Form N-CSRS SCHWAB CAPITAL TRUST For: Sep 30

Semiannual Report  |  September 30, 2022

Schwab Target Index Funds

Schwab Target 2010 Index Fund

Schwab Target 2015 Index Fund

Schwab Target 2020 Index Fund

Schwab Target 2025 Index Fund

Schwab Target 2030 Index Fund

Schwab Target 2035 Index Fund

Schwab Target 2040 Index Fund

Schwab Target 2045 Index Fund

Schwab Target 2050 Index Fund

Schwab Target 2055 Index Fund

Schwab Target 2060 Index Fund

Schwab Target 2065 Index Fund

Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management^TM

Distributor: Charles Schwab & Co., Inc. (Schwab)

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

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 may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance information current to the most recent month end, please visit www.schwabassetmanagement.com/schwabfunds_prospectus.

Total Returns For the 6 Months Ended September 30, 2022
Schwab Target 2010 Index Fund (Ticker Symbol: SWYAX)	-12.93%
Target 2010 Passive Composite Index	-12.95%
Fund Category: Morningstar Target-Date 2000-20101	-12.56%
Performance Details	pages 7-8
Schwab Target 2015 Index Fund (Ticker Symbol: SWYBX)	-13.54%
Target 2015 Passive Composite Index	-13.47%
Fund Category: Morningstar Target-Date 20151	-13.63%
Performance Details	pages 9-10
Schwab Target 2020 Index Fund (Ticker Symbol: SWYLX)	-13.84%
Target 2020 Passive Composite Index	-13.83%
Fund Category: Morningstar Target-Date 20201	-14.33%
Performance Details	pages 11-12
Schwab Target 2025 Index Fund (Ticker Symbol: SWYDX)	-15.31%
Target 2025 Passive Composite Index	-15.25%
Fund Category: Morningstar Target-Date 20251	-15.16%
Performance Details	pages 13-14
Schwab Target 2030 Index Fund (Ticker Symbol: SWYEX)	-16.90%
Target 2030 Passive Composite Index	-16.93%
Fund Category: Morningstar Target-Date 20301	-16.44%
Performance Details	pages 15-16
Schwab Target 2035 Index Fund (Ticker Symbol: SWYFX)	-18.03%
Target 2035 Passive Composite Index	-18.13%
Fund Category: Morningstar Target-Date 20351	-17.76%
Performance Details	pages 17-18

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.

Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

1	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

Performance at a Glance (continued)

Total Returns For the 6 Months Ended September 30, 2022
Schwab Target 2040 Index Fund (Ticker Symbol: SWYGX)	-18.99%
Target 2040 Passive Composite Index	-19.10%
Fund Category: Morningstar Target-Date 20401	-18.85%
Performance Details	pages 19-20
Schwab Target 2045 Index Fund (Ticker Symbol: SWYHX)	-19.78%
Target 2045 Passive Composite Index	-19.88%
Fund Category: Morningstar Target-Date 20451	-19.41%
Performance Details	pages 21-22
Schwab Target 2050 Index Fund (Ticker Symbol: SWYMX)	-20.26%
Target 2050 Passive Composite Index	-20.35%
Fund Category: Morningstar Target-Date 20501	-19.81%
Performance Details	pages 23-24
Schwab Target 2055 Index Fund (Ticker Symbol: SWYJX)	-20.46%
Target 2055 Passive Composite Index	-20.61%
Fund Category: Morningstar Target-Date 20551	-19.92%
Performance Details	pages 25-26
Schwab Target 2060 Index Fund (Ticker Symbol: SWYNX)	-20.74%
Target 2060 Passive Composite Index	-20.85%
Fund Category: Morningstar Target-Date 20601	-19.98%
Performance Details	pages 27-28
Schwab Target 2065 Index Fund (Ticker Symbol: SWYOX)	-20.82%
Target 2065 Passive Composite Index	-20.94%
Fund Category: Morningstar Target-Date 2065+1	-20.29%
Performance Details	pages 29-30

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

The components that make up each of the composite indices may vary over time. For index definitions, please see the Glossary.

Fund expenses may have been partially absorbed by the investment adviser and its affiliates. Without these reductions, a fund’s total return would have been lower. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

1	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

The Investment Environment

For the six-month reporting period ended September 30, 2022, U.S. and international stocks generally lost ground as a result of accelerating inflation, rising interest rates, and geopolitical tensions, including the war in Ukraine. Albeit decelerating, COVID-19 continued to weigh on economies worldwide, with highly transmissible variants and subvariants keeping infection rates high in many areas. Economic growth around the world slowed and recession fears rose. As Russia’s war against Ukraine raged on, oil prices remained elevated for much of the period, hitting a reporting-period high in early June before retreating. Over the reporting period, the U.S. dollar strengthened against a basket of international currencies, generally decreasing the returns on overseas investments in U.S. dollar terms. For the reporting period, the S&P 500^® Index, a bellwether for the overall U.S. stock market, returned -20.20%. Among U.S. stocks, large-cap stocks underperformed small-cap stocks, with the Russell 1000^® Index and Russell 2000^® Index returning -20.51% and -19.01%, respectively. Outside the United States, the MSCI EAFE^® Index (Net)*, a broad measure of developed international equity performance, returned -22.51%, while the MSCI Emerging Markets Index (Net)* returned -21.70%. As interest rates rose over the reporting period, yields climbed and bond prices fell with the Bloomberg US Aggregate Bond Index, representing the broad U.S. bond market, returned -9.22%. (Bond yields and bond prices typically move in opposite directions.)

