N-CSR

Schwab Fundamental Index ETFs

Performance at a Glance

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data 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, 2023
Schwab Fundamental U.S. Broad Market Index ETF (Ticker Symbol: FNDB)
Market Price Return1	-1.54%
NAV Return1	-1.63%
Russell RAFITM US Index	-1.36%
Russell 3000® Index	-8.07%
ETF Category: Morningstar Large Value2	-2.03%
Performance Details	pages 6-8

Schwab Fundamental U.S. Large Company Index ETF (Ticker Symbol: FNDX)
Market Price Return1	-1.66%
NAV Return1	-1.61%
Russell RAFITM US Large Company Index	-1.33%
Russell 1000® Index	-8.21%
ETF Category: Morningstar Large Value2	-2.03%
Performance Details	pages 9-11

Schwab Fundamental U.S. Small Company Index ETF (Ticker Symbol: FNDA)
Market Price Return1	-2.28%
NAV Return1	-2.13%
Russell RAFITM US Small Company Index	-2.00%
Russell 2000® Index	-6.02%
ETF Category: Morningstar Small Blend2	-3.37%
Performance Details	pages 12-14

Total Returns for the 12 Months Ended February 28, 2023
Schwab Fundamental International Large Company Index ETF (Ticker Symbol: FNDF)
Market Price Return1	-0.80%
NAV Return1	-0.91%
Russell RAFITM Developed ex US Large Company Index (Net)*	-0.87%
MSCI EAFE® Index (Net)*	-3.14%
ETF Category: Morningstar Foreign Large Value2	-1.89%
Performance Details	pages 15-17

Schwab Fundamental International Small Company Index ETF (Ticker Symbol: FNDC)
Market Price Return1	-6.99%
NAV Return1	-6.91%
Russell RAFITM Developed ex US Small Company Index (Net)*	-6.63%
S&P Developed ex-U.S. Small Cap Index (Net)*	-9.26%
ETF Category: Morningstar Foreign Small/Mid Value2	-2.44%
Performance Details	pages 18-20

Schwab Fundamental Emerging Markets Large Company Index ETF (Ticker Symbol: FNDE)
Market Price Return1	-10.66%
NAV Return1	-8.72%
Russell RAFITM Emerging Markets Large Company Index (Net)*	-12.26%
MSCI Emerging Markets Index (Net)*	-15.28%
ETF Category: Morningstar Diversified Emerging Markets2	-13.62%
Performance Details	pages 21-23

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.

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.

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.

2Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental Index ETFs

The Investment Environment

For the 12-month reporting period ended February 28, 2023, U.S. and international equity markets lost ground as inflation spiked, interest rates rose, and economic growth around the world slowed. The ongoing war between Russia and Ukraine and the continuing, albeit uneven, fallout from the COVID-19 pandemic weighed on economies and markets around the world. The U.S. dollar rose against a basket of foreign currencies through October 2022, but generally declined through the remainder of the reporting period, ending it slightly higher than it began. For the reporting period, the S&P 500® Index, a bellwether for the overall U.S. stock market, returned -7.69%. Among U.S. stocks, both large-cap stocks and small-cap stocks lost ground, with the Russell 1000® Index and the Russell RAFI™ US Large Company Index returning -8.21% and -1.33%, respectively, and the Russell 2000®Index and Russell RAFI™ US Small Company Index returning -6.02% and -2.00%, respectively. U.S. growth stocks underperformed U.S. value stocks. Among international markets, 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 -3.14% and -0.87%, respectively, and the MSCI Emerging Markets Index (Net)* and the Russell RAFI™ Emerging Markets Large Company Index (Net)* returned -15.28% and -12.26%, respectively.

In the United States, amid fading government stimuli, ongoing supply chain disruptions, persisting inflation, and a widening trade deficit, gross domestic product (GDP) contracted for the first and second quarters of 2022, decreasing at an annualized rate of -1.6% and -0.6%, respectively. GDP grew in the last two quarters, at an annualized rate of 3.2% and 2.6% for the third and fourth quarters, respectively. Inflation rose steadily in the first half of 2022, hitting a 40-year high in June 2022, before declining through the end of the reporting period, as certain consumer and energy prices began to recede. The unemployment rate remained low despite inflationary pressures, ending the reporting period near pre-pandemic lows.

Asset Class Performance Comparison % returns during the 12 months ended February 28, 2023

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 a guarantee 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.

Schwab Fundamental Index ETFs | Annual Report3

Schwab Fundamental Index ETFs

The Investment Environment (continued)

Outside the United States, conditions were similar. The eurozone, despite considerable headwinds, managed to maintain positive, albeit waning, GDP growth throughout 2022 as COVID-19 restrictions eased and tourism increased in response to pent-up demand. The United Kingdom posted small gains in GDP growth for the first and second quarters of 2022, in part driven by increased COVID-19 testing and tracing and an expansion of its vaccination program, contracted slightly in the third quarter, and rose slightly for the fourth quarter. Japan’s GDP growth vacillated within a small range throughout 2022. Among emerging markets, China’s GDP growth remained positive during the reporting period but slowed notably as it dealt with numerous headwinds including political turbulence, COVID-19 lockdowns and quarantines, and a severe property downturn, as a result of stalled demand, a decline in financing for property development, halted construction on in progress projects, and homeowners pausing payment of their mortgages on incomplete builds. Although India posted positive gains in GDP for all four quarters of 2022, its growth slowed over the year, in part due to reductions in private spending as borrowing costs escalated. Oil prices peaked at over $120 per barrel in early March 2022 as sanctions were imposed on Russian imports—and again in June on supply-and-demand imbalances—but generally retreated for the rest of the reporting period, ending at just under $80 per barrel.

