# EDGAR Filing Document

**Accession Number:** 0001454889
**File Stem:** 0001193125-26-251335
**Filing Date:** 2026-6
**Character Count:** 186153
**Document Hash:** e09bd077d9cce42f2c85f07db7cb146c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-251335.hdr.sgml**: 20260601

**ACCESSION NUMBER**: 0001193125-26-251335

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 27

**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 STRATEGIC TRUST
- **CENTRAL INDEX KEY:** 0001454889

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231
- **LEGAL ENTITY IDENTIFIER:** 549300NAZEQOIX80E226

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-22311
- **FILM NUMBER:** 261050306

**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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Schwab Strategic Trust
- **DATE OF NAME CHANGE:** 20090127

## Series and Classes Contracts Data

### Schwab Ariel Opportunities ETF (Series ID: S000072244)

| Class ID   | Class Name                     | Ticker Symbol   |
|:---|:---|:---|
| C000228159 | Schwab Ariel Opportunities ETF | SAEF            |

### Schwab Crypto Thematic ETF (Series ID: S000076371)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000236174 | Schwab Crypto Thematic ETF | STCE            |

?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: 811-22311

------

Schwab Strategic Trust – Schwab Ariel Opportunities

ETF and Schwab Crypto Thematic ETF

(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 Strategic Trust – Schwab Ariel Opportunities ETF and Schwab Crypto Thematic ETF

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.

------

![](g151036g2img100da1b01.jpg)

Annual Report \| March 31, 2026

Schwab Ariel Opportunities ETF

(formerly Schwab Ariel ESG ETF)

Ticker Symbol: SAEF

Principal U.S. Listing Exchange: NYSE Arca, Inc.

------

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.

This report describes changes to the fund that occurred during the reporting period.

---

| |
|:---|
| THIS FUND IS DIFFERENT FROM TRADITIONAL ETFs |
| &nbsp;&nbsp;Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For <br>example:<br>|
| &nbsp;&nbsp;• You may have to pay more money to trade the fund's shares. This fund will provide less information to traders, who tend to charge more for <br>trades when they have less information.<br>|
| &nbsp;&nbsp;• The price you pay to buy fund shares on an exchange may not match the value of the fund's portfolio. The same is true when you sell <br>shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders.<br>|
| • These additional risks may be even greater in bad or uncertain market conditions.<br>|
| &nbsp;&nbsp;• The ETF will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio <br>includes some of the ETF's holdings, it is not the ETF's actual portfolio.<br>|
| &nbsp;&nbsp;The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund secret, this fund <br>may face less risk that other traders can predict or copy its investment strategy. This may improve the fund's performance. If other traders are <br>able to copy or predict the fund's investment strategy, however, this may hurt the fund's performance.<br>|
| &nbsp;&nbsp;For additional information regarding the unique attributes and risks of the fund, see <br>Proxy Portfolio Risk<br>, <br>Premium/Discount Risk<br>, <br>Trading Halt <br>Risk<br>, <br>Authorized Participant Concentration Risk<br>, <br>Tracking Error Risk<br> and <br>Shares of the Fund May Trade at Prices Other Than NAV<br> in the <br>Principal Risks<br> and <br>Proxy Portfolio<br> and <br>Proxy Overlap<br> sections of the prospectus and/or the Statement of Additional Information.<br>|

---

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

Active semi-transparent ETFs (also referred to as non-transparent) operate differently from other exchange-traded funds (ETFs). Unlike other ETFs, an active semi-transparent

ETF does not publicly disclose its entire portfolio composition each business day, which may affect the price at which shares of the ETF trade in the secondary market. Active

semi-transparent ETFs have limited public trading history. There can be no assurance that an active trading market will develop, be maintained or operate as intended. There

is a risk that the market price of an active semi-transparent ETF may vary significantly from the ETF's net asset value and that its shares may trade at a wider bid/ask spread

and, therefore, cost investors more to trade than shares of other ETFs. These risks are heightened during periods of market disruption or volatility.

Proxy Portfolio Risk:

Unlike traditional ETFs, this fund does not disclose its portfolio holdings (Actual Portfolio) daily. The fund instead posts a Proxy Portfolio on its website

each day. The Proxy Portfolio is designed to reflect the economic exposures and risk characteristics of the fund's actual holdings on each trading day, but it is not the same as

the fund's Actual Portfolio. Although the Proxy Portfolio is intended to provide investors with enough information to allow for an effective arbitrage mechanism that will keep

the market price of the Fund at or close to the underlying NAV per Share of the Fund, there is a risk (which may increase during periods of market disruption or volatility) that

market prices will vary significantly from the underlying NAV of the fund. ETF trading on the basis of a published Proxy Portfolio may trade at a wider bid/ask spread than ETFs

that publish their portfolios on a daily basis, especially during periods of market disruption or volatility, and therefore may cost investors more to trade. Also, while the Fund

seeks to benefit from keeping its portfolio information secret, market participants may attempt to use the Proxy Portfolio to identify a Fund's trading strategy, which if

successful, could result in such market participants engaging in certain predatory trading practices that may have the potential to harm the Fund and its shareholders.

Proxy Portfolio Construction:

The Proxy Portfolio is designed to recreate the daily performance of the Actual Portfolio. This is achieved by performing a "Factor Model" analysis

of the Actual Portfolio. The Factor Model is comprised of three sets of factors or analytical metrics: market-based factors, fundamental factors, and industry/sector factors.

The fund uses a "Model Universe" to generate its Proxy Portfolio. The Model Universe is comprised of securities that the fund can purchase and will be a financial index or

stated portfolio of securities from which fund investments will be selected. The results of the Factor Model analysis are then applied to the Model Universe. The Proxy

Portfolio is then generated as a result of this Model Universe analysis with the Proxy Portfolio being a small sub-set of the Model Universe. The Factor Model is applied to both

the Actual Portfolio and the Model Universe to construct the fund's Proxy Portfolio that performs in a manner substantially identical to the performance of its Actual Portfolio.

The Proxy Portfolio will only include investments the fund is permitted to hold. The fund's SAI contains more information on the Proxy Portfolio and its construction.

Proxy Portfolio and Proxy Overlap Information regarding the contents of the Proxy Portfolio, and the percentage weight overlap between the holdings of the Proxy Portfolio and

the fund's Actual Portfolio holdings that formed the basis for its calculation of NAV at the end of the prior Business Day (the Portfolio Overlap), is available by visiting the

fund's website

www.schwabassetmanagement.com

.

Schwab Ariel Opportunities ETF \| Annual Report

REG127390-01 00324186

------

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 Ariel Opportunities ETF | $63 | &nbsp;&nbsp;0.59% |

---

&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's NAV return was 12.89% (for an explanation of NAV returns,

please refer to footnote 2 on the following page). The S&P 500<sup>®</sup>

Index, which serves as the fund's regulatory index and provides a

broad measure of market performance, returned 17.80%. The Russell 2500™ Index which returned 23.45%, is the fund's additional

index, and is more representative of the fund's investment universe than the regulatory index.

Top detractors from total return:

■

Financials sector securities, including Fiserv, Inc.

■

Consumer staples sector securities

Top contributors to total return:

■

Industrials sector securities, including nVent Electric PLC

■

Communication services sector securities

From an individual security perspective:

■

Fiserv, Inc. was the largest detractor from total return

■

Lindblad Expeditions Holdings, Inc. was the largest contributor to total return

&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.

2Schwab Ariel Opportunities ETF \| Annual Report

------

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns

and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted.

To obtain performance information

current to the most recent month end, please visit

www.schwabassetmanagement.com/prospectus

.

Performance of Hypothetical $10,000 Investment (November 16, 2021 - March 31, 2026)

1,2

![](g151036g2lg_2mgc.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 | Since Inception\* |
| Fund: Schwab Ariel Opportunities ETF (11/16/2021)<br>1,2<br>| 12.89% | &nbsp;&nbsp;&nbsp;&nbsp;2.72% |
| <br>S&P 500<br>®<br> Index<br>3<br>| 17.80% | &nbsp;&nbsp;&nbsp;&nbsp;9.49% |
| Russell 2500<br>TM<br> Index<br>| 23.45% | &nbsp;&nbsp;&nbsp;&nbsp;3.71% |

---

&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.

Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.

\*

Inception (11/16/2021) represents the date that the shares began trading in the secondary market.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

Performance is shown on a NAV basis. The fund's per share NAV is the value of one share of the fund. NAV is calculated by taking the fund's total assets (including the fair

value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund. Returns assume that

dividends and capital gain distributions have been reinvested in the fund at NAV.

The S&P 500®

Index serves as the fund's regulatory index and provides a broad measure of market performance. The Russell 2500™ Index is the fund's additional index and

is more representative of the fund's investment universe than the regulatory index.

Schwab Ariel Opportunities ETF \| Annual Report

------

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

Statistics

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

---

| | |
|:---|:---|
| Net Assets (millions) | $23 |
| Number of Holdings | 59 |
| Portfolio Turnover Rate<br>(excludes in-kind transactions)<br>| 14% |
| Advisory Fees Paid by the Fund | $142550 |
| Weighted Average Market Cap (millions) | $15119 |
| Price/Earnings Ratio (P/E) | 20.4 |
| Price/Book Ratio (P/B) | 2.5 |
| Dividends Received Deduction | 100.00% |
| Qualified Dividend Income | $92679 |

---

Sector Weightings % of Investments

![](g151036g2img0d0aa4c02.jpg)

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

Top Equity Holdings % of Net Assets

![](g151036g2img0e5ecff73.jpg)

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

Portfolio holdings may have changed since the report date.

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc.

(MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.

Includes the fund's position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.

4Schwab Ariel Opportunities ETF \| Annual Report

------

FUND CHANGES

This is a summary of certain changes to the fund since April 1, 2025. For more complete information, you may review the fund's

prospectus at

www.schwabassetmanagement.com/prospectus

or upon request by calling

1-866-414-6349

or by sending an

email request to

orders@mysummaryprospectus.com

.

■

Effective July 28, 2025, the fund's name changed from Schwab Ariel ESG ETF to Schwab Ariel Opportunities ETF.

■

Effective July 28, 2025, the fund's investment strategy was updated to reflect that the fund invests primarily in exchange-traded

equity securities of U.S. small- and mid-capitalization companies which are companies with capitalizations within the range of the

Russell 2500™ Index, as measured at the time of purchase; however, the fund may invest in exchange-traded securities of

companies outside the stated range.

■

Effective July 28, 2025, in connection with the investment strategy change, environmental, social and governance (ESG) risk was

removed from the fund's principal investment risks.

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

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 ETFs' website at

www.schwabassetmanagement.com/prospectus

, the SEC's

website at

www.sec.gov

, or by contacting Schwab ETFs 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

.

Schwab Ariel Opportunities ETF \| Annual Report

------

![](g151036g3img00039bf01.jpg)

Annual Report \| March 31, 2026

Schwab Crypto Thematic ETF

Ticker Symbol: STCE

Principal U.S. Listing Exchange: NYSE Arca, Inc.

