russell RAFITM Emerging Markets Large Company Index | |
MSCI Emerging Markets Index (Net)3 | |
Fund Category: Morningstar Diversified Emerging Markets1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for each fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Index ownership — The funds are not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Index Series (the Indices) or otherwise. The Indices are compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Indices and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Indices. For full disclaimer please see the funds’ statement of additional information.
*
Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
2Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
| Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs, and Schwab Personalized Indexing™ separately managed accounts. Before joining Schwab in 2016, Mr. Bliss spent 12 years at BlackRock (formerly Barclays Global Investors) managing and leading institutional index teams, most recently as a managing director and the head of the Americas institutional index team. In this role, Mr. Bliss was responsible for overseeing a team of portfolio managers managing domestic, developed international and emerging markets index strategies. Prior to BlackRock, he worked as an equity analyst and portfolio manager for Harris Bretall and before that, as a research analyst for JP Morgan. |
| Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2017, Mr. Brown spent six years with ALPS Advisors, Inc. in Denver, most recently as a senior analyst on the ETF portfolio management and research team where he performed portfolio management, trading, and analytics/research functions for ALPS ETFs and passive funds. Additionally, Mr. Brown led a number of investment research, commentary, industry trend analysis, and sales and marketing support initiatives. |
| Ferian Juwono, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight and day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2010, Mr. Juwono worked at BlackRock (formerly Barclays Global Investors) where he spent more than three years as a portfolio manager, managing equity index funds for institutional clients, and two years as a senior business analyst. Prior to that, Mr. Juwono worked for more than four years as a senior financial analyst with Union Bank of California. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund, and Schwab Fundamental Emerging Markets Large Company Index Fund. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
| Sabya Sinha, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2015, Mr. Sinha spent a year at F-Squared Investments on the product development and analytics team. Prior to F-Squared, he worked at IndexIQ Advisors as a senior index portfolio manager for three years and for Bank of America’s Columbia Management subsidiary as a portfolio manager for three years. Mr. Sinha also spent time as a software consultant at DPM Mellon, LLC and an equity trader at Jane Street Capital. |
| Agnes Zau, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund. Prior to joining Schwab in 2018, Ms. Zau was at BlackRock for three years, most recently as a multi-asset portfolio investment consultant where she advised institutional clients on asset allocation and strategy, constructed risk decomposition and portfolio optimization, and conducted scenario analyses for the core multi-asset target risk strategies. She spent the preceding three years as a derivatives specialist at Mellon Capital. |
Schwab Fundamental Index Funds | Semiannual Report3
Schwab Fundamental US Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Fundamental US Large Company Index Fund (4/2/07) | | | | |
Russell RAFITM US Large Company Index | | | | |
| | | | |
Fund Category: Morningstar Large Value2 | | | | |
Fund Expense Ratio3: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental US Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
4Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
2
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental Index Funds | Semiannual Report5
Schwab Fundamental US Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Fundamental US Small Company Index Fund (4/2/07) | | | | |
Russell RAFITM US Small Company Index | | | | |
| | | | |
Fund Category: Morningstar Small Blend2 | | | | |
Fund Expense Ratio3: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental US Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus.
6Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments4
Top Equity Holdings % of Net Assets5
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
2
Portfolio turnover rate excludes in-kind transactions.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Fundamental Index Funds | Semiannual Report7
Schwab Fundamental International Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental International Large Company Index Fund (4/2/07) | | | | |
Russell RAFITM Developed ex US Large Company Index (Net)3 | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Value4 | | | | |
Fund Expense Ratio5: 0.25% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental International Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus.
8Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report9
Schwab Fundamental International Small Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental International Small Company Index Fund (1/31/08) | | | | |
Russell RAFITM Developed ex US Small Company Index (Net)3 | | | | |
S&P Developed ex-U.S. Small Cap Index (Net)3 | | | | |
Fund Category: Morningstar Foreign Small/Mid Value4 | | | | |
Fund Expense Ratio5: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental International Small Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Developed ex US Small Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
*
Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus.
10Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report11
Schwab Fundamental Emerging Markets Large Company Index Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab Fundamental Emerging Markets Large Company Index Fund (1/31/08) | | | | |
Russell RAFITM Emerging Markets Large Company Index (Net)3 | | | | |
MSCI Emerging Markets Index (Net)3 | | | | |
Fund Category: Morningstar Diversified Emerging Markets4 | | | | |
Fund Expense Ratio5: 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The first index listed for the fund is the fund’s primary benchmark, as shown in the prospectus. Additional indices shown are provided for comparative purposes.
For index definitions, please see the Glossary.
Index ownership – The Schwab Fundamental Emerging Markets Large Company Index Fund is not in any way sponsored, endorsed, sold or promoted by Frank Russell Company (Russell), by the London Stock Exchange Group companies (LSEG), or by Research Affiliates LLC (RA) (collectively the Licensor Parties), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell RAFITM Emerging Markets Large Company Index (the Index) or otherwise. The Index is compiled and calculated by Russell in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. “Russell®” is a trademark of Russell. The trade names “Research Affiliates®”, “Fundamental Index®” and “RAFI®” are registered trademarks of RA. Charles Schwab Investment Management, Inc. has obtained full license from Russell to use the Index. For full disclaimer please see the fund’s statement of additional information.
1
Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
4
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
5
As stated in the prospectus.
12Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab Fundamental Index Funds | Semiannual Report13
Schwab Fundamental Index Funds
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.
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 November 1, 2022 and held through April 30, 2023.
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 under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in 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.
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.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
|
Schwab Fundamental US Large Company Index Fund | | | | |
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Schwab Fundamental US Small Company Index Fund | | | | |
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Schwab Fundamental International Large Company Index Fund | | | | |
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Schwab Fundamental International Small Company Index Fund | | | | |
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Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
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| Based on the most recent six-month expense ratio. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
14Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
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|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Fundamental Index Funds | Semiannual Report15
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 99.5% OF NET ASSETS |
|
Automobiles & Components 1.4% |
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The Goodyear Tire & Rubber Co. * | | |
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Citizens Financial Group, Inc. | | |
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Huntington Bancshares, Inc. | | |
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New York Community Bancorp, Inc. | | |
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The PNC Financial Services Group, Inc. | | |
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Allison Transmission Holdings, Inc. | | |
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Fortune Brands Innovations, Inc. | | |
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Honeywell International, Inc. | | |
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Huntington Ingalls Industries, Inc. | | |
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Illinois Tool Works, Inc. | | |
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Johnson Controls International plc | | |
L3Harris Technologies, Inc. | | |
Lennox International, Inc. | | |
Lincoln Electric Holdings, Inc. | | |
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MDU Resources Group, Inc. | | |
MSC Industrial Direct Co., Inc., Class A | | |
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Raytheon Technologies Corp. | | |
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Resideo Technologies, Inc. * | | |
Rockwell Automation, Inc. | | |
Sensata Technologies Holding plc | | |
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Spirit AeroSystems Holdings, Inc., Class A | | |
Stanley Black & Decker, Inc. | | |
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16Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Triton International Ltd. | | |
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WESCO International, Inc. | | |
Westinghouse Air Brake Technologies Corp. | | |
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|
Commercial & Professional Services 1.1% |
| | |
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Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
Broadridge Financial Solutions, Inc. | | |
CACI International, Inc., Class A * | | |
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Robert Half International, Inc. | | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
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|
Consumer Discretionary Distribution & Retail 4.0% |
Academy Sports & Outdoors, Inc. | | |
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Asbury Automotive Group, Inc. * | | |
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Burlington Stores, Inc. * | | |
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Dick's Sporting Goods, Inc. | | |
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O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. | | |
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Qurate Retail, Inc., Series A * | | |
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Consumer Durables & Apparel 1.7% |
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Lululemon Athletica, Inc. * | | |
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Mohawk Industries, Inc. * | | |
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Skechers U.S.A., Inc., Class A * | | |
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Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
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Chipotle Mexican Grill, Inc. * | | |
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Hilton Worldwide Holdings, Inc. | | |
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Marriott International, Inc., Class A | | |
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MGM Resorts International | | |
Penn Entertainment, Inc. * | | |
Royal Caribbean Cruises Ltd. * | | |
Schwab Fundamental Index Funds | Semiannual Report17
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Service Corp. International | | |
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Consumer Staples Distribution & Retail 3.7% |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
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Performance Food Group Co. * | | |
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Sprouts Farmers Market, Inc. * | | |
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U.S. Foods Holding Corp. * | | |
United Natural Foods, Inc. * | | |
Walgreens Boots Alliance, Inc. | | |
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Equitrans Midstream Corp. | | |
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Occidental Petroleum Corp. | | |
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PBF Energy, Inc., Class A | | |
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Pioneer Natural Resources Co. | | |
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Southwestern Energy Co. * | | |
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World Fuel Services Corp. | | |
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|
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Equity Real Estate Investment Trusts (REITs) 1.6% |
Alexandria Real Estate Equities, Inc. | | |
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AvalonBay Communities, Inc. | | |
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Brixmor Property Group, Inc. | | |
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Digital Realty Trust, Inc. | | |
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Essex Property Trust, Inc. | | |
Extra Space Storage, Inc. | | |
Gaming & Leisure Properties, Inc. | | |
Healthpeak Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
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Lamar Advertising Co., Class A | | |
Medical Properties Trust, Inc. | | |
Mid-America Apartment Communities, Inc. | | |
Omega Healthcare Investors, Inc. | | |
Park Hotels & Resorts, Inc. | | |
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Simon Property Group, Inc. | | |
SL Green Realty Corp. (b) | | |
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Affiliated Managers Group, Inc. | | |
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Ameriprise Financial, Inc. | | |
Annaly Capital Management, Inc. | | |
Apollo Global Management, Inc. | | |
Berkshire Hathaway, Inc., Class A * | | |
Berkshire Hathaway, Inc., Class B * | | |
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Bread Financial Holdings, Inc. | | |
Capital One Financial Corp. | | |
Cboe Global Markets, Inc. | | |
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Coinbase Global, Inc., Class A *(b) | | |
Discover Financial Services | | |
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Fidelity National Information Services, Inc. | | |
18Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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FleetCor Technologies, Inc. * | | |
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Intercontinental Exchange, Inc. | | |
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Jack Henry & Associates, Inc. | | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
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LPL Financial Holdings, Inc. | | |
Mastercard, Inc., Class A | | |
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Raymond James Financial, Inc. | | |
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Starwood Property Trust, Inc. (b) | | |
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T. Rowe Price Group, Inc. | | |
The Bank of New York Mellon Corp. | | |
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The Charles Schwab Corp. (c) | | |
The Goldman Sachs Group, Inc. | | |
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|
Food, Beverage & Tobacco 4.0% |
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Archer-Daniels-Midland Co. | | |
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Coca-Cola Europacific Partners plc | | |
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Constellation Brands, Inc., Class A | | |
Darling Ingredients, Inc. * | | |
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Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. - Non Voting Shares | | |
Molson Coors Beverage Co., Class B | | |
Mondelez International, Inc., Class A | | |
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Philip Morris International, Inc. | | |
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Tyson Foods, Inc., Class A | | |
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Health Care Equipment & Services 5.9% |
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Baxter International, Inc. | | |
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Boston Scientific Corp. * | | |
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Edwards Lifesciences Corp. * | | |
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IDEXX Laboratories, Inc. * | | |
Intuitive Surgical, Inc. * | | |
Laboratory Corp. of America Holdings | | |
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Molina Healthcare, Inc. * | | |
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Universal Health Services, Inc., Class B | | |
Zimmer Biomet Holdings, Inc. | | |
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|
Household & Personal Products 1.4% |
Church & Dwight Co., Inc. | | |
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The Estee Lauder Cos., Inc., Class A | | |
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|
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American Financial Group, Inc. | | |
American International Group, Inc. | | |
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Arch Capital Group Ltd. * | | |
Arthur J. Gallagher & Co. | | |
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Schwab Fundamental Index Funds | Semiannual Report19
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Cincinnati Financial Corp. | | |
CNO Financial Group, Inc. | | |
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Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Genworth Financial, Inc., Class A * | | |
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Marsh & McLennan Cos., Inc. | | |
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Old Republic International Corp. | | |
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Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. | | |
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The Hanover Insurance Group, Inc. | | |
The Hartford Financial Services Group, Inc. | | |
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Air Products & Chemicals, Inc. | | |
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Axalta Coating Systems Ltd. * | | |
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CF Industries Holdings, Inc. | | |
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Graphic Packaging Holding Co. | | |
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International Flavors & Fragrances, Inc. | | |
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LyondellBasell Industries N.V., Class A | | |
Martin Marietta Materials, Inc. | | |
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Packaging Corp. of America | | |
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Reliance Steel & Aluminum Co. | | |
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United States Steel Corp. | | |
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|
Media & Entertainment 6.3% |
Activision Blizzard, Inc. * | | |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
Charter Communications, Inc., Class A * | | |
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DISH Network Corp., Class A * | | |
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Liberty Media Corp. - Liberty SiriusXM, Class A * | | |
Liberty Media Corp. - Liberty SiriusXM, Class C * | | |
Meta Platforms, Inc., Class A * | | |
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Nexstar Media Group, Inc., Class A | | |
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Paramount Global, Class B | | |
Take-Two Interactive Software, Inc. * | | |
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The Interpublic Group of Cos., Inc. | | |
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Warner Bros Discovery, Inc. * | | |
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|
Pharmaceuticals, Biotechnology & Life Sciences 6.0% |
| | |
Agilent Technologies, Inc. | | |
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Jazz Pharmaceuticals plc * | | |
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Mettler-Toledo International, Inc. * | | |
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20Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
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| | |
West Pharmaceutical Services, Inc. | | |
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|
Real Estate Management & Development 0.2% |
Anywhere Real Estate, Inc. * | | |
CBRE Group, Inc., Class A * | | |
DigitalBridge Group, Inc. | | |
Jones Lang LaSalle, Inc. * | | |
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|
Semiconductors & Semiconductor Equipment 4.1% |
Advanced Micro Devices, Inc. * | | |
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Microchip Technology, Inc. | | |
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Akamai Technologies, Inc. * | | |
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Cadence Design Systems, Inc. * | | |
Check Point Software Technologies Ltd. * | | |
Cognizant Technology Solutions Corp., Class A | | |
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International Business Machines Corp. | | |
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Palo Alto Networks, Inc. * | | |
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|
Technology Hardware & Equipment 7.2% |
| | |
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Arrow Electronics, Inc. * | | |
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Dell Technologies, Inc., Class C | | |
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Hewlett Packard Enterprise Co. | | |
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Insight Enterprises, Inc. * | | |
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Keysight Technologies, Inc. * | | |
| | |
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| | |
Seagate Technology Holdings plc | | |
| | |
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Teledyne Technologies, Inc. * | | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
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|
Telecommunication Services 3.2% |
| | |
Liberty Global plc, Class A * | | |
Liberty Global plc, Class C * | | |
| | |
Telephone & Data Systems, Inc. | | |
| | |
Verizon Communications, Inc. | | |
| | |
|
|
Avis Budget Group, Inc. * | | |
C.H. Robinson Worldwide, Inc. | | |
| | |
| | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
JB Hunt Transport Services, Inc. | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
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Schwab Fundamental Index Funds | Semiannual Report21
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Uber Technologies, Inc. * | | |
| | |
United Airlines Holdings, Inc. * | | |
United Parcel Service, Inc., Class B | | |
| | |
ZIM Integrated Shipping Services Ltd. (b) | | |
| | |
|
|
| | |
| | |
American Electric Power Co., Inc. | | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
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| | |
Pinnacle West Capital Corp. | | |
Portland General Electric Co. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
Southwest Gas Holdings, Inc. | | |
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| | |
Total Common Stocks
(Cost $4,176,713,266) | |
| | |
SHORT-TERM INVESTMENTS 0.3% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $19,731,230) | |
Total Investments in Securities
(Cost $4,196,444,496) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
S&P 500 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| First Republic Bank was placed into receivership with the Federal Deposit Insurance Corp. due to inadequate liquidity and insolvency on May 1, 2023 and the position has subsequently been sold. |
| All or a portion of this security is on loan. Securities on loan were valued at $3,316,566. |
| Issuer is affiliated with the fund’s investment adviser. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
COMMON STOCKS 0.1% OF NET ASSETS |
|
|
| | | | | | | | |
22Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
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| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report23
Schwab Fundamental US Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
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Investments in securities, at value - affiliated (cost $2,844,802) | | |
Investments in securities, at value - unaffiliated (cost $4,193,599,694) including securities on loan of $3,316,566 | | |
Deposit with broker for futures contracts | | |
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Variation margin on future contracts | | |
Income from securities on loan | | |
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Collateral held for securities on loan | | |
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Capital received from investors | | |
Total distributable earnings | | |
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24Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Large Company Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
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Dividends received from securities - unaffiliated (net of foreign withholding tax of $51,516) | | |
Interest received from securities - unaffiliated | | |
Dividends received from securities - affiliated | | |
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REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized gains on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on sales of in-kind redemptions - unaffiliated | | |
Net realized losses on futures contracts | | |
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Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
Schwab Fundamental Index Funds | Semiannual Report25
Schwab Fundamental US Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
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Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
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DISTRIBUTIONS TO SHAREHOLDERS |
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TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
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SHARES OUTSTANDING AND NET ASSETS |
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Total increase (decrease) | | | | | |
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26Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Financial Statements
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Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
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Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
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Net asset value at end of period | | | | | | |
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Ratios to average net assets: | | | | | | |
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Net investment income (loss) | | | | | | |
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Net assets, end of period (x 1,000,000) | | | | | | |
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| Calculated based on the average shares outstanding during the period. |
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| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Portfolio turnover rate excludes in-kind transactions. |
Schwab Fundamental Index Funds | Semiannual Report27
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
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COMMON STOCKS 99.5% OF NET ASSETS |
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Automobiles & Components 1.8% |
American Axle & Manufacturing Holdings, Inc. * | | |
Cooper-Standard Holdings, Inc. * | | |
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Fox Factory Holding Corp. * | | |
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Modine Manufacturing Co. * | | |
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Standard Motor Products, Inc. | | |
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Winnebago Industries, Inc. | | |
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Capitol Federal Financial, Inc. | | |
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Central Pacific Financial Corp. | | |
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Columbia Banking System, Inc. | | |
Commerce Bancshares, Inc. | | |
Community Bank System, Inc. | | |
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Cullen/Frost Bankers, Inc. | | |
Customers Bancorp, Inc. * | | |
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Enterprise Financial Services Corp. | | |
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First Bancorp/Southern Pines NC | | |
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First Citizens BancShares, Inc., Class A | | |
First Commonwealth Financial Corp. | | |
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First Financial Bankshares, Inc. | | |
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First Interstate BancSystem, Inc., Class A | | |
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Heartland Financial USA, Inc. | | |
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Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
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Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
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Pacific Premier Bancorp, Inc. | | |
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Pinnacle Financial Partners, Inc. | | |
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Prosperity Bancshares, Inc. | | |
Provident Financial Services, Inc. | | |
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Sandy Spring Bancorp, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
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Texas Capital Bancshares, Inc. * | | |
The Bank of N.T. Butterfield & Son Ltd. | | |
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United Community Banks, Inc. | | |
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Washington Trust Bancorp, Inc. | | |
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28Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Advanced Drainage Systems, Inc. | | |
Aerojet Rocketdyne Holdings, Inc. * | | |
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Albany International Corp., Class A | | |
American Woodmark Corp. * | | |
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Applied Industrial Technologies, Inc. | | |
