This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Four Solid European ETFs

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EWG $29.70 0.00%
EWN $25.59 0.00%
EWL $33.32 0.00%
EWU $19.10 0.00%
AAPL $128.46 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs