(CHARLES SCHWAB ASSET MANAGMENT LOGO)
Annual Report  |  February 28, 2022
Schwab Fundamental Index* ETFs

Schwab Fundamental U.S. Broad Market Index ETF FNDB
Schwab Fundamental U.S. Large Company Index ETF FNDX
Schwab Fundamental U.S. Small Company Index ETF FNDA
Schwab Fundamental International Large Company Index ETF FNDF
Schwab Fundamental International Small Company Index ETF FNDC
Schwab Fundamental Emerging Markets Large Company Index ETF FNDE
* SCHWAB is a registered trademark of Charles Schwab & Co., Inc.
FUNDAMENTAL INDEX is a registered trademark of Research Affiliates LLC.

         
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In This Report
Performance at a Glance 2
From the President 3
The Investment Environment 4
Fund Management 6
Performance and Fund Facts  
Schwab Fundamental U.S. Broad Market Index ETF 8
Schwab Fundamental U.S. Large Company Index ETF 11
Schwab Fundamental U.S. Small Company Index ETF 14
Schwab Fundamental International Large Company Index ETF 17
Schwab Fundamental International Small Company Index ETF 20
Schwab Fundamental Emerging Markets Large Company Index ETF 23
Fund Expenses 26
Financial Statements and Portfolio Holdings  
Schwab Fundamental U.S. Broad Market Index ETF 27
Schwab Fundamental U.S. Large Company Index ETF 46
Schwab Fundamental U.S. Small Company Index ETF 58
Schwab Fundamental International Large Company Index ETF 71
Schwab Fundamental International Small Company Index ETF 84
Schwab Fundamental Emerging Markets Large Company Index ETF 103
Financial Notes 113
Report of Independent Registered Public Accounting Firm 125
Other Federal Tax Information 126
Liquidity Risk Management Program 127
Trustees and Officers 128
Glossary 131
Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset ManagementTM
Distributor: SEI Investments Distribution Co. (SIDCO)
The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of 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 Charles Schwab & Co., Inc. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.
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Schwab Fundamental Index ETFs
Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabetfs_prospectus.
Total Returns for the 12 Months Ended February 28, 2022
Schwab Fundamental U.S. Broad Market Index ETF
(Ticker Symbol: FNDB)
 
Market Price Return1 18.71%
NAV Return1 18.80%
Russell RAFITM US Index 19.09%
Russell 3000® Index 12.29%
ETF Category: Morningstar Large Value2 17.20%
Performance Details pages 8-10
Schwab Fundamental U.S. Large Company Index ETF
(Ticker Symbol: FNDX)
 
Market Price Return1 19.62%
NAV Return1 19.61%
Russell RAFITM US Large Company Index 19.90%
Russell 1000® Index 13.72%
ETF Category: Morningstar Large Value2 17.20%
Performance Details pages 11-13
Schwab Fundamental U.S. Small Company Index ETF
(Ticker Symbol: FNDA)
 
Market Price Return1 10.01%
NAV Return1 10.06%
Russell RAFITM US Small Company Index 10.32%
Russell 2000® Index -6.01%
ETF Category: Morningstar Small Blend2 3.98%
Performance Details pages 14-16
Total Returns for the 12 Months Ended February 28, 2022
Schwab Fundamental International Large Company Index ETF
(Ticker Symbol: FNDF)
 
Market Price Return1 7.40%
NAV Return1 7.95%
Russell RAFITM Developed ex US Large Company Index (Net)* 8.00%
MSCI EAFE® Index (Net)* 2.83%
ETF Category: Morningstar Foreign Large Value2 5.90%
Performance Details pages 17-19
Schwab Fundamental International Small Company Index ETF
(Ticker Symbol: FNDC)
 
Market Price Return1 1.61%
NAV Return1 1.86%
Russell RAFITM Developed ex US Small Company Index (Net)* 2.17%
S&P Developed ex-U.S. Small Cap Index (Net)* -2.47%
ETF Category: Morningstar Foreign Small/Mid Value2 5.44%
Performance Details pages 20-22
Schwab Fundamental Emerging Markets Large Company Index ETF
(Ticker Symbol: FNDE)
 
Market Price Return1 5.31%
NAV Return1 2.97%
Russell RAFITM Emerging Markets Large Company Index (Net)* 6.51%
MSCI Emerging Markets Index (Net)* -10.69%
ETF Category: Morningstar Diversified Emerging Markets2 -9.68%
Performance Details pages 23-25
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 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 or sale of fund shares.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
Index ownership — The Schwab Fundamental Index ETFs 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 RAFI™ 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.
* The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
1 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
2 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
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Schwab Fundamental Index ETFs
From the President

Jonathan de St. Paer
President of Schwab Asset
Management and the funds
covered in this report.
Dear Shareholder,
Before Russia’s invasion of Ukraine in late February 2022, financial markets were largely preoccupied with the prospects of continued economic growth in the face of multiple challenges related to the ongoing COVID-19 pandemic. Concerns included rising energy and commodity inflation, global supply chain disruptions, and the increasing likelihood that the U.S. Federal Reserve (Fed) would raise short-term interest rates. Despite these obstacles, the S&P 500® Index, a bellwether for the overall U.S. stock market, gained more than 20% between March and December 2021, bolstered by strong corporate earnings, robust consumer spending, and improving labor statistics. However, investor sentiment turned dramatically risk averse as tensions between Russia and Ukraine began escalating in 2022. Stock markets dipped sharply in January and February, with the S&P 500® Index losing roughly half of its previous gains. International stocks, which had posted milder gains than their U.S. counterparts until then, experienced even steeper losses. For the 12-month reporting period ended February 28, 2022, the S&P 500® Index returned 16.4%, and the MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, returned 2.8%.
While the tumultuous events beginning at the end of February have clearly unsettled markets and shaken investor confidence, at Schwab Asset Management we believe that when it comes to their investment plan, investors would do well to avoid getting caught up in dramatic events as they unfold. Although markets may react abruptly in the short term, we believe that wealth creation is most reliably built on a foundation of diversification and a long-term investment plan. With their broadly diversified portfolios and cost-effective, passively managed structures, the Schwab Fundamental Index ETFs can serve as part of the core of a diversified portfolio. In addition, by weighting fund holdings based on objective financial measures of company size, Fundamental Index strategies tend to perform differently over time than traditional market-cap index strategies that use market capitalization to weight the same set of stocks. When the two approaches are combined, we believe a portfolio has the potential for better diversification and more attractive risk-adjusted returns.
Thank you for investing with Schwab Asset Management. For more information about the Schwab Fundamental Index ETFs, please continue reading this report. In addition, you can find further details about these funds by visiting our website at www.schwabassetmanagement.com. We are also happy to hear from you at 1-877-824-5615.
Sincerely,
While the tumultuous events beginning at the end of February have clearly unsettled markets and shaken investor confidence, at Schwab Asset Management we believe that when it comes to their investment plan, investors would do well to avoid getting caught up in dramatic events as they unfold.
Past performance is no guarantee of future results.
Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.
Management views may have changed since the report date.
Schwab Asset Management is the dba name for Charles Schwab Investment Management, Inc., the investment adviser for Schwab Funds and Schwab ETFs.
* The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
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The Investment Environment