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Armstrong World Industries, Inc. | | |
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Beacon Roofing Supply, Inc. * | | |
BlueLinx Holdings, Inc. * | | |
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Comfort Systems USA, Inc. | | |
Construction Partners, Inc., Class A * | | |
Core & Main, Inc., Class A * | | |
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Evoqua Water Technologies Corp. * | | |
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Franklin Electric Co., Inc. | | |
FTAI Aviation Ltd., Class A | | |
Gates Industrial Corp. plc * | | |
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Gibraltar Industries, Inc. * | | |
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GrafTech International Ltd. | | |
Granite Construction, Inc. | | |
Great Lakes Dredge & Dock Corp. * | | |
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H&E Equipment Services, Inc. | | |
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Hillman Solutions Corp. * | | |
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John Bean Technologies Corp. | | |
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Kratos Defense & Security Solutions, Inc. * | | |
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Masonite International Corp. * | | |
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Mueller Water Products, Inc., Class A | | |
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National Presto Industries, Inc. | | |
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Quanex Building Products Corp. | | |
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Rush Enterprises, Inc., Class A | | |
Simpson Manufacturing Co., Inc. | | |
SiteOne Landscape Supply, Inc. * | | |
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Standex International Corp. | | |
Sterling Infrastructure, Inc. * | | |
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Textainer Group Holdings Ltd. | | |
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The Greenbrier Cos., Inc. | | |
The Manitowoc Co., Inc. * | | |
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Watts Water Technologies, Inc., Class A | | |
WillScot Mobile Mini Holdings Corp. * | | |
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Zurn Elkay Water Solutions Corp. | | |
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Commercial & Professional Services 5.5% |
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Barrett Business Services, Inc. | | |
BrightView Holdings, Inc. * | | |
Casella Waste Systems, Inc., Class A * | | |
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Ceridian HCM Holding, Inc. * | | |
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CSG Systems International, Inc. | | |
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Dun & Bradstreet Holdings, Inc. | | |
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ExlService Holdings, Inc. * | | |
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Healthcare Services Group, Inc. | | |
Schwab Fundamental Index Funds | Semiannual Report29
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Heidrick & Struggles International, Inc. | | |
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Huron Consulting Group, Inc. * | | |
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KAR Auction Services, Inc. * | | |
Kelly Services, Inc., Class A | | |
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Matthews International Corp., Class A | | |
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Resources Connection, Inc. | | |
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Consumer Discretionary Distribution & Retail 4.8% |
1-800-Flowers.com, Inc., Class A * | | |
Abercrombie & Fitch Co., Class A * | | |
American Eagle Outfitters, Inc. | | |
America's Car-Mart, Inc. * | | |
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Big 5 Sporting Goods Corp. (a) | | |
Boot Barn Holdings, Inc. * | | |
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Camping World Holdings, Inc., Class A (a) | | |
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ContextLogic, Inc., Class A *(a) | | |
Designer Brands, Inc., Class A | | |
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Floor & Decor Holdings, Inc., Class A * | | |
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GameStop Corp., Class A *(a) | | |
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Haverty Furniture Cos., Inc. | | |
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LL Flooring Holdings, Inc. * | | |
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National Vision Holdings, Inc. * | | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
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Petco Health & Wellness Co., Inc. * | | |
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Sally Beauty Holdings, Inc. * | | |
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Sonic Automotive, Inc., Class A | | |
Sportsman's Warehouse Holdings, Inc. * | | |
Stitch Fix, Inc., Class A * | | |
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The Children's Place, Inc. * | | |
The Container Store Group, Inc. * | | |
TravelCenters of America, Inc. * | | |
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Victoria's Secret & Co. * | | |
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Consumer Durables & Apparel 3.8% |
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Century Communities, Inc. | | |
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Ethan Allen Interiors, Inc. | | |
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G-III Apparel Group Ltd. * | | |
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Installed Building Products, Inc. | | |
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Malibu Boats, Inc., Class A * | | |
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Peloton Interactive, Inc., Class A * | | |
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Smith & Wesson Brands, Inc. | | |
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Topgolf Callaway Brands Corp. * | | |
Tupperware Brands Corp. * | | |
Under Armour, Inc., Class A * | | |
Under Armour, Inc., Class C * | | |
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Wolverine World Wide, Inc. | | |
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Adtalem Global Education, Inc. * | | |
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Arcos Dorados Holdings, Inc., Class A | | |
30Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Bright Horizons Family Solutions, Inc. * | | |
Brinker International, Inc. * | | |
Caesars Entertainment, Inc. * | | |
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Choice Hotels International, Inc. | | |
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Cracker Barrel Old Country Store, Inc. | | |
Dave & Buster's Entertainment, Inc. * | | |
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DoorDash, Inc., Class A * | | |
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Graham Holdings Co., Class B | | |
Grand Canyon Education, Inc. * | | |
Hilton Grand Vacations, Inc. * | | |
Hyatt Hotels Corp., Class A * | | |
International Game Technology plc | | |
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Marriott Vacations Worldwide Corp. | | |
Norwegian Cruise Line Holdings Ltd. * | | |
Papa John's International, Inc. | | |
Perdoceo Education Corp. * | | |
Planet Fitness, Inc., Class A * | | |
Red Rock Resorts, Inc., Class A | | |
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SeaWorld Entertainment, Inc. * | | |
Six Flags Entertainment Corp. * | | |
Strategic Education, Inc. | | |
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The Cheesecake Factory, Inc. | | |
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Wyndham Hotels & Resorts, Inc. | | |
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Consumer Staples Distribution & Retail 1.0% |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
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The Chefs' Warehouse, Inc. * | | |
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California Resources Corp. | | |
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Diamond Offshore Drilling, Inc. * | | |
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Expro Group Holdings N.V. * | | |
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Helix Energy Solutions Group, Inc. * | | |
International Seaways, Inc. | | |
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Magnolia Oil & Gas Corp., Class A | | |
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NexTier Oilfield Solutions, Inc. * | | |
Oceaneering International, Inc. * | | |
Oil States International, Inc. * | | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
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REX American Resources Corp. * | | |
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Select Energy Services, Inc., Class A | | |
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Teekay Tankers Ltd., Class A * | | |
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Tsakos Energy Navigation Ltd. | | |
US Silica Holdings, Inc. * | | |
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Weatherford International plc * | | |
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Equity Real Estate Investment Trusts (REITs) 7.9% |
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Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
American Homes 4 Rent, Class A | | |
Americold Realty Trust, Inc. | | |
Apartment Income REIT Corp. | | |
Apple Hospitality REIT, Inc. | | |
Ashford Hospitality Trust, Inc. * | | |
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Broadstone Net Lease, Inc. | | |
CBL & Associates Properties, Inc. (a) | | |
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Corporate Office Properties Trust | | |
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DiamondRock Hospitality Co. | | |
Diversified Healthcare Trust | | |
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Schwab Fundamental Index Funds | Semiannual Report31
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Easterly Government Properties, Inc. | | |
EastGroup Properties, Inc. | | |
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Empire State Realty Trust, Inc., Class A | | |
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Equity LifeStyle Properties, Inc. | | |
Essential Properties Realty Trust, Inc. | | |
Federal Realty Investment Trust | | |
First Industrial Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
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Healthcare Realty Trust, Inc. | | |
Highwoods Properties, Inc. | | |
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Hudson Pacific Properties, Inc. | | |
Independence Realty Trust, Inc. | | |
Industrial Logistics Properties Trust | | |
InvenTrust Properties Corp. | | |
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National Health Investors, Inc. | | |
National Retail Properties, Inc. | | |
National Storage Affiliates Trust | | |
Office Properties Income Trust | | |
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Phillips Edison & Co., Inc. | | |
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Piedmont Office Realty Trust, Inc., Class A | | |
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Retail Opportunity Investments Corp. | | |
Rexford Industrial Realty, Inc. | | |
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Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
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Spirit Realty Capital, Inc. | | |
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Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
Tanger Factory Outlet Centers, Inc. | | |
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The Necessity Retail REIT, Inc. | | |
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Veris Residential, Inc. * | | |
Xenia Hotels & Resorts, Inc. | | |
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A-Mark Precious Metals, Inc. | | |
Apollo Commercial Real Estate Finance, Inc. | | |
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Ares Management Corp., Class A | | |
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Artisan Partners Asset Management, Inc., Class A | | |
B. Riley Financial, Inc. (a) | | |
BGC Partners, Inc., Class A | | |
Blackstone Mortgage Trust, Inc., Class A | | |
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Brightsphere Investment Group, Inc. | | |
BrightSpire Capital, Inc. | | |
Broadmark Realty Capital, Inc. | | |
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Compass Diversified Holdings | | |
Corebridge Financial, Inc. | | |
Credit Acceptance Corp. * | | |
Diamond Hill Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
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Euronet Worldwide, Inc. * | | |
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FactSet Research Systems, Inc. | | |
Federal Agricultural Mortgage Corp., Class C | | |
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Focus Financial Partners, Inc., Class A * | | |
Granite Point Mortgage Trust, Inc. | | |
Green Dot Corp., Class A * | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | |
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Interactive Brokers Group, Inc., Class A | | |
Jackson Financial, Inc., Class A | | |
KKR Real Estate Finance Trust, Inc. | | |
Ladder Capital Corp. REIT | | |
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MarketAxess Holdings, Inc. | | |
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New York Mortgage Trust, Inc. | | |
NMI Holdings, Inc., Class A * | | |
Pagseguro Digital Ltd., Class A * | | |
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PennyMac Financial Services, Inc. | | |
PennyMac Mortgage Investment Trust | | |
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PJT Partners, Inc., Class A | | |
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StepStone Group, Inc., Class A | | |
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TPG RE Finance Trust, Inc. | | |
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Tradeweb Markets, Inc., Class A | | |
Two Harbors Investment Corp. | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
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32Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Food, Beverage & Tobacco 2.8% |
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Brown-Forman Corp., Class B | | |
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Coca-Cola Consolidated, Inc. | | |
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Fresh Del Monte Produce, Inc. | | |
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John B. Sanfilippo & Son, Inc. | | |
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National Beverage Corp. * | | |
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Seneca Foods Corp., Class A * | | |
The Boston Beer Co., Inc., Class A * | | |
The Hain Celestial Group, Inc. * | | |
The Simply Good Foods Co. * | | |
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Health Care Equipment & Services 4.3% |
Acadia Healthcare Co., Inc. * | | |
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AMN Healthcare Services, Inc. * | | |
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Brookdale Senior Living, Inc. * | | |
Community Health Systems, Inc. * | | |
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Cross Country Healthcare, Inc. * | | |
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Globus Medical, Inc., Class A * | | |
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Integra LifeSciences Holdings Corp. * | | |
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Merit Medical Systems, Inc. * | | |
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National HealthCare Corp. | | |
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NextGen Healthcare, Inc. * | | |
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OmniAb, Inc., Class A *(b) | | |
OmniAb, Inc., Class B *(b) | | |
| | |
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Option Care Health, Inc. * | | |
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Pediatrix Medical Group, Inc. * | | |
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Select Medical Holdings Corp. | | |
| | |
| | |
U.S. Physical Therapy, Inc. | | |
| | |
Veeva Systems, Inc., Class A * | | |
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|
Household & Personal Products 1.6% |
| | |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
| | |
Edgewell Personal Care Co. | | |
| | |
Herbalife Nutrition Ltd. * | | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
USANA Health Sciences, Inc. * | | |
| | |
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|
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Ambac Financial Group, Inc. * | | |
American Equity Investment Life Holding Co. | | |
| | |
Argo Group International Holdings Ltd. | | |
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
| | |
| | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
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| | |
| | |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
| | |
Stewart Information Services Corp. | | |
| | |
Universal Insurance Holdings, Inc. | | |
White Mountains Insurance Group Ltd. | | |
| | |
|
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| | |
Alpha Metallurgical Resources, Inc. | | |
| | |
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Schwab Fundamental Index Funds | Semiannual Report33
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
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| | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
| | |
Compass Minerals International, Inc. | | |
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| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mercer International, Inc. | | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
Orion Engineered Carbons S.A. | | |
| | |
| | |
Rayonier Advanced Materials, Inc. * | | |
| | |
| | |
Schnitzer Steel Industries, Inc., Class A | | |
Sensient Technologies Corp. | | |
| | |
| | |
Summit Materials, Inc., Class A * | | |
| | |
| | |
The Scotts Miracle-Gro Co. | | |
| | |
| | |
| | |
Tronox Holdings plc, Class A | | |
| | |
Worthington Industries, Inc. | | |
| | |
|
Media & Entertainment 3.3% |
AMC Entertainment Holdings, Inc., Class A (a) | | |
AMC Networks, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Cinemark Holdings, Inc. * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
| | |
| | |
| | |
iHeartMedia, Inc., Class A * | | |
John Wiley & Sons, Inc., Class A | | |
| | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp. - Liberty Formula One, Class A * | | |
Liberty Media Corp. - Liberty Formula One, Class C * | | |
Lions Gate Entertainment Corp., Class A * | | |
Lions Gate Entertainment Corp., Class B * | | |
Madison Square Garden Entertainment Corp. * | | |
| | |
Pinterest, Inc., Class A * | | |
| | |
| | |
| | |
Sinclair Broadcast Group, Inc., Class A | | |
Sirius XM Holdings, Inc. (a) | | |
Sphere Entertainment Co. * | | |
Spotify Technology S.A. * | | |
| | |
The E.W. Scripps Co., Class A * | | |
The New York Times Co., Class A | | |
The Trade Desk, Inc., Class A * | | |
| | |
| | |
| | |
World Wrestling Entertainment, Inc., Class A | | |
| | |
| | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
Pharmaceuticals, Biotechnology & Life Sciences 2.2% |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
| | |
Charles River Laboratories International, Inc. * | | |
Corcept Therapeutics, Inc. * | | |
Elanco Animal Health, Inc. * | | |
Emergent BioSolutions, Inc. * | | |
| | |
| | |
Halozyme Therapeutics, Inc. * | | |
Horizon Therapeutics plc * | | |
| | |
| | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
Royalty Pharma plc, Class A | | |
| | |
Supernus Pharmaceuticals, Inc. * | | |
| | |
|
34Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Real Estate Management & Development 0.5% |
Cushman & Wakefield plc * | | |
| | |
| | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * | | |
The Howard Hughes Corp. * | | |
The RMR Group, Inc., Class A | | |
Zillow Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
Semiconductors & Semiconductor Equipment 2.0% |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. *(a) | | |
| | |
Kulicke & Soffa Industries, Inc. | | |
Lattice Semiconductor Corp. * | | |
Magnachip Semiconductor Corp. * | | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
SMART Global Holdings, Inc. * | | |
SolarEdge Technologies, Inc. * | | |
| | |
Ultra Clean Holdings, Inc. * | | |
| | |
| | |
| | |
|
|
| | |
Alarm.com Holdings, Inc. * | | |
AppLovin Corp., Class A * | | |
Bentley Systems, Inc., Class B | | |
| | |
| | |
| | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
LiveRamp Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
Palantir Technologies, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Rackspace Technology, Inc. * | | |
RingCentral, Inc., Class A * | | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
|
Technology Hardware & Equipment 4.1% |
| | |
Advanced Energy Industries, Inc. | | |
| | |
| | |
Benchmark Electronics, Inc. | | |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Comtech Telecommunications Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lumentum Holdings, Inc. * | | |
Methode Electronics, Inc. | | |
National Instruments Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
|
Telecommunication Services 0.8% |
| | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
EchoStar Corp., Class A * | | |
Frontier Communications Parent, Inc. * | | |
Iridium Communications, Inc. | | |
Schwab Fundamental Index Funds | Semiannual Report35
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Liberty Latin America Ltd., Class A * | | |
Liberty Latin America Ltd., Class C * | | |
Shenandoah Telecommunications Co. | | |
| | |
|
|
Air Transport Services Group, Inc. * | | |
| | |
American Airlines Group, Inc. * | | |
| | |
| | |
Covenant Logistics Group, Inc. | | |
| | |
| | |
| | |
Genco Shipping & Trading Ltd. | | |
Golden Ocean Group Ltd. *(a) | | |
| | |
Hub Group, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
Star Bulk Carriers Corp. (a) | | |
U-Haul Holding Co. - Non Voting | | |
| | |
| | |
| | |
|
|
| | |
American States Water Co. | | |
Atlantica Sustainable Infrastructure plc | | |
| | |
| | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Clearway Energy, Inc., Class A | | |
Clearway Energy, Inc., Class C | | |
Essential Utilities, Inc. | | |
Hawaiian Electric Industries, Inc. | | |
| | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
ReNew Energy Global PLC, Class A *(a) | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,334,276,950) | |
| | |
SHORT-TERM INVESTMENTS 0.9% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
| | |
Total Short-Term Investments
(Cost $15,511,683) | |
Total Investments in Securities
(Cost $1,349,788,633) | |
| | | CURRENT VALUE/
UNREALIZED
DEPRECIATION
($) |
|
| | | |
Russell 2000 Index, e-mini, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $10,554,708. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Real Estate Investment Trust |
36Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
Equity Real Estate Investment Trusts (REITs) | | | | |
Health Care Equipment & Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
Schwab Fundamental Index Funds | Semiannual Report37
Schwab Fundamental US Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $1,349,788,633) including securities on loan of $10,554,708 | | |
| | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
Income from securities on loan | | |
Variation margin on future contracts | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
38Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental US Small Company Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $7,349) | | |
Interest received from securities - unaffiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on sales of in-kind redemptions - unaffiliated | | |
Net realized losses on futures contracts | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized losses | | |
Increase in net assets resulting from operations | | |
Schwab Fundamental Index Funds | Semiannual Report39
Schwab Fundamental US Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
40Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Fundamental Index Funds | Semiannual Report41
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.1% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
Fortescue Metals Group Ltd. | | |
| | |
| | |
Insurance Australia Group Ltd. | | |
James Hardie Industries plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Raiffeisen Bank International AG * | | |
| | |
| | |
| | |
|
|
| | |
Anheuser-Busch InBev S.A./N.V. | | |
Etablissements Franz Colruyt N.V. | | |
Groupe Bruxelles Lambert N.V. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Algonquin Power & Utilities Corp. | | |
Alimentation Couche-Tard, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Bausch Health Cos., Inc. * | | |
| | |
Canadian Imperial Bank of Commerce | | |
Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Pacific Kansas City Ltd. | | |
Canadian Tire Corp., Ltd., Class A | | |
CCL Industries, Inc., Class B | | |
| | |
| | |
| | |
Constellation Software, Inc. | | |
Crescent Point Energy Corp. | | |
| | |
| | |
| | |
Fairfax Financial Holdings Ltd. | | |
Finning International, Inc. | | |
First Quantum Minerals Ltd. | | |
| | |
| | |
| | |
| | |
| | |
42Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Magna International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Restaurant Brands International, Inc. | | |
RioCan Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
Teck Resources Ltd., Class B | | |
| | |
| | |
| | |
The Toronto-Dominion Bank | | |
| | |
| | |
| | |
West Fraser Timber Co., Ltd. | | |
Wheaton Precious Metals Corp. | | |
| | |
| | |
|
|
AP Moller - Maersk A/S, Class A | | |
AP Moller - Maersk A/S, Class B | | |
| | |
| | |
| | |
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
| | |
| | |
Vestas Wind Systems A/S * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Casino Guichard Perrachon S.A. *(a) | | |
| | |
Cie Generale des Etablissements Michelin S.C.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Eutelsat Communications S.A. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield * | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report43
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Veolia Environnement S.A. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
| | |
Daimler Truck Holding AG * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fresenius Medical Care AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telefonica Deutschland Holding AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
BOC Hong Kong Holdings Ltd. | | |
| | |
CK Hutchison Holdings Ltd. | | |
| | |
Galaxy Entertainment Group Ltd. * | | |
| | |
Henderson Land Development Co., Ltd. | | |
Hong Kong & China Gas Co., Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
| | |
New World Development Co., Ltd. | | |
Orient Overseas International Ltd. | | |
| | |
| | |
| | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., A Shares | | |
Swire Pacific Ltd., B Shares | | |
Techtronic Industries Co., Ltd. | | |
| | |
Wharf Real Estate Investment Co., Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
|
Bank of Ireland Group plc | | |
| | |
| | |
| | |
|
|
| | |
Bank Leumi Le-Israel B.M. | | |
| | |
Israel Discount Bank Ltd., A Shares | | |
Teva Pharmaceutical Industries Ltd. * | | |
| | |
|
|
| | |
Assicurazioni Generali S.p.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mediobanca Banca di Credito Finanziario S.p.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
44Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co., Ltd. | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | |
| | |
Concordia Financial Group Ltd. | | |
Cosmo Energy Holdings Co., Ltd. | | |
Dai Nippon Printing Co., Ltd. | | |
| | |
| | |
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
Daito Trust Construction Co., Ltd. | | |
Daiwa House Industry Co., Ltd. | | |
Daiwa Securities Group, Inc. | | |
Daiwabo Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Electric Power Development Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Furukawa Electric Co., Ltd. | | |
| | |
Hakuhodo DY Holdings, Inc. | | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
| | |
| | |
Hitachi Construction Machinery Co., Ltd. | | |
| | |
| | |
Hokkaido Electric Power Co., Inc. * | | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co., Ltd. | | |
| | |
| | |
Isetan Mitsukoshi Holdings Ltd. | | |
| | |
| | |
Itoham Yonekyu Holdings, Inc. | | |
| | |
J. Front Retailing Co., Ltd. | | |
Japan Exchange Group, Inc. | | |
Japan Post Holdings Co., Ltd. | | |
Japan Post Insurance Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kawasaki Heavy Industries Ltd. | | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kintetsu Group Holdings Co., Ltd. | | |
| | |
| | |
Koito Manufacturing Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
Kyushu Electric Power Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co., Ltd. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
Mitsubishi Materials Corp. | | |
Mitsubishi Motors Corp. * | | |
Mitsubishi Shokuhin Co., Ltd. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report45
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Mitsui Mining & Smelting Co., Ltd. | | |
| | |
Mizuho Financial Group, Inc. | | |
Morinaga Milk Industry Co., Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co., Ltd. | | |
| | |
Nagoya Railroad Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nippon Electric Glass Co., Ltd. | | |
Nippon Light Metal Holdings Co., Ltd. | | |
Nippon Paper Industries Co., Ltd. * | | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co., Ltd. | | |
| | |
| | |
Nitori Holdings Co., Ltd. | | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Ono Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
| | |
Otsuka Holdings Co., Ltd. | | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
Penta-Ocean Construction Co., Ltd. | | |
Persol Holdings Co., Ltd. | | |
Recruit Holdings Co., Ltd. | | |
Renesas Electronics Corp. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Santen Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sekisui Chemical Co., Ltd. | | |
| | |
Seven & i Holdings Co., Ltd. | | |
| | |
| | |
Shikoku Electric Power Co., Inc. * | | |
| | |
| | |
| | |
| | |
Shin-Etsu Chemical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Sohgo Security Services Co., Ltd. | | |
| | |
| | |
| | |
Stanley Electric Co., Ltd. | | |
| | |
| | |
Sumitomo Chemical Co., Ltd. | | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Forestry Co., Ltd. | | |
Sumitomo Heavy Industries Ltd. | | |
Sumitomo Metal Mining Co., Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Realty & Development Co., Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Takeda Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
The Chugoku Electric Power Co., Inc. * | | |
The Kansai Electric Power Co., Inc. | | |
The Yokohama Rubber Co., Ltd. | | |
| | |
| | |
| | |
| | |
Tohoku Electric Power Co., Inc. * | | |
Tokio Marine Holdings, Inc. | | |
| | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
46Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Toyo Seikan Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Yamada Holdings Co., Ltd. | | |
| | |
| | |
Yamato Holdings Co., Ltd. | | |
Yamazaki Baking Co., Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
BNP Paribas Emissions- und Handelsgesellschaft mbH | | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize N.V. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Yara International A.S.A. | | |
| | |
|
|
| | |
PGE Polska Grupa Energetyczna S.A. * | | |
Polski Koncern Naftowy Orlen S.A. | | |
Powszechna Kasa Oszczednosci Bank Polski S.A. | | |
Powszechny Zaklad Ubezpieczen S.A. | | |
| | |
|
|