Monetary policy around the world varied as central banks responded to the changing conditions. In the United States, after maintaining the federal funds rate in a range of 0.00% to 0.25% from mid-March 2020 through mid-March 2022, the U.S. Federal Reserve (Fed) shifted its stance as inflation continued to rise and indicators of economic activity and employment continued to strengthen. After issuing successively stronger signals that interest rates could begin to rise sooner in 2022 than previously anticipated, the Fed raised the federal funds rate eight times during the reporting period. The federal funds rate ended the reporting period in a range of 4.50% to 4.75%. The Fed wrapped up its bond-buying program in March 2022, and in June 2022 began to reduce the $9 trillion in assets held on its balance sheet, vowing to be even more aggressive than during its last round of quantitative tightening between 2017 and 2019. In developed international countries, central banks generally followed suit. The European Central Bank raised its interest rate five times over the reporting period in an effort to dampen demand and control inflation, which rose into double digits in October. The Bank of England raised its key official bank rate eight times during the reporting period, bringing borrowing costs to a 14-year high as it wrestled with soaring inflation. In contrast, the Bank of Japan continued to uphold its short-term interest rate target of -0.1%, unchanged since 2016, but in late December 2022 unexpectedly announced that it would widen the band around the yield target on its 10-year government bond, which pushed the yen higher. Monetary policy rates in emerging markets for the most part rose, with central banks in India, Indonesia, Brazil, Mexico, and Pakistan all raising their rates multiple times over the reporting period in an effort to counteract the impacts of inflation. In contrast, after cutting its prime rate in August 2022, China left its rate unchanged through the remainder of the reporting period. Loan demand began to rebound as China finally eased its stringent COVID-19 policies in early 2023. Russia, which had raised its benchmark policy rate to 20% in February 2022 amid the broadening fallout of Western sanctions in retaliation against its invasion of Ukraine, reduced it several times during the reporting period.

4Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental Index ETFs

Fund Management

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.

Jeremy Brown, CFA, Senior Portfolio Manager for Schwab Asset Management, 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 Craig1, CFA, Senior Portfolio Manager for Schwab Asset Management, is responsible for the oversight

and 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 for Schwab Asset Management, 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.

David Rios, Portfolio Manager for Schwab Asset Management, is responsible for the day-to-day

co-management of the Schwab Fundamental International Large Company Index 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).

Sabya Sinha, Portfolio Manager for Schwab Asset Management, 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.

Effective on or about May 5, 2023, Chuck Craig will retire and will no longer serve as senior portfolio manager 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.

Schwab Fundamental Index ETFs | Annual Report5

Schwab Fundamental U.S. Broad Market Index ETF as of February 28, 2023

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, 2023, U.S. equity markets lost ground as inflation spiked, interest rates rose, and economic growth around the world slowed. The ongoing war between Russia and Ukraine and the continuing, albeit uneven, fallout from the COVID-19 pandemic weighed on economies and markets around the world. Among U.S. stocks, both large-cap stocks and small-cap stocks lost ground, and U.S. growth stocks underperformed U.S. value stocks.

Performance. For the 12-month reporting period ended February 28, 2023, the fund generally tracked the index. The fund’s market price return was -1.54% and its NAV return was -1.63% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -1.36% 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 the most from the total return of the fund. Stocks in the information technology sector represented an average weight of approximately 16% of the fund’s investments and returned approximately -11% for the reporting period. One example from this sector is Intel Corp., which designs, manufactures, and sells computer components and related products. The fund’s holdings of Intel Corp. represented an average weight of approximately 1% of the fund’s investments and returned approximately -45% for the reporting period.

The communications services sector also detracted from the total return of the fund, representing an average weight of approximately 8% of the fund’s investments and returning approximately -20% for the reporting period.

The energy sector contributed the most to the total return of the fund. Stocks in the energy sector represented an average weight of approximately 9% of the fund’s investments and returned approximately 32% for the reporting period. One example from this sector is Exxon Mobil Corp., which operates petroleum and petro chemicals businesses. The fund’s holdings of Exxon Mobil Corp. represented an average weight of approximately 3% of the fund’s investments and returned approximately 45% for the reporting period.

The industrials sector also contributed to the total return of the fund, representing an average weight of approximately 11% of the fund’s investments and returning approximately 5% for the reporting period.

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

6Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Broad Market Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-1.54%	10.38%	10.79%
NAV Return2	-1.63%	10.41%	10.78%
Russell RAFITM US Index	-1.36%	10.67%	11.07%
Russell 3000® Index	-8.07%	9.42%	11.07%
ETF Category: Morningstar Large Value3	-2.03%	7.53%	N/A
Fund Expense Ratio4: 0.25%

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.

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.

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.

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.

As stated in the prospectus.

