# EDGAR Filing Document

**Accession Number:** 0000904333
**File Stem:** 0001193125-26-251406
**Filing Date:** 2026-6
**Character Count:** 392208
**Document Hash:** 1422cccc6e2676d06a40148198234d6f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-251406.hdr.sgml**: 20260601

**ACCESSION NUMBER**: 0001193125-26-251406

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 69

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260601

**DATE AS OF CHANGE**: 20260601

**EFFECTIVENESS DATE**: 20260601

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SCHWAB CAPITAL TRUST
- **CENTRAL INDEX KEY:** 0000904333

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1031
- **LEGAL ENTITY IDENTIFIER:** 549300PEK1H7N1HLC797

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-07704
- **FILM NUMBER:** 261050747

**BUSINESS ADDRESS:**
- **STREET 1:** 425 MARKET STREET
- **STREET 2:** SUITE 1700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105
- **BUSINESS PHONE:** 800-650-9744

**MAIL ADDRESS:**
- **STREET 1:** 425 MARKET STREET
- **STREET 2:** SUITE 1700
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94105

## Series and Classes Contracts Data

### Schwab Target 2050 Index Fund (Series ID: S000054919)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172773 | Schwab Target 2050 Index Fund | SWYMX           |

### Schwab Target 2055 Index Fund (Series ID: S000054920)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172775 | Schwab Target 2055 Index Fund | SWYJX           |

### Schwab Target 2060 Index Fund (Series ID: S000054921)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172777 | Schwab Target 2060 Index Fund | SWYNX           |

### Schwab Target 2010 Index Fund (Series ID: S000054922)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172779 | Schwab Target 2010 Index Fund | SWYAX           |

### Schwab Target 2015 Index Fund (Series ID: S000054923)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172781 | Schwab Target 2015 Index Fund | SWYBX           |

### Schwab Target 2020 Index Fund (Series ID: S000054924)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172783 | Schwab Target 2020 Index Fund | SWYLX           |

### Schwab Target 2025 Index Fund (Series ID: S000054925)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172785 | Schwab Target 2025 Index Fund | SWYDX           |

### Schwab Target 2030 Index Fund (Series ID: S000054926)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172787 | Schwab Target 2030 Index Fund | SWYEX           |

### Schwab Target 2035 Index Fund (Series ID: S000054927)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172789 | Schwab Target 2035 Index Fund | SWYFX           |

### Schwab Target 2040 Index Fund (Series ID: S000054928)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172791 | Schwab Target 2040 Index Fund | SWYGX           |

### Schwab Target 2045 Index Fund (Series ID: S000054929)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000172793 | Schwab Target 2045 Index Fund | SWYHX           |

### Schwab Target 2065 Index Fund (Series ID: S000071108)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000225749 | Schwab Target 2065 Index Fund | SWYOX           |

### Schwab Target 2070 Index Fund (Series ID: S000101548)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000271751 | Schwab Target 2070 Index Fund | SWYPX           |

?xml version='1.0' encoding='ASCII'? N-CSR

------

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

------

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07704

------

Schwab Capital Trust – Schwab Target Index Funds

(Exact name of registrant as specified in charter)

------

425 Market Street, Suite 1700, San Francisco, California 94105

(Address of principal executive offices) (Zip code)

------

Omar Aguilar

Schwab Capital Trust – Schwab Target Index Funds

425 Market Street, Suite 1700, San Francisco, California 94105

(Name and address of agent for service)

------

Registrant's telephone number, including area code: (800) 648-5300

Date of fiscal year end: March 31

Date of reporting period: March 31, 2026

------

Item 1: Report(s) to Shareholders.

------

![](g145586g2img96c40fe41.jpg)

Annual Report \| March 31, 2026

Schwab Target 2010 Index Fund

Ticker Symbol: SWYAX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2010 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 9.25%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2010 Passive Composite Index (the composite index), returned 9.18%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2010 Index Fund \| Annual Report

REG127393-01 00324189

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g2lg_2mv4.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2010 Index Fund (08/25/2016)<br>1,2<br>| 9.25% | &nbsp;&nbsp;&nbsp;&nbsp;4.14% | &nbsp;&nbsp;&nbsp;&nbsp;5.42% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2010 Passive Composite Index | 9.18% | &nbsp;&nbsp;&nbsp;&nbsp;4.19% | &nbsp;&nbsp;&nbsp;&nbsp;5.48% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2010 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $60 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 20% |
| Advisory Fees Paid by the Fund | $17387 |
| Foreign Tax Paid and Passed Through | $8765 |
| Gross Income from Foreign Sources | $116090 |
| Dividends Received Deduction | 7.59% |
| Qualified Dividend Income | $264616 |
| Long Term Capital Gain Distribution | $404592 |
| Qualified Business Income (199A) | $48094 |
| Business Interest Deduction (163j) | 73.63% |

---

Asset Class Weightings % of Investments

![](g145586g2img8e1d9a8e2.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g2img77fb3a603.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2010 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2010 Index Fund \| Annual Report

------

![](g145586g3imgaf8590791.jpg)

Annual Report \| March 31, 2026

Schwab Target 2015 Index Fund

Ticker Symbol: SWYBX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2015 Index Fund\* | $4 | &nbsp;&nbsp;0.04% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 10.00%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2015 Passive Composite Index (the composite index), returned 9.85%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2015 Index Fund \| Annual Report

REG127394-01 00324190

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g3lg_2mv5.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2015 Index Fund (08/25/2016)<br>1,2<br>| 10.00% | &nbsp;&nbsp;&nbsp;&nbsp;4.48% | &nbsp;&nbsp;&nbsp;&nbsp;5.72% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2015 Passive Composite Index | 9.85% | &nbsp;&nbsp;&nbsp;&nbsp;4.52% | &nbsp;&nbsp;&nbsp;&nbsp;5.78% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2015 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $88 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 19% |
| Advisory Fees Paid by the Fund | $30514 |
| Foreign Tax Paid and Passed Through | $16056 |
| Gross Income from Foreign Sources | $212663 |
| Dividends Received Deduction | 8.59% |
| Qualified Dividend Income | $459782 |
| Long Term Capital Gain Distribution | $1033113 |
| Qualified Business Income (199A) | $82552 |
| Business Interest Deduction (163j) | 69.60% |

---

Asset Class Weightings % of Investments

![](g145586g3img5f08738b2.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g3imgb3d424763.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2015 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2015 Index Fund \| Annual Report

------

![](g145586g4img62539a391.jpg)

Annual Report \| March 31, 2026

Schwab Target 2020 Index Fund

Ticker Symbol: SWYLX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2020 Index Fund\* | $4 | &nbsp;&nbsp;0.04% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 10.41%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2020 Passive Composite Index (the composite index), returned 10.31%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2020 Index Fund \| Annual Report

REG127395-01 00324191

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g4lg_2ms3.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2020 Index Fund (08/25/2016)<br>1,2<br>| 10.41% | &nbsp;&nbsp;&nbsp;&nbsp;4.71% | &nbsp;&nbsp;&nbsp;&nbsp;6.19% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2020 Passive Composite Index | 10.31% | &nbsp;&nbsp;&nbsp;&nbsp;4.74% | &nbsp;&nbsp;&nbsp;&nbsp;6.23% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2020 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $286 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 15% |
| Advisory Fees Paid by the Fund | $101024 |
| Foreign Tax Paid and Passed Through | $58338 |
| Gross Income from Foreign Sources | $772675 |
| Dividends Received Deduction | 9.82% |
| Qualified Dividend Income | $1651655 |
| Long Term Capital Gain Distribution | $6976625 |
| Qualified Business Income (199A) | $292039 |
| Business Interest Deduction (163j) | 71.82% |

---

Asset Class Weightings % of Investments

![](g145586g4img6f9e3fc82.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g4imgf745e94d3.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2020 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2020 Index Fund \| Annual Report

------

![](g145586g5img921c25941.jpg)

Annual Report \| March 31, 2026

Schwab Target 2025 Index Fund

Ticker Symbol: SWYDX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026. You can find additional information about the fund at **www.schwabassetmanagement.com/prospectus**. You can also request this information by calling **1-866-414-6349** or by sending an email request to **orders@mysummaryprospectus.com**. If you purchase or hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2025 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 10.79%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2025 Passive Composite Index (the composite index), returned 10.64%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2025 Index Fund \| Annual Report

REG127396-01 00324192

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g5lg_2ms4.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2025 Index Fund (08/25/2016)<br>1,2<br>| 10.79% | &nbsp;&nbsp;&nbsp;&nbsp;5.13% | &nbsp;&nbsp;&nbsp;&nbsp;7.05% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2025 Passive Composite Index | 10.64% | &nbsp;&nbsp;&nbsp;&nbsp;5.18% | &nbsp;&nbsp;&nbsp;&nbsp;7.11% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2025 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $636 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 16% |
| Advisory Fees Paid by the Fund | $203387 |
| Foreign Tax Paid and Passed Through | $140910 |
| Gross Income from Foreign Sources | $1866327 |
| Dividends Received Deduction | 10.28% |
| Qualified Dividend Income | $3879806 |
| Long Term Capital Gain Distribution | $13540413 |
| Qualified Business Income (199A) | $679065 |
| Business Interest Deduction (163j) | 68.76% |

---

Asset Class Weightings % of Investments

![](g145586g5img6652c9612.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g5img7d649ec03.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2025 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2025 Index Fund \| Annual Report

------

![](g145586g6imgae77e5071.jpg)

Annual Report \| March 31, 2026

Schwab Target 2030 Index Fund

Ticker Symbol: SWYEX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2030 Index Fund\* | $4 | &nbsp;&nbsp;0.04% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 13.34%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2030 Passive Composite Index (the composite index), returned 13.14%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab Short-Term U.S. Treasury ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2030 Index Fund \| Annual Report

REG127397-01 00324193

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g6lg_2ms5.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2030 Index Fund (08/25/2016)<br>1,2<br>| 13.34% | &nbsp;&nbsp;&nbsp;&nbsp;6.27% | &nbsp;&nbsp;&nbsp;&nbsp;8.14% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2030 Passive Composite Index | 13.14% | &nbsp;&nbsp;&nbsp;&nbsp;6.29% | &nbsp;&nbsp;&nbsp;&nbsp;8.17% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2030 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1687 |
| Number of Holdings | 9 |
| Portfolio Turnover Rate | 12% |
| Advisory Fees Paid by the Fund | $544093 |
| Foreign Tax Paid and Passed Through | $574332 |
| Gross Income from Foreign Sources | $7077658 |
| Dividends Received Deduction | 14.35% |
| Qualified Dividend Income | $11932773 |
| Qualified Business Income (199A) | $1999359 |
| Business Interest Deduction (163j) | 55.32% |

---

Asset Class Weightings % of Investments

![](g145586g6imgcd037b792.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g6imgd54a15743.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2030 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2030 Index Fund \| Annual Report

------

![](g145586g7imgd7b86b3f1.jpg)

Annual Report \| March 31, 2026

Schwab Target 2035 Index Fund

Ticker Symbol: SWYFX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2035 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 15.17%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2035 Passive Composite Index (the composite index), returned 14.86%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. TIPS ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab Short-Term U.S. Treasury ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2035 Index Fund \| Annual Report

REG127399-01 00324194

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g7lg_2ms6.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2035 Index Fund (08/25/2016)<br>1,2<br>| 15.17% | &nbsp;&nbsp;&nbsp;&nbsp;7.07% | &nbsp;&nbsp;&nbsp;&nbsp;8.91% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2035 Passive Composite Index | 14.86% | &nbsp;&nbsp;&nbsp;&nbsp;7.05% | &nbsp;&nbsp;&nbsp;&nbsp;8.93% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2035 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1438 |
| Number of Holdings | 9 |
| Portfolio Turnover Rate | 11% |
| Advisory Fees Paid by the Fund | $434108 |
| Foreign Tax Paid and Passed Through | $606460 |
| Gross Income from Foreign Sources | $7347248 |
| Dividends Received Deduction | 18.21% |
| Qualified Dividend Income | $11994996 |
| Qualified Business Income (199A) | $1940459 |
| Business Interest Deduction (163j) | 44.32% |

---

Asset Class Weightings % of Investments

![](g145586g7imge383fe712.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g7imgd6f8aa543.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2035 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2035 Index Fund \| Annual Report

------

![](g145586g8img396de3811.jpg)

Annual Report \| March 31, 2026

Schwab Target 2040 Index Fund

Ticker Symbol: SWYGX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2040 Index Fund\* | $4 | &nbsp;&nbsp;0.04% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 16.62%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2040 Passive Composite Index (the composite index), returned 16.22%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab Short-Term U.S. Treasury ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2040 Index Fund \| Annual Report

REG127400-01 00324195

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g8lg_2ms7.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2040 Index Fund (08/25/2016)<br>1,2<br>| 16.62% | &nbsp;&nbsp;&nbsp;&nbsp;7.69% | &nbsp;&nbsp;&nbsp;&nbsp;9.55% |
| <br>Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2040 Passive Composite Index | 16.22% | &nbsp;&nbsp;&nbsp;&nbsp;7.66% | &nbsp;&nbsp;&nbsp;&nbsp;9.57% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2040 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1557 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $494835 |
| Foreign Tax Paid and Passed Through | $796857 |
| Gross Income from Foreign Sources | $9545625 |
| Dividends Received Deduction | 20.89% |
| Qualified Dividend Income | $15108340 |
| Qualified Business Income (199A) | $2383458 |
| Business Interest Deduction (163j) | 33.62% |

---

Asset Class Weightings % of Investments

![](g145586g8img0bcc1ab82.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g8img275df5b63.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2040 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2040 Index Fund \| Annual Report

------

![](g145586g9img4df61f301.jpg)

Annual Report \| March 31, 2026

Schwab Target 2045 Index Fund

Ticker Symbol: SWYHX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2045 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 17.90%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2045 Passive Composite Index (the composite index), returned 17.38%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab Short-Term U.S. Treasury ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2045 Index Fund \| Annual Report

REG127402-01 00324196

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g9lg_2ms8.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2045 Index Fund (08/25/2016)<br>1,2<br>| 17.90% | &nbsp;&nbsp;&nbsp;&nbsp;8.21% | &nbsp;&nbsp;&nbsp;&nbsp;10.06% |
| <br>Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2045 Passive Composite Index | 17.38% | &nbsp;&nbsp;&nbsp;&nbsp;8.16% | &nbsp;&nbsp;&nbsp;&nbsp;10.07% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2045 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1054 |
| Number of Holdings | 8 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $318436 |
| Foreign Tax Paid and Passed Through | $605208 |
| Gross Income from Foreign Sources | $7170610 |
| Dividends Received Deduction | 23.65% |
| Qualified Dividend Income | $10979833 |
| Qualified Business Income (199A) | $1699336 |
| Business Interest Deduction (163j) | 23.83% |

---

Asset Class Weightings % of Investments

![](g145586g9img11a604392.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g9imgd52049b93.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2045 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2045 Index Fund \| Annual Report

------

![](g145586g10img08d3a5c21.jpg)

Annual Report \| March 31, 2026

Schwab Target 2050 Index Fund

Ticker Symbol: SWYMX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2050 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 18.77%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2050 Passive Composite Index (the composite index), returned 18.23%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2050 Index Fund \| Annual Report

REG127401-01 00324197

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g10lg_2ms9.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2050 Index Fund (08/25/2016)<br>1,2<br>| 18.77% | &nbsp;&nbsp;&nbsp;&nbsp;8.54% | &nbsp;&nbsp;&nbsp;&nbsp;10.36% |
| <br>Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2050 Passive Composite Index | 18.23% | &nbsp;&nbsp;&nbsp;&nbsp;8.48% | &nbsp;&nbsp;&nbsp;&nbsp;10.37% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2050 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1430 |
| Number of Holdings | 7 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $421457 |
| Foreign Tax Paid and Passed Through | $909838 |
| Gross Income from Foreign Sources | $10674654 |
| Dividends Received Deduction | 24.81% |
| Qualified Dividend Income | $15528442 |
| Qualified Business Income (199A) | $2366223 |
| Business Interest Deduction (163j) | 15.51% |

---

Asset Class Weightings % of Investments

![](g145586g10imga14436b72.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g10img4db2d5413.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2050 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2050 Index Fund \| Annual Report

------

![](g145586g11img83cea8131.jpg)

Annual Report \| March 31, 2026

Schwab Target 2055 Index Fund

Ticker Symbol: SWYJX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2055 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 19.33%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2055 Passive Composite Index (the composite index), returned 18.71%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2055 Index Fund \| Annual Report

REG127403-01 00324198

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g11lg_2mv1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2055 Index Fund (08/25/2016)<br>1,2<br>| 19.33% | &nbsp;&nbsp;&nbsp;&nbsp;8.73% | &nbsp;&nbsp;&nbsp;&nbsp;10.58% |
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2055 Passive Composite Index | 18.71% | &nbsp;&nbsp;&nbsp;&nbsp;8.66% | &nbsp;&nbsp;&nbsp;&nbsp;10.57% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2055 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $984 |
| Number of Holdings | 7 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $275549 |
| Foreign Tax Paid and Passed Through | $650750 |
| Gross Income from Foreign Sources | $7594509 |
| Dividends Received Deduction | 25.81% |
| Qualified Dividend Income | $10812613 |
| Qualified Business Income (199A) | $1634145 |
| Business Interest Deduction (163j) | 10.91% |

---

Asset Class Weightings % of Investments

![](g145586g11imga3c823032.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g11img70acb3e03.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2055 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2055 Index Fund \| Annual Report

------

![](g145586g12img4160c5f21.jpg)

Annual Report \| March 31, 2026

Schwab Target 2060 Index Fund

Ticker Symbol: SWYNX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2060 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 19.69%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2060 Passive Composite Index (the composite index), returned 19.05%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2060 Index Fund \| Annual Report

REG127404-01 00324199

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (August 25, 2016 - March 31, 2026)

1,2

![](g145586g12lg_2mv2.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2060 Index Fund (08/25/2016)<br>1,2<br>| 19.69% | &nbsp;&nbsp;&nbsp;&nbsp;8.89% | &nbsp;&nbsp;&nbsp;&nbsp;10.72% |
| <br>Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;13.46% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;1.49% |
| Target 2060 Passive Composite Index | 19.05% | &nbsp;&nbsp;&nbsp;&nbsp;8.81% | &nbsp;&nbsp;&nbsp;&nbsp;10.72% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

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.

2Schwab Target 2060 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $1146 |
| Number of Holdings | 6 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $323170 |
| Foreign Tax Paid and Passed Through | $777007 |
| Gross Income from Foreign Sources | $9035776 |
| Dividends Received Deduction | 26.91% |
| Qualified Dividend Income | $12933408 |
| Qualified Business Income (199A) | $1944649 |
| Business Interest Deduction (163j) | 7.78% |

---

Asset Class Weightings % of Investments

![](g145586g12img573a6da12.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g12img9593bc513.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2060 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2060 Index Fund \| Annual Report

------

![](g145586g13img8b70e3bf1.jpg)

Annual Report \| March 31, 2026

Schwab Target 2065 Index Fund

Ticker Symbol: SWYOX

------

This annual shareholder report contains important information about the fund for the period of April 1, 2025, to March 31, 2026.

You

can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request this

information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase or

hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2065 Index Fund\* | $3 | &nbsp;&nbsp;0.03% |

---

\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended March 31, 2026, the fund returned 20.07%. The Dow Jones U.S. Total Stock Market

Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index, which

provides a broad measure of bond market performance, returned 18.14% and 4.35%, respectively. The fund's internally calculated

comparative index, the Target 2065 Passive Composite Index (the composite index), returned 19.40%.

■

Asset allocations were broadly in line with those of the composite index

■

Top contributors to total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no detractors from the return of the fund. However, the smallest contributors to total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2065 Index Fund \| Annual Report

REG127405-01 00324200

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (February 25, 2021 - March 31, 2026)

![](g145586g13lg_2mv6.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| Fund and Inception Date | 1 Year | 5 Years | Since Inception |
| Schwab Target 2065 Index Fund (02/25/2021)<br>1<br>| 20.07% | &nbsp;&nbsp;&nbsp;&nbsp;8.99% | &nbsp;&nbsp;&nbsp;&nbsp;9.26% |
| <br>Dow Jones U.S. Total Stock Market Index<br>SM<br>| 18.14% | &nbsp;&nbsp;&nbsp;&nbsp;10.76% | &nbsp;&nbsp;&nbsp;&nbsp;11.24% |
| Bloomberg US Aggregate Bond Index | 4.35% | &nbsp;&nbsp;&nbsp;&nbsp;0.31% | &nbsp;&nbsp;&nbsp;&nbsp;0.22% |
| Target 2065 Passive Composite Index | 19.40% | &nbsp;&nbsp;&nbsp;&nbsp;8.91% | &nbsp;&nbsp;&nbsp;&nbsp;9.06% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

2Schwab Target 2065 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $382 |
| Number of Holdings | 6 |
| Portfolio Turnover Rate | 10% |
| Advisory Fees Paid by the Fund | $92090 |
| Foreign Tax Paid and Passed Through | $242252 |
| Gross Income from Foreign Sources | $2805470 |
| Dividends Received Deduction | 28.28% |
| Qualified Dividend Income | $4038283 |
| Long Term Capital Gain Distribution | $54029 |
| Qualified Business Income (199A) | $606890 |
| Business Interest Deduction (163j) | 4.48% |

---

Asset Class Weightings % of Investments

![](g145586g13img6b14caf72.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g13imga9b530a43.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2065 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2065 Index Fund \| Annual Report

------

![](g145586g14img9bece2df1.jpg)

Annual Report \| March 31, 2026

Schwab Target 2070 Index Fund

Ticker Symbol: SWYPX

------

This annual shareholder report contains important information about the fund for the period of February 26, 2026, to March 31, 2026.

You can find additional information about the fund at

www.schwabassetmanagement.com/prospectus

. You can also request

this information by calling

1-866-414-6349

or by sending an email request to

orders@mysummaryprospectus.com

. If you purchase

or hold fund shares through a financial intermediary, the fund's prospectus, Statement of Additional Information (SAI), reports to

shareholders and other information about the fund are available from your financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

FUND COSTS FOR THE LAST year ENDED March 31, 2026

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | COSTS OF A<br>$10,000 INVESTMENT<br>| &nbsp;&nbsp;COSTS PAID AS A<br>PERCENTAGE OF A<br>$10,000 INVESTMENT<br>|
| Schwab Target 2070 Index Fund\*,\*\* | $0 | &nbsp;&nbsp;0.04%<br>\*\*\*<br>|

---

\*

For the period from 02/26/2026 (commencement of operations) through 03/31/2026. Expenses for a full reporting period would be higher than the figure shown.

\*\*

Expenses were reduced by a contractual fee waiver in effect for so long as the investment adviser serves as adviser to the fund.

\*\*\*

Annualized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE

For the reporting period of February 26, 2026, through March 31, 2026, the fund returned -6.60%. The Dow Jones U.S. Total Stock

Market Index<sup>SM</sup>

, which provides a broad measure of equity market performance, and the Bloomberg US Aggregate Bond Index,

which provides a broad measure of bond market performance, returned -5.81% and -1.39%, respectively. The fund's internally

calculated comparative index, the Target 2070 Passive Composite Index (the composite index), returned -7.13%.

■

Asset allocations were broadly in line with those of the composite index

■

Top detractors from total return:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Large-Cap ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab International Equity ETF

■

Over the reporting period, there were no contributors to the return of the fund. However, the smallest detractors from total return

were:

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. Aggregate Bond ETF

&nbsp;&nbsp;&nbsp;&nbsp;

● Schwab U.S. REIT ETF

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2070 Index Fund \| Annual Report

REG130344-00 00324205

------

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/prospectus

.

Performance of Hypothetical $10,000 Investment (February 26, 2026 - March 31, 2026)

![](g145586g14lg_2mv9.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Average Annual Total Returns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Fund and Inception Date | Since Inception |
| Schwab Target 2070 Index Fund (02/26/2026)<br>1<br>| -6.60%<br>2<br>|
| Dow Jones U.S. Total Stock Market Index<br>SM<br>| -5.81%<br>2<br>|
| Bloomberg US Aggregate Bond Index | -1.39%<br>2<br>|
| Target 2070 Passive Composite Index | -7.13%<br>2<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 www.schwabassetmanagement.com/glossary.

