The technology, industrial and materials companies are among cyclical sectors that typically strengthen in a rising rate environment as investors turn away from safer assets and shift into riskier areas of the market. [The Other Side of Volatility ETFs]

For those looking for a more prosaic approach to sector investing in rising rate environments, SPHB does feature a 14.3% weight to the financial services sector. Predictably, the ETF has no exposure to consumer staples, telecom and utilities stocks.

Financials have a five-year correlation of 0.525 to 10-year Treasury yields, the highest among all sectors, but the average among consumer discretionary, energy and industrials is 0.465, according to PowerShares data.

SPHB is up 1.7% this year.

PowerShares S&P 500 High Beta Portolio

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