For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world. Despite exhibiting some volatility, the U.S. dollar rose over the reporting period against a basket of foreign currencies, generally reducing the returns on overseas investments in U.S. dollar terms. For the reporting period, the S&P 500® Index, a bellwether for the overall U.S. stock market, returned 16.39%. Among U.S. stocks, large-cap stocks outperformed small-cap stocks, with the Russell RAFI™ US Large Company Index returning 19.90% for the reporting period and the Russell 2000® Index and Russell RAFI™ US Small Company Index returning -6.01% and 10.32%, respectively. International equities were weaker. The MSCI EAFE® Index (Net)*, a broad measure of developed international equity performance, and the Russell RAFI™ Developed ex US Large Company Index (Net)* returned 2.83% and 8.00%, respectively, and the MSCI Emerging Markets Index (Net)* and the Russell RAFI™ Emerging Markets Large Company Index (Net)* returned -10.69% and 6.51%, respectively.
Asset Class Performance Comparison % returns during the 12 months ended February 28, 2022    

 
Index figures 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. Past performance is not an indication of future results.
For index definitions, please see the Glossary.
Data source: Index provider websites and Schwab Asset Management.
Nothing in this report represents a recommendation of a security by the investment adviser.
Management views may have changed since the report date.
* The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.
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The Investment Environment (continued)

The U.S. economy continued its recovery from the dramatic impact of the COVID-19 pandemic, although U.S. gross domestic product (GDP) growth fluctuated over the reporting period. GDP rose at an annualized rate of 6.3% and 6.7% in the first and second quarters of 2021, respectively, before falling back to 2.3% for the third quarter of 2021 amid fading government stimuli, ongoing supply chain disruptions, and persisting inflation. GDP rose at an annualized rate of 6.9% in the fourth quarter of 2021 on increasing inventories, exports, and personal consumption expenditures. The unemployment rate, which has fallen steadily after skyrocketing in April 2020, ended the reporting period at its lowest level since February 2020. Annual inflation, which had remained well below the U.S. Federal Reserve’s (Fed) traditional 2% target until it jumped in March 2021, continued to rise during the spring of 2021, leveled off during the summer of 2021, and rose again through the remainder of the reporting period. At the end of the reporting period, inflation was at its highest rate in 40 years, due to imbalances in the labor market, supply chain bottlenecks, and soaring energy costs.
Outside the United States, global economies continued to wrestle with the fallout of the COVID-19 pandemic, including the emergence and spread of the Delta and Omicron variants, along with steepening energy costs and rising inflation. In the eurozone and the United Kingdom, after contracting in the first quarter of 2021, GDP growth was positive for the remainder of the reporting period, although it weakened in the final quarter of 2021. Japan’s economy contracted in both the first and third quarters of 2021 but expanded in the second and fourth quarters. Its rising fourth quarter growth was attributed to increases in household consumption and business investment in the face of a decline in COVID-19 cases and easing restrictions. Among emerging markets, China’s GDP growth rate accelerated sharply in the first quarter of 2021 before easing sharply for the subsequent three quarters, albeit remaining positive, in part because of the political landscape and an emphasis on domestic consumption over globalization, as well as multiple headwinds including a property downturn, supply chain issues, and COVID-19 outbreaks. India, after plunging into one of the worst recessions of any major economy in 2020, posted positive gains in GDP for 2021 as COVID-19 cases fell rapidly.
Monetary policies around the world varied. In the United States, early in the reporting period, the Fed reiterated several times its intention to continue its support of the economy for as long as needed to achieve a full recovery and the Fed maintained the federal funds rate in a range of 0.00% to 0.25% throughout the reporting period. However, as inflation continued to rise and indicators of economic activity and employment continued to strengthen, the Fed began scaling back its bond-buying program in November 2021, citing significant progress on its twin goals of maximum employment and price stability. The Fed subsequently accelerated its wind-down in December 2021, with expectations to end it altogether by March 2022. Fed officials also issued successively strong signals that interest rates could begin to rise sooner in 2022 than previously anticipated. In developed international economies, most central banks were similarly accommodative while acknowledging economic improvements and rising inflation and, in some cases, changes in monetary policy. The European Central bank held its interest rate at 0.00%, unchanged since March 2016, but pledged to steadily reduce its asset purchase program. The Bank of Japan upheld its short-term interest rate target of -0.1%, also unchanged since 2016, and stressed that it would maintain its ultra-loose monetary policy despite growing inflation, even as its global counterparts sought to exit from crisis mode policies. The Bank of England raised its key official bank rate twice during the reporting period, from 0.1% to 0.5%, its first back-to-back rate increase since 2004, citing inflationary pressures. Emerging market monetary policies were mixed. China cut its interest rate twice over the reporting period. Indonesia and India maintained low policy rates implemented in 2020 and early 2021. Central banks in Mexico, Brazil, and Pakistan raised their rates multiple times over the reporting period, citing a stronger-than-expected recovery or to counteract the impacts of inflation. Russia, notably, raised its interest rate to 20% in late February amid the broadening fallout of Western sanctions put in place in retaliation against Russia’s invasion of Ukraine.
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Fund Management

 Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process, portfolio management and implementation, and development of investment strategies for passive equity Schwab Funds and Schwab ETFs. 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, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, and Schwab Fundamental U.S. Small Company Index ETF. 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.
    
 Chuck Craig, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF. Prior to joining Schwab in 2012, Mr. Craig worked at Guggenheim Funds (formerly Claymore Group), where he spent more than five years as a managing director of portfolio management and supervision, and three years as vice president of product research and development. Prior to that, he worked as an equity research analyst at First Trust Portfolios (formerly Niké Securities), and a trader and analyst at PMA Securities, Inc.
    
 Ferian Juwono, CFA, Senior Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, and Schwab Fundamental U.S. Small Company Index ETF. 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.
    
 Jane Qin, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF. Prior to joining Schwab in 2012, Ms. Qin spent more than four years at The Bank of New York Mellon Corporation. During that time, Ms. Qin spent more than two years as an associate equity portfolio manager and nearly two years as a performance analyst. She also worked at Wells Fargo Funds Management as a mutual fund analyst and at CIGNA Reinsurance in the risk management group as a risk analyst.
    
 David Rios, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental International Large Company Index ETF, Schwab Fundamental International Small Company Index ETF, and Schwab Fundamental Emerging Markets Large Company Index ETF. 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).
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Fund Management (continued)

 Sabya Sinha, Portfolio Manager, is responsible for the day-to-day co-management of the Schwab Fundamental U.S. Broad Market Index ETF, Schwab Fundamental U.S. Large Company Index ETF, and Schwab Fundamental U.S. Small Company Index ETF. 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.
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Schwab Fundamental U.S. Broad Market Index ETF as of February 28, 2022

The Schwab Fundamental U.S. Broad Market Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM US Index (the index). The index measures the performance of the constituent companies by fundamental overall company scores, which are created using as the universe the U.S. companies in the FTSE Global Total Cap Index. To pursue its investment objective, the fund invests in a representative sample of the securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of sampling techniques, the fund may not hold all of the securities in the index. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world.
Performance. For the 12-month reporting period ended February 28, 2022, the fund generally tracked the index. The fund’s market price return was 18.71% and its NAV return was 18.80% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 19.09% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. The communications services sector detracted from the total return of the fund. Stocks in the communications services sector represented an average weight of approximately 7% of the fund’s investments and returned approximately -2% for the reporting period. One example from this sector is entertainment company The Walt Disney Co. The fund’s holdings of The Walt Disney Co. represented an average weight of less than 1% of the fund’s investments and returned approximately -21% for the reporting period.
While there were no additional sectors that detracted from the total return of the fund, the real estate sector was the smallest contributor to the total return of the fund, representing an average weight of approximately 3% of the fund’s investments and returning approximately 19% for the reporting period.
The financials sector contributed the most to the total return of the fund. Stocks in the financials sector represented an average weight of approximately 17% of the fund’s investments and returned approximately 22% for the reporting period. One example from this sector is Wells Fargo & Co., a diversified financial services company. The fund’s holdings of Wells Fargo & Co. represented an average weight of approximately 1% of the fund’s investments and returned approximately 50% for the reporting period.
The energy sector also contributed to the total return of the fund, representing an average weight of approximately 8% of the fund’s investments and returning approximately 49% for the reporting period.
    