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.

Total returns shown are since the fund's inception date of February 26, 2026.

2Schwab Target 2070 Index Fund \| Annual Report

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Statistics

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| Net Assets (millions) | $30 |
| Number of Holdings | 6 |
| Portfolio Turnover Rate<br>(not annualized)<br>| 0% |
| Advisory Fees Paid by the Fund | $1196 |

---

Asset Class Weightings % of Investments

![](g145586g14img3ec32ca62.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Top Holdings % of Net Assets

![](g145586g14imga3b0d5583.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Portfolio holdings may have changed since the report date.

Schwab Target 2070 Index Fund \| Annual Report

------

AVAILABILITY OF ADDITIONAL INFORMATION

You can find the fund's prospectus, Statement of Additional Information (SAI), reports to shareholders, financial information,

holdings, certain tax information, proxy voting information, and other information about the fund online at

www.schwabassetmanagement.com/prospectus

.

Proxy Voting Policies, Procedures and Results

A description of the proxy voting policies and procedures used to determine how to vote proxies on behalf of the funds is available

without charge, upon request, by visiting the Schwab Funds' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab Funds at 1-877-824-5615.

Information regarding how a fund voted proxies relating to portfolio securities during the most recent twelve-month period ended

June 30 is available, without charge, by visiting the fund's website at

www.schwabassetmanagement.com/prospectus

or the

SEC's website at

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

.

4Schwab Target 2070 Index Fund \| Annual Report

------

#### Item 2: Code of Ethics.
(a) Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other persons who perform a similar function, regardless of whether these individuals are employed by Registrant or a third party.

(c) During the period covered by the report, no amendments were made to the provisions of this code of ethics.

(d) During the period covered by the report, Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics.

(e) Not applicable.

(f)(1) Registrant has filed this code of ethics as an exhibit pursuant to Item 19(a)(1) of Form N-CSR.

#### Item 3: Audit Committee Financial Expert.
Registrant's Board of Trustees has determined that Kimberly S. Patmore, Michael J. Beer and J. Derek Penn, each currently serving on its audit, compliance and valuation committee, are each an "audit committee financial expert," as such term is defined in Item 3 of Form N-CSR. Each member of Registrant's audit, compliance and valuation committee is "independent" under the standards set forth in Item 3 of Form N-CSR.

The designation of each of Ms. Patmore, Mr. Beer and Mr. Penn as an "audit committee financial expert" pursuant to Item 3 of Form N-CSR does not (i) impose upon such individual any duties, obligations, or liability that are greater than the duties, obligations and liability imposed upon such individual as a member of Registrant's audit, compliance and valuation committee or Board of Trustees in the absence of such designation; and (ii) affect the duties, obligations or liability of any other member of Registrant's audit, compliance and valuation committee or Board of Trustees.

#### Item 4: Principal Accountant Fees and Services.
Registrant is composed of fifty-four operational series. Thirteen series have a fiscal year-end of March 31, three series have a fiscal year-end of December 31, thirty-seven series have a fiscal year-end of October 31, and one series has a fiscal year-end of the last day of February. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to the fifty-four operational series during 2025/2026 and the fifty-two operational series during 2024/2025, based on their respective 2025/2026 and 2024/2025 fiscal years, as applicable.

The following table presents fees billed by the principal accountant in each of the last two fiscal years for the services rendered to the Funds:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (a)Audit Fees<sup>1</sup> | (a)Audit Fees<sup>1</sup> | (b) Audit-Related Fees<sup>2</sup> | (b) Audit-Related Fees<sup>2</sup> | (c) Tax Fees<sup>3</sup> | (c) Tax Fees<sup>3</sup> | (d) All Other Fees | (d) All Other Fees |
| Fiscal Year<br>2025/2026 | Fiscal Year<br>2024/2023 | Fiscal Year<br>2025/2026 | Fiscal Year<br>2024/2025 | Fiscal Year<br>2025/2026 | Fiscal Year<br>2024/2025 | Fiscal Year<br>2025/2026 | Fiscal Year<br>2024/2025 |
| $1301550 | $1292600 | $98580 | $95400 | $174105 | $170820 | $0 | $0 |

---

<sup>1</sup> The nature of the services includes audit of the registrant's annual financial statements and normally provided services in connection with regulatory filings for those fiscal years.

<sup>2</sup> The nature of the services includes assurance and related services to the performance of the audit for compliance with Rule 17f-2 under the Investment Company Act of 1940.

<sup>3</sup> The tax fees consist of professional services relating to tax compliance, tax advice, tax planning, and the preparation of the Registrant's tax returns.

------

**(e) (1)** Registrant's audit, compliance and valuation committee does not have pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

**(2)** There were no services described in each of paragraphs (b) through (d) above that were approved by Registrant's audit, compliance and valuation committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

**(f)** Not applicable.

**(g)** Below are the aggregate non-audit fees billed in each of the last two fiscal years by Registrant's principal accountant for services rendered to Registrant, to Registrant's investment adviser, and to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant.

---

| | |
|:---|:---|
| 2025/2026: $2,186,868 | 2024/2025: $1,533,328 |

---

**(h)** During the past fiscal year, all non-audit services provided by Registrant's principal accountant to either Registrant's investment adviser or to any entity controlling, controlled by, or under common control with Registrant's investment adviser that provides ongoing services to Registrant were pre-approved. Included in the audit, compliance and valuation committee's pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant's independence.

**(i)** Not applicable.

**(j)** Not applicable.

#### Item 5: Audit Committee of Listed Registrants.
Not applicable.

#### Item 6: Schedule of Investments.
The schedules of investments are included under Item 7 of this Form.

#### Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.

------

![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](g334430imgd9badabc1.jpg)

**Annual Holdings and Financial Statements** \| March 31, 2026

Schwab Target Index Funds

------

---

| | |
|:---|:---|
| Schwab Target 2010 Index Fund | **SWYAX** |
| Schwab Target 2015 Index Fund | **SWYBX** |
| Schwab Target 2020 Index Fund | **SWYLX** |
| Schwab Target 2025 Index Fund | **SWYDX** |
| Schwab Target 2030 Index Fund | **SWYEX** |
| Schwab Target 2035 Index Fund | **SWYFX** |
| Schwab Target 2040 Index Fund | **SWYGX** |
| Schwab Target 2045 Index Fund | **SWYHX** |
| Schwab Target 2050 Index Fund | **SWYMX** |
| Schwab Target 2055 Index Fund | **SWYJX** |
| Schwab Target 2060 Index Fund | **SWYNX** |
| Schwab Target 2065 Index Fund | **SWYOX** |
| Schwab Target 2070 Index Fund | **SWYPX** |

---

------

**In This Report**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **[Item 7 - Financial Statements and Financial Highlights for Open-End](#xx_d2acd8b2-2819-4c77-aa86-94e49fa8ecda_1)**<br> **[Management Investment Companies](#xx_d2acd8b2-2819-4c77-aa86-94e49fa8ecda_1)** <br>|  |
| [Financial Statements and Portfolio Holdings](#xx_d2acd8b2-2819-4c77-aa86-94e49fa8ecda_1) <br>|  |
| [Schwab Target 2010 Index Fund](#xx_d2acd8b2-2819-4c77-aa86-94e49fa8ecda_1) | 2 |
| [Schwab Target 2015 Index Fund](#xx_9f873d6a-a676-4778-a4a2-16552ac95c20_1) | 7 |
| [Schwab Target 2020 Index Fund](#xx_5a43bbab-4ff5-4eb9-a6ac-5277212b9419_1) | 12 |
| [Schwab Target 2025 Index Fund](#xx_0b8d40be-47c6-469e-94ee-6a9c0d866da7_1) | 17 |
| [Schwab Target 2030 Index Fund](#xx_090351b6-e0df-4cc8-b24a-4360908fb8d7_1) | 22 |
| [Schwab Target 2035 Index Fund](#xx_54f0c7c7-2894-4713-8e52-e1953b50f8fe_1) | 27 |
| [Schwab Target 2040 Index Fund](#xx_c58634be-fad5-442b-a6f3-2c7b0b3797f6_1) | 32 |
| [Schwab Target 2045 Index Fund](#xx_df67bdc1-4167-40f4-81c7-a73de9d60c90_1) | 37 |
| [Schwab Target 2050 Index Fund](#xx_53cc3e6a-8b6b-418f-b01a-31399e643f5d_1) | 42 |
| [Schwab Target 2055 Index Fund](#xx_9d302332-e5d1-4a27-8b91-968e7afc0532_1) | 47 |
| [Schwab Target 2060 Index Fund](#xx_1ab9a403-4ecb-4994-a09a-2d363d911992_1) | 52 |
| [Schwab Target 2065 Index Fund](#xx_d6341e32-e316-421d-8c68-a21ceae75bed_1)  | 57 |
| [Schwab Target 2070 Index Fund](#xx_8e4e1629-f943-4fc7-86ed-c1561f21cae4_1) | 62 |
| [Financial Notes](#xx_8187d866-3a41-43a0-8e83-860f69599ea4_1) | 67 |
| [Report of Independent Registered Public Accounting Firm](#xx_a488a009-ee09-4d5e-869d-7a1432a2cee4_1) | 75 |
| **[Item 8 – Changes in and Disagreements with Accountants for Open-End](#xx_b8d78334-05e8-4dcf-a13b-007cd3c2a44a_1)**<br> **[Management Investment Companies](#xx_b8d78334-05e8-4dcf-a13b-007cd3c2a44a_1)**<br>| 76 |
| **[Item 9 – Proxy Disclosures for Open-End Management Investment](#xx_bca940b0-f6ce-48bc-841b-3be6e7f72a05_1)**<br> **[Companies](#xx_bca940b0-f6ce-48bc-841b-3be6e7f72a05_1)**<br>| 77 |
| **[Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End](#xx_021a172c-d8d7-45ea-93fa-8c74e5a289c8_1)**<br> **[Management Investment Companies](#xx_021a172c-d8d7-45ea-93fa-8c74e5a289c8_1)**<br>| 78 |
| **[Item 11 - Statement Regarding Basis for Approval of Investment Advisory](#xx_26283a77-9144-47fa-bdb4-52d48ab3b402_1)**<br> **[Contract](#xx_26283a77-9144-47fa-bdb4-52d48ab3b402_1)** <br>|  |
| [Investment Advisory Agreement Approval](#xx_26283a77-9144-47fa-bdb4-52d48ab3b402_1) | 79  |

---

Fund investment adviser: Charles Schwab Investment Management, Inc., dba Schwab Asset Management<sup>®</sup>

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

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**1**

------

Schwab Target 2010 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $12.46 | &nbsp;&nbsp; $12.22 | &nbsp;&nbsp; $11.45 | &nbsp;&nbsp; $12.37 | &nbsp;&nbsp; $12.49 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.42 | 0.39 | 0.34 | 0.28 | 0.25 |
| Net realized and unrealized gains (losses) | 0.74 | 0.31 | 0.77 | &nbsp;&nbsp; (0.90)<br>| &nbsp;&nbsp; (0.04)<br>|
| Total from investment operations | 1.16 | 0.70 | 1.11 | &nbsp;&nbsp; (0.62)<br>| 0.21 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.41)<br>| &nbsp;&nbsp; (0.40)<br>| &nbsp;&nbsp; (0.34)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.25)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; (0.14)<br>| &nbsp;&nbsp; (0.06)<br>| &nbsp;&nbsp; — | &nbsp;&nbsp; (0.03)<br>| &nbsp;&nbsp; (0.08)<br>|
| Total distributions | &nbsp;&nbsp; (0.55)<br>| &nbsp;&nbsp; (0.46)<br>| &nbsp;&nbsp; (0.34)<br>| &nbsp;&nbsp; (0.30)<br>| &nbsp;&nbsp; (0.33)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $13.07 | &nbsp;&nbsp; $12.46 | &nbsp;&nbsp; $12.22 | &nbsp;&nbsp; $11.45 | &nbsp;&nbsp; $12.37 |
| Total return | 9.25<br> %<br>| 5.83<br> %<br>| 9.77<br> %<br>| &nbsp;&nbsp; (4.96<br> %)<br>| 1.55<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 3.20<br> %<br>| 3.13<br> %<br>| 2.95<br> %<br>| 2.49<br> %<br>| 1.90<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 20<br> %<br>| &nbsp;&nbsp; 26<br> %<br>| &nbsp;&nbsp; 28<br> %<br>| &nbsp;&nbsp; 15<br> %<br>| &nbsp;&nbsp; 27<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $60 | &nbsp;&nbsp; $52 | &nbsp;&nbsp; $45 | &nbsp;&nbsp; $44 | &nbsp;&nbsp; $55 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.05%, 0.05%, 0.04%, and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**2**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2010 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.2% OF NET ASSETS |
| **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** | **U.S. Stocks 24.1%** |
| **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** | **Large-Cap 22.9%** |
| Schwab U.S. Large-Cap ETF  | $12274537 | $3416190 | ($3847468)<br>| $316363 | $1561496 | $13721118 | 535145 | $154233 |
| **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** | **Small-Cap 1.2%** |
| Schwab U.S. Small-Cap ETF  | 691349 | 77077 | (184097)<br>| 12920 | 146704 | 743953 | 25583 | 9332 |
|  |  |  |  |  |  | 14465071 |  |  |
| **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** | **International Stocks 7.4%** |
| **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** | **Developed Markets 7.4%** |
| Schwab International Equity ETF  | 3795564 | 1275109 | (1550412)<br>| 113253 | 806141 | 4439655 | 179380 | 144519 |
| **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** | **Real Estate 2.0%** |
| **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** | **U.S. REITs 2.0%** |
| Schwab U.S. REIT ETF  | 1248828 | 479468 | (533616)<br>| 10529 | (4692)<br>| 1200517 | 55864 | 39734 |
| **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** | **Fixed Income 63.2%** |
| **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** | **Inflation-Protected Bond 6.7%** |
| Schwab U.S. TIPS ETF  | 3390211 | 1041461 | (400466)<br>| (11136)<br>| (26282)<br>| 3993788 | 150086 | 142182 |
| **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** | **Intermediate-Term Bond 49.3%** |
| Schwab U.S. Aggregate Bond ETF  | 25207089 | 8268672 | (3882875)<br>| (359503)<br>| 387791 | 29621174 | 1275675 | 1107664 |
| **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** | **Treasury Bond 7.2%** |
| Schwab Short-Term U.S. Treasury ETF  | 3643138 | 1290883 | (610792)<br>| (13055)<br>| (1715)<br>| 4308459 | 177522 | 157184 |
|  |  |  |  |  |  | 37923421 |  |  |
| **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** | **Money Market Funds 2.5%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 1237435 | 301596 |  |  |  | 1539031 | 1539031 | 51830 |
| **Total Affiliated Underlying Funds** <br>**(Cost $49,783,974)**<br>| **$51488151** | **$16150456** | **($11009726)**<br>| **$69371** | **$2869443** | **$59567695** |  | **$1806678** |
| **Total Investments in Securities** <br>**(Cost $49,783,974)**<br>|  |  |  |  |  | **$59567695** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**3**

------

Schwab Target 2010 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $49,783,974)  |  | $59567695 |
| Cash |  | 465877 |
| Receivables: |  |  |
| Investments sold |  | 636116 |
| Fund shares sold |  | 2588 |
| Dividends | + | 2377 |
| **Total assets** |  | **60674653** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 628537 |
| Fund shares redeemed |  | 9430 |
| Investment adviser fees | + | 1587 |
| **Total liabilities** |  | **639554** |
| **Net assets** |  | **$60035099** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $52700358 |
| Total distributable earnings | + | 7334741 |
| **Net assets** |  | **$60035099** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $60035099 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4593153 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $13.07 |

---

*See financial notes*

**4**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2010 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $1806673 |
| Other Interest | + | 7774 |
| **Total investment income**  |  | **1814447** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 44931 |
| **Total expenses** |  | **44931** |
| Expense reduction | – | 27544 |
| **Net expenses** | – | **17387** |
| **Net investment income** |  | **1797060** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 5 |
| Net realized gains on sales of securities - affiliated issuers  | + | 69371 |
| **Net realized gains** |  | **69376** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **2869443** |
| **Net realized and unrealized gains** |  | **2938819** |
| **Increase in net assets resulting from operations** |  | **$4735879** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**5**

------

Schwab Target 2010 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $1797060 | &nbsp;&nbsp;&nbsp; $1538014 |
| Net realized gains (losses) |  | 69376 | &nbsp;&nbsp;&nbsp; (408764)<br>|
| Net change in unrealized appreciation (depreciation) | + | 2869443 | &nbsp;&nbsp;&nbsp; 1583008 |
| **Increase in net assets resulting from operations** |  | **$4735879** | &nbsp;&nbsp;&nbsp; **$2712258** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($2346636)**<br>| &nbsp;&nbsp;&nbsp; **($1849623)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 1219599 | &nbsp;&nbsp;&nbsp; $16183615 | &nbsp;&nbsp;&nbsp; 1333182 | &nbsp;&nbsp;&nbsp; $16876705 |
| Shares reinvested |  | 155928 | &nbsp;&nbsp;&nbsp; 2058248 | &nbsp;&nbsp;&nbsp; 133021 | &nbsp;&nbsp;&nbsp; 1640151 |
| Shares redeemed | + | (951598)<br>| &nbsp;&nbsp;&nbsp; (12546998)<br>| &nbsp;&nbsp;&nbsp; (1017293)<br>| &nbsp;&nbsp;&nbsp; (12884591)<br>|
| **Net transactions in fund shares**  |  | **423929** | &nbsp;&nbsp;&nbsp; **$5694865** | &nbsp;&nbsp;&nbsp; **448910** | &nbsp;&nbsp;&nbsp; **$5632265** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 4169224 | &nbsp;&nbsp;&nbsp; $51950991 | &nbsp;&nbsp;&nbsp; 3720314 | &nbsp;&nbsp;&nbsp; $45456091 |
| Total increase | + | 423929 | &nbsp;&nbsp;&nbsp; 8084108 | &nbsp;&nbsp;&nbsp; 448910 | &nbsp;&nbsp;&nbsp; 6494900 |
| **End of period** |  | **4593153** | &nbsp;&nbsp;&nbsp; **$60035099** | &nbsp;&nbsp;&nbsp; **4169224** | &nbsp;&nbsp;&nbsp; **$51950991** |

---

*See financial notes*

**6**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2015 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $12.73 | &nbsp;&nbsp; $12.46 | &nbsp;&nbsp; $11.54 | &nbsp;&nbsp; $12.48 | &nbsp;&nbsp; $12.58 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.42 | 0.39 | 0.34 | 0.28 | 0.25 |
| Net realized and unrealized gains (losses) | 0.86 | 0.34 | 0.87 | &nbsp;&nbsp; (0.94)<br>| 0.01 <br><sup>2</sup><br>|
| Total from investment operations | 1.28 | 0.73 | 1.21 | &nbsp;&nbsp; (0.66)<br>| 0.26 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.41)<br>| &nbsp;&nbsp; (0.41)<br>| &nbsp;&nbsp; (0.29)<br>| &nbsp;&nbsp; (0.26)<br>| &nbsp;&nbsp; (0.25)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; (0.20)<br>| &nbsp;&nbsp; (0.05)<br>| &nbsp;&nbsp; — | &nbsp;&nbsp; (0.02)<br>| &nbsp;&nbsp; (0.11)<br>|
| Total distributions | &nbsp;&nbsp; (0.61)<br>| &nbsp;&nbsp; (0.46)<br>| &nbsp;&nbsp; (0.29)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.36)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $13.40 | &nbsp;&nbsp; $12.73 | &nbsp;&nbsp; $12.46 | &nbsp;&nbsp; $11.54 | &nbsp;&nbsp; $12.48 |
| Total return | 10.00<br> %<br>| 5.91<br> %<br>| 10.54<br> %<br>| &nbsp;&nbsp; (5.13<br> %)<br>| 1.92<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>3</sup> <br>| 0.04<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>4</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>3</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>4</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 3.12<br> %<br>| 3.05<br> %<br>| 2.86<br> %<br>| 2.48<br> %<br>| 1.91<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 19<br> %<br>| &nbsp;&nbsp; 24<br> %<br>| &nbsp;&nbsp; 22<br> %<br>| &nbsp;&nbsp; 18<br> %<br>| &nbsp;&nbsp; 23<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $88 | &nbsp;&nbsp; $80 | &nbsp;&nbsp; $74 | &nbsp;&nbsp; $57 | &nbsp;&nbsp; $75 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 fund transactions in relation to fluctuating market values. 

<sup>3</sup> 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%, 0.05%, 0.05%, 0.04% and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>4</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**7**

------

Schwab Target 2015 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.7% OF NET ASSETS |
| **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** | **U.S. Stocks 27.3%** |
| **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** | **Large-Cap 25.8%** |
| Schwab U.S. Large-Cap ETF  | $21121794 | $4029810 | ($5617596)<br>| $715389 | $2545691 | $22795088 | 889044 | $261055 |
| **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** | **Small-Cap 1.5%** |
| Schwab U.S. Small-Cap ETF  | 1251209 | 162260 | (363958)<br>| 41384 | 253968 | 1344863 | 46247 | 16713 |
|  |  |  |  |  |  | 24139951 |  |  |
| **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** | **International Stocks 8.8%** |
| **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** | **Developed Markets 8.8%** |
| Schwab International Equity ETF  | 6897959 | 1854296 | (2645426)<br>| 303796 | 1381616 | 7792241 | 314838 | 264740 |
| **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** | **Real Estate 2.3%** |
| **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** | **U.S. REITs 2.3%** |
| Schwab U.S. REIT ETF  | 2197010 | 638805 | (825919)<br>| 26895 | (11423)<br>| 2025368 | 94247 | 68704 |
| **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** | **Fixed Income 59.2%** |
| **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** | **Inflation-Protected Bond 6.2%** |
| Schwab U.S. TIPS ETF  | 4892931 | 1142836 | (511965)<br>| (7655)<br>| (45796)<br>| 5470351 | 205575 | 203970 |
| **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** | **Intermediate-Term Bond 46.4%** |
| Schwab U.S. Aggregate Bond ETF  | 36684537 | 9487473 | (5317396)<br>| (420504)<br>| 500962 | 40935072 | 1762923 | 1589129 |
| **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** | **Treasury Bond 6.6%** |
| Schwab Short-Term U.S. Treasury ETF  | 5222585 | 1337864 | (687520)<br>| (13546)<br>| (5168)<br>| 5854215 | 241212 | 222110 |
|  |  |  |  |  |  | 52259638 |  |  |
| **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** | **Money Market Funds 2.1%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 1561708 | 314669 |  |  |  | 1876377 | 1876377 | 64863 |
| **Total Affiliated Underlying Funds** <br>**(Cost $71,453,020)**<br>| **$79829733** | **$18968013** | **($15969780)**<br>| **$645759** | **$4619850** | **$88093575** |  | **$2691284** |
| **Total Investments in Securities** <br>**(Cost $71,453,020)**<br>|  |  |  |  |  | **$88093575** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**8**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2015 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $71,453,020)  |  | $88093575 |
| Cash |  | 667661 |
| Receivables: |  |  |
| Investments sold |  | 889406 |
| Fund shares sold |  | 90980 |
| Dividends | + | 2898 |
| **Total assets** |  | **89744520** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 1108256 |
| Fund shares redeemed |  | 304921 |
| Investment adviser fees | + | 2928 |
| **Total liabilities** |  | **1416105** |
| **Net assets** |  | **$88328415** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $74533404 |
| Total distributable earnings | + | 13795011 |
| **Net assets** |  | **$88328415** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $88328415 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6593420 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $13.40 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**9**

------

Schwab Target 2015 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $2691278 |
| Other Interest | + | 10214 |
| **Total investment income**  |  | **2701492** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 68548 |
| **Total expenses** |  | **68548** |
| Expense reduction | – | 38034 |
| **Net expenses** | – | **30514** |
| **Net investment income** |  | **2670978** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 6 |
| Net realized gains on sales of securities - affiliated issuers  | + | 645759 |
| **Net realized gains** |  | **645765** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **4619850** |
| **Net realized and unrealized gains** |  | **5265615** |
| **Increase in net assets resulting from operations** |  | **$7936593** |

