A “Country ETF” is an ETF that is invested across companies specific to a single country or region. Since Country ETFs are often listed on US exchanges, they are an easy and accessable way to invest in another country while using a standard brokerage account that only lists US stocks and ETFs.
However, since country ETFs invest in such a wide range of companies, they often have a hard time beating the market, and are usually recommended only for more advanced investors. There are also tax considerations; some special retirement accounts may exclude country ETFs from tax-exempt status, since it may require investments be made in US companies.
An example of these ETFs are some common Canadian-specialized ETFs, such as [hq]FCAN[/hq], [hq]EWC[/hq], and [hq]QCAN[/hq]. These ETFs invest in a wide range of Canadian companies.
The [hq]ENY[/hq] ETF is another Canadian ETF, specializing specifically on the Canadian energy sector.
You can find a more complete list of country ETFs at InvestSnips (Click Here to view)