    
Management views and portfolio holdings may have changed since the report date.
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Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental U.S. Broad Market Index ETF (8/15/13)      
Market Price Return2 18.71% 13.20% 12.33%
NAV Return2 18.80% 13.21% 12.33%
Russell RAFITM US Index 19.09% 13.46% 12.62%
Russell 3000® Index 12.29% 14.68% 13.56%
ETF Category: Morningstar Large Value3 17.20% 10.17% N/A
Fund Expense Ratio4: 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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
Index ownership — The Schwab Fundamental U.S. Broad Market Index ETF 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 RAFI™ US 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
4 As stated in the prospectus.
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Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 1,625
Weighted Average Market Cap (millions) $308,061
Price/Earnings Ratio (P/E) 14.8
Price/Book Ratio (P/B) 2.4
Portfolio Turnover Rate 13% 2
Sector Weightings % of Investments3
 
    
Top Equity Holdings % of Net Assets4
    
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S& P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Schwab Fundamental U.S. Large Company Index ETF as of February 28, 2022

The Schwab Fundamental U.S. Large Company Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM US Large Company Index (the index). The index measures the performance of the large company size segment by fundamental overall company scores, which are created using as the universe the U.S. companies in the FTSE Global Total Cap Index. To pursue its investment objective, the fund uses a replication investment approach and generally gives the same weight to a given stock as the index does. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. U.S. large-cap stocks outperformed U.S. small-cap stocks over the reporting period. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world.
Performance. For the 12-month reporting period ended February 28, 2022, the fund generally tracked the index. The fund’s market price return was 19.62% and its NAV return was 19.61% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 19.90% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. The communications services sector detracted from the total return of the fund. Stocks in the communications services sector represented an average weight of approximately 8% of the fund’s investments and returned approximately -3% for the reporting period. One example from this sector is entertainment company The Walt Disney Co. The fund’s holdings of The Walt Disney Co. represented an average weight of less than 1% of the fund’s investments and returned approximately -21% for the reporting period.
While there were no additional sectors that detracted from the total return of the fund, the real estate sector was the smallest contributor to the total return of the fund, representing an average weight of approximately 2% of the fund’s investments and returning approximately 21% for the reporting period.
The financials sector contributed the most to the total return of the fund. Stocks in the financials sector represented an average weight of approximately 17% of the fund’s investments and returned approximately 23% for the reporting period. One example from this sector is Wells Fargo & Co., a diversified financial services company. The fund’s holdings of Wells Fargo & Co. represented an average weight of approximately 2% of the fund’s investments and returned approximately 50% for the reporting period.
The energy sector also contributed to the total return of the fund, representing an average weight of approximately 9% of the fund’s investments and returning approximately 49% for the reporting period.
    
    
Management views and portfolio holdings may have changed since the report date.
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Table of Contents
Schwab Fundamental U.S. Large Company Index ETF
Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental U.S. Large Company Index ETF (8/15/13)      
Market Price Return2 19.62% 13.43% 12.45%
NAV Return2 19.61% 13.43% 12.45%
Russell RAFITM US Large Company Index 19.90% 13.68% 12.75%
Russell 1000® Index 13.72% 15.07% 13.87%
ETF Category: Morningstar Large Value3 17.20% 10.17% N/A
Fund Expense Ratio4: 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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
Index ownership — The Schwab Fundamental U.S. Large Company Index ETF 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 RAFI™ 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
4 As stated in the prospectus.
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Schwab Fundamental U.S. Large Company Index ETF
Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 718
Weighted Average Market Cap (millions) $332,224
Price/Earnings Ratio (P/E) 14.7
Price/Book Ratio (P/B) 2.5
Portfolio Turnover Rate 11% 2
Sector Weightings % of Investments3
 
    
Top Equity Holdings % of Net Assets4
    
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S& P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Schwab Fundamental U.S. Small Company Index ETF as of February 28, 2022

The Schwab Fundamental U.S. Small Company Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM US Small Company Index (the index). The index measures the performance of the small company size segment by fundamental overall company scores, which are created using as the universe the U.S. companies in the FTSE Global Total Cap Index. To pursue its investment objective, the fund uses a replication investment approach and generally gives the same weight to a given stock as the index does. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. U.S. small-cap stocks underperformed U.S. large-cap stocks over the reporting period. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world.
Performance. For the 12-month reporting period ended February 28, 2022, the fund generally tracked the index. The fund’s market price return was 10.01% and the fund’s NAV return was 10.06% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 10.32% during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. The information technology sector detracted from the total return of the fund. Stocks from the information technology sector represented an average weight of approximately 11% of the fund’s investments. The return for the sector was slightly negative, nearly flat, for the reporting period. One example from this sector is CommScope Holding Co., Inc., which designs, builds, and manages wired and wireless networks. The fund’s holdings of CommScope Holding Co., Inc. represented less than 1% of the fund’s investments and returned approximately -40% for the reporting period.
While there were no additional sectors that detracted from the total return of the fund, the health care sector was the smallest contributor to the total return of the fund, representing an average weight of approximately 6% of the fund’s investments and returning approximately 1% for the reporting period.
The financials sector contributed the most to the total return of the fund. Stocks in the financials sector represented an average weight of approximately 15% of the fund’s investments and returned approximately 16% for the reporting period. One example from this sector is Santander Consumer USA Holdings, Inc., which provides auto loans. The fund’s holdings of Santander Consumer USA Holdings, Inc. represented an average weight of less than 1% of the fund’s investments and returned approximately 61% for the reporting period. The fund’s position in Santander Consumer USA Holdings, Inc. was sold prior to the end of the reporting period.
The energy sector also contributed to the total return of the fund, representing an average weight of approximately 5% of the fund’s investments and returning approximately 51% for the reporting period.
    
    
Management views and portfolio holdings may have changed since the report date.
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Table of Contents
Schwab Fundamental U.S. Small Company Index ETF
Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental U.S. Small Company Index ETF (8/15/13)      
Market Price Return2 10.01% 10.30% 10.70%
NAV Return2 10.06% 10.29% 10.69%
Russell RAFITM US Small Company Index 10.32% 10.47% 10.94%
Russell 2000® Index -6.01% 9.50% 9.60%
ETF Category: Morningstar Small Blend3 3.98% 9.36% N/A
Fund Expense Ratio4: 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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
Small-company stocks may be subject to greater volatility than many other asset classes.
Index ownership — The Schwab Fundamental U.S. Small Company Index ETF 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 RAFI™ 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs within the category as of the report date.
4 As stated in the prospectus.
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Schwab Fundamental U.S. Small Company Index ETF
Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 908
Weighted Average Market Cap (millions) $5,976
Price/Earnings Ratio (P/E) 15.6
Price/Book Ratio (P/B) 2.0
Portfolio Turnover Rate 25% 2
Sector Weightings % of Investments3
 
    
Top Equity Holdings % of Net Assets4
    
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S& P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Table of Contents
Schwab Fundamental International Large Company Index ETF as of February 28, 2022

