Some investors looking for broad-based exposure to U.S. large-cap stocks use ETFs tracking this market segment as a core holding in a diversified portfolio.

The SPDR Dow Jones Large Cap ETF (NYSEArca: ELR) earns an overweight ranking from S&P Capital IQ.

“We think it is appropriate to put a large-cap focused ETF security like ELR into the core part of a portfolio to provide broad representation of the U.S. stock market. ELR seeks to track the price performance of the Dow Jones Wilshire Large cap Index. This ETF has an inception date of November 8, 2005 and it recently had 650,000 shares outstanding, with a market cap of about $42 million. Average daily trading volume is around 2,000 shares,” Stewart Glickman, CFA, S&P Capital IQ Equity Analyst, wrote in a recent MarketScope report. [Large Cap ETFs Have a Brighter Future]

Furthermore, ELR has an expense ratio of 0.2% and $41.71 million in assets under management. The fund offers exposure to all 10 of the sector groups tracked in the S&P 500 with technology receiving an allocation of 19.8% and financials placing second with a weight of almost 15%, reports Benzinga on MarketWatch.

Alec Young, global equity strategist for S&P Capital IQ, reports that U.S. exposure is preferable to overseas exposure on a tactical basis. After a strong start in 2012, international equities have since underperformed. The S&P 500 rose 4.8% versus the MSCI EAFE Index, which gained 1.6% over the same time. Furthermore, the MSCI Emerging Market Index gave back 0.2% over the same period. [Comparing the Large-Cap ETFs]