Schwab Capital Trust
Schwab Fundamental Global Real Estate Index Fund
Portfolio Holdings as of May 31, 2025 (Unaudited)
 
SECURITY
NUMBER
OF SHARES
VALUE ($)
COMMON STOCKS 99.3% OF NET ASSETS
 
Australia 3.4%
Charter Hall Group
14,685
172,173
Cromwell Property Group
145,213
32,773
Dexus
40,486
182,850
Goodman Group
13,909
295,013
GPT Group
56,081
173,645
Mirvac Group
236,200
351,913
Region RE Ltd.
44,981
68,750
Scentre Group
215,119
509,338
Stockland
121,566
428,136
Vicinity Ltd.
191,739
304,521
 
2,519,112
 
Belgium 0.4%
Aedifica SA
949
71,738
Cofinimmo SA
1,558
134,230
Warehouses De Pauw CVA
2,981
72,725
 
278,693
 
Brazil 0.1%
Cyrela Brazil Realty SA Empreendimentos e
Participacoes
19,000
82,950
 
Canada 2.4%
Allied Properties Real Estate Investment
Trust
8,567
98,508
Altus Group Ltd.
305
12,112
Artis Real Estate Investment Trust
8,975
47,022
Boardwalk Real Estate Investment Trust
809
41,306
Canadian Apartment Properties REIT
5,770
188,192
Choice Properties Real Estate Investment
Trust
9,450
103,083
Colliers International Group, Inc.
806
97,224
Crombie Real Estate Investment Trust
7,988
86,204
CT Real Estate Investment Trust
3,218
37,307
Dream Industrial Real Estate Investment
Trust
6,249
50,908
First Capital Real Estate Investment Trust
11,964
154,743
FirstService Corp.
835
146,362
Granite Real Estate Investment Trust
1,324
67,823
H&R Real Estate Investment Trust
26,072
198,150
Killam Apartment Real Estate Investment
Trust
4,103
58,181
NorthWest Healthcare Properties Real Estate
Investment Trust
15,749
55,314
RioCan Real Estate Investment Trust
19,749
249,534
SmartCentres Real Estate Investment Trust
5,702
107,446
 
1,799,419
 
China 8.2%
Agile Group Holdings Ltd. *
2,947,000
160,021
A-Living Smart City Services Co. Ltd.
249,000
88,025
C&D International Investment Group Ltd.
60,719
108,669
SECURITY
NUMBER
OF SHARES
VALUE ($)
China Merchants Shekou Industrial Zone
Holdings Co. Ltd., A Shares
53,300
64,020
China Resources Land Ltd.
363,500
1,177,469
China Resources Mixc Lifestyle Services Ltd.
2,800
13,234
China Vanke Co. Ltd., A Shares *
416,900
382,651
China Vanke Co. Ltd., H Shares *
755,100
490,770
CIFI Holdings Group Co. Ltd. *(a)
4,468,000
138,457
Country Garden Services Holdings Co. Ltd.
334,900
284,064
Gemdale Corp., A Shares
155,800
82,930
Greenland Holdings Corp. Ltd., A Shares *
204,500
47,078
Greentown China Holdings Ltd.
183,500
221,382
Greentown Service Group Co. Ltd.
118,000
62,516
Guangzhou R&F Properties Co. Ltd.,
H Shares *
1,832,622
227,220
Hopson Development Holdings Ltd. *
324,000
125,260
KE Holdings, Inc., ADR
21,313
393,438
Longfor Group Holdings Ltd.
620,500
770,737
Midea Real Estate Holding Ltd. *
71,800
34,669
Onewo, Inc., H Shares
16,400
42,149
Poly Developments & Holdings Group Co.
Ltd., A Shares
221,200
248,379
Red Star Macalline Group Corp. Ltd.,
H Shares *
67,600
11,922
Seazen Group Ltd. *
1,390,000
341,860
Seazen Holdings Co. Ltd., A Shares *
34,500
60,046
Shenzhen Overseas Chinese Town Co. Ltd.,
A Shares *
229,100
75,130
Shui On Land Ltd.
1,365,500
107,712
Sunac China Holdings Ltd. *(a)
1,897,000
332,781
Zhuhai Huafa Properties Co. Ltd., A Shares
30,800
20,910
 
6,113,499
 
France 2.5%
Altarea SCA
312
36,428
Carmila SA *
4,047
85,769
Covivio SA
2,992
179,519
Gecina SA
2,130
234,451
ICADE
5,581
153,228
Klepierre SA
9,743
381,415
Mercialys SA
6,591
82,804
Nexity SA *
18,609
211,631
Pierre Et Vacances SA *
7,119
11,578
Unibail-Rodamco-Westfield *
4,947
469,174
 
1,845,997
 
Germany 1.9%
LEG Immobilien SE
2,346
199,188
TAG Immobilien AG
9,930
167,860
Vonovia SE
33,009
1,081,524
 
1,448,572
 
Guernsey 0.1%
Sirius Real Estate Ltd.
35,245
45,380
 
Hong Kong 11.0%
China Jinmao Holdings Group Ltd.
2,563,000
347,645
China Overseas Grand Oceans Group Ltd.
741,000
160,889
  
1
Schwab Fundamental Global Real Estate Index Fund
Portfolio Holdings (Unaudited) continued
SECURITY
NUMBER
OF SHARES
VALUE ($)
China Overseas Land & Investment Ltd.
856,500
1,431,001
CK Asset Holdings Ltd.
185,950
768,112
Fortune Real Estate Investment Trust
109,000
62,078
Hang Lung Group Ltd.
130,000
186,438
Hang Lung Properties Ltd.
149,697
117,892
Henderson Land Development Co. Ltd.
68,866
214,922
Hongkong Land Holdings Ltd.
71,727
370,520
Hysan Development Co. Ltd.
53,500
87,903
Jiayuan International Group Ltd. *(b)
534,000
0
Kerry Properties Ltd.
101,500
243,344
Link REIT
98,400
520,756
New World Development Co. Ltd. *(a)
712,460
433,121
Poly Property Group Co. Ltd.
865,000
157,011
Shanghai Industrial Holdings Ltd.
116,000
184,604
Shenzhen Investment Ltd.
700,000
66,807
Shinsun Holdings Group Co. Ltd. *(b)
1,290,000
0
Sino Land Co. Ltd.
182,204
183,688
Sun Hung Kai Properties Ltd.
126,842
1,362,495
Swire Pacific Ltd., A Shares
55,500
472,774
Swire Pacific Ltd., B Shares
105,000
140,959
Swire Properties Ltd.
54,800
120,057
Wharf Holdings Ltd.
51,000
135,414
Wharf Real Estate Investment Co. Ltd.
105,400
262,822
Yuexiu Property Co. Ltd.
323,359
179,928
 
8,211,180
 
Israel 0.5%
Alony Hetz Properties & Investments Ltd.
8,088
68,584
Ashtrom Group Ltd.
2,729
44,172
Azrieli Group Ltd.
762
58,264
Elco Ltd.
1,394
70,059
G City Ltd.
15,293
53,793
Melisron Ltd.
463
43,283
Mivne Real Estate KD Ltd.
19,301
59,006
 