The U.S. economy showed signs of weakening over the reporting period. Amid ongoing supply chain disruptions, persisting inflation, and a tight labor market, gross domestic product (GDP) decreased at an annualized rate of -0.6% for the second quarter of 2022, following a decrease at an annualized rate of -1.6% for the first quarter of 2022. The unemployment rate remained near pre-pandemic lows over the reporting period. Inflation remained stubbornly high due to supply chain bottlenecks and soaring energy and food prices.

Outside the United States, global economies also wrestled with the fallout of the COVID-19 pandemic, high energy costs, rising inflation, and the war in Ukraine. The eurozone, heavily impacted by the war in Ukraine and associated commodity price spikes, managed to eke out small gains in GDP for both the first and second quarters of 2022 as COVID-19 restrictions eased and tourism increased in response to pent-up demand. The United Kingdom also posted

Asset Class Performance Comparison % returns during the 6 months ended September 30, 2022    

 

Index figures assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized. Past performance is not 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 Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

The Investment Environment (continued)

small increases in GDP growth for the first and second quarters of 2022, in part driven by increases in COVID-19 testing and tracing and an expansion of its vaccination program. In Japan, following a slight contraction for the first quarter of 2022, GDP growth was positive for the second quarter of 2022 as COVID-19 restrictions were lifted and government spending rose. Among emerging markets, China’s GDP growth remained positive but slowed notably as it dealt with numerous headwinds including the political landscape, an emphasis on domestic consumption over globalization, 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. India’s GDP growth jumped for the second quarter of 2022 on rising consumer demand and a rapid decline in COVID-19 cases.

Monetary policy around the world varied. In the United States, after raising interest rates by 0.25% in mid-March 2022—its first hike since December 2018—the U.S. Federal Reserve (Fed) increased the federal funds rate four times during the reporting period—by 0.50% in early May, 0.75% in mid-June, 0.75% in late July, and 0.75% in late September—in its ongoing efforts to achieve a return to price stability. The federal funds rate ended the reporting period in a range of 3.00% to 3.25%. The Fed reiterated that further rate hikes were likely by the end of 2022. In June, the Fed also began to reduce the $9 trillion in assets it holds on its balance sheet, vowing to be even more aggressive than during its last round of quantitative tightening in 2017 through 2019. Outside the United States, central banks were generally similarly responsive. After holding its policy rate unchanged since March 2016, at 0.00%, the European Central Bank raised its interest rate by 0.50% in July 2022, followed by a 1.25% increase in September 2022. European Central Bank policymakers also set expectations for future rate increases in an effort to dampen demand and control inflation. The Bank of England raised its key official bank rate four times during the reporting period, to 2.25%, bringing borrowing costs to a 13-year high as the Bank of England wrestles with soaring inflation. In contrast, the Bank of Japan upheld its short-term interest rate target of -0.1%, unchanged since 2016, but reiterated that it would not hesitate to take extra easing measures if needed. Central banks in India, Indonesia, Brazil, Mexico, and Pakistan all raised rates multiple times over the reporting period to counteract the impacts of inflation. In contrast, China cut its rate in August 2022, its second rate reduction in 2022. Russia, which raised its benchmark policy rate to 20% in late February 2022 amid the broadening fallout of Western sanctions in retaliation against Russia’s invasion of Ukraine, reduced it several times during the reporting period.

Nearly all U.S. bond markets posted negative returns for the reporting period, with the exception of the shortest (one- and three- month U.S. Treasury bills), which posted slightly positive returns. Even U.S. Treasury Inflation-Protected Securities lost ground for the reporting period. Yields on U.S. Treasuries climbed during the reporting period in response to the Fed’s monetary policy actions. The yield on the 10-year U.S. Treasury began the reporting period at 2.32% and ended it at 3.83%, just off the reporting-period high of 3.97% recorded three days earlier. Short-term rates also rose, with the yield on the three-month U.S. Treasury climbing from 0.52% to 3.33% over the reporting period.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

Fund Management

Zifan Tang, Ph.D., CFA, Senior Portfolio Manager, is responsible for the co-management of the funds. Prior to joining Schwab in 2012, Ms. Tang was a product manager at Thomson Reuters and from 1997 to 2009 worked as a portfolio manager at Barclays Global Investors (now known as BlackRock).

    

Drew Hayes, CFA, Portfolio Manager, is responsible for the co-management of the funds. Mr. Hayes has been with Schwab since 2006. Before becoming a portfolio manager, he spent seven years as a senior fixed income specialist for Schwab Wealth Advisory, Inc. Prior to that, he worked as a bond investment specialist for two years and as a registered representative for two years for Charles Schwab & Co., Inc.