EDP - Energias de Portugal S.A. | | |
| | |
Jeronimo Martins, SGPS, S.A. | | |
| | |
|
|
| | |
BNK Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Doosan Enerbility Co., Ltd. * | | |
| | |
GS Engineering & Construction Corp. | | |
| | |
Hana Financial Group, Inc. | | |
Hankook Tire & Technology Co., Ltd. | | |
| | |
Hanwha Galleria Co. Ltd. * | | |
| | |
| | |
| | |
Hyundai Engineering & Construction Co., Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Korea Electric Power Corp. * | | |
| | |
Korea Shipbuilding & Offshore Engineering Co., Ltd. * | | |
| | |
Korean Air Lines Co., Ltd. | | |
| | |
Kumho Petrochemical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report47
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Posco International Corp. | | |
| | |
Samsung Electro-Mechanics Co., Ltd. | | |
Samsung Electronics Co., Ltd. | | |
Samsung Fire & Marine Insurance Co., Ltd. | | |
Samsung Life Insurance Co., Ltd. | | |
| | |
| | |
Shinhan Financial Group Co., Ltd. | | |
| | |
SK Innovation Co., Ltd. * | | |
| | |
| | |
Woori Financial Group, Inc. | | |
| | |
|
|
ComfortDelGro Corp., Ltd. | | |
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
Oversea-Chinese Banking Corp., Ltd. | | |
| | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
| | |
| | |
ACS, Actividades de Construccion y Servicios S.A. | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil S.A. | | |
| | |
Naturgy Energy Group S.A. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, A Shares | | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB, S.C.A., B Shares | | |
Svenska Handelsbanken AB, A Shares | | |
| | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont S.A., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG | | |
Logitech International S.A. | | |
| | |
| | |
| | |
Partners Group Holding AG | | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
48Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
The Swatch Group AG, Bearer Shares | | |
| | |
Zurich Insurance Group AG | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
Associated British Foods plc | | |
| | |
| | |
B&M European Value Retail S.A. | | |
| | |
| | |
| | |
| | |
| | |
Berkeley Group Holdings plc | | |
| | |
British American Tobacco plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Direct Line Insurance Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Flutter Entertainment plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Distributions Services plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group plc | | |
Legal & General Group plc | | |
| | |
London Stock Exchange Group plc | | |
| | |
| | |
Marks & Spencer Group plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings plc | | |
| | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group plc | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,618,591,831) | |
|
PREFERRED STOCKS 1.1% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
|
|
Telecom Italia S.p.A. - RSP * | | |
|
|
| | |
Hyundai Motor Co., Ltd. 2nd | | |
| | |
| | |
Samsung Electronics Co., Ltd. | | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $20,595,099) | |
Schwab Fundamental Index Funds | Semiannual Report49
Schwab Fundamental International Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
SHORT-TERM INVESTMENTS 0.8% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
Total Short-Term Investments
(Cost $16,598,178) | |
Total Investments in Securities
(Cost $1,655,785,108) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/16/23 | | | |
| Non-income producing security. |
| All or a portion of this security is on loan. Securities on loan were valued at $15,407,041. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| Global Depositary Receipt |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
50Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $1,655,785,108) including securities on loan of $15,407,041 | | |
| | |
Foreign currency, at value (cost $2,565,305) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report51
Schwab Fundamental International Large Company Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $4,659,910) | | |
Interest received from securities - unaffiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
| Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
52Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report53
Schwab Fundamental International Small Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
54Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 98.9% OF NET ASSETS |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cleanaway Waste Management Ltd. | | |
| | |
| | |
Coronado Global Resources, Inc. | | |
Costa Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
Domino's Pizza Enterprises Ltd. | | |
| | |
| | |
Event Hospitality & Entertainment Ltd. | | |
| | |
FleetPartners Group Ltd. * | | |
Flight Centre Travel Group Ltd. * | | |
| | |
| | |
| | |
Harvey Norman Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Link Administration Holdings Ltd. | | |
| | |
Magellan Financial Group Ltd. | | |
McMillan Shakespeare Ltd. | | |
| | |
| | |
| | |
| | |
Nine Entertainment Co. Holdings Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Platinum Asset Management Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Reliance Worldwide Corp., Ltd. | | |
Sandfire Resources Ltd. * | | |
| | |
| | |
Seven Group Holdings Ltd. | | |
| | |
Silver Lake Resources Ltd. * | | |
Southern Cross Media Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
The Star Entertainment Grp Ltd. * | | |
| | |
| | |
| | |
Virgin Australia Holdings Pty. Ltd. *(a) | | |
| | |
Washington H Soul Pattinson & Co., Ltd. | | |
| | |
Westgold Resources Ltd. * | | |
| | |
| | |
| | |
|
|
| | |
AT&S Austria Technologie & Systemtechnik AG | | |
CA Immobilien Anlagen AG * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report55
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
|
|
Ackermans & van Haaren N.V. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telenet Group Holding N.V. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Ag Growth International, Inc. | | |
| | |
Alamos Gold, Inc., Class A | | |
| | |
Allied Properties Real Estate Investment Trust | | |
| | |
| | |
Artis Real Estate Investment Trust | | |
| | |
| | |
Badger Infrastructure Solutions Ltd. | | |
| | |
| | |
| | |
Boardwalk Real Estate Investment Trust | | |
Bombardier, Inc., Class B * | | |
| | |
Boyd Group Services, Inc. | | |
Brookfield Business Corp., Class A | | |
Brookfield Infrastructure Corp., Class A | | |
Brookfield Reinsurance Ltd. * | | |
Brookfield Renewable Corp., Class A | | |
| | |
| | |
| | |
Canaccord Genuity Group, Inc. | | |
Canada Goose Holdings, Inc. * | | |
Canadian Apartment Properties REIT | | |
Canadian Utilities Ltd., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
CES Energy Solutions Corp. | | |
Chartwell Retirement Residences | | |
Chemtrade Logistics Income Fund | | |
Choice Properties Real Estate Investment Trust | | |
| | |
| | |
Cogeco Communications, Inc. | | |
| | |
Colliers International Group, Inc. | | |
Crombie Real Estate Investment Trust | | |
| | |
Doman Building Materials Group Ltd. | | |
Dorel Industries, Inc., Class B * | | |
Dream Industrial Real Estate Investment Trust | | |
Dream Office Real Estate Investment Trust | | |
Dundee Precious Metals, Inc. | | |
| | |
| | |
Element Fleet Management Corp. | | |
| | |
| | |
| | |
Ensign Energy Services, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
First Capital Real Estate Investment Trust | | |
| | |
Fortuna Silver Mines, Inc. * | | |
| | |
| | |
| | |
| | |
Granite Real Estate Investment Trust | | |
H&R Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
Innergex Renewable Energy, Inc. | | |
| | |
International Petroleum Corp. * | | |
| | |
Killam Apartment Real Estate Investment Trust | | |
Laurentian Bank of Canada | | |
| | |
Martinrea International, Inc. | | |
| | |
| | |
| | |
NorthWest Healthcare Properties Real Estate Investment Trust | | |
| | |
| | |
| | |
Pan American Silver Corp. | | |
Paramount Resources Ltd., Class A | | |
| | |
| | |
Peyto Exploration & Development Corp. | | |
| | |
56Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Precision Drilling Corp. * | | |
Premium Brands Holdings Corp. | | |
Primaris Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
Ritchie Bros. Auctioneers, Inc. | | |
| | |
| | |
Secure Energy Services, Inc. | | |
| | |
| | |
Sienna Senior Living, Inc. | | |
Sleep Country Canada Holdings, Inc. | | |
SmartCentres Real Estate Investment Trust | | |
| | |
| | |
| | |
| | |
| | |
The Descartes Systems Group, Inc. * | | |
| | |
| | |
Torex Gold Resources, Inc. * | | |
| | |
| | |
TransAlta Renewables, Inc. | | |
Transcontinental, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Western Forest Products, Inc. | | |
Westshore Terminals Investment Corp. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Ringkjoebing Landbobank A/S | | |
| | |
| | |
Scandinavian Tobacco Group A/S, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Metsa Board Oyj, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Plastic Omnium S.A. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gaztransport Et Technigaz S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
La Francaise des Jeux SAEM | | |
| | |
| | |
Metropole Television S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report57
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
UbiSoft Entertainment S.A. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Aareal Bank AG, Tender Shares * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Carl Zeiss Meditec AG, Class B | | |
| | |
CompuGroup Medical SE & Co. KgaA | | |
CTS Eventim AG & Co., KGaA * | | |
| | |
Deutsche Pfandbriefbank AG | | |
| | |
| | |
| | |
| | |
DWS Group GmbH & Co. KGaA | | |
| | |
| | |
| | |
| | |
Fraport AG Frankfurt Airport Services Worldwide * | | |
| | |
Grand City Properties S.A. | | |
| | |
Hamburger Hafen und Logistik AG | | |
Heidelberger Druckmaschinen AG * | | |
| | |
| | |
| | |
| | |
Hornbach Holding AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vitesco Technologies Group AG, Class A * | | |
| | |
| | |
| | |
|
|
TT Hellenic Postbank S.A. *(a) | | |
|
|
AAC Technologies Holdings, Inc. * | | |
| | |
| | |
Brightoil Petroleum Holdings Ltd. *(a) | | |
Budweiser Brewing Co. APAC Ltd. | | |
Cathay Pacific Airways Ltd. *(b) | | |
Chow Tai Fook Jewellery Group Ltd. | | |
CITIC Telecom International Holdings Ltd. | | |
CK Infrastructure Holdings Ltd. | | |
Cowell e Holdings, Inc. * | | |
DFI Retail Group Holdings Ltd. | | |
| | |
Fortune Real Estate Investment Trust | | |
Hang Lung Properties Ltd. | | |
| | |
Huabao International Holdings Ltd. | | |
Hysan Development Co., Ltd. | | |
| | |
Jinchuan Group International Resources Co., Ltd. | | |
JS Global Lifestyle Co., Ltd. | | |
Kerry Logistics Network Ltd. | | |
| | |
L'Occitane International S.A. | | |
Luk Fook Holdings International Ltd. | | |
| | |
Melco International Development Ltd. * | | |
| | |
Nexteer Automotive Group Ltd. | | |
| | |
Pacific Basin Shipping Ltd. | | |
| | |
Power Assets Holdings Ltd. | | |
Powerlong Real Estate Holdings Ltd. | | |
| | |
Samsonite International S.A. * | | |
Singamas Container Holdings Ltd. | | |
SITC International Holdings Co., Ltd. | | |
| | |
| | |
Texhong Textile Group Ltd. | | |
The Bank of East Asia Ltd. | | |
The United Laboratories International Holdings Ltd. | | |
| | |
Truly International Holdings Ltd. | | |
United Energy Group Ltd. * | | |
Value Partners Group Ltd. | | |
Vitasoy International Holdings Ltd. | | |
58Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Want Want China Holdings Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Irish Continental Group plc | | |
| | |
| | |
| | |
|
|
Alony Hetz Properties & Investments Ltd. | | |
| | |
| | |
Bezeq The Israeli Telecommunication Corp., Ltd. | | |
| | |
Clal Insurance Enterprises Holdings Ltd. * | | |
Delek Automotive Systems Ltd. | | |
| | |
| | |
| | |
| | |
Formula Systems 1985 Ltd. | | |
| | |
Harel Insurance Investments & Financial Services Ltd. | | |
| | |
| | |
Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
Neto Malinda Trading Ltd. * | | |
| | |
| | |
Partner Communications Co., Ltd. * | | |
| | |
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. | | |
| | |
| | |
| | |
The First International Bank of Israel Ltd. | | |
The Phoenix Holdings Ltd. | | |
Tower Semiconductor Ltd. * | | |
| | |
|
|
| | |
Alitalia - Linee Aeree Italiane S.p.A. *(a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Banca Monte dei Paschi di Siena S.p.A. * | | |
Banca Popolare di Sondrio S.p.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Danieli & C Officine Meccaniche S.p.A. | | |
Davide Campari-Milano N.V. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco S.p.A. | | |
Infrastrutture Wireless Italiane S.p.A. | | |
| | |
| | |
| | |
| | |
| | |
MFE-MediaForEurope N.V., Class A | | |
MFE-MediaForEurope N.V., Class B | | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica S.p.A. | | |
| | |
| | |
Salvatore Ferragamo S.p.A. | | |
| | |
| | |
| | |
UnipolSai Assicurazioni S.p.A. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Advance Residence Investment Corp. | | |
| | |
AEON Financial Service Co., Ltd. | | |
| | |
| | |
AEON REIT Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Arcland Sakamoto Co., Ltd. | | |
Schwab Fundamental Index Funds | Semiannual Report59
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
Asahi Diamond Industrial Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
BayCurrent Consulting, Inc. | | |
| | |
Bell System24 Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Canon Marketing Japan, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Chugoku Marine Paints Ltd. | | |
| | |
| | |
| | |
| | |
Comforia Residential REIT, Inc. | | |
Cosmos Pharmaceutical Corp. | | |
Create SD Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Daiki Aluminium Industry Co., Ltd. | | |
Daikokutenbussan Co., Ltd. | | |
| | |
| | |
Daishi Hokuetsu Financial Group, Inc. | | |
Daito Pharmaceutical Co., Ltd. | | |
Daiwa House REIT Investment Corp. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Living Investments Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doutor Nichires Holdings Co., Ltd. | | |
| | |
| | |
DyDo Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Foster Electric Co., Ltd. | | |
| | |
Frontier Real Estate Investment Corp. | | |
| | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
| | |
Fuji Seal International, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Fukuoka Financial Group, Inc. | | |
| | |
Fukuyama Transporting Co., Ltd. | | |
| | |
Fuyo General Lease Co., Ltd. | | |
Gakken Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GungHo Online Entertainment, Inc. | | |
| | |
| | |
H.U. Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Harmonic Drive Systems, Inc. | | |
| | |
| | |
Heiwa Real Estate Co., Ltd. | | |
| | |
| | |
| | |
Hirose Electric Co., Ltd. | | |
Hisamitsu Pharmaceutical Co., Inc. | | |
| | |
| | |
| | |
Hokuhoku Financial Group, Inc. | | |
Hokuriku Electric Power Co. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
60Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
Inaba Denki Sangyo Co., Ltd. | | |
| | |
Industrial & Infrastructure Fund Investment Corp. | | |
| | |
Internet Initiative Japan, Inc. | | |
Invincible Investment Corp. | | |
Iriso Electronics Co., Ltd. | | |
Ishihara Sangyo Kaisha Ltd. | | |
| | |
| | |
Itochu Techno-Solutions Corp. | | |
| | |
| | |
| | |
| | |
Japan Airport Terminal Co., Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
| | |
Japan Hotel REIT Investment Corp. | | |
| | |
Japan Logistics Fund, Inc. | | |
Japan Metropolitan Fund Invest | | |
Japan Petroleum Exploration Co., Ltd. | | |
Japan Post Bank Co., Ltd. | | |
Japan Prime Realty Investment Corp. | | |
Japan Real Estate Investment Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kaga Electronics Co., Ltd. | | |
| | |
| | |
Kaken Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kanto Denka Kogyo Co., Ltd. | | |
| | |
| | |
Keihan Holdings Co., Ltd. | | |
| | |
| | |
Keisei Electric Railway Co., Ltd. | | |
Kenedix Office Investment Corp. | | |
Kenedix Residential Next Investment Corp. | | |
Kenedix Retail REIT Corp. | | |
| | |
| | |
Kissei Pharmaceutical Co., Ltd. | | |
| | |
| | |
Kobayashi Pharmaceutical Co., Ltd. | | |
| | |
Koei Tecmo Holdings Co., Ltd. | | |
| | |
| | |
Kokusai Pulp & Paper Co., Ltd. | | |
| | |
| | |
| | |
| | |
Konoike Transport Co., Ltd. | | |
| | |
| | |
Kumiai Chemical Industry Co., Ltd. | | |
| | |
| | |
Kusuri no Aoki Holdings Co., Ltd. | | |
| | |
| | |
Kyokuto Kaihatsu Kogyo Co., Ltd. | | |
| | |
Kyoritsu Maintenance Co., Ltd. | | |
| | |
| | |
Kyushu Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Makino Milling Machine Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
McDonald's Holdings Co., Japan Ltd. | | |
| | |
Mebuki Financial Group, Inc. | | |
| | |
Megmilk Snow Brand Co., Ltd. | | |
| | |
Meiko Electronics Co., Ltd. | | |
| | |
| | |
| | |
Mimasu Semiconductor Industry Co., Ltd. | | |
| | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Logisnext Co., Ltd. | | |
Mitsubishi Logistics Corp. | | |
Mitsubishi Pencil Co., Ltd. | | |
| | |
Mitsui E&S Holdings Co., Ltd. * | | |
| | |
Mitsui Matsushima Holdings Co., Ltd. | | |
Mitsui-Soko Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
Mochida Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
Mori Hills Reit Investment Corp. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report61
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Musashi Seimitsu Industry Co., Ltd. | | |
| | |
| | |
| | |
Nankai Electric Railway Co., Ltd. | | |
NEC Networks & System Integration Corp. | | |
NET One Systems Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nihon M&A Center Holdings, Inc. | | |
Nihon Parkerizing Co., Ltd. | | |
| | |
Nikkon Holdings Co., Ltd. | | |
| | |
Nippon Accommodations Fund, Inc. | | |
Nippon Building Fund, Inc. | | |
| | |
| | |
Nippon Coke & Engineering Co., Ltd. * | | |
| | |
Nippon Densetsu Kogyo Co., Ltd. | | |
| | |
Nippon Kanzai Holdings Co., Ltd. | | |
| | |
| | |
Nippon Paint Holdings Co., Ltd. | | |
Nippon Prologis REIT, Inc. | | |
NIPPON REIT Investment Corp. | | |
| | |
Nippon Sanso Holdings Corp. | | |
Nippon Sheet Glass Co., Ltd. * | | |
Nippon Shinyaku Co., Ltd. | | |
Nippon Shokubai Co., Ltd. | | |
| | |
Nippon Thompson Co., Ltd. | | |
Nippon Yakin Kogyo Co., Ltd. | | |
| | |
Nishimatsu Construction Co., Ltd. | | |
Nishimatsuya Chain Co., Ltd. | | |
Nishi-Nippon Financial Holdings, Inc. | | |
Nishi-Nippon Railroad Co., Ltd. | | |
Nishio Rent All Co., Ltd. | | |
| | |
| | |
| | |
Nittetsu Mining Co., Ltd. | | |
| | |
| | |
Noevir Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
Nomura Real Estate Master Fund, Inc. | | |
| | |
| | |
| | |
| | |
NS United Kaiun Kaisha Ltd. | | |
| | |
| | |
| | |
NTT UD REIT Investment Corp. | | |
| | |
Odakyu Electric Railway Co., Ltd. | | |
| | |
| | |
Okasan Securities Group, Inc. | | |
Oki Electric Industry Co., Ltd. | | |
Okinawa Cellular Telephone Co. | | |
| | |
| | |
| | |
Onward Holdings Co., Ltd. | | |
Open House Group Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pacific Industrial Co., Ltd. | | |
Paramount Bed Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Pola Orbis Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Retail Partners Co., Ltd. | | |
| | |
Rohto Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Saibu Gas Holdings Co., Ltd. | | |
| | |
Sakai Chemical Industry Co., Ltd. | | |
Sakai Moving Service Co., Ltd. | | |
| | |
| | |
| | |
| | |
Sanken Electric Co., Ltd. | | |
Sanki Engineering Co., Ltd. | | |
| | |
Sanoh Industrial Co., Ltd. | | |
Sanyo Chemical Industries Ltd. | | |
| | |
Sanyo Special Steel Co., Ltd. | | |
| | |
| | |
| | |
| | |
SCREEN Holdings Co., Ltd. | | |
| | |
| | |
62Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Senko Group Holdings Co., Ltd. | | |
Senshu Ikeda Holdings, Inc. | | |
| | |
| | |
Shibaura Machine Co., Ltd. | | |
Shindengen Electric Manufacturing Co., Ltd. | | |
Shin-Etsu Polymer Co., Ltd. | | |
Shinko Electric Industries Co., Ltd. | | |
Shinmaywa Industries Ltd. | | |
Ship Healthcare Holdings, Inc. | | |
| | |
SHO-BOND Holdings Co., Ltd. | | |
| | |
| | |
Sinfonia Technology Co., Ltd. | | |
SKY Perfect JSAT Holdings, Inc. | | |
Skylark Holdings Co., Ltd. * | | |
| | |
| | |
Square Enix Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
Sumitomo Bakelite Co., Ltd. | | |
Sumitomo Mitsui Construction Co., Ltd. | | |
Sumitomo Osaka Cement Co., Ltd. | | |
Sumitomo Pharma Co., Ltd. | | |
Sumitomo Seika Chemicals Co., Ltd. | | |
Sun Frontier Fudousan Co., Ltd. | | |
| | |
SWCC Showa Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
Taisho Pharmaceutical Holdings Co., Ltd. | | |
| | |
Takamatsu Construction Group Co., Ltd. | | |
| | |
| | |
| | |
Takara Standard Co., Ltd. | | |
Takasago Thermal Engineering Co., Ltd. | | |
Takeuchi Manufacturing Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Japan Steel Works Ltd. | | |
| | |
The Japan Wool Textile Co., Ltd. | | |
| | |
| | |
| | |
| | |
The Nisshin Oillio Group Ltd. | | |
The Ogaki Kyoritsu Bank Ltd. | | |
The Okinawa Electric Power Co., Inc. * | | |
| | |
The San-in Godo Bank Ltd. | | |
| | |
The Sumitomo Warehouse Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tokai Tokyo Financial Holdings, Inc. | | |
| | |
Tokushu Tokai Paper Co., Ltd. | | |
| | |
Tokyo Ohka Kogyo Co., Ltd. | | |
| | |
Tokyo Steel Manufacturing Co., Ltd. | | |
| | |
Tokyu Construction Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Towa Pharmaceutical Co., Ltd. | | |
Toyo Construction Co., Ltd. | | |
Toyo Ink SC Holdings Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tsubaki Nakashima Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Super Markets Holdings, Inc. | | |
United Urban Investment Corp. | | |
| | |
| | |
| | |
| | |
Schwab Fundamental Index Funds | Semiannual Report63
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Warabeya Nichiyo Holdings Co., Ltd. | | |
Welcia Holdings Co., Ltd. | | |
| | |
| | |
| | |
Yachiyo Industry Co., Ltd. | | |
| | |
Yamaguchi Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Yodogawa Steel Works Ltd. | | |
Yokogawa Bridge Holdings Corp. | | |
| | |
| | |
Yoshinoya Holdings Co., Ltd. | | |
| | |
| | |
Zensho Holdings Co., Ltd. | | |
| | |
ZERIA Pharmaceutical Co., Ltd. | | |
| | |
| | |
| | |
|
|
Espirito Santo Financial Group S.A. *(a) | | |
|
|
| | |
| | |
AMG Advanced Metallurgical Group N.V. | | |
| | |
| | |
| | |
BE Semiconductor Industries N.V. | | |
| | |
Eurocommercial Properties N.V. CVA | | |
| | |
| | |
| | |
| | |
| | |
Just Eat Takeaway.com N.V * | | |
Koninklijke BAM Groep N.V. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Auckland International Airport Ltd. * | | |
| | |
| | |
| | |
| | |
Fisher & Paykel Healthcare Corp., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Gjensidige Forsikring A.S.A. | | |
| | |
Kongsberg Automotive A.S.A. * | | |
| | |
Leroy Seafood Group A.S.A. | | |
| | |
| | |
| | |
Schibsted A.S.A., A Shares | | |
Schibsted A.S.A., B Shares | | |
| | |
| | |
SpareBank 1 SR-Bank A.S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Wallenius Wilhelmsen A.S.A. | | |
| | |
|
|
| | |
| | |
| | |
| | |
Bank Polska Kasa Opieki S.A. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Jastrzebska Spolka Weglowa S.A. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Santander Bank Polska S.A. | | |
64Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Tauron Polska Energia S.A. * | | |
| | |
|
|
CTT-Correios de Portugal S.A. | | |
| | |
| | |
REN - Redes Energeticas Nacionais, SGPS, S.A. | | |
| | |
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|
|
Aekyung Chemical Co., Ltd. | | |
| | |
| | |
Asia Paper Manufacturing Co., Ltd. | | |
| | |
| | |
| | |
Celltrion Healthcare Co., Ltd. | | |
| | |
| | |
Chong Kun Dang Pharmaceutical Corp. | | |
| | |
| | |
| | |
| | |
Daeduck Electronics Co., Ltd. | | |
Daehan Flour Mill Co., Ltd. | | |
| | |
Daesang Holdings Co., Ltd. | | |
Daewoo Engineering & Construction Co., Ltd. * | | |
Daewoo Shipbuilding & Marine Engineering Co., Ltd. * | | |
| | |
| | |
DGB Financial Group, Inc. | | |
| | |
Dongjin Semichem Co., Ltd. | | |
Dongkuk Steel Mill Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Green Cross Holdings Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hanshin Construction Co., Ltd. | | |
Hansol Chemical Co., Ltd. | | |
| | |
| | |
Hanwha Aerospace Co., Ltd. | | |
Hanwha General Insurance Co., Ltd. * | | |
Hanwha Life Insurance Co., Ltd. * | | |
| | |
| | |
HDC Hyundai Development Co-Engineering & Construction, Class E | | |
| | |
| | |
| | |
Hyosung Advanced Materials Corp. | | |
| | |
| | |
Hyosung Heavy Industries Corp. * | | |
| | |
Hyundai Construction Equipment Co., Ltd. | | |
| | |
Hyundai Department Store Co., Ltd. | | |
Hyundai Doosan Infracore Co., Ltd. | | |
Hyundai Elevator Co., Ltd. | | |
| | |
Hyundai Greenfood Co., Ltd. | | |
Hyundai Heavy Industries Co., Ltd. * | | |
Hyundai Mipo Dockyard Co., Ltd. * | | |
Hyundai Rotem Co., Ltd. * | | |
| | |
| | |
| | |
| | |
JB Financial Group Co., Ltd. | | |
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| | |
KEPCO Plant Service & Engineering Co., Ltd. | | |
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KIWOOM Securities Co., Ltd. | | |
| | |
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| | |
Korea Aerospace Industries Ltd. | | |
Korea Electric Terminal Co., Ltd. | | |
Korea Investment Holdings Co., Ltd. | | |
| | |
Korea Petrochemical Ind Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Kwang Dong Pharmaceutical Co., Ltd. | | |
Kyeryong Construction Industrial Co., Ltd. | | |
LG Energy Solution Ltd. * | | |
| | |
Lotte Chilsung Beverage Co., Ltd. | | |
| | |
LOTTE Fine Chemical Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Meritz Financial Group, Inc. * | | |
Mirae Asset Securities Co., Ltd. | | |
| | |
| | |
| | |
NH Investment & Securities Co., Ltd. | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report65
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
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| | |
Samsung Engineering Co., Ltd. * | | |
Samsung Heavy Industries Co., Ltd. * | | |
Samsung Securities Co., Ltd. | | |
| | |
| | |
| | |
| | |
Seah Besteel Holdings Corp. | | |
| | |
SeAH Steel Holdings Corp. | | |
Sebang Global Battery Co., Ltd. | | |
| | |
| | |
Seohee Construction Co., Ltd. | | |
Seoul Semiconductor Co., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
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| | |
| | |
Songwon Industrial Co., Ltd. | | |
| | |
| | |
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| | |
| | |
Youngone Holdings Co., Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
Capitaland Investment Ltd. | | |
| | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
Keppel Infrastructure Trust | | |
Manulife US Real Estate Investment Trust | | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Suntec Real Estate Investment Trust | | |
| | |
| | |
|
|
Abengoa S.A., B Shares *(a) | | |
| | |
| | |
Atresmedia Corp de Medios de Comunicaion S.A. | | |
| | |
Caja de Ahorros del Mediterraneo *(a) | | |
| | |
Cia de Distribucion Integral Logista Holdings S.A. | | |
| | |
Construcciones y Auxiliar de Ferrocarriles S.A. | | |
Corp. ACCIONA Energias Renovables S.A. * | | |
| | |
Ence Energia y Celulosa S.A. | | |
| | |
| | |
| | |
| | |
Inmobiliaria Colonial Socimi S.A. | | |
Linea Directa Aseguradora S.A. Cia de Seguros y Reaseguros | | |
Mediaset Espana Comunicacion S.A. * | | |
Melia Hotels International S.A. * | | |
Merlin Properties Socimi S.A. | | |
Obrascon Huarte Lain S.A. * | | |
Prosegur Cia de Seguridad S.A. | | |
| | |
| | |
| | |
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|
|
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| | |
| | |
| | |
66Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
Coor Service Management Holding AB | | |
| | |
| | |
Electrolux Professional AB, B Shares | | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
L E Lundbergfortagen AB, B Shares | | |
Lagercrantz Group AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
New Wave Group AB, B Shares | | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samhallsbyggnadsbolaget i Norden AB (b) | | |
Samhallsbyggnadsbolaget i Norden AB, Class D | | |
| | |
Scandic Hotels Group AB * | | |
| | |
Storskogen Group AB, B Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
| | |
Viaplay Group AB, B Shares * | | |
| | |
| | |
|
|
Accelleron Industries AG * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
Burckhardt Compression Holding AG | | |
| | |
| | |
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| | |
| | |
| | |
| | |
| | |
Schweiter Technologies AG | | |
| | |
| | |
| | |
| | |
St. Galler Kantonalbank AG | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Babcock International Group plc * | | |
Bank of Georgia Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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| | |
| | |
| | |
| | |
| | |
Crest Nicholson Holdings plc | | |
Schwab Fundamental Index Funds | Semiannual Report67
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Dechra Pharmaceuticals plc | | |
| | |
| | |
| | |
| | |
| | |
Diversified Energy Co., plc | | |
| | |
| | |
| | |
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| | |
| | |
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| | |
| | |
| | |
Great Portland Estates plc | | |
| | |
| | |
Gulf Keystone Petroleum Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
Intermediate Capital Group plc | | |
International Consolidated Airlines Group S.A. * | | |
| | |
| | |
| | |
| | |
| | |
Jupiter Fund Management plc | | |
| | |
| | |
| | |
| | |
LondonMetric Property plc | | |
| | |
| | |
| | |
Mediclinic International plc | | |
Mitchells & Butlers plc * | | |
| | |
| | |
| | |
Moneysupermarket.com Group plc | | |
Morgan Advanced Materials plc | | |
| | |
National Express Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Paragon Banking Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Primary Health Properties plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rolls-Royce Holdings plc * | | |
| | |
| | |
Sabre Insurance Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering plc | | |
Spire Healthcare Group plc * | | |
Spirent Communications plc | | |
| | |
| | |
| | |
| | |
| | |
The British Land Co., plc | | |
The Restaurant Group plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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| | |
Watches of Switzerland Group plc * | | |
68Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $505,006,660) | |
|
PREFERRED STOCKS 0.2% OF NET ASSETS |
|
|
Draegerwerk AG & Co. KGaA | | |
| | |
| | |
| | |
|
|
Danieli & C Officine Meccaniche S.p.A. - RSP | | |
Total Preferred Stocks
(Cost $856,302) | |
|
RIGHTS 0.0% OF NET ASSETS |
|
|
|
| | |
|
|
Keppel Infrastructure Trust |
expires 05/10/23, strike SGD 0.47 *(a) | | |
|
|
|
| | |
Total Rights
(Cost $13,379) | |
|
WARRANTS 0.0% OF NET ASSETS |
|
|
|
| | |
| |
| | |
SHORT-TERM INVESTMENTS 0.5% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (c)(d) | | |
Total Short-Term Investments
(Cost $2,715,013) | |
Total Investments in Securities
(Cost $508,591,354) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/16/23 | | | |
| Non-income producing security. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| All or a portion of this security is on loan. Securities on loan were valued at $2,453,323. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
| |
Schwab Fundamental Index Funds | Semiannual Report69
Schwab Fundamental International Small Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
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| | | | |
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| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying
securities held by the mutual funds, which could be Level 1, Level 2 or Level 3.
70Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $508,591,354) including securities on loan of $2,453,323 | | |
Foreign currency, at value (cost $498,445) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Fundamental Index Funds | Semiannual Report71
Schwab Fundamental International Small Company Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,461,308) | | |
Interest received from securities - unaffiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Professional fees associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
72Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental International Small Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Fundamental Index Funds | Semiannual Report73
Schwab Fundamental Emerging Markets Large Company Index Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
74Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | |
COMMON STOCKS 95.5% OF NET ASSETS |
|
|
| | |
B3 S.A. - Brasil Bolsa Balcao | | |
| | |
| | |
Banco Santander Brasil S.A. | | |
| | |
Centrais Eletricas Brasileiras S.A. | | |
Cia de Saneamento Basico do Estado de Sao Paulo * | | |
Cia Energetica de Minas Gerais | | |
Companhia Siderurgica Nacional S.A. | | |
| | |
Itau Unibanco Holding S.A. | | |
| | |
Natura & Co. Holding S.A. * | | |
| | |
| | |
| | |
Ultrapar Participacoes S.A. | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
|
Agile Group Holdings Ltd. * | | |
Agricultural Bank of China Ltd., A Shares | | |
Agricultural Bank of China Ltd., H Shares | | |
Alibaba Group Holding Ltd. * | | |
Aluminum Corp. of China Ltd., A Shares | | |
Aluminum Corp. of China Ltd., H Shares | | |
Anhui Conch Cement Co., Ltd., A Shares | | |
Anhui Conch Cement Co., Ltd., H Shares | | |
ANTA Sports Products Ltd. | | |
BAIC Motor Corp., Ltd., H Shares | | |
| | |
Bank of China Ltd., A Shares | | |
Bank of China Ltd., H Shares | | |
Bank of Communications Co., Ltd., A Shares | | |
Bank of Communications Co., Ltd., H Shares | | |
Baoshan Iron & Steel Co., Ltd., A Shares | | |
Beijing Enterprises Holdings Ltd. | | |
| | |
| | |
| | |
China Cinda Asset Management Co., Ltd., H Shares | | |
China CITIC Bank Corp., Ltd., A Shares | | |
China CITIC Bank Corp., Ltd., H Shares | | |
China Communications Services Corp., Ltd., H Shares | | |
China Construction Bank Corp., A Shares | | |
China Construction Bank Corp., H Shares | | |
China Everbright Bank Co., Ltd., A Shares | | |
China Everbright Bank Co., Ltd., H Shares | | |
China Everbright Environment Group Ltd. | | |
China Evergrande Group *(a) | | |
| | |
China Hongqiao Group Ltd. | | |
China Jinmao Holdings Group Ltd. | | |
China Life Insurance Co., Ltd., H Shares | | |
China Mengniu Dairy Co., Ltd. * | | |
China Merchants Bank Co., Ltd., A Shares | | |
China Merchants Bank Co., Ltd., H Shares | | |
China Minsheng Banking Corp., Ltd., A Shares | | |
China Minsheng Banking Corp., Ltd., H Shares | | |
China National Building Material Co., Ltd., H Shares | | |
China Overseas Land & Investment Ltd. | | |
China Pacific Insurance Group Co., Ltd., A Shares | | |
China Pacific Insurance Group Co., Ltd., H Shares | | |
China Petroleum & Chemical Corp., A Shares | | |
China Petroleum & Chemical Corp., H Shares | | |
China Railway Group Ltd., A Shares | | |
China Railway Group Ltd., H Shares | | |
China Resources Cement Holdings Ltd. | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Resources Power Holdings Co., Ltd. | | |
China Shenhua Energy Co., Ltd., A Shares | | |
China Shenhua Energy Co., Ltd., H Shares | | |
China State Construction Engineering Corp., Ltd., A Shares | | |
China Taiping Insurance Holdings Co., Ltd. | | |
China Tower Corp., Ltd., H Shares | | |
China United Network Communications Ltd., A Shares | | |
China Vanke Co., Ltd., A Shares | | |
China Vanke Co., Ltd., H Shares | | |
| | |
COSCO Shipping Holdings Co., Ltd., A Shares | | |
COSCO SHIPPING Holdings Co., Ltd., H Shares | | |
Country Garden Holdings Co., Ltd. | | |
CRRC Corp., Ltd., A Shares | | |
Schwab Fundamental Index Funds | Semiannual Report75
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
CRRC Corp., Ltd., H Shares | | |
CSPC Pharmaceutical Group Ltd. | | |
Dongfeng Motor Group Co., Ltd., H Shares | | |
| | |
| | |
GCL-Poly Energy Holdings Ltd * | | |
Geely Automobile Holdings Ltd. | | |
Guangdong Investment Ltd. | | |
Guangzhou R&F Properties Co., Ltd., H Shares * | | |
Haier Smart Home Co., Ltd., A Shares | | |
Haier Smart Home Co., Ltd., H Shares | | |
Hengan International Group Co., Ltd. | | |
Huaneng Power International, Inc., A Shares * | | |
Huaneng Power International, Inc., H Shares * | | |
Industrial & Commercial Bank of China Ltd., A Shares | | |
Industrial & Commercial Bank of China Ltd., H Shares | | |
Industrial Bank Co., Ltd., A Shares | | |
| | |
Jiangxi Copper Co., Ltd., A Shares | | |
Jiangxi Copper Co., Ltd., H Shares | | |
| | |
| | |
Kweichow Moutai Co., Ltd., A Shares | | |
Legend Holdings Corp., H Shares | | |
Longfor Group Holdings Ltd. | | |
| | |
| | |
| | |
New China Life Insurance Co., Ltd., A Shares | | |
New China Life Insurance Co., Ltd., H Shares | | |
Nine Dragons Paper Holdings Ltd. | | |
PetroChina Co., Ltd., A Shares | | |
PetroChina Co., Ltd., H Shares | | |
PICC Property & Casualty Co., Ltd., H Shares | | |
Ping An Bank Co., Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., A Shares | | |
Ping An Insurance Group Co. of China Ltd., H Shares | | |
Postal Savings Bank of China Co., Ltd., A Shares | | |
Postal Savings Bank of China Co., Ltd., H Shares | | |
SAIC Motor Corp., Ltd., A Shares | | |
| | |
Shanghai Pudong Development Bank Co., Ltd., A Shares | | |
Shenzhou International Group Holdings Ltd. | | |
Sinopharm Group Co., Ltd., H Shares | | |
Sunny Optical Technology Group Co., Ltd. | | |
| | |
The People's Insurance Co. Group of China Ltd., A Shares | | |
The People's Insurance Co. Group of China Ltd., H Shares | | |
Tingyi Cayman Islands Holding Corp. | | |
| | |
| | |
Vipshop Holdings Ltd., ADR * | | |
Weichai Power Co., Ltd., A Shares | | |
Weichai Power Co., Ltd., H Shares | | |
| | |
Yankuang Energy Group Co., Ltd., A Shares | | |
Yankuang Energy Group Co., Ltd., H Shares | | |
| | |
Zhongsheng Group Holdings Ltd. | | |
Zijin Mining Group Co., Ltd., A Shares | | |
Zijin Mining Group Co., Ltd., H Shares | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
|
|
Alpha Services and Holdings S.A. * | | |
Hellenic Telecommunications Organization S.A. | | |
| | |
|
|
MOL Hungarian Oil & Gas plc | | |
| | |
| | |
|
|
| | |
Bharat Petroleum Corp., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hindustan Petroleum Corp., Ltd. | | |
| | |
Housing Development Finance Corp., Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp., Ltd. | | |
| | |
Power Finance Corp., Ltd. | | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
76Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
Tata Consultancy Services Ltd. | | |
| | |
Tata Motors Ltd., A Shares, DVR * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
PT Astra International Tbk | | |
| | |
PT Bank Mandiri (Persero) Tbk | | |
PT Bank Rakyat Indonesia (Persero) Tbk | | |
PT Telkom Indonesia (Persero) Tbk | | |
| | |
| | |
|
|
Kuwait Finance House KSCP | | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
|
| | |
CIMB Group Holdings Berhad | | |
| | |
| | |
Petronas Chemicals Group Berhad | | |
| | |
| | |
| | |
| | |
|
|
Alfa S.A.B. de C.V., A Shares | | |
America Movil S.A.B. de C.V. | | |
Cemex S.A.B. de C.V., Series CPO * | | |
Fomento Economico Mexicano S.A.B. de C.V. | | |
Grupo Bimbo S.A.B. de C.V., Series A | | |
Grupo Financiero Banorte S.A.B. de C.V., O Shares | | |
Grupo Mexico S.A.B. de C.V., Series B | | |
Grupo Televisa S.A.B., Series CPO | | |
Orbia Advance Corp. S.A.B. de C.V. | | |
Wal-Mart de Mexico S.A.B. de C.V. | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Saudi Basic Industries Corp. | | |
| | |
| | |
| | |
Yanbu National Petrochemical Co. | | |
| | |
|
|
| | |
Anglo American Platinum Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Impala Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
ASE Technology Holding Co., Ltd. | | |
| | |
| | |
| | |
Catcher Technology Co., Ltd. | | |
Cathay Financial Holding Co., Ltd. | | |
Chailease Holding Co., Ltd. | | |
China Development Financial Holding Corp. | | |
| | |
Chunghwa Telecom Co., Ltd. | | |
| | |
CTBC Financial Holding Co., Ltd. | | |
| | |
E.Sun Financial Holding Co., Ltd. | | |
Evergreen Marine Corp., Ltd. | | |
Far Eastern New Century Corp. | | |
First Financial Holding Co., Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
| | |
Foxconn Technology Co., Ltd. | | |
Fubon Financial Holding Co., Ltd. | | |
Hon Hai Precision Industry Co., Ltd. | | |
| | |
| | |
| | |
Largan Precision Co., Ltd. | | |
Schwab Fundamental Index Funds | Semiannual Report77
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
Mega Financial Holding Co., Ltd. | | |
Micro-Star International Co., Ltd. | | |
| | |
Novatek Microelectronics Corp. | | |
| | |
| | |
Powertech Technology, Inc. | | |
President Chain Store Corp. | | |
| | |
Shin Kong Financial Holding Co., Ltd. | | |
Synnex Technology International Corp. | | |
| | |
Taiwan Cooperative Financial Holding Co., Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | |
Uni-President Enterprises Corp. | | |
United Microelectronics Corp. * | | |
| | |
| | |
| | |
| | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co., Ltd. | | |
Zhen Ding Technology Holding Ltd. | | |
| | |
|
|
Advanced Info Service PCL NVDR | | |
| | |
Charoen Pokphand Foods PCL NVDR | | |
| | |
| | |
| | |
PTT Exploration & Production PCL NVDR | | |
PTT Global Chemical PCL NVDR | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
BIM Birlesik Magazalar A/S | | |
Eregli Demir ve Celik Fabrikalari T.A.S. * | | |
Haci Omer Sabanci Holding A/S | | |
| | |
| | |
Turkcell Iletisim Hizmetleri A/S | | |
Turkiye Is Bankasi A/S, Class C | | |
Turkiye Petrol Rafinerileri A/S | | |
| | |
|
| | |
United Arab Emirates 1.1% |
Abu Dhabi Commercial Bank PJSC | | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
First Abu Dhabi Bank PJSC | | |
| | |
Total Common Stocks
(Cost $583,204,086) | |
|
PREFERRED STOCKS 3.8% OF NET ASSETS |
|
|
| | |
Centrais Eletricas Brasileiras S.A., B Shares | | |
Cia Energetica de Minas Gerais | | |
Cia Paranaense de Energia, B Shares | | |
| | |
Itau Unibanco Holding S.A. | | |
| | |
| | |
| | |
|
|
| | |
Total Preferred Stocks
(Cost $22,364,706) | |
Total Investments in Securities
(Cost $605,568,792) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI Emerging Markets Index, expires 06/16/23 | | | |
| Non-income producing security. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| American Depositary Receipt |
| Differential Voting Rights |
| Non-Voting Depositary Receipt |
78Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Level 3 amount shown includes securities determined to have no value at April 30, 2023. |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Schwab Fundamental Index Funds | Semiannual Report79
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - unaffiliated (cost $605,568,792) | | |
| | |
Foreign currency, at value (cost $923,634) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
Variation margin on future contracts | | |
| | |
|
|
| | |
Foreign capital gains tax | | |
| | |
| | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
| | |
| | |
80Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,055,169) | | |
Interest received from securities - unaffiliated | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - unaffiliated (net of foreign capital gains tax paid of $228,424) | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of $101,550) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab Fundamental Index Funds | Semiannual Report81
Schwab Fundamental Emerging Markets Large Company Index Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
82Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
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 S&P 500 Index Fund | |
Schwab Small-Cap 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 Total Stock Market Index Fund® | Schwab Target 2010 Index Fund |
Schwab International Index Fund® | Schwab Target 2015 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2020 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2025 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2030 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2035 Index Fund |
Schwab International Opportunities Fund | Schwab Target 2040 Index Fund |
| Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2055 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2060 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund - Target Payout |
Schwab International Core Equity Fund | Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each fund in this report offers one share class. 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The funds may invest in certain mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab Fundamental Index Funds | Semiannual Report83
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
• Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of a fund’s portfolio holdings and the NAV of a fund’s shares and seeks to help ensure that the prices at which a fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of a fund and that of its comparative index or benchmark.
• Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
84Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
• 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. In addition, international securities whose markets close hours before the valuation of a fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a 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.
The levels associated with valuing the funds’ investments as of April 30, 2023, are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. A fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Securities Lending: Under the trust’s Securities Lending Program, a fund (lender), may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides a fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. Each fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the funds or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in each fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between a fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of a fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
Schwab Fundamental Index Funds | Semiannual Report85
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
As of April 30, 2023, Schwab Fundamental US Large Company Index Fund, Schwab Fundamental US Small Company Index Fund, Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2023, if any, are disclosed in each fund’s Portfolio Holdings. The value of the securities on loan and the investment of cash collateral are disclosed in each fund’s Statement of Assets and Liabilities.
Passive Foreign Investment Companies: Certain funds may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The funds may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).
Cash Investments: The funds, except for the Schwab Fundamental US Large Company Index Fund and Schwab Fundamental US Small Company Index Fund, may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The Schwab Fundamental International Large Company Index Fund, Schwab Fundamental International Small Company Index Fund and Schwab Fundamental Emerging Markets Large Company Index Fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in the net realized gains (losses) on sales of securities in each fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in each fund’s Statement of Operations, if any. The funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.
Gains realized by the funds on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the funds record a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When a fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the funds record certain foreign security dividends on the date the ex-dividend is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
86Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
The Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees are non-contingent and non-routine expenses which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2023, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund did not incur any compliance fees.
(e) Expenses:
Pursuant to an Amended and Restated Investment Advisory and Administration Agreement (Advisory Agreement) between the investment adviser and the trust, the investment adviser will pay the operating expenses of each fund, excluding taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to a fund are charged directly to the fund. The Advisory Agreement excludes paying acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive distributions, 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 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) Foreign Taxes:
The funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the funds invest. These foreign taxes, if any, are paid by the funds and are disclosed in each fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2023, if any, are reflected in each fund’s Statement of Assets and Liabilities.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(j) 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.
(k) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Investment Style Risk. The funds are index funds. Therefore, each fund follows the securities included in its respective index during upturns as well as downturns. Because of its indexing strategy, a fund does not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of a fund’s expenses, a fund’s performance may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in an index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for a fund.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, a fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Tracking Error Risk. As index funds, each fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of a fund and the index, positive or negative, is called “tracking error.” Tracking error can be caused by many factors and it may be significant.
Concentration Risk. To the extent that a fund’s or its respective index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Foreign Investment Risk. A fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 a fund’s investments, and could impair the fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar. Foreign securities may also include American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs), which may be less liquid than the underlying shares in their primary trading market, and GDRs, in particular, many of which are issued by companies in emerging markets, may be more volatile. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. To the extent a fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with a fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Derivatives Risk. Each fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right to buy or sell an instrument at a specific price before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A fund’s use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.
A fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk and market risk, are discussed elsewhere in this section. A fund’s use of derivatives is also subject to lack of availability risk, credit risk, leverage risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on the fund. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. A fund’s use of derivatives could reduce the fund’s performance, increase the fund’s volatility, and could cause the fund to lose more than the initial amount invested. A fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. A fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Sampling Index Tracking Risk. To the extent a fund uses a sampling method, the fund may not fully replicate its respective index and may hold securities not included in the index. As a result, the fund is subject to the risk that the investment adviser’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. If a fund utilizes a sampling approach, it may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Exchange Traded Funds (ETFs) Risk. Certain funds may purchase shares of ETFs to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly. When a fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a proportionate share of the ETF’s expenses. Therefore, it may be more costly to own an ETF than to own the underlying securities directly. In addition, while the risks of owning shares of an ETF generally reflect the risks of owning the underlying securities the ETF holds, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio securities.
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 the Advisory Agreement between the investment adviser and the trust.
For its advisory services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, based on a percentage of each fund’s average daily net assets as follows:
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 |
| | | | |
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentages of shares of each fund in this report that are owned by other funds in the Fund Complex as of April 30, 2023, as applicable:
| |
| 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 MarketTrack All Equity Portfolio | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | |
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| | | | | |
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| | | | | |
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the funds, subject to reimbursement by the funds to the extent the funds are able to successfully recover taxes withheld in the future.
For the period ended April 30, 2023, the professional fees incurred by the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund and paid by the investment adviser were $14,011 and $694 respectively, as shown as Professional fees in each fund’s Statement of Operations.
For the period ended April 30, 2023, the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund did not recover any previously withheld foreign taxes and made no reimbursements to the investment adviser.
As of April 30, 2023, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the Schwab Fundamental International Large Company Index Fund and Schwab Fundamental International Small Company Index Fund to the investment adviser were $98,873 and $1,712, respectively.
No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Interfund Transactions
The funds may engage in direct transactions with certain other funds in the Fund Complex 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 April 30, 2023, 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:
| | | |
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 | | | |
| | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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 funds do not pay any interested or non-interested (independent trustees) trustees. The independent trustees are paid by the investment adviser. 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser 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 28, 2023. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds 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 paid by the investment adviser. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.
7. Derivatives:The funds entered into equity index futures contracts during the report period. The funds invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2023, if any, are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized
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Financial Notes, unaudited (continued)
7. Derivatives (continued):
appreciation (depreciation) on futures contracts are presented in the Statement of Operations, if any. Refer to financial note 2(b) for the funds’ accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2023, the month-end average notional amounts of futures contracts held by the funds and the month-end average number of contracts held were as follows:
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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 | | |
8. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:
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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 | | |
During the period ended April 30, 2023, the following funds had transactions in connection with in-kind transactions:
| IN-KIND PURCHASES
OF SECURITIES | IN-KIND SALES
OF SECURITIES |
Schwab Fundamental US Large Company Index Fund | | |
Schwab Fundamental US Small Company Index Fund | | |
For the period ended April 30, 2023, where applicable, the funds realized net capital gains or losses resulting from in-kind redemptions. Because such gains or losses are not taxable to the funds and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the funds’ tax year. These reclassifications have no effect on net assets or net asset values per share. The net realized in-kind gains or losses on sales of in-kind redemptions for the period ended April 30, 2023, are disclosed in the funds’ Statements of Operations, if any.
9. Federal Income Taxes:As of April 30, 2023, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
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 | | | | |
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Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of October 31, 2022, the funds had capital loss carryforwards available as follows:
| |
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 | |
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
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 | | |
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 in 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 October 31, 2022, 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 each fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the funds did not incur any interest or penalties.
10. 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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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 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.
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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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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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 | |
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). | | |
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). | | |
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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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
|
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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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Schwab Fundamental Index Funds
Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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.
98Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
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.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the
Schwab Fundamental Index Funds | Semiannual Report99
Schwab Fundamental Index Funds
index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging markets globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
S&P Developed ex-U.S. Small Cap Index (Net) An index composed of the stocks representing the lowest 15% of float-adjusted market cap in each developed market country, excluding the U.S. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
100Schwab Fundamental Index Funds | Semiannual Report
Schwab Fundamental Index Funds
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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab International Opportunities Fund
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Schwab International Opportunities Fund
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by, and is the exclusive property of, MSCI Inc. (MSCI) and Standard & Poor’s (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab.
Schwab International Opportunities Fund | Semiannual Report1
Schwab International Opportunities Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab International Opportunities Fund1 (Ticker Symbol: SWMIX) | |
| |
Fund Category: Morningstar Foreign Large Growth3 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
Foreign securities can involve risks such as political and economic instability and currency risk. These risks may be greater in emerging markets.
*
Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
1
The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations. See financial note 2 for more information.
2
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
3
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
| John Greves, CFA, Managing Director and Head of Multi-Asset Strategies for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to joining Schwab in 2016, Mr. Greves worked at Russell Investment Management Company (Russell Investments) for 13 years, most recently as a portfolio manager for multi-asset solutions where he managed multiple target date funds, chaired the multi-asset advisory team, and co-authored papers on glide path methodology and benchmarking. Prior to that, he served in several roles for Russell Investments including associate portfolio manager for multi-asset solutions and senior portfolio analyst for multi-asset solutions. |
| Tony Creasy, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day co-management of the fund. Prior to his current role, he was a portfolio manager on the Multi-Asset Strategies Team, responsible for the daily management of several multi-asset portfolios. He also spent several years as lead analyst on the Schwab Asset Management Investment Manager Research Team. Prior to that, Mr. Creasy was an institutional investment analyst for Schwab’s retirement investment services group, providing mutual fund analysis to support the Schwab Focus List™. |
| David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day management of the portion of the fund that is invested in accordance with a particular index. Prior to this role, Mr. Rios was an associate portfolio manager on the equity index strategies team for four years. His first role with Schwab Asset Management was as a trade operations specialist. Prior to joining Schwab in 2008, Mr. Rios was a senior fund accountant at Investors Bank & Trust (subsequently acquired by State Street Corporation). |
Schwab International Opportunities Fund | Semiannual Report3
Schwab International Opportunities Fund
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1,2
| | | | |
Fund: Schwab International Opportunities Fund (4/2/04)3 | | | | |
| | | | |
Fund Category: Morningstar Foreign Large Growth5 | | | | |
Fund Expense Ratio6: 0.84% |
INVESTMENT MANAGERS AND ALLOCATIONS7
| | |
American Century Investment Management, Inc. | International Small-Cap Growth | |
| International Large-Cap Value | |
Charles Schwab Investment Management, Inc., dba Schwab Asset Management8 | International Large-Cap Developed | |
Mondrian Investment Partners Limited | International Small-Cap Value | |
Baillie Gifford Overseas Limited | | |
| | |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
*
Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
The fund’s performance relative to the index may be affected by fair-value pricing. See financial note 2 for more information.
3
The fund commenced operations on October 16, 1996 which became the Schwab International Opportunities Fund (formerly Laudus International MarketMasters Fund) Investor Shares. The Investor Shares were consolidated into Select Shares on February 26, 2019. The performance presented is that of the former Select Shares which commenced operations on April 2, 2004.
4
The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
5
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
6
As stated in the prospectus. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, refer to the financial highlights section of the financial statements.
7
For more information about each of the investment manager’s investment styles, refer to the fund’s prospectus.
8
Charles Schwab Investment Management, Inc. manages a portion of the fund by primarily investing in stocks that are included in the FTSE Developed ex US Quality Factor Index. The Schwab International Opportunities Fund has been developed solely by Schwab Asset Management. Index Ownership – The fund is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the LSE Group). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the FTSE Developed ex US Quality Factor Index (the Index) vest in the relevant LSE Group company which owns the Index. “FTSE®” is a trade mark of the relevant LSE Group company and is used by any other LSE Group company under license.
9
Charles Schwab Investment Management, Inc. can allocate a portion of the fund to particular market sectors, such as emerging markets, utilizing securities, exchange-traded funds (ETFs) and/or other registered investment companies and may also directly manage additional portions of the fund during transitions between investment managers. Charles Schwab Investment Management, Inc. also manages the cash portion of the fund.
4Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Performance and Fund Facts as of April 30, 2023
| |
Weighted Average Market Cap (millions) | |
Price/Earnings Ratio (P/E) | |
| |
| |
Sector Weightings % of Investments1
Top Equity Holdings % of Net Assets3
Top Country Weightings % of Investments4
Portfolio holdings may have changed since the report date.
Source of Sector Classification: S&P and MSCI.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.
3
This list is not a recommendation of any security by the investment adviser.
4
The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, excluding derivatives, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
Schwab International Opportunities Fund | Semiannual Report5
Schwab International Opportunities 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 November 1, 2022 and held through April 30, 2023.
The Actual Return line in the table below provides 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.”
The Hypothetical Return line in the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return line of the table is 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.
| | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
|
Schwab International Opportunities Fund | | | | |
| | | | |
| | | | |
| Based on the most recent six-month expense ratio. |
| Expenses for the fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days in the period, and divided by the 365 days in the fiscal year. |
6Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
| | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Effective February 26, 2019, the Investor Share class, and the Select Share class were consolidated into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Select Shares. |
| Calculated based on the average shares outstanding during the period. |
| Per-share amount was less than $0.005. |
| |
| |
| Effective February 25, 2022, the net operating expense limitation was lowered from 1.25% to 0.86%. The ratio presented for the period ended October 31, 2022 is a blended ratio. |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| |
Schwab International Opportunities Fund | Semiannual Report7
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (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) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after calendar quarters on the fund’s website.
