When building a portfolio with exchange traded funds, it makes sense to start with core holdings.

In a recent note, Stewart Glickman, S&P Capital IQ Equity Analyst, suggests including a large-cap ETF that represents the broader U.S. stock market. Specifically, he points to the Schwab U.S. Large-Cap Growth ETF (NYSEArca: SCHG). The fund has an expense ratio of 0.13%. [ETF Chart of the Day: Mega Caps]

“We view SCHG as predominantly composed of large-cap U.S. stocks with strong growth characteristics, and we view its underlying holdings as relatively attractive,” Glickman said. “We believe SCHG has attractive characteristics, not the least of which is that the ETF offers a relatively low-cost way to obtain broad exposure to the U.S. stock market, which we believe has relatively good fundamentals.”

Given the current macroeconomic picture, growth in the U.S. seems relatively safer, he said. If the financial environment in Europe shows signs of deterioration, large-cap companies will be preferred over small-caps.

Alec Young, Global Equity Strategist at S&P Capital IQ, said that small-caps tend to have greater exposure to financials than large-caps. Additionally, considering an investment style, value stocks also show greater exposure to financials than growth stocks.