    

Patrick Kwok, CFA, Portfolio Manager, is responsible for the co-management of the funds. Previously, Mr. Kwok served as an associate portfolio manager from 2012 to 2016. Prior to that, he worked as a fund administration manager, where he was responsible for oversight of sub-advisers, trading, cash management, and fund administration supporting the Charles Schwab Trust Bank Collective Investment Trusts and multi-asset Schwab Funds. Prior to joining Schwab Asset Management in 2008, Mr. Kwok spent two years as an asset operations specialist at Charles Schwab Trust Company. He also worked for one year at State Street Bank & Trust as a portfolio accountant and pricing specialist.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2010 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2010 Index Fund (8/25/16)	-12.93%	-14.66%	2.38%	3.01%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2010 Passive Composite Index	-12.95%	-14.71%	2.44%	3.08%
Fund Category: Morningstar Target-Date 2000-20103	-12.56%	-14.75%	2.15%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2010 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2015 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2015 Index Fund (8/25/16)	-13.54%	-15.12%	2.44%	3.12%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2015 Passive Composite Index	-13.47%	-15.06%	2.56%	3.24%
Fund Category: Morningstar Target-Date 20153	-13.63%	-15.60%	2.36%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2015 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2020 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2020 Index Fund (8/25/16)	-13.84%	-15.31%	2.67%	3.64%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2020 Passive Composite Index	-13.83%	-15.31%	2.76%	3.71%
Fund Category: Morningstar Target-Date 20203	-14.33%	-16.29%	2.49%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2020 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2025 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2025 Index Fund (8/25/16)	-15.31%	-16.37%	3.27%	4.49%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2025 Passive Composite Index	-15.25%	-16.29%	3.40%	4.59%
Fund Category: Morningstar Target-Date 20253	-15.16%	-17.02%	2.75%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.12%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.04% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2025 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2030 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2030 Index Fund (8/25/16)	-16.90%	-17.45%	3.71%	5.07%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2030 Passive Composite Index	-16.93%	-17.45%	3.78%	5.15%
Fund Category: Morningstar Target-Date 20303	-16.44%	-17.98%	3.22%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.12%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.04% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2030 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2035 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2035 Index Fund (8/25/16)	-18.03%	-18.21%	3.96%	5.51%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2035 Passive Composite Index	-18.13%	-18.27%	4.06%	5.58%
Fund Category: Morningstar Target-Date 20353	-17.76%	-18.96%	3.62%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.12%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.04% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2035 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2040 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2040 Index Fund (8/25/16)	-18.99%	-18.87%	4.17%	5.88%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2040 Passive Composite Index	-19.10%	-18.92%	4.29%	5.96%
Fund Category: Morningstar Target-Date 20403	-18.85%	-19.66%	3.87%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.12%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.04% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2040 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2045 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2045 Index Fund (8/25/16)	-19.78%	-19.43%	4.38%	6.15%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2045 Passive Composite Index	-19.88%	-19.43%	4.48%	6.25%
Fund Category: Morningstar Target-Date 20453	-19.41%	-20.12%	4.08%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2045 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	Less than 0.05%.
4	This list is not a recommendation of any security by the investment adviser.
5	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2050 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2050 Index Fund (8/25/16)	-20.26%	-19.81%	4.46%	6.29%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2050 Passive Composite Index	-20.35%	-19.77%	4.58%	6.40%
Fund Category: Morningstar Target-Date 20503	-19.81%	-20.43%	4.07%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2050 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	Less than 0.05%.
4	This list is not a recommendation of any security by the investment adviser.
5	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2055 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2055 Index Fund (8/25/16)	-20.46%	-19.92%	4.55%	6.44%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2055 Passive Composite Index	-20.61%	-19.95%	4.65%	6.54%
Fund Category: Morningstar Target-Date 20553	-19.92%	-20.54%	4.12%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2055 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	Less than 0.05%.
4	This list is not a recommendation of any security by the investment adviser.
5	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2060 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	5 Years	Since Inception
Schwab Target 2060 Index Fund (8/25/16)	-20.74%	-20.11%	4.59%	6.50%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	8.48%	9.98%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-0.27%	-0.21%
Target 2060 Passive Composite Index	-20.85%	-20.09%	4.72%	6.61%
Fund Category: Morningstar Target-Date 20603	-19.98%	-20.55%	4.14%	N/A
Fund Expense Ratios4: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	On July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. Accordingly, the performance history of the fund, prior to July 24, 2017, is that of the fund’s former Institutional Shares.
3	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
4	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2060 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2065 Index Fund

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

 

Fund and Inception Date	6 Months	1 Year	Since Inception
Schwab Target 2065 Index Fund (2/25/21)	-20.82%	-20.21%	-8.86%
Dow Jones U.S. Total Stock Market IndexSM	-20.63%	-18.05%	-5.47%
Bloomberg US Aggregate Bond Index	-9.22%	-14.60%	-8.61%
Target 2065 Passive Composite Index	-20.94%	-20.16%	-9.02%
Fund Category: Morningstar Target-Date 2065+2	-20.29%	-20.87%	N/A
Fund Expense Ratios3: Net 0.08%; Gross 0.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see the Glossary.