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COMMON STOCKS 91.9% OF NET ASSETS |
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Bendigo & Adelaide Bank Ltd. | | |
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Charter Hall Long Wale REIT | | |
Cleanaway Waste Management Ltd. | | |
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Costa Group Holdings Ltd. | | |
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Domino's Pizza Enterprises Ltd. | | |
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Flight Centre Travel Group Ltd. * | | |
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Harvey Norman Holdings Ltd. | | |
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James Hardie Industries plc | | |
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Magellan Financial Group Ltd. | | |
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Northern Star Resources Ltd. | | |
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Pinnacle Investment Management Group Ltd. | | |
Platinum Asset Management Ltd. | | |
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Seven Group Holdings Ltd. | | |
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The Star Entertainment Grp Ltd. * | | |
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Treasury Wine Estates Ltd. | | |
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Washington H Soul Pattinson & Co., Ltd. | | |
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Woodside Energy Group Ltd. | | |
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Ackermans & van Haaren N.V. | | |
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Anheuser-Busch InBev S.A./N.V. | | |
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Groupe Bruxelles Lambert N.V. | | |
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8Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Alamos Gold, Inc., Class A | | |
Alimentation Couche-Tard, Inc. | | |
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Boyd Group Services, Inc. | | |
Brookfield Infrastructure Corp., Class A | | |
Canadian National Railway Co. | | |
Canadian Natural Resources Ltd. | | |
Canadian Tire Corp., Ltd., Class A | | |
Canadian Utilities Ltd., Class A | | |
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Constellation Software, Inc. | | |
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Fairfax Financial Holdings Ltd. | | |
Finning International, Inc. | | |
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Innergex Renewable Energy, Inc. | | |
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Magna International, Inc. | | |
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Restaurant Brands International, Inc. | | |
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The Descartes Systems Group, Inc. * | | |
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Wheaton Precious Metals Corp. | | |
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Alibaba Group Holding Ltd. * | | |
Bosideng International Holdings Ltd. | | |
China Yongda Automobiles Services Holdings Ltd. | | |
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Poly Property Services Co., Ltd., H Shares | | |
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Tongcheng Travel Holdings Ltd. * | | |
Vipshop Holdings Ltd., ADR * | | |
Xiabuxiabu Catering Management China Holdings Co., Ltd. | | |
Xtep International Holdings Ltd. | | |
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AP Moller - Maersk A/S, Class A | | |
AP Moller - Maersk A/S, Class B | | |
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Novo Nordisk A/S, Class B | | |
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Vestas Wind Systems A/S * | | |
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Schwab International Opportunities Fund | Semiannual Report9
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Cie Generale des Etablissements Michelin S.C.A. | | |
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La Francaise des Jeux SAEM | | |
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LVMH Moet Hennessy Louis Vuitton SE | | |
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UbiSoft Entertainment S.A. * | | |
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Bayerische Motoren Werke AG | | |
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Carl Zeiss Meditec AG, Class B | | |
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CTS Eventim AG & Co., KGaA * | | |
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Daimler Truck Holding AG * | | |
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DWS Group GmbH & Co. KGaA | | |
Eckert & Ziegler Strahlen- und Medizintechnik AG | | |
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Fraport AG Frankfurt Airport Services Worldwide * | | |
Fresenius Medical Care AG & Co. KGaA | | |
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Friedrich Vorwerk Group SE | | |
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SMA Solar Technology AG * | | |
Telefonica Deutschland Holding AG | | |
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Budweiser Brewing Co. APAC Ltd. | | |
Cafe de Coral Holdings Ltd. | | |
Chow Tai Fook Jewellery Group Ltd. | | |
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CK Infrastructure Holdings Ltd. | | |
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10Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Hang Lung Properties Ltd. | | |
Henderson Land Development Co., Ltd. | | |
Hong Kong & China Gas Co., Ltd. | | |
Hongkong Land Holdings Ltd. | | |
Hysan Development Co., Ltd. | | |
JS Global Lifestyle Co., Ltd. | | |
Kerry Logistics Network Ltd. | | |
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L'Occitane International S.A. | | |
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New World Development Co., Ltd. | | |
Nexteer Automotive Group Ltd. | | |
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Orient Overseas International Ltd. | | |
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Power Assets Holdings Ltd. | | |
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Samsonite International S.A. * | | |
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SITC International Holdings Co., Ltd. | | |
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Swire Pacific Ltd., A Shares | | |
Swire Pacific Ltd., B Shares | | |
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The Bank of East Asia Ltd. | | |
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United Energy Group Ltd. * | | |
Vitasoy International Holdings Ltd. | | |
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Want Want China Holdings Ltd. | | |
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Xinyi Glass Holdings Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
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Max Healthcare Institute Ltd. * | | |
Prestige Estates Projects Ltd. | | |
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Bank of Ireland Group plc | | |
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Ryanair Holdings plc, ADR * | | |
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Alony Hetz Properties & Investments Ltd. | | |
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Bezeq The Israeli Telecommunication Corp., Ltd. | | |
Big Shopping Centers Ltd. * | | |
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Energix-Renewable Energies Ltd. | | |
Enlight Renewable Energy Ltd. * | | |
Fattal Holdings 1998 Ltd. * | | |
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Mivne Real Estate KD Ltd. | | |
Mizrahi Tefahot Bank Ltd. | | |
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SolarEdge Technologies, Inc. * | | |
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Teva Pharmaceutical Industries Ltd. * | | |
The First International Bank of Israel Ltd. | | |
The Phoenix Holdings Ltd. | | |
Tower Semiconductor Ltd. * | | |
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Davide Campari-Milano N.V. | | |
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FinecoBank Banca Fineco S.p.A. | | |
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Infrastrutture Wireless Italiane S.p.A. | | |
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Mediobanca Banca di Credito Finanziario S.p.A. | | |
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Recordati Industria Chimica e Farmaceutica S.p.A. | | |
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Advance Residence Investment Corp. | | |
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AEON REIT Investment Corp. | | |
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Schwab International Opportunities Fund | Semiannual Report11
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Bandai Namco Holdings, Inc. | | |
BayCurrent Consulting, Inc. | | |
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Canon Marketing Japan, Inc. | | |
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Chugai Pharmaceutical Co., Ltd. | | |
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Concordia Financial Group Ltd. | | |
Cosmo Energy Holdings Co., Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
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Dai Nippon Printing Co., Ltd. | | |
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Daito Trust Construction Co., Ltd. | | |
Daiwa Office Investment Corp. | | |
Daiwa Securities Group, Inc. | | |
Daiwa Securities Living Investments Corp. | | |
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Electric Power Development Co., Ltd. | | |
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Frontier Real Estate Investment Corp. | | |
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Fukuoka Financial Group, Inc. | | |
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GMO Payment Gateway, Inc. | | |
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GungHo Online Entertainment, Inc. | | |
H.U. Group Holdings, Inc. | | |
Hakuhodo DY Holdings, Inc. | | |
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Hankyu Hanshin Holdings, Inc. | | |
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Hirose Electric Co., Ltd. | | |
Hisamitsu Pharmaceutical Co., Inc. | | |
Hitachi Construction Machinery Co., Ltd. | | |
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Iida Group Holdings Co., Ltd. | | |
Industrial & Infrastructure Fund Investment Corp. | | |
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Information Services International-Dentsu Ltd. | | |
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Internet Initiative Japan, Inc. | | |
Invincible Investment Corp. | | |
Isetan Mitsukoshi Holdings Ltd. | | |
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Itochu Techno-Solutions Corp. | | |
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J. Front Retailing Co., Ltd. | | |
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Japan Airport Terminal Co., Ltd. | | |
Japan Aviation Electronics Industry Ltd. | | |
Japan Logistics Fund, Inc. | | |
Japan Post Bank Co., Ltd. | | |
Japan Post Insurance Co., Ltd. | | |
Japan Prime Realty Investment Corp. | | |
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JCR Pharmaceuticals Co., Ltd. | | |
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12Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Kaken Pharmaceutical Co., Ltd. | | |
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Kawasaki Heavy Industries Ltd. | | |
Kawasaki Kisen Kaisha Ltd. | | |
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Keihan Holdings Co., Ltd. | | |
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Keisei Electric Railway Co., Ltd. | | |
Kenedix Office Investment Corp. | | |
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Kobayashi Pharmaceutical Co., Ltd. | | |
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Koei Tecmo Holdings Co., Ltd. | | |
Koito Manufacturing Co., Ltd. | | |
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Kotobuki Spirits Co., Ltd. | | |
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Kurita Water Industries Ltd. | | |
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Kyushu Electric Power Co., Inc. * | | |
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Mitsubishi Chemical Group Corp. | | |
Mitsubishi Electric Corp. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Logistics Corp. | | |
Mitsubishi Materials Corp. | | |
Mitsubishi Motors Corp. * | | |
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Mitsui Fudosan Logistics Park, Inc. | | |
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Mitsui Mining & Smelting Co., Ltd. | | |
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Mori Hills Reit Investment Corp. | | |
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Murata Manufacturing Co., Ltd. | | |
Musashi Seimitsu Industry Co., Ltd. | | |
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Nagoya Railroad Co., Ltd. | | |
Nankai Electric Railway Co., Ltd. | | |
NEC Networks & System Integration Corp. | | |
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Nihon M&A Center Holdings, Inc. | | |
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Nippon Accommodations Fund, Inc. | | |
Nippon Electric Glass Co., Ltd. | | |
Nippon Express Holdings, Inc. | | |
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Nippon Sanso Holdings Corp. | | |
Nippon Shinyaku Co., Ltd. | | |
Nippon Shokubai Co., Ltd. | | |
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Nishi-Nippon Railroad Co., Ltd. | | |
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Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co., Ltd. | | |
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Nitori Holdings Co., Ltd. | | |
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Noevir Holdings Co., Ltd. | | |
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Nomura Real Estate Holdings, Inc. | | |
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OBIC Business Consultants Co., Ltd. | | |
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Odakyu Electric Railway Co., Ltd. | | |
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Ono Pharmaceutical Co., Ltd. | | |
Open House Group Co., Ltd. | | |
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Otsuka Holdings Co., Ltd. | | |
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Pan Pacific International Holdings Corp. | | |
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Persol Holdings Co., Ltd. | | |
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Pola Orbis Holdings, Inc. | | |
Prestige International, Inc. | | |
Schwab International Opportunities Fund | Semiannual Report13
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Recruit Holdings Co., Ltd. | | |
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Renesas Electronics Corp. * | | |
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Rohto Pharmaceutical Co., Ltd. | | |
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Santen Pharmaceutical Co., Ltd. | | |
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SCREEN Holdings Co., Ltd. | | |
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Sega Sammy Holdings, Inc. | | |
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Sekisui Chemical Co., Ltd. | | |
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Shikoku Electric Power Co., Inc. * | | |
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Shin-Etsu Chemical Co., Ltd. | | |
Shinko Electric Industries Co., Ltd. | | |
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Shizuoka Financial Group, Inc. | | |
SHO-BOND Holdings Co., Ltd. | | |
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Skylark Holdings Co., Ltd. * | | |
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Sohgo Security Services Co., Ltd. | | |
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Square Enix Holdings Co., Ltd. | | |
Stanley Electric Co., Ltd. | | |
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Sumitomo Bakelite Co., Ltd. | | |
Sumitomo Chemical Co., Ltd. | | |
Sumitomo Forestry Co., Ltd. | | |
Sumitomo Heavy Industries Ltd. | | |
Sumitomo Metal Mining Co., Ltd. | | |
Sumitomo Rubber Industries Ltd. | | |
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Suntory Beverage & Food Ltd. | | |
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Taisho Pharmaceutical Holdings Co., Ltd. | | |
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The Chugoku Electric Power Co., Inc. * | | |
The Japan Steel Works Ltd. | | |
The Kansai Electric Power Co., Inc. | | |
The Yokohama Rubber Co., Ltd. | | |
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Tohoku Electric Power Co., Inc. * | | |
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Tokyo Electric Power Co. Holdings, Inc. * | | |
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Tokyo Ohka Kogyo Co., Ltd. | | |
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Tokyu Fudosan Holdings Corp. | | |
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Toyo Seikan Group Holdings Ltd. | | |
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United Urban Investment Corp. | | |
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Welcia Holdings Co., Ltd. | | |
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Yamada Holdings Co., Ltd. | | |
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Yamato Holdings Co., Ltd. | | |
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Yamazaki Baking Co., Ltd. | | |
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Zensho Holdings Co., Ltd. | | |
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Grupo Aeroportuario del Centro Norte S.A.B. de C.V. | | |
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14Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Vista Energy S.A.B. de C.V. * | | |
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AMG Advanced Metallurgical Group N.V. | | |
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BE Semiconductor Industries N.V. | | |
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Universal Music Group N.V. | | |
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Auckland International Airport Ltd. * | | |
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Fisher & Paykel Healthcare Corp., Ltd. | | |
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SKYCITY Entertainment Group Ltd. | | |
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The a2 Milk Co., Ltd. *(a) | | |
The a2 Milk Co., Ltd. *(a) | | |
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Gjensidige Forsikring A.S.A. | | |
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Leroy Seafood Group A.S.A. | | |
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Nordic Semiconductor A.S.A. * | | |
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Schibsted A.S.A., A Shares | | |
Schibsted A.S.A., B Shares | | |
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Yara International A.S.A. | | |
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Polski Koncern Naftowy Orlen S.A. | | |
Powszechna Kasa Oszczednosci Bank Polski S.A. | | |
Powszechny Zaklad Ubezpieczen S.A. | | |
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EDP - Energias de Portugal S.A. | | |
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Jeronimo Martins, SGPS, S.A. | | |
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BNK Financial Group, Inc. | | |
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Daewoo Engineering & Construction Co., Ltd. * | | |
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GS Engineering & Construction Corp. | | |
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Hankook Tire & Technology Co., Ltd. | | |
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Hanwha Aerospace Co., Ltd. | | |
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Hyundai Department Store Co., Ltd. | | |
Hyundai Doosan Infracore Co., Ltd. | | |
Schwab International Opportunities Fund | Semiannual Report15
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
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Hyundai Engineering & Construction Co., Ltd. | | |
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Hyundai Heavy Industries Co., Ltd. * | | |
Hyundai Marine & Fire Insurance Co., Ltd. | | |
Hyundai Mipo Dockyard Co., Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
KEPCO Plant Service & Engineering Co., Ltd. | | |
| | |
Korea Aerospace Industries Ltd. | | |
Korea Electric Power Corp. * | | |
Korea Investment Holdings Co., Ltd. | | |
Korea Shipbuilding & Offshore Engineering Co., Ltd. * | | |
| | |
Korean Air Lines Co., Ltd. | | |
| | |
| | |
Kumho Petrochemical Co., Ltd. | | |
| | |
| | |
| | |
| | |
LG Energy Solution Ltd. * | | |
| | |
| | |
| | |
| | |
LOTTE Fine Chemical Co., Ltd. | | |
Mirae Asset Securities Co., Ltd. | | |
| | |
| | |
NH Investment & Securities Co., Ltd. | | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
Samsung Biologics Co., Ltd. * | | |
| | |
| | |
Samsung Electro-Mechanics Co., Ltd. | | |
Samsung Electronics Co., Ltd. | | |
Samsung Engineering Co., Ltd. * | | |
Samsung Heavy Industries Co., Ltd. * | | |
Samsung Life Insurance Co., Ltd. | | |
| | |
| | |
Samsung Securities Co., Ltd. | | |
| | |
| | |
| | |
SK Biopharmaceuticals Co., Ltd. * | | |
SK Bioscience Co., Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
CapitaLand Integrated Commercial Trust | | |
Capitaland Investment Ltd. | | |
ComfortDelGro Corp., Ltd. | | |
| | |
Frasers Logistics & Commercial Trust | | |
| | |
Hutchison Port Holdings Trust, Class U | | |
Jardine Cycle & Carriage Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
| | |
Mapletree Industrial Trust | | |
Mapletree Logistics Trust | | |
Mapletree Pan Asia Commercial Trust | | |
Nanofilm Technologies International Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
Suntec Real Estate Investment Trust | | |
| | |
| | |
Wilmar International Ltd. | | |
| | |
|
|
Aspen Pharmacare Holdings Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
Cia de Distribucion Integral Logista Holdings S.A. | | |
Corp. ACCIONA Energias Renovables S.A. * | | |
| | |
| | |
| | |
| | |
| | |
Industria de Diseno Textil S.A. | | |
Inmobiliaria Colonial Socimi S.A. | | |
Merlin Properties Socimi S.A. | | |
Naturgy Energy Group S.A. | | |
| | |
| | |
16Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, B Shares * | | |
| | |
| | |
H & M Hennes & Mauritz AB, B Shares | | |
| | |
| | |
| | |
Industrivarden AB, A Shares | | |
Industrivarden AB, C Shares | | |
| | |
Investment AB Latour, B Shares | | |
| | |
| | |
| | |
L E Lundbergfortagen AB, B Shares | | |
| | |
| | |
Nibe Industrier AB, B Shares | | |
| | |
| | |
| | |
| | |
| | |
Spotify Technology S.A. * | | |
Svenska Cellulosa AB, S.C.A., B Shares | | |
| | |
Swedish Orphan Biovitrum AB * | | |
| | |
Telefonaktiebolaget LM Ericsson, B Shares | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Bachem Holding AG, Class B | | |
| | |
Banque Cantonale Vaudoise | | |
| | |
| | |
| | |
| | |
Burckhardt Compression Holding AG | | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | |
Cie Financiere Richemont S.A., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Kuehne & Nagel International AG | | |
Logitech International S.A. | | |
| | |
| | |
Partners Group Holding AG | | |
| | |
| | |
Roche Holding AG, Bearer Shares | | |
| | |
Schindler Holding AG, Participation Certificates | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
The Swatch Group AG, Bearer Shares | | |
| | |
| | |
|
|
Airtac International Group | | |
| | |
| | |
| | |
Poya International Co., Ltd. | | |
Sinbon Electronics Co., Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Schwab International Opportunities Fund | Semiannual Report17
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
Associated British Foods plc | | |
| | |
| | |
B&M European Value Retail S.A. | | |
| | |
Berkeley Group Holdings plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Dechra Pharmaceuticals plc | | |
| | |
| | |
| | |
Direct Line Insurance Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hikma Pharmaceuticals plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
Intermediate Capital Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group plc | | |
Liberty Global plc, Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings plc | | |
| | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering plc | | |
| | |
| | |
| | |
| | |
| | |
The British Land Co., plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Ginkgo Bioworks Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $876,954,275) | |
|
PREFERRED STOCKS 0.5% OF NET ASSETS |
|
|
Bayerische Motoren Werke AG | | |
| | |
| | |
| | |
| | |
|
|
Telecom Italia S.p.A. - RSP * | | |
|
|
| | |
Hyundai Motor Co., Ltd. 2nd | | |
| | |
| | |
| | |
Samsung Electronics Co., Ltd. | | |
| | |
Total Preferred Stocks
(Cost $6,871,999) | |
18Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | |
AFFILIATED INVESTMENT COMPANIES 4.0% OF NET ASSETS |
|
|
Schwab Emerging Markets Equity ETF | | |
Total Affiliated Investment Companies
(Cost $51,218,200) | |
| | |
SHORT-TERM INVESTMENTS 3.2% OF NET ASSETS |
|
|
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d) | | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 4.76% (d)(e) | | |
| | |
Total Short-Term Investments
(Cost $34,042,718) | |
Total Investments in Securities
(Cost $969,087,192) | |
| | | CURRENT VALUE/
UNREALIZED
APPRECIATION
($) |
|
| | | |
MSCI EAFE Index, expires 06/16/23 | | | |
| Non-income producing security. |
| Security is traded on separate exchanges for the same issuer. |
| Fair valued using significant unobservable inputs (see financial note 2(a), Securities for which no quoted value is available, for additional information). |
| All or a portion of this security is on loan. Securities on loan were valued at $432,918. |
| The rate shown is the annualized 7-day yield. |
| Security purchased with cash collateral received for securities on loan. |
| American Depositary Receipt |
| |
| |
| Global Depositary Receipt |
| Real Estate Investment Trust |
| Risparmio (Savings Shares) |
Below is a summary of the fund’s transactions with affiliated issuers during the period ended April 30, 2023:
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED INVESTMENT COMPANIES 4.0% OF NET ASSETS |
|
|
Schwab Emerging Markets Equity ETF | | | | | | | | |
| Distributions received include distributions from net investment income and capital gains, if any, from the affiliated underlying fund. |
Schwab International Opportunities Fund | Semiannual Report19
Schwab International Opportunities Fund
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
The following is a summary of the inputs used to value the fund’s investments as of April 30, 2023 (see financial note 2(a) for additional information):
| QUOTED PRICES IN
ACTIVE MARKETS FOR
IDENTICAL ASSETS
(LEVEL 1) | OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2) | SIGNIFICANT
UNOBSERVABLE INPUTS
(LEVEL 3) | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Affiliated Investment Companies1 | | | | |
| | | | |
| | | | |
| | | | |
| As categorized in the Portfolio Holdings. |
| Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the
underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3.
20Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $51,218,200) | | |
Investments in securities, at value - unaffiliated (cost $917,868,992) including securities on loan of $432,918 | | |
Foreign currency, at value (cost $2,285,113) | | |
Deposit with broker for futures contracts | | |
| | |
| | |
| | |
| | |
| | |
Income from securities on loan | | |
| | |
| | |
|
|
Collateral held for securities on loan | | |
| | |
| | |
| | |
Foreign capital gains tax | | |
Investment adviser and administrator fees | | |
| | |
Variation margin on futures contracts | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab International Opportunities Fund | Semiannual Report21
Schwab International Opportunities Fund
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,052,886) | | |
Dividends received from securities - affiliated | | |
| | |
| | |
|
|
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated (net of foreign capital gains tax paid of $179,876) | | |
Net realized gains on futures contracts | | |
Net realized gains on foreign currency transactions | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of $474) | | |
Net change in unrealized appreciation (depreciation) on futures contracts | | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Includes professional fees of $2,076 associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
22Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
Net realized gains (losses) | | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab International Opportunities Fund | Semiannual Report23
Schwab International Opportunities Fund
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab International Opportunities Fund is a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
Schwab International Opportunities Fund | |
Schwab S&P 500 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 Fundamental US Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity Fund | Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
| Schwab Target 2055 Index Fund |
| Schwab Target 2060 Index Fund |
| Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
The fund offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The fund may invest in mutual funds and exchange-traded funds (ETFs), which are referred to as "underlying funds". For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
24Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
• Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of a fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of the fund’s portfolio holdings and the NAV of the fund’s shares and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of the fund and that of its comparative index or benchmark.
• Futures contracts and forward foreign currency exchange contracts (forwards): Futures contracts are valued at their settlement prices as of the close of their exchanges. Forwards are valued based on that day’s forward exchange rates or by using an interpolated forward exchange rate for contracts with interim settlement dates.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
Schwab International Opportunities Fund | Semiannual Report25
Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
• 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. In addition, international securities whose markets close hours before the valuation of the fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used 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.
The levels associated with valuing the fund’s investments as of April 30, 2023, are disclosed in the Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Futures Contracts: Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.
Forward Foreign Currency Exchange Contracts: Forwards are contracts to buy and sell a currency at a set price on a future date. The value of the forwards is accounted for as unrealized appreciation or depreciation until the contracts settle, at which time the gains or losses are realized.
Securities Lending: Under the trust’s Securities Lending Program, the fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides the fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. The fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the fund or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in the fund’s Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between the fund and the lending agent. The aggregate fair value of securities loaned will not at any time exceed one-third of the total assets of the fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agents start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
As of April 30, 2023, the fund had securities on loan, all of which were classified as common stocks. The value of the securities on loan and the related collateral as of April 30, 2023, are disclosed in the fund’s Portfolio Holdings and Statement of Assets and Liabilities.
Passive Foreign Investment Companies: The fund may own shares in certain foreign corporations that meet the Internal Revenue Code definition of a Passive Foreign Investment Company (PFIC). The fund may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to- market gains (as well as any gains realized on sale).
Central Securities Depositories Regulation: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities in the fund’s Statement of Operations, if any.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations in the fund’s Statement of Operations, if any. The fund does not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments ,if any.
Gains realized by the fund on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
When the fund closes out a futures contract, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends, in the form of cash or non-cash income such as in the form of additional securities, and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date), although the fund records certain foreign security dividends on the date the ex-dividend date is confirmed. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received.
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Schwab International Opportunities Fund
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The fund filed claims to recover taxes previously withheld in certain European Union countries on the basis that those countries had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. These filings are subject to various administrative and judicial proceedings within these countries, and all professional fees associated with these filings have been paid by the investment adviser. The professional fees are non-contingent and non-routine fees which are subject to repayment to the investment adviser (see financial note 4 for additional information).
For U.S. income tax purposes, European Union reclaims received reduce the amounts of foreign taxes that the fund passes through to its shareholders. If European Union reclaims received exceed foreign withholding taxes paid, the fund will evaluate the requirements for entering into a closing agreement with the Internal Revenue Service (IRS) to address any prior years’ U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by fund shareholders on their tax returns in prior years. During the period ended April 30, 2023, the fund did not incur any compliance fees.
(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.
(f) Distributions to Shareholders:
The fund makes distributions from net investment income and 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) Foreign Taxes:
The fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the fund invests. These foreign taxes, if any, are paid by the fund and are disclosed in the fund’s Statement of Operations. Foreign taxes accrued as of April 30, 2023, if any, are reflected in the fund’s Statement of Assets and Liabilities.
(j) 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.
(k) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a
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Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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 Style Risk. Schwab Asset Management may attempt to reduce the impact of the performance of any given investment style by allocating to investment managers who invest in both value and growth style stocks. But whenever value stocks fall out of favor with investors, they may underperform growth stocks, and vice versa.
The portion of the fund that is invested in accordance with a particular index follows the securities included in that index during upturns as well as downturns. The fund does not take steps to reduce market exposure or to lessen the effects of a declining market with respect to this portion. In addition, because of the fund’s expenses, the fund’s performance with respect to this portion may be below that of the index. Errors relating to the index may occur from time to time and may not be identified by the index provider for a period of time. In addition, market disruptions could cause delays in the index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for the fund.
Multi-Manager Risk. Schwab Asset Management and each investment manager makes investment decisions independently, and it is possible that the investment styles of Schwab Asset Management and the investment managers may not complement one another. As a result, the fund’s exposure to a given stock, industry or investment style could unintentionally be smaller or larger than if the fund had a single manager.
Management Risk. The portion of the fund that is actively managed is subject to the risk that its investment adviser and investment managers will select investments or allocate assets in a manner that could cause the fund to underperform or otherwise not meet its investment objective. Poor stock selection or a focus on securities in a particular sector may cause the fund to underperform its benchmark or other funds with a similar investment objective.
Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, the fund’s performance could be impacted.
Large-Cap Company Risk. Large-cap companies are generally more mature and the securities issued by these companies may not be able to reach the same levels of growth as the securities issued by small- or mid-cap companies.
Mid-Cap Company Risk. Mid-cap companies may be more vulnerable to adverse business or economic events than larger, more established companies and the value of securities issued by these companies may move sharply.
Small-Cap Company Risk. Securities issued by small-cap companies may be riskier than those issued by larger companies, and their prices may move sharply, especially during market upturns and downturns.
Foreign Investment Risk. The fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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. There is a risk that investments in securities denominated
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency hedged, resulting in the dollar value of the fund’s investment being adversely affected. Foreign securities may also include investments in variable interest entities (VIEs) structures, which are created by China-based operating companies in jurisdictions outside of China to obtain indirect financing due to Chinese regulations that prohibit non-Chinese ownership of those companies. To the extent the fund’s investments in a single country or a limited number of countries represent a large percentage of the fund’s assets, the fund’s performance may be adversely affected by the economic, political, regulatory and social conditions in those countries, and the fund’s price may be more volatile than the price of a fund that is geographically diversified.
Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with the fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Currency Risk. As a result of the fund’s investments in securities denominated in, and/or receiving revenues in, foreign currencies, the fund will be subject to currency risk. This is the risk that those currencies will decline in value relative to the U.S. dollar. If such an event occurs, the dollar value of an investment in the fund would be adversely affected.
Sampling Index Tracking Risk. The portion of the fund that is invested in accordance with a particular index may not fully replicate the index and may hold securities not included in the index. As a result, the fund is subject to the risk that Schwab Asset Management’s investment management strategy, the implementation of which is subject to a number of constraints, may not produce the intended results. Because Schwab Asset Management utilizes a sampling approach the portion of the fund it manages may not track the return of the index as well as it would if the fund purchased all of the securities in the index.
Derivatives Risk. The fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
The fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as liquidity risk, market risk and management risk are discussed elsewhere in this section. The fund’s use of derivatives is also subject to credit risk, leverage risk, lack of availability risk, valuation risk, correlation risk and tax risk. Credit risk is the risk that the counterparty to a derivatives transaction may not fulfill its obligations. Leverage risk is the risk that a small percentage of assets invested in derivatives can have a disproportionately large impact on the fund. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause the fund to realize higher amounts of short-term capital gains. The fund’s use of derivatives could reduce the fund’s performance, increase its volatility, and could cause the fund to lose more than the initial amount invested. The use of derivatives, that are subject to regulation by the Commodity Futures Trading Commission (CFTC), could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules.The fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
Liquidity Risk. The fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the fund may have to sell them at a loss.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
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 0.63% of the fund’s average daily net assets.
Shareholder Servicing
The Board has adopted a Shareholder Servicing 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 0.20%. 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). 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.
Expense Limitation
Although these agreements specify certain fees for these services, 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 (including acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds), excluding interest, taxes and certain non-routine expenses to 0.86%.
Investments from Affiliates
Certain funds in the Fund Complex may own shares of other funds in the Fund Complex. The table below reflects the percentage of shares of the fund in this report that are owned by other funds in the Fund Complex as of April 30, 2023, as applicable:
Investments in Affiliates
The fund may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other related funds. As of April 30, 2023, the fund’s ownership percentage of other related fund’s shares is:
Schwab Emerging Markets Equity ETF | |
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Other Affiliated Transactions
The professional fees related to foreign withholding tax claims discussed in financial note 2(d) are non-contingent and non-routine expenses. The investment adviser agreed to pay these professional fees, on behalf of the fund, subject to reimbursement by the fund to the extent the fund is able to successfully recover taxes withheld in the future.
For the period ended April 30, 2023, the professional fees incurred by the fund and paid by the investment adviser were $2,076, as shown as Professional fees in the fund’s Statement of Operations.
For the period ended April 30, 2023, the fund recovered previously withheld foreign taxes from France. The payments received by the fund amounted to $1,444,937, which includes $90,326 of interest income, and is recorded as Dividends received from securities — unaffiliated in the fund’s Statement of Operations. The investment adviser paid upfront professional fees associated with recovering these foreign taxes in the amount of $1,540, which has been reimbursed to the investment adviser by the fund and is recorded as Dividends received from securities - unaffiliated in the fund’s Statement of Operations.
As of April 30, 2023, the balance of professional fees related to foreign withholding tax subject to future reimbursement by the fund to the investment adviser was $2,076.
No other amounts for additional tax reclaims are reflected in the financial statements due to the uncertainty surrounding the ultimate resolution of proceedings, the likelihood of receipt of these claims, and the potential timing of payment.
Interfund Transactions
The fund’s investment adviser or sub-advisers may engage in transactions with certain other funds they manage in accordance with procedures adopted by the Board pursuant to Rule 17a-7 under the 1940 Act. When a 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, sub-adviser, trustees and/or officers. For the period ended April 30, 2023, the fund’s purchases and sales of securities with other funds managed by the investment adviser or sub-advisers was $452,521 and $791,120 respectively, and includes realized losses of $271,978.
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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 fund did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted in 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. 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) with State Street Bank and Trust Company, maturing on September 28, 2023. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount the fund borrows. There were no borrowings by the fund from either line of credit during the period.
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Financial Notes, unaudited (continued)
6. Borrowing from Banks (continued):
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 in 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. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding short-term obligations) were as follows:
8. Derivatives:The fund entered into equity index futures contracts during the report period. The fund invested in futures contracts to equitize available cash. The value and variation margin for futures contracts held at April 30, 2023, if any, are presented in the Portfolio Holdings and Statement of Assets and Liabilities, respectively. The net realized gains (losses) and net change in unrealized appreciation (depreciation) on futures contracts are presented in the Statement of Operations, if any. Refer to financial note 2(b) for the fund’s accounting policies with respect to futures contracts and financial note 3 for disclosures concerning the risks of investing in futures contracts. During the period ended April 30, 2023, the month-end average notional amounts of futures contracts held by the fund and the month-end average number of contracts held were $23,825,673 and 237, respectively.
As of April 30, 2023, the derivatives contracts held by the fund, categorized by primary risk exposure, were:
| |
Equity Index Futures Contracts1 | |
| |
Equity Index Futures Contracts2 | |
| Includes cumulative unrealized appreciation of futures contracts as reported in the Portfolio Holdings. Only current day’s variation margin on futures contracts is reported within the Statement of Assets and Liabilities. |
| Includes cumulative unrealized depreciation of futures contracts as reported in the Portfolio Holdings. Only current day’s variation margin on futures contracts is reported within the Statement of Assets and Liabilities. |
The effects of the derivatives held by the fund in the Statement of Operations for the period ended April 30, 2023 were:
Equity Index Futures Contracts | |
| |
Net change in unrealized appreciation (depreciation)2 | |
| Statement of Operations location: Net realized gains on futures contracts. |
| Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts. |
9. Federal Income Taxes:As of April 30, 2023, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
| | | |
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Financial Notes, unaudited (continued)
9. Federal Income Taxes (continued):
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
| | |
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 in 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 October 31, 2022, 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 fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the fund did not incur any interest or penalties.
