Cyclical stocks are leading this year, and that’s propelling the SDOG tries to reflect the performance of the S-Network Sector Dividend Dogs Index, which applies the “Dogs of the Dow Theory” on a sector-by-sector basis using the S&P 500 with a focus on high dividend exposure. SDOG’s equal-weight methodology is important because it reduces sector-level risk and dependence of some groups that are considered to be imperiled value ideas. UBS sees opportunity in cyclical and value fare, which could augur well for SDOG moving forward. “Furthermore, sharp declines in equity valuations are typically only caused by growth or policy concerns,” said David Lefkowitz, UBS head of equities America. “Higher interest rates do, however, have implications for positioning within equity markets. Cyclical sectors and value stocks tend to outperform when rates rise.”