Schwab International Dividend Equity ETF | SCHY |
Schwab International Equity ETF | SCHF |
Schwab International Small-Cap Equity ETF | SCHC |
Schwab Emerging Markets Equity ETF | SCHE |
Total Returns for the 12 Months Ended August 31, 2022 | |
Schwab International Dividend Equity ETF (Ticker Symbol: SCHY) | |
Market Price Return1 | -15.05% |
NAV Return1 | -14.47% |
Dow Jones International Dividend 100 Index (Net)2 | -14.41% |
ETF Category: Morningstar Foreign Large Value3 | -15.34% |
Performance Details | pages 7-9 |
Schwab International Equity ETF (Ticker Symbol: SCHF) | |
Market Price Return1 | -19.76% |
NAV Return1 | -19.29% 4 |
FTSE Developed ex US Index (Net)2 | -19.40% |
ETF Category: Morningstar Foreign Large Blend3 | -20.77% |
Performance Details | pages 10-12 |
Schwab International Small-Cap Equity ETF (Ticker Symbol: SCHC) | |
Market Price Return1 | -25.52% |
NAV Return1 | -24.85% |
FTSE Developed Small Cap ex US Liquid Index (Net)2 | -24.95% |
ETF Category: Morningstar Foreign Small/Mid Blend3 | -25.27% |
Performance Details | pages 13-15 |
Schwab Emerging Markets Equity ETF (Ticker Symbol: SCHE) | |
Market Price Return1 | -18.86% |
NAV Return1 | -18.32% |
FTSE Emerging Index (Net)2 | -18.42% |
ETF Category: Morningstar Diversified Emerging Markets3 | -23.46% |
Performance Details | pages 16-18 |
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 | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
3 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs and mutual funds within the category as of the report date. |
4 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
* | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
1 | Schwab Center for Financial Research. (2022, September 13). Stock Market Volatility: Inflation Strikes Again. |
* | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Christopher Bliss, CFA, Managing Director and Head of Passive Equity Strategies for Schwab Asset Management, is responsible for overseeing the investment process and portfolio management of investment strategies for passive equity Schwab Funds and Schwab ETFs. 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. |
Chuck Craig, CFA, Senior Portfolio Manager, is responsible for the oversight and day-to-day co-management of the funds. 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. |
David Rios, Portfolio Manager, is responsible for the day-to-day co-management of the funds. 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). |
1 | The total return cited for the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Fund and Inception Date | 1 Year | Since Inception* |
Fund: Schwab International Dividend Equity ETF (4/29/21) | ||
Market Price Return2 | -15.05% | -8.45% |
NAV Return2 | -14.47% | -8.03% |
Dow Jones International Dividend 100 Index (Net)3 | -14.41% | -8.01% |
ETF Category: Morningstar Foreign Large Value4 | -15.34% | N/A |
Fund Expense Ratio5: 0.14% |
* | Inception (4/29/21) 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 and mutual funds within the category as of the report date. |
5 | As stated in the prospectus. |
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. |
1 | Total return for the report period above differs from the return in the Financial Highlights. The total return presented above is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
2 | The total return cited for the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Fund: Schwab International Equity ETF (11/3/09) | |||
Market Price Return2 | -19.76% | 1.97% | 4.98% |
NAV Return2 | -19.29% 3 | 2.18% | 5.11% |
FTSE Developed ex US Index (Net)4 | -19.40% | 2.07% | 5.03% |
ETF Category: Morningstar Foreign Large Blend5 | -20.77% | 1.25% | 4.66% |
Fund Expense Ratio6: 0.06% |
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 | Total return for the report period presented in the table differs from the return in the Financial Highlights. The total return presented in the above table is calculated based on the net asset value (NAV) at which shareholder transactions were processed. The total return presented in the Financial Highlights section of the report is calculated in the same manner, but also takes into account certain adjustments that are necessary under generally accepted accounting principles required in the annual and semiannual reports. |
4 | The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
5 | Source for category information: Morningstar, Inc. The Morningstar Category return represents all passively- and actively-managed ETFs and mutual funds within the category as of the report date. |
6 | As stated in the prospectus. |
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. |
1 | The total return cited for the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Fund: Schwab International Small-Cap Equity ETF (1/14/10) | |||
Market Price Return2 | -25.52% | 0.49% | 5.01% |
NAV Return2 | -24.85% | 0.75% | 5.11% |
FTSE Developed Small Cap ex US Liquid Index (Net)3 | -24.95% | 0.59% | 5.06% |
ETF Category: Morningstar Foreign Small/Mid Blend4 | -25.27% | 0.95% | 5.96% |
Fund Expense Ratio5: 0.11% |
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 and mutual funds within the category as of the report date. |
5 | As stated in the prospectus. |
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. |
1 | The total return cited for the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes. |
Fund and Inception Date | 1 Year | 5 Years | 10 Years |
Fund: Schwab Emerging Markets Equity ETF (1/14/10) | |||
Market Price Return2 | -18.86% | 1.16% | 3.11% |
NAV Return2 | -18.32% | 1.38% | 3.29% |
FTSE Emerging Index (Net)3 | -18.42% | 1.53% | 3.45% |
ETF Category: Morningstar Diversified Emerging Markets4 | -23.46% | 0.31% | 2.73% |