10. 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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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, 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 106 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.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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Schwab International Opportunities Fund
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 | |
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). | | |
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). | | |
36Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
|
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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
|
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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
Schwab International Opportunities Fund | Semiannual Report37
Schwab International Opportunities Fund
Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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.
38Schwab International Opportunities Fund | Semiannual Report
Schwab International Opportunities Fund
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
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.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
restricted and illiquid securities Restricted securities are securities that are subject to legal restrictions on their sale. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933 (the 1933 Act), or in a registered public offering. Certain restricted securities, such as Section 4(a)(2) commercial paper and Rule 144A securities under the 1933 Act, may be considered to be liquid if they meet the criteria for liquidity established by the Board. Illiquid securities generally are any securities that cannot be disposed of promptly and in the ordinary course of business at approximately the amount at which a fund has valued the instruments. The liquidity of a fund’s investments is monitored under the supervision and direction of the Board. Investments currently not considered liquid include repurchase agreements not maturing within seven days and certain restricted securities.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
Schwab International Opportunities Fund | Semiannual Report39
Schwab International Opportunities Fund
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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab Target Funds
Schwab Target 2010 Fund
Schwab Target 2015 Fund
Schwab Target 2020 Fund
Schwab Target 2025 Fund
Schwab Target 2030 Fund
Schwab Target 2035 Fund
Schwab Target 2040 Fund
Schwab Target 2045 Fund
Schwab Target 2050 Fund
Schwab Target 2055 Fund
Schwab Target 2060 Fund
Schwab Target 2065 Fund
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
1Schwab Target Funds | Semiannual Report
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Target 2010 Fund (Ticker Symbol: SWBRX) | |
Target 2010 Composite Index | |
Fund Category: Morningstar Target-Date 2000-20101 | |
| |
| |
Schwab Target 2015 Fund (Ticker Symbol: SWGRX) | |
Target 2015 Composite Index | |
Fund Category: Morningstar Target-Date 20151 | |
| |
| |
Schwab Target 2020 Fund (Ticker Symbol: SWCRX) | |
Target 2020 Composite Index | |
Fund Category: Morningstar Target-Date 20201 | |
| |
| |
Schwab Target 2025 Fund (Ticker Symbol: SWHRX) | |
Target 2025 Composite Index | |
Fund Category: Morningstar Target-Date 20251 | |
| |
| |
Schwab Target 2030 Fund (Ticker Symbol: SWDRX) | |
Target 2030 Composite Index | |
Fund Category: Morningstar Target-Date 20301 | |
| |
| |
Schwab Target 2035 Fund (Ticker Symbol: SWIRX) | |
Target 2035 Composite Index | |
Fund Category: Morningstar Target-Date 20351 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
Schwab Target Funds | Semiannual Report2
Performance at a Glance (continued)
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Target 2040 Fund (Ticker Symbol: SWERX) | |
Target 2040 Composite Index | |
Fund Category: Morningstar Target-Date 20401 | |
| |
| |
Schwab Target 2045 Fund (Ticker Symbol: SWMRX) | |
Target 2045 Composite Index | |
Fund Category: Morningstar Target-Date 20451 | |
| |
| |
Schwab Target 2050 Fund (Ticker Symbol: SWNRX) | |
Target 2050 Composite Index | |
Fund Category: Morningstar Target-Date 20501 | |
| |
| |
Schwab Target 2055 Fund (Ticker Symbol: SWORX) | |
Target 2055 Composite Index | |
Fund Category: Morningstar Target-Date 20551 | |
| |
| |
Schwab Target 2060 Fund (Ticker Symbol: SWPRX) | |
Target 2060 Composite Index | |
Fund Category: Morningstar Target-Date 20601 | |
| |
| |
Schwab Target 2065 Fund (Ticker Symbol: SWQRX) | |
Target 2065 Composite Index | |
Fund Category: Morningstar Target-Date 2065+1 | |
| |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3Schwab Target Funds | Semiannual Report
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab Target Funds | Semiannual Report4
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2010 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2010 Composite Index | | | | |
Fund Category: Morningstar Target-Date 2000-20102 | | | | |
Fund Expense Ratios3: Net 0.26%; Gross 0.40% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.26% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
5Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report6
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2015 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2015 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20152 | | | | |
Fund Expense Ratios3: Net 0.28%; Gross 0.39% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.28% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
7Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report8
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2020 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2020 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20202 | | | | |
Fund Expense Ratios3: Net 0.29%; Gross 0.32% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.29% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
9Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report10
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2025 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2025 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20252 | | | | |
Fund Expense Ratios3: Net 0.35%; Gross 0.38% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.35% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
11Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report12
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2030 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2030 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20302 | | | | |
Fund Expense Ratios3: Net 0.42%; Gross 0.44% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.42% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
13Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report14
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2035 Fund (3/12/08) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2035 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20352 | | | | |
Fund Expense Ratios3: Net 0.47%; Gross 0.50% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.47% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
15Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report16
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2040 Fund (7/1/05) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2040 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20402 | | | | |
Fund Expense Ratios3: Net 0.50%; Gross 0.52% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.50% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
17Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report18
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2045 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2045 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20452 | | | | |
Fund Expense Ratios3: Net 0.54%; Gross 0.59% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.54% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
19Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report20
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2050 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2050 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20502 | | | | |
Fund Expense Ratios3: Net 0.56%; Gross 0.61% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.56% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
21Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,5
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
5
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report22
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2055 Fund (1/23/13) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2055 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20552 | | | | |
Fund Expense Ratios3: Net 0.58%; Gross 0.65% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.58% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
23Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report24
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab Target 2060 Fund (8/25/16) | | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | | |
Bloomberg US Aggregate Bond Index | | | | |
Target 2060 Composite Index | | | | |
Fund Category: Morningstar Target-Date 20602 | | | | |
Fund Expense Ratios3: Net 0.59%; Gross 0.79% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.59% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
25Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report26
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | |
Fund: Schwab Target 2065 Fund (2/25/21) | | | |
Dow Jones U.S. Total Stock Market IndexSM | | | |
Bloomberg US Aggregate Bond Index | | | |
Target 2065 Composite Index | | | |
Fund Category: Morningstar Target-Date 2065+2 | | | |
Fund Expense Ratios3: Net 0.59%; Gross 1.69% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.59% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
27Schwab Target Funds | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2,3
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
2
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.
3
The fund intends to invest in a combination of the underlying funds; however, the fund may also invest directly in equity and fixed-income securities and money market securities.
4
This list is not a recommendation of any security by the investment adviser.
Schwab Target Funds | Semiannual Report28
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 transfer agent fees and other fund expenses.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning November 1, 2022 and held through April 30, 2023.
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 under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in 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.
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.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
| EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
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29Schwab Target Funds | Semiannual Report
Fund Expenses (Unaudited) (continued)
| EXPENSE RATIO (ANNUALIZED)1,2 | EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4 | BEGINNING ACCOUNT VALUE AT 11/1/22 | ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 4/30/232 | EXPENSES PAID DURING PERIOD 11/1/22-4/30/232,5 | EFFECTIVE EXPENSES PAID DURING PERIOD 11/1/22-4/30/234,5 |
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| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 181 days in the period, and divided by the 365 days in the fiscal year. |
Schwab Target Funds | Semiannual Report30
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
31Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 75.2% OF NET ASSETS |
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Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
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Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
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Schwab Small-Cap Equity Fund | | | | | | | | |
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International Stocks 7.9% |
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Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
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|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.7% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 26.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $32,011,295) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report32
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 23.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 16.1% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar- Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $11,540,945) | | | | | | | | |
Total Investments in Securities
(Cost $43,552,240) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
33Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $32,011,295) | | |
Investments in securities, at value - unaffiliated (cost $11,540,945) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report34
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
35Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report36
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
37Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 75.6% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 9.1% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.3% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 24.3% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $37,726,927) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report38
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 23.8% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 15.2% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar- Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $13,847,369) | | | | | | | | |
Total Investments in Securities
(Cost $51,574,296) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
39Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $37,726,927) | | |
Investments in securities, at value - unaffiliated (cost $13,847,369) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report40
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized gains on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
41Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report42
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
43Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 75.6% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 10.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 6.1% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 23.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $242,571,641) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report44
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 23.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
|
Intermediate-Term Bond 14.8% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $91,493,916) | | | | | | | | |
Total Investments in Securities
(Cost $334,065,557) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
45Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $242,571,641) | | |
Investments in securities, at value - unaffiliated (cost $91,493,916) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report46
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
Portfolio accounting fees | | |
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized gains on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
47Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report48
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
49Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 73.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 12.8% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 4.2% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 19.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $321,486,194) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report50
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 25.5% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 0.3% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 13.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $130,008,797) | | | | | | | | |
Total Investments in Securities
(Cost $451,494,991) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
51Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $321,486,194) | | |
Investments in securities, at value - unaffiliated (cost $130,008,797) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report52
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
Portfolio accounting fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
53Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report54
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
55Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 72.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 16.7% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Inflation-Protected Bond 1.5% |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | |
Intermediate-Term Bond 13.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $562,135,739) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report56
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 26.3% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 1.1% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 11.4% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $256,790,621) | | | | | | | | |
Total Investments in Securities
(Cost $818,926,360) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
57Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $562,135,739) | | |
Investments in securities, at value - unaffiliated (cost $256,790,621) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report58
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
Portfolio accounting fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
59Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report60
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
61Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 74.1% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 19.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 9.5% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $331,339,008) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report62
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 25.2% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 1.9% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 9.0% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $136,407,097) | | | | | | | | |
Total Investments in Securities
(Cost $467,746,105) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
63Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $331,339,008) | | |
Investments in securities, at value - unaffiliated (cost $136,407,097) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report64
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
Portfolio accounting fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized gains on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
65Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report66
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
67Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 74.7% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 21.6% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 6.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, Ultra Shares, 4.82% (b) | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $607,316,208) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report68
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 24.4% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 2.7% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 6.9% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $257,462,136) | | | | | | | | |
Total Investments in Securities
(Cost $864,778,344) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
69Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $607,316,208) | | |
Investments in securities, at value - unaffiliated (cost $257,462,136) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report70
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
71Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report72
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
73Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 77.0% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 23.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 3.8% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $168,453,296) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report74
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 22.3% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 3.8% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 4.8% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $53,496,648) | | | | | | | | |
Total Investments in Securities
(Cost $221,949,944) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
75Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $168,453,296) | | |
Investments in securities, at value - unaffiliated (cost $53,496,648) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report76
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
77Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report78
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
79Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 78.4% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 24.4% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 2.5% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $171,695,839) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report80
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 20.9% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 4.6% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 3.4% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $49,564,392) | | | | | | | | |
Total Investments in Securities
(Cost $221,260,231) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
81Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $171,695,839) | | |
Investments in securities, at value - unaffiliated (cost $49,564,392) | | |
| | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report82
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
83Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report84
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
| Less than 0.005%; the ratio of net operating expenses would have been 0.00%, if certain non-routine expenses had not been incurred. |
85Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 80.0% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 25.1% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.9% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $119,514,627) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report86
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 19.4% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.0% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 2.4% |
Baird Aggregate Bond Fund, Institutional Class | | | | | | | | |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar-Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $31,121,802) | | | | | | | | |
Total Investments in Securities
(Cost $150,636,429) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
87Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $119,514,627) | | |
Investments in securities, at value - unaffiliated (cost $31,121,802) | | |
| | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report88
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
89Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report90
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
91Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 81.4% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 25.8% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 1.2% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $39,146,703) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report92
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 18.1% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.5% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 1.4% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
Western Asset Core Plus Bond Fund, Class I | | | | | | | | |
| | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar- Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $9,073,511) | | | | | | | | |
Total Investments in Securities
(Cost $48,220,214) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
93Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $39,146,703) | | |
Investments in securities, at value - unaffiliated (cost $9,073,511) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
Schwab Target Funds | Semiannual Report94
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
Interest received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized losses on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
95Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report96
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)2 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses4 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Commencement of operations. |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
97Schwab Target Funds | Semiannual Report
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 81.9% OF NET ASSETS |
|
|
|
| | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab Select Large Cap Growth Fund * | | | | | | | | |
| | | | | | | | |
|
Schwab U.S. Mid-Cap Index Fund | | | | | | | | |
|
Schwab Small-Cap Equity Fund | | | | | | | | |
| | | | | | | | |
|
International Stocks 26.1% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | |
| | | | | | | | |
|
|
|
Schwab Global Real Estate Fund | | | | | | | | |
|
|
Intermediate-Term Bond 0.5% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $9,016,386) | | | | | | | | |
|
Schwab Target Funds | Semiannual Report98
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
UNAFFILIATED UNDERLYING FUNDS 17.8% OF NET ASSETS |
|
|
|
ClearBridge Large Cap Growth Fund, Class IS * | | | | | | | | |
Dodge & Cox Stock Fund, Class I | | | | | | | | |
| | | | | | | | |
|
ClearBridge Small Cap Growth Fund, Class IS * | | | | | | | | |
| | | | | | | | |
|
International Stocks 5.7% |
|
Goldman Sachs Emerging Markets Equity Insights Fund, Institutional Class | | | | | | | | |
|
|
Intermediate-Term Bond 1.0% |
Loomis Sayles Investment Grade Bond Fund, Class Y | | | | | | | | |
|
PIMCO International Bond Fund (U.S. Dollar- Hedged), Institutional Class | | | | | | | | |
| | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $2,019,135) | | | | | | | | |
Total Investments in Securities
(Cost $11,035,521) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
99Schwab Target Funds | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $9,016,386) | | |
Investments in securities, at value - unaffiliated (cost $2,019,135) | | |
| | |
| | |
| | |
Due from investment adviser | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
| | |
| | |
Schwab Target Funds | Semiannual Report100
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
| | |
|
|
| | |
| | |
Portfolio accounting fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Realized capital gain distributions received from underlying funds - unaffiliated | | |
Net realized losses on sales of securities - affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | | |
Net change in unrealized appreciation (depreciation) | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
101Schwab Target Funds | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Schwab Target Funds | Semiannual Report102
Financial Notes, unaudited
1. Business Structure of the Funds:
Each of the funds in this report is a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| Schwab Dividend Equity Fund |
| Schwab Large-Cap Growth Fund |
| Schwab Small-Cap Equity Fund |
| |
| Schwab International Core Equity 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 Target 2010 Index Fund |
Schwab S&P 500 Index Fund | Schwab Target 2015 Index Fund |
Schwab Small-Cap Index Fund® | Schwab Target 2020 Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Target 2025 Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2030 Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2035 Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Target 2040 Index Fund |
Schwab International Index Fund® | Schwab Target 2045 Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Target 2050 Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Target 2055 Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Target 2060 Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2065 Index Fund |
Schwab International Opportunities Fund | Schwab Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each of the Schwab Target Funds is considered a “fund of funds” because it invests in other mutual funds or exchange-traded funds (ETFs). Each of the funds seeks to achieve its investment objective by investing primarily in a combination of other affiliated Schwab mutual funds. Each fund may also invest in affiliated Schwab ETFs and unaffiliated third party mutual funds and ETFs (referred to herein as unaffiliated funds and, together with Schwab Funds and Schwab ETFs, as the underlying funds). Each fund invests in the underlying funds in accordance with its target portfolio allocation.
Each fund in this report offers one share class. 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
103Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
• 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.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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
Schwab Target Funds | Semiannual Report104
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a 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.
The levels associated with valuing the funds’ investments as of April 30, 2023, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(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. Each fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by a fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive distributions, 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 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.
105Schwab Target Funds | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(j) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the funds to underperform other funds with a similar investment objective. The funds are not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the funds are an appropriate investment in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to each fund and is legally obligated to act in each fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
• Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Management Risk. Generally,the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or subadviser(s)) will make poor security selections. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an
Schwab Target Funds | Semiannual Report106
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
• Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
• Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
• Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
• Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recording requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk and management risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the
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Financial Notes, unaudited (continued)
3. Risk Factors (continued):
underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
• Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
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 (the investment adviser), a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund’s investment adviser and administrator pursuant to the Investment Advisory and Administration Agreement between the investment adviser and the trust. The investment adviser does not receive a fee for the services it performs for the funds. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds that serve as underlying funds.
Shareholder Servicing
The Board has adopted a Shareholder Servicing 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., a broker-dealer affiliate of an investment adviser (together, service providers), of certain account maintenance, customer liaison and shareholder services to the current shareholders of the funds. The funds are not subject to any fee under the Plan.
Expense Limitation
The investment adviser and its affiliates have agreed with the funds, for so long as the investment adviser serves as the investment adviser to the funds, in which the agreement 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 to 0.00%.
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by a fund through its investments in the underlying funds.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2023, each Schwab Target Fund’s ownership percentages of other related funds’ shares are as follows:
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Schwab Fundamental International Large Company Index Fund | | | | | | | | | | | | |
Schwab Fundamental US Large Company Index Fund | | | | | | | | | | | | |
Schwab Global Real Estate Fund | | | | | | | | | | | | |
Schwab International Core Equity Fund | | | | | | | | | | | | |
Schwab International Opportunities Fund | | | | | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | | | | | |
Schwab Select Large Cap Growth Fund | | | | | | | | | | | | |
Schwab Short-Term Bond Index Fund | | | | | | | | | | | | |
Schwab Small-Cap Equity Fund | | | | | | | | | | | | |
Schwab Treasury Inflation Protected Securities Index Fund | | | | | | | | | | | | |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | | | | | |
Schwab U.S. Mid Cap Index Fund | | | | | | | | | | | | |
Schwab Variable Share Price Money Fund, Ultra Shares | | | | | | | | | | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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 trusts were in compliance with these limitations throughout the report period. The funds did not pay any of these interested persons for their services as trustees, but they did pay non-interested persons (independent trustees), as noted in 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.
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Financial Notes, unaudited (continued)
During the period, the funds were participants with other funds in the Fund Complex in a joint, syndicated, committed $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. 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 28, 2023. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds 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. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding short-term obligations) were as follows:
8. Federal Income Taxes:As of April 30, 2023, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
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Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
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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 in 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 October 31, 2022, 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 each fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the funds did not incur any interest or penalties.
9. 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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Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 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.
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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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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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 | |
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). | | |
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). | | |
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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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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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asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
Bloomberg US Treasury Inflation-Linked Bond Index (Series-L) An index which includes all publicly-issued U.S. Treasury Inflation-Protected Securities (TIPS) that have at least one year remaining to maturity, are rated investment grade and have $500 million or more of outstanding face value. The TIPS in the index must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The index is market capitalization weighted and the TIPS in the index are updated on the last business day of each month. TIPS are publicly issued, dollar denominated U.S. Government securities issued by the U.S. Treasury that have principal and interest payments linked to an official inflation measure (as measured by the Consumer Price Index, or CPI) and their payments are supported by the full faith and credit of the United States.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called ��fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
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.
FTSE EPRA Nareit Global Index (Net) An index that provides a diverse representation of publicly traded equity real estate investment trusts (REITs) and listed property companies worldwide. The index constituents are free-float adjusted, and screened on liquidity, size and revenue. The index is comprised of countries in developed and emerging markets. The Net of Tax Index is calculated based on the maximum withholding tax rates applicable to dividends received by institutional investors who are not resident in the same country as the remitting company and who do not benefit from double taxation treaties.
FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
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MSCI Emerging Markets Index (Net) A free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global emerging markets. This series approximates the minimum possible dividend reinvestment. The returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell Midcap Index An index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
Target 2010 Composite Index A custom blended index developed by Schwab Asset Management based on the 2010 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 23.0% S&P 500 Index, 1.2% Russell Midcap Index, 1.8% Russell 2000 Index, 7.9% MSCI EAFE Index (Net), 41.3% Bloomberg US Aggregate Bond Index, 2.6% FTSE EPRA Nareit Global Index (Net), 6.7% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.1% Bloomberg Global Aggregate ex-US Hedged Index, 0.8% Bloomberg US Government/Credit Index, 8.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.6% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2015 Composite Index A custom blended index developed by Schwab Asset Management based on the 2015 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 25.1% S&P 500 Index, 1.4% Russell Midcap Index, 2.0% Russell 2000 Index, 9.0% MSCI EAFE Index (Net), 38.5% Bloomberg US Aggregate Bond Index, 2.8% FTSE EPRA Nareit Global Index (Net), 6.3% Bloomberg US
Treasury Inflation-Linked Bond Index (Series-L), 2.2% Bloomberg Global Aggregate ex-US Hedged Index, 1.1% Bloomberg US Government/Credit Index, 7.4% Bloomberg US Government/Credit 1-5 Year Index, and 4.2% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2020 Composite Index A custom blended index developed by Schwab Asset Management based on the 2020 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 26.4% S&P 500 Index, 1.5% Russell Midcap Index, 2.1% Russell 2000 Index, 9.9% MSCI EAFE Index (Net), 36.7% Bloomberg US Aggregate Bond Index, 3.0% FTSE EPRA Nareit Global Index (Net), 6.1% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 2.2% Bloomberg Global Aggregate ex-US Hedged Index, 1.3% Bloomberg US Government/Credit Index, 7.0% Bloomberg US Government/Credit 1-5 Year Index, and 3.8% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2025 Composite Index A custom blended index developed by Schwab Asset Management based on the 2025 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000® Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 29.8% S&P 500 Index, 1.4% Russell Midcap Index, 2.6% Russell 2000 Index, 12.8% MSCI EAFE Index (Net), 31.2% Bloomberg US Aggregate Bond Index, 3.5% FTSE EPRA Nareit Global Index (Net), 0.3% MSCI Emerging Markets Index (Net), 4.2% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 3.1% Bloomberg Global Aggregate ex-US Hedged Index, 1.8% Bloomberg US Government/Credit Index, 5.8% Bloomberg US Government/Credit 1-5 Year Index, and 3.3% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2030 Composite Index A custom blended index developed by Schwab Asset Management based on the 2030 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 36.1% S&P 500 Index, 1.6% Russell Midcap Index, 3.8% Russell 2000 Index, 16.5% MSCI EAFE Index (Net), 22.0% Bloomberg US Aggregate Bond Index, 4.4% FTSE EPRA Nareit Global Index (Net), 1.1% MSCI Emerging Markets Index (Net), 1.4% Bloomberg US Treasury Inflation-Linked Bond Index (Series-L), 4.1% Bloomberg Global Aggregate ex-US Hedged Index, 2.6% Bloomberg US Government/Credit Index, 3.9%
117Schwab Target Funds | Semiannual Report
Bloomberg US Government/Credit 1-5 Year Index, and 2.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2035 Composite Index A custom blended index developed by Schwab Asset Management based on the 2035 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 40.4% S&P 500 Index, 1.7% Russell Midcap Index, 4.7% Russell 2000 Index, 19.2% MSCI EAFE Index (Net), 15.6% Bloomberg US Aggregate Bond Index, 5.1% FTSE EPRA Nareit Global Index (Net), 2.0% MSCI Emerging Markets Index (Net), 3.8% Bloomberg Global Aggregate ex-US Hedged Index, 2.9% Bloomberg US Government/Credit Index, 2.7% Bloomberg US Government/Credit 1-5 Year Index, and 1.9% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2040 Composite Index A custom blended index developed by Schwab Asset Management based on the 2040 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 43.6% S&P 500 Index, 1.8% Russell Midcap Index, 5.6% Russell 2000 Index, 21.4% MSCI EAFE Index (Net), 10.4% Bloomberg US Aggregate Bond Index, 5.7% FTSE EPRA Nareit Global Index (Net), 2.9% MSCI Emerging Markets Index (Net), 2.8% Bloomberg Global Aggregate ex-US Hedged Index, 2.8% Bloomberg US Government/Credit Index, 1.8% Bloomberg US Government/Credit 1-5 Year Index, and 1.4% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2045 Composite Index A custom blended index developed by Schwab Asset Management based on the 2045 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 46.0% S&P 500 Index, 1.9% Russell Midcap Index, 6.4% Russell 2000 Index, 23.2% MSCI EAFE Index (Net), 6.2% Bloomberg US Aggregate Bond Index, 6.1% FTSE EPRA Nareit Global Index (Net), 3.8% MSCI Emerging Markets Index (Net), 1.8% Bloomberg Global Aggregate ex-US Hedged Index, 2.4% Bloomberg US Government/Credit Index, 1.1% Bloomberg US Government/Credit 1-5 Year Index, and 0.9% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2050 Composite Index A custom blended index developed by Schwab Asset Management based on the 2050 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 47.2% S&P 500 Index, 2.0% Russell Midcap Index, 7.0% Russell 2000 Index, 24.3% MSCI EAFE Index (Net), 3.9% Bloomberg US Aggregate Bond Index, 6.4% FTSE EPRA Nareit Global Index (Net), 4.6% MSCI Emerging Markets Index (Net), 1.3% Bloomberg Global Aggregate ex-US Hedged Index, 2.0% Bloomberg US Government/Credit Index, 0.7% Bloomberg US Government/Credit 1-5 Year Index, and 0.7% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2055 Composite Index A custom blended index developed by Schwab Asset Management based on the 2055 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective March 1, 2014, the Dow Jones U.S. Total Stock Market Index was replaced by a combination of the S&P 500 Index and the Russell 2000 Index. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 47.9% S&P 500 Index, 2.0% Russell Midcap Index, 7.3% Russell 2000 Index, 24.9% MSCI EAFE Index (Net), 2.6% Bloomberg US Aggregate Bond Index, 6.6% FTSE EPRA Nareit Global Index (Net), 5.1% MSCI Emerging Markets Index (Net), 0.9% Bloomberg Global Aggregate ex-US Hedged Index, 1.6% Bloomberg US Government/Credit Index, 0.6% Bloomberg US Government/Credit 1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2060 Composite Index A custom blended index developed by Schwab Asset Management based on the 2060 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective August 24, 2018, the FTSE non-US Dollar World Government Bond Index was replaced by the Bloomberg Global Aggregate ex-US Hedged Index. Effective February 1, 2023, the composite is derived using the following portion allocations: 48.4% S&P 500 Index, 2.0% Russell Midcap Index, 7.6% Russell 2000 Index, 25.5% MSCI EAFE Index (Net), 1.3% Bloomberg US Aggregate Bond Index, 6.7% FTSE EPRA Nareit Global Index (Net), 5.6% MSCI Emerging Markets Index (Net), 0.6% Bloomberg Global Aggregate ex-US Hedged Index, 1.2% Bloomberg US Government/Credit Index, 0.5% Bloomberg US Government/Credit 1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
Target 2065 Composite Index A custom blended index developed by Schwab Asset Management based on the 2065 fund’s asset allocation glide schedule and will become more conservative as time elapses. Effective February 1, 2023, the composite is derived using the following portion allocations: 48.7% S&P 500 Index, 2.1% Russell Midcap Index, 7.8% Russell 2000 Index, 25.8% MSCI EAFE Index (Net), 0.5% Bloomberg US Aggregate Bond Index, 6.8% FTSE EPRA Nareit Global Index (Net), 5.8% MSCI Emerging Markets Index (Net), 0.5% Bloomberg Global Aggregate ex-US Hedged Index, 1.0% Bloomberg US Government/Credit Index, 0.5% Bloomberg US Government/Credit
Schwab Target Funds | Semiannual Report118
1-5 Year Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. The components that make up the composite index may vary over time. The composite index represents target allocations for 2023. Percentages listed may not total to 100% due to rounding.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
119Schwab Target Funds | Semiannual Report
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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab Balanced Fund
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Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab Balanced Fund | Semiannual Report1
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab Balanced Fund (Ticker Symbol: SWOBX) | |
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Fund Category: Morningstar Moderate Allocation1 | |
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All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up the composite index may vary over time. For index definition, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2Schwab Balanced Fund | Semiannual Report
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the fund. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab Balanced Fund | Semiannual Report3
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab Balanced Fund (11/18/96) | | | | |
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Bloomberg US Aggregate Bond Index | | | | |
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Fund Category: Morningstar Moderate Allocation2 | | | | |
Fund Expense Ratios3: Net 0.49%; Gross 0.52% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.49% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as Schwab Asset Management serves as the investment adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
4Schwab Balanced Fund | Semiannual Report
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3,4
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
4
The holdings listed exclude any temporary liquidity investments.