The Schwab Fundamental International Large Company Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM Developed ex US Large Company Index (the index). The index measures the performance of the large company size segment by fundamental overall company scores, which are created using as the universe the developed ex U.S. companies in the FTSE Total Global Cap Index. To pursue its investment objective, the fund invests in a representative sample of the securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of sampling techniques, the fund may not hold all of the securities in the index. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. Overall, stocks of large companies in developed international markets generated positive returns for the reporting period. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world. Despite exhibiting some volatility, the U.S. dollar rose over the reporting period against a basket of foreign currencies, generally reducing the returns on overseas investments in U.S. dollar terms.
Performance. For the 12-month reporting period ended February 28, 2022, the fund’s market price return was 7.40% and its NAV return was 7.95% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 8.00%1 during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. Stocks from South Korea detracted the most from the total return of the fund. South Korean stocks represented an average weight of approximately 6% of the fund’s investments and returned approximately -12% in U.S. dollar terms for the reporting period. One example from this market is Samsung Electronics Co., Ltd, which manufactures a wide range of consumer and industrial electronic equipment and products. The fund’s holdings of Samsung Electronics Co., Ltd. represented an average weight of approximately 2% of the fund’s investments and returned approximately -17% in U.S. dollar terms for the reporting period.
Stocks from Hong Kong also detracted from the total return of the fund, representing an average weight of approximately 2% of the fund’s investments and returning approximately -7% in U.S. dollar terms for the reporting period.
Stocks from the United Kingdom contributed the most to the total return of the fund. Stocks from the United Kingdom represented an average weight of approximately 17% of the fund’s investments and returned approximately 22% in U.S. dollar terms for the reporting period. One example from this market is energy and petroleum company Shell plc. The fund’s holdings of Shell plc represented an average weight of approximately 2% of the fund’s investments and returned approximately 36% in U.S. dollar terms for the reporting period.
Stocks from Canada also contributed to the total return of the fund, representing an average weight of approximately 8% of the fund’s investments and returning approximately 34% in U.S. dollar terms for the reporting period.
Management views and portfolio holdings may have changed since the report date.
1 The total return cited for the index is calculated net of foreign withholding taxes.
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Table of Contents
Schwab Fundamental International Large Company Index ETF
Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental International Large Company Index ETF (8/15/13)      
Market Price Return2 7.40% 7.42% 5.52%
NAV Return2 7.95% 7.52% 5.57%
Russell RAFITM Developed ex US Large Company Index (Net)3 8.00% 7.54% 5.69%
MSCI EAFE® Index (Net)3 2.83% 7.16% 5.07%
ETF Category: Morningstar Foreign Large Value4 5.90% 5.47% N/A
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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.
Index ownership — The Schwab Fundamental International Large Company Index ETF 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 RAFI™ 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 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 passively- and actively-managed ETFs within the category as of the report date.
5 As stated in the prospectus.
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Schwab Fundamental International Large Company Index ETF
Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 925
Weighted Average Market Cap (millions) $70,855
Price/Earnings Ratio (P/E) 10.3
Price/Book Ratio (P/B) 1.2
Portfolio Turnover Rate 15% 2
Sector Weightings % of Investments1
 
    
Top Equity Holdings % of Net Assets3
Country Weightings % of Investments4
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Table of Contents
Schwab Fundamental International Small Company Index ETF as of February 28, 2022

The Schwab Fundamental International Small Company Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM Developed ex US Small Company Index (the index). The index measures the performance of the small company size segment by fundamental overall company scores, which are created using as the universe the developed ex U.S. companies in the FTSE Global Total Cap Index. To pursue its investment objective, the fund invests in a representative sample of the securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of sampling techniques, the fund may not hold all of the securities in the index. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. Overall, stocks of small companies in developed international markets generated positive returns for the reporting period. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing fiscal, albeit fading, stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world. Despite exhibiting some volatility, the U.S. dollar rose over the reporting period against a basket of foreign currencies, generally reducing the returns on overseas investments in U.S. dollar terms.
Performance. For the 12-month reporting period ended February 28, 2022, the fund’s market price return was 1.61% and its NAV return was 1.86% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 2.17%1 during the same period. Differences between the return of the fund and the return of the index may be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. Stocks from Japan detracted the most from the total return of the fund. Japanese stocks represented an average weight of approximately 31% of the fund’s investments and returned approximately -4% in U.S. dollar terms for the reporting period. One example from this market is pharmaceutical company Hisamitsu Pharmaceutical Co., Inc. The fund’s holdings of Hisamitsu Pharmaceutical Co., Inc. represented an average weight of less than 1% of the fund’s investments and returned approximately -48% in U.S. dollar terms for the reporting period.
Stocks from Hong Kong also detracted from the total return of the fund, representing an average weight of approximately 4% of the fund’s investments and returning approximately -7% in U.S. dollar terms for the reporting period.
Stocks form Canada contributed the most to the total return of the fund. Canadian stocks represented an average weight of approximately 8% of the fund’s investments and returned approximately 29% in U.S. dollar terms for the reporting period. One example from this market is oil and gas company Baytex Energy Corp. The fund’s holdings of Baytex Energy Corp. represented an average weight of less than 1% of the fund’s investments and returned approximately 370% in U.S. dollar terms for the reporting period.
Stocks from Israel also contributed to the total return of the fund, representing an average weight of approximately 2% of the fund’s investments and returning approximately 63% in U.S. dollar terms for the reporting period.
Management views and portfolio holdings may have changed since the report date.
1 The total return cited for the index is calculated net of foreign withholding taxes.
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Table of Contents
Schwab Fundamental International Small Company Index ETF
Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental International Small Company Index ETF (8/15/13)      
Market Price Return2 1.61% 6.07% 6.32%
NAV Return2 1.86% 6.10% 6.35%
Russell RAFITM Developed ex US Small Company Index (Net)3 2.17% 6.30% 6.71%
S&P Developed ex-U.S. Small Cap Index (Net)3 -2.47% 7.47% 6.76%
ETF Category: Morningstar Foreign Small/Mid Value4 5.44% 6.12% N/A
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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.
Small-company stocks may be subject to greater volatility than many other asset classes.
Index ownership — The Schwab Fundamental International Small Company Index ETF 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 RAFI™ 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 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 passively- and actively-managed ETFs within the category as of the report date.
5 As stated in the prospectus.
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Schwab Fundamental International Small Company Index ETF
Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 1,632
Weighted Average Market Cap (millions) $3,859
Price/Earnings Ratio (P/E) 10.7
Price/Book Ratio (P/B) 1.1
Portfolio Turnover Rate 28% 2
Sector Weightings % of Investments1
 
    
Top Equity Holdings % of Net Assets3
Country Weightings % of Investments4
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Schwab Fundamental Emerging Markets Large Company Index ETF as of February 28, 2022