---

*See financial notes*

**10**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2015 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $2670978 | &nbsp;&nbsp;&nbsp; $2344988 |
| Net realized gains (losses) |  | 645765 | &nbsp;&nbsp;&nbsp; (322707)<br>|
| Net change in unrealized appreciation (depreciation) | + | 4619850 | &nbsp;&nbsp;&nbsp; 2263233 |
| **Increase in net assets resulting from operations** |  | **$7936593** | &nbsp;&nbsp;&nbsp; **$4285514** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($3940441)**<br>| &nbsp;&nbsp;&nbsp; **($2728595)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 1348523 | &nbsp;&nbsp;&nbsp; $18469834 | &nbsp;&nbsp;&nbsp; 1621242 | &nbsp;&nbsp;&nbsp; $20847319 |
| Shares reinvested |  | 267638 | &nbsp;&nbsp;&nbsp; 3623817 | &nbsp;&nbsp;&nbsp; 205345 | &nbsp;&nbsp;&nbsp; 2591456 |
| Shares redeemed | + | (1337049)<br>| &nbsp;&nbsp;&nbsp; (18153260)<br>| &nbsp;&nbsp;&nbsp; (1416897)<br>| &nbsp;&nbsp;&nbsp; (18203277)<br>|
| **Net transactions in fund shares**  |  | **279112** | &nbsp;&nbsp;&nbsp; **$3940391** | &nbsp;&nbsp;&nbsp; **409690** | &nbsp;&nbsp;&nbsp; **$5235498** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 6314308 | &nbsp;&nbsp;&nbsp; $80391872 | &nbsp;&nbsp;&nbsp; 5904618 | &nbsp;&nbsp;&nbsp; $73599455 |
| Total increase | + | 279112 | &nbsp;&nbsp;&nbsp; 7936543 | &nbsp;&nbsp;&nbsp; 409690 | &nbsp;&nbsp;&nbsp; 6792417 |
| **End of period** |  | **6593420** | &nbsp;&nbsp;&nbsp; **$88328415** | &nbsp;&nbsp;&nbsp; **6314308** | &nbsp;&nbsp;&nbsp; **$80391872** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**11**

------

Schwab Target 2020 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $13.18 | &nbsp;&nbsp; $13.04 | &nbsp;&nbsp; $12.04 | &nbsp;&nbsp; $13.01 | &nbsp;&nbsp; $13.05 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.43 | 0.40 | 0.35 | 0.29 | 0.26 |
| Net realized and unrealized gains (losses) | 0.95 | 0.37 | 0.98 | &nbsp;&nbsp; (0.98)<br>| 0.03 |
| Total from investment operations | 1.38 | 0.77 | 1.33 | &nbsp;&nbsp; (0.69)<br>| 0.29 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.45)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.25)<br>| &nbsp;&nbsp; (0.26)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; (0.36)<br>| &nbsp;&nbsp; (0.18)<br>| &nbsp;&nbsp; — | &nbsp;&nbsp; (0.03)<br>| &nbsp;&nbsp; (0.07)<br>|
| Total distributions | &nbsp;&nbsp; (0.79)<br>| &nbsp;&nbsp; (0.63)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.33)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $13.77 | &nbsp;&nbsp; $13.18 | &nbsp;&nbsp; $13.04 | &nbsp;&nbsp; $12.04 | &nbsp;&nbsp; $13.01 |
| Total return | 10.41<br> %<br>| 5.94<br> %<br>| 11.14<br> %<br>| &nbsp;&nbsp; (5.17<br> %)<br>| 2.13<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.04<br> %<br>| 0.04<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 3.06<br> %<br>| 2.99<br> %<br>| 2.84<br> %<br>| 2.45<br> %<br>| 1.92<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 15<br> %<br>| &nbsp;&nbsp; 16<br> %<br>| &nbsp;&nbsp; 21<br> %<br>| &nbsp;&nbsp; 18<br> %<br>| &nbsp;&nbsp; 18<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $286 | &nbsp;&nbsp; $272 | &nbsp;&nbsp; $276 | &nbsp;&nbsp; $250 | &nbsp;&nbsp; $287 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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%, 0.04%, 0.05%, 0.04%, and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**12**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2020 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS |
| **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** | **U.S. Stocks 29.2%** |
| **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** | **Large-Cap 27.5%** |
| Schwab U.S. Large-Cap ETF  | $75875226 | $9628070 | ($18492351)<br>| $3761942 | $7900325 | $78673212 | 3068378 | $917510 |
| **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** | **Small-Cap 1.7%** |
| Schwab U.S. Small-Cap ETF  | 4643076 | 275390 | (1181176)<br>| 232219 | 843435 | 4812944 | 165507 | 60998 |
|  |  |  |  |  |  | 83486156 |  |  |
| **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** | **International Stocks 9.9%** |
| **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** | **Developed Markets 9.9%** |
| Schwab International Equity ETF  | 26025238 | 4224312 | (8295335)<br>| 1918842 | 4348551 | 28221608 | 1140267 | 961888 |
| **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** | **Real Estate 2.5%** |
| **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** | **U.S. REITs 2.5%** |
| Schwab U.S. REIT ETF  | 7997289 | 1977539 | (2951836)<br>| 142103 | (80164)<br>| 7084931 | 329685 | 242729 |
| **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** | **Fixed Income 56.1%** |
| **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** | **Inflation-Protected Bond 5.9%** |
| Schwab U.S. TIPS ETF  | 15720647 | 2622050 | (1461443)<br>| (86942)<br>| (85015)<br>| 16709297 | 627933 | 647003 |
| **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** | **Intermediate-Term Bond 44.0%** |
| Schwab U.S. Aggregate Bond ETF  | 118684694 | 20054318 | (13180564)<br>| (1679994)<br>| 1969859 | 125848313 | 5419824 | 5049553 |
| **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** | **Treasury Bond 6.2%** |
| Schwab Short-Term U.S. Treasury ETF  | 16622735 | 3053397 | (1805329)<br>| (50817)<br>| (5296)<br>| 17814690 | 734021 | 695852 |
|  |  |  |  |  |  | 160372300 |  |  |
| **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** | **Money Market Funds 1.8%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 4854353 | 195710 |  |  |  | 5050063 | 5050063 | 195105 |
| **Total Affiliated Underlying Funds** <br>**(Cost $228,224,379)**<br>| **$270423258** | **$42030786** | **($47368034)**<br>| **$4237353** | **$14891695** | **$284215058** |  | **$8770638** |
| **Total Investments in Securities** <br>**(Cost $228,224,379)**<br>|  |  |  |  |  | **$284215058** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**13**

------

Schwab Target 2020 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $228,224,379)  |  | $284215058 |
| Cash |  | 1602784 |
| Receivables: |  |  |
| Investments sold |  | 3402295 |
| Fund shares sold |  | 42586 |
| Dividends | + | 7799 |
| **Total assets** |  | **289270522** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 3459075 |
| Fund shares redeemed |  | 73162 |
| Investment adviser fees | + | 10167 |
| **Total liabilities** |  | **3542404** |
| **Net assets** |  | **$285728118** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $239150757 |
| Total distributable earnings | + | 46577361 |
| **Net assets** |  | **$285728118** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $285728118 |  | &nbsp;&nbsp;&nbsp;&nbsp; 20749551 |  | &nbsp;&nbsp;&nbsp;&nbsp; $13.77 |

---

*See financial notes*

**14**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2020 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $8770618 |
| Other Interest | + | 22455 |
| **Total investment income**  |  | **8793073** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 227171 |
| **Total expenses** |  | **227171** |
| Expense reduction | – | 126147 |
| **Net expenses** | – | **101024** |
| **Net investment income** |  | **8692049** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 20 |
| Net realized gains on sales of securities - affiliated issuers  | + | 4237353 |
| **Net realized gains** |  | **4237373** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **14891695** |
| **Net realized and unrealized gains** |  | **19129068** |
| **Increase in net assets resulting from operations** |  | **$27821117** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**15**

------

Schwab Target 2020 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $8692049 | &nbsp;&nbsp;&nbsp; $8365376 |
| Net realized gains |  | 4237373 | &nbsp;&nbsp;&nbsp; 3045361 |
| Net change in unrealized appreciation (depreciation) | + | 14891695 | &nbsp;&nbsp;&nbsp; 4764370 |
| **Increase in net assets resulting from operations** |  | **$27821117** | &nbsp;&nbsp;&nbsp; **$16175107** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($15916684)**<br>| &nbsp;&nbsp;&nbsp; **($12618912)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 3527938 | &nbsp;&nbsp;&nbsp; $49377243 | &nbsp;&nbsp;&nbsp; 3655465 | &nbsp;&nbsp;&nbsp; $48822203 |
| Shares reinvested |  | 1069946 | &nbsp;&nbsp;&nbsp; 14904344 | &nbsp;&nbsp;&nbsp; 904566 | &nbsp;&nbsp;&nbsp; 11831712 |
| Shares redeemed | + | (4460928)<br>| &nbsp;&nbsp;&nbsp; (62060817)<br>| &nbsp;&nbsp;&nbsp; (5141342)<br>| &nbsp;&nbsp;&nbsp; (68933168)<br>|
| **Net transactions in fund shares**  |  | **136956** | &nbsp;&nbsp;&nbsp; **$2220770** | &nbsp;&nbsp;&nbsp; **(581311)**<br>| &nbsp;&nbsp;&nbsp; **($8279253)**<br>|
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 20612595 | &nbsp;&nbsp;&nbsp; $271602915 | &nbsp;&nbsp;&nbsp; 21193906 | &nbsp;&nbsp;&nbsp; $276325973 |
| Total increase (decrease) | + | 136956 | &nbsp;&nbsp;&nbsp; 14125203 | &nbsp;&nbsp;&nbsp; (581311)<br>| &nbsp;&nbsp;&nbsp; (4723058)<br>|
| **End of period** |  | **20749551** | &nbsp;&nbsp;&nbsp; **$285728118** | &nbsp;&nbsp;&nbsp; **20612595** | &nbsp;&nbsp;&nbsp; **$271602915** |

---

*See financial notes*

**16**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2025 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $14.49 | &nbsp;&nbsp; $14.11 | &nbsp;&nbsp; $12.89 | &nbsp;&nbsp; $13.98 | &nbsp;&nbsp; $13.83 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.47 | 0.43 | 0.37 | 0.30 | 0.27 |
| Net realized and unrealized gains (losses) | 1.10 | 0.44 | 1.20 | &nbsp;&nbsp; (1.11)<br>| 0.16 |
| Total from investment operations | 1.57 | 0.87 | 1.57 | &nbsp;&nbsp; (0.81)<br>| 0.43 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.46)<br>| &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.35)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.26)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; (0.36)<br>| &nbsp;&nbsp; (0.06)<br>| &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.02)<br>|
| Total distributions | &nbsp;&nbsp; (0.82)<br>| &nbsp;&nbsp; (0.49)<br>| &nbsp;&nbsp; (0.35)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.28)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $15.24 | &nbsp;&nbsp; $14.49 | &nbsp;&nbsp; $14.11 | &nbsp;&nbsp; $12.89 | &nbsp;&nbsp; $13.98 |
| Total return | 10.79<br> %<br>| 6.19<br> %<br>| 12.29<br> %<br>| &nbsp;&nbsp; (5.67<br> %)<br>| 3.02<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.04<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 3.02<br> %<br>| 2.94<br> %<br>| 2.77<br> %<br>| 2.34<br> %<br>| 1.90<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 16<br> %<br>| &nbsp;&nbsp; 23<br> %<br>| &nbsp;&nbsp; 19<br> %<br>| &nbsp;&nbsp; 18<br> %<br>| &nbsp;&nbsp; 12<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $636 | &nbsp;&nbsp; $575 | &nbsp;&nbsp; $559 | &nbsp;&nbsp; $477 | &nbsp;&nbsp; $518 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.05%, 0.05%, 0.04%, and 0.04%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**17**

------

Schwab Target 2025 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.6% OF NET ASSETS |
| **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** | **U.S. Stocks 30.4%** |
| **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** | **Large-Cap 28.6%** |
| Schwab U.S. Large-Cap ETF  | $166038001 | $27315460 | ($36986242)<br>| $2194379 | $23481479 | $182043077 | 7099964 | $2095271 |
| **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** | **Small-Cap 1.8%** |
| Schwab U.S. Small-Cap ETF  | 10381200 | 1205650 | (2661184)<br>| 250450 | 2185934 | 11362050 | 390717 | 140312 |
|  |  |  |  |  |  | 193405127 |  |  |
| **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** | **International Stocks 10.8%** |
| **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** | **Developed Markets 10.8%** |
| Schwab International Equity ETF  | 59885651 | 13001172 | (19070055)<br>| 3047468 | 11617851 | 68482087 | 2766953 | 2323354 |
| **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** | **Real Estate 2.6%** |
| **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** | **U.S. REITs 2.6%** |
| Schwab U.S. REIT ETF  | 17602192 | 4897340 | (5999288)<br>| 217983 | (106564)<br>| 16611663 | 772995 | 562909 |
| **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** | **Fixed Income 54.2%** |
| **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** | **Inflation-Protected Bond 5.6%** |
| Schwab U.S. TIPS ETF  | 32084180 | 6847908 | (2776731)<br>| (300085)<br>| (57744)<br>| 35797528 | 1345266 | 1360253 |
| **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** | **Intermediate-Term Bond 42.7%** |
| Schwab U.S. Aggregate Bond ETF  | 243521680 | 55163784 | (27936558)<br>| (4172578)<br>| 4776052 | 271352380 | 11686149 | 10730583 |
| **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** | **Treasury Bond 5.9%** |
| Schwab Short-Term U.S. Treasury ETF  | 33624639 | 7318654 | (3211283)<br>| (129516)<br>| 12074 | 37614568 | 1549838 | 1455876 |
|  |  |  |  |  |  | 344764476 |  |  |
| **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** | **Money Market Funds 1.6%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 7991492 | 1832428 |  |  |  | 9823920 | 9823920 | 333763 |
| **Total Affiliated Underlying Funds** <br>**(Cost $502,517,649)**<br>| **$571129035** | **$117582396** | **($98641341)**<br>| **$1108101** | **$41909082** | **$633087273** |  | **$19002321** |
| **Total Investments in Securities** <br>**(Cost $502,517,649)**<br>|  |  |  |  |  | **$633087273** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**18**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2025 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $502,517,649)  |  | $633087273 |
| Cash |  | 2864933 |
| Receivables: |  |  |
| Investments sold |  | 7951166 |
| Fund shares sold |  | 142212 |
| Dividends | + | 15171 |
| **Total assets** |  | **644060755** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 7703932 |
| Fund shares redeemed |  | 687865 |
| Investment adviser fees | + | 22409 |
| **Total liabilities** |  | **8414206** |
| **Net assets** |  | **$635646549** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $524194086 |
| Total distributable earnings | + | 111452463 |
| **Net assets** |  | **$635646549** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $635646549 |  | &nbsp;&nbsp;&nbsp;&nbsp; 41711422 |  | &nbsp;&nbsp;&nbsp;&nbsp; $15.24 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**19**

------

Schwab Target 2025 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $19002288 |
| Other Interest | + | 69216 |
| **Total investment income**  |  | **19071504** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 499655 |
| **Total expenses** |  | **499655** |
| Expense reduction | – | 296268 |
| **Net expenses** | – | **203387** |
| **Net investment income** |  | **18868117** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 33 |
| Net realized gains on sales of securities - affiliated issuers  | + | 1108101 |
| **Net realized gains** |  | **1108134** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **41909082** |
| **Net realized and unrealized gains** |  | **43017216** |
| **Increase in net assets resulting from operations** |  | **$61885333** |

---

*See financial notes*

**20**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2025 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $18868117 | &nbsp;&nbsp;&nbsp; $17100220 |
| Net realized gains |  | 1108134 | &nbsp;&nbsp;&nbsp; 5704722 |
| Net change in unrealized appreciation (depreciation) | + | 41909082 | &nbsp;&nbsp;&nbsp; 11879382 |
| **Increase in net assets resulting from operations** |  | **$61885333** | &nbsp;&nbsp;&nbsp; **$34684324** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($33052415)**<br>| &nbsp;&nbsp;&nbsp; **($19099475)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 11006854 | &nbsp;&nbsp;&nbsp; $169970528 | &nbsp;&nbsp;&nbsp; 11642351 | &nbsp;&nbsp;&nbsp; $170338555 |
| Shares reinvested |  | 1985130 | &nbsp;&nbsp;&nbsp; 30610708 | &nbsp;&nbsp;&nbsp; 1247983 | &nbsp;&nbsp;&nbsp; 17945992 |
| Shares redeemed | + | (10956111)<br>| &nbsp;&nbsp;&nbsp; (168696497)<br>| &nbsp;&nbsp;&nbsp; (12792579)<br>| &nbsp;&nbsp;&nbsp; (187461982)<br>|
| **Net transactions in fund shares**  |  | **2035873** | &nbsp;&nbsp;&nbsp; **$31884739** | &nbsp;&nbsp;&nbsp; **97755** | &nbsp;&nbsp;&nbsp; **$822565** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 39675549 | &nbsp;&nbsp;&nbsp; $574928892 | &nbsp;&nbsp;&nbsp; 39577794 | &nbsp;&nbsp;&nbsp; $558521478 |
| Total increase | + | 2035873 | &nbsp;&nbsp;&nbsp; 60717657 | &nbsp;&nbsp;&nbsp; 97755 | &nbsp;&nbsp;&nbsp; 16407414 |
| **End of period** |  | **41711422** | &nbsp;&nbsp;&nbsp; **$635646549** | &nbsp;&nbsp;&nbsp; **39675549** | &nbsp;&nbsp;&nbsp; **$574928892** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**21**

------

Schwab Target 2030 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $15.79 | &nbsp;&nbsp; $15.22 | &nbsp;&nbsp; $13.53 | &nbsp;&nbsp; $14.73 | &nbsp;&nbsp; $14.41 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.48 | 0.43 | 0.37 | 0.30 | 0.29 |
| Net realized and unrealized gains (losses) | 1.63 | 0.55 | 1.65 | &nbsp;&nbsp; (1.23)<br>| 0.32 |
| Total from investment operations | 2.11 | 0.98 | 2.02 | &nbsp;&nbsp; (0.93)<br>| 0.61 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.41)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.27)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.02)<br>|
| Total distributions | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.41)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.29)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $17.46 | &nbsp;&nbsp; $15.79 | &nbsp;&nbsp; $15.22 | &nbsp;&nbsp; $13.53 | &nbsp;&nbsp; $14.73 |
| Total return | 13.34<br> %<br>| 6.43<br> %<br>| 15.05<br> %<br>| &nbsp;&nbsp; (6.19<br> %)<br>| 4.11<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.04<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.04<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.76<br> %<br>| 2.69<br> %<br>| 2.59<br> %<br>| 2.23<br> %<br>| 1.88<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 12<br> %<br>| &nbsp;&nbsp; 15<br> %<br>| &nbsp;&nbsp; 11<br> %<br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 9<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1687 | &nbsp;&nbsp; $1281 | &nbsp;&nbsp; $1091 | &nbsp;&nbsp; $806 | &nbsp;&nbsp; $803 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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%, 0.05%, 0.05%, 0.04%, and 0.04%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**22**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2030 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS |
| **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** | **U.S. Stocks 37.4%** |
| **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** | **Large-Cap 34.9%** |
| Schwab U.S. Large-Cap ETF  | $466305069 | $121715677 | ($72263342)<br>| $229965 | $72590215 | $588577584 | 22955444 | $6478443 |
| **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** | **Small-Cap 2.5%** |
| Schwab U.S. Small-Cap ETF  | 34480220 | 8932200 | (9672064)<br>| 250603 | 8212525 | 42203484 | 1451289 | 509475 |
|  |  |  |  |  |  | 630781068 |  |  |
| **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** | **International Stocks 15.7%** |
| **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** | **Developed Markets 14.0%** |
| Schwab International Equity ETF  | 180595079 | 56699660 | (46876501)<br>| 2988324 | 43747592 | 237154154 | 9581986 | 7761313 |
| **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** | **Emerging Markets 1.7%** |
| Schwab Emerging Markets Equity ETF  | 24152368 | 6915716 | (8031352)<br>| 615178 | 4319938 | 27971848 | 848918 | 878761 |
|  |  |  |  |  |  | 265126002 |  |  |
| **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** | **Real Estate 3.2%** |
| **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** | **U.S. REITs 3.2%** |
| Schwab U.S. REIT ETF  | 50467300 | 21504322 | (17961665)<br>| 292220 | 88239 | 54390416 | 2530964 | 1767509 |
| **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** | **Fixed Income 42.1%** |
| **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** | **Inflation-Protected Bond 2.6%** |
| Schwab U.S. TIPS ETF  | 26766091 | 18945221 | (1470666)<br>| (232427)<br>| (90356)<br>| 43917863 | 1650427 | 1205614 |
| **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** | **Intermediate-Term Bond 36.2%** |
| Schwab U.S. Aggregate Bond ETF  | 443774365 | 191602986 | (24909785)<br>| (4139369)<br>| 4561442 | 610889639 | 26308770 | 21337566 |
| **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** | **Treasury Bond 3.3%** |
| Schwab Short-Term U.S. Treasury ETF  | 35270923 | 23224897 | (3445090)<br>| (146154)<br>| (55759)<br>| 54848817 | 2259943 | 1693343 |
|  |  |  |  |  |  | 709656319 |  |  |
| **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** | **Money Market Funds 1.0%** |
| Schwab Government Money Fund, <br> Ultra Shares, 3.53% <sup>(b)</sup> <br>| 10621035 | 6469160 |  |  |  | 17090195 | 17090195 | 477163 |
| **Total Affiliated Underlying Funds** <br>**(Cost $1,333,367,395)**<br>| **$1272432450** | **$456009839** | **($184630465)**<br>| **($141660)**<br>| **$133373836** | **$1677044000** |  | **$42109187** |
| **Total Investments in Securities** <br>**(Cost $1,333,367,395)**<br>|  |  |  |  |  | **$1677044000** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**23**

------

Schwab Target 2030 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $1,333,367,395)  |  | $1677044000 |
| Cash |  | 11350844 |
| Receivables: |  |  |
| Investments sold |  | 20473390 |
| Fund shares sold |  | 2473938 |
| Dividends | + | 26392 |
| **Total assets** |  | **1711368564** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 21414415 |
| Fund shares redeemed |  | 2565371 |
| Investment adviser fees | + | 55209 |
| **Total liabilities** |  | **24034995** |
| **Net assets** |  | **$1687333569** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $1366345216 |
| Total distributable earnings | + | 320988353 |
| **Net assets** |  | **$1687333569** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1687333569 |  | &nbsp;&nbsp;&nbsp;&nbsp; 96639463 |  | &nbsp;&nbsp;&nbsp;&nbsp; $17.46 |

---

*See financial notes*

**24**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2030 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $42109144 |
| Other Interest | + | 205731 |
| **Total investment income**  |  | **42314875** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 1212155 |
| **Total expenses** |  | **1212155** |
| Expense reduction | – | 668062 |
| **Net expenses** | – | **544093** |
| **Net investment income** |  | **41770782** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 43 |
| Net realized losses on sales of securities - affiliated issuers  | + | (141660)<br>|
| **Net realized losses** |  | **(141617)**<br>|
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **133373836** |
| **Net realized and unrealized gains** |  | **133232219** |
| **Increase in net assets resulting from operations** |  | **$175003001** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**25**