Fund Expense Ratio5: 0.11% |
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 and mutual funds within the category as of the report date. |
5 | As stated in the prospectus. |
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. |
EXPENSE
RATIO (ANNUALIZED) 1 |
BEGINNING
ACCOUNT VALUE AT 3/1/22 |
ENDING
ACCOUNT VALUE (NET OF EXPENSES) AT 8/31/22 |
EXPENSES
PAID DURING PERIOD 3/1/22-8/31/22 2 | |
Schwab International Dividend Equity ETF | ||||
Actual Return | 0.14% | $1,000.00 | $ 859.10 | $0.66 |
Hypothetical 5% Return | 0.14% | $1,000.00 | $1,024.50 | $0.71 |
Schwab International Equity ETF | ||||
Actual Return | 0.06% | $1,000.00 | $ 862.80 | $0.28 |
Hypothetical 5% Return | 0.06% | $1,000.00 | $1,024.90 | $0.31 |
Schwab International Small-Cap Equity ETF | ||||
Actual Return | 0.11% | $1,000.00 | $ 839.80 | $0.51 |
Hypothetical 5% Return | 0.11% | $1,000.00 | $1,024.65 | $0.56 |
Schwab Emerging Markets Equity ETF | ||||
Actual Return | 0.11% | $1,000.00 | $ 890.40 | $0.52 |
Hypothetical 5% Return | 0.11% | $1,000.00 | $1,024.65 | $0.56 |
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 184 days of the period, and divided by 365 days of the fiscal year. |
9/1/21– 8/31/22 |
4/29/21 1– 8/31/21 |
|||||
Per-Share Data | ||||||
Net asset value at beginning of period | $26.07 | $25.00 | ||||
Income (loss) from investment operations: | ||||||
Net investment income (loss)2 | 1.37 | 0.41 | ||||
Net realized and unrealized gains (losses) | (5.09) | 0.71 | ||||
Total from investment operations | (3.72) | 1.12 | ||||
Less distributions: | ||||||
Distributions from net investment income | (0.63) | (0.05) | ||||
Net asset value at end of period | $21.72 | $26.07 | ||||
Total return | (14.47%) | 4.48% 3 | ||||
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.14% 4 | 0.14% 5 | ||||
Net investment income (loss) | 5.72% | 4.76% 5 | ||||
Portfolio turnover rate6 | 45% | 3% 3 | ||||
Net assets, end of period (x 1,000,000) | $439 | $102 |
1 | Commencement of operations. |
2 | Calculated based on the average shares outstanding during the period. |
3 | Not annualized. |
4 | Ratio includes less than 0.005% of non-routine proxy expenses. |
5 | Annualized. |
6 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
DESCRIPTION | QUOTED
PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
OTHER
SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL |
Assets | ||||
Common Stocks1 | $435,312,588 | $— | $— | $435,312,588 |
Russia 2 | — | — | 329 | 329 |
Preferred Stocks1 | ||||
Russia 2 | — | — | 3,003 | 3,003 |
Short-Term Investments1 | 237,487 | — | — | 237,487 |
Liabilities | ||||
Futures Contracts3 | (144,669) | — | — | (144,669) |
Total | $435,405,406 | $— | $3,332 | $435,408,738 |
1 | As categorized in the Portfolio Holdings. |
2 | Trading in Russian securities listed on the Moscow Exchange, Russian ADRs, and Russian GDRs are subject to trade restrictions and therefore the ability of the fund to buy or sell these securities is uncertain. |
3 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $497,423,946) | $435,553,407 | |
Foreign currency, at value (cost $435,822) | 433,527 | |
Deposit with broker for futures contracts | 182,935 | |
Receivables: | ||
Fund shares sold | 4,344,776 | |
Dividends | 2,503,625 | |
Foreign tax reclaims | 198,799 | |
Investments sold | 26,628 | |
Income from securities on loan | + | 1,098 |
Total assets | 443,244,795 | |
Liabilities | ||
Payables: | ||
Investments bought | 4,334,313 | |
Management fees | 51,994 | |
Variation margin on futures contracts | 19,450 | |
Foreign capital gains tax | + | 17,653 |
Total liabilities | 4,423,410 | |
Net assets | $438,821,385 | |
Net Assets by Source | ||
Capital received from investors | $501,732,780 | |
Total distributable loss | + | (62,911,395) |
Net assets | $438,821,385 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares
Outstanding |
= | NAV |
$438,821,385 | 20,200,000 | $21.72 | ||
For the period September 1, 2021 through August 31, 2022 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $1,459,752) | $15,715,636 | |
Securities on loan, net | + | 18,076 |
Total investment income | 15,733,712 | |
Expenses | ||
Management fees | 375,655 | |
Proxy fees1 | + | 3,979 |
Total expenses | – | 379,634 |
Net investment income | 15,354,078 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (10,298,220) | |
Net realized gains on sales of in-kind redemptions - unaffiliated | 488,262 | |
Net realized losses on futures contracts | (81,391) | |
Net realized losses on foreign currency transactions | + | (178,498) |
Net realized losses | (10,069,847) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of ($17,653)) | (62,248,984) | |
Net change in unrealized appreciation (depreciation) on futures contracts | (150,792) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (84,043) |
Net change in unrealized appreciation (depreciation) | + | (62,483,819) |
Net realized and unrealized losses | (72,553,666) | |
Decrease in net assets resulting from operations | ($57,199,588) |
1 | Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
OPERATIONS | |||
9/1/21-8/31/22 | 4/29/21*-8/31/21 | ||
Net investment income | $15,354,078 | $898,242 | |
Net realized losses | (10,069,847) | (36,909) | |
Net change in unrealized appreciation (depreciation) | + | (62,483,819) | 366,862 |
Increase (decrease) in net assets resulting from operations | ($57,199,588) | $1,228,195 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($6,562,600) | ($95,190) |
TRANSACTIONS IN FUND SHARES | |||||
9/1/21-8/31/22 | 4/29/21*-8/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 16,500,000 | $405,762,453 | 3,900,000 | $100,530,629 | |
Shares redeemed | + | (200,000) | (4,842,514) | — | — |