Schwab Fundamental Index ETFs | Annual Report7

Schwab Fundamental U.S. Broad Market Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	1,690
Weighted Average Market Cap (millions)	$262,071
Price/Earnings Ratio (P/E)	14.6
Price/Book Ratio (P/B)	2.3
Portfolio Turnover Rate	12%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.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

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.

This list is not a recommendation of any security by the investment adviser.

8Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Large Company Index ETF as of February 28, 2023

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.

Performance. For the 12-month reporting period ended February 28, 2023, the fund generally tracked the index. The fund’s market price return was -1.66% and its NAV return was -1.61% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -1.33% 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 the most from the total return of the fund. Stocks in the information technology sector represented an average weight of approximately 16% of the fund’s investments and returned approximately -11% for the reporting period. One example from this sector is Intel Corp., which designs, manufactures, and sells computer components and related products. The fund’s holdings of Intel Corp. represented an average weight of approximately 1% and returned approximately -45% for the reporting period.

The energy sector contributed the most to the total return of the fund. Stocks in the energy sector represented an average weight of approximately 10% of the fund’s investments and returned approximately 32% for the reporting period. One example from this sector is Exxon Mobil Corp., which operates petroleum and petro chemicals businesses. The fund’s holdings of Exxon Mobil Corp. represented an average weight of approximately 3% of the fund’s investments and returned approximately 45% for the reporting period.

The health care sector also contributed to the total return of the fund, representing an average weight of approximately 13% of the fund’s investments and returning approximately 4% for the reporting period.

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

Schwab Fundamental Index ETFs | Annual Report9

Schwab Fundamental U.S. Large Company Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-1.66%	10.54%	10.88%
NAV Return2	-1.61%	10.55%	10.89%
Russell RAFITM US Large Company Index	-1.33%	10.81%	11.18%
Russell 1000® Index	-8.21%	9.68%	11.33%
ETF Category: Morningstar Large Value3	-2.03%	7.53%	N/A
Fund Expense Ratio4: 0.25%

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.

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.

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.

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.

As stated in the prospectus.

10Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Large Company Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	725
Weighted Average Market Cap (millions)	$283,890
Price/Earnings Ratio (P/E)	14.6
Price/Book Ratio (P/B)	2.3
Portfolio Turnover Rate	12%2

Sector Weightings % of Investments3

Top Equity Holdings % of Net Assets4

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index ETFs | Annual Report11

Schwab Fundamental U.S. Small Company Index ETF as of February 28, 2023

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.

Performance. For the 12-month reporting period ended February 28, 2023, the fund generally tracked the index. The fund’s market price return was -2.28% and the fund’s NAV return was -2.13% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -2.00% 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 real estate sector detracted the most from the total return of the fund. Stocks from the real estate sector represented an average weight of approximately 9% of the fund’s investments and returned approximately -19% for the reporting period. One example from this sector is Uniti Group, Inc., which provides wireless infrastructure solutions for the communications industry. The fund’s holdings of Uniti Group, Inc. represented an average weight of less than 1% of the fund’s investments and returned approximately -55% for the reporting period.

The communications services sector also detracted from the total return of the fund, representing an average weight of approximately 4% of the fund’s investments and returning approximately -24% for the reporting period.

The energy sector contributed the most to the total return of the fund. Stocks in the energy sector represented an average weight of approximately 7% of the fund’s investments and returned approximately 43% for the reporting period. One example from this sector is Scorpio Tankers, Inc., a shipping company that provides seaborne transportation of crude oil and other petroleum products. The fund’s holdings of Scorpio Tankers, Inc. represented an average weight of less than 1% of the fund’s investments and returned approximately 252% for the reporting period.

The industrials sector also contributed to the total return of the fund, representing an average weight of approximately 19% of the fund’s investments and returning approximately 4% for the reporting period.

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

12Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Small Company Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-2.28%	8.27%	9.26%
NAV Return2	-2.13%	8.29%	9.27%
Russell RAFITM US Small Company Index	-2.00%	8.47%	9.51%
Russell 2000® Index	-6.02%	6.01%	7.85%
ETF Category: Morningstar Small Blend3	-3.37%	6.85%	N/A
Fund Expense Ratio4: 0.25%

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.

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.

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.

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.

As stated in the prospectus.

Schwab Fundamental Index ETFs | Annual Report13

Schwab Fundamental U.S. Small Company Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	967
Weighted Average Market Cap (millions)	$5,043
Price/Earnings Ratio (P/E)	13.5
Price/Book Ratio (P/B)	1.8
Portfolio Turnover Rate	24%2

Sector Weightings % of Investments3

Top Equity Holdings % of Net Assets4

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

This list is not a recommendation of any security by the investment adviser.

14Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental International Large Company Index ETF as of February 28, 2023

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 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, 2023, U.S. and international equity markets lost ground as inflation spiked, interest rates rose, and economic growth around the world slowed. The ongoing war between Russia and Ukraine and the continuing, albeit uneven, fallout from the COVID-19 pandemic weighed on economies and markets around the world. Among U.S. and international stocks, both large-cap stocks and small-cap stocks lost ground, and growth stocks underperformed value stocks. The U.S. dollar rose against a basket of foreign currencies through October 2022, but generally declined through the remainder of the reporting period, ending it slightly higher than it began.

Performance. For the 12-month reporting period ended February 28, 2023, the fund generally tracked the index. The fund’s market price return was -0.80% and its NAV return was -0.91% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -0.87%1 during the same period.

