: Pros and cons of investing in the whole EU market as opposed to just one country What are the pros and cons of investing in the EU as a whole (through EURO STOXX 50 for instance) as opposed to one particular developed european

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Pros:

Higher geographic diversification, which potentially reduces risk. This also implicity includes different international exposure of different national companies
Higher sector diversification, as some countries are overrepresented in certain sectors of the economy, e.g. the automotive industry in Germany.
Potential currency diversification, if the fund include stocks denominated in non Euro currencies from within the European Union, e.g. the z?oty or the Danish Krona. This does not apply for the EURO STOXX 50.

Cons:

Likely a slightly higher total expense ratio due to higher costs in managing international funds due to more administrative, legal, regulatory, marketing etc. paperwork.
Potential currency risk. Does not apply to EURO STOXX 50

Neutral:

Exposure to different countries exposes yourself to risks that may not be present in some countries, but may also alleviate existing risks. More volatility risks may or may not be rewarded with higher returns. This would, to a reduced degree, mirror the differences in investing in developed markets and emerging markets.

A fund containing stocks from several european developed countries is considered international, but does not offer the same international diversification as e.g. an All Country All World fund, which would include companies from developed (especially the US) and developing markets.