Net transactions in fund shares | 16,300,000 | $400,919,939 | 3,900,000 | $100,530,629 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
9/1/21-8/31/22 | 4/29/21*-8/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 3,900,000 | $101,663,634 | — | $— | |
Total increase | + | 16,300,000 | 337,157,751 | 3,900,000 | 101,663,634 |
End of period | 20,200,000 | $438,821,385 | 3,900,000 | $101,663,634 |
* | Commencement of operations. |
9/1/21– 8/31/22 |
9/1/20– 8/31/21 |
9/1/19– 8/31/20 |
9/1/18– 8/31/19 |
9/1/17– 8/31/18 |
||
Per-Share Data | ||||||
Net asset value at beginning of period | $40.05 | $32.11 | $30.82 | $33.25 | $32.51 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 1.16 | 0.95 | 0.77 | 1.00 | 0.98 | |
Net realized and unrealized gains (losses) | (8.71) | 7.84 | 1.49 | (2.30) | 0.56 | |
Total from investment operations | (7.55) | 8.79 | 2.26 | (1.30) | 1.54 | |
Less distributions: | ||||||
Distributions from net investment income | (1.18) | (0.85) | (0.97) | (1.13) | (0.80) | |
Net asset value at end of period | $31.32 | $40.05 | $32.11 | $30.82 | $33.25 | |
Total return | (19.27%) | 27.62% | 7.37% | (3.79%) | 4.70% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.06% 2 | 0.06% | 0.06% | 0.06% | 0.06% | |
Net investment income (loss) | 3.20% | 2.59% | 2.50% | 3.22% | 2.91% | |
Portfolio turnover rate3 | 6% | 6% | 6% | 8% | 5% | |
Net assets, end of period (x 1,000,000) | $26,120 | $28,338 | $19,844 | $18,139 | $16,294 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Ratio includes less than 0.005% of non-routine proxy expenses. |
3 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
DESCRIPTION | QUOTED
PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
OTHER
SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL |
Assets | ||||
Common Stocks1 | $20,454,132,866 | $— | $— | $20,454,132,866 |
Hong Kong | 729,870,953 | — | 0* | 729,870,953 |
Republic of Korea | 1,139,796,290 | — | 163,781 | 1,139,960,071 |
United Kingdom | 3,482,134,028 | — | 0* | 3,482,134,028 |
Preferred Stocks1 | 167,103,307 | — | — | 167,103,307 |
Rights 1 | ||||
Hong Kong | — | — | 80,929 | 80,929 |
Short-Term Investments1 | 57,501,670 | — | — | 57,501,670 |
Liabilities | ||||
Futures Contracts2 | (5,559,537) | — | — | (5,559,537) |
Total | $26,024,979,577 | $— | $244,710 | $26,025,224,287 |
* | Level 3 amount shown includes securities determined to have no value at August 31, 2022. |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $25,869,611,424) including securities on loan of $30,193,668 | $26,030,783,824 | |
Cash | 305,970 | |
Foreign currency, at value (cost $17,900,292) | 17,669,939 | |
Deposit with broker for futures contracts | 10,822,979 | |
Receivables: | ||
Dividends | 67,945,276 | |
Foreign tax reclaims | 24,326,864 | |
Investments sold | 2,157,478 | |
Income from securities on loan | + | 132,242 |
Total assets | 26,154,144,572 | |
Liabilities | ||
Collateral held for securities on loan | 31,745,287 | |
Payables: | ||
Management fees | 1,387,317 | |
Variation margin on futures contracts | + | 1,015,002 |
Total liabilities | 34,147,606 | |
Net assets | $26,119,996,966 | |
Net Assets by Source | ||
Capital received from investors | $27,369,118,187 | |
Total distributable loss | + | (1,249,121,221) |
Net assets | $26,119,996,966 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares
Outstanding |
= | NAV |
$26,119,996,966 | 834,100,000 | $31.32 | ||
For the period September 1, 2021 through August 31, 2022 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $90,498,779) | $903,172,580 | |
Securities on loan, net | + | 3,670,654 |
Total investment income | 906,843,234 | |
Expenses | ||
Management fees | 16,690,788 | |
Proxy fees1 | 360,879 | |
Professional fees | + | 90,768 2 |
Total expenses | 17,142,435 | |
Expense reduction by investment adviser | – | 90,768 2 |
Net expenses | – | 17,051,667 |
Net investment income | 889,791,567 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated | (420,745,524) | |
Net realized losses on futures contracts | (23,782,459) | |
Net realized losses on foreign currency transactions | + | (12,319,544) |
Net realized losses | (456,847,527) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated | (6,278,008,093) | |
Net change in unrealized appreciation (depreciation) on futures contracts | (7,049,466) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (3,807,402) |
Net change in unrealized appreciation (depreciation) | + | (6,288,864,961) |
Net realized and unrealized losses | (6,745,712,488) | |
Decrease in net assets resulting from operations | ($5,855,920,921) |
1 | Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
2 | Professional fees associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
OPERATIONS | |||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||
Net investment income | $889,791,567 | $631,237,991 | |
Net realized gains (losses) | (456,847,527) | 42,428,120 | |
Net change in unrealized appreciation (depreciation) | + | (6,288,864,961) | 5,104,237,095 |
Increase (decrease) in net assets resulting from operations | ($5,855,920,921) | $5,777,903,206 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($883,078,400) | ($557,207,730) |
TRANSACTIONS IN FUND SHARES | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 126,500,000 | $4,520,915,430 | 102,100,000 | $3,781,481,014 | |
Shares redeemed | + | — | — | (12,500,000) | (507,727,175) |
Net transactions in fund shares | 126,500,000 | $4,520,915,430 | 89,600,000 | $3,273,753,839 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 707,600,000 | $28,338,080,857 | 618,000,000 | $19,843,631,542 | |
Total increase (decrease) | + | 126,500,000 | (2,218,083,891) | 89,600,000 | 8,494,449,315 |