397,161
 
Japan 11.7%
Activia Properties, Inc.
84
67,076
Advance Residence Investment Corp.
84
86,306
Aeon Mall Co. Ltd.
10,800
215,026
AEON REIT Investment Corp.
92
79,927
Daito Trust Construction Co. Ltd.
6,970
785,128
Daiwa House REIT Investment Corp.
82
136,494
Daiwa Office Investment Corp.
26
54,458
Daiwa Securities Living Investments Corp.
81
52,919
Frontier Real Estate Investment Corp.
100
57,245
GLP J-Reit
123
108,501
Heiwa Real Estate Co. Ltd.
1,300
40,148
Hulic Co. Ltd.
29,000
293,629
Industrial & Infrastructure Fund Investment
Corp.
77
63,048
Invincible Investment Corp.
127
54,042
Japan Excellent, Inc.
61
55,360
Japan Hotel REIT Investment Corp.
103
53,377
Japan Logistics Fund, Inc.
85
54,013
Japan Metropolitan Fund Invest
287
196,470
Japan Prime Realty Investment Corp.
36
89,821
Japan Real Estate Investment Corp.
243
197,297
Japan Wool Textile Co. Ltd.
8,200
84,954
KDX Realty Investment Corp.
77
81,122
Leopalace21 Corp.
4,500
20,235
Mitsubishi Estate Co. Ltd.
70,900
1,288,535
Mitsui Fudosan Co. Ltd.
153,000
1,465,355
Nippon Accommodations Fund, Inc.
73
58,259
Nippon Building Fund, Inc.
254
232,129
Nippon Prologis REIT, Inc.
189
100,978
Nomura Real Estate Holdings, Inc.
49,600
290,439
SECURITY
NUMBER
OF SHARES
VALUE ($)
Nomura Real Estate Master Fund, Inc.
187
187,774
NTT UD REIT Investment Corp.
61
55,610
Orix JREIT, Inc.
112
139,211
Relo Group, Inc.
5,900
70,350
Sekisui House Reit, Inc.
141
75,521
Starts Corp., Inc.
4,200
123,294
Sumitomo Realty & Development Co. Ltd.
18,600
712,508
Token Corp.
1,500
139,381
Tokyo Tatemono Co. Ltd.
15,000
265,675
Tokyu Fudosan Holdings Corp.
61,500
448,089
United Urban Investment Corp.
123
129,088
 
8,708,792
 
Jersey 0.3%
International Workplace Group PLC
87,317
226,906
 
Luxembourg 0.4%
Aroundtown SA *
72,505
230,530
Grand City Properties SA *
3,860
49,017
 
279,547
 
Mexico 0.6%
Corp. Inmobiliaria Vesta SAB de CV
3,494
10,073
FIBRA Macquarie Mexico
34,990
57,457
Fibra Uno Administracion SA de CV
240,162
337,906
Prologis Property Mexico SA de CV
4,424
16,936
 
422,372
 
Netherlands 0.4%
CTP NV
972
18,503
Eurocommercial Properties NV
2,540
79,069
NEPI Rockcastle NV *
25,185
193,679
 
291,251
 
Philippines 0.8%
Alliance Global Group, Inc.
465,000
69,506
Ayala Corp.
19,440
202,207
Ayala Land, Inc.
334,232
137,620
Megaworld Corp.
1,500,000
48,088
Robinsons Land Corp. *
61,500
14,391
SM Prime Holdings, Inc.
294,500
119,025
 
590,837
 
Singapore 1.4%
CapitaLand Ascendas REIT
102,888
211,148
CapitaLand Ascott Trust
99,180
65,682
CapitaLand Integrated Commercial Trust
119,875
194,170
City Developments Ltd.
39,800
149,121
Frasers Logistics & Commercial Trust
89,000
54,883
Mapletree Industrial Trust
52,444
78,443
Mapletree Logistics Trust
90,031
77,527
Mapletree Pan Asia Commercial Trust
77,627
71,075
UOL Group Ltd.
38,980
172,394
 
1,074,443
 
South Africa 0.8%
Fortress Real Estate Investments Ltd.,
Class B
41,417
46,539
Growthpoint Properties Ltd.
309,366
232,267
Hyprop Investments Ltd.
28,350
69,367
Redefine Properties Ltd.
578,818
150,639
2
  
Schwab Fundamental Global Real Estate Index Fund
Portfolio Holdings (Unaudited) continued
SECURITY
NUMBER
OF SHARES
VALUE ($)
Resilient REIT Ltd.
13,041
44,615
Vukile Property Fund Ltd.
43,737
48,774
 
592,201
 
Spain 0.4%
Inmobiliaria Colonial Socimi SA
12,618
87,859
Merlin Properties Socimi SA
14,668
181,724
 