1	Fund expenses have been partially absorbed by the investment adviser and its affiliates. Without these reductions, the fund’s returns would have been lower. These returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
2	Source for category information: Morningstar, Inc. The Morningstar Category return represents all active and index mutual funds and ETFs within the category as of the report date.
3	As stated in the prospectus. Includes 0.05% of acquired fund fees and expenses (AFFE), which are indirect expenses incurred by the fund through its investments in the underlying funds. Net Expense: Expenses reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund. Gross Expense: Does not reflect the effect of contractual fee waivers. For actual expense ratios during the period, not including AFFE, refer to the financial highlights section of the financial statements.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2065 Index Fund

Performance and Fund Facts as of September 30, 2022

    

    
    
    
    

Portfolio holdings may have changed since the report date.

1	The percentage may differ from the Portfolio Holdings because the above calculation is based on a percentage of total investments, whereas the calculation in the Portfolio Holdings is based on a percentage of net assets.
2	The fund intends to primarily invest in affiliated Schwab ETFs and may also invest in affiliated Schwab Funds and unaffiliated third party ETFs and mutual funds (all such ETFs and mutual funds referred to as “underlying funds”).
3	This list is not a recommendation of any security by the investment adviser.
4	The holdings listed exclude any temporary liquidity investments.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

Fund Expenses (Unaudited)

Schwab Target Index Funds  |  Semiannual Report

Schwab Target Index Funds

Fund Expenses (Unaudited) (continued)

	EXPENSE RATIO (ANNUALIZED)1,2	EFFECTIVE EXPENSE RATIO (ANNUALIZED)3,4	BEGINNING ACCOUNT VALUE AT 4/1/22	ENDING ACCOUNT VALUE (NET OF EXPENSES) AT 9/30/222	EXPENSES PAID DURING PERIOD 4/1/22-9/30/222,5	EFFECTIVE EXPENSES PAID DURING PERIOD 4/1/22-9/30/224,5
Schwab Target 2065 Index Fund
Actual Return	0.04%	0.08%	$1,000.00	$ 791.80	$0.18	$0.36
Hypothetical 5% Return	0.04%	0.08%	$1,000.00	$1,024.87	$0.20	$0.41

    

1	Based on the most recent six-month expense ratio; may differ from the expense ratio provided in the Financial Highlights.
2	Excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
3	Based on the most recent six-month acquired fund fees and expenses and the expense ratio; may differ from the acquired fund fees and expenses and the expense ratios in the prospectus.
4	Includes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds.
5	Expenses for each fund are equal to its annualized expense ratio, multiplied by the average account value over the period, multiplied by the 183 days of the period, and divided by the 365 days of the fiscal year.

Schwab Target Index Funds  |  Semiannual Report

Schwab Target 2010 Index Fund

Financial Statements

FINANCIAL HIGHLIGHTS

	4/1/22– 9/30/22*	4/1/21– 3/31/22	4/1/20– 3/31/21	4/1/19– 3/31/20	4/1/18– 3/31/19	4/1/17– 3/31/181
Per-Share Data
Net asset value at beginning of period	$12.37	$12.49	$10.70	$10.88	$10.59	$10.15
Income (loss) from investment operations:
Net investment income (loss)2	0.13	0.25	0.22	0.27	0.27	0.22
Net realized and unrealized gains (losses)	(1.73)	(0.04)	1.82	(0.19)	0.23	0.34
Total from investment operations	(1.60)	0.21	2.04	0.08	0.50	0.56
Less distributions:
Distributions from net investment income	—	(0.25)	(0.21)	(0.25)	(0.20)	(0.12)
Distributions from net realized gains	—	(0.08)	(0.04)	(0.01)	(0.01)	(0.00) 3
Total distributions	—	(0.33)	(0.25)	(0.26)	(0.21)	(0.12)
Net asset value at end of period	$10.77	$12.37	$12.49	$10.70	$10.88	$10.59
Total return	(12.93%) 4	1.55%	19.04%	0.58%	4.81%	5.57%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses5	0.04% 6,7	0.03%	0.03%	0.03%	0.03%	0.03%
Gross operating expenses5	0.08% 6,7	0.08%	0.08%	0.08%	0.08%	0.08%
Net investment income (loss)	2.28% 6	1.90%	1.83%	2.43%	2.53%	2.11%
Portfolio turnover rate	6% 4	27%	21%	19%	30%	28%
Net assets, end of period (x 1,000)	$43,875	$55,048	$55,137	$35,614	$25,391	$14,185

    

*	Unaudited.
1	Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares.
2	Calculated based on the average shares outstanding during the period.
3	Per-share amount was less than $0.005.
4	Not annualized.
5	Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.05%, 0.05%, 0.05%, 0.05%  and 0.05%, respectively, for the periods ended September 30, 2022, March 31, 2022 March 31, 2021, March 31, 2020, March 31, 2019 and March 31, 2018 (see financial note 4).
6	Annualized (except for proxy expenses).
7	Ratio includes less than 0.005% of non-routine proxy expenses.

Schwab Target Index Funds  |  Semiannual Report

See financial notes

Schwab Target 2010 Index Fund

Portfolio Holdings  as of September 30, 2022 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.

The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to [email protected].The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.    