------

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 Crypto Thematic ETF | $39 | &nbsp;&nbsp;0.30% |

---

&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's NAV return was 61.49% (for an explanation of NAV returns,

please refer to footnote 2 on the following page). The MCSI ACWI Index (Net)<sup>1</sup>

, which serves as the fund's regulatory index and

provides a broad measure of market performance, returned 20.01%. The fund generally invests in securities that are included in the

Schwab Crypto Thematic Index<sup>®</sup>

(Net)<sup>1</sup>

which returned 61.83% during the same period. The fund does not seek to track the

regulatory index. Differences between the return of the fund and the return of the Schwab Crypto Thematic Index<sup>®</sup>

(Net)<sup>1</sup>

may be

attributable to, among other things, the operational and transactional costs incurred by the fund and not the index.

Top detractors from total return:

■

BitMine Immersion Technologies, Inc.

■

Defi Technologies, Inc.

Top contributors to total return:

■

IREN Ltd.

■

Cipher Ditigal, Inc.

&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.

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

Schwab Crypto Thematic ETF \| Annual Report

REG127391-01 00324187

------

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns

and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted.

To obtain performance information

current to the most recent month end, please visit

www.schwabassetmanagement.com/prospectus

.

Performance of Hypothetical $10,000 Investment (August 4, 2022 - March 31, 2026)

1,2,3

![](g151036g3lg_2men.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 | Since Inception\* |
| Fund: Schwab Crypto Thematic ETF (08/04/2022)<br>1,2<br>| 61.49% | &nbsp;&nbsp;&nbsp;&nbsp;23.39% |
| MSCI ACWI Index (Net)<br>3,4<br>| 20.01% | &nbsp;&nbsp;&nbsp;&nbsp;14.14% |
| <br>Schwab Crypto Thematic Index<br>®<br> (Net)<br>3<br>| 61.83% | &nbsp;&nbsp;&nbsp;&nbsp;23.45% |

---

&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.

Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV). Brokerage commissions will reduce returns.

\*

Inception (08/04/2022) represents the date that the shares began trading in the secondary market.

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares.

Performance is shown on a NAV basis. The fund's per share NAV is the value of one share of the fund. NAV is calculated by taking the fund's total assets (including the fair

value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on the NAV of the fund. Returns assume that

dividends and capital gain distributions have been reinvested in the fund at NAV.

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

The MSCI ACWI Index (Net) serves as the fund's regulatory index and provides a broad measure of market performance. The fund generally invests in securities that are

included in the Schwab Crypto Thematic Index®

(Net). The fund does not seek to track the regulatory index.

2Schwab Crypto Thematic ETF \| Annual Report

------

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

Statistics

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

---

| | |
|:---|:---|
| Net Assets (millions) | $202 |
| Number of Holdings<br>(excludes derivatives)<br>| 36 |
| Portfolio Turnover Rate<br>(excludes in-kind transactions)<br>| 62% |
| Advisory Fees Paid by the Fund | $631592 |
| Weighted Average Market Cap (millions) | $11603 |
| Price/Earnings Ratio (P/E) | 18.7 |
| Price/Book Ratio (P/B) | 1.6 |
| Dividends Received Deduction | 5.43% |
| Qualified Dividend Income | $538551 |

---

Industry Weightings % of Investments

![](g151036g3imgbb2fcdcf2.jpg)

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

Top Equity Holdings % of Net Assets

![](g151036g3img02fdcb303.jpg)

Country Weightings % of Investments

![](g151036g3img92586e654.jpg)

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

Portfolio holdings may have changed since the report date.

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc.

(MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.

Excludes derivatives.

Includes the fund's position(s) in money market mutual funds registered under the Investment Company Act of 1940, as amended.

Schwab Crypto Thematic ETF \| 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 ETFs' website at

www.schwabassetmanagement.com/prospectus

, the

SEC's website at

www.sec.gov

, or by contacting Schwab ETFs 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 Crypto Thematic ETF \| 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 thirty-four operational series. Two have a fiscal year-end of March 31, seven series have a fiscal year-end of the last day of February, fifteen series have a fiscal year-end of August 31, and ten series have a fiscal year-end of December 31. Principal accountant fees disclosed in Items 4(a)-(d) and 4(g) include fees billed for services rendered to each of the thirty-four operational series during 2025/2026 and the thirty-three 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 | (b)Audit-Related Fees | (c) Tax Fees<sup>2</sup> | (c) Tax Fees<sup>2</sup> | (d) All Other Fees | (d) All Other Fees |
| Fiscal<br> Year<br> 2025/2026 | Fiscal<br> Year<br> 2024/2025 | Fiscal<br> Year<br> 2025/2026 | Fiscal Year<br> 2024/2025 | Fiscal<br> Year<br> 2025/2026 | Fiscal<br> Year<br> 2024/2025 | Fiscal<br> Year<br> 2025/2026 | Fiscal<br> Year<br> 2024/2025 |
| $650550 | $601700 | $0 | $0 | $111690 | $101835 | $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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(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: $| 1533328.0 |

---

**(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.
The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has separately-designated standing audit, compliance and valuation committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant's audit, compliance and valuation committee members are Michael J. Beer, J. Derek Penn and Kimberly S. Patmore.

#### 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)](g260351img501cf3481.jpg)

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

Schwab Ariel Opportunities ETF

------

*(formerly Schwab Ariel ESG ETF)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ticker Symbol **SAEF**

**Adviser**

Charles Schwab Investment Management, Inc., dba Schwab Asset Management<sup>®</sup>

**Subadviser**

Ariel Investments, LLC

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

---

| |
|:---|
| **THIS FUND IS DIFFERENT FROM TRADITIONAL ETFs** |
| &nbsp;&nbsp; **Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For** <br> **example:**<br>|
| &nbsp;&nbsp; • **You may have to pay more money to trade the fund's shares. This fund will provide less information to traders, who tend to charge more for** <br> **trades when they have less information.**<br>|
| &nbsp;&nbsp; • **The price you pay to buy fund shares on an exchange may not match the value of the fund's portfolio. The same is true when you sell** <br> **shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders.**<br>|
| • **These additional risks may be even greater in bad or uncertain market conditions.** |
| &nbsp;&nbsp; • **The ETF will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio** <br> **includes some of the ETF's holdings, it is not the ETF's actual portfolio.**<br>|
| &nbsp;&nbsp; **The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund secret, this fund** <br> **may face less risk that other traders can predict or copy its investment strategy. This may improve the fund's performance. If other traders are** <br> **able to copy or predict the fund's investment strategy, however, this may hurt the fund's performance.**<br>|
| &nbsp;&nbsp; **For additional information regarding the unique attributes and risks of the fund, see *Proxy Portfolio Risk*, *Premium/Discount Risk*, *Trading Halt*** <br> ***Risk*, *Authorized Participant Concentration Risk*, *Tracking Error Risk* and *Shares of the Fund May Trade at Prices Other Than NAV* in the** <br> ***Principal Risks* and *Proxy Portfolio* and *Proxy Overlap* sections of the prospectus and/or the Statement of Additional Information.**<br>|

---

------

**In This Report**

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

---

| | |
|:---|:---|
| **[Item 7 - Financial Statements and Financial Highlights for Open-End](#xx_e869b5fb-73f1-496a-97ee-fcd7c3db26e7_1)**<br> **[Management Investment Companies](#xx_e869b5fb-73f1-496a-97ee-fcd7c3db26e7_1)** <br>|  |
| [Financial Statements and Portfolio Holdings](#xx_e869b5fb-73f1-496a-97ee-fcd7c3db26e7_1) | 2 |
| [Financial Notes](#xx_3c712a39-4b26-4992-b0bd-c7189a5cd87a_1) | 8 |
| [Report of Independent Registered Public Accounting Firm](#xx_387113e2-32c1-48ad-8df5-be56f1aef059_1) | 14 |
| **[Item 8 – Changes in and Disagreements with Accountants for Open-End](#xx_38ecc335-e185-482d-81f9-db4357130adc_1)**<br> **[Management Investment Companies](#xx_38ecc335-e185-482d-81f9-db4357130adc_1)**<br>| 15 |
| **[Item 9 – Proxy Disclosures for Open-End Management Investment](#xx_38c09cc2-efd4-4498-92b9-003b62612497_1)**<br> **[Companies](#xx_38c09cc2-efd4-4498-92b9-003b62612497_1)**<br>| 16 |
| **[Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End](#xx_3bc67123-0074-4448-901a-8cc24226a0d9_1)**<br> **[Management Investment Companies](#xx_3bc67123-0074-4448-901a-8cc24226a0d9_1)**<br>| 17 |
| **[Item 11 - Statement Regarding Basis for Approval of Investment Advisory](#xx_359bdd51-238e-45f8-9b75-d84101ea4b90_1)**<br> **[Contract](#xx_359bdd51-238e-45f8-9b75-d84101ea4b90_1)**<br>| 18  |

---

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

Distributor: SEI Investments Distribution Co. (SIDCO)

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc. The Industry classifications used in the Portfolio Holdings are sub-categories of Sector classifications.

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**1**

------

Schwab Ariel Opportunities ETF

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>| 11/16/21<sup>1</sup>– <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; $24.48 | &nbsp;&nbsp; $24.53 | &nbsp;&nbsp; $21.21 | &nbsp;&nbsp; $22.84 | &nbsp;&nbsp; $25.00 |
| Income (loss) from investment operations: |  |  |  |  |  |
| Net investment income (loss)<sup>2</sup> <br>| 0.12 | 0.10 | 0.12 | 0.14 | 0.05 |
| Net realized and unrealized gains (losses) | 3.03 | &nbsp;&nbsp; (0.05)<br>| 3.32 | &nbsp;&nbsp; (1.65)<br>| &nbsp;&nbsp; (2.16)<br>|
| Total from investment operations | 3.15 | 0.05 | 3.44 | &nbsp;&nbsp; (1.51)<br>| &nbsp;&nbsp; (2.11)<br>|
| Less distributions: |  |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.10)<br>| &nbsp;&nbsp; (0.10)<br>| &nbsp;&nbsp; (0.12)<br>| &nbsp;&nbsp; (0.12)<br>| &nbsp;&nbsp; (0.05)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $27.53 | &nbsp;&nbsp; $24.48 | &nbsp;&nbsp; $24.53 | &nbsp;&nbsp; $21.21 | &nbsp;&nbsp; $22.84 |
| Total return | 12.89<br> %<br>| 0.19<br> %<br>| 16.27<br> %<br>| &nbsp;&nbsp; (6.58<br> %)<br>| &nbsp;&nbsp; (8.46 %)<sup>3</sup><br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |  |
| Total expenses | 0.59<br> %<br>| 0.59<br> %<br>| 0.59<br> %<br>| 0.59 %<sup>4</sup><br>| 0.59 %<sup>5</sup><br>|
| Net investment income (loss) | 0.45<br> %<br>| 0.40<br> %<br>| 0.56<br> %<br>| 0.68<br> %<br>| 0.61 %<sup>5</sup><br>|
| Portfolio turnover rate<sup>6</sup> <br>| &nbsp;&nbsp; 14<br> %<br>| &nbsp;&nbsp; 15<br> %<br>| &nbsp;&nbsp; 11<br> %<br>| &nbsp;&nbsp; 16<br> %<br>| &nbsp;&nbsp; 15 %<sup>3</sup><br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $23 | &nbsp;&nbsp; $24 | &nbsp;&nbsp; $23 | &nbsp;&nbsp; $14 | &nbsp;&nbsp; $11 |

---

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

<sup>1</sup> Commencement of operations.