------

Schwab Target 2030 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $41770782 | &nbsp;&nbsp;&nbsp; $32425037 |
| Net realized losses |  | (141617)<br>| &nbsp;&nbsp;&nbsp; (6207874)<br>|
| Net change in unrealized appreciation (depreciation) | + | 133373836 | &nbsp;&nbsp;&nbsp; 44691261 |
| **Increase in net assets resulting from operations** |  | **$175003001** | &nbsp;&nbsp;&nbsp; **$70908424** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($40290101)**<br>| &nbsp;&nbsp;&nbsp; **($31363490)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 32630806 | &nbsp;&nbsp;&nbsp; $567094738 | &nbsp;&nbsp;&nbsp; 26131937 | &nbsp;&nbsp;&nbsp; $415486786 |
| Shares reinvested |  | 2124259 | &nbsp;&nbsp;&nbsp; 37599387 | &nbsp;&nbsp;&nbsp; 1885393 | &nbsp;&nbsp;&nbsp; 29694942 |
| Shares redeemed | + | (19291618)<br>| &nbsp;&nbsp;&nbsp; (333557357)<br>| &nbsp;&nbsp;&nbsp; (18537079)<br>| &nbsp;&nbsp;&nbsp; (294652383)<br>|
| **Net transactions in fund shares**  |  | **15463447** | &nbsp;&nbsp;&nbsp; **$271136768** | &nbsp;&nbsp;&nbsp; **9480251** | &nbsp;&nbsp;&nbsp; **$150529345** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 81176016 | &nbsp;&nbsp;&nbsp; $1281483901 | &nbsp;&nbsp;&nbsp; 71695765 | &nbsp;&nbsp;&nbsp; $1091409622 |
| Total increase | + | 15463447 | &nbsp;&nbsp;&nbsp; 405849668 | &nbsp;&nbsp;&nbsp; 9480251 | &nbsp;&nbsp;&nbsp; 190074279 |
| **End of period** |  | **96639463** | &nbsp;&nbsp;&nbsp; **$1687333569** | &nbsp;&nbsp;&nbsp; **81176016** | &nbsp;&nbsp;&nbsp; **$1281483901** |

---

*See financial notes*

**26**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2035 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $16.72 | &nbsp;&nbsp; $16.06 | &nbsp;&nbsp; $14.02 | &nbsp;&nbsp; $15.31 | &nbsp;&nbsp; $14.86 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.47 | 0.42 | 0.37 | 0.30 | 0.30 |
| Net realized and unrealized gains (losses) | 2.07 | 0.64 | 2.00 | &nbsp;&nbsp; (1.32)<br>| 0.44 |
| Total from investment operations | 2.54 | 1.06 | 2.37 | &nbsp;&nbsp; (1.02)<br>| 0.74 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.40)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.28)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.40)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.29)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $18.83 | &nbsp;&nbsp; $16.72 | &nbsp;&nbsp; $16.06 | &nbsp;&nbsp; $14.02 | &nbsp;&nbsp; $15.31 |
| Total return | 15.17<br> %<br>| 6.57<br> %<br>| 17.00<br> %<br>| &nbsp;&nbsp; (6.59<br> %)<br>| 4.88<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.04<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.56<br> %<br>| 2.52<br> %<br>| 2.48<br> %<br>| 2.16<br> %<br>| 1.88<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 11<br> %<br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 13<br> %<br>| &nbsp;&nbsp; 12<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1438 | &nbsp;&nbsp; $1025 | &nbsp;&nbsp; $793 | &nbsp;&nbsp; $524 | &nbsp;&nbsp; $488 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.05%, 0.05%, 0.04%, and 0.04%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**27**

------

Schwab Target 2035 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS |
| **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** | **U.S. Stocks 44.1%** |
| **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** | **Large-Cap 40.8%** |
| Schwab U.S. Large-Cap ETF  | $428686291 | $138819472 | ($47942667)<br>| ($257976)<br>| $67002145 | $586307265 | 22866898 | $6237586 |
| **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** | **Small-Cap 3.3%** |
| Schwab U.S. Small-Cap ETF  | 35295187 | 10421701 | (7316892)<br>| 85925 | 8834392 | 47320313 | 1627246 | 541848 |
|  |  |  |  |  |  | 633627578 |  |  |
| **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** | **International Stocks 20.1%** |
| **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** | **Developed Markets 17.1%** |
| Schwab International Equity ETF  | 174510672 | 68658028 | (43734944)<br>| 1747791 | 44379810 | 245561357 | 9921671 | 7787706 |
| **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** | **Emerging Markets 3.0%** |
| Schwab Emerging Markets Equity ETF  | 30284735 | 9925423 | (2847199)<br>| 106992 | 5964509 | 43434460 | 1318193 | 1137665 |
|  |  |  |  |  |  | 288995817 |  |  |
| **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** | **Real Estate 3.7%** |
| **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** | **U.S. REITs 3.7%** |
| Schwab U.S. REIT ETF  | 46661987 | 23418384 | (16785635)<br>| 211748 | 134813 | 53641297 | 2496105 | 1684064 |
| **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** | **Fixed Income 30.9%** |
| **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** | **Inflation-Protected Bond 0.7%** |
| Schwab U.S. TIPS ETF  | 4865315 | 5083487 |  |  | (58796)<br>| 9890006 | 371665 | 213806 |
| **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** | **Intermediate-Term Bond 28.8%** |
| Schwab U.S. Aggregate Bond ETF  | 279153108 | 150077364 | (15698800)<br>| (2445636)<br>| 2569974 | 413656010 | 17814643 | 13936427 |
| **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** | **Treasury Bond 1.4%** |
| Schwab Short-Term U.S. Treasury ETF  | 12958762 | 9117039 | (1056219)<br>| (40506)<br>| (41056)<br>| 20938020 | 862712 | 634379 |
|  |  |  |  |  |  | 444484036 |  |  |
| **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** | **Money Market Funds 0.7%** |
| Schwab Government Money Fund, <br> Ultra Shares, 3.53% <sup>(b)</sup> <br>| 4829862 | 5228854 |  |  |  | 10058716 | 10058716 | 236025 |
| **Total Affiliated Underlying Funds** <br>**(Cost $1,133,287,771)**<br>| **$1017245919** | **$420749752** | **($135382356)**<br>| **($591662)**<br>| **$128785791** | **$1430807444** |  | **$32409506** |
| **Total Investments in Securities** <br>**(Cost $1,133,287,771)**<br>|  |  |  |  |  | **$1430807444** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust <br> TIPS — Treasury Inflation Protected Securities

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**28**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2035 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $1,133,287,771)  |  | $1430807444 |
| Cash |  | 9615485 |
| Receivables: |  |  |
| Investments sold |  | 14550574 |
| Fund shares sold |  | 800215 |
| Dividends | + | 15533 |
| **Total assets** |  | **1455789251** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 15733272 |
| Fund shares redeemed |  | 1713081 |
| Investment adviser fees | + | 46746 |
| **Total liabilities** |  | **17493099** |
| **Net assets** |  | **$1438296152** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $1158423502 |
| Total distributable earnings | + | 279872650 |
| **Net assets** |  | **$1438296152** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1438296152 |  | &nbsp;&nbsp;&nbsp;&nbsp; 76400070 |  | &nbsp;&nbsp;&nbsp;&nbsp; $18.83 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**29**

------

Schwab Target 2035 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $32409486 |
| Other Interest | + | 169855 |
| **Total investment income**  |  | **32579341** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 1005906 |
| **Total expenses** |  | **1005906** |
| Expense reduction | – | 571798 |
| **Net expenses** | – | **434108** |
| **Net investment income** |  | **32145233** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 20 |
| Net realized losses on sales of securities - affiliated issuers  | + | (591662)<br>|
| **Net realized losses** |  | **(591642)**<br>|
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **128785791** |
| **Net realized and unrealized gains** |  | **128194149** |
| **Increase in net assets resulting from operations** |  | **$160339382** |

---

*See financial notes*

**30**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2035 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $32145233 | &nbsp;&nbsp;&nbsp; $23349996 |
| Net realized losses |  | (591642)<br>| &nbsp;&nbsp;&nbsp; (6635896)<br>|
| Net change in unrealized appreciation (depreciation) | + | 128785791 | &nbsp;&nbsp;&nbsp; 37630439 |
| **Increase in net assets resulting from operations** |  | **$160339382** | &nbsp;&nbsp;&nbsp; **$54344539** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($30832110)**<br>| &nbsp;&nbsp;&nbsp; **($22331715)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 27235619 | &nbsp;&nbsp;&nbsp; $507407317 | &nbsp;&nbsp;&nbsp; 23167237 | &nbsp;&nbsp;&nbsp; $389625946 |
| Shares reinvested |  | 1543357 | &nbsp;&nbsp;&nbsp; 29508990 | &nbsp;&nbsp;&nbsp; 1279863 | &nbsp;&nbsp;&nbsp; 21424907 |
| Shares redeemed | + | (13684419)<br>| &nbsp;&nbsp;&nbsp; (253014431)<br>| &nbsp;&nbsp;&nbsp; (12529593)<br>| &nbsp;&nbsp;&nbsp; (211554757)<br>|
| **Net transactions in fund shares**  |  | **15094557** | &nbsp;&nbsp;&nbsp; **$283901876** | &nbsp;&nbsp;&nbsp; **11917507** | &nbsp;&nbsp;&nbsp; **$199496096** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 61305513 | &nbsp;&nbsp;&nbsp; $1024887004 | &nbsp;&nbsp;&nbsp; 49388006 | &nbsp;&nbsp;&nbsp; $793378084 |
| Total increase | + | 15094557 | &nbsp;&nbsp;&nbsp; 413409148 | &nbsp;&nbsp;&nbsp; 11917507 | &nbsp;&nbsp;&nbsp; 231508920 |
| **End of period** |  | **76400070** | &nbsp;&nbsp;&nbsp; **$1438296152** | &nbsp;&nbsp;&nbsp; **61305513** | &nbsp;&nbsp;&nbsp; **$1024887004** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**31**

------

Schwab Target 2040 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $17.46 | &nbsp;&nbsp; $16.74 | &nbsp;&nbsp; $14.41 | &nbsp;&nbsp; $15.80 | &nbsp;&nbsp; $15.24 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.47 | 0.42 | 0.36 | 0.30 | 0.31 |
| Net realized and unrealized gains (losses) | 2.44 | 0.70 | 2.30 | &nbsp;&nbsp; (1.41)<br>| 0.55 |
| Total from investment operations | 2.91 | 1.12 | 2.66 | &nbsp;&nbsp; (1.11)<br>| 0.86 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.45)<br>| &nbsp;&nbsp; (0.40)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.29)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.45)<br>| &nbsp;&nbsp; (0.40)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.30)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $19.92 | &nbsp;&nbsp; $17.46 | &nbsp;&nbsp; $16.74 | &nbsp;&nbsp; $14.41 | &nbsp;&nbsp; $15.80 |
| Total return | 16.62<br> %<br>| 6.68<br> %<br>| 18.56<br> %<br>| &nbsp;&nbsp; (6.96<br> %)<br>| 5.53<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.04<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.04<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.40<br> %<br>| 2.37<br> %<br>| 2.38<br> %<br>| 2.13<br> %<br>| 1.90<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 13<br> %<br>| &nbsp;&nbsp; 8<br> %<br>| &nbsp;&nbsp; 12<br> %<br>| &nbsp;&nbsp; 9<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1557 | &nbsp;&nbsp; $1194 | &nbsp;&nbsp; $1000 | &nbsp;&nbsp; $660 | &nbsp;&nbsp; $631 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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%, 0.05%, 0.05%, 0.04%, and 0.04% respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**32**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2040 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS |
| **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** | **U.S. Stocks 48.9%** |
| **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** | **Large-Cap 44.7%** |
| Schwab U.S. Large-Cap ETF  | $543923224 | $113559415 | ($47174110)<br>| $629995 | $85001586 | $695940110 | 27142750 | $7621389 |
| **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** | **Small-Cap 4.2%** |
| Schwab U.S. Small-Cap ETF  | 51547101 | 10514230 | (10203786)<br>| 386573 | 12531408 | 64775526 | 2227494 | 764816 |
|  |  |  |  |  |  | 760715636 |  |  |
| **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** | **International Stocks 23.6%** |
| **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** | **Developed Markets 19.4%** |
| Schwab International Equity ETF  | 230802772 | 59065385 | (47418864)<br>| 3991544 | 56089204 | 302530041 | 12223436 | 9883145 |
| **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** | **Emerging Markets 4.2%** |
| Schwab Emerging Markets Equity ETF  | 47355114 | 12739997 | (4526336)<br>| 311162 | 9170151 | 65050088 | 1974206 | 1674604 |
|  |  |  |  |  |  | 367580129 |  |  |
| **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** | **Real Estate 4.1%** |
| **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** | **U.S. REITs 4.1%** |
| Schwab U.S. REIT ETF  | 59053705 | 22372335 | (18719549)<br>| 433415 | 11876 | 63151782 | 2938659 | 2059548 |
| **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** | **Fixed Income 22.4%** |
| **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** | **Intermediate-Term Bond 21.7%** |
| Schwab U.S. Aggregate Bond ETF  | 241930610 | 111327155 | (15305827)<br>| (2376912)<br>| 2601193 | 338176219 | 14564006 | 11719470 |
| **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** | **Treasury Bond 0.7%** |
| Schwab Short-Term U.S. Treasury ETF  | 7947351 | 4188948 | (704365)<br>| (27475)<br>| (11660)<br>| 11392799 | 469419 | 365098 |
|  |  |  |  |  |  | 349569018 |  |  |
| **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** | **Money Market Funds 0.5%** |
| Schwab Government Money Fund, <br> Ultra Shares, 3.53% <sup>(b)</sup> <br>| 3974424 | 3684126 |  |  |  | 7658550 | 7658550 | 189072 |
| **Total Affiliated Underlying Funds** <br>**(Cost $1,155,644,763)**<br>| **$1186534301** | **$337451591** | **($144052837)**<br>| **$3348302** | **$165393758** | **$1548675115** |  | **$34277142** |
| **Total Investments in Securities** <br>**(Cost $1,155,644,763)**<br>|  |  |  |  |  | **$1548675115** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**33**

------

Schwab Target 2040 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $1,155,644,763)  |  | $1548675115 |
| Cash |  | 9512305 |
| Receivables: |  |  |
| Investments sold |  | 13174073 |
| Fund shares sold |  | 1222759 |
| Dividends | + | 11827 |
| **Total assets** |  | **1572596079** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 14941969 |
| Fund shares redeemed |  | 866723 |
| Investment adviser fees | + | 59149 |
| **Total liabilities** |  | **15867841** |
| **Net assets** |  | **$1556728238** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $1178390643 |
| Total distributable earnings | + | 378337595 |
| **Net assets** |  | **$1556728238** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1556728238 |  | &nbsp;&nbsp;&nbsp;&nbsp; 78131830 |  | &nbsp;&nbsp;&nbsp;&nbsp; $19.92 |

---

*See financial notes*

**34**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2040 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $34277126 |
| Other Interest | + | 168499 |
| **Total investment income**  |  | **34445625** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 1130883 |
| **Total expenses** |  | **1130883** |
| Expense reduction | – | 636048 |
| **Net expenses** | – | **494835** |
| **Net investment income** |  | **33950790** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 16 |
| Net realized gains on sales of securities - affiliated issuers  | + | 3348302 |
| **Net realized gains** |  | **3348318** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **165393758** |
| **Net realized and unrealized gains** |  | **168742076** |
| **Increase in net assets resulting from operations** |  | **$202692866** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**35**

------

Schwab Target 2040 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $33950790 | &nbsp;&nbsp;&nbsp; $26630571 |
| Net realized gains (losses) |  | 3348318 | &nbsp;&nbsp;&nbsp; (5200955)<br>|
| Net change in unrealized appreciation (depreciation) | + | 165393758 | &nbsp;&nbsp;&nbsp; 47629839 |
| **Increase in net assets resulting from operations** |  | **$202692866** | &nbsp;&nbsp;&nbsp; **$69059455** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($32983455)**<br>| &nbsp;&nbsp;&nbsp; **($25860446)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 21023158 | &nbsp;&nbsp;&nbsp; $413235413 | &nbsp;&nbsp;&nbsp; 19821740 | &nbsp;&nbsp;&nbsp; $348258083 |
| Shares reinvested |  | 1578858 | &nbsp;&nbsp;&nbsp; 32003463 | &nbsp;&nbsp;&nbsp; 1437300 | &nbsp;&nbsp;&nbsp; 25210241 |
| Shares redeemed | + | (12868367)<br>| &nbsp;&nbsp;&nbsp; (252446683)<br>| &nbsp;&nbsp;&nbsp; (12607104)<br>| &nbsp;&nbsp;&nbsp; (222723134)<br>|
| **Net transactions in fund shares**  |  | **9733649** | &nbsp;&nbsp;&nbsp; **$192792193** | &nbsp;&nbsp;&nbsp; **8651936** | &nbsp;&nbsp;&nbsp; **$150745190** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 68398181 | &nbsp;&nbsp;&nbsp; $1194226634 | &nbsp;&nbsp;&nbsp; 59746245 | &nbsp;&nbsp;&nbsp; $1000282435 |
| Total increase | + | 9733649 | &nbsp;&nbsp;&nbsp; 362501604 | &nbsp;&nbsp;&nbsp; 8651936 | &nbsp;&nbsp;&nbsp; 193944199 |
| **End of period** |  | **78131830** | &nbsp;&nbsp;&nbsp; **$1556728238** | &nbsp;&nbsp;&nbsp; **68398181** | &nbsp;&nbsp;&nbsp; **$1194226634** |

---

*See financial notes*

**36**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2045 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $18.12 | &nbsp;&nbsp; $17.34 | &nbsp;&nbsp; $14.77 | &nbsp;&nbsp; $16.23 | &nbsp;&nbsp; $15.57 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.47 | 0.41 | 0.36 | 0.30 | 0.32 |
| Net realized and unrealized gains (losses) | 2.78 | 0.76 | 2.54 | &nbsp;&nbsp; (1.49)<br>| 0.65 |
| Total from investment operations | 3.25 | 1.17 | 2.90 | &nbsp;&nbsp; (1.19)<br>| 0.97 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.39)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.30)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.39)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.31)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $20.93 | &nbsp;&nbsp; $18.12 | &nbsp;&nbsp; $17.34 | &nbsp;&nbsp; $14.77 | &nbsp;&nbsp; $16.23 |
| Total return | 17.90<br> %<br>| 6.72<br> %<br>| 19.78<br> %<br>| &nbsp;&nbsp; (7.21<br> %)<br>| 6.11<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.29<br> %<br>| 2.26<br> %<br>| 2.31<br> %<br>| 2.11<br> %<br>| 1.92<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 8<br> %<br>| &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 10<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1054 | &nbsp;&nbsp; $764 | &nbsp;&nbsp; $613 | &nbsp;&nbsp; $411 | &nbsp;&nbsp; $362 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.05%, 0.05%, 0.04% and 0.05% respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**37**

------

Schwab Target 2045 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS |
| **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** | **U.S. Stocks 52.8%** |
| **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** | **Large-Cap 47.8%** |
| Schwab U.S. Large-Cap ETF  | $370468021 | $102104190 | ($26932941)<br>| ($1889)<br>| $58307230 | $503944611 | 19654626 | $5410163 |
| **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** | **Small-Cap 5.0%** |
| Schwab U.S. Small-Cap ETF  | 39053171 | 9930825 | (6353110)<br>| 97794 | 9829349 | 52558029 | 1807360 | 602085 |
|  |  |  |  |  |  | 556502640 |  |  |
| **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** | **International Stocks 26.7%** |
| **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** | **Developed Markets 21.4%** |
| Schwab International Equity ETF  | 162395007 | 54450708 | (34455258)<br>| 1480643 | 41673620 | 225544720 | 9112918 | 7250420 |
| **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** | **Emerging Markets 5.3%** |
| Schwab Emerging Markets Equity ETF  | 37746197 | 14935662 | (4327905)<br>| 96948 | 7449004 | 55899906 | 1696507 | 1403416 |
|  |  |  |  |  |  | 281444626 |  |  |
| **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** | **Real Estate 4.3%** |
| **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** | **U.S. REITs 4.3%** |
| Schwab U.S. REIT ETF  | 40093220 | 19078350 | (13780811)<br>| 275154 | 62551 | 45728464 | 2127895 | 1458941 |
| **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** | **Fixed Income 15.4%** |
| **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** | **Intermediate-Term Bond 14.9%** |
| Schwab U.S. Aggregate Bond ETF  | 104123214 | 60414657 | (7136605)<br>| (980496)<br>| 987006 | 157407776 | 6778974 | 5238623 |
| **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** | **Treasury Bond 0.5%** |
| Schwab Short-Term U.S. Treasury ETF  | 3980564 | 1539442 |  |  | (14575)<br>| 5505431 | 226841 | 183694 |
|  |  |  |  |  |  | 162913207 |  |  |
| **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** | **Money Market Funds 0.3%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 1438865 | 1467566 |  |  |  | 2906431 | 2906431 | 69564 |
| **Total Affiliated Underlying Funds** <br>**(Cost $780,449,065)**<br>| **$759298259** | **$263921400** | **($92986630)**<br>| **$968154** | **$118294185** | **$1049495368** |  | **$21616906** |
| **Total Investments in Securities** <br>**(Cost $780,449,065)**<br>|  |  |  |  |  | **$1049495368** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**38**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2045 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $780,449,065)  |  | $1049495368 |
| Cash |  | 6714081 |
| Receivables: |  |  |
| Investments sold |  | 8084821 |
| Fund shares sold |  | 985731 |
| Dividends | + | 4487 |
| **Total assets** |  | **1065284488** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 9951590 |
| Fund shares redeemed |  | 861465 |
| Investment adviser fees | + | 36785 |
| **Total liabilities** |  | **10849840** |
| **Net assets** |  | **$1054434648** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $794742320 |
| Total distributable earnings | + | 259692328 |
| **Net assets** |  | **$1054434648** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1054434648 |  | &nbsp;&nbsp;&nbsp;&nbsp; 50368691 |  | &nbsp;&nbsp;&nbsp;&nbsp; $20.93 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**39**

------

Schwab Target 2045 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $21616900 |
| Other Interest | + | 97877 |
| **Total investment income**  |  | **21714777** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 748945 |
| **Total expenses** |  | **748945** |
| Expense reduction | – | 430509 |
| **Net expenses** | – | **318436** |
| **Net investment income** |  | **21396341** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 6 |
| Net realized gains on sales of securities - affiliated issuers  | + | 968154 |
| **Net realized gains** |  | **968160** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **118294185** |
| **Net realized and unrealized gains** |  | **119262345** |
| **Increase in net assets resulting from operations** |  | **$140658686** |

---

*See financial notes*

**40**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2045 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $21396341 | &nbsp;&nbsp;&nbsp; $16034639 |
| Net realized gains (losses) |  | 968160 | &nbsp;&nbsp;&nbsp; (3234566)<br>|
| Net change in unrealized appreciation (depreciation) | + | 118294185 | &nbsp;&nbsp;&nbsp; 30521074 |
| **Increase in net assets resulting from operations** |  | **$140658686** | &nbsp;&nbsp;&nbsp; **$43321147** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($20730749)**<br>| &nbsp;&nbsp;&nbsp; **($15556428)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 15226333 | &nbsp;&nbsp;&nbsp; $312665216 | &nbsp;&nbsp;&nbsp; 13413654 | &nbsp;&nbsp;&nbsp; $244669233 |
| Shares reinvested |  | 933467 | &nbsp;&nbsp;&nbsp; 19892170 | &nbsp;&nbsp;&nbsp; 827205 | &nbsp;&nbsp;&nbsp; 15096487 |
| Shares redeemed | + | (7948088)<br>| &nbsp;&nbsp;&nbsp; (162139497)<br>| &nbsp;&nbsp;&nbsp; (7415110)<br>| &nbsp;&nbsp;&nbsp; (136088595)<br>|
| **Net transactions in fund shares**  |  | **8211712** | &nbsp;&nbsp;&nbsp; **$170417889** | &nbsp;&nbsp;&nbsp; **6825749** | &nbsp;&nbsp;&nbsp; **$123677125** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 42156979 | &nbsp;&nbsp;&nbsp; $764088822 | &nbsp;&nbsp;&nbsp; 35331230 | &nbsp;&nbsp;&nbsp; $612646978 |
| Total increase | + | 8211712 | &nbsp;&nbsp;&nbsp; 290345826 | &nbsp;&nbsp;&nbsp; 6825749 | &nbsp;&nbsp;&nbsp; 151441844 |
| **End of period** |  | **50368691** | &nbsp;&nbsp;&nbsp; **$1054434648** | &nbsp;&nbsp;&nbsp; **42156979** | &nbsp;&nbsp;&nbsp; **$764088822** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**41**

