N-CSR

Annual Report |

August 31, 2024

Schwab International Dividend Equity ETF

Ticker Symbol: SCHY

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

This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,

2024.

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 othe

r i

nformation about the fund are available from your financial intermediary.

FUND COSTS FOR THE LAST year ENDED August 31, 2024

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

	COSTS OF A $10,000 INVESTMENT	COSTS PAID AS A PERCENTAGE OF A $10,000 INVESTMENT
Schwab International Dividend Equity ETF	$15	0.14%

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 15.53% and its NAV return was

15.55% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE

Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%

The fund generally invests in securities that are included in the Dow Jones International Dividend 100 Index (Net) which returned

15.81%

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 Dow Jones International Dividend 100 Index (Net) 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:

■

Indonesian securities, including Class B holdings of Telkom Indonesia Persero Tbk. PT

■

Brazilian securities

Top contributors to total return:

■

Securities from the United King

m, including Unilever PLC

■

Japanese securities

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 International Dividend Equity ETF | Annual

Report

REG125422-00 00303698

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value of an investment will

fluct

uate 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.

o obtain performance information

current to the most recent month end, please visit

www.schwabassetmanagement.com/prospectu

Performance of Hypothetical $10,000 Investment (April 29, 2021 - August 31, 2024)

1,2

Average Annual Total Returns

Fund and Inception Date	1 Year	Since Inception*
Fund: Schwab International Dividend Equity ETF (04/29/2021)
Market Price Return 3	15.53%	4.76%
NAV Return 2,3	15.55%	4.81%
MSCI EAFE ® Index (Net) 4,5	19.40%	4.82%
Dow Jones International Dividend 100 Index (Net) 4	15.81%	4.90%

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.

International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from

economic or political instability in other nations.

Emerging markets involve heightened risks related to the same factors as international investing, as well as increased volatility and lower trading volume.

The fund may underperform other funds that do not limit their investment to dividend paying stocks. Stocks held by the fund may reduce or stop paying dividends, affecting

the fund’s ability to generate income. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.

Index ownership — Dow Jones

is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). The Dow Jones International Dividend 100 Index is a product of

S&P Dow Jones Indices LLC and/or its affiliates, and has been licensed for use by Charles Schwab Investment Management, Inc., dba Schwab Asset Management. The

Schwab International Dividend Equity ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, or any of their respective affiliates and

neither S&P Dow Jones Indices LLC, Dow Jones, nor any of their respective affiliates make any representation regarding the advisability of investing in such product.

Inception (04/29/2021) 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.

The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.

ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking

the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on

the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined

using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded

at other times. NAV is used as a proxy for purposes of calculating Market Price Return on inception date. Market Price and NAV returns assume that dividends and capital

gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

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

In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the Dow Jones International Dividend 100 Index (Net) to the MSCI EAFE

ndex

(Net). The MSCI EAFE

Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the Dow Jones

Internatio

nal

Dividend 100 Index (Net). The fund does not seek to track the regulatory index.

Schwab International Dividend Equity ETF | Annual Report

Statistics

Net Assets (thousands)	$781,450
Number of Holdings (excludes derivatives)	103
Portfolio Turnover Rate (excludes in-kind transactions)	59%
Advisory Fees Paid by the Fund	$1,075,143
Weighted Average Market Cap (millions)	$73,588
Price/Earnings Ratio (P/E)	13.8
Price/Book Ratio (P/B)	2.0
Foreign Tax Paid and Passed Through	$ 3,085,318
Gross Income from Foreign Sources	$ 36,008,599
Qualified Dividend Income	$ 38,102,871

Sector Weightings % of Investments

Top Equity Holdings % of Net Assets

Country Weightings % of Investments

Portfolio holdings may have changed since the report date.

An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not

inclusive

trading and management costs incurred by the fund.

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.

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

Schwab International Dividend Equity 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

Schwab International Dividend Equity ETF | Annual Report

Annual Report |

August 31, 2024

Schwab International Equity ETF

Ticker Symbol: SCHF

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

This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31, 2024.

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 oth

er i

nformation about the fund are available from your financial intermediary.

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

FUND COSTS FOR THE LAST year ENDED August 31, 2024

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

	COSTS OF A $10,000 INVESTMENT	COSTS PAID AS A PERCENTAGE OF A $10,000 INVESTMENT
Schwab International Equity ETF	$6	0.06%

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 19.03% and its NAV return was

18.90% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE

Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%

The fund generally invests in securities that are included in the FTSE Developed ex US Index (Net) which returned 18.72%

during

the same period. The fund does not seek to track the regulatory index.

Top contributors to total return:

■

Japanese securities, including Hitachi Ltd.

■

Securities from the United Kingdom

Top detractors from total return:

■

Securities from Hong Kong, including AIA Group Ltd.

■

While there were no additional markets that detracted from the total return of the fund, Portuguese securities were the smallest

contributors to total return

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 International Equity ETF | Annual Report

REG125423-00 00303699

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 31, 2014 -

August 31,

2024)

1,2

Average Annual Total Returns

Fund and Inception Date	1 Year	5 Years	10 Years
Fund: Schwab International Equity ETF (11/03/2009)
Market Price Return 3	19.03%	8.81%	5.24%
NAV Return 2,3	18.90%	8.83%	5.25%
MSCI EAFE ® Index (Net) 4,5	19.40%	8.61%	5.20%
FTSE Developed ex US Index (Net) 4	18.72%	8.68%	5.13%

All total returns on this page assume dividends and distributions were reinvested. Index figures do not include trading and management costs, which would lower

performance. Indices are unmanaged and cannot be invested in directly. Performance results less than one year are not annualized.