The Schwab Fundamental Emerging Markets Large Company Index ETF’s (the fund) goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFITM Emerging Markets Large Company Index (the index). The index measures the performance of the large company size segment by fundamental overall company scores, which are created using as the universe the emerging markets companies in the FTSE Global Total Cap Index. To pursue its investment objective, the fund invests in a representative sample of the securities included in the index which, when taken together, are expected to perform similarly to the index as a whole. Due to the use of sampling techniques, the fund may not hold all of the securities in the index. For more information concerning the fund’s investment objective, strategies, and risks, please see the fund’s prospectus.
Market Highlights. Overall, stocks in emerging markets generally produced negative returns for the reporting period. For the 12-month reporting period ended February 28, 2022, U.S. equity markets generated positive returns, while global equity markets were mixed. Despite persisting COVID-19 pandemic-driven stresses on the global economy and the emergence and rapid spread of the Delta variant during the summer and the Omicron variant in late 2021, market tailwinds included strong corporate earnings, ongoing, albeit fading, fiscal stimulus measures, and optimism related to increased COVID-19 vaccination rates. As a result, for most of the reporting period, through early January 2022, U.S. equity markets posted steady gains, with several key market indices repeatedly exceeding previous record highs. Developed international equity markets were less robust, but for the most part still positive, while emerging markets were weaker. However, beginning in early 2022, equity markets declined in reaction to growing headwinds that included accelerating inflation, an increasing likelihood of rising interest rates, and, in the final week of the reporting period, Russia’s invasion of Ukraine, which drove oil prices above $100 per barrel for the first time since 2014 and roiled stock markets around the world. Despite exhibiting some volatility, the U.S. dollar rose over the reporting period against a basket of foreign currencies, generally reducing the returns on overseas investments in U.S. dollar terms.
Performance. For the 12-month reporting period ended February 28, 2022, the fund’s market price return was 5.31% and its NAV return was 2.97% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned 6.51%1 during the same period. Fair valuation2 of the fund’s holdings detracted from the fund’s relative performance. Differences between the return of the fund and the return of the index may also be attributable to, among other things, the trading and management costs incurred by the fund and not the index.
Contributors and Detractors. Stocks from Russia detracted the most from the total return of the fund. Russian stocks also detracted from the fund’s performance relative to the index as a result of the Russian stock exchange closure resulting in fair valuation2 of Russian securities by the fund but not the index. Russian stocks represented an average weight of approximately 12% of the fund’s investments and returned approximately -67% in U.S. dollar terms for the reporting period. The average weight of Russian stocks in the index was also approximately 12% but returned approximately -36% in U.S. dollar terms for the reporting period. One example from this market is LUKOIL PJSC, which explores for, produces, refines, transports, and markets oil and gas mainly from Western Siberia. The fund’s holdings of LUKOIL PJSC represented an average weight of approximately 3% of the fund’s investments and returned approximately -64% in U.S. dollar terms for the reporting period. The average weight of LUKOIL PJSC in the index was also approximately 3% but returned approximately -30% in U.S. dollar terms for the reporting period.
Stocks from China also detracted from the total return of the fund, representing an average weight of approximately 25% of the fund’s investments and returning approximately -8% in U.S. dollar terms for the reporting period.
Stocks from Brazil contributed the most to the total return of the fund. Brazilian stocks represented an average weight of approximately 10% of the fund’s investments and returned approximately 39% in U.S. dollar terms for the reporting period. One example from this market is Petroleo Brasileiro S.A., which refines, markets, and supplies oil products. The fund’s preferred stock holdings of Petroleo Brasileiro S.A. represented an average weight of approximately 1% of the fund’s investments and returned approximately 102% in U.S. dollar terms for the reporting period.
Stocks from South Africa also contributed to the total return of the fund, representing an average weight of 7% of the fund’s investments and returning approximately 52% in U.S. dollar terms for the reporting period.
Management views and portfolio holdings may have changed since the report date.
1 The total return cited for the index is calculated net of foreign withholding taxes.
2 Fair valued by management using significant unobservable inputs in accordance with procedures approved by the fund’s Board of Trustees (see financial note 2(a) for additional information).
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Schwab Fundamental Emerging Markets Large Company Index ETF
Performance and Fund Facts as of February 28, 2022

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

 
Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2022)1

 
Average Annual Total Returns1
Fund and Inception Date 1 Year 5 Years Since Inception*
Fund: Schwab Fundamental Emerging Markets Large Company Index ETF (8/15/13)      
Market Price Return2 5.31% 6.07% 4.58%
NAV Return2 2.97% 5.55% 4.34%
Russell RAFITM Emerging Markets Large Company Index (Net)3 6.51% 6.76% 5.30%
MSCI Emerging Markets Index (Net)3 -10.69% 6.99% 4.61%
ETF Category: Morningstar Diversified Emerging Markets4 -9.68% 6.68% N/A
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.
Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.
International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as international investing, as well as increased volatility and lower trading volume.
Index ownership — The Schwab Fundamental Emerging Markets Large Company Index ETF 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 RAFI™ 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.
* Inception (8/15/13) represents the date that the shares began trading in the secondary market.
1 Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.
2 ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
3 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 passively- and actively-managed ETFs within the category as of the report date.
5 As stated in the prospectus.
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Table of Contents
Schwab Fundamental Emerging Markets Large Company Index ETF
Performance and Fund Facts as of February 28, 2022 (continued)

Statistics1
Number of Holdings 328
Weighted Average Market Cap (millions) $85,115
Price/Earnings Ratio (P/E) 7.7
Price/Book Ratio (P/B) 1.2
Portfolio Turnover Rate 20% 2
Sector Weightings % of Investments1
 
    
Top Equity Holdings % of Net Assets3
Country Weightings % of Investments4
    
    
    
Portfolio holdings may have changed since the report date.
An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not inclusive of trading and management costs incurred by the fund.
Source of Sector Classification: S&P and MSCI.
1 Excludes derivatives.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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.
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Schwab Fundamental Index ETFs
Fund Expenses (Unaudited)
Examples for a $1,000 Investment
As a fund shareholder, you may incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares; and, (2) ongoing costs, including management fees.
The expense examples below are intended to help you understand your ongoing cost (in dollars) of investing in a fund and to compare this cost with the ongoing cost of investing in other mutual funds. These examples are based on an investment of $1,000 invested for six months beginning September 1, 2021 and held through February 28, 2022.
Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund 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, including any brokerage commissions you may pay when purchasing or selling shares of a fund. Therefore, the hypothetical return lines of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
    
    
  EXPENSE RATIO
(ANNUALIZED) 1
BEGINNING
ACCOUNT VALUE
AT 9/1/21
ENDING
ACCOUNT VALUE
(NET OF EXPENSES)
AT 2/28/22
EXPENSES PAID
DURING PERIOD
9/1/21-2/28/222
Schwab Fundamental U.S. Broad Market Index ETF        
Actual Return 0.25% $1,000.00 $1,022.90 $1.25
Hypothetical 5% Return 0.25% $1,000.00 $1,023.55 $1.25
Schwab Fundamental U.S. Large Company Index ETF        
Actual Return 0.25% $1,000.00 $1,025.80 $1.26
Hypothetical 5% Return 0.25% $1,000.00 $1,023.55 $1.25
Schwab Fundamental U.S. Small Company Index ETF        
Actual Return 0.25% $1,000.00 $ 989.60 $1.23
Hypothetical 5% Return 0.25% $1,000.00 $1,023.55 $1.25
Schwab Fundamental International Large Company Index ETF        
Actual Return 0.25% $1,000.00 $ 998.30 $1.24
Hypothetical 5% Return 0.25% $1,000.00 $1,023.55 $1.25
Schwab Fundamental International Small Company Index ETF        
Actual Return 0.39% $1,000.00 $ 919.30 $1.86
Hypothetical 5% Return 0.39% $1,000.00 $1,022.86 $1.96
Schwab Fundamental Emerging Markets Large Company Index ETF        
Actual Return 0.39% $1,000.00 $ 932.40 $1.87
Hypothetical 5% Return 0.39% $1,000.00 $1,022.86 $1.96
    
1 Based on the most recent six-month expense ratio.
2 Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 days of the period, and divided by 365 days of the fiscal year.
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Table of Contents
Schwab Fundamental U.S. Broad Market Index ETF
Financial Statements
FINANCIAL HIGHLIGHTS
  3/1/21–
2/28/22
3/1/20–
2/28/21
3/1/19–
2/29/20
3/1/18–
2/28/19
3/1/17–
2/28/18
 
Per-Share Data
Net asset value at beginning of period $48.26 $37.17 $37.60 $36.95 $33.82  
Income (loss) from investment operations:            
Net investment income (loss)1 0.98 0.92 0.94 0.84 0.75  
Net realized and unrealized gains (losses) 8.04 11.13 (0.43) 0.62 3.09  
Total from investment operations 9.02 12.05 0.51 1.46 3.84  
Less distributions:            
Distributions from net investment income (0.94) (0.96) (0.94) (0.81) (0.71)  
Net asset value at end of period $56.34 $48.26 $37.17 $37.60 $36.95  
Total return 18.80% 33.35% 1.25% 3.98% 11.51%  
Ratios/Supplemental Data
Ratios to average net assets:            
Total expenses 0.25% 0.25% 0.25% 0.25% 0.25%  
Net investment income (loss) 1.79% 2.36% 2.38% 2.26% 2.14%  
Portfolio turnover rate2 13% 14% 13% 11% 10%  
Net assets, end of period (x 1,000) $425,341 $284,726 $262,018 $276,382 $260,469  
    
1 Calculated based on the average shares outstanding during the period.
2 Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.
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See financial notes

Table of Contents
Schwab Fundamental U.S. Broad Market Index ETF
Portfolio Holdings  as of February 28, 2022

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/schwabetfs_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 on a daily basis on the fund’s website.