<sup>2</sup> Calculated based on the average shares outstanding during the period.

<sup>3</sup> Not annualized.

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

<sup>5</sup> Annualized.

<sup>6</sup> Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

*See financial notes*

**2**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

------

Schwab Ariel Opportunities ETF

Portfolio Holdings as of March 31, 2026

------

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

---

| | | |
|:---|:---|:---|
| SECURITY | NUMBER<br> OF SHARES<br>| VALUE ($) |
| **COMMON STOCKS** 98.7% OF NET ASSETS  | **COMMON STOCKS** 98.7% OF NET ASSETS  | **COMMON STOCKS** 98.7% OF NET ASSETS  |
| **Automobiles & Components 1.9%** | **Automobiles & Components 1.9%** | **Automobiles & Components 1.9%** |
| Gentex Corp.  | 15688 | 342783 |
| Phinia, Inc.  | 1332 | 91162 |
|  |  | **433945** |
| **Banks 1.4%** | **Banks 1.4%** | **Banks 1.4%** |
| M&T Bank Corp.  | 1553 | 321036 |
| **Capital Goods 14.3%** | **Capital Goods 14.3%** | **Capital Goods 14.3%** |
| Generac Holdings, Inc. \* | 3337 | 651816 |
| Kennametal, Inc.  | 7861 | 284018 |
| Masco Corp.  | 3413 | 206043 |
| Middleby Corp. \* | 3155 | 418290 |
| nVent Electric PLC  | 5297 | 626529 |
| Resideo Technologies, Inc. \* | 17674 | 595790 |
| Simpson Manufacturing Co., Inc.  | 1395 | 239410 |
| Snap-on, Inc.  | 704 | 255707 |
|  |  | **3277603** |
| **Commercial & Professional Services 5.7%** | **Commercial & Professional Services 5.7%** | **Commercial & Professional Services 5.7%** |
| Brady Corp., Class A  | 2764 | 224548 |
| Brink's Co.  | 8718 | 903446 |
| Korn Ferry  | 2844 | 179030 |
|  |  | **1307024** |
| **Consumer Discretionary Distribution & Retail 1.1%** | **Consumer Discretionary Distribution & Retail 1.1%** | **Consumer Discretionary Distribution & Retail 1.1%** |
| CarMax, Inc. \* | 3506 | 145780 |
| LKQ Corp.  | 3779 | 110989 |
|  |  | **256769** |
| **Consumer Durables & Apparel 2.2%** | **Consumer Durables & Apparel 2.2%** | **Consumer Durables & Apparel 2.2%** |
| Mattel, Inc. \* | 21002 | 305159 |
| Mohawk Industries, Inc. \* | 1972 | 194163 |
|  |  | **499322** |
| **Consumer Services 17.9%** | **Consumer Services 17.9%** | **Consumer Services 17.9%** |
| ADT, Inc.  | 38421 | 252426 |
| Covista, Inc. \* | 4382 | 505025 |
| Lindblad Expeditions Holdings, Inc. \* | 47203 | 816612 |
| Norwegian Cruise Line Holdings Ltd. \* | 41737 | 780482 |
| OneSpaWorld Holdings Ltd.  | 56123 | 1288023 |
| Royal Caribbean Cruises Ltd.  | 1740 | 478813 |
|  |  | **4121381** |
| **Financial Services 11.6%** | **Financial Services 11.6%** | **Financial Services 11.6%** |
| Carlyle Group, Inc.  | 7719 | 373522 |
| FactSet Research Systems, Inc.  | 595 | 129109 |
| Fiserv, Inc. \* | 7325 | 408735 |
| KKR & Co., Inc.  | 3841 | 355293 |
| Lazard, Inc.  | 7992 | 339500 |
| Northern Trust Corp.  | 4614 | 643976 |
| WEX, Inc. \* | 2747 | 420401 |
|  |  | **2670536** |

---

---

| | | |
|:---|:---|:---|
| SECURITY | NUMBER<br> OF SHARES<br>| VALUE ($) |
| **Food, Beverage & Tobacco 1.0%** | **Food, Beverage & Tobacco 1.0%** | **Food, Beverage & Tobacco 1.0%** |
| J.M. Smucker Co.  | 2404 | 231842 |
| **Health Care Equipment & Services 4.2%** | **Health Care Equipment & Services 4.2%** | **Health Care Equipment & Services 4.2%** |
| Envista Holdings Corp. \* | 16053 | 407264 |
| Labcorp Holdings, Inc.  | 1220 | 325508 |
| Zimmer Biomet Holdings, Inc.  | 2573 | 232651 |
|  |  | **965423** |
| **Household & Personal Products 0.6%** | **Household & Personal Products 0.6%** | **Household & Personal Products 0.6%** |
| Reynolds Consumer Products, Inc.  | 6476 | 137162 |
| **Insurance 5.3%** | **Insurance 5.3%** | **Insurance 5.3%** |
| Aflac, Inc.  | 2047 | 224576 |
| First American Financial Corp.  | 10072 | 607241 |
| Progressive Corp.  | 1010 | 200223 |
| RLI Corp.  | 3483 | 198670 |
|  |  | **1230710** |
| **Materials 1.2%** | **Materials 1.2%** | **Materials 1.2%** |
| Axalta Coating Systems Ltd. \* | 10089 | 279465 |
| **Media & Entertainment 9.3%** | **Media & Entertainment 9.3%** | **Media & Entertainment 9.3%** |
| Madison Square Garden Entertainment Corp. \* | 7224 | 425566 |
| Madison Square Garden Sports Corp. \* | 1336 | 429390 |
| Manchester United PLC, Class A \* | 19365 | 325719 |
| Omnicom Group, Inc.  | 2923 | 220131 |
| Sphere Entertainment Co. \* | 6216 | 729759 |
|  |  | **2130565** |
| **Pharmaceuticals, Biotechnology & Life Sciences 5.7%** | **Pharmaceuticals, Biotechnology & Life Sciences 5.7%** | **Pharmaceuticals, Biotechnology & Life Sciences 5.7%** |
| Bio-Rad Laboratories, Inc., Class A \* | 1239 | 345371 |
| Charles River Laboratories International, Inc. \* | 2526 | 435735 |
| Prestige Consumer Healthcare, Inc. \* | 8856 | 524895 |
|  |  | **1306001** |
| **Real Estate Management & Development 4.4%** | **Real Estate Management & Development 4.4%** | **Real Estate Management & Development 4.4%** |
| CBRE Group, Inc., Class A \* | 1925 | 260761 |
| Jones Lang LaSalle, Inc. \* | 2463 | 749540 |
|  |  | **1010301** |
| **Software & Services 1.3%** | **Software & Services 1.3%** | **Software & Services 1.3%** |
| Fair Isaac Corp. \* | 204 | 217778 |
| Hackett Group, Inc.  | 6989 | 90927 |
|  |  | **308705** |
| **Technology Hardware & Equipment 9.6%** | **Technology Hardware & Equipment 9.6%** | **Technology Hardware & Equipment 9.6%** |
| Keysight Technologies, Inc. \* | 2305 | 650863 |
| Knowles Corp. \* | 18779 | 482245 |
| Littelfuse, Inc.  | 1311 | 444888 |
| Motorola Solutions, Inc.  | 696 | 302043 |
| Zebra Technologies Corp., Class A \* | 1544 | 322819 |
|  |  | **2202858** |
| **Total Common Stocks** <br>**(Cost $19,689,155)** | **Total Common Stocks** <br>**(Cost $19,689,155)** | **22690648** |

---

*See financial notes*

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**3**

------

Schwab Ariel Opportunities ETF

Portfolio Holdings as of March 31, 2026 (continued)

------

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

---

| | | |
|:---|:---|:---|
| SECURITY | NUMBER<br> OF SHARES<br>| VALUE ($) |
| **SHORT-TERM INVESTMENTS** 1.3% OF NET ASSETS  | **SHORT-TERM INVESTMENTS** 1.3% OF NET ASSETS  | **SHORT-TERM INVESTMENTS** 1.3% OF NET ASSETS  |
| **Money Market Funds 1.3%** | **Money Market Funds 1.3%** | **Money Market Funds 1.3%** |
| State Street Institutional U.S. Government <br> Money Market Fund, Premier Class <br> 3.60% *(a)*<br>| 293786 | 293786 |
| **Total Short-Term Investments** <br>**(Cost $293,786)** | **Total Short-Term Investments** <br>**(Cost $293,786)** | **293786** |
| **Total Investments in Securities** <br>**(Cost $19,982,941)** | **Total Investments in Securities** <br>**(Cost $19,982,941)** | **22984434** |

---

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

\* Non-income producing security. <br> *(a)* The rate shown is the annualized 7-day yield.

------

The following is a summary of the inputs used to value the fund's investments as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| DESCRIPTION | QUOTED PRICES IN <br>ACTIVE MARKETS FOR <br>IDENTICAL ASSETS <br>(LEVEL 1)<br>| &nbsp;&nbsp; OTHER SIGNIFICANT <br>OBSERVABLE INPUTS <br>(LEVEL 2)<br>| &nbsp;&nbsp; SIGNIFICANT <br>UNOBSERVABLE INPUTS <br>(LEVEL 3)<br>| TOTAL |
| **<u>Assets</u>** |  |  |  |  |
| Common Stocks<sup>1</sup> <br>| $22690648 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $— | &nbsp;&nbsp; $22690648 |
| Short-Term Investments<sup>1</sup> <br>| 293786 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 293786 |
| **Total** | **$22984434** | &nbsp;&nbsp; **$—** | &nbsp;&nbsp; **$—** | &nbsp;&nbsp; **$22984434** |

---

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

<sup>1</sup> As categorized in the Portfolio Holdings.