269,583
 
Sweden 0.8%
Castellum AB
13,379
166,168
Corem Property Group AB, B Shares
42,315
22,494
Fabege AB
7,117
61,356
Fastighets AB Balder, B Shares *
10,813
75,815
Pandox AB
1,835
30,778
Sagax AB, B Shares
2,017
44,172
Samhallsbyggnadsbolaget i Norden AB
172,640
101,326
Wihlborgs Fastigheter AB
6,751
67,874
 
569,983
 
Switzerland 0.9%
Allreal Holding AG
606
138,702
Mobimo Holding AG
217
84,024
PSP Swiss Property AG
806
141,864
Swiss Prime Site AG
2,349
334,058
 
698,648
 
Taiwan 0.1%
Huaku Development Co. Ltd.
14,800
55,323
Ruentex Development Co. Ltd.
34,273
33,911
 
89,234
 
Thailand 0.6%
3BB Internet Infrastructure Fund *
354,600
64,756
Central Pattana PCL NVDR
80,900
111,740
Land & Houses PCL NVDR
754,111
92,250
Pruksa Holding PCL NVDR
155,800
20,788
Sansiri PCL NVDR
1,476,383
60,244
Supalai PCL NVDR
154,182
67,954
 
417,732
 
United Arab Emirates 1.3%
Aldar Properties PJSC
53,727
121,458
Emaar Development PJSC
38,687
141,081
Emaar Properties PJSC
207,283
742,270
 
1,004,809
 
United Kingdom 2.1%
Assura PLC
91,292
60,765
Big Yellow Group PLC
4,304
57,877
British Land Co. PLC
36,283
191,153
Cushman & Wakefield PLC *
20,407
204,682
Derwent London PLC
3,305
87,857
Grainger PLC
24,903
74,709
Land Securities Group PLC
31,743
271,058
LondonMetric Property PLC
18,178
49,355
Primary Health Properties PLC
42,174
57,164
Safestore Holdings PLC
6,821
60,432
Savills PLC
12,375
162,550
Segro PLC
19,366
182,122
SECURITY
NUMBER
OF SHARES
VALUE ($)
Tritax Big Box REIT PLC
36,969
73,251
UNITE Group PLC
5,803
67,449
 
1,600,424
 
United States 46.2%
Acadia Realty Trust
3,237
62,345
Agree Realty Corp.
1,260
94,878
Alexander & Baldwin, Inc.
4,761
85,270
Alexandria Real Estate Equities, Inc.
5,229
367,024
American Assets Trust, Inc.
2,671
53,260
American Healthcare REIT, Inc.
693
24,213
American Homes 4 Rent, Class A
6,281
237,736
American Tower Corp.
9,829
2,109,795
Americold Realty Trust, Inc.
11,367
188,351
Anywhere Real Estate, Inc. *
16,479
57,512
Apple Hospitality REIT, Inc.
12,767
147,970
AvalonBay Communities, Inc.
3,225
666,833
Brandywine Realty Trust
7,098
30,025
Brixmor Property Group, Inc.
11,353
288,480
Broadstone Net Lease, Inc.
5,496
87,441
BXP, Inc.
8,628
580,923
Camden Property Trust
2,908
341,661
CareTrust REIT, Inc.
1,926
55,392
CBRE Group, Inc., Class A *
13,747
1,718,650
Centerspace
174
11,092
Claros Mortgage Trust, Inc.
15,410
39,604
Compass, Inc., Class A *
29,111
172,046
COPT Defense Properties
5,357
147,050
CoStar Group, Inc. *
2,613
192,212
Cousins Properties, Inc.
6,957
195,283
Crown Castle, Inc.
15,754
1,580,914
CubeSmart
4,878
208,583
Curbline Properties Corp.
2,214
50,236
DiamondRock Hospitality Co.
13,634
104,164
Digital Realty Trust, Inc.
6,797
1,165,821
Diversified Healthcare Trust
12,531
39,222
Douglas Emmett, Inc.
12,559
178,715
Easterly Government Properties, Inc.
2,125
46,176
EastGroup Properties, Inc.
658
111,564
Elme Communities
4,073
65,412
Empire State Realty Trust, Inc., Class A
9,795
75,030
EPR Properties
3,635
202,433
Equinix, Inc.
1,411
1,254,125
Equity LifeStyle Properties, Inc.
3,513
223,321
Equity Residential
11,026
773,364
Essential Properties Realty Trust, Inc.
1,924
62,530
Essex Property Trust, Inc.
1,504
426,986
eXp World Holdings, Inc.
9,254
78,844
Extra Space Storage, Inc.
2,630
397,524
Federal Realty Investment Trust
2,415
230,584
First Industrial Realty Trust, Inc.
2,637
130,347
Four Corners Property Trust, Inc.
2,000
55,220
Gaming & Leisure Properties, Inc.
6,445
300,981
Global Net Lease, Inc.
11,965
92,848
Healthcare Realty Trust, Inc.
13,583
196,953
Healthpeak Properties, Inc.
22,394
389,880
Highwoods Properties, Inc.
6,818
202,495
Host Hotels & Resorts, Inc.
35,669
552,513
Howard Hughes Holdings, Inc. *
737
50,344
Hudson Pacific Properties, Inc.
43,656
81,200
Independence Realty Trust, Inc.
4,318
80,272
Innovative Industrial Properties, Inc.
201
11,099
InvenTrust Properties Corp.
2,362
66,349
Invitation Homes, Inc.
13,279
447,502
Iron Mountain, Inc.
6,844
675,571
JBG SMITH Properties
9,916
169,564
Jones Lang LaSalle, Inc. *
4,119
917,301
Kennedy-Wilson Holdings, Inc.
8,727
55,591
  
