The U.S. stock market has strengthened in 2012, leaving many foreign and emerging market stocks in the dust. There are plenty of buying opportunities with emerging market and overseas exchange traded funds to be found.

Foreign and emerging market economies and shares have not rebounded as quickly as the broad U.S. market in 2012. Hedgphone on Seeking Alpha recommends looking at the valuations and large economic pictures for some of the following countries. [Which International ETF is Best for the MSCI EAFE Index?]

Valuations consist of a country’s management or political situation, the make-up of its capital structure and currency market and prospect of future earnings or imports and exports, explains Investopedia. [These 5 ETFs May be Overbought]

  • iShares MSCi South Africa (NYSEArca: EZA) This ETF is trading less than twelve times trailing earnings, making it  a good deal at current prices. EZA focuses in on basic materials and financials.
  • iShares MSCI Brazil Index (NYSEArca: EWZ) This ETF looks even cheaper than the South African markets with a trailing PE ratio of only 10X earnings. While US stocks are back to or higher than their August 2011 levels, EWZ is still some 18% or so below last summer’s high at $81 and change, reports Hedgephone.
  • iShares MSCI Australia Index (NYSEArca: EWA) this ETF is notorious for currency hedging and protecting against inflation. EWA is a commodity play. EWA will also benefit from a rise in the financial sector.
  • iShares MSCI United Kingdom Fund (NYSEArca: EWU) This is one of the cheapest funds and is a long term play if the synthetic ETF mess is over. Is this fund the most undervalued fund in the iShares suite, per unit of investment risk, asks Hedgephone?
  • Market Vectors TR Russia Index (NYSEArca: RSX) Russia is trading at 8x earnings, and this makes it attractive. The large exposure to oil makes it a good diversification tool. [What Putin’s Victory Means for ETFs]

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.