NEW YORK ( TheStreet) -- Although the headlines about debt in Europe earlier this year have abated, the problems gripping some euro-zone member countries still exist.
This means that investors interested in Europe should continue to avoid ETFs that provide exposure to the entire region.
Instead, investors looking for exposure to the European continent should seek out country-specific funds that represent Europe's strongest nations.
Two euro-zone countries worth a look are Germany, which is represented by iShares MSCI Germany Index Fund (EWG); and the Netherlands, represented by the iShares MSCI Netherlands Investable Market Index Fund (EWN). As the euro was battered down against the U.S. dollar and other major world currencies earlier this year, the German economy actually benefited as its export sector became even more competitive. Quality German goods were suddenly cheaper for other countries around the world, as exports surged in particular to China.Germany, whose government has spent frugally in comparison to some of its neighbors, is also not at risk of experiencing the same sort of debt issues that still threaten the economies of Ireland, Portugal, Spain, and of course, Greece. The result is that EWG will weather the challenges facing economic recovery around the world better than some of its peer European country-specific ETFs. When the euro crisis was starting to pick up steam, the markets of the Netherlands were found to be another region of stability within the euro-bloc. Ranking in as the second largest euro region exporter behind only Germany, the Netherlands has also benefited from the weakened euro. In July, Dutch exports increased 13% year over year. With close to 30% of its portfolio dedicated to consumer staples and 20% dedicated to industrials and financials each, EWN's index provides both defense against economic turmoil and upside potential for when the storm passes. In the past month period, the fund has gained 5%. Outside of the euro-zone, another promising case in Europe is Switzerland, which is represented by iShares MSCI Switzerland Index Fund (EWL). EWL is a leader among European country-specific ETFs in the past month with a gain of about 6%. Investors looking at Switzerland can gain an advantage since the country has its own currency and its markets are less affected by euro fluctuations. Although the country is not completely detached from the success or failure of the rest of Europe, its separate currency does give it another advantage in that it has much more independence in crafting economic policy.