3
Schwab Fundamental Global Real Estate Index Fund
Portfolio Holdings (Unaudited) continued
SECURITY
NUMBER
OF SHARES
VALUE ($)
Kilroy Realty Corp.
6,864
221,021
Kimco Realty Corp.
17,317
368,159
Kite Realty Group Trust
5,110
113,033
Lamar Advertising Co., Class A
2,602
313,645
Lineage, Inc.
438
18,698
LTC Properties, Inc.
1,354
47,918
LXP Industrial Trust
11,955
102,574
Macerich Co.
13,099
211,942
Marcus & Millichap, Inc.
1,750
50,417
McGrath RentCorp
918
103,165
Medical Properties Trust, Inc. (a)
66,653
304,604
Mid-America Apartment Communities, Inc.
3,320
520,078
National Health Investors, Inc.
1,158
83,967
National Storage Affiliates Trust
1,919
66,014
Newmark Group, Inc., Class A
8,370
92,154
NNN REIT, Inc.
4,785
199,822
Omega Healthcare Investors, Inc.
7,033
260,221
Outfront Media, Inc.
8,625
142,485
Paramount Group, Inc.
6,497
39,307
Park Hotels & Resorts, Inc.
22,295
230,976
Peakstone Realty Trust
2,162
26,787
Pebblebrook Hotel Trust
8,148
74,799
Phillips Edison & Co., Inc.
3,511
124,500
Piedmont Office Realty Trust, Inc., Class A
5,181
36,889
Prologis, Inc.
12,093
1,313,300
Public Storage
2,630
811,118
Realty Income Corp.
11,047
625,481
Regency Centers Corp.
4,798
346,176
Rexford Industrial Realty, Inc.
2,905
102,372
RLJ Lodging Trust
15,714
114,712
Ryman Hospitality Properties, Inc.
1,003
97,401
Sabra Health Care REIT, Inc.
10,596
185,218
SBA Communications Corp.
1,815
420,880
Seaport Entertainment Group, Inc. *
56
1,094
Service Properties Trust
58,394
135,474
Sila Realty Trust, Inc.
506
12,610
Simon Property Group, Inc.
7,470
1,218,133
SITE Centers Corp.
1,281
15,270
SL Green Realty Corp.
4,128
234,347
STAG Industrial, Inc.
4,202
149,507
Summit Hotel Properties, Inc.
1,722
7,542
Sun Communities, Inc.
3,417
421,794
Sunstone Hotel Investors, Inc.
11,105
99,501
Tanger, Inc.
3,049
90,860
Terreno Realty Corp.
1,075
60,651
UDR, Inc.
8,535
353,605
Uniti Group, Inc.
40,146
172,628
Urban Edge Properties
4,714
85,606
Ventas, Inc.
15,658
1,006,496
Veris Residential, Inc.
2,995
45,524
VICI Properties, Inc.
15,123
479,550
Vornado Realty Trust
11,046
416,103
Welltower, Inc.
9,763
1,506,236
WP Carey, Inc.
6,323
396,831
Xenia Hotels & Resorts, Inc.
7,634
93,364
 
