Does anyone use ETFs to execute a carry trade?

I am fairly new at pairs trading and trying to evaluate whether there is any value in using currency ETFs for carry trades? i.e. buy a long/short pair and perhaps take out some of the vol buy buying the opposite trade.

I know that Rydex, Profunds and Powershares have ETFs. Does anyone use them? What are the pros and cons?

Thanks

Please do not double post on the forum, read the rules

You can use the ETFs for carry trades but it has the disadvantages of fees and restricted leverage. The low leverage thing could be an advantage though if you have trouble disciplining yourself. Rydex puts excess roll over premium back into the fund and Carry trade pairs tend to go up over the long run so I don't see why it wouldn't work.

John Jagerson

Check more about "perfect hedge" ( 3 pairs)
Is very good


Best Regards,
Marcelo Marques

Is it available in an ETF?

I am trying to make sense of the advantages and disadvantages of using the ETF to make this trade

I have identified some disadvantages of using an ETF

i) Not much leverage - are ETFs restricted by law of having more than 2X leverage because I have not seen any that have more?
ii) No ability to go short - I think I saw someone had a short ETF for a carry trade - but not sure
iii) Cost - I saw one at 40 basis points

Advantages

i) Safety - Haven't many FX platforms gone under and taken investors with them? Can't happen in an ETF
ii) Ease - don;t have to hold two accounts (FX and brokerage)
iii) Leverage - can't I just use my margin account - what is the cost


Thanks for your helps. Still trying to figure out the best way to make a carry trade