End of period | 834,100,000 | $26,119,996,966 | 707,600,000 | $28,338,080,857 |
9/1/21– 8/31/22 |
9/1/20– 8/31/21 |
9/1/19– 8/31/20 |
9/1/18– 8/31/19 |
9/1/17– 8/31/18 |
||
Per-Share Data | ||||||
Net asset value at beginning of period | $43.21 | $33.20 | $31.15 | $35.86 | $34.80 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.93 | 0.72 | 0.64 | 0.82 | 0.84 | |
Net realized and unrealized gains (losses) | (11.45) | 10.11 | 2.36 | (4.63) | 1.22 | |
Total from investment operations | (10.52) | 10.83 | 3.00 | (3.81) | 2.06 | |
Less distributions: | ||||||
Distributions from net investment income | (1.02) | (0.82) | (0.95) | (0.90) | (1.00) | |
Net asset value at end of period | $31.67 | $43.21 | $33.20 | $31.15 | $35.86 | |
Total return | (24.85%) | 33.01% | 9.63% | (10.57%) | 5.93% | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.11% 2 | 0.11% | 0.11% 3 | 0.12% | 0.12% | |
Net investment income (loss) | 2.49% | 1.87% | 2.07% | 2.54% | 2.31% | |
Portfolio turnover rate4 | 18% | 22% | 17% | 20% | 16% | |
Net assets, end of period (x 1,000,000) | $3,383 | $3,832 | $2,596 | $2,187 | $2,281 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Ratio includes less than 0.005% of non-routine proxy expenses. |
3 | Effective February 25, 2020, the annual operating expense ratio was reduced to 0.11%. The ratio presented for the period ended 8/31/20 is a blended ratio. |
4 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
DESCRIPTION | QUOTED
PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
OTHER
SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL |
Assets | ||||
Common Stocks1 | $2,384,672,294 | $— | $— | $2,384,672,294 |
Australia | 243,699,261 | — | 2,544,273* | 246,243,534 |
Hong Kong | 38,405,826 | — | 10,723* | 38,416,549 |
Republic of Korea | 182,620,469 | — | 160,311 | 182,780,780 |
Singapore | 40,869,044 | — | 0* | 40,869,044 |
Spain | 53,221,866 | — | 0* | 53,221,866 |
United Kingdom | 416,489,806 | — | 0* | 416,489,806 |
Preferred Stocks1 | 5,577,301 | — | — | 5,577,301 |
Rights 1 | ||||
Australia | — | — | 0* | 0 |
Warrants 1 | ||||
Australia | — | — | 4,279 | 4,279 |
Italy | — | — | 62,868 | 62,868 |
Singapore | — | — | 0* | 0 |
Investment Companies1 | 3,155,334 | — | — | 3,155,334 |
Short-Term Investments1 | 60,791,006 | — | — | 60,791,006 |
Liabilities | ||||
Futures Contracts2 | (493,549) | — | — | (493,549) |
Total | $3,429,008,658 | $— | $2,782,454 | $3,431,791,112 |
* | Level 3 amount shown includes securities determined to have no value at August 31, 2022. |
1 | As categorized in the Portfolio Holdings. |
2 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $3,700,769,429) including securities on loan of $53,418,691 | $3,432,284,661 | |
Foreign currency, at value (cost $2,947,439) | 2,936,780 | |
Deposit with broker for futures contracts | 1,072,068 | |
Receivables: | ||
Dividends | 6,210,577 | |
Foreign tax reclaims | 2,053,342 | |
Income from securities on loan | 231,275 | |
Investments sold | + | 73,059 |
Total assets | 3,444,861,762 | |
Liabilities | ||
Collateral held for securities on loan | 56,448,567 | |
Payables: | ||
Investments bought | 5,128,374 | |
Management fees | 327,308 | |
Foreign capital gains tax | 175,228 | |
Variation margin on futures contracts | + | 73,584 |
Total liabilities | 62,153,061 | |
Net assets | $3,382,708,701 | |
Net Assets by Source | ||
Capital received from investors | $3,872,525,446 | |
Total distributable loss | + | (489,816,745) |
Net assets | $3,382,708,701 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares
Outstanding |
= | NAV |
$3,382,708,701 | 106,800,000 | $31.67 | ||
For the period September 1, 2021 through August 31, 2022 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $11,447,051) | $91,313,655 | |
Securities on loan, net | + | 2,772,751 |
Total investment income | 94,086,406 | |
Expenses | ||
Management fees | 3,972,896 | |
Proxy fees1 | 162,951 | |
Professional fees | + | 10,892 2 |
Total expenses | 4,146,739 | |
Expense reduction by investment adviser | – | 10,892 2 |
Net expenses | – | 4,135,847 |
Net investment income | 89,950,559 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated (net of foreign capital gains tax paid of ($161)) | (21,527,290) | |
Net realized gains on sales of in-kind redemptions - unaffiliated | 94,251,031 | |
Net realized losses on futures contracts | (3,084,900) | |
Net realized losses on foreign currency transactions | + | (1,385,835) |
Net realized gains | 68,253,006 | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of ($63,642)) | (1,173,080,007) | |
Net change in unrealized appreciation (depreciation) on futures contracts | (518,125) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (424,496) |
Net change in unrealized appreciation (depreciation) | + | (1,174,022,628) |
Net realized and unrealized losses | (1,105,769,622) | |
Decrease in net assets resulting from operations | ($1,015,819,063) |
1 | Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
2 | Professional fees associated with the filing of tax claims in the European Union deemed to be non-contingent and non-routine expenses of the fund (see financial notes 2(d) and 4 for additional information). |
OPERATIONS | |||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||
Net investment income | $89,950,559 | $59,652,040 | |
Net realized gains | 68,253,006 | 84,777,800 | |
Net change in unrealized appreciation (depreciation) | + | (1,174,022,628) | 736,532,643 |
Increase (decrease) in net assets resulting from operations | ($1,015,819,063) | $880,962,483 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($93,611,110) | ($66,927,200) |
TRANSACTIONS IN FUND SHARES | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 21,600,000 | $800,090,348 | 12,900,000 | $508,015,311 | |