Schwab Balanced Fund | Semiannual Report5
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 transfer agent 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 November 1, 2022 and held through April 30, 2023.
The Actual Return line in the table below provides 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.”
The Hypothetical Return line in the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical return line of the table is 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.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
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| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
6Schwab Balanced Fund | Semiannual Report
Financial Statements
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Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
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Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
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Net asset value at end of period | | | | | | |
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Ratios to average net assets: | | | | | | |
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Gross operating expenses4 | | | | | | |
Net investment income (loss) | | | | | | |
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Net assets, end of period (x 1,000) | | | | | | |
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| Calculated based on the average shares outstanding during the period. |
| 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. |
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| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
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| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab Balanced Fund | Semiannual Report7
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 99.3% OF NET ASSETS |
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Schwab Select Large Cap Growth Fund * | | | | | | | | |
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Schwab Small-Cap Equity Fund | | | | | | | | |
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International Stocks 10.0% |
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Schwab International Opportunities Fund | | | | | | | | |
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Intermediate-Term Bond 37.0% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
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Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $643,603,926) | | | | | | | | |
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UNAFFILIATED UNDERLYING FUNDS 0.5% OF NET ASSETS |
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State Street Institutional U.S. Government Money Market Fund, Premier Class, | | | | | | | | |
Total Unaffiliated Underlying Funds
(Cost $3,135,911) | | | | | | | | |
Total Investments in Securities
(Cost $646,739,837) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(c) for additional information). |
| The rate shown is the annualized 7-day yield. |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds, which could be
Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).
8Schwab Balanced Fund | Semiannual Report
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $643,603,926) | | |
Investments in securities, at value - unaffiliated (cost $3,135,911) | | |
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Due from investment adviser | | |
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Independent trustees’ fees | | |
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Capital received from investors | | |
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| | |
Schwab Balanced Fund | Semiannual Report9
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
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Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
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Portfolio accounting fees | | |
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Independent trustees’ fees | | |
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REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Net realized losses on sales of securities - affiliated | | |
Net realized gains on sales of securities - unaffiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
10Schwab Balanced Fund | Semiannual Report
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
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Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
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DISTRIBUTIONS TO SHAREHOLDERS |
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TRANSACTIONS IN FUND SHARES |
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Net transactions in fund shares | | | | | |
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SHARES OUTSTANDING AND NET ASSETS |
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Total increase (decrease) | | | | | |
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Schwab Balanced Fund | Semiannual Report11
Financial Notes, unaudited
1. Business Structure of the Fund:
Schwab Balanced Fund is a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
| |
Schwab S&P 500 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 Fundamental US Large Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental US Small Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental International Large Company Index Fund |
Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Small Company Index Fund |
Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
Schwab MarketTrack Conservative Portfolio™ | Schwab Target 2010 Index Fund |
Schwab International Opportunities Fund | Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity Fund | Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
| Schwab Target 2055 Index Fund |
| Schwab Target 2060 Index Fund |
| Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund – Target Payout |
| Schwab Monthly Income Fund – Flexible Payout |
| Schwab Monthly Income Fund – Income Payout |
The Schwab Balanced Fund is a “fund of funds” because it invests in other mutual funds or exchange-traded funds (ETFs). The fund seeks to achieve its investment objective by generally investing in a diversified group of other affiliated Schwab Funds but may also invest in other unaffiliated mutual funds or ETFs (referred to herein, together with Schwab Funds, as the underlying funds). The fund invests in accordance with its target portfolio allocation.
The fund offers one share class. Shares are bought and sold at closing net asset value per share (NAV), which is the price for all outstanding shares of the 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The financial statements of the fund should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
12Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
• 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.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used 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.
Schwab Balanced Fund | Semiannual Report13
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The levels associated with valuing the fund’s investments as of April 30, 2023, are disclosed in the fund’s Portfolio Holdings.
(b) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(c) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(d) 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. The fund bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by a fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(e) Distributions to Shareholders:
The fund makes distributions from net investment income and 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.
(f) 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.
(g) 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.
(h) 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.
(i) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the fund may involve certain risks, as discussed in the fund’s prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
14Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
Asset Allocation Risk. The fund is subject to the risk that the selection of the underlying funds and the allocation of the fund’s assets among the various asset classes and market segments may cause the fund to underperform other funds with a similar investment objective. The fund is not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the fund is an appropriate investment in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of the fund. However, the investment adviser is a fiduciary to the fund and is legally obligated to act in the fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Direct Investment Risk. The fund may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain its allocations. The fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Underlying Fund Investment Risk. Before investing in the fund, investors should assess the risks associated with the underlying funds in which the fund may invest, which include any combination of the risks described below.
• Investment Risk. The fund may experience losses with respect to its investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Management Risk. Generally, the underlying funds are actively managed mutual funds. Any actively managed mutual fund is subject to the risk that its investment adviser (or subadviser(s)) will select or allocate assets that could cause the fund to underperform or otherwise not meet its objective. An underlying fund’s adviser applies its own investment techniques and risk analyses in making investment decisions for the underlying fund, but there can be no guarantee that they will produce the desired results.
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
• Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
• Growth Investing Risk. An underlying fund’s investments in growth stocks can be volatile. Growth companies usually invest a high portion of earnings in their businesses and may lack the dividends of value stocks that can cushion stock prices in a falling market. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically. Growth stocks may also be more expensive relative to their earnings or assets compared to value or other stocks.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
Schwab Balanced Fund | Semiannual Report15
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• ETF Risk. When an underlying fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
• Money Market Fund Risk. The fund may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when the fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
• Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk, market risk and management risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause the fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that the fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
16Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
• Securities Lending Risk. An underlying fund may lend its portfolio securities to brokers, dealers, and other financial institutions. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
• Mortgage-Backed and Mortgage Pass-Through Securities Risk. Mortgage-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar or greater risk of decline in market value during periods of rising interest rates. Certain of the mortgage-backed securities in which an underlying fund may invest are issued or guaranteed by agencies or instrumentalities of the U.S. government but are not backed by the full faith and credit of the U.S. government. There can be no assurance that the U.S. government would provide financial support to its agencies or instrumentalities where it was not obligated to do so which can cause an underlying fund to lose money or underperform. The risks of investing in mortgage-backed securities include, among others, interest rate risk, credit risk, prepayment risk and extension risk. Transactions in mortgage pass-through securities often occur through to-be-announced (TBA) transactions. An underlying fund could lose money or underperform if a TBA counterparty defaults or goes bankrupt.
• Mortgage Dollar Rolls Risk. Mortgage dollar rolls are transactions in which an underlying fund sells mortgage-backed securities to a dealer and simultaneously agrees to repurchase similar securities in the future at a predetermined price. An underlying fund’s mortgage dollar rolls could lose money if the price of the mortgage-backed securities sold falls below the agreed upon repurchase price, or if the counterparty is unable to honor the agreement.
Please refer to the fund’s prospectus for a more complete description of the principal risks of investing in the fund.
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. The investment adviser does not receive a fee for the services it performs for the fund. However, the investment adviser is entitled to receive an annual management fee from each of the affiliated Schwab Funds that serve as underlying funds.
Shareholder Servicing
The Board has adopted a Shareholder Servicing 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., 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. The fund is not subject to any fee under the Plan.
Expense Limitation
The investment adviser and its affiliates have agreed with the fund, for so long as the investment adviser serves as the investment adviser to the fund, in which the agreement 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 to 0.00%.
The agreement to limit the fund’s total expenses charged is limited to the fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in the underlying funds.
Schwab Balanced Fund | Semiannual Report17
Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Investments in Affiliates
The fund may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the fund may invest in other related funds. As of April 30, 2023, the fund’s ownership percentages of other related funds’ shares are as follows:
| |
Schwab International Opportunities Fund | |
Schwab Select Large Cap Growth Fund | |
Schwab Small-Cap Equity Fund | |
Schwab U.S. Aggregate Bond Index Fund | |
Schwab Variable Share Price Money Fund, Ultra Shares | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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 fund did not pay any of these interested persons for their services as trustees, but it did pay non-interested persons (independent trustees), as noted in 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. 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), with State Street Bank and Trust Company, maturing on September 28, 2023. Under the terms of the Uncommitted Credit Facility, the fund pays interest on the amount it borrows. There were no borrowings by the fund 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 in 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. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding short-term obligations) were as follows:
18Schwab Balanced Fund | Semiannual Report
Financial Notes, unaudited (continued)
As of April 30, 2023, the tax basis cost of the fund’s investments and gross unrealized appreciation and depreciation were as follows:
| GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
| | | |
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
| | |
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 in 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 October 31, 2022, 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 fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the fund did not incur any interest or penalties.
9. 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.
Schwab Balanced Fund | Semiannual Report19
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, 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 106 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.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
20Schwab Balanced Fund | Semiannual Report
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 | |
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). | | |
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). | | |
Schwab Balanced Fund | Semiannual Report21
|
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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
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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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
22Schwab Balanced Fund | Semiannual Report
Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, 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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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.
Schwab Balanced Fund | Semiannual Report23
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Blended Index A custom blended index developed by Schwab Asset Management that, effective February 1, 2022, is composed of 41.5% S&P 500 Index, 8.5% Russell 2000 Index, 10.0% MSCI EAFE Index (Net), 37.0% Bloomberg US Aggregate Bond Index, and 3.0% Bloomberg US Treasury Bills 1-3 Month Index. From January 29, 2019 through January 31, 2022, the composite was composed of 50% S&P 500 Index, 10% Russell 2000 Index, 37% Bloomberg US Aggregate Bond Index, and 3% Bloomberg US Treasury Bills 1-3 Month Index. From August 1, 2013 through January 28, 2019, the composite was composed of 50% S&P 500 Index, 10% Russell 2000 Index, 25% Bloomberg US Aggregate Bond Index, 12% Bloomberg US Intermediate Aggregate Bond Index and 3% Bloomberg US Treasury Bills 1-3 Month Index. Prior to August 1, 2013 the Balanced Blended Index was composed of 60% S&P 500 Index and 40% Bloomberg US Aggregate Bond Index. Percentages listed may not total to 100% due to rounding.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Intermediate Aggregate Bond Index An index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
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.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
24Schwab Balanced Fund | Semiannual Report
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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Semiannual Report | April 30, 2023
Schwab MarketTrack Portfolios®
Schwab MarketTrack
All Equity Portfolio™
Schwab MarketTrack
Growth Portfolio™
Schwab MarketTrack
Balanced Portfolio™
Schwab MarketTrack
Conservative Portfolio™
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Schwab MarketTrack Portfolios
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: Charles Schwab & Co., Inc. (Schwab)
Schwab MarketTrack Portfolios | Semiannual Report1
Schwab MarketTrack Portfolios
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Total Return for the 6 Months Ended April 30, 2023 |
Schwab MarketTrack All Equity Portfolio (Ticker Symbol: SWEGX) | |
All Equity Composite Index | |
Fund Category: Morningstar Aggressive Allocation1 | |
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Schwab MarketTrack Growth Portfolio (Ticker Symbol: SWHGX) | |
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Fund Category: Morningstar Moderately Aggressive Allocation1 | |
| |
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Schwab MarketTrack Balanced Portfolio (Ticker Symbol: SWBGX) | |
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Fund Category: Morningstar Moderate Allocation1 | |
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Schwab MarketTrack Conservative Portfolio (Ticker Symbol: SWCGX) | |
Conservative Composite Index | |
Fund Category: Morningstar Moderately Conservative Allocation1 | |
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All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.
1
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
2Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
| Zifan Tang, Ph.D., CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock). |
| Drew Hayes, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc. |
| Patrick Kwok, CFA, Portfolio Manager for Schwab Asset Management, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist. |
Schwab MarketTrack Portfolios | Semiannual Report3
Schwab MarketTrack All Equity Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack All Equity Portfolio (5/19/98) | | | | |
| | | | |
All Equity Composite Index | | | | |
Fund Category: Morningstar Aggressive Allocation2 | | | | |
Fund Expense Ratio3: 0.51% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.12% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
4Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report5
Schwab MarketTrack Growth Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
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Fund: Schwab MarketTrack Growth Portfolio (11/20/95) | | | | |
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Bloomberg US Aggregate Bond Index | | | | |
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Fund Category: Morningstar Moderately Aggressive Allocation2 | | | | |
Fund Expense Ratio3: 0.50% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.11% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
6Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report7
Schwab MarketTrack Balanced Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack Balanced Portfolio (11/20/95) | | | | |
| | | | |
Bloomberg US Aggregate Bond Index | | | | |
| | | | |
Fund Category: Morningstar Moderate Allocation2 | | | | |
Fund Expense Ratio3: 0.49% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.09% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
8Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report9
Schwab MarketTrack Conservative Portfolio
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.
Average Annual Total Returns1
| | | | |
Fund: Schwab MarketTrack Conservative Portfolio (11/20/95) | | | | |
| | | | |
Bloomberg US Aggregate Bond Index | | | | |
Conservative Composite Index | | | | |
Fund Category: Morningstar Moderately Conservative Allocation2 | | | | |
Fund Expense Ratio3: 0.50% |
All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.
For index definitions, please see the Glossary.
1
Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2
Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3
As stated in the prospectus. Includes 0.08% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Reflects the total annual fund operating expenses without contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.
10Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Performance and Fund Facts as of April 30, 2023
Asset Class Weightings % of Investments2
Top Holdings % of Net Assets3
Portfolio holdings may have changed since the report date.
Small-company stocks are subject to greater volatility than many other asset classes.
International investments are subject to additional risks such as currency fluctuation, geopolitical risk and the potential for illiquid markets.
2
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.
3
This list is not a recommendation of any security by the investment adviser.
Schwab MarketTrack Portfolios | Semiannual Report11
Schwab MarketTrack Portfolios
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 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 November 1, 2022 and held through April 30, 2023.
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 under the heading entitled “Expenses Paid During Period.”
Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in 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.
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.
| | | BEGINNING
ACCOUNT VALUE
AT 11/1/22 | ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 4/30/23 | EXPENSES PAID
DURING PERIOD
| EFFECTIVE
EXPENSES PAID
DURING PERIOD
|
Schwab MarketTrack All Equity Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Growth Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Balanced Portfolio | | | | | | |
| | | | | | |
| | | | | | |
Schwab MarketTrack Conservative Portfolio | | | | | | |
| | | | | | |
| | | | | | |
| Based on the most recent six-month expense ratio. |
| Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratio in the prospectus. |
| Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days in the period, and divided by 365 days in the fiscal year. |
12Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab MarketTrack Portfolios | Semiannual Report13
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 99.5% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund * | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 29.8% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
Total Affiliated Underlying Funds
(Cost $447,630,308) | | | | | | | | |
Total Investments in Securities
(Cost $447,630,308) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| |
| Real Estate Investment Trust |
14Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3 (see financial note 2(a) for additional information).
Schwab MarketTrack Portfolios | Semiannual Report15
Schwab MarketTrack All Equity Portfolio
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $447,630,308) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
16Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack All Equity Portfolio
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Net realized losses on sales of securities - affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab MarketTrack Portfolios | Semiannual Report17
Schwab MarketTrack All Equity Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
18Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab MarketTrack Portfolios | Semiannual Report19
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 99.2% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund * | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 20.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 16.0% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $531,183,574) | | | | | | | | |
Total Investments in Securities
(Cost $531,183,574) | | | | | | | | |
20Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (see financial note 2(a) for additional information).
Schwab MarketTrack Portfolios | Semiannual Report21
Schwab MarketTrack Growth Portfolio
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $531,183,574) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
22Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Growth Portfolio
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Net realized gains on sales of securities - affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
| Proxy fees are non-routine expenses (see financial note 4 for additional information). |
Schwab MarketTrack Portfolios | Semiannual Report23
Schwab MarketTrack Growth Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
24Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab MarketTrack Portfolios | Semiannual Report25
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 99.4% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund * | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 15.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 35.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
26Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $399,311,831) | | | | | | | | |
Total Investments in Securities
(Cost $399,311,831) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (see financial note 2(a) for additional information).
Schwab MarketTrack Portfolios | Semiannual Report27
Schwab MarketTrack Balanced Portfolio
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $399,311,831) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
28Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Balanced Portfolio
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
| | |
Portfolio accounting fees | | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Net realized gains on sales of securities - affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab MarketTrack Portfolios | Semiannual Report29
Schwab MarketTrack Balanced Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
Total increase (decrease) | | | | | |
| | | | | |
30Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Financial Statements
| | | | | | |
|
Net asset value at beginning of period | | | | | | |
Income (loss) from investment operations: | | | | | | |
Net investment income (loss)1 | | | | | | |
Net realized and unrealized gains (losses) | | | | | | |
Total from investment operations | | | | | | |
| | | | | | |
Distributions from net investment income | | | | | | |
Distributions from net realized gains | | | | | | |
| | | | | | |
Net asset value at end of period | | | | | | |
| | | | | | |
|
Ratios to average net assets: | | | | | | |
| | | | | | |
Gross operating expenses3 | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (x 1,000) | | | | | | |
| |
| Calculated based on the average shares outstanding during the period. |
| |
| Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. |
| |
| Ratio includes less than 0.005% of non-routine proxy expenses. |
Schwab MarketTrack Portfolios | Semiannual Report31
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited)
This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.
The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to orders@mysummaryprospectus.com. The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
AFFILIATED UNDERLYING FUNDS 99.7% OF NET ASSETS |
|
|
|
Schwab Fundamental US Large Company Index Fund | | | | | | | | |
Schwab S&P 500 Index Fund | | | | | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental US Small Company Index Fund * | | | | | | | | |
Schwab Small-Cap Index Fund | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
|
International Stocks 10.0% |
|
Schwab Fundamental International Large Company Index Fund | | | | | | | | |
Schwab Fundamental International Small Company Index Fund | | | | | | | | |
Schwab International Index Fund | | | | | | | | |
| | | | | | | | |
|
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | | | | | |
| | | | | | | | |
|
|
|
| | | | | | | | |
|
|
Intermediate-Term Bond 55.1% |
Schwab U.S. Aggregate Bond Index Fund | | | | | | | | |
|
Schwab Short-Term Bond Index Fund | | | | | | | | |
| | | | | | | | |
|
32Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Portfolio Holdings as of April 30, 2023 (Unaudited) (continued)
| | | | | NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) | | BALANCE OF SHARES HELD AT 4/30/23 | |
|
Schwab Variable Share Price Money Fund, | | | | | | | | |
Total Affiliated Underlying Funds
(Cost $189,712,798) | | | | | | | | |
Total Investments in Securities
(Cost $189,712,798) | | | | | | | | |
| Non-income producing security. |
| Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (see financial note 2(d) for additional information). |
| The rate shown is the annualized 7-day yield. |
| |
| Real Estate Investment Trust |
At April 30, 2023, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (see financial note 2(a) for additional information).
Schwab MarketTrack Portfolios | Semiannual Report33
Schwab MarketTrack Conservative Portfolio
Statement of Assets and Liabilities
As of April 30, 2023; unaudited
|
Investments in securities, at value - affiliated (cost $189,712,798) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Investment adviser and administrator fees | | |
Independent trustees’ fees | | |
| | |
| | |
| | |
|
|
Capital received from investors | | |
Total distributable earnings | | |
| | |
34Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Conservative Portfolio
Statement of Operations
For the period November 1, 2022 through April 30, 2023; unaudited |
|
Dividends received from securities - affiliated | | |
Dividends received from securities - unaffiliated | | |
| | |
|
|
| | |
Investment adviser and administrator fees | | |
| | |
Portfolio accounting fees | | |
| | |
| | |
Independent trustees’ fees | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
REALIZED AND UNREALIZED GAINS (LOSSES) |
Realized capital gain distributions received from underlying funds - affiliated | | |
Net realized gains on sales of securities - affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on securities - affiliated | | |
Net realized and unrealized gains | | |
Increase in net assets resulting from operations | | |
Schwab MarketTrack Portfolios | Semiannual Report35
Schwab MarketTrack Conservative Portfolio
Statement of Changes in Net Assets
For the current and prior report periods
Figures for the current period are unaudited
|
| | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Increase (decrease) in net assets resulting from operations | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS |
| | | |
TRANSACTIONS IN FUND SHARES |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Net transactions in fund shares | | | | | |
|
SHARES OUTSTANDING AND NET ASSETS |
| | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
36Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited
1. Business Structure of the Funds:
Schwab MarketTrack All Equity Portfolio, Schwab MarketTrack Growth Portfolio, Schwab MarketTrack Balanced Portfolio, and Schwab MarketTrack Conservative Portfolio (the funds) are each a series of Schwab Capital Trust (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:
SCHWAB CAPITAL TRUST (ORGANIZED MAY 7, 1993) |
Schwab MarketTrack All Equity Portfolio | |
Schwab MarketTrack Growth Portfolio | |
Schwab MarketTrack Balanced Portfolio | |
Schwab MarketTrack Conservative Portfolio | |
Schwab S&P 500 Index Fund | |
Schwab Small-Cap Index Fund® | Schwab Fundamental US Large Company Index Fund |
Schwab Total Stock Market Index Fund® | Schwab Fundamental US Small Company Index Fund |
Schwab U.S. Large-Cap Growth Index Fund | Schwab Fundamental International Large Company Index Fund |
Schwab U.S. Large-Cap Value Index Fund | Schwab Fundamental International Small Company Index Fund |
Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental Emerging Markets Large Company Index Fund |
Schwab International Index Fund® | Schwab Fundamental Global Real Estate Index Fund |
Schwab International Opportunities Fund | Schwab Target 2010 Index Fund |
| Schwab Target 2015 Index Fund |
| Schwab Target 2020 Index Fund |
Schwab Dividend Equity Fund | Schwab Target 2025 Index Fund |
Schwab Large-Cap Growth Fund | Schwab Target 2030 Index Fund |
Schwab Small-Cap Equity Fund | Schwab Target 2035 Index Fund |
| Schwab Target 2040 Index Fund |
Schwab International Core Equity Fund | Schwab Target 2045 Index Fund |
| Schwab Target 2050 Index Fund |
| Schwab Target 2055 Index Fund |
| Schwab Target 2060 Index Fund |
| Schwab Target 2065 Index Fund |
| Schwab Monthly Income Fund - Target Payout |
| Schwab Monthly Income Fund - Flexible Payout |
| Schwab Monthly Income Fund - Income Payout |
Each of the Schwab MarketTrack Portfolios is considered a “fund of funds” because it invests in other mutual funds or exchange-traded funds (ETFs). Each of the funds seeks to achieve its investment objective by investing mainly in a combination of other affiliated Schwab Funds, including Schwab index funds and ETFs (underlying funds), which use a variety of indexing strategies, in accordance with its target portfolio allocation.
Each fund in this report offers one share class. 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. The "Fund Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.
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).
The financial statements of the funds should be read in conjunction with the underlying funds’ financial statements. For more information about the underlying funds’ operations and policies, please refer to those funds’ semiannual and annual reports, which are filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC’s website at www.sec.gov.
Schwab MarketTrack Portfolios | Semiannual Report37
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
(a) Security Valuation:
Pursuant to Rule 2a-5 under the 1940 Act, the Board has designated authority to a Valuation Designee, the funds’ investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the funds’ portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
• Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes.
• Mutual funds: Mutual funds are valued at their respective NAVs.
• Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value a fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods 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. 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.
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 methods 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 it is determined 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 the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
• Level 1 — quoted prices in active markets for identical investments— Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, ETFs and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held.
• 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.
• Level 3 — significant unobservable inputs (including the Valuation Designee’s 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 readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used 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 in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore a fund’s results of operations.
38Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the funds’ investments as of April 30, 2023, are disclosed in each fund’s Portfolio Holdings.
(b) Accounting Policies for certain Portfolio Investments (if held):
Cash Investments: The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.
(c) Security Transactions:
Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.
(d) Investment Income:
Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.
(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 bears its share of the acquired fund fees and expenses of the underlying funds, which are indirect expenses incurred by the fund through its investments in the underlying funds. Such expenses are reflected in the net asset values of the underlying funds.
(f) Distributions to Shareholders:
The funds make distributions from net investment income and net realized capital gains, if any, once a year, except for the Schwab MarketTrack Conservative Portfolio, which makes distributions from net investment income at the end of each calendar quarter. 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 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) Regulatory Update:
Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information deemed important for retail investors to assess and monitor their fund investments. Other information, including financial statements, will no longer
Schwab MarketTrack Portfolios | Semiannual Report39
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
2. Significant Accounting Policies (continued):
appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these rule and form amendment changes on the content of the current shareholder report and the newly created annual and semiannual streamlined shareholder reports.
3. Risk Factors:Investing in the funds may involve certain risks, as discussed in the funds’ prospectus, including, but not limited to, those described below. Any of these risks could cause an investor to lose money.
Asset Allocation Risk. The funds are subject to the risk that the selection of the underlying funds and the allocation of a fund’s assets among the various asset classes and market segments may cause the funds to underperform other funds with a similar investment objective. The funds are not managed to maximize tax efficiency for taxable shareholder accounts. Investors should consider whether the funds are appropriate investments in light of their current financial position and retirement needs.
Conflicts of Interest Risk. The investment adviser’s authority to select and substitute underlying funds from a variety of affiliated and unaffiliated mutual funds and ETFs may create a conflict of interest because the fees paid to it and its affiliates by some underlying funds are higher than the fees paid by other underlying funds. The investment adviser also may have an incentive to select an affiliated underlying fund for other reasons, including to increase assets under management or to support new investment strategies. In addition, other conflicts of interest may exist where the best interests of the affiliated underlying fund may not be aligned with those of a fund. However, the investment adviser is a fiduciary to each fund and is legally obligated to act in each fund’s best interests when selecting underlying funds.
Market Risk. Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. 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.
Exchange-Traded Fund (ETF) Risk. When a fund invests in an ETF, it will bear a proportionate share of the ETF’s expenses. In addition, lack of liquidity in the market for an ETF’s shares can result in its value being more volatile than the underlying portfolio of securities.
