Recently there was an ETF launched in germay doing currency carry trade. This has been going on for a while now (borrowing cheap Japanese yen and lending converted funds in some currency with higher interest rates), but as I understand, has not been available for small investors. This fund: http://etf.seekingalpha.com/article/19515
simply looks at 10G currencies and shorts 3 with lowest interest rate and goes long on three with highest interest rates. There are some interesting comparisons with S&P (simulated as this fund did not exit until a few months ago): http://www.isecureonline.com/reports/CRC/WCRCGA16/
Some people think it’s a great tool, but it seems to me that in case of a USD crisis, all other world currencies would have tough time and even though the fund might go up, in real terms, it would lose value. Any thoughts on this new instrument?
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