Core Viewpoint - The ALPS (OUSA) is a smart beta ETF launched to provide broad exposure to the Style Box - Large Cap Value category, with a focus on outperforming traditional market cap weighted indexes [1][5]. Fund Overview - OUSA was launched on July 14, 2015, and is designed to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index [1][5]. - The fund is managed by Alps and has accumulated over $810.22 million in assets, categorizing it as an average-sized ETF in its segment [5]. Cost Structure - The annual operating expenses for OUSA are 0.48%, which is competitive with most peer products in the same space [6]. - The ETF has a 12-month trailing dividend yield of 1.32% [6]. Sector Exposure and Holdings - OUSA has a significant allocation in the Financials sector, comprising approximately 26.6% of the portfolio, followed by Information Technology and Healthcare [7]. - Microsoft Corp. (MSFT) is the largest holding at about 5.74%, with the top 10 holdings accounting for approximately 43.56% of total assets [8]. Performance Metrics - As of August 7, 2025, OUSA has gained about 3.13% year-to-date and 11.88% over the past year [10]. - The ETF has traded between $47.97 and $55.50 in the past 52 weeks, with a beta of 0.83 and a standard deviation of 13.53% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the same space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), with SCHD having $69.59 billion in assets and an expense ratio of 0.06%, while VTV has $138.9 billion and an expense ratio of 0.04% [12].

Core Viewpoint - The ALPS (OUSA) ETF offers broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $804.12 million since its launch in July 2015 [1] Group 1: Large Cap Value Characteristics - Large cap companies typically have a market capitalization above $10 billion, characterized by stability and predictable cash flows, resulting in lower volatility compared to mid and small cap companies [2] - Value stocks generally have lower price-to-earnings and price-to-book ratios, along with lower sales and earnings growth rates, but have historically outperformed growth stocks in long-term performance [3] Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.48% and a 12-month trailing dividend yield of 1.33%, aligning with peer products [4] - OUSA aims to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index, having gained approximately 2.46% year-to-date and 12.04% over the past year as of August 6, 2025 [7] Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Financials sector at about 26.6%, followed by Information Technology and Consumer Discretionary [5] - Microsoft Corp. constitutes approximately 5.74% of total assets, with the top 10 holdings representing about 43.56% of total assets under management [6] Group 4: Risk and Alternatives - OUSA has a beta of 0.83 and a standard deviation of 13.53% over the trailing three-year period, indicating a medium risk profile with effective diversification across 101 holdings [8] - Alternatives include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have significantly larger asset bases and lower expense ratios of 0.06% and 0.04%, respectively [10] Group 5: Bottom Line - Passively managed ETFs like OUSA are favored by both institutional and retail investors for their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]