Direct Investment Risk. The funds may invest directly in cash, cash equivalents and equity and fixed-income securities, including money market securities, to maintain their allocations. A fund’s direct investment in these securities is subject to the same or similar risks as an underlying fund’s investment in the same securities.
Securities Lending Risk. Securities lending involves the risk of loss of rights in, or delay in recovery of, the loaned securities if the borrower fails to return the security loaned or becomes insolvent.
Underlying Fund Investment Risk. Before investing in the funds, investors should assess the risks associated with the underlying funds in which the funds may invest, which include any combination of the risks described below.
• Investment Risk. The funds may experience losses with respect to their investment in an underlying fund. Further, there is no guarantee that an underlying fund will be able to achieve its objective.
• Investment Style Risk. Certain underlying funds seek to track the performance of various segments of the stock market, as measured by their respective indices. Such underlying funds follow these stocks during upturns as well as downturns. Because of their indexing strategy, these underlying funds do not take steps to reduce market exposure or to lessen the effects of a declining market. In addition, because of an underlying fund’s expenses, the underlying fund’s performance is normally below that of the index. Errors relating to an index may occur from time to time and may not be identified by the underlying fund’s index provider for a period of time. In addition, market disruptions could cause delays in an underlying fund’s index’s rebalancing schedule. Such errors and/or market disruptions may result in losses for an underlying fund.
• Tracking Error Risk. Each underlying index fund seeks to track the performance of its respective index, although it may not be successful in doing so. The divergence between the performance of an underlying fund and its index, positive or negative, is called "tracking error." Tracking error can be caused by many factors and it may be significant. If an underlying fund utilizes a sampling approach, it may not track the return of the index as well as it would if the underlying fund purchased all of the securities in the index.
40Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual companies, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.
• Fixed-Income Risk. Interest rates rise and fall over time, which will affect an underlying fund’s yield and share price. A change in a central bank’s monetary policy or economic conditions, among other things, may result in a change in interest rates. A rise in interest rates could cause an underlying fund’s share price to fall. The credit quality of a portfolio investment could also cause an underlying fund’s share price to fall. An underlying fund could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. Fixed-income securities may be paid off earlier or later than expected. Either situation could cause an underlying fund to hold securities paying lower-than-market rates of interest, which could hurt an underlying fund’s yield or share price. Below investment-grade bonds (junk bonds) involve greater credit risk, are more volatile, involve greater risk of price declines and may be more susceptible to economic downturns than investment-grade securities.
• Market Capitalization Risk. Securities issued by companies of different market capitalizations tend to go in and out of favor based on market and economic conditions. During a period when securities of a particular market capitalization fall behind other types of investments, an underlying fund’s performance could be impacted.
• Real Estate Investment Risk. An underlying fund that has a policy of concentrating its investments in real estate companies and companies related to the real estate industry is subject to risks associated with the direct ownership of real estate securities. These risks include, among others, declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limits to accessing the credit or capital markets; defaults by borrowers or tenants, particularly during an economic downturn; and changes in interest rates.
• Money Market Fund Risk. The funds may invest in underlying money market funds that either seek to maintain a stable $1.00 net asset value (“stable share price money market funds”) or that have a share price that fluctuates (“variable share price money market funds”). Although an underlying stable share price money market fund seeks to maintain a stable $1.00 net asset value, it is possible to lose money by investing in such a money market fund. Because the share price of an underlying variable share price money market fund will fluctuate, when a fund sells the shares it owns they may be worth more or less than what the fund originally paid for them. In addition, neither type of money market fund is designed to offer capital appreciation. Certain underlying money market funds may impose a fee upon the sale of shares or may temporarily suspend the ability to sell shares if such fund’s liquidity falls below required minimums.
• Concentration Risk. To the extent that an underlying fund’s or the index’s portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector, country or asset class, the underlying fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political, or regulatory occurrences affecting that market, industry, group of industries, sector, country or asset class.
• Foreign Investment Risk. An underlying fund’s investments in securities of foreign issuers involve certain risks that may be greater than those associated with investments in securities of U.S. issuers. These include risks of adverse changes in foreign economic, political, regulatory and other conditions; changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges); 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 an underlying fund’s investments, and could impair the underlying fund’s ability to meet its investment objective or invest in accordance with its investment strategy. There is a risk that investments in securities denominated in, and/or receiving revenues in, foreign currencies will decline in value relative to the U.S. dollar.
• Emerging Markets Risk. Emerging market countries may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. Emerging market countries often have less uniformity in accounting, auditing, financial reporting and recordkeeping requirements and greater risk associated with the custody of securities. In addition, the financial stability of issuers (including governments) in emerging market countries may be more precarious than in developed countries. As a result, there may be an increased risk of illiquidity and price volatility associated with an underlying fund’s investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar, and, at times, it may be difficult to value such investments.
Schwab MarketTrack Portfolios | Semiannual Report41
Schwab MarketTrack Portfolios
Financial Notes, unaudited (continued)
3. Risk Factors (continued):
• Derivatives Risk. An underlying fund may use derivatives to enhance returns or hedge against market declines. Examples of derivatives are options, futures, options on futures and swaps. An option is the right, but not the obligation, to buy or sell an instrument at a specific price on or before a specific date. A future is an agreement to buy or sell a financial instrument at a specific price on a specific day. A swap is an agreement whereby two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a predetermined amount. A credit default swap is an agreement in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for a fixed payment or series of fixed payments.
An underlying fund’s use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Certain of these risks, such as leverage risk, liquidity risk and market risk are discussed elsewhere in this section. An underlying fund’s use of derivatives is also subject to lack of availability risk, valuation risk, correlation risk and tax risk. Lack of availability risk is the risk that suitable derivative transactions may not be available in all circumstances for risk management or other purposes. Valuation risk is the risk that a particular derivative may be valued incorrectly. Correlation risk is the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Tax risk is the risk that the use of derivatives may cause an underlying fund to realize higher amounts of short-term capital gains. An underlying fund’s use of derivatives could reduce the underlying fund’s performance, increase its volatility, and could cause the underlying fund to lose more than the initial amount invested. The use of derivatives that are subject to regulation by the Commodity Futures Trading Commission (CFTC) by an underlying fund could cause a fund to become a commodity pool, which would require the fund to comply with certain CFTC rules. An underlying fund’s use of derivatives also could create a risk of counterparty default under certain transactions, risks that a fund would need to liquidate portfolio positions when it may not be advantageous to do so in order to meet margin and payment obligations, and legal risks relating to insufficient documentation, insufficient capacity or authority of a counterparty, or legality or enforceability of a contract.
• Leverage Risk. Certain underlying fund transactions, such as derivatives transactions, short sales, reverse repurchase agreements, and mortgage dollar rolls, may give rise to a form of leverage and may expose an underlying fund to greater risk. Leverage tends to magnify the effect of any decrease or increase in the value of an underlying fund’s portfolio securities, which means even a small amount of leverage can have a disproportionately large impact on the underlying fund.
• Liquidity Risk. An underlying fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the underlying fund may have to sell them at a loss.
• Portfolio Turnover Risk. Certain of the underlying funds may buy and sell portfolio securities actively. If they do, their portfolio turnover rate and transaction costs will rise, which may lower the underlying fund’s performance and may increase the likelihood of capital gains distributions.
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 of 0.13%, payable monthly, based on a percentage of each fund’s average daily net assets.
Shareholder Servicing
The Board has adopted a Shareholder Servicing 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.
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Financial Notes, unaudited (continued)
4. Affiliates and Affiliated Transactions (continued):
Pursuant to the Plan, each fund’s shares are subject to an annual shareholder servicing fee of up to 0.25%. 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). 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.
Expense Limitation
The investment adviser and its affiliates have agreed with the funds, 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 as a percentage of average daily net assets as follows:
SCHWAB MARKETTRACK ALL EQUITY PORTFOLIO | SCHWAB MARKETTRACK GROWTH PORTFOLIO | SCHWAB MARKETTRACK BALANCED PORTFOLIO | SCHWAB MARKETTRACK CONSERVATIVE PORTFOLIO |
| | | |
The agreement to limit the funds’ total expenses charged is limited to each fund’s direct operating expenses and, therefore, does not apply to acquired fund fees and expenses, which are indirect expenses incurred by each fund through its investments in the underlying funds.
Investments in Affiliates
The funds may engage in certain transactions involving related parties. Pursuant to an exemptive order issued by the SEC, the funds may invest in other related funds. As of April 30, 2023, each Schwab MarketTrack Portfolio’s ownership percentages of other related funds’ shares are as follows:
| SCHWAB MARKETTRACK ALL EQUITY PORTFOLIO | SCHWAB MARKETTRACK GROWTH PORTFOLIO | SCHWAB MARKETTRACK BALANCED PORTFOLIO | SCHWAB MARKETTRACK CONSERVATIVE PORTFOLIO |
Schwab Fundamental Emerging Markets Large Company Index Fund | | | | |
Schwab Fundamental International Large Company Index Fund | | | | |
Schwab Fundamental International Small Company Index Fund | | | | |
Schwab Fundamental US Large Company Index Fund | | | | |
Schwab Fundamental US Small Company Index Fund | | | | |
Schwab International Index Fund | | | | |
Schwab S&P 500 Index Fund | | | | |
Schwab Short-Term Bond Index Fund | | | | |
Schwab Small-Cap Index Fund | | | | |
Schwab U.S. Aggregate Bond Index Fund | | | | |
Schwab U.S. Large-Cap Growth Index Fund | | | | |
| | | | |
Schwab Variable Share Price Money Fund, Ultra Shares | | | | |
Interfund Borrowing and Lending
Pursuant to an exemptive order issued by the 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.
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Financial Notes, unaudited (continued)
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 funds did not pay any of these interested persons for their services as trustees, but they did pay non-interested persons (independent trustees), as noted in 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 $1 billion line of credit (the Syndicated Credit Facility), maturing on September 28, 2023. Under the terms of the Syndicated Credit Facility, in addition to 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 28, 2023. Under the terms of the Uncommitted Credit Facility, each fund pays interest on the amount a fund borrows. There were no borrowings by any of the funds 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 in 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. Purchases and Sales of Investment Securities:For the period ended April 30, 2023, purchases and sales of securities (excluding short-term obligations) were as follows:
| | |
Schwab MarketTrack All Equity Portfolio | | |
Schwab MarketTrack Growth Portfolio | | |
Schwab MarketTrack Balanced Portfolio | | |
Schwab MarketTrack Conservative Portfolio | | |
8. Federal Income Taxes:As of April 30, 2023, the tax basis cost of the funds’ investments and gross unrealized appreciation and depreciation were as follows:
| | GROSS UNREALIZED
APPRECIATION | GROSS UNREALIZED
DEPRECIATION | NET UNREALIZED
APPRECIATION
(DEPRECIATION) |
Schwab MarketTrack All Equity Portfolio | | | | |
Schwab MarketTrack Growth Portfolio | | | | |
Schwab MarketTrack Balanced Portfolio | | | | |
Schwab MarketTrack Conservative Portfolio | | | | |
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Financial Notes, unaudited (continued)
8. Federal Income Taxes (continued):
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 April 30, 2023. The tax-basis components of distributions paid during the fiscal year ended October 31, 2022 were as follows:
| PRIOR FISCAL YEAR END DISTRIBUTIONS |
| | |
Schwab MarketTrack All Equity Portfolio | | |
Schwab MarketTrack Growth Portfolio | | |
Schwab MarketTrack Balanced Portfolio | | |
Schwab MarketTrack Conservative Portfolio | | |
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 in 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 October 31, 2022, 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 each fund’s Statement of Operations. During the fiscal year ended October 31, 2022, the funds did not incur any interest or penalties.
9. 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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Schwab MarketTrack Portfolios
Trustees and Officers
The tables below give information about the trustees and officers of Schwab Capital Trust, which includes the funds covered in this report. The “Fund Complex” includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust. The Fund Complex includes 106 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.
|
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 | |
Michael J. Beer 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 2022) | Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | | Director (2016 – 2019), Principal Funds, Inc. |
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. | | |
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) | | | |
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) | | | 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). | | |
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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 | |
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). | | |
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). | | |
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|
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 | |
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. | | Director (2008 – present), The Charles Schwab Corporation |
Richard A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) | President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – Oct. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | | |
|
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; 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 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) | Chief Operating Officer (Dec. 2020 – present) and Treasurer and Chief Financial Officer (Jan. 2016 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc. |
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.; Director, Chief Executive Officer and President (Oct. 2022 – present), Charles Schwab Investment Advisory, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
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Officers of the Trust (continued) |
Name, Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) | Principal Occupations During the Past Five Years |
Dana Smith 1965 Treasurer and Chief Financial Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2023) | Treasurer and Chief Financial Officer (Jan. 2023 – present) and Assistant Treasurer (Dec. 2015 – Dec. 2022), Schwab Funds, Laudus Trust and Schwab ETFs; Vice President (Mar. 2022 – present) and Director (Oct. 2015 – Mar. 2022), Charles Schwab Investment Management, Inc. |
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. Wurster are Interested Trustees. Mr. Bettinger and Mr. Wurster are Interested Trustees because each 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.
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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All Equity Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective July 1, 2020, the index is composed of 31.33% S&P 500 Index, 5.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 10.33% Russell 2000 Index, 4.5% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6.0% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones Equity All REIT Capped Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 31.33% S&P 500 Index, 5.0% Russell 1000 Growth Index, 13.5% Russell RAFI US Large Company Index, 10.33% Russell 2000 Index, 4.5% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6.0% Russell RAFI Developed ex US Large Company Index (Net), 5.0% Russell RAFI Developed ex US Small Company Index (Net), 5.0% Russell RAFI Emerging Markets Large Company Index (Net), 5.0% Dow Jones U.S. Select REIT Index, and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the index was composed of 31.33% S&P 500 Index, 17.33% Russell 2000 Index, 13.50% Russell RAFI US Large Company Index, 7.50% Russell RAFI US Small Company Index, 13.83% MSCI EAFE Index (Net), 6% Russell RAFI Developed ex US Large Company Index (Net), 5% Russell RAFI Developed ex US Small Company Index (Net), 5% Russell RAFI Emerging Markets Large Company Index (Net), and 0.5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 45% S&P 500 Index, 25% Russell 2000 Index and 30% MSCI EAFE Index (Net). On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 70% Dow Jones U.S. Total Stock Market Index and 30% MSCI EAFE Index (Net). Percentages listed may not total to 100% due to rounding.
asset allocation The practice of dividing a portfolio among different asset classes, with each asset class assigned a particular percentage.
asset class A group of securities with similar structure and basic characteristics. Stocks, bonds and cash are the three main examples of asset classes.
Balanced Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective July 1, 2020 the index is composed of 21.0% S&P 500 Index, 3.0% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 6.3% Russell 2000 Index, 2.7% Russell RAFI US Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones Equity All REIT Capped Index, 35.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 21% S&P 500 Index, 3.0% Russell 1000 Growth Index, 9.0% Russell RAFI US Large Company Index, 6.3% Russell 2000 Index, 2.7% Russell RAFI US Small Company Index, 7.0% MSCI EAFE Index (Net), 3.0% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 3.0% Dow Jones U.S. Select REIT Index, 35.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014
through February 27, 2020, the Balanced Composite Index was composed of 21% S&P 500 Index, 10.5% Russell 2000 Index, 9% Russell RAFI US Large Company Index, 4.5% Russell RAFI US Small Company Index, 7% MSCI EAFE Index (Net), 3% Russell RAFI Developed ex US Large Company Index (Net), 2.5% Russell RAFI Developed ex US Small Company Index (Net), 2.5% Russell RAFI Emerging Markets Large Company Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 30% S&P 500 Index, 15% Russell 2000 Index, 15% MSCI EAFE Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 45% Dow Jones U.S. Total Stock Market Index, 15% MSCI EAFE Index (Net), 35% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
Bloomberg US Aggregate Bond Index An index that is a broad-based benchmark measuring the performance of the U.S. investment grade, taxable bond market, including U.S. Treasuries, government-related and corporate bonds, mortgage pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly available for sale in the United States. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have one or more years remaining to maturity. The index excludes certain types of securities, including tax-exempt state and local government series bonds, structured notes embedded with swaps or other special features, private placements, floating rate securities, inflation-linked bonds and Eurobonds. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Government/Credit 1–5 Year Index An index that is a broad-based benchmark measuring the performance of U.S. dollar-denominated U.S. Treasury bonds, government related bonds (i.e., U.S. and non-U.S. agencies, sovereign, quasi-sovereign, supranational and local authority debt) and investment grade U.S. corporate bonds that have a remaining maturity of greater than or equal to one year and less than five years. To be eligible for inclusion in the index, securities must be fixed rate, non-convertible, U.S. dollar-denominated with at least $300 million or more of outstanding face value and have a remaining maturity greater than or equal to one year and less than five years. The index excludes certain types of securities, including, bonds with equity type features (e.g., warrants, convertibles and preferreds), tax-exempt municipal securities, inflation-linked bonds, floating rate issues, strips, private placements, U.S. dollar-denominated 25 and 50 par retail bonds, structured notes and pass-through certificates. The index is market capitalization weighted and the securities in the index are updated on the last business day of each month.
Bloomberg US Treasury Bills 1–3 Month Index An index that includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months but more than 1 month, are rated investment grade and have $300 million or more of outstanding face value. It excludes zero-coupon STRIPS.
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bond A security representing a loan from the investor to the issuer. A bond typically pays interest at a fixed rate (the coupon rate) until a specified date (the maturity date), at which time the issuer returns the money borrowed (principal or face value) to the bondholder. Because of their structure, bonds are sometimes called “fixed-income securities” or “debt securities.”
An individual bond is subject to the credit risk of the issuer. Changes in interest rates can affect a bond’s market value prior to call or maturity. There is no guarantee that a bond’s yield to call or maturity will provide a positive return over the rate of inflation.
bond fund A bond fund is subject to the same credit, interest rate, and inflation risks as bonds. In addition, a bond fund incurs ongoing fees and expenses. A bond fund’s net asset value will fluctuate with the price of the underlying bonds and the portfolio turnover activity; return of principal is not guaranteed.
cap, capitalization See “market cap.”
capital gain, capital loss the difference between the amount paid for an investment and its value at a later time. If the investment has been sold, the capital gain or loss is considered a realized gain or loss. If the investment is still held, the capital gain or loss is considered unrealized appreciation or depreciation.
Conservative Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective July 1, 2020, the index is composed of 14.0% S&P 500 Index, 2.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 4.67% MSCI EAFE Index (Net), 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones Equity All REIT Capped Index, 55.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 14.0% S&P 500 Index, 2.0% Russell 1000 Growth Index, 6.0% Russell RAFI US Large Company Index, 4.67% MSCI EAFE Index (Net), 4.2% Russell 2000 Index, 1.8% Russell RAFI US Small Company Index, 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 2.0% Dow Jones U.S. Select REIT Index, 55.0% Bloomberg US Aggregate Bond Index, 1.0% Bloomberg US Government/Credit 1-5 Year Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014, through February 27, 2020, the index was composed of 14.0% S&P 500 Index, 7.0% Russell 2000 Index, 6.0% Russell RAFI US Large Company Index, 3.0% Russell RAFI US Small Company Index, 4.67% MSCI EAFE Index (Net), 2.0% Russell RAFI Developed ex US Large Company Index (Net), 1.67% Russell RAFI Developed ex US Small Company Index (Net), 1.67% Russell RAFI Emerging Markets Large Company Index (Net), 55.0% Bloomberg US Aggregate Bond Index, and 5.0% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 20% S&P 500 Index, 10% Russell 2000 Index, 10% MSCI EAFE Index (Net), 55% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to March 1, 2014, the index was composed of 30% Dow Jones U.S. Total Stock Market Index, 10% MSCI EAFE Index (Net), 55% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
Dow Jones Equity All REIT Capped Index A float-adjusted market cap weighted index that is designed to measure all equity real estate investment trusts (REITs) in the Dow Jones U.S. Total Stock Market Index, as defined by the S&P Dow Jones Indices REIT/RESI Industry Classification Hierarchy, that meet the minimum float market capitalization (FMC) and liquidity thresholds. The aggregate weight of all companies weighing more than 4.5% cannot exceed 22.5%, and no single company’s weight can exceed 10%. The index is reviewed daily based on each company’s capped market capitalization weight. Daily capping is only performed when the sum of companies with weights great than 5% exceeds 25%.
Dow Jones U.S. Select REIT Index An index that is a float-adjusted market-capitalization weighted index comprised of income-producing commercial and/or residential real estate investment trusts (REITs). The index excludes mortgage REITs, net-lease REITs, real estate finance companies, mortgage brokers and bankers, commercial and residential real estate brokers and estate agents, homebuilders, large landowners and sub-dividers of unimproved land, hybrid REITs, timber REITs and companies that have more than 25% of their assets in direct mortgage investments.
Dow Jones U.S. Total Stock Market Index An index which includes all U.S. equity issues with readily available prices. The index is a float-adjusted market capitalization weighted index that reflects the shares of securities actually available to investors in the marketplace.
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.
Growth Composite Index A custom blended index developed by Schwab Asset Management based on a comparable portfolio asset allocation. Effective July 1, 2020 the index is composed of 28.0% S&P 500 Index, 3.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 8.9% Russell 2000 Index, 3.8% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4.0% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones Equity All REIT Capped Index, 16.0% Bloomberg US Aggregate Bond Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From February 28, 2020 through June 30, 2020, the index was composed of 28.0% S&P 500 Index, 3.3% Russell 1000 Growth Index, 12.0% Russell RAFI US Large Company Index, 8.9% Russell 2000 Index, 3.8% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4.0% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 4.0% Dow Jones U.S. Select REIT Index, 16.0% Bloomberg US Aggregate Bond Index, and 4.0% Bloomberg US Treasury Bills 1-3 Month Index. From December 1, 2014 through February 27, 2020, the Growth Composite Index was composed of 28% S&P 500 Index, 14% Russell 2000 Index, 12% Russell RAFI US Large Company Index, 6% Russell RAFI US Small Company Index, 9.33% MSCI EAFE Index (Net), 4% Russell RAFI Developed ex US Large Company Index (Net), 3.33% Russell RAFI Developed ex US Small Company Index (Net), 3.33% Russell RAFI Emerging Markets Large Company Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. From March 1, 2014 through November 30, 2014, the index was composed of 40% S&P 500 Index, 20% Russell 2000 Index, 20% MSCI EAFE Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. On March 1, 2014, the combination of the S&P 500 Index and Russell 2000 Index replaced the Dow Jones U.S. Total Stock Market Index in the custom index. Prior to
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Schwab MarketTrack Portfolios
March 1, 2014 the index was composed of 60% Dow Jones U.S. Total Stock Market Index, 20% MSCI EAFE Index (Net), 15% Bloomberg US Aggregate Bond Index, and 5% Bloomberg US Treasury Bills 1-3 Month Index. Percentages listed may not total to 100% due to rounding.
market cap, market capitalization The value of a company as determined by the total value of all shares of its stock outstanding.
MSCI EAFE Index (Net) A free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets in Europe, Australasia, and the Far East. The Net version of the index reflects reinvested dividends net of withholding taxes, but reflects no deductions for expenses or other taxes; returns are calculated applying dividend withholding rates applicable to non-resident persons who do not benefit from double taxation treaties.
net asset value (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.
outstanding shares, shares outstanding When speaking of a company or mutual fund, indicates all shares currently held by investors.
price-to-book ratio (P/B) The market price of a company’s stock compared with its “book value.” A mutual fund’s P/B is the weighted average of the P/B of all stocks in the fund’s portfolio.
price-to-earnings ratio (P/E) The market price of a company’s stock compared with earnings over the past year. A mutual fund’s P/E is the weighted average of the P/E of all stocks in the fund’s portfolio.
return on equity (ROE) The average yearly rate of return for each dollar of investors’ money, measured over the past five years.
Russell 1000 Growth Index An index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000 Index An index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, and represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell 2000 Index An index that measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.
Russell RAFI Developed ex US Large Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the largest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Developed ex US Small Company Index (Net) An index that ranks developed ex-U.S. companies in the FTSE Global Total Cap Index by fundamental measures of size and tracks the performance of those companies whose fundamental scores rank below the 87.5% threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the developed ex-U.S. companies in the FTSE Global Total Cap Index measures the performance of the smallest investable securities in developed countries globally, excluding companies assigned to the United States.
Russell RAFI Emerging Markets Large Company Index (Net) An index that ranks emerging market companies in the FTSE Global Total Cap Index by measures of fundamental size and tracks the performance of those companies whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis. The Net series reduces index performance by adjusting for local taxes. Selecting the emerging companies in the FTSE Global Total Cap Index measures the performance of the investable securities in emerging markets globally.
Russell RAFI US Large Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Large Company Index includes only those securities that are members of the U.S. portion whose fundamental scores are in the top 87.5%. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
Russell RAFI US Small Company Index An index that ranks U.S. companies in the FTSE Global Total Cap Index. The Russell RAFI US Small Company Index includes only those securities that are members of the U.S. portion and rank below the 87.5% fundamental score threshold. The index uses a partial quarterly reconstitution methodology in which the index is split into four equal segments at the annual reconstitution and each segment is then rebalanced on a rolling quarterly basis.
S&P 500 Index An index that is designed to measure the performance of 500 leading publicly traded companies from a broad range of industries.
stock A share of ownership, or equity, in the issuing company.
total return The percentage that an investor would have earned or lost on an investment in the fund assuming dividends and distributions were reinvested.
weighted average For mutual funds, an average that gives the same weight to each security as the security represents in the fund’s portfolio.
yield The income paid out by an investment, expressed as a percentage of the investment’s market value.
52Schwab MarketTrack Portfolios | Semiannual Report
Schwab MarketTrack Portfolios
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
© 2023 Charles Schwab & Co., Inc. All rights reserved.
Member SIPC®
Printed on recycled paper.
¹
State, local, and the Federal Alternative Minimum Tax may apply. Capital gains are not exempt from Federal Taxation.
²
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.
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Item 2: Code of Ethics.
Not applicable to this semi-annual report.
Item 3: Audit Committee Financial Expert.
Not applicable to this semi-annual report.
Item 4: Principal Accountant Fees and Services.
Not applicable to this semi-annual report.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Schedule of Investments.
The schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
| (a) | Based on their evaluation of Registrant’s disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant’s Chief Executive Officer, Jonathan de St. Paer and Registrant’s Chief Financial Officer, Dana Smith, have concluded that Registrant’s disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant’s officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above. |
| (b) | During the period covered by this report, there have been no changes in Registrant’s internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant’s internal control over financial reporting. |
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a) (1) Code of ethics – not applicable to this semi-annual report.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Schwab Capital Trust
| | |
| By: | | /s/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 16, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ Jonathan de St. Paer |
| | Jonathan de St. Paer Chief Executive Officer |
| |
| Date: | | June 16, 2023 |
| | |
| By: | | /s/ Dana Smith |
| | Dana Smith Chief Financial Officer |
| |
| Date: | | June 16, 2023 |