*See financial notes*

**4**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

------

Schwab Ariel Opportunities ETF

Statement of Assets and Liabilities

------

As of March 31, 2026

---

| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - unaffiliated issuers (cost $19,982,941) |  | $22984434 |
| Receivables: |  |  |
| Dividends | + | 15507 |
| **Total assets** |  | **22999941** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Payables: |  |  |
| Management fees | + | 11323 |
| **Total liabilities** |  | **11323** |
| **Net assets** |  | **$22988618** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $20498019 |
| Total distributable earnings | + | 2490599 |
| **Net assets** |  | **$22988618** |

---

&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** |
| $22988618 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 835000 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $27.53 |

---

*See financial notes*

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**5**

------

Schwab Ariel Opportunities ETF

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 - unaffiliated issuers**  |  | **$252081** |
| **Expenses** | **Expenses** | **Expenses** |
| Management fees |  | 142550 |
| **Total expenses** | – | **142550** |
| **Net investment income** |  | **109531** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Net realized losses on sales of securities - unaffiliated issuers  |  | (324606)<br>|
| Net realized gains on sales of in-kind redemptions - unaffiliated issuers  | + | 1464171 |
| **Net realized gains** |  | **1139565** |
| **Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers** | + | **1735483** |
| **Net realized and unrealized gains** |  | **2875048** |
| **Increase in net assets resulting from operations** |  | **$2984579** |

---

*See financial notes*

**6**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

------

Schwab Ariel Opportunities ETF

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 |  | $109531 | &nbsp;&nbsp;&nbsp; $95886 |
| Net realized gains |  | 1139565 | &nbsp;&nbsp;&nbsp; 453883 |
| Net change in unrealized appreciation (depreciation) | + | 1735483 | &nbsp;&nbsp;&nbsp; (665727)<br>|
| **Increase (decrease) in net assets resulting from operations** |  | **$2984579** | &nbsp;&nbsp;&nbsp; **($115958)**<br>|
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($92679)**<br>| &nbsp;&nbsp;&nbsp; **($94486)**<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 |  | 55000 | &nbsp;&nbsp;&nbsp; $1503418 | &nbsp;&nbsp;&nbsp; 110000 | &nbsp;&nbsp;&nbsp; $2911831 |
| Shares redeemed | + | (185000)<br>| &nbsp;&nbsp;&nbsp; (5025195)<br>| &nbsp;&nbsp;&nbsp; (65000)<br>| &nbsp;&nbsp;&nbsp; (1654425)<br>|
| **Net transactions in fund shares**  |  | **(130000)**<br>| &nbsp;&nbsp;&nbsp; **($3521777)**<br>| &nbsp;&nbsp;&nbsp; **45000** | &nbsp;&nbsp;&nbsp; **$1257406** |
| **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 |  | 965000 | &nbsp;&nbsp;&nbsp; $23618495 | &nbsp;&nbsp;&nbsp; 920000 | &nbsp;&nbsp;&nbsp; $22571533 |
| Total increase (decrease) | + | (130000)<br>| &nbsp;&nbsp;&nbsp; (629877)<br>| &nbsp;&nbsp;&nbsp; 45000 | &nbsp;&nbsp;&nbsp; 1046962 |
| **End of period** |  | **835000** | &nbsp;&nbsp;&nbsp; **$22988618** | &nbsp;&nbsp;&nbsp; **965000** | &nbsp;&nbsp;&nbsp; **$23618495** |

---

*See financial notes*

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**7**

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Schwab Ariel Opportunities ETF

Financial Notes

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Business Structure of the Fund:**

The fund in this report is a series of Schwab Strategic Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Delaware statutory 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 fund discussed in this report, which is highlighted:

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| | |
|:---|:---|
| **SCHWAB STRATEGIC TRUST**  | **SCHWAB STRATEGIC TRUST**  |
| **Schwab Ariel Opportunities ETF** | Schwab Intermediate-Term U.S. Treasury ETF |
| Schwab U.S. REIT ETF | Schwab Long-Term U.S. Treasury ETF |
| Schwab 1000 Index<sup>®</sup> ETF | Schwab U.S. Aggregate Bond ETF |
| Schwab U.S. Broad Market ETF | Schwab 1-5 Year Corporate Bond ETF |
| Schwab U.S. Large-Cap ETF | Schwab 5-10 Year Corporate Bond ETF |
| Schwab U.S. Large-Cap Growth ETF | Schwab Fundamental U.S. Broad Market ETF |
| Schwab U.S. Large-Cap Value ETF | Schwab Fundamental U.S. Large Company ETF |
| Schwab U.S. Mid-Cap ETF | Schwab Fundamental U.S. Small Company ETF |
| Schwab U.S. Small-Cap ETF | Schwab Fundamental International Equity ETF |
| Schwab U.S. Dividend Equity ETF | Schwab Fundamental International Small Equity ETF |
| Schwab International Dividend Equity ETF | Schwab Fundamental Emerging Markets Equity ETF |
| Schwab International Equity ETF | Schwab Crypto Thematic ETF |
| Schwab International Small-Cap Equity ETF | Schwab Mortgage-Backed Securities ETF |
| Schwab Emerging Markets Equity ETF | Schwab High Yield Bond ETF |
| Schwab Municipal Bond ETF | Schwab Core Bond ETF |
| Schwab U.S. TIPS ETF | Schwab Government Money Market ETF |
| Schwab Short-Term U.S. Treasury ETF | Schwab Ultra-Short Income ETF |

---

The fund issues and redeems shares at its net asset value per share only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Individual shares of the fund trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than net asset value, shares may trade at a price greater than net asset value (premium) or less than net asset value (discount). A chart showing the frequency at which the fund's daily closing market price was at a discount or premium to the fund's net asset value can be found at www.schwabassetmanagement.com.

Effective July 28, 2025, Schwab Ariel ESG ETF changed its name to Schwab Ariel Opportunities ETF.

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the 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.

**Investment Objective** 

The **Schwab Ariel Opportunities ETF's** goal is to seek long-term capital appreciation. The fund invests primarily in exchange-traded equity securities of U.S. small- and mid-capitalization companies which are companies with capitalizations within the range of the Russell 2500™ Index, as measured at the time of purchase; however, the fund may invest in exchange-traded securities of companies outside the stated range.

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**2. Significant Accounting Policies:**

The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows 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).

**8**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

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Schwab Ariel Opportunities ETF

Financial Notes (continued)

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

**2. Significant Accounting Policies (continued):** 

The fund may invest in mutual funds and exchange-traded funds, which are referred to as "underlying funds." 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 fund's 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 the fund's portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:

&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 the fund's securities when market prices are not "readily available" or are unreliable. For example, a security may be fair valued when it's de-listed or its trading is halted or suspended; when a security's primary pricing source is unable or unwilling to provide a price; or when a security's primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee's judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

&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

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**9**

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Schwab Ariel Opportunities ETF

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 the fund's results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The levels associated with valuing the fund's investments are disclosed in the fund's Portfolio Holdings.

**(b) 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.

**(c) 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). Non-cash dividends in the form of additional securities are recorded on the ex-dividend date at fair value, if any. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

**(d) Expenses:**

Pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust, the investment adviser pays the operating expenses of the fund, excluding acquired fund fees and expenses, taxes, any brokerage expenses, and extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to the fund are charged directly to the fund. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds and are reflected in the net asset values of the underlying funds.

**(e) Distributions to Shareholders:**

The fund makes distributions from net investment income, if any, quarterly and from 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.

**(f) 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.

**(g) Federal Income Taxes:**

The fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax. The fund did not pay any federal taxes during the period.

**(h) 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.

The management committee of the fund's investment adviser acts as the fund's CODM. The CODM has determined that the fund operates as a single operating segment given the fund has a single defined investment strategy disclosed in its respective prospectus. The discrete financial information in the form of the fund's portfolio composition, total returns, expense ratios and

**10**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

------

Schwab Ariel Opportunities ETF

Financial Notes (continued)

------

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

**2. Significant Accounting Policies (continued):** 

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 fund, is presented within the fund's financial statements.

**(i) Indemnification:**

Under the fund's organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects 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 the fund's investment adviser pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust. Ariel Investments, LLC (Ariel), the fund's subadviser, provides day-to-day portfolio management services to the fund, subject to the supervision of the investment adviser.

For its advisory services to the fund, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.59% of the fund's average daily net assets.

The investment adviser (not the fund) pays a portion of the advisory fees it receives to the subadviser in return for its portfolio management services.

**Interfund Transactions**

The fund's investment adviser or subadviser may engage in direct transactions with other funds they manage 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 or subadviser. For the period ended March 31, 2026, the fund did not have any purchases and sales of securities with other funds managed by the investment adviser or subadviser.

**Interfund Borrowing and Lending**

Pursuant to an exemptive order issued by the SEC, the fund 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 fund had no interfund borrowing or lending activity during the period.

------

**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 fund 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 the fund which includes trustee fees.

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**5. Borrowing from Banks:**

During the period, the fund was a participant 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

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**11**

------

Schwab Ariel Opportunities ETF

Financial Notes (continued)

------

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

**5. Borrowing from Banks (continued):** 

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 the fund, the investment adviser paid a commitment fee of 0.15% per annum on the fund's proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the fund was a participant 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 the fund borrows. There were no borrowings by the fund from either line of credit during the period.

The fund also has access to custodian overdraft facilities. The 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 in-kind transactions and short-term obligations) were as follows:

---

| | |
|:---|:---|
| PURCHASES <br>OF SECURITIES <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SALES <br>OF SECURITIES<br>|
| $3764436 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $3358170 |

---

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**7. In-Kind Transactions:**

The consideration for the purchase of Creation Units of the fund consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the securities involved in the fund's underlying index, and an amount of cash. Investors purchasing and redeeming Creation Units are subject to a standard creation transaction fee and a standard redemption transaction fee paid to the custodian to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Purchasers and redeemers of Creation Units for cash are subject to an additional variable charge paid to the fund that will offset the transaction costs to the fund of buying or selling portfolio securities. Variable charges are recorded in the Transactions In Fund Shares section in the Statement of Changes in Net Assets and generally have no effect on the net asset value per share. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the investment adviser may cover the cost of any transaction fees when believed to be in the best interests of the fund.

The in-kind transactions for the period ended March 31, 2026, were as follows:

---

| | |
|:---|:---|
| IN-KIND PURCHASES <br>OF SECURITIES <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN-KIND SALES <br>OF SECURITIES<br>|
| $1402239 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $4696062 |

---

For the period ended March 31, 2026, the fund may realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the fund and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the fund's tax year. These reclassifications have no effect on net assets or net asset value. The net realized gains or losses on sales of in-kind redemptions for the period ended March 31, 2026, if any, are disclosed in the fund's Statement of Operations.

**12**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

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Schwab Ariel Opportunities ETF

Financial Notes (continued)

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

**8. Federal Income Taxes:**

As of March 31, 2026, the tax basis cost of the fund's 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>|
| &nbsp;&nbsp; $20145300 | &nbsp;&nbsp; $5022283 | &nbsp;&nbsp; ($2183149)<br>| &nbsp;&nbsp; $2839134 |

---

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 fund's investments, disclosed above, have been adjusted from its 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>| &nbsp;&nbsp;&nbsp; NET UNREALIZED <br>APPRECIATION <br>&nbsp;&nbsp;&nbsp;&nbsp;(DEPRECIATION) <br>ON INVESTMENTS <br>| &nbsp;&nbsp;&nbsp; CAPITAL LOSS <br>CARRYFORWARDS AND OTHER LOSSES<br>| TOTAL  |
| $27808 | &nbsp;&nbsp;&nbsp;&nbsp; $2839134 | &nbsp;&nbsp;&nbsp;&nbsp; ($376343)<br>| &nbsp;&nbsp;&nbsp;&nbsp; $2490599 |

---

Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of March 31, 2026, the fund had capital loss carryforwards of $376,343.

