The DB Currency Fund, he observes, tracks 10 currencies -- U.S. Dollars, Euros, Japanese Yen, Canadian Dollars, Swiss Francs, British Pounds, Australian Dollars, New Zealand Dollars, Norwegian Krone and Swedish Krona.

He explains, "The strategy is straightforward enough: the fund goes long on 'buys' (the top three currencies with the highest interest rates) and goes short on 'sells' (the top three currencies with the lowest interest rates). And it does so on a 2:1 leveraged basis with long currency futures positions."

Vardy adds, "This fund also is a terrific way to profit from the depreciation of the U.S. dollar. The U.S. dollar has fallen to record lows against the Euro this year and hit a new 26-year low against the pound. The trade-weighted dollar index dropped to its lowest level since 1992.

"With the U.S. economy growing more slowly than many global rivals, interest rates rising fast outside the United States, and anxiety over U.S. credit and mortgage markets, dollar depreciation probably is in the cards for some time to come."

What kind of returns can you expect from this currency play? The advisor says, "Back-testing the strategy used by the DB Currency Fund shows that the average annual return over the past 10 years has been 11.48% vs. 8.32% for the S&P 500.

"Equally importantly, DB Currency Fund's correlation to the S&P 500 only has been 0.21, with less than half of the volatility. While 11.48% per annum may not sound like much, outperformance with lower volatility spells 'free lunch' in finance terms.

"That doesn't mean the fund cannot go down. The Funds' current short position in the Japanese Yen and the unwinding of the carry trade may impact the fund negatively. But overall, this strategy is a 'no brainer' for its diversification benefits alone."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.