34,479,183
Total Common Stocks
(Cost $59,554,005)
74,057,908
SECURITY
NUMBER
OF SHARES
VALUE ($)
INVESTMENT COMPANIES 0.0% OF NET ASSETS
 
United States 0.0%
iShares Core U.S. REIT ETF
440
25,164
Total Investment Companies
(Cost $24,352)
25,164
 
 
 
 
SHORT-TERM INVESTMENTS 1.5% OF NET ASSETS
 
Money Market Funds 1.5%
State Street Institutional U.S. Government
Money Market Fund, Premier Class
4.27% (c)(d)
1,120,362
1,120,362
Total Short-Term Investments
(Cost $1,120,362)
1,120,362
Total Investments in Securities
(Cost $60,698,719)
75,203,434
 
 
NUMBER OF
CONTRACTS
NOTIONAL
AMOUNT
($)
CURRENT VALUE/
UNREALIZED
APPRECIATION
($)
FUTURES CONTRACTS
Long
Dow Jones U.S. Real Estate
Index, expires 06/20/25
6
216,600
818
MSCI EAFE Index, expires
06/20/25
1
130,225
2,793
MSCI Emerging Markets Index,
expires 06/20/25
2
114,930
3,476
 
7,087
 
*
Non-income producing security.
(a)
All or a portion of this security is on loan. Securities on loan were valued at
$1,007,593.
(b)
Fair valued using significant unobservable inputs (see notes to portfolio
holdings for additional information).
(c)
The rate shown is the annualized 7-day yield.
(d)
Security purchased with cash collateral received for securities on loan.
 
ADR —
American Depositary Receipt
CVA —
Dutch Certificate
ETF —
Exchange-Traded Fund
NVDR —
Non-Voting Depositary Receipt
REIT —
Real Estate Investment Trust
 
4
  
Schwab Fundamental Global Real Estate Index Fund
Portfolio Holdings (Unaudited) continued
The following is a summary of the inputs used to value the fund’s investments as of May 31, 2025 (see notes to portfolio holdings for additional information):  
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
$36,783,924
$—
$—
$36,783,924
Australia
—
2,519,112
—
2,519,112
Belgium
—
278,693
—
278,693
China
393,438
5,720,061
—
6,113,499
France
—
1,845,997
—
1,845,997
Germany
—
1,448,572
—
1,448,572
Guernsey
—
45,380
—
45,380
Hong Kong
—
8,211,180
0
*
8,211,180
Israel
—
397,161
—
397,161
Japan
—
8,708,792
—
8,708,792
Jersey
—
226,906
—
226,906
Luxembourg
—
279,547
—
279,547
Netherlands
193,679
97,572
—
291,251
Philippines
188,531
402,306
—
590,837
Singapore
—
1,074,443
—
1,074,443
South Africa
264,621
327,580
—
592,201
Spain
—
269,583
—
269,583
Sweden
92,134
477,849
—
569,983
Switzerland
—
698,648
—
698,648
Taiwan
—
89,234
—
89,234
Thailand
20,788
396,944
—
417,732
United Arab Emirates
—
1,004,809
—
1,004,809
United Kingdom
349,703
1,250,721
—
1,600,424
Investment Companies1
25,164
—
—
25,164
Short-Term Investments1
1,120,362
—
—
1,120,362
Futures Contracts2
7,087
—
—
7,087
Total
$39,439,431
$35,771,090
$0
$75,210,521
 
*
Level 3 amount shown includes securities determined to have no value at May 31, 2025.
1
As categorized in the Portfolio Holdings.
2
Futures contracts are reported at cumulative unrealized appreciation or depreciation.
  