Shares redeemed | + | (3,500,000) | (140,297,403) | (2,400,000) | (85,575,957) |
Net transactions in fund shares | 18,100,000 | $659,792,945 | 10,500,000 | $422,439,354 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 88,700,000 | $3,832,345,929 | 78,200,000 | $2,595,871,292 | |
Total increase (decrease) | + | 18,100,000 | (449,637,228) | 10,500,000 | 1,236,474,637 |
End of period | 106,800,000 | $3,382,708,701 | 88,700,000 | $3,832,345,929 |
9/1/21– 8/31/22 |
9/1/20– 8/31/21 |
9/1/19– 8/31/20 |
9/1/18– 8/31/19 |
9/1/17– 8/31/18 |
||
Per-Share Data | ||||||
Net asset value at beginning of period | $31.64 | $27.11 | $24.82 | $25.89 | $26.99 | |
Income (loss) from investment operations: | ||||||
Net investment income (loss)1 | 0.93 | 0.63 | 0.79 | 0.72 | 0.68 | |
Net realized and unrealized gains (losses) | (6.63) | 4.64 | 2.34 | (1.00) | (1.13) | |
Total from investment operations | (5.70) | 5.27 | 3.13 | (0.28) | (0.45) | |
Less distributions: | ||||||
Distributions from net investment income | (0.72) | (0.74) | (0.84) | (0.79) | (0.65) | |
Net asset value at end of period | $25.22 | $31.64 | $27.11 | $24.82 | $25.89 | |
Total return | (18.32%) | 19.53% | 12.76% | (0.97%) | (1.79%) | |
Ratios/Supplemental Data | ||||||
Ratios to average net assets: | ||||||
Total expenses | 0.11% 2 | 0.11% | 0.12% 3 | 0.13% | 0.13% | |
Net investment income (loss) | 3.33% | 2.04% | 3.16% | 2.85% | 2.48% | |
Portfolio turnover rate4 | 13% | 15% | 15% | 13% | 18% | |
Net assets, end of period (x 1,000,000) | $8,557 | $9,505 | $7,196 | $5,804 | $4,901 |
1 | Calculated based on the average shares outstanding during the period. |
2 | Ratio includes less than 0.005% of non-routine proxy expenses. |
3 | Effective February 25, 2020, the annual operating expense ratio was reduced to 0.11%. The ratio presented for the period ended 8/31/20 is a blended ratio. |
4 | Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions. |
DESCRIPTION | QUOTED
PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
OTHER
SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT
UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL |
Assets | ||||
Common Stocks1 | $3,793,488,565 | $— | $— | $3,793,488,565 |
China | 2,944,823,968 | — | 4,855,871 | 2,949,679,839 |
Greece | 27,802,750 | — | 0* | 27,802,750 |
Hong Kong | — | — | 0* | 0 |
India | 1,485,185,410 | — | 5,109,213 | 1,490,294,623 |
Kuwait | 81,456,663 | — | 9,716,140 | 91,172,803 |
Russia 2 | — | — | 29,578 | 29,578 |
Preferred Stocks1 | 174,345,330 | — | — | 174,345,330 |
Rights 1 | ||||
Thailand | — | — | 0* | 0 |
Short-Term Investments1 | 86,534,893 | — | — | 86,534,893 |
Liabilities | ||||
Futures Contracts3 | (1,009,657) | — | — | (1,009,657) |
Total | $8,592,627,922 | $— | $19,710,802 | $8,612,338,724 |
* | Level 3 amount shown includes securities determined to have no value at August 31, 2022. |
1 | As categorized in the Portfolio Holdings. |
2 | Trading in Russian securities listed on the Moscow Exchange, Russian ADRs, and Russian GDRs are subject to trade restrictions and therefore the ability of the fund to buy or sell these securities is uncertain. |
3 | Futures contracts are reported at cumulative unrealized appreciation or depreciation. |
Assets | ||
Investments in securities, at value - unaffiliated (cost $7,677,882,448) including securities on loan of $34,890,236 | $8,613,348,381 | |
Foreign currency, at value (cost $23,288,715) | 23,239,217 | |
Deposit with broker for futures contracts | 4,521,653 | |
Receivables: | ||
Dividends | 23,107,464 | |
Investments sold | 169,441 | |
Variation margin on future contracts | 68,250 | |
Income from securities on loan | + | 61,018 |
Total assets | 8,664,515,424 | |
Liabilities | ||
Collateral held for securities on loan | 38,809,505 | |
Payables: | ||
Foreign capital gains tax | 56,304,486 | |
Investments bought | 11,196,071 | |
Management fees | + | 801,715 |
Total liabilities | 107,111,777 | |
Net assets | $8,557,403,647 | |
Net Assets by Source | ||
Capital received from investors | $8,865,598,782 | |
Total distributable loss | + | (308,195,135) |
Net assets | $8,557,403,647 |
Net Asset Value (NAV) | ||||
Net Assets | ÷ | Shares
Outstanding |
= | NAV |
$8,557,403,647 | 339,300,000 | $25.22 | ||
For the period September 1, 2021 through August 31, 2022 | ||
Investment Income | ||
Dividends received from securities - unaffiliated (net of foreign withholding tax of $33,599,871) | $309,308,694 | |
Securities on loan, net | + | 749,972 |
Total investment income | 310,058,666 | |
Expenses | ||
Management fees | 9,918,702 | |
Proxy fees1 | + | 275,220 |
Total expenses | – | 10,193,922 |
Net investment income | 299,864,744 | |
REALIZED AND UNREALIZED GAINS (LOSSES) | ||
Net realized losses on sales of securities - unaffiliated (net of foreign capital gains tax paid of $890,531) | (462,433,530) | |
Net realized losses on futures contracts | (5,438,027) | |
Net realized losses on foreign currency transactions | + | (4,611,237) |
Net realized losses | (472,482,794) | |
Net change in unrealized appreciation (depreciation) on securities - unaffiliated (net of change in foreign capital gains tax of ($1,266,870)) | (1,639,739,056) | |
Net change in unrealized appreciation (depreciation) on futures contracts | (1,617,230) | |
Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (495,074) |
Net change in unrealized appreciation (depreciation) | + | (1,641,851,360) |
Net realized and unrealized losses | (2,114,334,154) | |
Decrease in net assets resulting from operations | ($1,814,469,410) |
1 | Proxy fees are non-routine expenses (see financial note 2(e) for additional information). |
