Focused Country Funds
For those who want to take on a bit more risk, there are country-specific ETFS offered by iShares — including the iShares MSCI Germany ETF (EWG) if you want to play the countries that are a bit more stable as well as the iShares MSCI Spain Capped ETF (EWP) if you want to delve into the countries that are on shakier ground.
Just keep in mind that the European economy is led by the big dogs like Germany and the U.K. That’s a double-edged sword, of course. A pure play on Germany will allow for greater stability … but also less of a snap-back should the EU economy surge forward in the next year or two. Conversely, buying a troubled region like Spain could result in huge losses should things sour, or it could bring big gains if the battered economy makes a run.
Tread lightly either way, because the more you move away from diversification geographically, the bigger your risk becomes.