 
SECURITY NUMBER
OF SHARES
VALUE ($)
COMMON STOCKS 99.7% OF NET ASSETS
 
Automobiles & Components 1.6%
Adient plc * 3,093 138,412
American Axle & Manufacturing Holdings, Inc. * 7,666 70,987
Aptiv plc * 2,290 296,418
Autoliv, Inc. 1,623 142,840
BorgWarner, Inc. 5,959 244,379
Cooper-Standard Holding, Inc. * 2,157 27,437
Dana, Inc. 4,520 84,162
Dorman Products, Inc. * 308 28,773
Ford Motor Co. 139,995 2,458,312
Fox Factory Holding Corp. * 116 13,690
General Motors Co. * 40,775 1,905,008
Gentex Corp. 3,888 117,690
Gentherm, Inc. * 415 35,209
Harley-Davidson, Inc. 3,670 151,571
LCI Industries 357 44,454
Lear Corp. 2,116 332,931
Modine Manufacturing Co. * 1,984 20,038
Patrick Industries, Inc. 343 24,470
Standard Motor Products, Inc. 577 25,221
Stoneridge, Inc. * 621 10,253
Tenneco, Inc., Class A * 5,232 100,873
Tesla, Inc. * 134 116,638
The Goodyear Tire & Rubber Co. * 20,146 312,062
Thor Industries, Inc. 1,159 104,889
Veoneer, Inc. * 590 20,915
Visteon Corp. * 1,222 146,848
Winnebago Industries, Inc. 492 31,522
    7,006,002
 
Banks 7.2%
Ameris Bancorp 280 13,860
Associated Banc-Corp. 2,298 56,048
Atlantic Union Bankshares Corp. 584 23,728
Axos Financial, Inc. * 361 19,761
Bank of America Corp. 106,233 4,695,499
Bank of Hawaii Corp. 495 42,659
Bank OZK 1,152 54,167
BankUnited, Inc. 1,388 61,350
Banner Corp. 437 26,924
Berkshire Hills Bancorp, Inc. 579 18,007
BOK Financial Corp. 337 34,610
Brookline Bancorp, Inc. 865 14,826
Cadence Bank 1,887 59,667
Capitol Federal Financial, Inc. 1,969 21,502
Cathay General Bancorp 889 41,810
Central Pacific Financial Corp. 595 17,368
Citigroup, Inc. 64,979 3,848,706
Citizens Financial Group, Inc. 7,359 385,759
City Holding Co. 135 10,755
Columbia Banking System, Inc. 807 29,560
Comerica, Inc. 2,966 283,223
SECURITY NUMBER
OF SHARES
VALUE ($)
Commerce Bancshares, Inc. 747 53,620
Community Bank System, Inc. 338 24,654
Credicorp Ltd. 1,616 244,420
Cullen/Frost Bankers, Inc. 479 67,410
CVB Financial Corp. 1,122 26,457
Eagle Bancorp, Inc. 279 16,718
East West Bancorp, Inc. 1,095 95,878
Essent Group Ltd. 767 33,886
F.N.B. Corp. 4,639 62,302
Federal Agricultural Mortgage Corp., Class C 159 19,668
Fifth Third Bancorp 11,305 540,831
First BanCorp 1,902 26,856
First Busey Corp. 516 14,164
First Citizens BancShares, Inc., Class A 227 178,978
First Commonwealth Financial Corp. 1,115 18,007
First Financial Bancorp 998 24,531
First Financial Bankshares, Inc. 372 17,826
First Hawaiian, Inc. 1,849 53,750
First Horizon Corp. 3,695 86,759
First Interstate BancSystem, Inc., Class A 1,175 47,705
First Merchants Corp. 418 18,283
First Republic Bank 532 92,174
Flagstar Bancorp, Inc. 593 27,029
Fulton Financial Corp. 2,446 44,077
Glacier Bancorp, Inc. 559 30,969
Hancock Whitney Corp. 968 53,898
Hanmi Financial Corp. 551 14,392
Heartland Financial USA, Inc. 286 14,191
Hilltop Holdings, Inc. 738 22,819
Home BancShares, Inc. 1,573 36,824
Hope Bancorp, Inc. 1,918 32,529
Huntington Bancshares, Inc. 16,073 249,453
Independent Bank Corp. 218 18,750
Independent Bank Group, Inc. 179 13,810
International Bancshares Corp. 638 27,440
Investors Bancorp, Inc. 4,042 67,663
JPMorgan Chase & Co. 42,042 5,961,556
KeyCorp 12,185 305,478
M&T Bank Corp. 2,630 479,265
MGIC Investment Corp. 5,110 77,570
National Bank Holdings Corp., Class A 315 13,980
NBT Bancorp, Inc. 543 20,835
New York Community Bancorp, Inc. 7,315 84,415
Northwest Bancshares, Inc. 1,314 18,501
OFG Bancorp 738 20,797
Old National Bancorp 3,476 63,541
Pacific Premier Bancorp, Inc. 312 12,078
PacWest Bancorp 1,989 98,296
Park National Corp. 143 19,171
PennyMac Financial Services, Inc. 267 15,419
People's United Financial, Inc. 4,546 95,830
Pinnacle Financial Partners, Inc. 362 36,591
Popular, Inc. 1,165 107,005
Prosperity Bancshares, Inc. 671 49,963
Provident Financial Services, Inc. 865 20,526
Radian Group, Inc. 3,156 75,428
 
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See financial notes

Table of Contents
Schwab Fundamental U.S. Broad Market Index ETF
Portfolio Holdings  as of February 28, 2022 (continued)

SECURITY NUMBER
OF SHARES
VALUE ($)
Regions Financial Corp. 12,140 293,667
Renasant Corp. 506 18,474
S&T Bancorp, Inc. 479 14,892
Sandy Spring Bancorp, Inc. 346 16,293
ServisFirst Bancshares, Inc. 197 17,214
Signature Bank 257 88,637
Simmons First National Corp., Class A 972 27,721
Southside Bancshares, Inc. 275 11,465
SouthState Corp. 379 34,110
SVB Financial Group * 183 110,898
Synovus Financial Corp. 1,595 83,977
Texas Capital Bancshares, Inc. * 489 32,567
The Bank of NT Butterfield & Son Ltd. 567 21,773
The PNC Financial Services Group, Inc. 5,856 1,166,808
Tompkins Financial Corp. 139 10,995
Towne Bank 545 16,993
Truist Financial Corp. 10,296 640,617
Trustmark Corp. 928 29,223
U.S. Bancorp 22,611 1,278,426
UMB Financial Corp. 313 31,882
Umpqua Holdings Corp. 3,461 73,892
United Bankshares, Inc. 1,068 39,110
United Community Banks, Inc. 593 22,925
Valley National Bancorp 3,378 47,191
Walker & Dunlop, Inc. 312 43,165
Washington Federal, Inc. 1,383 49,207
Webster Financial Corp. 1,673 100,731
Wells Fargo & Co. 113,356 6,049,810
WesBanco, Inc. 639 23,349
Westamerica BanCorp 207 12,279
Western Alliance Bancorp 366 34,309
Wintrust Financial Corp. 550 54,648
WSFS Financial Corp. 307 15,605
Zions Bancorp NA 2,731 193,601
    30,461,209
 
