However, investors shouldn’t be completely thrown off by the continent’s troubles, since there are some long-term bargains to be had and one can still pick out individual European-country ETFs.

As the markets dumped European stocks during the fiscal scare, European stocks on the Euro STOXX 600 are trading rather cheaply at around a P/E ratio of 15. The depreciated euro has also benefited European exporters – analysts calculate that every 10% drop in the euro could translate to a 0.5% gain in the eurozone’s GDP. Europe may be in a very promising value position if another global financial disaster doesn’t hit anytime soon after being so oversold.

European ETF Plays

As with many regions around the world, the options for investing in Europe are plentiful.

There are broad Europe funds that give exposure to the continent’s countries, such as SPDR DJ STOXX 50 (NYSEArc: FEU) and iShares S&P Europe 350 (NYSEArca: IEV).

In this kind of climate, in which some countries are doing markedly better than others, single-country ETFs may also be a consideration to fine-tune your exposure and get the movers in your clients’ portfolios.

As stated before, a depreciating euro benefits European exporters and Germany stands to gain the most from a falling euro. The OECD projects that Germany’s economy will expand by 1.9% in 2010. Germany contributes massively to the eurozone’s GDP. In fact, two-fifths of it comes from the high-saving, export-intensive countries of Germany and its neighbors, in addition to Finland.

Additionally, Switzerland, with its added bonus of having exposure beyond the euro currency, is small but has a robust economy. The country boosts a strong currency, low foreign debt and large reserves of gold. Almost 40% of Switzerland’s economy is attributed to global exports and the country is currently on a trade surplus. iShares MSCI Switzerland (NYSEArca: EWL) and iShares MSCI Germany (NYSEArca: EWG) are two examples of the ETFs that give direct exposure to these economies.

In order to explore all of the ETF options for getting exposure to Europe, visit the ETF Analyzer. As a pro member, you can also add Europe ETFs to your model portfolio or watchlist, and set up trading alerts to be notified of a trading opportunity.

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