Contributors and Detractors. Stocks from France contributed the most to the total return of the fund. French stocks represented an average weight of approximately 8% of the fund’s investments and returned approximately 10% in U.S. dollar terms for the reporting period. One example from this market is TotalEnergies SE, which produces, transports, and supplies crude oil, natural gas, and low carbon electricity, as well as refines petrochemical products. The fund’s holdings of TotalEnergies SE represented an average weight of approximately 1% of the fund’s investments and returned approximately 30% in U.S. dollar terms for the reporting period.

Stocks from the United Kingdom also contributed to the total return of the fund, representing an average weight of approximately 17% of the fund’s investments and returning approximately 5% in U.S. dollar terms for the reporting period.

Stocks from Japan detracted the most from the total return of the fund. Japanese stocks represented an average weight of approximately 26% of the fund’s investments and returned approximately -5% in U.S. dollar terms for the reporting period. One example from this market is Toyota Motor Corp, which manufactures, sells, leases, and repairs passenger cars, trucks, buses, and their related parts worldwide. The fund’s holdings of Toyota Motor Corp. represented an average weight of approximately 1% of the fund’s investments and returned approximately -24% in U.S. dollar terms for the reporting period.

Stocks from the Republic of Korea also detracted from the total return of the fund, representing an average weight of approximately 6% of the fund’s investments and retuning approximately -16% in U.S. dollar terms for the reporting period.

Management views and portfolio holdings 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.

Schwab Fundamental Index ETFs | Annual Report15

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-0.80%	3.62%	4.84%
NAV Return2	-0.91%	3.62%	4.87%
Russell RAFITM Developed ex US Large Company Index (Net)3	-0.87%	3.65%	4.98%
MSCI EAFE® Index (Net)3	-3.14%	2.64%	4.18%
ETF Category: Morningstar Foreign Large Value4	-1.89%	1.82%	N/A
Fund Expense Ratio5: 0.25%

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.

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.

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.

The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.

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.

As stated in the prospectus.

16Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental International Large Company Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	941
Weighted Average Market Cap (millions)	$63,043
Price/Earnings Ratio (P/E)	9.9
Price/Book Ratio (P/B)	1.1
Portfolio Turnover Rate	15%2

Sector Weightings % of Investments1

Top Equity Holdings % of Net Assets4

Country Weightings % of Investments5

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

Amount is less than 0.05%.

This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index ETFs | Annual Report17

Schwab Fundamental International Small Company Index ETF as of February 28, 2023

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.

Performance. For the 12-month reporting period ended February 28, 2023, the fund generally tracked the index. The fund’s market price return was -6.99% and its NAV return was -6.91% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -6.63%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 34% of the fund’s investments and returned approximately -6% in U.S. dollar terms for the reporting period. One example from this market is Nichi-iko Pharmaceutical Co., Ltd., which manufactures and sells prescription drugs. The fund’s holdings of Nichi-iko Pharmaceutical Co., Ltd. represented an average weight of less than 1% of the fund’s investments and returned approximately -95% in U.S. dollar terms for the reporting period.

Stocks from the Republic of Korea also detracted from the total return of the fund, representing an average weight of approximately 8% of the fund’s investments and returning approximately -10% in U.S. dollar terms for the reporting period.

Stocks from Denmark contributed the most to the total return of the fund. Danish stocks represented an average weight of approximately 2% of the fund’s investments and returned approximately 10% in U.S. dollar terms for the reporting period. One example from this market is D/S Norden A/S, an international shipping company. The fund’s holdings of D/S Norden A/S represented an average weight of less than 1% of the fund’s investments and returned approximately 242% in U.S. dollar terms for the reporting period.

Stocks from Finland also contributed to the total return of the fund, representing an average weight of approximately 1% of the fund’s investments and returning approximately 3% in U.S. dollar terms for the reporting period.

Management views and portfolio holdings 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.

18Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-6.99%	0.44%	4.84%
NAV Return2	-6.91%	0.43%	4.88%
Russell RAFITM Developed ex US Small Company Index (Net)3	-6.63%	0.64%	5.23%
S&P Developed ex-U.S. Small Cap Index (Net)3	-9.26%	0.72%	4.96%
ETF Category: Morningstar Foreign Small/Mid Value4	-2.44%	1.21%	N/A
Fund Expense Ratio5: 0.39%

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 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.

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.

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.

The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.

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.

As stated in the prospectus.

Schwab Fundamental Index ETFs | Annual Report19

Schwab Fundamental International Small Company Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	1,770
Weighted Average Market Cap (millions)	$3,381
Price/Earnings Ratio (P/E)	10.4
Price/Book Ratio (P/B)	1.0
Portfolio Turnover Rate	30%2

Sector Weightings % of Investments1

Top Equity Holdings % of Net Assets3

Country Weightings % of Investments4

Portfolio holdings may have changed since the report date.

Source of Sector Classification: S&P and MSCI.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

This list is not a recommendation of any security by the investment adviser.

20Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental Emerging Markets Large Company Index ETF as of February 28, 2023

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.

