Carry trade for the retail investors

Greg Mankiw posted in his blog about this awesome investment.

PowerShares^ð DB G10 Currency Harvest Fund
http://dbfunds.db.com/dbv/index.aspx

What it does is really make the carry trade available for retail investor. It borrows in the 3 currency with the lowest interest rates and invest in the 3 currency with the highest interest rates. The universe of currency is below.



When you look at their past performance, it's really too good to be true.



Note that the slope is not as steep as the S&P 500 during good times, but hey risks is minimal.

It has taken some beating for the last few months, because of unwinding of Japanese carry trade. So it's wise to wait a little, I am thinking in investing in it after JPY bounces to 85yen to the $1US.