Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the ALPS OShares U.S. Quality Dividend ETF (OUSA Quick QuoteOUSA - Free Report) , a passively managed exchange traded fund launched on July 14, 2015.

The fund is sponsored by Alps. It has amassed assets over $729.42 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.48%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.35%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector -- about 25.7% of the portfolio. Information Technology and Healthcare round out the top three.

Looking at individual holdings, Microsoft Corp. (MSFT) accounts for about 5.22% of total assets, followed by Apple Inc. (AAPL) and Alphabet Inc. (GOOGL).

The top 10 holdings account for about 42.44% of total assets under management.

Performance and Risk

OUSA seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses. The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.

The ETF return is roughly 9.48% so far this year and was up about 11.3% in the last one year (as of 10/28/2026). In the past 52-week period, it has traded between $54.65 and $63.30.

The ETF has a beta of 0.74 and standard deviation of 11.41% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.

Alternatives

ALPS OShares U.S. Quality Dividend ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OUSA is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $118.17 billion in assets, Vanguard Morningstar Value ETF has $192.98 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.