Performance. For the 12-month reporting period ended February 28, 2023, the fund’s market price return was -10.66% and its NAV return was -8.72% (for an explanation of the market price and NAV returns, please refer to footnote 2 on the following page). The index returned -12.26%1 during the same period. Stocks from Russia were the largest contributors to the fund’s outperformance relative to the index. Russian securities were removed from the index in March 2022. Some of these securities were sold by the fund during the reporting period and some are illiquid and still held by the fund at fair value2 prices.

Contributors and Detractors. Stocks from Turkey contributed the most to the total return of the fund. Turkish stocks represented an average weight of approximately 2% of the fund’s investments and returned approximately 97% in U.S. dollar terms for the reporting period. One example from this market is Turk Hava Yollari AO, also known as Turkish Airlines, which provides passenger and cargo air transportation services. The fund’s holdings of Turk Hava Yollari AO represented an average weight of less than 1% of the fund’s investments and returned approximately 311% in U.S. dollar terms for the reporting period.

Stocks from Mexico also contributed to the total return of the fund, representing an average weight of approximately 4% of the fund’s investments and returning approximately 12% in U.S. dollar terms for the reporting period.

Stocks from China detracted the most from the total return of the fund. Chinese stocks represented an average weight of approximately 32% of the fund’s investments and returned approximately -9% in U.S. dollar terms for the reporting period. One example from this sector is China Construction Bank Corp., which provides banking services. The fund’s Class H holdings of China Construction Bank Corp. represented an average weight of approximately 4% of the fund’s investments and returned approximately -12% in U.S. dollar terms for the reporting period.

Stocks from Taiwan also detracted from the total return of the fund, representing an average weight of approximately 18% of the fund’s investments and returning approximately -10% in U.S. dollar terms for the reporting period.

Management views and portfolio holdings 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.

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).

Schwab Fundamental Index ETFs | Annual Report21

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of February 28, 2023

Performance of Hypothetical $10,000 Investment (August 15, 2013 – February 28, 2023)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	-10.66%	-0.32%	2.87%
NAV Return2	-8.72%	-0.45%	2.89%
Russell RAFITM Emerging Markets Large Company Index (Net)3	-12.26%	-0.20%	3.31%
MSCI Emerging Markets Index (Net)3	-15.28%	-1.87%	2.33%
ETF Category: Morningstar Diversified Emerging Markets4	-13.62%	-1.43%	N/A
Fund Expense Ratio5: 0.39%

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.

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.

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.

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.

The net version of the index reflects reinvested dividends net of withholding taxes but reflects no deductions for expenses or other taxes.

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.

As stated in the prospectus.

22Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental Emerging Markets Large Company Index ETF

Performance and Fund Facts as of February 28, 2023 (continued)

Statistics1

Number of Holdings	348
Weighted Average Market Cap (millions)	$77,256
Price/Earnings Ratio (P/E)	6.9
Price/Book Ratio (P/B)	1.2
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.

Source of Sector Classification: S&P and MSCI.

Excludes derivatives.

Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

This list is not a recommendation of any security by the investment adviser.

Schwab Fundamental Index ETFs | Annual Report23

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, 2022 and held through February 28, 2023.

Actual Return lines in the table below provide information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number given for your fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Return lines in the table below provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed return of 5% per year before expenses. Because the return used is not an actual return, it may not be used to estimate the actual ending account value or expenses you paid for the period.

You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, 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 9/1/22	ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 2/28/23	EXPENSES PAID DURING PERIOD 9/1/22-2/28/23 2
Schwab Fundamental U.S. Broad Market Index ETF
Actual Return	0.25%	$1,000.00	$1,049.60	$1.27
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	$1,046.90	$1.27
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	$1,080.40	$1.29
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	$1,128.80	$1.32
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	$1,085.90	$2.02
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	$1,016.20	$1.95
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 in the period, and divided by 365 days in the fiscal year.

24Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Broad Market Index ETF

Financial Statements

FINANCIAL HIGHLIGHTS

	3/1/22– 2/28/23	3/1/21– 2/28/22	3/1/20– 2/28/21	3/1/19– 2/29/20	3/1/18– 2/28/19
Per-Share Data
Net asset value at beginning of period	$56.34	$48.26	$37.17	$37.60	$36.95
Income (loss) from investment operations:
Net investment income (loss)1	1.08	0.98	0.92	0.94	0.84
Net realized and unrealized gains (losses)	(2.05)	8.04	11.13	(0.43)	0.62
Total from investment operations	(0.97)	9.02	12.05	0.51	1.46
Less distributions:
Distributions from net investment income	(1.04)	(0.94)	(0.96)	(0.94)	(0.81)
Net asset value at end of period	$54.33	$56.34	$48.26	$37.17	$37.60
Total return	(1.63%)	18.80%	33.35%	1.25%	3.98%
Ratios/Supplemental Data
Ratios to average net assets:
Total expenses	0.25%2	0.25%	0.25%	0.25%	0.25%
Net investment income (loss)	2.02%	1.79%	2.36%	2.38%	2.26%
Portfolio turnover rate3	12%	13%	14%	13%	11%
Net assets, end of period (x 1,000)	$486,280	$425,341	$284,726	$262,018	$276,382

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.