------

Schwab Target 2050 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $18.48 | &nbsp;&nbsp; $17.65 | &nbsp;&nbsp; $14.93 | &nbsp;&nbsp; $16.44 | &nbsp;&nbsp; $15.73 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.46 | 0.41 | 0.36 | 0.31 | 0.33 |
| Net realized and unrealized gains (losses) | 3.02 | 0.80 | 2.69 | &nbsp;&nbsp; (1.55)<br>| 0.69 |
| Total from investment operations | 3.48 | 1.21 | 3.05 | &nbsp;&nbsp; (1.24)<br>| 1.02 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.30)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.44)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.31)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $21.52 | &nbsp;&nbsp; $18.48 | &nbsp;&nbsp; $17.65 | &nbsp;&nbsp; $14.93 | &nbsp;&nbsp; $16.44 |
| Total return | 18.77<br> %<br>| 6.83<br> %<br>| 20.58<br> %<br>| &nbsp;&nbsp; (7.41<br> %)<br>| 6.37<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.02<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.20<br> %<br>| 2.19<br> %<br>| 2.27<br> %<br>| 2.11<br> %<br>| 1.94<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 12<br> %<br>| &nbsp;&nbsp; 6<br> %<br>| &nbsp;&nbsp; 9<br> %<br>| &nbsp;&nbsp; 8<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1430 | &nbsp;&nbsp; $1033 | &nbsp;&nbsp; $801 | &nbsp;&nbsp; $511 | &nbsp;&nbsp; $450 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.06%, 0.05%, 0.04% and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022 . 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**42**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2050 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS |
| **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** | **U.S. Stocks 55.5%** |
| **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** | **Large-Cap 49.8%** |
| Schwab U.S. Large-Cap ETF  | $519842887 | $145810837 | ($35990177)<br>| ($208501)<br>| $82761772 | $712216818 | 27777567 | $7662632 |
| **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** | **Small-Cap 5.7%** |
| Schwab U.S. Small-Cap ETF  | 60044014 | 17090072 | (10636607)<br>| 49836 | 15398525 | 81945840 | 2817945 | 938094 |
|  |  |  |  |  |  | 794162658 |  |  |
| **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** | **International Stocks 29.3%** |
| **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** | **Developed Markets 22.9%** |
| Schwab International Equity ETF  | 234826043 | 75966032 | (45955747)<br>| 2430004 | 60544077 | 327810409 | 13244865 | 10560130 |
| **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** | **Emerging Markets 6.4%** |
| Schwab Emerging Markets Equity ETF  | 60645536 | 24069582 | (5793652)<br>| 306013 | 12054268 | 91281747 | 2770311 | 2284590 |
|  |  |  |  |  |  | 419092156 |  |  |
| **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** | **Real Estate 4.5%** |
| **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** | **U.S. REITs 4.5%** |
| Schwab U.S. REIT ETF  | 56558717 | 26329786 | (18695358)<br>| 316138 | 154879 | 64664162 | 3009035 | 2081891 |
| **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** | **Fixed Income 10.0%** |
| **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** | **Intermediate-Term Bond 10.0%** |
| Schwab U.S. Aggregate Bond ETF  | 94922441 | 53729173 | (6067423)<br>| (893041)<br>| 923188 | 142614338 | 6141875 | 4803700 |
| **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** |
| Schwab Government Money Fund, <br> Ultra Shares, 3.53% <sup>(b)</sup> <br>| 1109979 | 44750 |  |  |  | 1154729 | 1154729 | 44612 |
| **Total Affiliated Underlying Funds** <br>**(Cost $1,058,132,181)**<br>| **$1027949617** | **$343040232** | **($123138964)**<br>| **$2000449** | **$171836709** | **$1421688043** |  | **$28375649** |
| **Total Investments in Securities** <br>**(Cost $1,058,132,181)**<br>|  |  |  |  |  | **$1421688043** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**43**

------

Schwab Target 2050 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $1,058,132,181)  |  | $1421688043 |
| Cash |  | 9738728 |
| Receivables: |  |  |
| Investments sold |  | 10182925 |
| Fund shares sold |  | 1730573 |
| Dividends | + | 1784 |
| **Total assets** |  | **1443342053** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 12014300 |
| Fund shares redeemed |  | 1194086 |
| Investment adviser fees | + | 53376 |
| **Total liabilities** |  | **13261762** |
| **Net assets** |  | **$1430080291** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $1075824901 |
| Total distributable earnings | + | 354255390 |
| **Net assets** |  | **$1430080291** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1430080291 |  | &nbsp;&nbsp;&nbsp;&nbsp; 66442053 |  | &nbsp;&nbsp;&nbsp;&nbsp; $21.52 |

---

*See financial notes*

**44**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2050 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $28375644 |
| Other Interest | + | 125987 |
| **Total investment income**  |  | **28501631** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 1021025 |
| **Total expenses** |  | **1021025** |
| Expense reduction | – | 599568 |
| **Net expenses** | – | **421457** |
| **Net investment income** |  | **28080174** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Realized capital gain distributions received from underlying funds - affiliated issuers  |  | 5 |
| Net realized gains on sales of securities - affiliated issuers  | + | 2000449 |
| **Net realized gains** |  | **2000454** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **171836709** |
| **Net realized and unrealized gains** |  | **173837163** |
| **Increase in net assets resulting from operations** |  | **$201917337** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**45**

------

Schwab Target 2050 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $28080174 | &nbsp;&nbsp;&nbsp; $20551018 |
| Net realized gains (losses) |  | 2000454 | &nbsp;&nbsp;&nbsp; (3806171)<br>|
| Net change in unrealized appreciation (depreciation) | + | 171836709 | &nbsp;&nbsp;&nbsp; 39888806 |
| **Increase in net assets resulting from operations** |  | **$201917337** | &nbsp;&nbsp;&nbsp; **$56633653** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($27311448)**<br>| &nbsp;&nbsp;&nbsp; **($19965341)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 19103098 | &nbsp;&nbsp;&nbsp; $401488438 | &nbsp;&nbsp;&nbsp; 17958118 | &nbsp;&nbsp;&nbsp; $334496655 |
| Shares reinvested |  | 1218635 | &nbsp;&nbsp;&nbsp; 26724665 | &nbsp;&nbsp;&nbsp; 1048983 | &nbsp;&nbsp;&nbsp; 19542560 |
| Shares redeemed | + | (9807381)<br>| &nbsp;&nbsp;&nbsp; (206031891)<br>| &nbsp;&nbsp;&nbsp; (8477267)<br>| &nbsp;&nbsp;&nbsp; (158756058)<br>|
| **Net transactions in fund shares**  |  | **10514352** | &nbsp;&nbsp;&nbsp; **$222181212** | &nbsp;&nbsp;&nbsp; **10529834** | &nbsp;&nbsp;&nbsp; **$195283157** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 55927701 | &nbsp;&nbsp;&nbsp; $1033293190 | &nbsp;&nbsp;&nbsp; 45397867 | &nbsp;&nbsp;&nbsp; $801341721 |
| Total increase | + | 10514352 | &nbsp;&nbsp;&nbsp; 396787101 | &nbsp;&nbsp;&nbsp; 10529834 | &nbsp;&nbsp;&nbsp; 231951469 |
| **End of period** |  | **66442053** | &nbsp;&nbsp;&nbsp; **$1430080291** | &nbsp;&nbsp;&nbsp; **55927701** | &nbsp;&nbsp;&nbsp; **$1033293190** |

---

*See financial notes*

**46**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2055 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $18.75 | &nbsp;&nbsp; $17.90 | &nbsp;&nbsp; $15.09 | &nbsp;&nbsp; $16.62 | &nbsp;&nbsp; $15.88 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.46 | 0.41 | 0.36 | 0.31 | 0.33 |
| Net realized and unrealized gains (losses) | 3.17 | 0.82 | 2.78 | &nbsp;&nbsp; (1.57)<br>| 0.73 |
| Total from investment operations | 3.63 | 1.23 | 3.14 | &nbsp;&nbsp; (1.26)<br>| 1.06 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.31)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.33)<br>| &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.32)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $21.95 | &nbsp;&nbsp; $18.75 | &nbsp;&nbsp; $17.90 | &nbsp;&nbsp; $15.09 | &nbsp;&nbsp; $16.62 |
| Total return | 19.33<br> %<br>| 6.83<br> %<br>| 20.98<br> %<br>| &nbsp;&nbsp; (7.47<br> %)<br>| 6.51<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.02<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.15<br> %<br>| 2.15<br> %<br>| 2.25<br> %<br>| 2.11<br> %<br>| 1.94<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 6<br> %<br>| &nbsp;&nbsp; 8<br> %<br>| &nbsp;&nbsp; 7<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $984 | &nbsp;&nbsp; $686 | &nbsp;&nbsp; $526 | &nbsp;&nbsp; $336 | &nbsp;&nbsp; $279 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.06%, 0.05%, 0.04% and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**47**

------

Schwab Target 2055 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.5% OF NET ASSETS |
| **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** | **U.S. Stocks 57.0%** |
| **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** | **Large-Cap 50.9%** |
| Schwab U.S. Large-Cap ETF  | $351570257 | $118289783 | ($25129182)<br>| ($186984)<br>| $56388165 | $500932039 | 19537131 | $5307963 |
| **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** | **Small-Cap 6.1%** |
| Schwab U.S. Small-Cap ETF  | 42619826 | 13261476 | (6512789)<br>| (14361)<br>| 11190233 | 60544385 | 2081994 | 678721 |
|  |  |  |  |  |  | 561476424 |  |  |
| **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** | **International Stocks 30.9%** |
| **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** | **Developed Markets 23.8%** |
| Schwab International Equity ETF  | 161601512 | 63298801 | (34330404)<br>| 1379878 | 42672194 | 234621981 | 9479676 | 7422598 |
| **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** | **Emerging Markets 7.1%** |
| Schwab Emerging Markets Equity ETF  | 44102020 | 20649569 | (4117571)<br>| 238937 | 8823972 | 69696927 | 2115233 | 1701096 |
|  |  |  |  |  |  | 304318908 |  |  |
| **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** | **Real Estate 4.6%** |
| **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** | **U.S. REITs 4.6%** |
| Schwab U.S. REIT ETF  | 38374399 | 19464135 | (12780822)<br>| 203836 | 151507 | 45413055 | 2113218 | 1440851 |
| **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** | **Fixed Income 6.9%** |
| **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** | **Intermediate-Term Bond 6.9%** |
| Schwab U.S. Aggregate Bond ETF  | 44034062 | 26408446 | (2907482)<br>| (419956)<br>| 448861 | 67563931 | 2909730 | 2263670 |
| **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** | **Money Market Funds 0.1%** |
| Schwab Government Money Fund, Ultra <br> Shares, 3.53% <sup>(b)</sup> <br>| 75716 | 506465 |  |  |  | 582181 | 582181 | 7234 |
| **Total Affiliated Underlying Funds** <br>**(Cost $734,523,770)**<br>| **$682377792** | **$261878675** | **($85778250)**<br>| **$1201350** | **$119674932** | **$979354499** |  | **$18822133** |
| **Total Investments in Securities** <br>**(Cost $734,523,770)**<br>|  |  |  |  |  | **$979354499** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

<sup>(b)</sup> The rate shown is the annualized 7-day yield.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**48**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2055 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $734,523,770)  |  | $979354499 |
| Cash |  | 6082875 |
| Receivables: |  |  |
| Investments sold |  | 6623992 |
| Fund shares sold |  | 1003716 |
| Dividends | + | 900 |
| **Total assets** |  | **993065982** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 7858374 |
| Fund shares redeemed |  | 969703 |
| Investment adviser fees | + | 35295 |
| **Total liabilities** |  | **8863372** |
| **Net assets** |  | **$984202610** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $745383553 |
| Total distributable earnings | + | 238819057 |
| **Net assets** |  | **$984202610** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $984202610 |  | &nbsp;&nbsp;&nbsp;&nbsp; 44844341 |  | &nbsp;&nbsp;&nbsp;&nbsp; $21.95 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**49**

------

Schwab Target 2055 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $18822133 |
| Other Interest | + | 83664 |
| **Total investment income**  |  | **18905797** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 692170 |
| **Total expenses** |  | **692170** |
| Expense reduction | – | 416621 |
| **Net expenses** | – | **275549** |
| **Net investment income** |  | **18630248** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| **Net realized gains on sales of securities - affiliated issuers**  |  | **1201350** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **119674932** |
| **Net realized and unrealized gains** |  | **120876282** |
| **Increase in net assets resulting from operations** |  | **$139506530** |

---

*See financial notes*

**50**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2055 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $18630248 | &nbsp;&nbsp;&nbsp; $13358757 |
| Net realized gains (losses) |  | 1201350 | &nbsp;&nbsp;&nbsp; (2479113)<br>|
| Net change in unrealized appreciation (depreciation) | + | 119674932 | &nbsp;&nbsp;&nbsp; 26249520 |
| **Increase in net assets resulting from operations** |  | **$139506530** | &nbsp;&nbsp;&nbsp; **$37129164** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($18106227)**<br>| &nbsp;&nbsp;&nbsp; **($12992471)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 13876148 | &nbsp;&nbsp;&nbsp; $296869095 | &nbsp;&nbsp;&nbsp; 12668648 | &nbsp;&nbsp;&nbsp; $239821781 |
| Shares reinvested |  | 779536 | &nbsp;&nbsp;&nbsp; 17438223 | &nbsp;&nbsp;&nbsp; 663790 | &nbsp;&nbsp;&nbsp; 12558901 |
| Shares redeemed | + | (6417042)<br>| &nbsp;&nbsp;&nbsp; (137682970)<br>| &nbsp;&nbsp;&nbsp; (6090366)<br>| &nbsp;&nbsp;&nbsp; (115947685)<br>|
| **Net transactions in fund shares**  |  | **8238642** | &nbsp;&nbsp;&nbsp; **$176624348** | &nbsp;&nbsp;&nbsp; **7242072** | &nbsp;&nbsp;&nbsp; **$136432997** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 36605699 | &nbsp;&nbsp;&nbsp; $686177959 | &nbsp;&nbsp;&nbsp; 29363627 | &nbsp;&nbsp;&nbsp; $525608269 |
| Total increase | + | 8238642 | &nbsp;&nbsp;&nbsp; 298024651 | &nbsp;&nbsp;&nbsp; 7242072 | &nbsp;&nbsp;&nbsp; 160569690 |
| **End of period** |  | **44844341** | &nbsp;&nbsp;&nbsp; **$984202610** | &nbsp;&nbsp;&nbsp; **36605699** | &nbsp;&nbsp;&nbsp; **$686177959** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**51**

------

Schwab Target 2060 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $18.91 | &nbsp;&nbsp; $18.04 | &nbsp;&nbsp; $15.17 | &nbsp;&nbsp; $16.73 | &nbsp;&nbsp; $15.95 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.46 | 0.40 | 0.36 | 0.31 | 0.33 |
| Net realized and unrealized gains (losses) | 3.27 | 0.85 | 2.85 | &nbsp;&nbsp; (1.59)<br>| 0.77 |
| Total from investment operations | 3.73 | 1.25 | 3.21 | &nbsp;&nbsp; (1.28)<br>| 1.10 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.34)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.31)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (0.01)<br>|
| Total distributions | &nbsp;&nbsp; (0.43)<br>| &nbsp;&nbsp; (0.38)<br>| &nbsp;&nbsp; (0.34)<br>| &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.32)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $22.21 | &nbsp;&nbsp; $18.91 | &nbsp;&nbsp; $18.04 | &nbsp;&nbsp; $15.17 | &nbsp;&nbsp; $16.73 |
| Total return | 19.69<br> %<br>| 6.89<br> %<br>| 21.30<br> %<br>| &nbsp;&nbsp; (7.56<br> %)<br>| 6.74<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>2</sup> <br>| 0.03<br> %<br>| 0.02<br> %<br>| 0.03<br> %<br>| 0.04 %<sup>3</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>2</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>3</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.12<br> %<br>| 2.11<br> %<br>| 2.23<br> %<br>| 2.10<br> %<br>| 1.95<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 13<br> %<br>| &nbsp;&nbsp; 7<br> %<br>| &nbsp;&nbsp; 8<br> %<br>| &nbsp;&nbsp; 6<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $1146 | &nbsp;&nbsp; $794 | &nbsp;&nbsp; $611 | &nbsp;&nbsp; $401 | &nbsp;&nbsp; $345 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 0.05%, 0.06%, 0.05%, 0.04%, and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>3</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

**52**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2060 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS |
| **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** | **U.S. Stocks 57.9%** |
| **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** | **Large-Cap 51.5%** |
| Schwab U.S. Large-Cap ETF  | $411508316 | $142413735 | ($28489299)<br>| ($276538)<br>| $64974539 | $590130753 | 23016020 | $6210827 |
| **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** | **Small-Cap 6.4%** |
| Schwab U.S. Small-Cap ETF  | 51547781 | 16357231 | (7563159)<br>| (14176)<br>| 13437407 | 73765084 | 2536626 | 818114 |
|  |  |  |  |  |  | 663895837 |  |  |
| **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** | **International Stocks 31.9%** |
| **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** | **Developed Markets 24.4%** |
| Schwab International Equity ETF  | 191486639 | 73800153 | (37486003)<br>| 1500672 | 50243948 | 279545409 | 11294764 | 8758773 |
| **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** | **Emerging Markets 7.5%** |
| Schwab Emerging Markets Equity ETF  | 54213979 | 25670185 | (4726213)<br>| 253880 | 10711660 | 86123491 | 2613763 | 2084602 |
|  |  |  |  |  |  | 365668900 |  |  |
| **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** | **Real Estate 4.7%** |
| **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** | **U.S. REITs 4.7%** |
| Schwab U.S. REIT ETF  | 45147468 | 23348060 | (15101161)<br>| 219367 | 195636 | 53809370 | 2503926 | 1692218 |
| **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** | **Fixed Income 4.9%** |
| **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** | **Intermediate-Term Bond 4.9%** |
| Schwab U.S. Aggregate Bond ETF  | 35446542 | 22846663 | (2466491)<br>| (364796)<br>| 351113 | 55813031 | 2403662 | 1825002 |
| **Total Affiliated Underlying Funds** <br>**(Cost $851,782,320)**<br>| **$789350725** | **$304436027** | **($95832326)**<br>| **$1318409** | **$139914303** | **$1139187138** |  | **$21389536** |
| **Total Investments in Securities** <br>**(Cost $851,782,320)**<br>|  |  |  |  |  | **$1139187138** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**53**

------

Schwab Target 2060 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $851,782,320)  |  | $1139187138 |
| Cash |  | 6990536 |
| Receivables: |  |  |
| Investments sold |  | 7655470 |
| Fund shares sold | + | 1719303 |
| **Total assets** |  | **1155552447** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 9228333 |
| Fund shares redeemed |  | 641149 |
| Investment adviser fees | + | 41774 |
| **Total liabilities** |  | **9911256** |
| **Net assets** |  | **$1145641191** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $866346860 |
| Total distributable earnings | + | 279294331 |
| **Net assets** |  | **$1145641191** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $1145641191 |  | &nbsp;&nbsp;&nbsp;&nbsp; 51586251 |  | &nbsp;&nbsp;&nbsp;&nbsp; $22.21 |

---

*See financial notes*

**54**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2060 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $21389536 |
| Other Interest | + | 94779 |
| **Total investment income**  |  | **21484315** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 798457 |
| **Total expenses** |  | **798457** |
| Expense reduction | – | 475287 |
| **Net expenses** | – | **323170** |
| **Net investment income** |  | **21161145** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| **Net realized gains on sales of securities - affiliated issuers**  |  | **1318409** |
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **139914303** |
| **Net realized and unrealized gains** |  | **141232712** |
| **Increase in net assets resulting from operations** |  | **$162393857** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**55**

------

Schwab Target 2060 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $21161145 | &nbsp;&nbsp;&nbsp; $15077608 |
| Net realized gains (losses) |  | 1318409 | &nbsp;&nbsp;&nbsp; (2203515)<br>|
| Net change in unrealized appreciation (depreciation) | + | 139914303 | &nbsp;&nbsp;&nbsp; 29969462 |
| **Increase in net assets resulting from operations** |  | **$162393857** | &nbsp;&nbsp;&nbsp; **$42843555** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($20579188)**<br>| &nbsp;&nbsp;&nbsp; **($14713664)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 16323170 | &nbsp;&nbsp;&nbsp; $355606534 | &nbsp;&nbsp;&nbsp; 14587484 | &nbsp;&nbsp;&nbsp; $278691010 |
| Shares reinvested |  | 879088 | &nbsp;&nbsp;&nbsp; 19902545 | &nbsp;&nbsp;&nbsp; 750143 | &nbsp;&nbsp;&nbsp; 14320225 |
| Shares redeemed | + | (7615431)<br>| &nbsp;&nbsp;&nbsp; (165735475)<br>| &nbsp;&nbsp;&nbsp; (7221785)<br>| &nbsp;&nbsp;&nbsp; (138461291)<br>|
| **Net transactions in fund shares**  |  | **9586827** | &nbsp;&nbsp;&nbsp; **$209773604** | &nbsp;&nbsp;&nbsp; **8115842** | &nbsp;&nbsp;&nbsp; **$154549944** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 41999424 | &nbsp;&nbsp;&nbsp; $794052918 | &nbsp;&nbsp;&nbsp; 33883582 | &nbsp;&nbsp;&nbsp; $611373083 |
| Total increase | + | 9586827 | &nbsp;&nbsp;&nbsp; 351588273 | &nbsp;&nbsp;&nbsp; 8115842 | &nbsp;&nbsp;&nbsp; 182679835 |
| **End of period** |  | **51586251** | &nbsp;&nbsp;&nbsp; **$1145641191** | &nbsp;&nbsp;&nbsp; **41999424** | &nbsp;&nbsp;&nbsp; **$794052918** |

---

*See financial notes*

**56**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2065 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 4/1/22– <br>3/31/23<br>| 4/1/21– <br>3/31/22<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $12.25 | &nbsp;&nbsp; $11.67 | &nbsp;&nbsp; $9.77 | &nbsp;&nbsp; $10.76 | &nbsp;&nbsp; $10.21 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.30 | 0.27 | 0.24 | 0.20 | 0.25 |
| Net realized and unrealized gains (losses) | 2.17 | 0.53 | 1.86 | &nbsp;&nbsp; (1.03)<br>| 0.44 <br><sup>2</sup><br>|
| Total from investment operations | 2.47 | 0.80 | 2.10 | &nbsp;&nbsp; (0.83)<br>| 0.69 |
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.27)<br>| &nbsp;&nbsp; (0.22)<br>| &nbsp;&nbsp; (0.20)<br>| &nbsp;&nbsp; (0.16)<br>| &nbsp;&nbsp; (0.14)<br>|
| Distributions from net realized gains  | &nbsp;&nbsp; (0.01)<br>| &nbsp;&nbsp; (0.00 )<sup>3</sup><br>| &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — |
| Total distributions | &nbsp;&nbsp; (0.28)<br>| &nbsp;&nbsp; (0.22)<br>| &nbsp;&nbsp; (0.20)<br>| &nbsp;&nbsp; (0.16)<br>| &nbsp;&nbsp; (0.14)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $14.44 | &nbsp;&nbsp; $12.25 | &nbsp;&nbsp; $11.67 | &nbsp;&nbsp; $9.77 | &nbsp;&nbsp; $10.76 |
| Total return | 20.07<br> %<br>| 6.81<br> %<br>| 21.62<br> %<br>| &nbsp;&nbsp; (7.58<br> %)<br>| 6.69<br> %<br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Net expenses<sup>4</sup> <br>| 0.03<br> %<br>| 0.01<br> %<br>| 0.02<br> %<br>| 0.03 %<sup>5</sup><br>| 0.03<br> %<br>|
| Total expenses<sup>4</sup> <br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08<br> %<br>| 0.08 %<sup>5</sup><br>| 0.08<br> %<br>|
| Net investment income (loss) | 2.11<br> %<br>| 2.16<br> %<br>| 2.26<br> %<br>| 2.13<br> %<br>| 2.30<br> %<br>|
| Portfolio turnover rate | &nbsp;&nbsp; 10<br> %<br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 7<br> %<br>| &nbsp;&nbsp; 19<br> %<br>| &nbsp;&nbsp; 19<br> %<br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $382 | &nbsp;&nbsp; $212 | &nbsp;&nbsp; $109 | &nbsp;&nbsp; $48 | &nbsp;&nbsp; $29 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> 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 fund transactions in relation to fluctuating market values. 