SECURITY	VALUE AT 3/31/22	PURCHASES	SALES	REALIZED GAINS (LOSSES)	NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)	VALUE AT 9/30/22	BALANCE OF SHARES HELD AT 9/30/22	DISTRIBUTIONS RECEIVED(a)
AFFILIATED UNDERLYING FUNDS 100.1% OF NET ASSETS
U.S. Stocks 24.8%
Large-Cap 23.3%
Schwab U.S. Large-Cap ETF	$13,059,648	$1,461,285	($1,538,371)	($48,146)	($2,676,187)	$10,258,229	242,225	$91,408
Small-Cap 1.5%
Schwab U.S. Small-Cap ETF	810,851	73,759	(73,795)	(3,493)	(157,578)	649,744	17,189	4,805
						10,907,973
International Stocks 9.5%
Developed Markets 9.5%
Schwab International Equity ETF	5,261,462	409,609	(285,790)	(22,830)	(1,193,247)	4,169,204	148,212	38,033
Real Estate 2.6%
U.S. REITs 2.6%
Schwab U.S. REIT ETF	1,442,898	106,432	(66,303)	(2,664)	(348,534)	1,131,829	60,558	16,477
Fixed Income 58.5%
Inflation-Protected Bond 6.2%
Schwab U.S. TIPS ETF	3,438,675	24,012	(237,103)	(19,985)	(466,208)	2,739,391	52,884	131,765
Intermediate-Term Bond 43.5%
Schwab U.S. Aggregate Bond ETF	23,774,980	958,333	(3,287,572)	(422,489)	(1,951,865)	19,071,387	420,909	261,725
Treasury Bond 8.8%
Schwab Short-Term U.S. Treasury ETF	4,761,586	158,889	(963,118)	(42,135)	(70,927)	3,844,295	79,658	22,552
						25,655,073
Money Market Funds 4.7%
Schwab Variable Share Price Money Fund, Ultra Shares, 3.01% (b)	2,037,571	12,009	—	—	614	2,050,194	2,049,579	14,574
Total Affiliated Underlying Funds (Cost $44,837,407)	$54,587,671	$3,204,328	($6,452,052)	($561,742)	($6,863,932)	$43,914,273		$581,339
Total Investments in Securities (Cost $44,837,407)						$43,914,273

    

(a)	Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(d) for additional information).
(b)	The rate shown is the 7-day yield.
ETF —	Exchange traded fund
REIT —	Real Estate Investment Trust
TIPS —	Treasury Inflation Protected Securities

At September 30, 2022, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).

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Schwab Target 2010 Index Fund

Statement of Assets and Liabilities

As of September 30, 2022; unaudited

Assets
Investments in securities, at value - affiliated (cost $44,837,407)		$43,914,273
Receivables:
Investments sold		459,784
Fund shares sold		5,133
Dividends	+	2,709
Total assets		44,381,899
Liabilities
Payables:
Investments bought		271,066
Fund shares redeemed		224,184
Due to custodian		10,268
Investment adviser fees	+	1,549
Total liabilities		507,067
Net assets		$43,874,832
Net Assets by Source
Capital received from investors		$45,226,744
Total distributable loss	+	(1,351,912)
Net assets		$43,874,832

    

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$43,874,832		4,074,989		$10.77

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Schwab Target 2010 Index Fund

Statement of Operations

For the period April 1, 2022 through September 30, 2022; unaudited
Investment Income
Dividends received from securities - affiliated		$581,339
Interest received from securities - unaffiliated	+	234
Total investment income		581,573
Expenses
Investment adviser fees		20,134
Proxy fees1	+	2,269
Total expenses		22,403
Expense reduction	–	11,279
Net expenses	–	11,124
Net investment income		570,449
REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized losses on sales of securities - affiliated		(561,742)
Net change in unrealized appreciation (depreciation) on securities - affiliated	+	(6,863,932)
Net realized and unrealized losses		(7,425,674)
Decrease in net assets resulting from operations		($6,855,225)

    

1	Proxy fees are non-routine expenses (see financial note 2(e) for additional information).

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Schwab Target 2010 Index Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	4/1/22-9/30/22		4/1/21-3/31/22
Net investment income		$570,449	$1,111,179
Net realized gains (losses)		(561,742)	190,119
Net change in unrealized appreciation (depreciation)	+	(6,863,932)	(400,635)
Increase (decrease) in net assets resulting from operations		($6,855,225)	$900,663
DISTRIBUTIONS TO SHAREHOLDERS
Total distributions		$—	($1,460,719)

    

TRANSACTIONS IN FUND SHARES
	4/1/22-9/30/22			4/1/21-3/31/22
		SHARES	VALUE	SHARES	VALUE
Shares sold		277,386	$3,249,822	1,420,137	$18,277,254
Shares reinvested		—	—	104,962	1,363,444
Shares redeemed	+	(653,452)	(7,567,993)	(1,490,015)	(19,169,445)
Net transactions in fund shares		(376,066)	($4,318,171)	35,084	$471,253
SHARES OUTSTANDING AND NET ASSETS
	4/1/22-9/30/22			4/1/21-3/31/22
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		4,451,055	$55,048,228	4,415,971	$55,137,031
Total increase (decrease)	+	(376,066)	(11,173,396)	35,084	(88,803)
End of period		4,074,989	$43,874,832	4,451,055	$55,048,228

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Schwab Target 2015 Index Fund