OPERATIONS | |||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||
Net investment income | $299,864,744 | $177,245,520 | |
Net realized losses | (472,482,794) | (154,663,920) | |
Net change in unrealized appreciation (depreciation) | + | (1,641,851,360) | 1,383,742,353 |
Increase (decrease) in net assets resulting from operations | ($1,814,469,410) | $1,406,323,953 | |
DISTRIBUTIONS TO SHAREHOLDERS | |||
Total distributions | ($221,827,290) | ($204,700,900) |
TRANSACTIONS IN FUND SHARES | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | VALUE | SHARES | VALUE | ||
Shares sold | 38,900,000 | $1,088,558,847 | 35,000,000 | $1,107,996,332 | |
Net transactions in fund shares | 38,900,000 | $1,088,558,847 | 35,000,000 | $1,107,996,332 | |
SHARES OUTSTANDING AND NET ASSETS | |||||
9/1/21-8/31/22 | 9/1/20-8/31/21 | ||||
SHARES | NET ASSETS | SHARES | NET ASSETS | ||
Beginning of period | 300,400,000 | $9,505,141,500 | 265,400,000 | $7,195,522,115 | |
Total increase (decrease) | + | 38,900,000 | (947,737,853) | 35,000,000 | 2,309,619,385 |
End of period | 339,300,000 | $8,557,403,647 | 300,400,000 | $9,505,141,500 |
SCHWAB STRATEGIC TRUST (ORGANIZED JANUARY 27, 2009) | |
Schwab International Dividend Equity ETF | Schwab Short-Term U.S. Treasury ETF |
Schwab International Equity ETF | Schwab Intermediate-Term U.S. Treasury ETF |
Schwab International Small-Cap Equity ETF | Schwab Long-Term U.S. Treasury ETF |
Schwab Emerging Markets Equity ETF | Schwab U.S. Aggregate Bond ETF |
Schwab U.S. Broad Market ETF | Schwab 1-5 Year Corporate Bond ETF |
Schwab 1000 Index® ETF | Schwab 5-10 Year Corporate Bond ETF |
Schwab U.S. Large-Cap ETF | Schwab Fundamental U.S. Broad Market Index ETF |
Schwab U.S. Large-Cap Growth ETF | Schwab Fundamental U.S. Large Company Index ETF |
Schwab U.S. Large-Cap Value ETF | Schwab Fundamental U.S. Small Company Index ETF |
Schwab U.S. Mid-Cap ETF | Schwab Fundamental International Large Company Index ETF |
Schwab U.S. Small-Cap ETF | Schwab Fundamental International Small Company Index ETF |
Schwab U.S. Dividend Equity ETF | Schwab Fundamental Emerging Markets Large Company Index ETF |
Schwab U.S. REIT ETF | Schwab Ariel ESG ETF |
Schwab U.S. TIPS ETF | Schwab Crypto Thematic ETF |
SCHWAB
INTERNATIONAL DIVIDEND EQUITY ETF |
SCHWAB
INTERNATIONAL EQUITY ETF |
SCHWAB
INTERNATIONAL SMALL-CAP EQUITY ETF |
SCHWAB
EMERGING MARKETS EQUITY ETF |
0.14% | 0.06% | 0.11% | 0.11% |
UNDERLYING FUNDS | |||
SCHWAB
INTERNATIONAL EQUITY ETF |
SCHWAB
INTERNATIONAL SMALL-CAP EQUITY ETF |
SCHWAB
EMERGING MARKETS EQUITY ETF | |
Schwab International Opportunities Fund | —% | —% | 0.6% |
Schwab Target 2010 Index Fund | 0.0%* | —% | —% |
Schwab Target 2015 Index Fund | 0.0%* | —% | —% |
Schwab Target 2020 Index Fund | 0.1% | —% | —% |
Schwab Target 2025 Index Fund | 0.3% | —% | 0.1% |
Schwab Target 2030 Index Fund | 0.5% | —% | 0.3% |
Schwab Target 2035 Index Fund | 0.4% | —% | 0.2% |
Schwab Target 2040 Index Fund | 0.5% | —% | 0.3% |
Schwab Target 2045 Index Fund | 0.3% | —% | 0.3% |
Schwab Target 2050 Index Fund | 0.4% | —% | 0.3% |
Schwab Target 2055 Index Fund | 0.3% | —% | 0.2% |
Schwab Target 2060 Index Fund | 0.3% | —% | 0.3% |
Schwab Target 2065 Index Fund | 0.0%* | —% | 0.0%* |
Schwab VIT Balanced Portfolio | 0.0%* | 0.0%* | 0.0%* |
Schwab VIT Balanced with Growth Portfolio | 0.1% | 0.1% | 0.1% |
Schwab VIT Growth Portfolio | 0.1% | 0.2% | 0.1% |
* | Less than 0.05% |
PURCHASE COST | SALE PROCEEDS | REALIZED GAINS (LOSSES) | |
Schwab International Dividend Equity ETF | $12,986,880 | $16,902,393 | ($1,792,945) |
Schwab International Equity ETF | 181,159,746 | 166,061,745 | (86,390,757) |
Schwab International Small-Cap Equity ETF | 65,885,603 | 190,017,208 | 30,700,479 |
Schwab Emerging Markets Equity ETF | 32,174,023 | 116,684,630 | (46,350,966) |
NOTIONAL AMOUNTS | NUMBER OF CONTRACTS | |
Schwab International Dividend Equity ETF | $1,442,776 | 16 |
Schwab International Equity ETF | 119,673,652 | 1,136 |
Schwab International Small-Cap Equity ETF | 15,414,703 | 146 |
Schwab Emerging Markets Equity ETF | 31,083,968 | 561 |
PURCHASES
OF SECURITIES |
SALES
OF SECURITIES | |
Schwab International Dividend Equity ETF | $174,685,090 | $119,486,495 |
Schwab International Equity ETF | 1,819,633,813 | 1,585,384,742 |
Schwab International Small-Cap Equity ETF | 746,600,039 | 659,677,305 |
Schwab Emerging Markets Equity ETF | 2,147,659,754 | 1,207,142,271 |
IN-KIND
PURCHASES OF SECURITIES |
IN-KIND
SALES OF SECURITIES | |
Schwab International Dividend Equity ETF | $353,708,285 | $4,303,818 |
Schwab International Equity ETF | 4,136,851,966 | 0 |
Schwab International Small-Cap Equity ETF | 726,964,059 | 137,487,331 |
Schwab Emerging Markets Equity ETF | 176,777,722 | 0 |
TAX COST | GROSS
UNREALIZED APPRECIATION |
GROSS
UNREALIZED DEPRECIATION |
NET
UNREALIZED APPRECIATION (DEPRECIATION) | |
Schwab International Dividend Equity ETF | $499,462,311 | $3,187,371 | ($67,240,944) | ($64,053,573) |
Schwab International Equity ETF | 26,275,289,307 | 3,298,756,700 | (3,548,821,720) | (250,065,020) |
Schwab International Small-Cap Equity ETF | 3,792,719,199 | 402,672,225 | (763,600,312) | (360,928,087) |
Schwab Emerging Markets Equity ETF | 8,050,542,729 | 1,955,993,494 | (1,394,197,499) | 561,795,995 |
UNDISTRIBUTED
ORDINARY INCOME |
NET
UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS |
NET
OTHER UNREALIZED APPRECIATION (DEPRECIATION) |
CAPITAL
LOSS CARRYFORWARDS AND OTHER LOSSES |
TOTAL | |
Schwab International Dividend Equity ETF | $9,410,274 | ($64,053,573) | ($101,749) | ($8,166,347) | ($62,911,395) |
Schwab International Equity ETF | 310,137,360 | (250,065,020) | (3,096,403) | (1,306,097,158) | (1,249,121,221) |