The tax basis components of distributions paid during the current and prior fiscal years were as follows:

---

| | |
|:---|:---|
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| ORDINARY <br>INCOME<br>| ORDINARY <br>INCOME <br>|
| $92679 | &nbsp;&nbsp; $94486 |

---

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 fund 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 fund, and has determined that no provision for income tax is required in the fund's financial statements. During the fiscal year ended March 31, 2026, the fund did not incur any interest or penalties.

------

**9. 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.

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**13**

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Schwab Ariel Opportunities ETF

Report of Independent Registered Public Accounting Firm

------

To the Board of Trustees of Schwab Strategic Trust and Shareholders of Schwab Ariel Opportunities ETF (formerly Schwab Ariel ESG ETF):

***Opinion on the Financial Statements and Financial Highlights***

We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab Ariel Opportunities ETF (the "Fund"), one of the Funds constituting Schwab Strategic Trust, as of March 31, 2026, the related statement 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 four years in the period then ended and for the period from November 16, 2021 (commencement of operations) through March 31, 2022, 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 the Fund as of March 31, 2026, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended and for the period from November 16, 2021 (commencement of operations) through March 31, 2022, 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 Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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 Fund is not required to have, nor were we engaged to perform, an audit of its 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 Fund's 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 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 the Schwab Funds Complex since 2020.

**14**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

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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.

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**15**

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Proxy Disclosures for Open-End Management Investment Companies

------

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

Not applicable.

**16**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

------

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).

Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

**17**

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Statement Regarding Basis for Approval of Investment Advisory Contract

------

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

Not applicable.

**18**Schwab Ariel Opportunities ETF \| Annual Holdings and Financial Statements

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![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](g260351img501cf3481.jpg)

MFR117823-04

00324203

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![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](g449869imga32500b61.jpg)

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

Schwab Crypto Thematic ETF

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ticker Symbol **STCE**

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**In This Report**

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| | |
|:---|:---|
| **[Item 7 - Financial Statements and Financial Highlights for Open-End](#xx_d10f07c6-72d6-4d1a-bae5-81b7091171f6_1)**<br> **[Management Investment Companies](#xx_d10f07c6-72d6-4d1a-bae5-81b7091171f6_1)** <br>|  |
| [Financial Statements and Portfolio Holdings](#xx_d10f07c6-72d6-4d1a-bae5-81b7091171f6_1) | 2 |
| [Financial Notes](#xx_a12a62f8-6e16-4305-bfda-c747b4923ab4_1) | 8 |
| [Report of Independent Registered Public Accounting Firm](#xx_a8875602-917a-4f99-8571-0caed58b3075_1) | 17 |
| **[Item 8 – Changes in and Disagreements with Accountants for Open-End](#xx_71d4ee04-cc0d-4f2e-b9eb-0919b4194297_1)**<br> **[Management Investment Companies](#xx_71d4ee04-cc0d-4f2e-b9eb-0919b4194297_1)**<br>| 18 |
| **[Item 9 – Proxy Disclosures for Open-End Management Investment](#xx_c5446e66-8eed-4223-8e4b-f3e54b3c3987_1)**<br> **[Companies](#xx_c5446e66-8eed-4223-8e4b-f3e54b3c3987_1)**<br>| 19 |
| **[Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End](#xx_7d5aae34-caa4-4aae-8c36-62048fbf86ea_1)**<br> **[Management Investment Companies](#xx_7d5aae34-caa4-4aae-8c36-62048fbf86ea_1)**<br>| 20 |
| **[Item 11 - Statement Regarding Basis for Approval of Investment Advisory](#xx_99c468e8-9b63-4691-80d2-2b29ebab5279_1)**<br> **[Contract](#xx_99c468e8-9b63-4691-80d2-2b29ebab5279_1)**<br>| 21  |

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

Distributor: SEI Investments Distribution Co. (SIDCO)

The Sector/Industry classifications in this report use the Global Industry Classification Standard (GICS) which was developed by and is the exclusive property of MSCI Inc. (MSCI) and Standard & Poor's (S&P). GICS is a service mark of MSCI and S&P and has been licensed for use by Charles Schwab & Co., Inc.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**1**

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Schwab Crypto Thematic ETF

Financial Statements

**FINANCIAL HIGHLIGHTS**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 4/1/25– <br>3/31/26<br>| 4/1/24– <br>3/31/25<br>| 4/1/23– <br>3/31/24<br>| 8/4/22<sup>1</sup>– <br>3/31/23<br>|
| **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** | **Per-Share Data** |
| Net asset value at beginning of period | &nbsp;&nbsp; $32.64 | &nbsp;&nbsp; $39.96 | &nbsp;&nbsp; $20.02 | &nbsp;&nbsp; $25.00 |
| Income (loss) from investment operations: |  |  |  |  |
| Net investment income (loss)<sup>2</sup> <br>| 0.13 | 0.19 | 0.12 | 0.20 |
| Net realized and unrealized gains (losses) | 20.26 | &nbsp;&nbsp; (7.22)<br>| 19.92 | &nbsp;&nbsp; (4.96)<br>|
| Total from investment operations | 20.39 | &nbsp;&nbsp; (7.03)<br>| 20.04 | &nbsp;&nbsp; (4.76)<br>|
| Less distributions: |  |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (1.18)<br>| &nbsp;&nbsp; (0.29)<br>| &nbsp;&nbsp; (0.10)<br>| &nbsp;&nbsp; (0.22)<br>|
| Net asset value at end of period | &nbsp;&nbsp; $51.85 | &nbsp;&nbsp; $32.64 | &nbsp;&nbsp; $39.96 | &nbsp;&nbsp; $20.02 |
| Total return | 61.49<br> %<br>| &nbsp;&nbsp; (17.85<br> %)<br>| 100.38<br> %<br>| &nbsp;&nbsp; (18.85 %)<sup>3</sup><br>|
| **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
| Ratios to average net assets: |  |  |  |  |
| Total expenses | 0.30<br> %<br>| 0.30<br> %<br>| 0.30<br> %<br>| 0.30 %<sup>4</sup><br>|
| Net investment income (loss) | 0.20<br> %<br>| 0.46<br> %<br>| 0.47<br> %<br>| 1.55 %<sup>4</sup><br>|
| Portfolio turnover rate<sup>5</sup> <br>| &nbsp;&nbsp; 62<br> %<br>| &nbsp;&nbsp; 60<br> %<br>| &nbsp;&nbsp; 58<br> %<br>| &nbsp;&nbsp; 36 %<sup>3</sup><br>|
| Net assets, end of period (x 1,000,000) | &nbsp;&nbsp; $202 | &nbsp;&nbsp; $85 | &nbsp;&nbsp; $38 | &nbsp;&nbsp; $11 |

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

<sup>1</sup> Commencement of operations.

<sup>2</sup> Calculated based on the average shares outstanding during the period.

<sup>3</sup> Not annualized.

<sup>4</sup> Annualized.

<sup>5</sup> Portfolio turnover rate excludes securities received or delivered from processing of in-kind creations or redemptions.

*See financial notes*

**2**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Portfolio Holdings as of March 31, 2026

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**The Schwab Crypto Thematic ETF will not invest in any cryptocurrency or digital asset directly.** The fund invests in companies listed in the Schwab Crypto Thematic Index and is designed to deliver global exposure to companies that may benefit from the development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. The Schwab Crypto Thematic ETF is non-diversified, which means that in may invest in the securities of relatively few issuers. As a result, a single adverse economic or regulatory occurrence may have a more significant effect on the fund`s investments, and the fund may experience increased volatility.

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| | | |
|:---|:---|:---|
| SECURITY | NUMBER<br> OF SHARES<br>| VALUE ($) |
| **COMMON STOCKS** 99.7% OF NET ASSETS | **COMMON STOCKS** 99.7% OF NET ASSETS | **COMMON STOCKS** 99.7% OF NET ASSETS |
| **Australia 4.9%** | **Australia 4.9%** | **Australia 4.9%** |
| IREN Ltd. \* | 287608 | 9859202 |
| **Canada 5.8%** | **Canada 5.8%** | **Canada 5.8%** |
| Defi Technologies, Inc. *\*(a)* | 3162432 | 1747244 |
| Hive Digital Technologies Ltd. \* | 5250957 | 9976818 |
|  |  | **11724062** |
| **China 3.8%** | **China 3.8%** | **China 3.8%** |
| Canaan, Inc., ADR \* | 11751327 | 5074223 |
| OSL Group Ltd. \* | 1464880 | 2615790 |
|  |  | **7690013** |
| **Japan 3.6%** | **Japan 3.6%** | **Japan 3.6%** |
| GMO internet group, Inc.  | 126968 | 2287723 |
| Monex Group, Inc. *(a)* | 677298 | 2852408 |
| SBI Holdings, Inc.  | 114118 | 2043637 |
|  |  | **7183768** |
| **Norway 1.2%** | **Norway 1.2%** | **Norway 1.2%** |
| Opera Ltd., ADR  | 174621 | 2490095 |
| **United Kingdom 1.5%** | **United Kingdom 1.5%** | **United Kingdom 1.5%** |
| IG Group Holdings PLC  | 166186 | 3138219 |
| **United States 78.9%** | **United States 78.9%** | **United States 78.9%** |
| Applied Digital Corp. \* | 143634 | 3409871 |
| BGC Group, Inc., Class A  | 255331 | 2497137 |
| Bit Digital, Inc. \* | 5501089 | 7206427 |
| Bitdeer Technologies Group, Class A *\*(a)* | 1811703 | 15671231 |
| BitMine Immersion Technologies, Inc.  | 423113 | 8369175 |
| Block, Inc. \* | 92575 | 5571163 |
| Bullish *\*(a)* | 262398 | 9375481 |
| Cboe Global Markets, Inc.  | 8120 | 2282288 |
| Cipher Digital, Inc. \* | 403156 | 5188618 |
| Cleanspark, Inc. \* | 1007319 | 8572285 |
| CME Group, Inc.  | 7613 | 2248500 |
| Coinbase Global, Inc., Class A \* | 42736 | 7462133 |
| Core Scientific, Inc. \* | 621717 | 9300886 |
| Customers Bancorp, Inc. \* | 38841 | 2695954 |
| Galaxy Digital, Inc., Class A \* | 580540 | 10710963 |
| Hut 8 Corp. \* | 201610 | 9457525 |
| Interactive Brokers Group, Inc., Class A  | 70647 | 4738294 |
| MARA Holdings, Inc. \* | 917134 | 7483813 |
| PayPal Holdings, Inc.  | 51544 | 2331335 |
| Riot Platforms, Inc. \* | 476294 | 5886994 |
| Robinhood Markets, Inc., Class A \* | 72325 | 5012123 |
| Strategy, Inc., Class A \* | 60676 | 7572365 |
| Trump Media & Technology Group Corp. \* | 1033973 | 9595269 |
| Twenty One Capital, Inc., Class A *\*(a)* | 680022 | 4352141 |

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| | | |
|:---|:---|:---|
| SECURITY | NUMBER<br> OF SHARES<br>| VALUE ($) |
| WisdomTree, Inc.  | 182559 | 2658059 |
|  |  | **159650030** |
| **Total Common Stocks** <br>**(Cost $260,758,391)** | **Total Common Stocks** <br>**(Cost $260,758,391)** | **201735389** |

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| | | |
|:---|:---|:---|
| **SHORT-TERM INVESTMENTS** 8.0% OF NET ASSETS | **SHORT-TERM INVESTMENTS** 8.0% OF NET ASSETS | **SHORT-TERM INVESTMENTS** 8.0% OF NET ASSETS |
| **Money Market Funds 8.0%** | **Money Market Funds 8.0%** | **Money Market Funds 8.0%** |
| State Street Institutional U.S. Government <br> Money Market Fund, Premier Class <br> 3.60% *(b)*<br>| 275008 | 275008 |
| State Street Institutional U.S. Government <br> Money Market Fund, Premier Class <br> 3.60% *(b)(c)*<br>| 15855450 | 15855450 |
|  |  | **16130458** |
| **Total Short-Term Investments** <br>**(Cost $16,130,458)** | **Total Short-Term Investments** <br>**(Cost $16,130,458)** | **16130458** |
| **Total Investments in Securities** <br>**(Cost $276,888,849)** | **Total Investments in Securities** <br>**(Cost $276,888,849)** | **217865847** |

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| | | | |
|:---|:---|:---|:---|
|  | NUMBER OF<br> CONTRACTS<br>| NOTIONAL<br> AMOUNT<br> ($)<br>| CURRENT VALUE/ <br>UNREALIZED <br>APPRECIATION <br>($)<br>|
| **FUTURES CONTRACTS** | **FUTURES CONTRACTS** | **FUTURES CONTRACTS** | **FUTURES CONTRACTS** |
| **Long** |  |  |  |
| Russell 2000 Index, e-mini, <br> expires 06/18/26<br>| 3 | 376830 | **5030** |

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\* Non-income producing security.