Financial Statements

FINANCIAL HIGHLIGHTS

	4/1/22– 9/30/22*	4/1/21– 3/31/22	4/1/20– 3/31/21	4/1/19– 3/31/20	4/1/18– 3/31/19	4/1/17– 3/31/181
Per-Share Data
Net asset value at beginning of period	$12.48	$12.58	$10.68	$10.92	$10.61	$10.17
Income (loss) from investment operations:
Net investment income (loss)2	0.13	0.25	0.22	0.28	0.27	0.22
Net realized and unrealized gains (losses)	(1.82)	0.01 3	1.97	(0.26)	0.22	0.38
Total from investment operations	(1.69)	0.26	2.19	0.02	0.49	0.60
Less distributions:
Distributions from net investment income	—	(0.25)	(0.22)	(0.25)	(0.17)	(0.15)
Distributions from net realized gains	—	(0.11)	(0.07)	(0.01)	(0.01)	(0.01)
Total distributions	—	(0.36)	(0.29)	(0.26)	(0.18)	(0.16)
Net asset value at end of period	$10.79	$12.48	$12.58	$10.68	$10.92	$10.61
Total return	(13.54%) 4	1.92%	20.52%	(0.02%)	4.74%	5.83%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses5	0.04% 6,7	0.03%	0.04%	0.03%	0.03%	0.03%
Gross operating expenses5	0.08% 6,7	0.08%	0.08%	0.08%	0.08%	0.08%
Net investment income (loss)	2.25% 6	1.91%	1.85%	2.45%	2.54%	2.06%
Portfolio turnover rate	7% 4	23%	30%	24%	29%	47%
Net assets, end of period (x 1,000)	$58,919	$75,362	$73,384	$57,790	$45,688	$20,229

    

*	Unaudited.
1	Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares.
2	Calculated based on the average shares outstanding during the period.
3	The per share amount does not accord with the change in aggregate gains and losses in securities during the period because of the timing of sales and repurchases of fund shares in relation to fluctuating market values.
4	Not annualized.
5	Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.05%, 0.04%, 0.05%, 0.05%  and 0.05%, respectively, for the periods ended September 30, 2022, March 31, 2022 March 31, 2021, March 31, 2020, March 31, 2019 and March 31, 2018 (see financial note 4).
6	Annualized (except for proxy expenses).
7	Ratio includes less than 0.005% of non-routine proxy expenses.

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Schwab Target 2015 Index Fund

Portfolio Holdings  as of September 30, 2022 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.

The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to [email protected].The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.    

SECURITY	VALUE AT 3/31/22	PURCHASES	SALES	REALIZED GAINS (LOSSES)	NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)	VALUE AT 9/30/22	BALANCE OF SHARES HELD AT 9/30/22	DISTRIBUTIONS RECEIVED(a)
AFFILIATED UNDERLYING FUNDS 100.0% OF NET ASSETS
U.S. Stocks 26.8%
Large-Cap 25.2%
Schwab U.S. Large-Cap ETF	$19,284,923	$2,123,698	($2,680,230)	$13,009	($3,895,861)	$14,845,539	350,544	$129,445
Small-Cap 1.6%
Schwab U.S. Small-Cap ETF	1,245,379	135,186	(168,682)	(12,520)	(229,264)	970,099	25,664	6,980
						15,815,638
International Stocks 10.7%
Developed Markets 10.7%
Schwab International Equity ETF	8,151,546	895,924	(890,730)	(76,573)	(1,746,107)	6,334,060	225,171	56,291
Real Estate 2.8%
U.S. REITs 2.8%
Schwab U.S. REIT ETF	2,170,358	308,030	(333,618)	(523)	(481,323)	1,662,924	88,974	23,720
Fixed Income 55.5%
Inflation-Protected Bond 5.9%
Schwab U.S. TIPS ETF	4,438,933	117,210	(438,094)	(17,137)	(594,932)	3,505,980	67,683	165,624
Intermediate-Term Bond 41.4%
Schwab U.S. Aggregate Bond ETF	30,953,897	1,087,356	(4,646,106)	(606,989)	(2,414,912)	24,373,246	537,922	331,360
Treasury Bond 8.2%
Schwab Short-Term U.S. Treasury ETF	6,044,425	177,445	(1,280,936)	(56,754)	(81,683)	4,802,497	99,513	27,714
						32,681,723
Money Market Funds 4.2%
Schwab Variable Share Price Money Fund, Ultra Shares, 3.01% (b)	2,436,557	14,361	—	—	734	2,451,652	2,450,917	17,428
Total Affiliated Underlying Funds (Cost $59,015,763)	$74,726,018	$4,859,210	($10,438,396)	($757,487)	($9,443,348)	$58,945,997		$758,562
Total Investments in Securities (Cost $59,015,763)						$58,945,997

    

(a)	Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(d) for additional information).
(b)	The rate shown is the 7-day yield.
ETF —	Exchange traded fund
REIT —	Real Estate Investment Trust
TIPS —	Treasury Inflation Protected Securities

At September 30, 2022, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).

