The market’s recent pullback could be considered a buying opportunity if you expect the trend in emerging markets to reverse and resume their bullish ways. One region that might be worth looking at closely as a potential investment is “down under” in Australia. The iShares MSCI Australia Index (EWA) is a choice that could give you nice upside in the coming months, and for several reasons.

First of all, the fund is separated geographically from Europe, where the debt problems in Greece, Spain and Portugal have disrupted international markets and sent the value of the euro falling. EWA is not immune to the problems that affect the rest of the world, but it is less vulnerable than many other investment opportunities that focus on other regions.

Second, the fund is heavily concentrated in financials and commodities. Financial stocks in Australia should not be as prone to problems as financials in Europe and elsewhere. A big plus is that the debt crisis in Europe is not unraveling economic growth that is taking place in Australia and other countries that have been more fiscally responsible. Asia, in general, is growing economically. Indeed, that region could be one of the best performers economically in the months ahead. Australia stands to gain from this growth, along with the rest of the region.

Third, EWA gives you exposure to the Australian currency, which could benefit from the devaluing euro. As the euro skids, the currencies of economically stronger countries have an opportunity to shine. Australian investments for U.S. investors also could gain lift from the appreciation of the U.S. dollar.

Another reason that may spur you to consider EWA right now is that it recently has fallen in price. The market downturn last week is only part of the story. The fund also has been adversely affected by the possible adoption of a hefty tax on Australia’s mining and other natural resource companies. The news already may be factored into the price of the Australian mining stocks and EWA. Although further fallout could be ahead if the tax is implemented, investors already are aware of the risk. Now may be a good buying opportunity, if you like to look for emerging-market bargains.

I currently am not recommending EWA, but I am watching it closely as a potential future investment while I wait to see if the equity markets stabilize. If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please sign up for my ETF Trader service. As always, I am happy to answer your questions about ETFs, so do not hesitate to email me by clicking here. You may see your question answered in a future ETF Talk.