See financial notes

Schwab Fundamental Index ETFs | Annual Report25

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of February 28, 2023

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 [email protected]. 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 *	3,135	133,927
American Axle & Manufacturing Holdings, Inc. *	7,570	66,616
Aptiv plc *	3,577	415,934
Autoliv, Inc.	2,258	209,046
BorgWarner, Inc.	8,151	409,832
Cooper-Standard Holdings, Inc. *	7,709	122,958
Dana, Inc.	7,760	122,918
Dorman Products, Inc. *	411	38,235
Ford Motor Co.	133,141	1,607,012
Fox Factory Holding Corp. *	226	26,555
General Motors Co.	70,735	2,740,274
Gentex Corp.	5,763	164,534
Gentherm, Inc. *	548	34,803
Harley-Davidson, Inc.	3,711	176,458
LCI Industries	573	64,640
Lear Corp.	2,805	391,718
Modine Manufacturing Co. *	2,314	56,485
Patrick Industries, Inc.	653	47,571
Standard Motor Products, Inc.	835	32,540
Stoneridge, Inc. *	1,050	25,000
Tesla, Inc. *	1,314	270,303
The Goodyear Tire & Rubber Co. *	23,599	268,085
Thor Industries, Inc.	1,884	171,425
Visteon Corp. *	1,189	198,611
Winnebago Industries, Inc.	801	50,912
		7,846,392

Banks 7.4%
1st Source Corp.	262	13,053
Ameris Bancorp	558	26,711
Associated Banc-Corp.	2,934	67,922
Atlantic Union Bankshares Corp.	887	33,227
Axos Financial, Inc. *	638	30,235
Bank of America Corp.	142,609	4,891,489
Bank of Hawaii Corp.	643	48,135
Bank OZK	1,553	71,485
BankUnited, Inc.	1,909	67,617
Banner Corp.	557	35,080
BOK Financial Corp.	396	41,453
Brookline Bancorp, Inc.	1,196	15,500
Cadence Bank	1,739	46,188
Capitol Federal Financial, Inc.	2,830	23,744
Cathay General Bancorp	1,035	44,422
Central Pacific Financial Corp.	671	15,050
Citigroup, Inc.	103,957	5,269,580
Citizens Financial Group, Inc.	12,031	502,415
City Holding Co.	168	16,498
Columbia Banking System, Inc.	1,224	36,389
Comerica, Inc.	3,340	234,134
Commerce Bancshares, Inc.	989	65,422
Community Bank System, Inc.	516	31,502

SECURITY	NUMBER OF SHARES	VALUE ($)
Credicorp Ltd.	1,456	185,523
Cullen/Frost Bankers, Inc.	533	70,260
Customers Bancorp, Inc. *	351	10,811
CVB Financial Corp.	1,216	29,099
Eagle Bancorp, Inc.	466	20,415
East West Bancorp, Inc.	1,461	111,343
Eastern Bankshares, Inc.	691	10,835
Enterprise Financial Services Corp.	298	16,229
Essent Group Ltd.	1,262	54,203
F.N.B. Corp.	5,591	79,784
Federal Agricultural Mortgage Corp., Class C	121	17,165
Fifth Third Bancorp	13,236	480,467
First BanCorp	2,060	29,891
First Bancorp/Southern Pines NC	318	13,194
First Busey Corp.	758	18,298
First Citizens BancShares, Inc., Class A	86	63,103
First Commonwealth Financial Corp.	1,336	21,389
First Financial Bancorp	1,414	34,841
First Financial Bankshares, Inc.	617	22,632
First Hawaiian, Inc.	2,554	69,852
First Horizon Corp.	4,604	114,041
First Interstate BancSystem, Inc., Class A	965	34,296
First Merchants Corp.	631	25,820
First Republic Bank	882	108,495
Fulton Financial Corp.	2,469	42,467
Glacier Bancorp, Inc.	815	38,615
Hancock Whitney Corp.	1,117	54,867
Hanmi Financial Corp.	548	12,944
Heartland Financial USA, Inc.	456	22,545
Heritage Financial Corp.	481	13,405
Hilltop Holdings, Inc.	1,375	45,609
HomeStreet, Inc.	401	10,117
Hope Bancorp, Inc.	2,491	31,910
Huntington Bancshares, Inc.	19,389	297,039
Independent Bank Corp.	296	23,585
Independent Bank Group, Inc.	301	17,717
International Bancshares Corp.	783	37,999
JPMorgan Chase & Co.	64,967	9,313,019
Kearny Financial Corp.	1,213	12,178
KeyCorp	17,069	312,192
Lakeland Financial Corp.	182	13,035
M&T Bank Corp.	3,476	539,788
MGIC Investment Corp.	6,689	92,041
Mr Cooper Group, Inc. *	425	19,733
National Bank Holdings Corp., Class A	283	11,459
NBT Bancorp, Inc.	585	23,745
New York Community Bancorp, Inc.	16,709	148,376
NMI Holdings, Inc., Class A *	853	19,909
Northwest Bancshares, Inc.	1,838	25,401
OceanFirst Financial Corp.	661	15,679
OFG Bancorp	728	22,146
Old National Bancorp	4,580	80,929
Pacific Premier Bancorp, Inc.	733	23,764
PacWest Bancorp	2,676	74,259
Park National Corp.	170	21,721
Pathward Financial, Inc.	375	19,129

See financial notes

26Schwab Fundamental Index ETFs | Annual Report

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of February 28, 2023 (continued)