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Schwab Target 2015 Index Fund

Statement of Assets and Liabilities

As of September 30, 2022; unaudited

Assets
Investments in securities, at value - affiliated (cost $59,015,763)		$58,945,997
Cash		70,228
Receivables:
Investments sold		487,542
Fund shares sold		9,432
Dividends	+	3,240
Total assets		59,516,439
Liabilities
Payables:
Investments bought		595,627
Investment adviser fees	+	2,054
Total liabilities		597,681
Net assets		$58,918,758
Net Assets by Source
Capital received from investors		$59,549,385
Total distributable loss	+	(630,627)
Net assets		$58,918,758

    

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$58,918,758		5,458,454		$10.79

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Schwab Target 2015 Index Fund

Statement of Operations

For the period April 1, 2022 through September 30, 2022; unaudited
Investment Income
Dividends received from securities - affiliated		$758,562
Interest received from securities - unaffiliated	+	314
Total investment income		758,876
Expenses
Investment adviser fees		26,688
Proxy fees1	+	3,009
Total expenses		29,697
Expense reduction	–	14,860
Net expenses	–	14,837
Net investment income		744,039
REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized losses on sales of securities - affiliated		(757,487)
Net change in unrealized appreciation (depreciation) on securities - affiliated	+	(9,443,348)
Net realized and unrealized losses		(10,200,835)
Decrease in net assets resulting from operations		($9,456,796)

    

1	Proxy fees are non-routine expenses (see financial note 2(e) for additional information).

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Schwab Target 2015 Index Fund

Statement of Changes in Net Assets

For the current and prior report periods

Figures for the current period are unaudited

OPERATIONS
	4/1/22-9/30/22		4/1/21-3/31/22
Net investment income		$744,039	$1,490,265
Net realized gains (losses)		(757,487)	333,576
Net change in unrealized appreciation (depreciation)	+	(9,443,348)	(412,377)
Increase (decrease) in net assets resulting from operations		($9,456,796)	$1,411,464
DISTRIBUTIONS TO SHAREHOLDERS
Total distributions		$—	($2,126,395)

    

TRANSACTIONS IN FUND SHARES
	4/1/22-9/30/22			4/1/21-3/31/22
		SHARES	VALUE	SHARES	VALUE
Shares sold		357,410	$4,160,202	1,612,364	$20,853,291
Shares reinvested		—	—	153,206	2,008,520
Shares redeemed	+	(939,722)	(11,147,069)	(1,559,156)	(20,168,590)
Net transactions in fund shares		(582,312)	($6,986,867)	206,414	$2,693,221
SHARES OUTSTANDING AND NET ASSETS
	4/1/22-9/30/22			4/1/21-3/31/22
		SHARES	NET ASSETS	SHARES	NET ASSETS
Beginning of period		6,040,766	$75,362,421	5,834,352	$73,384,131
Total increase (decrease)	+	(582,312)	(16,443,663)	206,414	1,978,290
End of period		5,458,454	$58,918,758	6,040,766	$75,362,421

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Schwab Target 2020 Index Fund

Financial Statements

FINANCIAL HIGHLIGHTS

	4/1/22– 9/30/22*	4/1/21– 3/31/22	4/1/20– 3/31/21	4/1/19– 3/31/20	4/1/18– 3/31/19	4/1/17– 3/31/181
Per-Share Data
Net asset value at beginning of period	$13.01	$13.05	$10.93	$11.18	$10.92	$10.30
Income (loss) from investment operations:
Net investment income (loss)2	0.14	0.26	0.23	0.29	0.27	0.23
Net realized and unrealized gains (losses)	(1.94)	0.03	2.12	(0.29)	0.22	0.52
Total from investment operations	(1.80)	0.29	2.35	0.00 3	0.49	0.75
Less distributions:
Distributions from net investment income	—	(0.26)	(0.21)	(0.25)	(0.23)	(0.13)
Distributions from net realized gains	—	(0.07)	(0.02)	(0.00) 3	(0.00) 3	(0.00) 3
Total distributions	—	(0.33)	(0.23)	(0.25)	(0.23)	(0.13)
Net asset value at end of period	$11.21	$13.01	$13.05	$10.93	$11.18	$10.92
Total return	(13.84%) 4	2.13%	21.51%	(0.17%)	4.73%	7.30%
Ratios/Supplemental Data
Ratios to average net assets:
Net operating expenses5	0.04% 6,7	0.03%	0.03%	0.03%	0.03%	0.03%
Gross operating expenses5	0.08% 6,7	0.08%	0.08%	0.08%	0.08%	0.08%
Net investment income (loss)	2.22% 6	1.92%	1.86%	2.46%	2.48%	2.15%
Portfolio turnover rate	7% 4	18%	13%	22%	13%	21%
Net assets, end of period (x 1,000)	$239,005	$286,650	$277,678	$172,353	$129,760	$70,841

    

*	Unaudited.
1	Effective July 24, 2017, the Investor Shares and Institutional Shares share classes were combined into a single class of shares of the fund. The financial history as shown in the financial highlights is that of the former Institutional Shares.
2	Calculated based on the average shares outstanding during the period.
3	Per-share amount was less than $0.005.
4	Not annualized.
5	Ratio excludes acquired fund fees and expenses, which are indirect expenses incurred by the fund through its investments in underlying funds. If the expenses incurred by the underlying funds were included in these ratios they would have increased by 0.04% (annualized), 0.05%, 0.05%, 0.05%, 0.05%  and 0.05%, respectively, for the periods ended September 30, 2022, March 31, 2022 March 31, 2021, March 31, 2020, March 31, 2019 and March 31, 2018 (see financial note 4).
6	Annualized (except for proxy expenses).
7	Ratio includes less than 0.005% of non-routine proxy expenses.