Capital Goods 7.3%
3M Co. 7,996 1,188,605
A.O. Smith Corp. 1,459 100,058
AAON, Inc. 225 13,176
AAR Corp. * 939 42,199
Acuity Brands, Inc. 706 128,753
Advanced Drainage Systems, Inc. 145 16,924
AECOM 2,916 211,877
AerCap Holdings N.V. * 4,204 228,824
Aerojet Rocketdyne Holdings, Inc. 582 22,553
AGCO Corp. 1,076 129,292
Air Lease Corp. 1,584 66,148
Alamo Group, Inc. 131 18,223
Albany International Corp., Class A 317 27,839
Allegion plc 608 69,628
Allison Transmission Holdings, Inc. 3,800 151,772
Altra Industrial Motion Corp. 485 20,598
American Woodmark Corp. * 365 19,557
AMETEK, Inc. 1,430 185,600
API Group Corp. * 1,272 27,437
Apogee Enterprises, Inc. 788 35,515
Applied Industrial Technologies, Inc. 619 62,581
Arcosa, Inc. 979 51,564
Argan, Inc. 397 15,439
Armstrong World Industries, Inc. 450 39,780
Astec Industries, Inc. 435 21,663
Astronics Corp. * 1,066 15,681
Atkore, Inc. * 255 25,936
AZZ, Inc. 525 25,846
Barnes Group, Inc. 958 44,499
Beacon Roofing Supply, Inc. * 988 58,974
SECURITY NUMBER
OF SHARES
VALUE ($)
Boise Cascade Co. 1,166 93,210
Builders FirstSource, Inc. * 1,393 103,667
BWX Technologies, Inc. 955 51,016
Carlisle Cos., Inc. 772 183,273
Carrier Global Corp. 12,674 568,809
Caterpillar, Inc. 6,182 1,159,620
Chart Industries, Inc. * 121 17,472
CIRCOR International, Inc. * 421 11,342
Colfax Corp. * 1,265 50,866
Columbus McKinnon Corp. 316 14,422
Comfort Systems USA, Inc. 487 41,872
Crane Co. 642 64,893
CSW Industrials, Inc. 89 10,709
Cummins, Inc. 2,741 559,493
Curtiss-Wright Corp. 652 96,183
Deere & Co. 2,315 833,446
Donaldson Co., Inc. 1,425 77,335
Douglas Dynamics, Inc. 381 13,998
Dover Corp. 1,395 218,820
Dycom Industries, Inc. * 775 67,472
Eaton Corp. plc 5,442 839,646
EMCOR Group, Inc. 1,196 138,186
Emerson Electric Co. 8,264 767,891
Encore Wire Corp. 398 46,335
Enerpac Tool Group Corp. 649 11,195
EnerSys 696 50,620
EnPro Industries, Inc. 307 33,905
ESCO Technologies, Inc. 226 15,723
Evoqua Water Technologies Corp. * 392 16,723
Fastenal Co. 4,347 223,697
Federal Signal Corp. 685 24,735
Flowserve Corp. 2,513 76,320
Fluor Corp. * 9,154 198,276
Fortive Corp. 1,974 127,816
Fortune Brands Home & Security, Inc. 1,683 146,253
Franklin Electric Co., Inc. 429 36,276
GATX Corp. 854 91,062
Generac Holdings, Inc. * 131 41,327
General Dynamics Corp. 4,607 1,080,111
General Electric Co. 22,996 2,196,348
Gibraltar Industries, Inc. * 312 15,076
GMS, Inc. * 771 41,827
Graco, Inc. 1,025 73,892
GrafTech International Ltd. 947 9,546
Granite Construction, Inc. 1,467 44,406
Great Lakes Dredge & Dock Corp. * 815 11,500
Griffon Corp. 952 21,944
H&E Equipment Services, Inc. 916 38,252
HEICO Corp. 151 22,274
HEICO Corp., Class A 253 31,099
Helios Technologies, Inc. 166 13,016
Herc Holdings, Inc. 337 53,623
Hexcel Corp. 1,677 97,098
Hillenbrand, Inc. 948 45,229
Honeywell International, Inc. 6,988 1,325,973
Howmet Aerospace, Inc. 6,315 226,835
Hubbell, Inc. 646 115,150
Huntington Ingalls Industries, Inc. 919 187,844
Hyster-Yale Materials Handling, Inc. 361 13,819
IDEX Corp. 497 95,374
Illinois Tool Works, Inc. 3,172 686,230
Ingersoll Rand, Inc. 821 41,477
ITT, Inc. 912 80,137
JELD-WEN Holding, Inc. * 1,360 31,389
John Bean Technologies Corp. 194 21,994
Johnson Controls International plc 8,688 564,372
Kadant, Inc. 81 15,985
Kaman Corp. 696 30,213
 
29
Schwab Fundamental Index ETFs  |  Annual Report
See financial notes

Table of Contents
Schwab Fundamental U.S. Broad Market Index ETF
Portfolio Holdings  as of February 28, 2022 (continued)

SECURITY NUMBER
OF SHARES
VALUE ($)
Kennametal, Inc. 1,348 42,745
Kratos Defense & Security Solutions, Inc. * 476 9,958
L3Harris Technologies, Inc. 1,511 381,240
Lennox International, Inc. 260 69,402
Lincoln Electric Holdings, Inc. 755 96,232
Lindsay Corp. 102 13,383
Lockheed Martin Corp. 2,996 1,299,665
Masco Corp. 2,959 165,822
Masonite International Corp. * 413 38,958
MasTec, Inc. * 851 67,025
Matrix Service Co. * 2,236 15,518
Maxar Technologies, Inc. 855 27,736
McGrath RentCorp 324 26,335
MDU Resources Group, Inc. 3,727 99,772
Mercury Systems, Inc. * 255 15,356
Meritor, Inc. * 1,601 57,012
Moog, Inc., Class A 780 64,826
MRC Global, Inc. * 3,796 38,340
MSC Industrial Direct Co., Inc., Class A 1,004 77,790
Mueller Industries, Inc. 1,246 71,084
Mueller Water Products, Inc., Class A 1,931 24,504
MYR Group, Inc. * 287 25,758
National Presto Industries, Inc. 134 10,653
Nordson Corp. 392 88,784
Northrop Grumman Corp. 2,081 920,093
NOW, Inc. * 6,013 56,161
nVent Electric plc 2,440 82,789
Oshkosh Corp. 1,357 150,681
Otis Worldwide Corp. 2,816 220,577
Owens Corning 2,108 196,445
PACCAR, Inc. 6,483 595,204
Parker-Hannifin Corp. 1,372 406,647
Parsons Corp. * 332 11,507
Pentair plc 1,715 99,316
PGT Innovations, Inc. * 608 13,078
Primoris Services Corp. 1,483 39,107
Proto Labs, Inc. * 205 11,527
Quanex Building Products Corp. 817 18,677
Quanta Services, Inc. 2,007 218,643
Raytheon Technologies Corp. 12,760 1,310,452
RBC Bearings, Inc. * 136 26,364
Regal Rexnord Corp. 843 135,175
Resideo Technologies, Inc. * 2,188 56,319
Rockwell Automation, Inc. 976 260,182
Roper Technologies, Inc. 454 203,492
Rush Enterprises, Inc., Class A 1,456 75,625
Sensata Technologies Holding plc * 1,768 102,385
Simpson Manufacturing Co., Inc. 393 46,574
SiteOne Landscape Supply, Inc. * 132 22,761
Snap-on, Inc. 829 174,239
Spirit AeroSystems Holdings, Inc., Class A 4,300 215,000
SPX Corp. * 247 12,523
SPX FLOW, Inc. 361 31,006
Standex International Corp. 189 20,021
Stanley Black & Decker, Inc. 1,656 269,431
Tennant Co. 236 18,592
Terex Corp. 1,263 52,137
Textainer Group Holdings Ltd. 431 15,305
Textron, Inc. 4,261 311,607
The Boeing Co. * 8,916 1,830,811
The Greenbrier Cos., Inc. 1,529 67,933
The Manitowoc Co., Inc. * 859 14,199
The Middleby Corp. * 427 75,844
The Timken Co. 963 63,134
The Toro Co. 778 72,984
Trane Technologies plc 1,759 270,763
TransDigm Group, Inc. * 384 255,971
Trex Co., Inc. * 263 24,154
SECURITY NUMBER
OF SHARES
VALUE ($)
Trinity Industries, Inc. 2,081 60,058
Triton International Ltd. 997 65,483
Tutor Perini Corp. * 3,128 30,654
UFP Industries, Inc. 1,224 104,958
United Rentals, Inc. * 1,080 347,350
Univar Solutions, Inc. * 3,883 119,247
Valmont Industries, Inc. 277 59,957
Vectrus, Inc. * 335 15,356
W.W. Grainger, Inc. 647 308,658
Wabash National Corp. 2,745 46,775
Watsco, Inc. 379 103,490
Watts Water Technologies, Inc., Class A 233 33,540
Welbilt, Inc. * 1,059 25,035
WESCO International, Inc. * 1,333 162,266
Westinghouse Air Brake Technologies Corp. 1,455 135,053
Woodward, Inc. 511 63,686
Xylem, Inc. 1,088 96,778
Zurn Water Solutions Corp. 970 31,544
    31,135,699
 