<sup>3</sup> Per-share amount was less than $0.005.

<sup>4</sup> 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 0.05%, 0.07%, 0.06%, 0.05%, and 0.05%, respectively, for the periods ended March 31, 2026, March 31, 2025, March 31, 2024, March 31, 2023, and March 31, 2022. 

<sup>5</sup> Ratio includes less than 0.005% of non-routine proxy expenses.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**57**

------

Schwab Target 2065 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 3/31/25<br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(a)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS |
| **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** | **U.S. Stocks 58.8%** |
| **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** | **Large-Cap 52.1%** |
| Schwab U.S. Large-Cap ETF  | $111207687 | $79479146 | ($8539356)<br>| ($132539)<br>| $17181145 | $199196083 | 7768958 | $1913908 |
| **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** | **Small-Cap 6.7%** |
| Schwab U.S. Small-Cap ETF  | 14384708 | 9840691 | (2457038)<br>| (65372)<br>| 4013211 | 25716200 | 884326 | 256576 |
|  |  |  |  |  |  | 224912283 |  |  |
| **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** | **International Stocks 32.9%** |
| **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** | **Developed Markets 24.9%** |
| Schwab International Equity ETF  | 52392710 | 39729111 | (11835934)<br>| 189128 | 14941779 | 95416794 | 3855224 | 2693125 |
| **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** |
| Schwab Emerging Markets Equity ETF  | 15367573 | 13660475 | (1619028)<br>| 20915 | 3162558 | 30592493 | 928452 | 669291 |
|  |  |  |  |  |  | 126009287 |  |  |
| **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** |
| **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** |
| Schwab U.S. REIT ETF  | 12316970 | 10804677 | (4972110)<br>| 8162 | 128744 | 18286443 | 850928 | 522044 |
| **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** | **Fixed Income 2.9%** |
| **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** | **Intermediate-Term Bond 2.9%** |
| Schwab U.S. Aggregate Bond ETF  | 5261674 | 6183178 | (402273)<br>| (33172)<br>| 13243 | 11022650 | 474705 | 305475 |
| **Total Affiliated Underlying Funds** <br>**(Cost $322,932,487)**<br>| **$210931322** | **$159697278** | **($29825739)**<br>| **($12878)**<br>| **$39440680** | **$380230663** |  | **$6360419** |
| **Total Investments in Securities** <br>**(Cost $322,932,487)**<br>|  |  |  |  |  | **$380230663** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> 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. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

**58**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2065 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $322,932,487)  |  | $380230663 |
| Cash |  | 2538793 |
| Receivables: |  |  |
| Investments sold |  | 2286574 |
| Fund shares sold | + | 816560 |
| **Total assets** |  | **385872590** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 2973574 |
| Fund shares redeemed |  | 477049 |
| Investment adviser fees | + | 13263 |
| **Total liabilities** |  | **3463886** |
| **Net assets** |  | **$382408704** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $327239452 |
| Total distributable earnings | + | 55169252 |
| **Net assets** |  | **$382408704** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $382408704 |  | &nbsp;&nbsp;&nbsp;&nbsp; 26477452 |  | &nbsp;&nbsp;&nbsp;&nbsp; $14.44 |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**59**

------

Schwab Target 2065 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 | For the period April 1, 2025 through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $6360419 |
| Other Interest | + | 27891 |
| **Total investment income**  |  | **6388310** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 238999 |
| **Total expenses** |  | **238999** |
| Expense reduction | – | 146909 |
| **Net expenses** | – | **92090** |
| **Net investment income** |  | **6296220** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| **Net realized losses on sales of securities - affiliated issuers**  |  | **(12878)**<br>|
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **39440680** |
| **Net realized and unrealized gains** |  | **39427802** |
| **Increase in net assets resulting from operations** |  | **$45724022** |

---

*See financial notes*

**60**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2065 Index Fund

Statement of Changes in Net Assets

------

For the current and prior report periods

---

| | | | |
|:---|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 |
| Net investment income |  | $6296220 | &nbsp;&nbsp;&nbsp; $3461026 |
| Net realized losses |  | (12878)<br>| &nbsp;&nbsp;&nbsp; (729034)<br>|
| Net change in unrealized appreciation (depreciation) | + | 39440680 | &nbsp;&nbsp;&nbsp; 4889518 |
| **Increase in net assets resulting from operations** |  | **$45724022** | &nbsp;&nbsp;&nbsp; **$7621510** |
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($6154804)**<br>| &nbsp;&nbsp;&nbsp; **($3248791)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | VALUE | SHARES | VALUE |
| Shares sold |  | 13002352 | &nbsp;&nbsp;&nbsp; $184495629 | &nbsp;&nbsp;&nbsp; 10947802 | &nbsp;&nbsp;&nbsp; $135828603 |
| Shares reinvested |  | 399423 | &nbsp;&nbsp;&nbsp; 5879515 | &nbsp;&nbsp;&nbsp; 249323 | &nbsp;&nbsp;&nbsp; 3086617 |
| Shares redeemed | + | (4230509)<br>| &nbsp;&nbsp;&nbsp; (59621794)<br>| &nbsp;&nbsp;&nbsp; (3229875)<br>| &nbsp;&nbsp;&nbsp; (40182272)<br>|
| **Net transactions in fund shares**  |  | **9171266** | &nbsp;&nbsp;&nbsp; **$130753350** | &nbsp;&nbsp;&nbsp; **7967250** | &nbsp;&nbsp;&nbsp; **$98732948** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/25-3/31/26 | 4/1/24-3/31/25 | 4/1/24-3/31/25 |
|  |  | SHARES | NET ASSETS | SHARES | NET ASSETS |
| Beginning of period |  | 17306186 | &nbsp;&nbsp;&nbsp; $212086136 | &nbsp;&nbsp;&nbsp; 9338936 | &nbsp;&nbsp;&nbsp; $108980469 |
| Total increase | + | 9171266 | &nbsp;&nbsp;&nbsp; 170322568 | &nbsp;&nbsp;&nbsp; 7967250 | &nbsp;&nbsp;&nbsp; 103105667 |
| **End of period** |  | **26477452** | &nbsp;&nbsp;&nbsp; **$382408704** | &nbsp;&nbsp;&nbsp; **17306186** | &nbsp;&nbsp;&nbsp; **$212086136** |

---

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**61**

------

Schwab Target 2070 Index Fund

Financial Statements

**FINANCIAL HIGHLIGHTS**

---

| | |
|:---|:---|
|  | 2/26/26\*– <br>3/31/26<br>|
| **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $10.00 |
| Income (loss) from investment operations: |  |
| Net investment income (loss)<sup>1</sup> <br>| 0.02 |
| Net realized and unrealized gains (losses) | &nbsp;&nbsp; (0.68)<br>|
| Total from investment operations | &nbsp;&nbsp; (0.66)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $9.34 |
| Total return | &nbsp;&nbsp; (6.60 %)<sup>2</sup><br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |
| Net expenses<sup>3</sup> <br>| 0.04 %<sup>4</sup><br>|
| Total expenses<sup>3</sup> <br>| 0.08 %<sup>4</sup><br>|
| Net investment income (loss) | 2.04 %<sup>4</sup><br>|
| Portfolio turnover rate | &nbsp;&nbsp; 0 %<sup>2,5</sup><br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $30 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Commencement of operations.

<sup>1</sup> Calculated based on the average shares outstanding during the period.

<sup>2</sup> Not annualized.

<sup>3</sup> 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), for the period ended March 31, 2026. 

<sup>4</sup> Annualized.

<sup>5</sup> Portfolio turnover rate is less than 1%.

*See financial notes*

**62**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2070 Index Fund

Portfolio Holdings as of March 31, 2026

------

This section includes a summary of the fund's transactions with its affiliated underlying funds during the period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SECURITY | VALUE AT<br> 2/26/26<sup>(a)</sup> <br>| PURCHASES | SALES | NET REALIZED<br> GAINS (LOSSES)<br>| NET CHANGE IN<br> UNREALIZED<br> APPRECIATION<br> (DEPRECIATION)<br>| VALUE AT<br> 3/31/26<br>| BALANCE<br> OF SHARES<br> HELD AT<br> 3/31/26<br>| DISTRIBUTIONS<br> RECEIVED<sup>(b)</sup> <br>|
| **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS | **AFFILIATED UNDERLYING FUNDS** 99.4% OF NET ASSETS |
| **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** | **U.S. Stocks 59.0%** |
| **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** | **Large-Cap 52.2%** |
| Schwab U.S. Large-Cap ETF  | $— | $16872938 | ($117431)<br>| ($7740)<br>| ($995526)<br>| $15752241 | 614362 | $44675 |
| **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** | **Small-Cap 6.8%** |
| Schwab U.S. Small-Cap ETF  |  | 2170828 |  |  | (111673)<br>| 2059155 | 70810 | 2700 |
|  |  |  |  |  |  | 17811396 |  |  |
| **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** | **International Stocks 33.1%** |
| **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** | **Developed Markets 25.1%** |
| Schwab International Equity ETF  |  | 8216706 |  |  | (654244)<br>| 7562462 | 305554 |  |
| **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** | **Emerging Markets 8.0%** |
| Schwab Emerging Markets Equity ETF  |  | 2639516 |  |  | (207411)<br>| 2432105 | 73812 |  |
|  |  |  |  |  |  | 9994567 |  |  |
| **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** | **Real Estate 4.8%** |
| **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** | **U.S. REITs 4.8%** |
| Schwab U.S. REIT ETF  |  | 1532900 |  |  | (89309)<br>| 1443591 | 67175 | 7624 |
| **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** | **Fixed Income 2.5%** |
| **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** | **Intermediate-Term Bond 2.5%** |
| Schwab U.S. Aggregate Bond ETF  |  | 784263 | (21402)<br>| (385)<br>| (12702)<br>| 749774 | 32290 | 2449 |
| **Total Affiliated Underlying Funds** <br>**(Cost $32,070,193)**<br>| **$—** | **$32217151** | **($138833)**<br>| **($8125)**<br>| **($2070865)**<br>| **$29999328** |  | **$57448** |
| **Total Investments in Securities** <br>**(Cost $32,070,193)**<br>|  |  |  |  |  | **$29999328** |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>(a)</sup> Commencement of operations.

<sup>(b)</sup> 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. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

ETF — Exchange-Traded Fund <br> REIT — Real Estate Investment Trust

At March 31, 2026, all of the fund's investment securities were classified as Level 1.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**63**

------

Schwab Target 2070 Index Fund

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - affiliated issuers (cost $32,070,193)  |  | $29999328 |
| Cash |  | 206879 |
| Receivables: |  |  |
| Investments sold |  | 138833 |
| Fund shares sold | + | 66789 |
| **Total assets** |  | **30411829** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Investments bought |  | 233587 |
| Investment adviser fees | + | 933 |
| **Total liabilities** |  | **234520** |
| **Net assets** |  | **$30177309** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $32200033 |
| Total distributable loss | + | (2022724)<br>|
| **Net assets** |  | **$30177309** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  | **Net Asset Value (NAV)**  |
| **Net Assets**  | **÷** | &nbsp;&nbsp;&nbsp;&nbsp; **Shares**<br> **Outstanding**<br>| **=** | **NAV** |
| $30177309 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3230294 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $9.34 |

---

*See financial notes*

**64**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target 2070 Index Fund

Statement of Operations

------

---

| | | |
|:---|:---|:---|
| For the period February 26, 2026\* through March 31, 2026 | For the period February 26, 2026\* through March 31, 2026 | For the period February 26, 2026\* through March 31, 2026 |
| **Investment Income**  | **Investment Income**  | **Investment Income**  |
| Dividends received from securities - affiliated issuers |  | $57448 |
| Other Interest | + | 14 |
| **Total investment income**  |  | **57462** |
| **Expenses** | **Expenses** | **Expenses** |
| Investment adviser fees |  | 2210 |
| **Total expenses** |  | **2210** |
| Expense reduction | – | 1014 |
| **Net expenses** | – | **1196** |
| **Net investment income** |  | **56266** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| **Net realized losses on sales of securities - affiliated issuers**  |  | **(8125)**<br>|
| **Net change in unrealized appreciation (depreciation) on securities - affiliated issuers**  | + | **(2070865)**<br>|
| **Net realized and unrealized losses** |  | **(2078990)**<br>|
| **Decrease in net assets resulting from operations** |  | **($2022724)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Commencement of operations.

*See financial notes*

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**65**

------

Schwab Target 2070 Index Fund

Statement of Changes in Net Assets

------

For the current period only

---

| | | |
|:---|:---|:---|
| **OPERATIONS** | **OPERATIONS** | **OPERATIONS** |
|  | 2/26/26\*-3/31/26 | 2/26/26\*-3/31/26 |
| Net investment income |  | $56266 |
| Net realized losses |  | (8125)<br>|
| Net change in unrealized appreciation (depreciation) | + | (2070865)<br>|
| **Decrease in net assets from operations** |  | **($2022724)**<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** | **TRANSACTIONS IN FUND SHARES** |
|  | 2/26/26\*-3/31/26 | 2/26/26\*-3/31/26 | 2/26/26\*-3/31/26 |
|  |  | SHARES | VALUE |
| Shares sold |  | 3234274 | &nbsp;&nbsp;&nbsp; $32237377 |
| Shares redeemed | + | (3980)<br>| &nbsp;&nbsp;&nbsp; (37344)<br>|
| **Net transactions in fund shares**  |  | **3230294** | &nbsp;&nbsp;&nbsp; **$32200033** |
| **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** | **SHARES OUTSTANDING AND NET ASSETS** |
|  | 2/26/26\*-3/31/26 | 2/26/26\*-3/31/26 | 2/26/26\*-3/31/26 |
|  |  | SHARES | NET ASSETS |
| Beginning of period |  |  | &nbsp;&nbsp;&nbsp; $— |
| Total increase | + | 3230294 | &nbsp;&nbsp;&nbsp; 30177309 |
| **End of period** |  | **3230294** | &nbsp;&nbsp;&nbsp; **$30177309** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<sup>\*</sup> Commencement of operations.

*See financial notes*

**66**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Financial Notes

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Business Structure of the Funds:**

Each of the funds in this report is a series of Schwab Capital Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The list below shows all the operational funds in the trust as of the end of the period, including the funds discussed in this report, which are highlighted:

---

| | |
|:---|:---|
| **SCHWAB CAPITAL TRUST** | **SCHWAB CAPITAL TRUST** |
| **Schwab Target 2010 Index Fund** | Schwab Dividend Equity Fund |
| **Schwab Target 2015 Index Fund** | Schwab Large-Cap Growth Fund |
| **Schwab Target 2020 Index Fund** | Schwab Small-Cap Equity Fund |
| **Schwab Target 2025 Index Fund** | Schwab Health Care Fund |
| **Schwab Target 2030 Index Fund** | Schwab International Core Equity Fund |
| **Schwab Target 2035 Index Fund** | Schwab Target 2010 Fund |
| **Schwab Target 2040 Index Fund** | Schwab Target 2015 Fund |
| **Schwab Target 2045 Index Fund** | Schwab Target 2020 Fund |
| **Schwab Target 2050 Index Fund** | Schwab Target 2025 Fund |
| **Schwab Target 2055 Index Fund** | Schwab Target 2030 Fund |
| **Schwab Target 2060 Index Fund** | Schwab Target 2035 Fund |
| **Schwab Target 2065 Index Fund** | Schwab Target 2040 Fund |
| **Schwab Target 2070 Index Fund** | Schwab Target 2045 Fund |
| Schwab S&P 500 Index Fund | Schwab Target 2050 Fund |
| Schwab Small-Cap Index Fund | Schwab Target 2055 Fund |
| Schwab Total Stock Market Index Fund | Schwab Target 2060 Fund |
| Schwab U.S. Large-Cap Growth Index Fund | Schwab Target 2065 Fund |
| Schwab U.S. Large-Cap Value Index Fund | Schwab Target 2070 Fund |
| Schwab U.S. Mid-Cap Index Fund | Schwab Fundamental U.S. Large Company Index Fund |
| Schwab International Index Fund | Schwab Fundamental U.S. Small Company Index Fund |
| Schwab MarketTrack All Equity Portfolio™ | Schwab Fundamental International Equity Index Fund |
| Schwab MarketTrack Growth Portfolio™ | Schwab Fundamental International Small Equity Index Fund |
| Schwab MarketTrack Balanced Portfolio™ | Schwab Fundamental Emerging Markets Equity Index Fund |
| Schwab MarketTrack Conservative Portfolio™ | Schwab Fundamental Global Real Estate Index Fund |
| Schwab International Opportunities Fund | Schwab Monthly Income Fund - Target Payout |
| Schwab Balanced Fund | Schwab Monthly Income Fund - Flexible Payout |
| Schwab Core Equity Fund | Schwab Monthly Income Fund - Income Payout |

---

Each fund is considered a "fund of funds" because it invests in other exchange traded-funds or mutual funds. Each fund seeks to provide capital appreciation and income consistent with its current asset allocation. Each of the funds seeks to achieve its investment objective by investing primarily in affiliated Schwab ETFs. Each fund may also invest in affiliated Schwab mutual funds, and unaffiliated third-party exchange-traded funds and mutual funds (referred to herein as unaffiliated funds and, together with Schwab ETFs and Schwab mutual funds, as the "underlying funds"). Each fund invests in the underlying funds in accordance with its target portfolio allocation.

Each fund offers one share class. Shares are bought and sold at closing net asset value per share, which is the price for all outstanding shares of a fund. Each share has a par value of 1/1,000 of a cent, and the funds' Board of Trustees may authorize the issuance of as many shares as necessary.

The Schwab Target 2070 Index Fund commenced operations on February 26, 2026.

Each fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, each fund may also keep certain assets in segregated accounts, as required by securities law. The "Schwab Funds Complex" includes The Charles Schwab Family of Funds, Schwab Capital Trust, Schwab Investments, Schwab Annuity Portfolios, Schwab Strategic Trust and Laudus Trust.

------

**2. Significant Accounting Policies:**

The following is a summary of the significant accounting policies the funds use in their preparation of financial statements. The funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 946 Financial Services — Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (GAAP).

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**67**

------

Schwab Target Index Funds

Financial Notes (continued)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. Significant Accounting Policies (continued):** 

The financial statements of the funds should be read in conjunction with the underlying funds' financial statements. For more information about the underlying funds' operations and policies, please refer to those funds' semiannual and annual reports and holdings and financial statements, which are filed in Form N-CSR with the U.S. Securities and Exchange Commission (SEC) and available on the SEC's website at www.sec.gov.

**(a) Security Valuation:**

Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees has designated authority to a Valuation Designee, the funds' investment adviser, to make fair valuation determinations under adopted procedures, subject to Board of Trustees 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 each 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **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.

&nbsp;&nbsp;&nbsp;&nbsp;● **Mutual funds:** Mutual funds are valued at their respective net asset values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● **Securities for which no quoted value is available:** The Valuation Designee has adopted procedures to fair value a 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 a 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 GAAP, the funds disclose the fair value of their 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 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 and futures contracts. Mutual funds and exchange-traded funds 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● 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

**68**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Financial Notes (continued)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. Significant Accounting Policies (continued):** 

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 a 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 funds' investments are disclosed in each fund's Portfolio Holdings.

**(b) Accounting Policies for certain Portfolio Investments (if held):**

**Cash Investments:** The funds may invest a portion of their assets in cash. Cash includes cash bank balances in an interest-bearing demand deposit account with maturity on demand by the funds.

**(c) Security Transactions:** 

Security transactions are recorded as of the date the order to buy or sell the security is executed. Realized gains and losses from security transactions are based on the identified costs of the securities involved.

**(d) Investment Income:**

Interest income is recorded as it accrues. Dividends and distributions from portfolio securities and underlying funds are recorded on the date they are effective (the ex-dividend date). Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

**(e) Expenses:**

Pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust, the investment adviser will pay the operating expenses of each fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, but excluding shareholder servicing fees, acquired fund fees and expenses, taxes, any brokerage expenses and extraordinary or non-routine expenses. Acquired fund fees and expenses are indirect expenses incurred by the funds through its investments in underlying funds and are contractually waived by the investment adviser.

**(f) Distributions to Shareholders:**

The funds make distributions from net investment income and net realized capital gains, if any, once a year. To receive a distribution, you must be a registered shareholder on the record date. Distributions are paid to shareholders on the payable date.

**(g) Accounting Estimates:**

The accounting policies described in this report conform to GAAP. Notwithstanding this, shareholders should understand that in order to follow these principles, fund management has to make estimates and assumptions that affect the information reported in the financial statements. It's possible that once the results are known, they may turn out to be different from these estimates and these differences may be material.

**(h) Federal Income Taxes:**

The funds intend to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the funds distribute substantially all of their net investment income and net realized capital gains, if any, to their shareholders each year. As long as a fund meets the tax requirements, it is not required to pay federal income tax. The funds did not pay any federal taxes during the period.

**(i) Segment Reporting:**

An operating segment is defined in ASC Topic 280 Segment Reporting as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**69**

------

Schwab Target Index Funds

Financial Notes (continued)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**2. Significant Accounting Policies (continued):** 

The management committee of each fund's investment adviser acts as the funds' CODM. The CODM has determined that each fund operates as a single operating segment given each fund has a single defined investment strategy disclosed in its respective prospectus. The discrete financial information in the form of each fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, shares sold and shares redeemed), which is used by the CODM to assess performance against the prospectus and to make resource allocation decisions with respect to the funds, is presented within each fund's financial statements.

**(j) Indemnification:**

Under the funds' organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business the funds enter into contracts with their vendors and others that provide general indemnifications. The funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the funds. However, based on experience, the funds expect the risk of loss attributable to these arrangements to be remote.

------

**3. Affiliates and Affiliated Transactions:**

**Investment Adviser**

Charles Schwab Investment Management, Inc., dba Schwab Asset Management, a wholly owned subsidiary of The Charles Schwab Corporation, serves as each fund's investment adviser and administrator pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust.

For its advisory and administrative services to the funds, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.08% of each fund's average daily net assets.

**Expense Limitation**

The investment adviser and its affiliates have agreed with the funds, for so long as the investment adviser serves as the investment adviser to the funds, in which the agreement may only be amended or terminated with the approval of the Board of Trustees, to maintain the total annual operating expenses of each of the funds (including acquired fund fees and expenses, but excluding taxes and certain non-routine expenses) at 0.08%.

In the above agreement, the investment adviser and its affiliates have contractually agreed to waive acquired fund fees and expenses of the underlying funds in which the funds invest.