SECURITY	NUMBER OF SHARES	VALUE ($)
PennyMac Financial Services, Inc.	761	46,018
Pinnacle Financial Partners, Inc.	549	40,675
Popular, Inc.	1,604	114,526
Prosperity Bancshares, Inc.	963	70,771
Provident Financial Services, Inc.	1,130	26,385
Radian Group, Inc.	4,210	89,883
Regions Financial Corp.	14,786	344,809
Renasant Corp.	760	27,345
S&T Bancorp, Inc.	649	24,182
Sandy Spring Bancorp, Inc.	476	15,684
Signature Bank (a)	474	54,534
Simmons First National Corp., Class A	1,737	38,613
Southside Bancshares, Inc.	431	16,460
SouthState Corp.	539	43,486
SVB Financial Group *(b)	351	101,127
Synovus Financial Corp.	2,181	91,188
Texas Capital Bancshares, Inc. *	708	46,891
The Bank of N.T. Butterfield & Son Ltd.	840	30,366
The PNC Financial Services Group, Inc.	7,587	1,198,139
Tompkins Financial Corp.	191	14,285
Towne Bank	825	25,022
TriCo Bancshares	291	14,698
Truist Financial Corp.	15,874	745,284
Trustmark Corp.	1,127	33,134
U.S Bancorp	31,465	1,501,824
UMB Financial Corp.	483	43,789
Umpqua Holdings Corp.	2,483	43,850
United Bankshares, Inc.	1,450	59,116
United Community Banks, Inc.	909	30,097
Valley National Bancorp	5,062	58,618
Walker & Dunlop, Inc.	451	39,341
Washington Federal, Inc.	1,617	56,708
Washington Trust Bancorp, Inc.	259	10,878
Webster Financial Corp.	1,274	67,675
Wells Fargo & Co.	126,123	5,898,773
WesBanco, Inc.	815	29,462
Westamerica BanCorp	274	15,103
Western Alliance Bancorp	659	48,924
Wintrust Financial Corp.	681	62,740
WSFS Financial Corp.	503	25,105
Zions Bancorp NA	3,595	181,979
		36,134,046

Capital Goods 8.1%
3D Systems Corp. *	1,181	11,562
3M Co.	12,307	1,325,956
A.O. Smith Corp.	2,022	132,704
AAON, Inc.	341	31,017
AAR Corp. *	956	51,997
Acuity Brands, Inc.	840	162,926
Advanced Drainage Systems, Inc.	265	23,513
AECOM	2,874	248,199
AerCap Holdings N.V. *	2,599	162,282
Aerojet Rocketdyne Holdings, Inc. *	780	43,945
AGCO Corp.	1,376	193,755
Air Lease Corp.	2,387	103,309
Alamo Group, Inc.	182	33,195
Albany International Corp., Class A	395	39,863
Allegion plc	967	108,991
Allison Transmission Holdings, Inc.	4,383	208,192
Altra Industrial Motion Corp.	931	57,284
American Woodmark Corp. *	827	42,160
AMETEK, Inc.	1,784	252,543
API Group Corp. *	2,072	48,671
Apogee Enterprises, Inc.	896	41,001
Applied Industrial Technologies, Inc.	634	90,573
Arcosa, Inc.	1,188	71,993

SECURITY	NUMBER OF SHARES	VALUE ($)
Argan, Inc.	498	19,352
Armstrong World Industries, Inc.	684	53,933
Astec Industries, Inc.	824	37,105
Astronics Corp. *	1,462	22,281
Atkore, Inc. *	335	48,917
Axon Enterprise, Inc. *	96	19,230
AZZ, Inc.	769	31,260
Barnes Group, Inc.	1,541	64,938
Beacon Roofing Supply, Inc. *	1,193	77,545
Boise Cascade Co.	1,321	91,294
BWX Technologies, Inc.	1,413	86,348
Carlisle Cos., Inc.	729	188,242
Carrier Global Corp.	14,494	652,665
Caterpillar, Inc.	7,764	1,859,866
Columbus McKinnon Corp.	581	21,567
Comfort Systems USA, Inc.	523	76,065
Construction Partners, Inc., Class A *	444	12,010
Core & Main, Inc., Class A *	743	17,319
Crane Holdings Co.	747	89,476
CSW Industrials, Inc.	116	16,421
Cummins, Inc.	3,561	865,608
Curtiss-Wright Corp.	636	111,166
Deere & Co.	2,344	982,699
Donaldson Co., Inc.	1,895	119,859
Douglas Dynamics, Inc.	494	18,421
Dover Corp.	1,820	272,818
DXP Enterprises, Inc. *	699	20,208
Dycom Industries, Inc. *	825	69,473
Eaton Corp. plc	6,623	1,158,561
EMCOR Group, Inc.	1,416	236,784
Emerson Electric Co.	9,328	771,519
Encore Wire Corp.	347	66,974
Enerpac Tool Group Corp.	636	17,127
EnerSys	1,086	98,489
EnPro Industries, Inc.	331	35,583
Esab Corp.	586	34,369
ESCO Technologies, Inc.	345	32,151
Evoqua Water Technologies Corp. *	614	29,816
Fastenal Co.	5,784	298,223
Federal Signal Corp.	948	50,026
Flowserve Corp.	3,062	106,221
Fluor Corp. *	4,973	182,360
Fortive Corp.	2,347	156,451
Fortune Brands Innovations, Inc.	3,062	189,691
Franklin Electric Co., Inc.	565	53,997
Gates Industrial Corp. plc *	2,327	32,671
GATX Corp.	888	96,872
Generac Holdings, Inc. *	361	43,324
General Dynamics Corp.	4,471	1,018,986
General Electric Co.	28,630	2,425,247
Gibraltar Industries, Inc. *	700	37,387
GMS, Inc. *	998	60,589
Graco, Inc.	1,387	96,452
GrafTech International Ltd.	7,664	43,302
Granite Construction, Inc.	1,830	79,056
Great Lakes Dredge & Dock Corp. *	1,592	9,130
Griffon Corp.	967	35,266
H&E Equipment Services, Inc.	1,086	60,273
HEICO Corp.	196	32,452
HEICO Corp., Class A	330	42,950
Herc Holdings, Inc.	427	61,313
Hexcel Corp.	1,806	131,748
Hillenbrand, Inc.	1,089	51,335
Honeywell International, Inc.	9,521	1,823,081
Howmet Aerospace, Inc.	6,091	256,918
Hubbell, Inc.	773	194,440
Huntington Ingalls Industries, Inc.	1,068	229,834
Hyster-Yale Materials Handling, Inc.	767	29,844