Commercial & Professional Services 1.1%
ABM Industries, Inc. 1,885 84,505
ACCO Brands Corp. 3,789 32,585
ADT, Inc. 3,850 28,144
ASGN, Inc. * 567 62,818
Booz Allen Hamilton Holding Corp. 1,297 104,655
Brady Corp., Class A 718 33,085
BrightView Holdings, Inc. * 1,136 15,347
CACI International, Inc., Class A * 337 94,289
CBIZ, Inc. * 557 21,673
Cimpress plc * 234 14,740
Cintas Corp. 554 207,927
Clean Harbors, Inc. * 647 61,743
Copart, Inc. * 648 79,626
CoreCivic, Inc. * 9,102 82,919
CoStar Group, Inc. * 545 33,250
Deluxe Corp. 1,600 49,776
Equifax, Inc. 524 114,410
Exponent, Inc. 170 16,109
FTI Consulting, Inc. * 429 62,634
Harsco Corp. * 1,751 20,854
Healthcare Services Group, Inc. 1,897 30,011
Heidrick & Struggles International, Inc. 283 12,098
HNI Corp. 1,305 53,100
Huron Consulting Group, Inc. * 354 17,463
IAA, Inc. * 568 20,868
ICF International, Inc. 288 25,523
Insperity, Inc. 293 26,355
Interface, Inc. 1,776 23,177
Jacobs Engineering Group, Inc. 1,724 212,052
KAR Auction Services, Inc. * 3,331 61,490
KBR, Inc. 2,095 103,996
Kelly Services, Inc., Class A 3,604 76,477
Kforce, Inc. 457 34,357
Korn Ferry 670 44,394
Leidos Holdings, Inc. 2,271 231,279
ManpowerGroup, Inc. 2,831 300,879
ManTech International Corp., Class A 457 38,100
Matthews International Corp., Class A 872 28,933
MillerKnoll, Inc. 1,721 66,912
MSA Safety, Inc. 207 28,794
Nielsen Holdings plc 8,992 156,641
Pitney Bowes, Inc. 8,524 42,450
Republic Services, Inc. 2,206 265,338
Resources Connection, Inc. 1,319 21,895
Robert Half International, Inc. 1,857 223,379
Rollins, Inc. 885 28,878
 
30
Schwab Fundamental Index ETFs  |  Annual Report
See financial notes

Table of Contents
Schwab Fundamental U.S. Broad Market Index ETF
Portfolio Holdings  as of February 28, 2022 (continued)

SECURITY NUMBER
OF SHARES
VALUE ($)
Science Applications International Corp. 1,064 93,302
SP Plus Corp. * 709 21,164
Steelcase, Inc., Class A 3,718 45,248
Stericycle, Inc. * 924 53,925
Tetra Tech, Inc. 406 64,461
The Brink's Co. 467 32,718
The GEO Group, Inc. * 9,641 57,460
TransUnion 682 61,898
TriNet Group, Inc. * 284 24,796
TrueBlue, Inc. * 2,016 54,835
UniFirst Corp. 224 40,600
US Ecology, Inc. * 495 23,483
Verisk Analytics, Inc. 553 98,069
Viad Corp. * 532 18,588
Waste Management, Inc. 4,179 603,448
    4,689,923
 
Consumer Durables & Apparel 1.5%
Acushnet Holdings Corp. 389 17,038
Beazer Homes USA, Inc. * 912 14,929
Brunswick Corp. 1,144 109,275
Callaway Golf Co. * 856 21,177
Capri Holdings Ltd. * 3,150 213,381
Carter's, Inc. 1,026 99,194
Cavco Industries, Inc. * 104 28,354
Century Communities, Inc. 329 20,964
Columbia Sportswear Co. 406 37,644
Crocs, Inc. * 184 15,406
D.R. Horton, Inc. 4,221 360,473
Deckers Outdoor Corp. * 195 56,285
Ethan Allen Interiors, Inc. 1,017 26,503
Fossil Group, Inc. * 2,683 36,274
Garmin Ltd. 1,020 112,649
G-III Apparel Group Ltd. * 1,742 48,323
Hanesbrands, Inc. 8,038 124,187
Hasbro, Inc. 1,424 138,199
Helen of Troy Ltd. * 224 46,070
Installed Building Products, Inc. 112 10,830
iRobot Corp. * 323 20,078
KB Home 1,583 61,120
Kontoor Brands, Inc. 984 48,747
La-Z-Boy, Inc. 1,144 33,382
Leggett & Platt, Inc. 2,576 95,518
Lennar Corp., Class A 3,709 333,365
LGI Homes, Inc. * 186 23,460
Lululemon Athletica, Inc. * 332 106,220
M.D.C Holdings, Inc. 964 42,744
M/I Homes, Inc. * 617 30,412
Mattel, Inc. * 3,793 94,749
Meritage Homes Corp. * 710 69,992
Mohawk Industries, Inc. * 1,180 166,120
Movado Group, Inc. 460 18,133
Newell Brands, Inc. 6,078 144,353
NIKE, Inc., Class B 6,500 887,575
NVR, Inc. * 43 213,213
Oxford Industries, Inc. 322 28,462
Polaris, Inc. 971 117,986
PulteGroup, Inc. 5,619 279,040
PVH Corp. 2,133 208,799
Ralph Lauren Corp. 1,123 148,281
Skechers U.S.A., Inc., Class A * 1,982 91,132
Skyline Champion Corp. * 224 15,062
Smith & Wesson Brands, Inc. 842 14,844
Steven Madden Ltd. 1,420 60,577
Sturm Ruger & Co., Inc. 329 23,823
Tapestry, Inc. 4,485 183,437
Taylor Morrison Home Corp. * 2,590