Schwab International Small-Cap Equity ETF | 39,622,743 | (360,928,087) | (537,311) | (167,974,090) | (489,816,745) |
Schwab Emerging Markets Equity ETF | 177,055,288 | 561,795,995 | (56,386,818) | (990,659,600) | (308,195,135) |
Schwab International Dividend Equity ETF | $8,166,347 |
Schwab International Equity ETF | 1,306,097,158 |
Schwab International Small-Cap Equity ETF | 167,974,090 |
Schwab Emerging Markets Equity ETF | 990,659,600 |
CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | |
ORDINARY
INCOME |
ORDINARY
INCOME | |
Schwab International Dividend Equity ETF | $6,562,600 | $95,190 |
Schwab International Equity ETF | 883,078,400 | 557,207,730 |
Schwab International Small-Cap Equity ETF | 93,611,110 | 66,927,200 |
Schwab Emerging Markets Equity ETF | 221,827,290 | 204,700,900 |
FOREIGN TAX CREDIT | FOREIGN SOURCE INCOME | |
Schwab International Dividend Equity ETF | $1,402,100 | $17,171,529 |
Schwab International Equity ETF | 52,793,794 | 974,565,128 |
Schwab International Small-Cap Equity ETF | 9,897,611 | 102,256,641 |
Schwab Emerging Markets Equity ETF | 33,212,801 | 342,729,204 |
Schwab International Dividend Equity ETF | $7,231,663 |
Schwab International Equity ETF | 868,317,158 |
Schwab International Small-Cap Equity ETF | 68,231,475 |
Schwab Emerging Markets Equity ETF | 101,507,631 |
Proposal
– To elect each of the following individuals as trustees of the Trust: |
For | Withheld |
Walter W. Bettinger II | 1,707,011,744.958 | 53,766,812.577 |
Richard A. Wurster | 1,741,778,933.018 | 18,999,624.517 |
Michael J. Beer | 1,741,911,579.511 | 18,866,978.024 |
Robert W. Burns | 1,742,002,589.714 | 18,775,967.821 |
Nancy F. Heller | 1,743,265,288.229 | 17,513,269.306 |
David L. Mahoney | 1,488,067,807.852 | 272,710,749.683 |
Jane P. Moncreiff | 1,743,396,670.121 | 17,381,887.414 |
Kiran M. Patel | 1,738,761,227.827 | 22,017,329.708 |
Kimberly S. Patmore | 1,740,654,694.664 | 20,123,862.871 |
J. Derek Penn | 1,739,737,491.136 | 21,041,066.399 |
Independent Trustees | |||
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal
Occupations During the Past Five Years |
Number
of Portfolios in Fund Complex Overseen by the Trustee |
Other Directorships |
Michael J. Beer 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) |
Retired. Director, President and Chief Executive Officer (Dec. 2016 – Sept. 2019), Principal Funds (investment management). | 105 | Director (2016 – 2019), Principal Funds, Inc. |
Robert
W. Burns 1959 Trustee (Trustee of Schwab Strategic Trust since 2009; The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2016) |
Retired/Private Investor. | 105 | None |
Nancy
F. Heller 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) |
Retired. | 105 | None |
David
L. Mahoney 1954 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) |
Private Investor. | 105 | Director
(2004 – present), Corcept Therapeutics Incorporated Director (2009 – 2021), Adamas Pharmaceuticals, Inc. Director (2003 – 2019), Symantec Corporation |
Jane
P. Moncreiff 1961 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2019) |
Consultant (2018 – present), Fulham Advisers LLC (management consulting); Chief Investment Officer (2009 – 2017), CareGroup Healthcare System, Inc. (healthcare). | 105 | None |
Independent Trustees (continued) | |||
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal
Occupations During the Past Five Years |
Number
of Portfolios in Fund Complex Overseen by the Trustee |
Other Directorships |
Kiran
M. Patel 1948 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2011; Schwab Strategic Trust since 2016) |
Retired. | 105 | Director (2008 – present), KLA-Tencor Corporation |
Kimberly
S. Patmore 1956 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2016) |
Consultant (2008 – present), Patmore Management Consulting (management consulting). | 105 | None |
J. Derek Penn 1957 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) |
Head of Equity Sales and Trading (2006 – 2018), BNY Mellon (financial services). | 105 | None |
Interested Trustees | |||
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal
Occupations During the Past Five Years |
Number
of Portfolios in Fund Complex Overseen by the Trustee |
Other Directorships |
Walter
W. Bettinger II2 1960 Chairman and Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust and Schwab Annuity Portfolios since 2008; Schwab Strategic Trust since 2009; Laudus Trust since 2010) |
Co-Chairman of the Board (July 2022 – present), Director and Chief Executive Officer (Oct. 2008 – present) and President (Feb. 2007 – Oct. 2021), The Charles Schwab Corporation; President and Chief Executive Officer (Oct. 2008 – Oct. 2021) and Director (May 2008 – Oct. 2021), Charles Schwab & Co., Inc.; Director (Apr. 2006 – present), Charles Schwab Bank, SSB; Director (Nov. 2017 – present), Charles Schwab Premier Bank, SSB; Director (July 2019 – present), Charles Schwab Trust Bank; Director (May 2008 – present), Chief Executive Officer (Aug. 2017 – present), and President (Aug. 2017 – Nov. 2021), Schwab Holdings, Inc.; Director (Oct. 2020 – present), TD Ameritrade Holding Corporation; Director (July 2016 – Oct. 2021), Charles Schwab Investment Management, Inc. | 105 | Director (2008 – present), The Charles Schwab Corporation |
Interested Trustees (continued) | |||
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served1) |
Principal
Occupations During the Past Five Years |
Number
of Portfolios in Fund Complex Overseen by the Trustee |
Other Directorships |
Richard
A. Wurster2 1973 Trustee (Trustee of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2022) |