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Schwab Target 2020 Index Fund

Portfolio Holdings  as of September 30, 2022 (Unaudited)

This section shows all the securities in the fund’s portfolio and their values as of the report date, including a summary of the fund’s transactions with its affiliated underlying funds during the period.

The fund files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-PORT Part F. The fund’s Form N-PORT Part F is available on the SEC’s website at www.sec.gov. You can also obtain this information at no cost on the fund’s website at www.schwabassetmanagement.com/schwabfunds_prospectus, by calling 1-866-414-6349, or by sending an email request to [email protected].The fund also makes available its complete schedule of portfolio holdings 15 to 20 days after the end of the month on the fund’s website.    

SECURITY	VALUE AT 3/31/22	PURCHASES	SALES	REALIZED GAINS (LOSSES)	NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)	VALUE AT 9/30/22	BALANCE OF SHARES HELD AT 9/30/22	DISTRIBUTIONS RECEIVED(a)
AFFILIATED UNDERLYING FUNDS 99.5% OF NET ASSETS
U.S. Stocks 28.0%
Large-Cap 26.3%
Schwab U.S. Large-Cap ETF	$76,467,377	$8,664,161	($5,932,400)	($560,291)	($15,841,208)	$62,797,639	1,482,825	$548,046
Small-Cap 1.7%
Schwab U.S. Small-Cap ETF	5,051,749	242,255	(248,445)	(21,385)	(988,986)	4,035,188	106,751	30,563
						66,832,827
International Stocks 11.7%
Developed Markets 11.7%
Schwab International Equity ETF	33,920,614	3,536,706	(1,437,259)	(210,898)	(7,842,430)	27,966,733	994,196	251,855
Real Estate 3.0%
U.S. REITs 3.0%
Schwab U.S. REIT ETF	8,710,604	945,563	(310,864)	(11,782)	(2,161,906)	7,171,615	383,714	102,160
Fixed Income 53.3%
Inflation-Protected Bond 5.7%
Schwab U.S. TIPS ETF	16,230,636	339,088	(600,865)	(31,698)	(2,322,826)	13,614,335	262,825	633,976
Intermediate-Term Bond 40.0%
Schwab U.S. Aggregate Bond ETF	113,876,864	4,652,147	(11,421,818)	(1,593,172)	(10,032,892)	95,481,129	2,107,286	1,280,685
Treasury Bond 7.6%
Schwab Short-Term U.S. Treasury ETF	21,563,722	907,285	(3,684,679)	(169,068)	(348,003)	18,269,257	378,559	104,154
						127,364,721
Money Market Funds 3.5%
Schwab Variable Share Price Money Fund, Ultra Shares, 3.01% (b)	8,381,809	49,402	—	—	2,526	8,433,737	8,431,208	59,953
Total Affiliated Underlying Funds (Cost $244,430,918)	$284,203,375	$19,336,607	($23,636,330)	($2,598,294)	($39,535,725)	$237,769,633		$3,011,392
Total Investments in Securities (Cost $244,430,918)						$237,769,633

    

(a)	Distributions received include distributions from net investment income and capital gains, if any, from the underlying funds. Amounts shown are only presented for affiliated underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable (See financial note 2(d) for additional information).
(b)	The rate shown is the 7-day yield.
ETF —	Exchange traded fund
REIT —	Real Estate Investment Trust
TIPS —	Treasury Inflation Protected Securities

At September 30, 2022, all of the fund’s investment securities were classified as Level 1. Fund investments in mutual funds and ETFs are classified as Level 1, without consideration to the classification level of the underlying securities held by the mutual funds and ETFs, which could be Level 1, Level 2 or Level 3. (See financial note 2(a) for additional information).

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Schwab Target 2020 Index Fund

Statement of Assets and Liabilities

As of September 30, 2022; unaudited

Assets
Investments in securities, at value - affiliated (cost $244,430,918)		$237,769,633
Cash		802,597
Receivables:
Investments sold		1,994,474
Fund shares sold		538,327
Dividends	+	11,144
Total assets		241,116,175
Liabilities
Payables:
Investments bought		2,001,475
Fund shares redeemed		100,990
Investment adviser fees	+	8,462
Total liabilities		2,110,927
Net assets		$239,005,248
Net Assets by Source
Capital received from investors		$246,259,029
Total distributable loss	+	(7,253,781)
Net assets		$239,005,248

    

Net Asset Value (NAV)
Net Assets	÷	Shares Outstanding	=	NAV
$239,005,248		21,317,155		$11.21

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Schwab Target 2020 Index Fund

Statement of Operations

For the period April 1, 2022 through September 30, 2022; unaudited
Investment Income
Dividends received from securities - affiliated		$3,011,392
Interest received from securities - unaffiliated	+	4,626
Total investment income		3,016,018
Expenses
Investment adviser fees		107,138
Proxy fees1	+	12,033
Total expenses		119,171
Expense reduction	–	58,626
Net expenses	–	60,545
Net investment income		2,955,473
REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized losses on sales of securities - affiliated		(2,598,294)
Net change in unrealized appreciation (depreciation) on securities - affiliated	+	(39,535,725)