5
Schwab Fundamental Global Real Estate Index Fund
Notes to Portfolio Holdings (Unaudited)
Pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the 1940 Act), the Board of Trustees (the Board) has designated authority to a Valuation Designee, the fund’s investment adviser, to make fair valuation determinations under adopted procedures, subject to Board oversight. The investment adviser has formed a Pricing Committee to administer the pricing and valuation of portfolio securities and other assets and liabilities as well as to ensure that prices used for internal purposes or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
Securities held in the fund’s portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:
● Securities traded on an exchange or over-the-counter: Traded securities are valued at the closing value for the day, or, on days when no closing value has been reported, at the mean of the most recent bid and ask quotes. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.
● Foreign equity security fair valuation: The Valuation Designee has adopted procedures to fair value foreign equity securities that are traded in markets that close prior to the valuation of the fund’s holdings. By fair valuing securities whose prices may have been affected by events occurring after the close of trading, the Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities. This methodology is designed to deter “arbitrage” market timers, who seek to exploit delays between the change in the value of the fund’s portfolio holdings and the net asset value (NAV) of the fund’s shares and seeks to help ensure that the prices at which the fund’s shares are purchased and redeemed are fair and do not result in dilution of shareholder interest or other harm to shareholders. When fair value pricing is used at the open or close of a reporting period, it may cause a temporary divergence between the return of the fund and that of its comparative index or benchmark.
● Futures contracts: Futures contracts are valued at their settlement prices as of the close of their exchanges.
● Mutual funds: Mutual funds are valued at their respective NAVs.
● Securities for which no quoted value is available: The Valuation Designee has adopted procedures to fair value the fund’s securities when market prices are not “readily available” or are unreliable. For example, a security may be fair valued when it’s de-listed or its trading is halted or suspended; when a security’s primary pricing source is unable or unwilling to provide a price; or when a security’s primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.
In accordance with the authoritative guidance on fair value measurements and disclosures under generally accepted accounting principles in the United States of America (GAAP), the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee’s judgment will be required to estimate fair value.
The three levels of the fair value hierarchy are as follows:
● Level 1 — quoted prices in active markets for identical investments — Investments whose values are based on quoted market prices in active markets. These generally include active listed equities, mutual funds, exchange-traded funds (ETFs) and futures contracts. Mutual funds and ETFs are classified as Level 1 prices, without consideration to the classification level of the underlying securities held which could be Level 1, Level 2 or Level 3 in the fair value hierarchy.
● Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) — Investments that trade in markets that are not considered to be active, but whose values are based on quoted market prices, dealer quotations or valuations provided by alternative pricing sources supported by observable inputs are classified as Level 2 prices. These generally include forward foreign currency exchange contracts, U.S. government and sovereign obligations, most government agency securities, investment-grade corporate bonds, certain mortgage products, less liquid listed equities, and state, municipal and provincial obligations. In addition, international securities whose markets close
6
  
Schwab Fundamental Global Real Estate Index Fund
Notes to Portfolio Holdings (Unaudited) (continued)
hours before the valuation of the fund’s holdings may require fair valuations due to significant movement in the U.S. markets occurring after the daily close of the foreign markets. The Valuation Designee has approved a vendor that calculates fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets.
● Level 3 — significant unobservable inputs (including the Valuation Designee’s assumptions in determining the fair value of investments) — Investments whose values are classified as Level 3 prices have significant unobservable inputs, as they may trade infrequently or not at all. When observable prices are not readily available for these securities, one or more valuation methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund’s results of operations.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The levels associated with valuing the fund’s investments as of May 31, 2025, are disclosed in the fund’s Portfolio Holdings.
REG84516MAY25
  
7