Quadratic Capital Management LLC

2. Key Holdings

The portfolio is dominated almost entirely by a single position:

• SCHP (Schwab Strategic Trust): This is the portfolio's cornerstone, representing 98.19% of the total value ($384.08 million). SCHP is the Schwab U.S. TIPS ETF, which tracks the Bloomberg U.S. Treasury Inflation-Protected Securities Index. The holding consists of 14.50 million shares and was established as a new position during the quarter. This massive allocation implies a strong conviction regarding inflation protection or interest rate duration management.
• VANGUARD SCOTTSDALE FDS: The secondary holding accounts for the remaining 1.81% ($7.08 million). While the specific fund series is not detailed in the ticker, the position size increased by 19.8% during the quarter (an addition of $1.06 million). This appears to be a legacy or satellite holding compared to the dominant SCHP position.

3. Sector Allocation

The sector allocation of the portfolio is highly singular and defensive:

• Fixed Income / ETF (98.19%): Nearly the entire portfolio is allocated to SCHP. Technically classified as an ETF, SCHP’s underlying assets are U.S. Treasury Inflation-Protected Securities (TIPS). This exposes the portfolio almost exclusively to U.S. government credit risk and inflation expectations. There is negligible exposure to equities, corporate credit, or international markets.
• Unknown (1.81%): The Vanguard allocation remains categorized as unknown due to limited ticker detail, but given the firm's pivot to fixed income via SCHP, it is likely a fixed-income or money market vehicle used for liquidity or relative value trades.