President (Oct. 2021 – present) and Executive Vice President – Schwab Asset Management Solutions (Apr. 2019 – Oct. 2021), The Charles Schwab Corporation; President, Director (Oct. 2021 – present), Executive Vice President – Schwab Asset Management Solutions (July 2019 – Oct. 2021) and Senior Vice President – Advisory (May 2016 – July 2019), Charles Schwab & Co., Inc.; President (Nov. 2021 – present), Schwab Holdings, Inc.; Director (Oct. 2021 – present) and Chief Executive Officer (Nov. 2019 – Jan. 2022), Charles Schwab Investment Management, Inc.; Director, Chief Executive Officer and President (Mar. 2018 – present), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (July 2016 – Apr. 2018) and President (Mar. 2017 – Apr. 2018), ThomasPartners, Inc.; Chief Executive Officer (July 2016 – Apr. 2018), Windhaven Investment Management, Inc. | 105 | None |
Officers of the Trust | |
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) |
Principal Occupations During the Past Five Years |
Jonathan
de St. Paer 1973 President and Chief Executive Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2018) |
Director (Apr. 2019 – present), President (Oct. 2018 – present), Chief Operating Officer (Jan. 2021 – present), and Chief Executive Officer (Apr. 2019 – Nov. 2019), Charles Schwab Investment Management, Inc.; Senior Vice President (June 2020 – Mar. 2022) and Chief Operating Officer (Jan. 2021 – Mar. 2022), Charles Schwab Investment Advisory, Inc.; Chief Executive Officer (Apr. 2019 – present), President (Nov. 2018 – present) and Trustee (Apr. 2019 – Dec. 2020), Schwab Funds, Laudus Trust and Schwab ETFs; Director (Mar. 2019 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited; Managing Director (May 2022 – present), Senior Vice President (Apr. 2019 – May 2022) and Senior Vice President – Strategy and Product Development (CSIM) (Jan. 2014 – Mar. 2019), Charles Schwab & Co., Inc. |
Mark
Fischer 1970 Treasurer, Chief Financial Officer and Chief Operating Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2013) |
Treasurer and Chief Financial Officer (Jan. 2016 – present) and Chief Operating Officer (Dec. 2020 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Chief Financial Officer (Mar. 2020 – present) and Vice President (Oct. 2013 – present), Charles Schwab Investment Management, Inc.; Director (July 2020 – Apr. 2022), Charles Schwab Worldwide Funds plc and Charles Schwab Asset Management (Ireland) Limited. |
Omar
Aguilar 1970 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) |
Chief Executive Officer (Jan. 2022 – present), Chief Investment Officer (Apr. 2011 – present) and Senior Vice President (Apr. 2011 – Dec. 2021), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
Brett
Wander 1961 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2011) |
Senior Vice President and Chief Investment Officer (Apr. 2011 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2011 – present), Schwab Funds, Laudus Trust and Schwab ETFs. |
William
P. McMahon, Jr. 1972 Vice President and Chief Investment Officer (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust since 2021) |
Senior Vice President and Chief Investment Officer (Jan. 2020 – present), Charles Schwab Investment Management, Inc.; Vice President and Chief Investment Officer (June 2021 – present), Schwab Funds, Laudus Trust and Schwab ETFs; Senior Vice President and Chief Investment Officer – ThomasPartners Strategies (Apr. 2018 – Dec. 2019), Charles Schwab Investment Advisory, Inc.; Senior Vice President and Chief Investment Officer (May 2001 – Apr. 2018), ThomasPartners, Inc. |
Officers of the Trust (continued) | |
Name,
Year of Birth, and Position(s) with the trust (Terms of office, and length of Time Served3) |
Principal Occupations During the Past Five Years |
Catherine
MacGregor 1964 Chief Legal Officer and Secretary, Schwab Funds and Schwab ETFs Chief Legal Officer, Vice President and Clerk, Laudus Trust (Officer of The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust since 2005; Schwab Strategic Trust since 2009) |
Chief Legal Officer (Mar. 2022 – present) and Vice President (Sept. 2005 – present), Charles Schwab Investment Management, Inc.; Managing Director (May 2022 – present) and Vice President (July 2005 – May 2022), Charles Schwab & Co., Inc.; Vice President (Dec. 2005 – present) and Chief Legal Officer and Clerk (Mar. 2007 – present), Laudus Trust; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President (Nov. 2005 – Oct. 2021) and Assistant Secretary (June 2007 – Oct. 2021), Schwab Funds; Chief Legal Officer and Secretary (Oct. 2021 – present), Vice President and Assistant Secretary (Oct. 2009 – Oct. 2021), Schwab ETFs. |
1 | Each Trustee shall hold office until the election and qualification of his or her successor, or until he or she dies, resigns or is removed. The retirement policy requires that each independent trustee retire by December 31 of the year in which the Trustee turns 74 or the Trustee’s twentieth year of service as an independent trustee on any trust in the Fund Complex, whichever occurs first. |
2 | Mr. Bettinger and Mr. Wurster are Interested Trustees. Each of Mr. Bettinger and Mr. Wurster is an Interested Trustee because he owns stock of The Charles Schwab Corporation (CSC), the parent company of Charles Schwab Investment Management, Inc., the investment adviser for the trusts in the Fund Complex, and is an employee of Charles Schwab & Co., Inc. (Schwab), the principal underwriter for The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios and Laudus Trust. |
3 | The President, Treasurer and Secretary/Clerk hold office until their respective successors are chosen and qualified or until he or she sooner dies, resigns, is removed or becomes disqualified. Each of the other officers serves at the pleasure of the Board. |
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