**Investments in Affiliates**

The funds may engage in certain transactions involving affiliated parties. Pursuant to an exemptive order issued by the SEC, each fund may invest in affiliated funds. As of March 31, 2026, each fund's ownership percentage of affiliated fund's shares is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| UNDERLYING FUNDS | SCHWAB<br> TARGET<br> 2010<br> INDEX<br> FUND<br>| SCHWAB<br> TARGET<br> 2015<br> INDEX<br> FUND<br>| SCHWAB<br> TARGET<br> 2020<br> INDEX<br> FUND<br>| SCHWAB<br> TARGET<br> 2025<br> INDEX<br> FUND<br>| SCHWAB<br> TARGET<br> 2030<br> INDEX<br> FUND<br>| SCHWAB<br> TARGET<br> 2035<br> INDEX<br> FUND<br>|
| Schwab Emerging Markets Equity ETF | —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| 0.2<br> %<br>| 0.4<br> %<br>|
| Schwab Government Money Fund, Ultra Shares | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.0<br> %\*<br>|
| Schwab International Equity ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.4<br> %<br>| 0.4<br> %<br>|
| Schwab Short-Term U.S. Treasury ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.3<br> %<br>| 0.5<br> %<br>| 0.2<br> %<br>|
| Schwab U.S. Aggregate Bond ETF | 0.3<br> %<br>| 0.4<br> %<br>| 1.3<br> %<br>| 2.7<br> %<br>| 6.1<br> %<br>| 4.2<br> %<br>|
| Schwab U.S. Large-Cap ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.3<br> %<br>| 1.0<br> %<br>| 1.0<br> %<br>|
| Schwab U.S. REIT ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.2<br> %<br>| 0.6<br> %<br>| 0.6<br> %<br>|
| Schwab U.S. Small-Cap ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.2<br> %<br>| 0.2<br> %<br>|
| Schwab U.S. TIPS ETF | 0.0<br> %\*<br>| 0.0<br> %\*<br>| 0.1<br> %<br>| 0.2<br> %<br>| 0.3<br> %<br>| 0.1<br> %<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Less than 0.05%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**70**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Financial Notes (continued)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**3. Affiliates and Affiliated Transactions (continued):** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| UNDERLYING FUNDS | SCHWAB<br> TARGET<br> 2040<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2045<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2050<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2055<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2060<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2065<br> INDEX<br> FUND<br>| &nbsp;&nbsp; SCHWAB<br> TARGET<br> 2070<br> INDEX<br> FUND<br>|
| Schwab Emerging Markets Equity ETF | 0.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.5<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.8<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.7<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.3<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab Government Money Fund, Ultra Shares | 0.0<br> %\*<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>|
| Schwab International Equity ETF | 0.5<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.5<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.2<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab Short-Term U.S. Treasury ETF | 0.1<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>|
| Schwab U.S. Aggregate Bond ETF | 3.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.7<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.1<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab U.S. Large-Cap ETF | 1.1<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.8<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.2<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.8<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 1.0<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.3<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab U.S. REIT ETF | 0.7<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.5<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.7<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.5<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.6<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.2<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab U.S. Small-Cap ETF | 0.3<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.3<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.3<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.4<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.1<br> %<br>| &nbsp;&nbsp;&nbsp;&nbsp; 0.0<br> %\*<br>|
| Schwab U.S. TIPS ETF | —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>| &nbsp;&nbsp; —<br> %<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Less than 0.05%

**Interfund Transactions**

The funds may engage in direct transactions with other funds in the Schwab Funds Complex in accordance with procedures adopted by the Board of Trustees pursuant to Rule 17a-7 under the 1940 Act. When one fund is seeking to sell a security that another fund is seeking to buy, an interfund transaction can allow both funds to benefit by reducing transaction costs while allowing each fund to execute the transaction at the current market price. This practice is limited to funds that share the same investment adviser. The net realized gains or losses on sales of interfund transactions, if any, are recorded in Net realized gains (losses) on sales of securities — affiliated issuers in the Statement of Operations. For the period ended March 31, 2026, each fund's purchases and sales of securities with other funds in the Schwab Funds Complex as well as any net realized gains (losses) were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | PURCHASE COST | SALE PROCEEDS | NET REALIZED GAINS (LOSSES) |
| Schwab Target 2010 Index Fund | $1496741 | &nbsp;&nbsp; $3887734 | &nbsp;&nbsp; $77646 |
| Schwab Target 2015 Index Fund | 2260841 | &nbsp;&nbsp; 5766423 | &nbsp;&nbsp; 79190 |
| Schwab Target 2020 Index Fund | 2445059 | &nbsp;&nbsp; 17668953 | &nbsp;&nbsp; 638251 |
| Schwab Target 2025 Index Fund | 4291545 | &nbsp;&nbsp; 29298502 | &nbsp;&nbsp; (99064)<br>|
| Schwab Target 2030 Index Fund | 16520181 | &nbsp;&nbsp; 31804880 | &nbsp;&nbsp; 209714 |
| Schwab Target 2035 Index Fund | 12074463 | &nbsp;&nbsp; 11757493 | &nbsp;&nbsp; (120380)<br>|
| Schwab Target 2040 Index Fund | 10588177 | &nbsp;&nbsp; 6929385 | &nbsp;&nbsp; 278573 |
| Schwab Target 2045 Index Fund | 7776174 | &nbsp;&nbsp; 7533937 | &nbsp;&nbsp; (76643)<br>|
| Schwab Target 2050 Index Fund | 16349018 | &nbsp;&nbsp; 8962955 | &nbsp;&nbsp; (17492)<br>|
| Schwab Target 2055 Index Fund | 16022761 | &nbsp;&nbsp; 6490563 | &nbsp;&nbsp; 13999 |
| Schwab Target 2060 Index Fund | 19533795 | &nbsp;&nbsp; 7856374 | &nbsp;&nbsp; (53559)<br>|
| Schwab Target 2065 Index Fund  | 12693545 | &nbsp;&nbsp; 3096017 | &nbsp;&nbsp; (85794)<br>|
| Schwab Target 2070 Index Fund | 157001 | &nbsp;&nbsp; 117431 | &nbsp;&nbsp; (7740)<br>|

---

**Interfund Borrowing and Lending**

Pursuant to an exemptive order issued by the SEC, the funds may enter into interfund borrowing and lending transactions with other funds in the Schwab Funds Complex. All loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the overnight repurchase agreement rate and the short-term bank loan rate. All loans are subject to numerous conditions designed to ensure fair and equitable treatment of all participating funds. The interfund lending facility is subject to the oversight and periodic review by the Board of Trustees. The funds had no interfund borrowing or lending activity during the period.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**71**

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Schwab Target Index Funds

Financial Notes (continued)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**4. Board of Trustees:**

The Board of Trustees may include people who are officers and/or directors of the investment adviser or its affiliates. Federal securities law limits the percentage of such "interested persons" who may serve on a trust's board, and the trust was in compliance with these limitations throughout the report period. The funds did not pay any interested persons or non-interested persons (independent trustees). The independent trustees are paid by the investment adviser pursuant to the Amended and Restated Advisory Agreement where the investment adviser pays the operational expenses of each fund which includes trustee fees.

------

**5. Borrowing from Banks:**

During the period, the funds were participants with other funds in the Schwab Funds Complex in a joint, syndicated, committed $1.2 billion line of credit (the Syndicated Credit Facility), which matured on September 25, 2025. On September 25, 2025, the Syndicated Credit Facility was amended to run for a new 28 day period with the line of credit amount remaining unchanged, maturing on October 23, 2025. On October 23, 2025, the Syndicated Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 22, 2026. Under the terms of the Syndicated Credit Facility, in addition to the investment adviser paying the interest charged on any borrowings by a fund, the investment adviser paid a commitment fee of 0.15% per annum on the funds' proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the funds were participants with other funds in the Schwab Funds Complex in a joint, unsecured, uncommitted $400 million line of credit (the Uncommitted Credit Facility) with State Street Bank and Trust Company, which matured on September 25, 2025. On September 25, 2025, the Uncommitted Credit Facility was amended to run for a new 28 day period with the line of credit amount remaining unchanged, maturing on October 23, 2025. On October 23, 2025, the Uncommitted Credit Facility was amended to run for a new 364 day period with the line of credit amount remaining unchanged, maturing on October 22, 2026. Under the terms of the Uncommitted Credit Facility, the investment adviser pays interest on the amount a fund borrows. There were no borrowings by any of the funds from either line of credit during the period.

The funds also have access to custodian overdraft facilities. A fund may have utilized the overdraft facility and incurred an interest expense, which is paid by the investment adviser, if any. The interest expense is determined based on a negotiated rate above the current Federal Funds Rate.

------

**6. Purchases and Sales of Investment Securities:**

For the period ended March 31, 2026, purchases and sales of securities (excluding short-term obligations) were as follows:

---

| | | |
|:---|:---|:---|
|  | PURCHASES <br>OF SECURITIES <br>| SALES <br>OF SECURITIES<br>|
| Schwab Target 2010 Index Fund | $16150456 | &nbsp;&nbsp; $11009726 |
| Schwab Target 2015 Index Fund | 18968013 | &nbsp;&nbsp; 15969780 |
| Schwab Target 2020 Index Fund | 42030786 | &nbsp;&nbsp; 47368034 |
| Schwab Target 2025 Index Fund | 117582396 | &nbsp;&nbsp; 98641341 |
| Schwab Target 2030 Index Fund | 456009839 | &nbsp;&nbsp; 184630465 |
| Schwab Target 2035 Index Fund | 420749752 | &nbsp;&nbsp; 135382356 |
| Schwab Target 2040 Index Fund | 337451591 | &nbsp;&nbsp; 144052837 |
| Schwab Target 2045 Index Fund | 263921400 | &nbsp;&nbsp; 92986630 |
| Schwab Target 2050 Index Fund | 343040232 | &nbsp;&nbsp; 123138964 |
| Schwab Target 2055 Index Fund | 261878675 | &nbsp;&nbsp; 85778250 |
| Schwab Target 2060 Index Fund | 304436027 | &nbsp;&nbsp; 95832326 |
| Schwab Target 2065 Index Fund  | 159697278 | &nbsp;&nbsp; 29825739 |
| Schwab Target 2070 Index Fund | 32217151 | &nbsp;&nbsp; 138833 |

---

**72**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Financial Notes (continued)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**7. Federal Income Taxes:**

As of March 31, 2026, the tax basis cost of the funds' investments and gross unrealized appreciation and depreciation were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | TAX COST | GROSS UNREALIZED <br>APPRECIATION<br>| GROSS UNREALIZED <br>DEPRECIATION<br>| NET UNREALIZED <br>APPRECIATION <br>(DEPRECIATION)<br>|
| Schwab Target 2010 Index Fund | $52588540 | &nbsp;&nbsp; $10013555 | &nbsp;&nbsp; ($3034400)<br>| &nbsp;&nbsp; $6979155 |
| Schwab Target 2015 Index Fund | 74899844 | &nbsp;&nbsp; 16812408 | &nbsp;&nbsp; (3618677)<br>| &nbsp;&nbsp; 13193731 |
| Schwab Target 2020 Index Fund | 241163093 | &nbsp;&nbsp; 59640895 | &nbsp;&nbsp; (16588930)<br>| &nbsp;&nbsp; 43051965 |
| Schwab Target 2025 Index Fund | 527234443 | &nbsp;&nbsp; 135984395 | &nbsp;&nbsp; (30131565)<br>| &nbsp;&nbsp; 105852830 |
| Schwab Target 2030 Index Fund | 1365476943 | &nbsp;&nbsp; 355811428 | &nbsp;&nbsp; (44244371)<br>| &nbsp;&nbsp; 311567057 |
| Schwab Target 2035 Index Fund | 1156550097 | &nbsp;&nbsp; 300202181 | &nbsp;&nbsp; (25944834)<br>| &nbsp;&nbsp; 274257347 |
| Schwab Target 2040 Index Fund | 1176557734 | &nbsp;&nbsp; 395716835 | &nbsp;&nbsp; (23599454)<br>| &nbsp;&nbsp; 372117381 |
| Schwab Target 2045 Index Fund | 793254572 | &nbsp;&nbsp; 269633555 | &nbsp;&nbsp; (13392759)<br>| &nbsp;&nbsp; 256240796 |
| Schwab Target 2050 Index Fund | 1072656802 | &nbsp;&nbsp; 364108510 | &nbsp;&nbsp; (15077269)<br>| &nbsp;&nbsp; 349031241 |
| Schwab Target 2055 Index Fund | 743960566 | &nbsp;&nbsp; 245017264 | &nbsp;&nbsp; (9623331)<br>| &nbsp;&nbsp; 235393933 |
| Schwab Target 2060 Index Fund | 863392531 | &nbsp;&nbsp; 287641853 | &nbsp;&nbsp; (11847246)<br>| &nbsp;&nbsp; 275794607 |
| Schwab Target 2065 Index Fund  | 325921923 | &nbsp;&nbsp; 57298176 | &nbsp;&nbsp; (2989436)<br>| &nbsp;&nbsp; 54308740 |
| Schwab Target 2070 Index Fund | 32078318 | &nbsp;&nbsp; — | &nbsp;&nbsp; (2078990)<br>| &nbsp;&nbsp; (2078990)<br>|

---

The primary difference between book basis and tax basis unrealized appreciation or unrealized depreciation of investments is the tax deferral of losses on wash sales. The tax cost of the funds' investments, disclosed above, have been adjusted from their book amounts to reflect these unrealized appreciation or depreciation differences, as applicable.

As of March 31, 2026, the components of distributable earnings on a tax basis were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | UNDISTRIBUTED <br>ORDINARY <br>INCOME <br>| UNDISTRIBUTED <br>LONG-TERM <br>CAPITAL GAINS <br>| NET UNREALIZED <br>APPRECIATION <br>(DEPRECIATION) <br>ON INVESTMENTS <br>| TOTAL  |
| Schwab Target 2010 Index Fund | $313828 | &nbsp;&nbsp; $41758 | &nbsp;&nbsp; $6979155 | &nbsp;&nbsp; $7334741 |
| Schwab Target 2015 Index Fund | 487439 | &nbsp;&nbsp; 113841 | &nbsp;&nbsp; 13193731 | &nbsp;&nbsp; 13795011 |
| Schwab Target 2020 Index Fund | 1353183 | &nbsp;&nbsp; 2172213 | &nbsp;&nbsp; 43051965 | &nbsp;&nbsp; 46577361 |
| Schwab Target 2025 Index Fund | 2896903 | &nbsp;&nbsp; 2702730 | &nbsp;&nbsp; 105852830 | &nbsp;&nbsp; 111452463 |
| Schwab Target 2030 Index Fund | 8428463 | &nbsp;&nbsp; 992833 | &nbsp;&nbsp; 311567057 | &nbsp;&nbsp; 320988353 |
| Schwab Target 2035 Index Fund | 5615303 | &nbsp;&nbsp; — | &nbsp;&nbsp; 274257347 | &nbsp;&nbsp; 279872650 |
| Schwab Target 2040 Index Fund | 5948453 | &nbsp;&nbsp; 271761 | &nbsp;&nbsp; 372117381 | &nbsp;&nbsp; 378337595 |
| Schwab Target 2045 Index Fund | 3451532 | &nbsp;&nbsp; — | &nbsp;&nbsp; 256240796 | &nbsp;&nbsp; 259692328 |
| Schwab Target 2050 Index Fund | 5224149 | &nbsp;&nbsp; — | &nbsp;&nbsp; 349031241 | &nbsp;&nbsp; 354255390 |
| Schwab Target 2055 Index Fund | 3425124 | &nbsp;&nbsp; — | &nbsp;&nbsp; 235393933 | &nbsp;&nbsp; 238819057 |
| Schwab Target 2060 Index Fund | 3499724 | &nbsp;&nbsp; — | &nbsp;&nbsp; 275794607 | &nbsp;&nbsp; 279294331 |
| Schwab Target 2065 Index Fund  | 854719 | &nbsp;&nbsp; 5793 | &nbsp;&nbsp; 54308740 | &nbsp;&nbsp; 55169252 |
| Schwab Target 2070 Index Fund | 56266 | &nbsp;&nbsp; — | &nbsp;&nbsp; (2078990)<br>| &nbsp;&nbsp; (2022724)<br>|

---

As of March 31, 2026, the funds had no capital loss carryforwards available to offset future realized capital gains for federal income tax purposes.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**73**

------

Schwab Target Index Funds

Financial Notes (continued)

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**7. Federal Income Taxes (continued):** 

For the fiscal year ended March 31, 2026, the funds had capital loss carryforwards utilized as follows:

---

| | |
|:---|:---|
| 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 | 2072054 |
| Schwab Target 2035 Index Fund | 1863293 |
| Schwab Target 2040 Index Fund | 4045076 |
| Schwab Target 2045 Index Fund | 1543026 |
| Schwab Target 2050 Index Fund | 1397407 |
| Schwab Target 2055 Index Fund | 637876 |
| Schwab Target 2060 Index Fund | 928916 |
| Schwab Target 2065 Index Fund  |  |
| Schwab Target 2070 Index Fund |  |

---

The tax basis components of distributions paid during the current and prior fiscal years were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | CURRENT FISCAL YEAR END DISTRIBUTIONS | CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
|  | ORDINARY <br>INCOME<br>| LONG-TERM <br>CAPITAL <br>GAINS<br>| ORDINARY <br>INCOME <br>| LONG-TERM <br>CAPITAL <br>GAINS <br>|
| Schwab Target 2010 Index Fund | $1942044 | &nbsp;&nbsp; $404592 | &nbsp;&nbsp; $1646616 | &nbsp;&nbsp; $203007 |
| Schwab Target 2015 Index Fund | 2907328 | &nbsp;&nbsp; 1033113 | &nbsp;&nbsp; 2704422 | &nbsp;&nbsp; 24173 |
| Schwab Target 2020 Index Fund | 8940059 | &nbsp;&nbsp; 6976625 | &nbsp;&nbsp; 9234622 | &nbsp;&nbsp; 3384290 |
| Schwab Target 2025 Index Fund | 19512002 | &nbsp;&nbsp; 13540413 | &nbsp;&nbsp; 17092491 | &nbsp;&nbsp; 2006984 |
| Schwab Target 2030 Index Fund | 40290101 | &nbsp;&nbsp; — | &nbsp;&nbsp; 31363490 | &nbsp;&nbsp; — |
| Schwab Target 2035 Index Fund | 30832110 | &nbsp;&nbsp; — | &nbsp;&nbsp; 22331715 | &nbsp;&nbsp; — |
| Schwab Target 2040 Index Fund | 32983455 | &nbsp;&nbsp; — | &nbsp;&nbsp; 25860446 | &nbsp;&nbsp; — |
| Schwab Target 2045 Index Fund | 20730749 | &nbsp;&nbsp; — | &nbsp;&nbsp; 15556428 | &nbsp;&nbsp; — |
| Schwab Target 2050 Index Fund | 27311448 | &nbsp;&nbsp; — | &nbsp;&nbsp; 19965341 | &nbsp;&nbsp; — |
| Schwab Target 2055 Index Fund | 18106227 | &nbsp;&nbsp; — | &nbsp;&nbsp; 12992471 | &nbsp;&nbsp; — |
| Schwab Target 2060 Index Fund | 20579188 | &nbsp;&nbsp; — | &nbsp;&nbsp; 14713664 | &nbsp;&nbsp; — |
| Schwab Target 2065 Index Fund  | 6100775 | &nbsp;&nbsp; 54029 | &nbsp;&nbsp; 3247296 | &nbsp;&nbsp; 1495 |

---

Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts in the financial statements. The funds may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

Permanent book and tax basis differences may result in reclassifications between components of net assets as required. The adjustments will have no impact on net assets or the results of operations.

As of March 31, 2026, management has reviewed the tax positions for open periods (for federal purposes, three years from the date of filing and for state purposes, four years from the date of filing) as applicable to the funds, and has determined that no provision for income tax is required in the funds' financial statements. During the fiscal year ended March 31, 2026, the funds did not incur any interest or penalties.

------

**8. Subsequent Events:**

Management has determined there are no subsequent events or transactions through the date the financial statements were issued that would have materially impacted the financial statements as presented.

**74**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Report of Independent Registered Public Accounting Firm

------

To the Board of Trustees of Schwab Capital Trust and Shareholders of 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, and Schwab Target 2070 Index Fund:

***Opinion on the Financial Statements and Financial Highlights***

We have audited the accompanying statements of assets and liabilities, including the portfolio holdings, of 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, and Schwab Target 2070 Index Fund (the "Funds"), thirteen of the Funds constituting Schwab Capital Trust, as of March 31, 2026; the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended for the Funds, except Schwab Target 2070 Index Fund; the related statement of operations, the statement of changes in net assets, and the financial highlights for the period from February 26, 2026 (commencement of operations) through March 31, 2026, for Schwab Target 2070 Index Fund; and the related notes (collectively referred to as the "financial statements and financial highlights").

In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds, except Schwab Target 2070 Index Fund, as of March 31, 2026, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Schwab Target 2070 Index Fund as of March 31, 2026, and the results of its operations, the changes in its net assets, and the financial highlights for the period from February 26, 2026 (commencement of operations) through March 31, 2026, in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2026, by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

**Deloitte & Touche LLP**

Denver, Colorado

May 15, 2026

We have served as the auditor of one or more investment companies in Schwab Funds Complex since 2020.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**75**

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Changes in and Disagreements with Accountants for Open-End Management Investment Companies

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Not applicable.

**76**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Proxy Disclosures for Open-End Management Investment Companies

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Not applicable.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**77**

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Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The remuneration paid to directors, officers and others are included under Item 7 (Financial Statements and Financial Highlights for Open-End Management Investment Companies).

**78**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

Investment Advisory Agreement Approval

------

***Initial Approval of Investment Advisory Agreement***

The Investment Company Act of 1940, as amended (the 1940 Act), requires that the approval of a fund's investment advisory agreement must be specifically approved (1) by the vote of the trustees or by a vote of the shareholders of the fund, and (2) by the vote of a majority of the trustees who are not parties to the investment advisory agreement or "interested persons" of any party thereto (the Independent Trustees), cast in person at a meeting called for the purpose of voting on such approval. In connection with such approvals, the fund's trustees must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the investment advisory agreement.

The Board of Trustees (the Board or the Trustees, as appropriate) called and held a meeting on December 9, 2025, in part, for the purpose of considering whether to appoint Charles Schwab Investment Management, Inc. (dba Schwab Asset Management) (the investment adviser), as investment adviser to the Schwab Target 2070 Index Fund (the Fund) under the investment advisory agreement between Schwab Capital Trust (the Trust) and the investment adviser (the Agreement). In preparation for the meeting, the Board requested and reviewed a wide variety of materials provided by the investment adviser and considered information that the Board receives from the investment adviser throughout the year, including information about the investment adviser's affiliates, personnel, business goals and priorities, profitability, oversight of third-party service providers, corporate structure and operations. The Board also received data provided by an independent provider of investment company data. In recognition of the fact that the Fund had not yet commenced operations, the Board also considered information provided by the investment adviser in connection with the Board's consideration of approval of the investment advisory agreement with respect to the other funds within the Trust. The Board also took into account the detailed information about other funds within the Trust that the Board reviews during the course of each year, including information that relates to those funds' operations and performance, legal and compliance matters, risk management, portfolio turnover, and sales and marketing activity. The Independent Trustees received advice from Independent Trustees' legal counsel, including with respect to the responsibilities of trustees for the approval of investment advisory agreements. In addition, the Independent Trustees participated in question and answer sessions with representatives of the investment adviser and met in executive session outside the presence of Fund management.

The Board, including a majority of the Independent Trustees, approved the Agreement with respect to the Fund. The

Board's approval was based on consideration and evaluation of a variety of specific factors discussed at this meeting, including:

1. the nature, extent and quality of the services to be provided to the Fund under the Agreement, including the resources of the investment adviser and its affiliates to be dedicated to the Fund;

2. the investment adviser's investment performance in managing other comparable mutual funds and how the Fund's glide path and asset allocations compare to those of other Schwab target date funds;

3. the Fund's estimated expenses and how those expenses compared to those of certain other similar mutual funds;

4. the expected profitability of the investment adviser and its affiliates, including Charles Schwab & Co., Inc. (Schwab), with respect to management of the Fund, including both direct and indirect benefits accruing to the investment adviser and its affiliates; and

5. the extent to which economies of scale would be realized as the Fund grows and whether fee levels in the Agreement reflect those economies of scale for the benefit of Fund investors.

**Nature, Extent and Quality of Services.** The Board considered the nature, extent and quality of the services to be provided by the investment adviser to the Fund and the resources that the investment adviser and its affiliates will dedicate to the Fund. In this regard, the Trustees evaluated, among other things, the investment adviser's experience, track record, compliance program, resources dedicated to hiring and retaining skilled personnel and specialized talent, and information security resources. The Trustees also considered information provided by the investment adviser relating to services and support to be provided with respect to the Fund's portfolio management team, portfolio strategy, and internal investment guidelines, as well as trading infrastructure, liquidity management, product design and analysis, shareholder communications, securities valuation, and vendor and risk oversight. The Trustees also considered the investment adviser's continued investment in its infrastructure, including the investment adviser's technology and use of data, business continuity, cybersecurity, due diligence, risk management processes, and information security programs. The Trustees also considered Schwab's overall financial condition and reputation as a full service brokerage firm as well as the wide range of products, services, and account features that benefit Fund shareholders who are brokerage clients of Schwab. Following such evaluation, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of services to be provided by the investment adviser to the Fund and the resources of the

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**79**

------

Schwab Target Index Funds

investment adviser and its affiliates dedicated to the Fund supported approval of the Agreement with respect to the Fund.

**Fund Performance.** Since the Fund had not commenced operations and therefore did not have any performance of its own, the Board considered performance of other funds advised by the investment adviser having comparable investment objectives in determining whether to approve the Agreement. The Trustees also considered the asset allocation expectations for the Fund over time. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expected performance of the Fund supported approval of the Agreement with respect to the Fund.