*(a)* All or a portion of this security is on loan.

*(b)* The rate shown is the annualized 7-day yield.

*(c)* Security purchased with cash collateral received for securities on loan. Securities on loan were valued at $15,094,192. 

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ADR — American Depositary Receipt

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| | |
|:---|:---|
|  | % OF NET ASSETS |
| **INDUSTRY WEIGHTINGS *(a)*** | **INDUSTRY WEIGHTINGS *(a)*** |
| Software | 52.9<br> %<br>|
| Capital Markets | 31.5<br> %<br>|
| Interactive Media & Services | 4.8<br> %<br>|
| Financial Services | 3.9<br> %<br>|
| IT Services | 2.8<br> %<br>|
| Technology Hardware, Storage & Peripherals | 2.5<br> %<br>|
| Banks | 1.3<br> %<br>|
| Short-Term Investments | 8.0<br> %<br>|
| **Total** | **107.7%**<br>|

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

&nbsp;&nbsp;&nbsp;&nbsp;*(a)* Excludes derivatives.

*See financial notes*

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**3**

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Schwab Crypto Thematic ETF

Portfolio Holdings as of March 31, 2026 (continued)

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The following is a summary of the inputs used to value the fund's investments as of March 31, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| DESCRIPTION | QUOTED PRICES IN <br>ACTIVE MARKETS FOR <br>IDENTICAL ASSETS <br>(LEVEL 1)<br>| &nbsp;&nbsp; OTHER SIGNIFICANT <br>OBSERVABLE INPUTS <br>(LEVEL 2)<br>| &nbsp;&nbsp; SIGNIFICANT <br>UNOBSERVABLE INPUTS <br>(LEVEL 3)<br>| TOTAL |
| **<u>Assets</u>** |  |  |  |  |
| Common Stocks<sup>1</sup> <br>| $201735389 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $— | &nbsp;&nbsp; $201735389 |
| Short-Term Investments<sup>1</sup> <br>| 16130458 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 16130458 |
| Futures Contracts<sup>2</sup> <br>| 5030 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 5030 |
| **Total** | **$217870877** | &nbsp;&nbsp; **$—** | &nbsp;&nbsp; **$—** | &nbsp;&nbsp; **$217870877** |

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<sup>1</sup> As categorized in the Portfolio Holdings. <br> <sup>2</sup> Futures contracts are reported at cumulative unrealized appreciation or depreciation.

*See financial notes*

**4**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Statement of Assets and Liabilities

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As of March 31, 2026

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| | | |
|:---|:---|:---|
| **Assets** | **Assets** | **Assets** |
| Investments in securities, at value - unaffiliated issuers (cost $276,888,849) including securities on loan of $15,094,192 |  | $217865847 |
| Foreign currency, at value (cost $35,727) |  | 35552 |
| Deposit with broker for futures contracts |  | 85757 |
| Receivables: |  |  |
| Dividends |  | 119583 |
| Income from securities on loan |  | 17882 |
| Variation margin on future contracts |  | 12600 |
| Foreign tax reclaims | + | 289 |
| **Total assets** |  | **218137510** |
| **Liabilities** | **Liabilities** | **Liabilities** |
| Collateral held for securities on loan |  | 15855450 |
| Payables: |  |  |
| Management fees | + | 55572 |
| **Total liabilities** |  | **15911022** |
| **Net assets** |  | **$202226488** |
| **Net Assets by Source** | **Net Assets by Source** | **Net Assets by Source** |
| Capital received from investors |  | $288078911 |
| Total distributable loss | + | (85852423)<br>|
| **Net assets** |  | **$202226488** |

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| | | | | |
|:---|:---|:---|:---|:---|
| **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** |
| $202226488 |  | &nbsp;&nbsp;&nbsp;&nbsp; 3900000 |  | &nbsp;&nbsp;&nbsp;&nbsp; $51.85 |

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*See financial notes*

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**5**

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Schwab Crypto Thematic ETF

Statement of Operations

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| | | |
|:---|:---|:---|
| 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 - unaffiliated issuers (net of foreign withholding tax of $19,758) |  | $570058 |
| Other Interest |  | 1059 |
| Securities on loan, net | + | 489726 |
| **Total investment income**  |  | **1060843** |
| **Expenses** | **Expenses** | **Expenses** |
| Management fees |  | 631592 |
| **Total expenses** | – | **631592** |
| **Net investment income** |  | **429251** |
| **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** | **REALIZED AND UNREALIZED GAINS (LOSSES)** |
| Net realized losses on sales of securities - unaffiliated issuers  |  | (21310777)<br>|
| Net realized gains on sales of in-kind redemptions - unaffiliated issuers  |  | 63404044 |
| Net realized gains on futures contracts |  | 13553 |
| Net realized losses on foreign currency transactions | + | (165893)<br>|
| **Net realized gains** |  | **41940927** |
| Net change in unrealized appreciation (depreciation) on securities - unaffiliated issuers |  | (33009854)<br>|
| Net change in unrealized appreciation (depreciation) on futures contracts |  | 9591 |
| Net change in unrealized appreciation (depreciation) on foreign currency translations | + | (248)<br>|
| **Net change in unrealized appreciation (depreciation)** |  | **(33000511)**<br>|
| **Net realized and unrealized gains** |  | **8940416** |
| **Increase in net assets resulting from operations** |  | **$9369667** |

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*See financial notes*

**6**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Statement of Changes in Net Assets

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For the current and prior report periods

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| | | | |
|:---|:---|:---|:---|
| **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 |  | $429251 | &nbsp;&nbsp;&nbsp; $294736 |
| Net realized gains |  | 41940927 | &nbsp;&nbsp;&nbsp; 8061673 |
| Net change in unrealized appreciation (depreciation) | + | (33000511)<br>| &nbsp;&nbsp;&nbsp; (39502329)<br>|
| **Increase (decrease) in net assets resulting from operations** |  | **$9369667** | &nbsp;&nbsp;&nbsp; **($31145920)**<br>|
| **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** | **DISTRIBUTIONS TO SHAREHOLDERS** |
| **Total distributions** |  | **($4761460)**<br>| &nbsp;&nbsp;&nbsp; **($555680)**<br>|

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **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 |  | 3150000 | &nbsp;&nbsp;&nbsp; $234387387 | &nbsp;&nbsp;&nbsp; 1950000 | &nbsp;&nbsp;&nbsp; $91514469 |
| Shares redeemed | + | (1850000)<br>| &nbsp;&nbsp;&nbsp; (121633110)<br>| &nbsp;&nbsp;&nbsp; (300000)<br>| &nbsp;&nbsp;&nbsp; (12907800)<br>|
| **Net transactions in fund shares**  |  | **1300000** | &nbsp;&nbsp;&nbsp; **$112754277** | &nbsp;&nbsp;&nbsp; **1650000** | &nbsp;&nbsp;&nbsp; **$78606669** |
| **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 |  | 2600000 | &nbsp;&nbsp;&nbsp; $84864004 | &nbsp;&nbsp;&nbsp; 950000 | &nbsp;&nbsp;&nbsp; $37958935 |
| Total increase | + | 1300000 | &nbsp;&nbsp;&nbsp; 117362484 | &nbsp;&nbsp;&nbsp; 1650000 | &nbsp;&nbsp;&nbsp; 46905069 |
| **End of period** |  | **3900000** | &nbsp;&nbsp;&nbsp; **$202226488** | &nbsp;&nbsp;&nbsp; **2600000** | &nbsp;&nbsp;&nbsp; **$84864004** |

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*See financial notes*

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**7**

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Schwab Crypto Thematic ETF

Financial Notes

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Business Structure of the Fund:**

The fund in this report is a series of Schwab Strategic Trust (the trust), a no-load, open-end management investment company. The trust is organized as a Delaware statutory 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 fund discussed in this report, which is highlighted:

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| | |
|:---|:---|
| **SCHWAB STRATEGIC TRUST**  | **SCHWAB STRATEGIC TRUST**  |
| **Schwab Crypto Thematic ETF** | Schwab U.S. TIPS ETF |
| Schwab U.S. REIT ETF | Schwab Short-Term U.S. Treasury ETF |
| Schwab 1000 Index<sup>®</sup> ETF | Schwab Intermediate-Term U.S. Treasury ETF |
| Schwab U.S. Broad Market ETF | Schwab Long-Term U.S. Treasury ETF |
| Schwab U.S. Large-Cap ETF | Schwab U.S. Aggregate Bond ETF |
| Schwab U.S. Large-Cap Growth ETF | Schwab 1-5 Year Corporate Bond ETF |
| Schwab U.S. Large-Cap Value ETF | Schwab 5-10Year Corporate Bond ETF |
| Schwab U.S. Mid-Cap ETF | Schwab Fundamental U.S. Broad Market ETF |
| Schwab U.S. Small-Cap ETF | Schwab Fundamental U.S. Large Company ETF |
| Schwab U.S. Dividend Equity ETF | Schwab Fundamental U.S. Small Company ETF |
| Schwab International Dividend Equity ETF | Schwab Fundamental International Equity ETF |
| Schwab International Equity ETF | Schwab Fundamental International Small Equity ETF |
| Schwab International Small-Cap Equity ETF | Schwab Fundamental Emerging Markets Equity ETF |
| Schwab Emerging Markets Equity ETF | Schwab Ariel Opportunities ETF |
| Schwab Ultra-Short Income ETF | Schwab Government Money Market ETF |
| Schwab Municipal Bond ETF | Schwab Mortgage-Backed Securities ETF |
| Schwab Core Bond ETF | Schwab High Yield Bond ETF |

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The fund issues and redeems shares at its net asset value per share only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the fund are not redeemable securities.

