I have written quite a few times about the DB Currency Harvest Fund (NYSEARCA:DBV) in the past and even traded it personally a few months ago. The fund goes long the three highest yielding currencies in the G-10 and short the three lowest yielding G-10 currencies; a carry trade of sorts.
On May 10 the Bank of England raised its Fed Fund equivalent rate to 5.5% which is higher than the Fed's 5.25% which means that the US dollar is no longer one of the longs.
Now that the fund is not long* the US dollar I am thinking about going back in and possibly buying for clients as well. The carry trade is not riskless but the fund is short more than just the yen, so while DBV would feel any yen dislocation it might not be as bad as pure yen.
I think the proper weight might be 2% of a portfolio, which is small, but again the strategy underlying the fund is risky to a point; not one-drug-biotech risky - but still.
I enjoy, personally, exploring these types of strategies and adding them into a portfolio does add value, in my opinion, but it seems that do-it-yourselfers invest way too much in each of these alternative-ish investment products.
* The fund does have dollar exposure in that it owns mostly treasuries, that pay yield, and uses futures contracts to get long and short.