**Fund Expenses.** With respect to the Fund's expenses, the Trustees considered the proposed rate of compensation called for by the Agreement and the Fund's estimated net operating expense ratio, in each case, in comparison to those of other similar mutual funds, such peer groups and comparisons having been selected and calculated by an independent provider of investment company data. The investment adviser reported to the Board, and the Board took into account, the risk assumed by the investment adviser in the development of the Fund and the services to be provided as well as the competitive marketplace for financial products. The Trustees considered the effects of the investment adviser's and Schwab's proposal to waive certain fees to prevent total annual operating expenses of the Fund from exceeding a specified cap. The Trustees also considered the investment adviser's proposed contractual commitment to limit the total annual operating expenses of the Fund for so long as the investment adviser serves as the adviser to the Fund. The Trustees also considered fees charged by the investment adviser to other mutual funds and to other types of accounts, but, with respect to such other types of accounts, accorded less weight to such comparisons due to the different legal, regulatory, compliance and operating features of mutual funds as compared to these other types of accounts, and any differences in the nature and scope of the services the investment adviser provides to these other accounts, and any differences in the market for these types of accounts. The Trustees noted that the pro rata share of the fees and expenses of the underlying funds in which the Fund would invest would be covered by the expense limitation agreement. Following such evaluation, the Board concluded, within the context of its full deliberations, that the expenses of the Fund are reasonable and supported approval of the Agreement with respect to the Fund.

**Profitability.** With regard to profitability, the Trustees considered the expected compensation to be flowing to the investment adviser and its affiliates, directly or indirectly. In this connection, the Trustees reviewed management's profitability analysis of the investment adviser relating to the Fund, noting the benefits to Fund shareholders of being part of the Schwab fund complex, including the allocations of certain

costs across the Fund and other funds in the complex. The Trustees also considered any other potential benefits to be derived by the investment adviser from its relationship with the Fund, such as whether, by virtue of its management of the Fund, the investment adviser obtains investment information or other research resources that aid it in providing advisory services to other clients. Also, because the Fund is expected to invest a portion of its assets in other funds within the Schwab fund complex, the Trustees considered the potential indirect benefits to the investment adviser from such Fund's investments in other underlying funds managed by the investment adviser. The Trustees considered whether the expected compensation and profitability with respect to the Fund under the Agreement and other service agreements were reasonable in light of the quality of all services to be rendered to the Fund by the investment adviser and its affiliates. The Trustees noted that the investment adviser continues to invest substantial sums in its business in order to provide enhanced research capabilities, services, and systems that would benefit the Fund. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the expected profitability of the investment adviser, albeit uncertain, is reasonable and supported approval of the Agreement with respect to the Fund.

**Economies of Scale.** Recognizing that the Fund had not yet commenced operations and had no assets, and although the Fund does not have breakpoints in its advisory fees, the Trustees considered the potential existence of any economies of scale and whether those could be expected to be passed along to the Fund's shareholders through (i) the enhancement of services provided to the Fund in return for fees paid, including through the investment adviser's continued investment in its infrastructure and use of data and technology, increasing expertise and capabilities in key areas (including portfolio and trade operations), and improving business continuity, cybersecurity, due diligence and information security programs, which are designed to provide enhanced services to the Fund and its shareholders; and (ii) pricing the Fund to scale and keeping overall expenses down as the Fund grows. The Trustees considered that the investment adviser and its affiliates employ contractual expense caps to protect shareholders from high fees, including for example, when fund assets are relatively small. Based on this evaluation, the Board concluded, within the context of its full deliberations, that the Fund may be expected to obtain reasonable benefits from economies of scale if such economies develop.

\* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \* \*

In the course of their deliberations, the Trustees may have accorded different weights to various factors and did not identify any particular information or factor that was all important or controlling. Based on the Trustees' deliberation and their evaluation of the information described above, the Board, including all of the Independent Trustees, approved the Agreement with respect to the Fund and concluded that the compensation under the Agreement with respect to the Fund

**80**Schwab Target Index Funds \| Annual Holdings and Financial Statements

------

Schwab Target Index Funds

is fair and reasonable in light of the services to be provided and the related expenses to be borne by the investment adviser and its affiliates and such other matters as the Trustees considered to be relevant in the exercise of their reasonable judgment.

Schwab Target Index Funds \| Annual Holdings and Financial Statements

**81**

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![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](g334430imgd9badabc1.jpg)

MFR96669-09

00324201

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#### Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
The changes in and disagreements with accountants for open-end management investment companies are included under Item 7 of this Form.

#### Item 9: Proxy Disclosures for Open-End Management Investment Companies.
The proxy disclosures for open-end management investment companies are included under Item 7 of this Form.

#### Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
The remuneration paid to directors, officers and others are included under Item 7 of this Form.

#### Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract.
The statement regarding basis for approval of investment advisory contract is included under Item 7 of this Form.

------

#### Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.

#### Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.

#### Item 14: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.

#### Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.

#### Item 16: Controls and Procedures.
(a) Based on their evaluation of Registrant's disclosure controls and procedures, as of a date within 90 days of the filing date, Registrant's Principal Executive Officer, Omar Aguilar and Registrant's Principal Financial Officer, Dana Smith, have concluded that Registrant's disclosure controls and procedures are: (i) reasonably designed to ensure that information required to be disclosed in this report is appropriately communicated to Registrant's officers to allow timely decisions regarding disclosures required in this report; (ii) reasonably designed to ensure that information required to be disclosed in this report is recorded, processed, summarized and reported in a timely manner; and (iii) are effective in achieving the goals described in (i) and (ii) above.

(b) During the period covered by this report, there have been no changes in Registrant's internal control over financial reporting that the above officers believe to have materially affected, or to be reasonably likely to materially affect, Registrant's internal control over financial reporting.

#### Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.

#### Item 18: Recovery of Erroneously Awarded Compensation.
(a) Not applicable.

(b) Not applicable.

#### Item 19: Exhibits.
(a) (1) [Registrant's code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached.](d145586dex99codeeth.htm)

(2) Not applicable.

(3) [Separate certifications for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (the "1940 Act"), are attached.](d145586dex99cert.htm)

(b) [A certification for Registrant's principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.](d145586dex99906cert.htm)

------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) <u>Schwab Capital Trust – Schwab Target Index Funds</u>

---

| | |
|:---|:---|
| By: | /s/ Omar Aguilar |
|  | Omar Aguilar<br> Principal Executive Officer (Chief Executive Officer) |
| Date: | May 15, 2026 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | /s/ Omar Aguilar |
|  | Omar Aguilar<br> Principal Executive Officer (Chief Executive Officer) |
| Date: | May 15, 2026 |

---

---

| | |
|:---|:---|
| By: | /s/ Dana Smith |
|  | Dana Smith<br> Principal Financial Officer (Chief Financial Officer) |
| Date: | May 15, 2026 |

---

## Ex-99.Code

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

**Schwab Funds:** 

**The Charles Schwab Family of Funds** 

**Laudus Trust** 

**Schwab Investments** 

**Schwab Capital Trust** 

**Schwab Annuity Portfolios** 

**Schwab ETFs:** 

**Schwab Strategic Trust** 

**(the "Funds" or the "Trusts")** 

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

**Category: Code of Ethics and Personal Obligations** 

---

| | |
|:---|:---|
| **Policy Type** | **Fund / Board** |
|  **Regulatory Authority, Rule(s) and Regulation(s)** | &nbsp;&nbsp;&nbsp;&nbsp; • This Code constitutes the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, CSIM, CSIM's affiliates, The Charles Schwab Corporation or other Fund service providers govern or purport to govern the behavior or activities of an Officer who is subject to this Code, they are superseded by this Code to the extent that they conflict with the provisions of this Code. CSIM's, the Funds' and Charles Schwab & Co. Inc.'s (as distributor) joint code of ethics under Rule 17j-1 pursuant to the 1940 Act and Rule 204A-1 of the Advisers Act, and CSIM's, CSIM's affiliates', and The Charles Schwab Corporation's policies and procedures set forth in their respective compliance manuals and elsewhere are separate requirements applying to the Officers and are not part of this Code.<br>|
|  **Associated Policies and**<br> **Standards** | &nbsp;&nbsp;&nbsp;&nbsp; <u>CSIM/Fund Policy and Procedures</u><br>• N/A<br><u>Charles Schwab Corporation (CSC) Policies and Standards</u><br>• N/A<br>|
|  **Approval Date** | December 9, 2025 |

---

Note: CSIM and Fund Policies and Procedures may have additional or more restrictive requirements than those contained in CSC Policies and Standards.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

------

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

**A. Overview: Policy Purpose and Objectives** 

**I. SCOPE** 

This Code of Business Conduct and Ethics (the "Code") for the Schwab Funds and Schwab ETFs (the "Funds") covers the Principal Executive Officer and Principal Financial Officer and any other officers who serve a similar function (each an "Officer") of all of the investment companies within the Funds' complex and applies to their service to the Funds.

**II. INTRODUCTION** 

The Funds are committed to the highest standards of ethical conduct. The Code consists of an outline of policies regarding conduct pertaining to legal compliance, personal conflicts of interest, confidentiality and privacy, and certain business practices. You are responsible for reviewing the Code and for acting in compliance with the Code in your daily activities.

The Code is not exhaustive; it provides guidance for carrying out your responsibilities on behalf of the Funds and observing the highest standards of ethical conduct. Because the Code does not address every possible situation that may arise, you are responsible for exercising good judgment, applying ethical principles, and raising questions when in doubt. Your integrity and good judgment reflect on the Funds' brand and reputation, and are the foundation of trust for our shareholder and business relationships.

If you are unsure of what to do in any situation or how to interpret the provisions of the Code, seek guidance before you act. Use the Funds' resources, including the Chief Legal Officer or the Chief Compliance Officer. If you feel that it is not appropriate to discuss a matter with the Chief Legal Officer or the Chief Compliance Officer, you may contact the Ombudsperson for The Charles Schwab Corporation.

**CONTACT INFORMATION** 

---

| | | |
|:---|:---|:---|
| **Title** | **Name** | **Phone Number** |
|  Chief Compliance Officer | Mark Hunter | 512-682-7627 |
|  Chief Legal Officer of Schwab<br> Funds and Schwab ETFs | Catherine MacGregor | 415-667-0650 |
|  The Charles Schwab<br> Corporation Ombudsperson | Amy Pimentel, Esq,<br> McDermott Will & Schulte LLP | 617-535-3948 |

---

**B. Procedures and Responsibilities** 

**I. POLICIES** 

In executing your responsibilities on behalf of the Funds, your conduct should reflect positively on the Funds. A strong personal sense of ethics should always play a significant role in guiding you towards a proper course of action. The appearance of impropriety can be as harmful to the Funds' reputation as improper conduct.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

------

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

The Funds' business is subject to various laws, rules and regulations, including federal securities and state and local laws. Although you are not expected to know the details of the myriad of laws governing our business, you are expected to be familiar with and comply with policies and procedures that apply to your business unit and complete any required training that applies to you (e.g., training regarding privacy or anti-money laundering).

A. PERSONAL CONFLICTS OF INTEREST

It is important that you do not place yourself in a position that would cloud your judgment in carrying out the business affairs of the Funds. A "personal conflict of interest" occurs when your private interest interferes in any way — or even appears to interfere — with the interests of the Funds. You have a duty to report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected to be or to create a conflict of interest with the Funds.

Officers, in addition to their obligation to the Funds, may also be an officer or employee of CSIM or a CSIM affiliate. As a result, this Code recognizes that the Officers will, in the normal course of their duties (whether formally for the Funds, for CSIM, for CSIM's affiliate or for more than one entity), be involved in establishing policies and implementing decisions that will have different effects on CSIM, CSIM's affiliates and the Funds. The participation of the Officers in such activities is inherent in the contractual relationship between the Funds and CSIM and is consistent with the performance by the Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), and the Investment Advisers Act of 1940, as amended (the "Advisers Act"), such activities will be deemed under the Code to have been handled ethically. In addition, it is recognized by the Trustees that the Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

B. INSIDE INFORMATION

Do not trade on inside information or disclose inside information to anyone except those who have a need to know it in order to fulfill their responsibilities for the Funds and in accordance with the Funds' policy. This applies to information regarding the Funds, The Charles Schwab Corporation and its subsidiaries, and any other publicly traded company.

Generally, material information is any information that an investor would likely consider important in deciding whether to buy, sell or hold securities or that could affect the market price of the securities. Examples include actual or estimated financial results or change in dividends; significant discoveries or product developments; possible mergers, acquisitions or divestitures; major changes in business strategies; obtaining or losing significant contracts; and threatened major litigation or related developments. If you have or receive information and are unsure whether it is within the definition of inside information or whether its release might be contrary to a fiduciary or other obligation, contact the Chief Compliance Officer prior to disclosing any such information.

You must not use the Funds' non-public holdings or transactions information in any way to influence your trades or the trades of other shareholders, including those of other employees, officers and directors. Trading ahead of shareholder or the Funds' transactions (frontrunning) and following shareholder or the Funds' transactions (piggybacking or shadowing) is prohibited.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

------

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

C. ACCEPTANCE OF GIFTS OR ENTERTAINMENT

You must not accept gifts or entertainment from shareholders, vendors, suppliers, competitors or other employees where they present a conflict of interest or create the appearance of impropriety. You must adhere to the CSIM and The Charles Schwab Corporation policies regarding gifts and entertainment, and apply the more stringent restrictions. In addition, if you are an employee of another CSIM affiliate you must also adhere to that affiliate's policies regarding gifts and entertainment, and apply the more stringent restrictions.

D. CONFIDENTIALITY OF INFORMATION AND PRIVACY

Information concerning the identity of the Funds' underlying shareholders and their transactions and accounts is confidential. Such information may not be disclosed to persons working on behalf of the Funds except as they may need to know it in order to fulfill their responsibilities to the Funds. You may not disclose such information to anyone or any firm outside the Funds unless (i) the outside firm needs to know the information in order to perform services for the Funds and is bound to maintain its confidentiality; (ii) when the shareholder has consented or been given an opportunity to request that the information not be shared; (iii) as required by law; or (iv) as authorized by the Chief Legal Officer or Chief Compliance Officer.

The Funds are committed to safeguarding their customers' privacy. We do not sell any personally identifiable customer information. Sharing of such information with third parties is limited to situations related to the processing and servicing of customer accounts, and to specifically delineated exceptions in the federal privacy law. We share information with our affiliates to the extent permitted by federal law. You must be familiar with the procedural and systemic safeguards we maintain to protect this information.

You have the responsibility to safeguard the Funds' proprietary information. Proprietary information includes intellectual property (copyrights, trademarks or patents or trade secrets), particular know-how (business or organizational designs, or business, marketing or service plans or ideas) and sensitive information about the Funds (databases, records, salary information or unpublished financial reports).

E. PROTECTION AND USE OF FUNDS' ASSETS

You are obligated to protect the Funds' assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Funds. The Funds' equipment should not be used for non-Funds' business, though incidental personal use may be permitted.

F. FINANCIAL DISCLOSURES

The Funds are committed to providing full, fair, accurate, timely and understandable disclosure in reports and documents that the Funds file with, or submit to, the Securities and Exchange Commission and other regulatory agencies and in other public communications made by the Funds. You are required to comply with the Funds' policies and procedures to provide such full, fair, accurate, timely and understandable disclosure.

G. CONDUCT OF AUDITS

Neither you nor any other person acting under your direction shall directly or indirectly take any action to fraudulently influence, coerce, manipulate, or mislead any independent public or certified public accountant engaged in the performance of an audit or review of the Funds' financial statements.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

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**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

Types of conduct that constitute improper influence include, but are not limited to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Offering or paying bribes or other financial incentives, including offering future employment or contracts for non-audit services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Providing an auditor with inaccurate or misleading legal analysis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Threatening to cancel or canceling existing non-audit or audit
engagements if the auditor objects to the issuer's accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Seeking to have a partner removed from the audit engagement because the partner objects to the Funds'
accounting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Blackmailing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making physical threats

H. SALES PRACTICES

If you transact business for shareholders, you are required to know and observe the Funds' specific policies and procedures for shareholder sales and transactions, such as the content and use of sales materials, documentation for transactions, quotations and suitability. Likewise, if you transact business with third parties (such as vendors or suppliers), you will be required to know and observe the Funds' policies and procedures for such transactions, such as marketing policies, procedures for performing due diligence on third parties, and obtaining proper authorizations for any agreements. You must be familiar with any enumerated policies and procedures governing your sales activities and use good judgment in complying with them.

I. COMPETITION AND FAIR DEALING

We operate our business fairly and honestly. We seek competitive advantage through performance and never through unethical or illegal business practices. It is our policy to comply with anti-trust laws. These laws are complex and not easily summarized, but at a minimum require that there be no agreement or understanding between the Funds and their competitors that affect prices, terms or conditions of sale or that unreasonably restrain full and fair competition. You must always respect the rights of and deal fairly with the Funds' shareholders and competitors. You must never take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice.

J. PROHIBITION OF BRIBERY AND KICKBACKS

Our policies prohibit bribery or kickbacks of any kind and to anyone in the conduct of our business. The U.S. government has a number of laws and regulations applicable specifically to business gratuities that may be offered to or accepted by U.S. and foreign government personnel. The promise, offer or delivery to an official or employee of the U.S. government or an official, employee or candidate of a foreign government of a gift, favor, payment or other gratuity in violation of these rules would not only violate the Funds' policy but could also be a criminal offense. Similarly, federal law, as well as the laws of many states, prohibits engaging in "commercial bribery." Commercial bribery involves soliciting, demanding or agreeing to accept anything of value from any person intending to influence or be rewarded in connection with any business or transaction, and prohibits all such behavior, for example, with respect to vendors, competitors, shareholders, and government employees.

K. WAIVERS

Waivers of the Code may be made only by the Trustees and will be promptly disclosed publicly as required by law.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

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**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

L. CODE AMENDMENTS

This Code may not be amended except in written form, which is specifically approved or ratified by a majority of the Trustees including a majority of the independent Trustees. Any amendments will, to the extent required, be disclosed in accordance with law.

M. CONFIDENTIALITY

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Trustees, CSIM, The Charles Schwab Corporation and their respective counsel. However, nothing contained in this Code or in any applicable employment or severance agreement(s) should be interpreted as prohibiting employees or former employees from voluntarily communicating with the Securities and Exchange Commission or other authorities regarding possible violations of law or from recovering a whistleblower award.

**II. ESCALATION AND PROHIBITION AGAINST RETALIATION** 

If you know of, or reasonably believe there is, a violation of this Code, you must report that information immediately to the Funds' Chief Compliance Officer. Depending on the possible violation, you may also be required to report it pursuant to The Charles Schwab Corporation Code of Business Conduct and CSIM and/or CSIM's affiliate's compliance policies and procedures. You should not conduct preliminary investigations unless authorized to do so by the Compliance Department.

No Officer will be retaliated against for making a good faith complaint or for bringing inappropriate conduct to the attention of the Funds' personnel, Ombudsperson of The Charles Schwab Corporation or Trustees, for assisting another employee or applicant in making a good faith report, for cooperating in an investigation, or for filing an administrative claim with a state or federal governmental agency. Any Officer who in good faith raises an issue regarding a possible violation of law, regulation or company policy or any suspected illegal or unethical behavior will be protected from retaliation.

If you have violated the Code, however, making a report will not protect you from the consequences of your actions. You can be subject to discipline up to and including termination of employment if you violate the Code or fail to report violations that come to your attention.

Any employee who engages in retaliatory conduct in violation of our policies will be subject to disciplinary action, up to and including termination of employment. If you reasonably believe retaliatory conduct has occurred, you must report such conduct to the Funds' Chief Compliance Officer.

**III. PROCEDURES** 

A. OFFICERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Read and be familiar with conduct rules outlined in the Code, and periodically review them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Affirm in writing to the Trustees that you have received, read and understand the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually affirm to the Trustees that you have complied with the requirements of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comply with the conduct standards outlined in this Code in all dealings and actions, including those with
shareholders, the public, and vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report any material transaction or relationship to the Chief Compliance Officer that reasonably could be expected
to be or to create a personal conflict of interest with the Funds.

The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

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**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report in a timely manner to the Chief Compliance Officer any conduct that may constitute a violation of the
Code, the Funds' policies, or laws, rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raise questions or concerns about conduct issues with your supervisor, the Chief Legal Officer or Chief
Compliance Officer, and seek advice when in doubt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cooperate with management during fact-finding investigations and comply with any confidentiality rules imposed.

B. CHIEF COMPLIANCE OFFICER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Chief Compliance Officer, upon becoming notified of potential violation of this Code, will conduct,
facilitate or delegate a review of the matter and will report to the Chairperson of the affected Fund's Audit, Compliance and Valuation Committee any violations of this Code that he or she believes to be material.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Chief Compliance Officer, upon becoming notified of a personal conflict of interest between an Officer and
the Funds that the Chief Compliance Officer deems to be material, will report the issue to the Chairperson of the affected Fund's Audit, Compliance and Valuation Committee and will work with the Chief Legal Officer and other appropriate
parties to ensure that any required disclosures are made.

C. TRUSTEES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Trustees will consider appropriate action to address any violations of the Code that they deem to be
material, which may include review of and appropriate modification to applicable policies and procedures, notification to appropriate personnel of CSIM or its board of directors, notification to appropriate personnel of The Charles Schwab
Corporation or its board of directors, or a recommendation to dismiss the Officer.

**C. Recordkeeping Requirements** 

You must be familiar with the Funds' record retention policies and always retain or destroy records according to them. In the event of litigation, governmental investigation or the threat of such action, you should consult the Chief Legal Officer or the Chief Compliance Officer regarding record retention.

The Funds' books, records and accounts must conform both to applicable legal requirements and to the Funds' internal controls and policies.

Unrecorded or "off-the-books" funds or assets are prohibited unless permitted by applicable law or regulation. Business records must not contain exaggeration, derogatory remarks, guesswork, or inappropriate characterizations of people and companies. This applies equally to email, internal memoranda, formal reports, and all other forms of business records.

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| | |
|:---|:---|
| **Version History** | Adopted Schwab Funds: June 15, 2011; Schwab ETFs: August 4, 2011. Revised August 8, 2013; December 11, 2015; August 25, 2016; December 11, 2017; September 25, 2018 (no changes); December 12, 2019; November 3, 2020; October 7, 2021; December 13, 2022; December 11, 2023; December 19, 2024; December 9, 2025 |

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The information contained herein is the property of The Charles Schwab Corporation (CSC) and is not for distribution outside of CSC without prior permission of the Chief Compliance Officer of the Funds or CSIM, as applicable, or their designee.

## Ex-99.Cert

**<u>CERTIFICATIONS</u>**

I, Omar Aguilar, certify that:

1. I have reviewed this report on Form N-CSR for the following series of Schwab Capital Trust – Schwab Target Index Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
|  Date: | May 15, 2026 | /s/ Omar Aguilar |
|  |  | Omar Aguilar<br> Principal Executive Officer (Chief Executive Officer) |

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**<u>CERTIFICATIONS</u>**

I, Dana Smith, certify that:

1. I have reviewed this report on Form N-CSR for the following series of Schwab Capital Trust – Schwab Target Index Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
|  Date: | May 15, 2026 | /s/ Dana Smith |
|  |  | Dana Smith<br> Principal Financial Officer (Chief Financial Officer) |

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## Exhibit 99.906

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES**-**OXLEY ACT OF 2002

In connection with the Annual Report for the following series of Schwab Capital Trust – Schwab Target Index Funds (the "Funds") on Form N-CSR for the period ended March 31, 2026 ("periodic report"), each of the undersigned, being the Principal Executive Officer and Principal Financial Officer, respectively, hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes**-**Oxley Act of 2002, that to the best of my knowledge:

(1) The periodic report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the Funds for the period presented therein.

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| | | |
|:---|:---|:---|
|  /s/ Omar Aguilar | Date: | May 15, 2026 |
|  Omar Aguilar |  |  |
|  Principal Executive Officer (Chief Executive Officer) |  |  |

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| | | |
|:---|:---|:---|
|  /s/ Dana Smith | Date: | May 15, 2026 |
|  Dana Smith |  |  |
|  Principal Financial Officer (Chief Financial Officer) |  |  |

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This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. section 1350 and is not being filed as part of the Form N-CSR with the Commission.