Individual shares of the fund trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than net asset value, shares may trade at a price greater than net asset value (premium) or less than net asset value (discount). A chart showing the frequency at which the fund's daily closing market price was at a discount or premium to the fund's net asset value can be found at www.schwabassetmanagement.com.

The fund maintains its own account for purposes of holding assets and accounting, and is considered a separate entity for tax purposes. Within its account, the 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.

**Investment Objective** 

The **Schwab Crypto Thematic ETF's** goal is to track as closely as possible, before fees and expenses, the total return of an index that is designed to deliver global exposure to companies that may benefit from development or utilization of cryptocurrencies (including bitcoin) and other digital assets, and the business activities connected to blockchain and other distributed ledger technology. To pursue its goal, the fund generally invests in stocks that are included in the Schwab Crypto Thematic Index<sup>®</sup>. The Schwab Crypto Thematic ETF will not invest in any cryptocurrency or digital assets directly.

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**2. Significant Accounting Policies:**

The following is a summary of the significant accounting policies the fund uses in its preparation of financial statements. The fund follows 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).

**8**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**2. Significant Accounting Policies (continued):** 

During this reporting period, the fund adopted FASB Accounting Standards Update 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which enhances income tax disclosures, including disclosure of income taxes paid disaggregated by jurisdiction. The adoption of ASU 2023-09 did not result in any material changes to the fund's financial statement presentation or disclosure.

The fund may invest in mutual funds and exchange-traded funds, which are referred to as "underlying funds." 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 fund's 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 the fund's portfolio are valued every business day. The following valuation policies and procedures are used by the Valuation Designee to value various types of securities:

&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. Securities that are primarily traded on foreign exchanges are valued at the official closing price or the last sales price on the exchange where the securities are principally traded with these values then translated into U.S. dollars at the current exchange rate, unless these securities are fair valued as discussed below.

&nbsp;&nbsp;&nbsp;&nbsp;● **Futures contracts:** Futures contracts are valued at their settlement prices as of the close of their exchanges.

&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 the fund's securities when market prices are not "readily available" or are unreliable. For example, a security may be fair valued when it's de-listed or its trading is halted or suspended; when a security's primary pricing source is unable or unwilling to provide a price; or when a security's primary trading market is closed during regular market hours. Fair value determinations are made in good faith in accordance with adopted valuation procedures. The Valuation Designee considers a number of factors, including unobservable market inputs, when arriving at fair value. The Valuation Designee may employ methods such as the review of related or comparable assets or liabilities, related market activities, recent transactions, market multiples, book values, transactional back-testing, disposition analysis and other relevant information. Due to the subjective and variable nature of fair value pricing, there can be no assurance that the fund could obtain the fair value assigned to the security upon the sale of such security.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the fund discloses the fair value of its investments in a hierarchy that prioritizes the significant inputs to valuation methods used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). If inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the valuation. If it is determined that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and the Valuation Designee's judgment will be required to estimate fair value.

The three levels of the fair value hierarchy are as follows:

&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.

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**9**

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**2. Significant Accounting Policies (continued):** 

&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. In the event that international securities whose foreign exchanges have halted or suspended trading prior to the normal exchange close, the Valuation Designee may fair value securities whose prices may have been affected by those events. The Valuation Designee seeks to establish prices that investors might expect to realize upon the current sales of these securities.

&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 methods are used for which sufficient and reliable data is available. The inputs used in estimating the value of Level 3 prices may include the original transaction price, quoted prices for similar securities or assets in active markets, completed or pending third-party transactions in the underlying investment or comparable issuers, and changes in financial ratios or cash flows. Level 3 prices may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated in the absence of market information. Assumptions used due to the lack of observable inputs may significantly impact the resulting fair value and therefore the fund's results of operations.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The levels associated with valuing the fund's investments are disclosed in the fund's Portfolio Holdings.

**(b) Accounting Policies for certain Portfolio Investments (if held):**

**Futures Contracts:** Futures contracts are instruments that represent an agreement between two parties that obligates one party to buy, and the other party to sell, specific instruments at an agreed upon price on a stipulated future date. The fund must give the broker a deposit of cash and/or securities (initial margin) whenever it enters into a futures contract. The amount of the deposit may vary from one contract to another. Subsequent payments (variation margin) are made or received by the fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized appreciation or depreciation until the contract is closed, at which time the gains or losses are realized. Futures contracts are traded publicly on exchanges, and their value may change daily.

**Securities Lending:** Under the trust's Securities Lending Program, the fund (lender) may make short-term loans of its securities to another party (borrower) to generate additional revenue for the fund. The borrower pledges collateral in the form of cash, securities issued or fully guaranteed by the U.S. government or foreign governments, or letters of credit issued by a bank. Collateral at the individual loan level is required to be maintained on a daily marked-to-market basis in an amount at least equal to the current value of the securities loaned. The lending agent provides the fund with indemnification against borrower default (the borrower fails to return the security on loan) reducing the risk of loss as a result of default. The cash collateral of securities loaned is currently invested in money market portfolios operating pursuant to Rule 2a-7 under the 1940 Act. The fund bears the risk of loss with respect to the investment of cash collateral. The terms of the securities lending agreement allow the fund or the lending agent to terminate any loan at any given time and the securities must be returned within the earlier of the standard trade settlement period or the specified time period under the relevant securities lending agreement. Securities lending income, as disclosed in the fund's Statement of Operations, if applicable, represents the income earned from the investment of the cash collateral plus any fees paid by borrowers, less the fees paid to the lending agent and broker rebates which are subject to adjustments pursuant to the securities lending agreement. On loans not collateralized by cash, a fee is received from the borrower, and is allocated between the fund and the lending agent. The aggregate market value of securities loaned will not at any time exceed one-third of the total assets of the fund, including collateral received from the loan. Securities lending fees paid to the unaffiliated lending agent start at 9% of gross lending revenue, with subsequent breakpoints to a low of 5%. In this context, the gross lending revenue equals the income received from the investment of cash collateral and fees paid by borrowers less any rebates paid to the borrowers. Any expenses charged by the cash collateral fund are in addition to these fees. All remaining revenue is retained by the fund, as applicable. No portion of lending revenue is paid to or retained by the investment adviser or any of its affiliates.

As of March 31, 2026, the fund had securities on loan, all of which were classified as common stocks. The value of securities on loan and the related collateral as of March 31, 2026, are disclosed in the fund's Portfolio Holdings and Statement of Assets and Liabilities.

**10**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**2. Significant Accounting Policies (continued):** 

**Passive Foreign Investment Companies:** The fund may own shares in certain foreign corporations that meet the Internal Revenue Code, as amended, definition of a Passive Foreign Investment Company (PFIC). The fund may elect for tax purposes to mark-to-market annually the shares of each PFIC lot held and would be required to distribute as ordinary income to shareholders any such marked-to-market gains (as well as any gains realized on sale).

**Central Securities Depositories Regulation**: The Central Securities Depositories Regulation (CSDR) introduced measures for the authorization and supervision of European Union Central Security Depositories and created a common set of prudential, organizational, and conduct of business standards at a European level. CSDR is designed to support securities settlement and operational aspects of securities settlement, including the provision of shorter settlement periods; mandatory buy-ins; and cash penalties, to prevent and address settlement fails. CSDR measures are aimed to prevent settlement fails by ensuring that all transaction details are provided to facilitate settlement, as well as further incentivizing timely settlement by imposing cash penalty fines and buy-ins. The fund may be subject to pay cash penalties and may also receive cash penalties with certain counterparties in instances where there are settlement fails. These cash penalties are included in net realized gains (losses) on sales of securities - unaffiliated issuers in the fund's Statement of Operations, if any.

**(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.

Assets and liabilities denominated in foreign currencies are reported in U.S. dollars. For assets and liabilities held on a given date, the dollar value is based on market exchange rates in effect on that date. Transactions involving foreign currencies, including purchases, sales, income receipts and expense payments, are calculated using exchange rates in effect on the transaction date. Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the differences between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange appreciation or depreciation arises from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period. These realized and unrealized foreign exchange gains or losses are reported in foreign currency transactions or translations, if any, in the fund's Statement of Operations. The fund does not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments, if any.

Gains realized by the fund on the sale of securities in certain foreign countries may be subject to non-U.S. taxes. In those instances, the fund records a liability based on unrealized appreciation to provide for potential non-U.S. taxes payable upon the sale of these securities. These capital gain taxes, if any, are paid by the fund and are disclosed in the fund's Statement of Operations in Net realized gain (losses) on securities — unaffiliated issuers (net of foreign capital gains tax paid). Foreign capital gain taxes accrued as of March 31, 2026, if any, are reflected in the fund's Statement of Assets and Liabilities.

When the fund closes out a futures contract position, it calculates the difference between the value of the position at the beginning and at the end of the contract, and records a realized gain or loss accordingly.

**(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), although the fund records certain foreign security dividends on the date the ex-dividend date is confirmed. Non-cash dividends in the form of additional securities are recorded on the ex-dividend date at fair value, if any. Any distributions from underlying funds are recorded in accordance with the character of the distributions as designated by the underlying funds.

Income received from foreign sources may result in withholding tax. Withholding taxes are accrued at the same time as the related income if the tax rate is fixed and known, unless a tax withheld is reclaimable from the local tax authorities and there are no significant uncertainties on collectibility in which case it is recorded as receivable. If the tax rate is not known or estimable, such expense or reclaim receivable is recorded when the net proceeds are received. Foreign withholding tax expensed during the period, if any, is disclosed in Dividends received from securities — unaffiliated issuers (net of foreign withholding tax) in the Statement of Operations and is representative of taxes paid during the period.

**(e) Expenses:**

Pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust, the investment adviser pays the operating expenses of the fund, excluding acquired fund fees and expenses, taxes, any brokerage expenses, and

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**11**

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**2. Significant Accounting Policies (continued):** 

extraordinary or non-routine expenses. Taxes, any brokerage expenses and extraordinary or non-routine expenses that are specific to the fund are charged directly to the fund. Acquired fund fees and expenses are indirect expenses incurred by a fund through its investments in underlying funds and are reflected in the net asset values of the underlying funds.

**(f) Distributions to Shareholders:**

The fund makes distributions from net investment income, if any, semiannually and from 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 fund intends to meet federal income and excise tax requirements for regulated investment companies under subchapter M of the Internal Revenue Code, as amended. Accordingly, the fund distributes substantially all of its net investment income and net realized capital gains, if any, to its shareholders each year. As long as the fund meets the tax requirements, it is not required to pay federal income tax. The fund did not pay any federal taxes during the period.

**(i) Foreign Taxes:**

The fund may be subject to foreign taxes (a portion of which may be reclaimable) on investment income, corporate events, foreign currency exchanges and capital gains on investments. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in foreign markets in which the fund invests. These foreign taxes, if any, are paid by the fund and are disclosed in the fund's Statement of Operations and Statement of Assets and Liabilities.

**(j) 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.

The management committee of the fund's investment adviser acts as the fund's CODM. The CODM has determined that the fund operates as a single operating segment given the fund has a single defined investment strategy disclosed in its respective prospectus. The discrete financial information in the form of the 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 fund, is presented within the fund's financial statements.

**(k) Indemnification:**

Under the fund's organizational documents, the officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the fund. In addition, in the normal course of business the fund enters into contracts with its vendors and others that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the fund. However, based on experience, the fund expects 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 the fund's investment adviser pursuant to the Amended and Restated Advisory Agreement between the investment adviser and the trust.

**12**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**3. Affiliates and Affiliated Transactions (continued):** 

For its advisory services to the fund, the investment adviser is entitled to receive an annual fee, payable monthly, equal to 0.30% of the fund's average daily net assets.

**Interfund Transactions**

The fund 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 are recorded in Net realized gains (losses) on sales of securities — unaffiliated issuers in the Statement of Operations. For the period ended March 31, 2026, the fund's purchases and sales of securities with other funds in the Schwab Funds Complex was $6,298,678 and $29,950,920, respectively, and includes net realized losses of $443,218.

**Interfund Borrowing and Lending**

Pursuant to an exemptive order issued by the SEC, the fund 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 fund had no interfund borrowing or lending activity during the period.

------

**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 fund 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 the fund which includes trustee fees.

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**5. Borrowing from Banks:**

During the period, the fund was a participant 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 the fund, the investment adviser paid a commitment fee of 0.15% per annum on the fund's proportionate share of the unused portion of the Syndicated Credit Facility.

During the period, the fund was a participant 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 the fund borrows. There were no borrowings by the fund from either line of credit during the period.

The fund also has access to custodian overdraft facilities. The 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. Derivatives:**

The fund entered into futures contracts during the report period to equitize available cash.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**13**

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**6. Derivatives (continued):** 

As of March 31, 2026, the Statement of Assets and Liabilities included the following financial derivative instrument fair values held at period end:

---

| | | |
|:---|:---|:---|
|  | EQUITY CONTRACTS | TOTAL |
| Futures Contracts<sup>1</sup> <br>| $5030 | &nbsp;&nbsp; $5030 |

---

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

<br> <sup>1</sup> Includes cumulative unrealized appreciation of futures contracts as reported in the fund's Portfolio Holdings. Only current day's variation margin on futures contracts is reported in the Statement of Assets and Liabilities.

The effects of the derivative contracts in the Statement of Operations for the period ended March 31, 2026, were:

---

| | | |
|:---|:---|:---|
|  | EQUITY CONTRACTS | TOTAL |
| **Net Realized Gains (Losses)** |  |  |
| Futures Contracts<sup>1</sup> <br>| $13553 | &nbsp;&nbsp; $13553 |
| **Net Change in Unrealized Appreciation (Depreciation)** |  |  |
| Futures Contracts<sup>2</sup> <br>| $9591 | &nbsp;&nbsp; $9591 |

---

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

<br> <sup>1</sup> Statement of Operations location: Net realized gains (losses) on futures contracts. <br> <sup>2</sup> Statement of Operations location: Net change in unrealized appreciation (depreciation) on futures contracts.

During the period ended March 31, 2026, the month-end average notional amounts of futures contracts held by the fund and the month-end average number of contracts held were as follows:

---

| | |
|:---|:---|
| NOTIONAL AMOUNT | NUMBER OF CONTRACTS |
| $246128 | 2 |

---

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**7. Purchases and Sales of Investment Securities:**

For the period ended March 31, 2026, purchases and sales of securities (excluding in-kind transactions and short-term obligations) were as follows:

---

| | |
|:---|:---|
| PURCHASES <br>OF SECURITIES <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SALES <br>OF SECURITIES<br>|
| $126789959 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $132286462 |

---

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**8. In-Kind Transactions:**

The consideration for the purchase of Creation Units of the fund consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the securities involved in the fund's underlying index, and an amount of cash. Investors purchasing and redeeming Creation Units are subject to a standard creation transaction fee and a standard redemption transaction fee paid to the custodian to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Purchasers and redeemers of Creation Units for cash are subject to an additional variable charge paid to the fund that will offset the transaction costs to the fund of buying or selling portfolio securities. Variable charges are recorded in the Transactions In Fund Shares section in the Statement of Changes in Net Assets and generally have no effect on the net asset value per share. In addition, purchasers and redeemers of shares in Creation Units are responsible for payment of the costs of transferring securities to or out of the fund. From time to time, the investment adviser may cover the cost of any transaction fees when believed to be in the best interests of the fund.

The in-kind transactions for the period ended March 31, 2026, were as follows:

---

| | |
|:---|:---|
| IN-KIND PURCHASES <br>OF SECURITIES <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN-KIND SALES <br>OF SECURITIES<br>|
| $233596104 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $119745135 |

---

**14**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**8. In-Kind Transactions:** (continued):

For the period ended March 31, 2026, the fund may realize net capital gains or losses resulting from in-kind redemptions of Creation Units. Because such gains or losses are not taxable to the fund and are not distributed to existing fund shareholders, the gains or losses are reclassified from accumulated net realized gains or losses to capital received from investors at the end of the fund's tax year. These reclassifications have no effect on net assets or net asset value. The net realized gains or losses on sales of in-kind redemptions for the period ended March 31, 2026, if any, are disclosed in the fund's Statement of Operations.

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**9. Federal Income Taxes:**

As of March 31, 2026, the tax basis cost of the fund's 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>|
| &nbsp;&nbsp; $280175533 | &nbsp;&nbsp; $14293901 | &nbsp;&nbsp; ($76598557)<br>| &nbsp;&nbsp; ($62304656)<br>|

---

The primary differences between book basis and tax basis unrealized appreciation or unrealized depreciation of investments are the tax deferral of losses on wash sales, the realization for tax purposes of unrealized appreciation or depreciation on futures contracts and the realization for tax purposes of unrealized appreciation on investments in PFICs. The tax cost of the fund's investments, disclosed above, have been adjusted from its 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:

---

| | | | |
|:---|:---|:---|:---|
| NET UNREALIZED <br>APPRECIATION <br>(DEPRECIATION) <br>ON INVESTMENTS <br>| &nbsp;&nbsp; NET OTHER UNREALIZED <br>APPRECIATION <br>&nbsp;&nbsp;&nbsp;&nbsp;(DEPRECIATION) <br>| &nbsp;&nbsp; CAPITAL LOSS <br>CARRYFORWARDS AND OTHER LOSSES<br>| TOTAL  |
| ($62304656)<br>| &nbsp;&nbsp;&nbsp; $126 | &nbsp;&nbsp;&nbsp; ($23547893)<br>| &nbsp;&nbsp;&nbsp; ($85852423)<br>|

---

Capital loss carryforwards have no expiration and may be used to offset future realized capital gains for federal income tax purposes. As of March 31, 2026, the fund had capital loss carryforwards of $19,304,904.

For tax purposes, late-year ordinary losses may be deferred and treated as occurring on the first day of the following fiscal year. For the fiscal year ended March 31, 2026, the fund had late-year ordinary losses deferred of $4,242,989.

The tax basis components of distributions paid during the current and prior fiscal years were as follows:

---

| | |
|:---|:---|
| CURRENT FISCAL YEAR END DISTRIBUTIONS | PRIOR FISCAL YEAR END DISTRIBUTIONS |
| ORDINARY <br>INCOME<br>| ORDINARY <br>INCOME <br>|
| $4761460 | &nbsp;&nbsp; $555680 |

---

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 fund 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 fund, and has determined that no provision for income tax is required in the fund's financial statements. During the fiscal year ended March 31, 2026, the fund did not incur any interest or penalties.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**15**

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Schwab Crypto Thematic ETF

Financial Notes (continued)

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

**10. 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.

**16**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

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Schwab Crypto Thematic ETF

Report of Independent Registered Public Accounting Firm

------

To the Board of Trustees of Schwab Strategic Trust and Shareholders of Schwab Crypto Thematic ETF:

***Opinion on the Financial Statements and Financial Highlights***

We have audited the accompanying statement of assets and liabilities, including the portfolio holdings, of Schwab Crypto Thematic ETF (the "Fund"), one of the Funds constituting Schwab Strategic Trust, as of March 31, 2026, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period ended, the financial highlights for each of the three years in the period then ended and for the period from August 4, 2022 (commencement of operations) through March 31, 2023, 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 the Fund as of March 31, 2026, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from August 4, 2022 (commencement of operations) through March 31, 2023, 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 Fund's management. Our responsibility is to express an opinion on the Fund's 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 Fund 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 Fund is not required to have, nor were we engaged to perform, an audit of its 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 Fund's 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 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 the Schwab Funds Complex since 2020.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**17**

------

Changes in and Disagreements with Accountants for Open-End Management Investment Companies

------

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

Not applicable.

**18**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

------

Proxy Disclosures for Open-End Management Investment Companies

------

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

Not applicable.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**19**

------

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).

**20**Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

------

Statement Regarding Basis for Approval of Investment Advisory Contract

------

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

Not applicable.

Schwab Crypto Thematic ETF \| Annual Holdings and Financial Statements

**21**

------

![(CHARLES SCHWAB ASSET MANAGMENT LOGO)](g449869imga32500b61.jpg)

MFR120705-03

00324204

------

#### 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.](d151036dex99codeeth.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.](d151036dex99cert.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.](d151036dex99906cert.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 Strategic Trust – Schwab Ariel Opportunities ETF and Schwab Crypto Thematic ETF</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; • 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 Standards** | &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.

------

**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.

------

**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

• Read and be familiar with conduct rules outlined in the Code, and periodically review them.

• Affirm in writing to the Trustees that you have received, read and understand the Code.

• Annually affirm to the Trustees that you have complied with the requirements of the Code.

• Comply with the conduct standards outlined in this Code in all dealings and actions, including those with
shareholders, the public, and vendors.

• 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.

------

**Code of Business Conduct and Ethics for Principal Executive and Senior Financial Officers (F/B)** 

• 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.

• Raise questions or concerns about conduct issues with your supervisor, the Chief Legal Officer or Chief
Compliance Officer, and seek advice when in doubt.

• Cooperate with management during fact-finding investigations and comply with any confidentiality rules imposed.

B. CHIEF COMPLIANCE OFFICER

• 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.

• 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

• 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.

---

| | |
|:---|:---|
| **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 |

---

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 Strategic Trust: Schwab Ariel Opportunities ETF and Schwab Crypto Thematic ETF;

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 disclosures 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.

---

| | |
|:---|:---|
| Date: May 15, 2026 | /s/ Omar Aguilar |
|  | Omar Aguilar<br> Principal Executive Officer (Chief Executive Officer) |

---

------

**<u>CERTIFICATIONS</u>** 

I, Dana Smith, certify that:

1. I have reviewed this report on Form N-CSR for the following series of Schwab Strategic Trust: Schwab Ariel Opportunities ETF and Schwab Crypto Thematic ETF;

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 disclosures 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 Strategic Trust – Schwab Ariel Opportunities ETF and Schwab Crypto Thematic ETF (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) |  |
| /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.