See financial notes

Schwab Fundamental Index ETFs | Annual Report27

Schwab Fundamental U.S. Broad Market Index ETF

Portfolio Holdings as of February 28, 2023 (continued)

SECURITY	NUMBER OF SHARES	VALUE ($)
IDEX Corp.	648	145,787
Illinois Tool Works, Inc.	3,874	903,262
Ingersoll Rand, Inc.	1,792	104,061
ITT, Inc.	1,269	115,339
JELD-WEN Holding, Inc. *	4,850	63,778
John Bean Technologies Corp.	370	41,029
Johnson Controls International plc	11,479	719,963
Kadant, Inc.	103	22,110
Kaman Corp.	1,176	30,576
Kennametal, Inc.	2,322	65,782
Kratos Defense & Security Solutions, Inc. *	1,228	15,534
L3Harris Technologies, Inc.	2,445	516,360
Lennox International, Inc.	441	112,380
Lincoln Electric Holdings, Inc.	815	136,863
Lindsay Corp.	115	17,306
Lockheed Martin Corp.	3,257	1,544,665
Masco Corp.	4,310	225,973
Masonite International Corp. *	707	62,782
MasTec, Inc. *	1,375	134,365
Masterbrand, Inc. *	3,081	30,009
Maxar Technologies, Inc.	1,292	66,538
McGrath RentCorp	379	38,976
MDU Resources Group, Inc.	5,118	163,008
Mercury Systems, Inc. *	439	22,977
Moog, Inc., Class A	826	81,460
MRC Global, Inc. *	4,327	48,462
MSC Industrial Direct Co., Inc., Class A	1,312	110,890
Mueller Industries, Inc.	1,263	93,424
Mueller Water Products, Inc., Class A	2,970	41,194
MYR Group, Inc. *	362	43,661
National Presto Industries, Inc.	219	15,030
Nordson Corp.	426	93,567
Northrop Grumman Corp.	1,861	863,709
NOW, Inc. *	5,715	73,438
nVent Electric plc	2,824	129,452
Oshkosh Corp.	2,085	185,961
Otis Worldwide Corp.	2,840	240,321
Owens Corning	2,522	246,626
PACCAR, Inc.	10,001	722,072
Parker-Hannifin Corp.	1,567	551,349
Parsons Corp. *	559	25,172
Pentair plc	3,068	171,624
PGT Innovations, Inc. *	946	20,008
Primoris Services Corp.	2,432	66,880
Proto Labs, Inc. *	560	17,606
Quanex Building Products Corp.	1,114	28,908
Quanta Services, Inc.	2,013	324,898
Raytheon Technologies Corp.	13,390	1,313,425
RBC Bearings, Inc. *	155	35,621
Regal Rexnord Corp.	912	143,768
Resideo Technologies, Inc. *	3,980	72,993
REV Group, Inc.	1,272	14,870
Rockwell Automation, Inc.	1,272	375,151
Rush Enterprises, Inc., Class A	1,469	83,263
Sensata Technologies Holding plc	2,695	136,313
Simpson Manufacturing Co., Inc.	553	59,647
SiteOne Landscape Supply, Inc. *	329	48,804
Snap-on, Inc.	1,027	255,394
Spirit AeroSystems Holdings, Inc., Class A	5,131	175,378
SPX Technologies, Inc. *	421	29,655
Standex International Corp.	240	27,763
Stanley Black & Decker, Inc.	3,953	338,416
Sterling Infrastructure, Inc. *	515	19,807
Tennant Co.	369	26,133
Terex Corp.	1,763	104,387
Textainer Group Holdings Ltd.	455	14,979
Textron, Inc.	4,783	346,911
The AZEK Co., Inc. *	743	17,899

SECURITY	NUMBER OF SHARES	VALUE ($)
The Boeing Co. *	10,892	2,195,283
The Gorman-Rupp Co.	574	15,992
The Greenbrier Cos., Inc.	1,933	62,069
The Manitowoc Co., Inc. *	2,268

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