Bottom Fishing For Europe ETF Rebound Candidates

Oink oink go the PIGS or PIIGS. Regardless of one's preferred acronym, the situation in Europe has grown more dire though it has not been entirely unpredictable. Greece got the ball rolling. Italy is apparently the next domino. Who is next? Spain? Worse yet, maybe France? Time will tell if there are more large victims of Europe's sovereign debt fiasco, but savvy traders and investors can use this opportunity to spy some potential rebound candidates. And yes, those candidates are right there in Europe. Consider this a guilt by association, but loaded with potential list. iShares MSCI Austria Investable Market Index Fund EWO: As ETFdb noted today, the iShares MSCI Austria Investable Market Index Fund is one of the 10 worst performing ETFs over the past five years with a decline of 46%. Year-to-date, EWO is down 26% and its easy to see why. The ETF is heavy on financials and Austria is an export-dependent economy. Still, Austria is not even close to being in the same boat as one of the PIIGS. If you can stomach a possible slide to support at $12, EWO could pay off handsomely over the long run. iShares MSCI Sweden Index Fund EWD: Talk about guilt by association. Sweden isn't the “S” in PIIGS nor is it a Euro Zone member. Even tiwh those important factors, EWD trades below $25 with support around $20 and possible upside to $34 or higher. And hey, EWD yields almost 4%. In the words of famed Swedish export Abba, take on a chance me. Me being EWD. Global X Norway ETF NORW: Like Sweden, Norway's economy has held up well, features a safe debt-to-GDP ratio and is NOT a Euro Zone member. All good things that probably aren't reflected in NORW's shares. If you're looking for backdoor developed market play on rising oil prices, NORW is your ETF. NORW's near-term fortunes will be determined by the ETF's ability to hold above $13, also its 50-day moving average. iShares MSCI Turkey Investable Market Index Fund TUR: People often ask if Turkey is an Asian country or if it's considered European. We know this: Turkey wants full membership in the EU and it's the most westernized of any country that can be considered part of the Middle East. Long story short, TUR is an emerging markets ETF and if it can crack resistance just above $51, it might start acting like one of the more bullish EM ETFs out there after being a laggard for much of 2011. WisdomTree Europe SmallCap Dividend ETF DEF: Small caps and Europe are a toxic brew right now, but something needs to be noted with the WisdomTree Europe SmallCap Dividend ETF. That is about 60% of the ETF's country weight is devoted to countries NOT in the Euro Zone. The U.K. and Sweden combine for more than 47% of DEF's weight. The 30-day SEC yield of 4.45% is not too shabby. Bull case: Isn't it obvious? All these funds should bounce if Europe get its act together. But that's a big “if.” Bear case: Again, it's obvious. More European woes will pressure these ETFs. It's that simple.