For index definitions, please see 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.

International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from

economic or political instability in other nations.

Index ownership — FTSE is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the fund under license. The Schwab International Equity ETF is

not sponsored, endorsed, sold or promoted by FTSE nor LSEG and neither FTSE nor LSEG makes any representation regarding the advisability of investing in shares of the

fund. Fees payable under the license are paid by the investment adviser.

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.

The fund’s performance relative to the index may be affected by fair-value pricing and timing differences in foreign exchange calculations.

ETF performance must be shown based on both a market price and NAV basis. The fund’s per share NAV is the value of one share of the fund. NAV is calculated by taking

the fund’s total assets (including the fair value of securities owned), subtracting liabilities, and dividing by the number of shares outstanding. The NAV Return is based on

the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. The price used to calculate market return (Market Price) is determined

using the Official Closing Price on the primary stock exchange (generally, 4:00 p.m. Eastern time) and may not represent the returns you would receive if shares were traded

at other times. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.

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

In anticipation of new regulatory requirements, the fund’s regulatory index has changed from the FTSE Developed ex US Index (Net) to the MSCI EAFE

Index (Net).

The

MSCI EAFE

Index (Net) provides a broad measure of market performance. The fund generally invests in securities that are included in the FTSE Developed ex US In

dex

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

index.

Schwab International Equity ETF | Annual Report

Statistics

Net Assets (millions)	$41,540
Number of Holdings (excludes derivatives)	1,494
Portfolio Turnover Rate (excludes in-kind transactions)	4%
Advisory Fees Paid by the Fund	$21,190,378
Weighted Average Market Cap (millions)	$94,770
Price/Earnings Ratio (P/E)	16.2
Price/Book Ratio (P/B)	1.8
Foreign Tax Paid and Passed Through	$87,226,921
Gross Income from Foreign Sources	$1,118,231,522
Qualified Dividend Income	$ 878,411,686

Sector Weightings % of Investments

Top Equity Holdings % of Net Assets

Country Weightings % of Investments

Portfolio holdings may have changed since the report date.

An index is a statistical composite of a specified financial market or sector. Unlike the fund, an index does not actually hold a portfolio of securities and its return is not

inclusive

trading and management costs incurred by the fund.

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.

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

Schwab International Equity ETF | Annual Report

FUND CHANGES

This is a summary of certain changes to the fund since September 1, 2023. For more complete information, you may review the fund’s

Annual Holdings and Financial Statements

www.schwabassetmanagement.com/prospectus

or upon request by calling

1-866-414-6349

or by sending

an email request to

orders@mysummaryprospectus.com

■

On September 25, 2024, the Board of Trustees authorized a 2-for-1 share split for the fund, which applied to shareholders of

record as of the close of U.S. markets on October 9, 2024. Certain of the fund’s financial statements were retroactively adjusted for

the period ended August 31, 2024, and all prior periods, to reflect the share split.

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

www.sec.gov

, by calling

1-866-414-6349

, or by sending an email request to

orders@mysummaryprospectus.com

Schwab International Equity ETF | Annual Report

Annual Report |

August 31, 2024

Schwab International Small-Cap Equity ETF

Ticker Symbol: SCHC

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

This annual shareholder report contains important information about the fund for the period of September 1, 2023, to August 31,

2024.

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.

FUND COSTS FOR THE LAST year ENDED August 31, 2024

(BASED ON A HYPOTHETICAL $10,000 INVESTMENT)

	COSTS OF A $10,000 INVESTMENT	COSTS PAID AS A PERCENTAGE OF A $10,000 INVESTMENT
Schwab International Small-Cap Equity ETF	$12	0.11%

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

For the 12-month reporting period ended August 31, 2024, the fund’s market price return was 14.12% and its NAV return was

14.46% (for an explanation of the market price and NAV returns, please refer to footnote 3 on the following page). The MSCI EAFE

Index (Net), which serves at the fund’s regulatory index and provides a broad measure of market performance, returned 19.40%

The fund generally invests in securities that are included in the FTSE Developed Small Cap ex US Liquid Index (Net) which returned

14.29%

during the same period. The fund does not seek to track the regulatory index.

Top contributors to total return:

■

Securities from the United Kingdom, including Vistry Group

PLC

■

Canadian securities

Top detractors from total return:

■

South Korean securities, including Ecopro Co

Ltd.

■

German securities

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 ta

xes.

Schwab International Small-Cap Equity ETF | Annual Report

REG125424-00 00303700

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

To obtain performance information

current to the most recent month end, please visit

www.schwabassetmanagement.com/prospectus

Performance of Hypothetical $10,000 Investment (August 31, 2014 - August 31, 2024)

1,2

Average Annual Total Returns

Fund and Inception Date	1 Year	5 Years	10 Yea rs
Fund: Schwab International Small-Cap Equity ETF (01/14/2010)
Market Price Return 3	14.12%	6.54%	3.79%
NAV Return 2,3	14.46%	6.63%	3.87%
MSCI EAFE ® Index (Net) 4,5	19.40%	8.61%	5.20%
FTSE Developed Small Cap ex US Liquid Index (Net) 4	14.29%	6.48%	3.71%

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.

International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from

economic or political instability in other nations.

Small-company stocks may be subject to greater volatility than many other asset classes.

Index ownership — FTSE is a trademark of the London Stock Exchange Group companies (LSEG) and is used by the fund under license. The Schwab International Small-Cap

Equity ETF is not sponsored, endorsed, sold or promoted by FTSE nor LSEG and neither FTSE nor LSEG makes any representation regarding the advisability of investing in

shares of the fund. Fees payable under the license are paid by the investment adviser.