Additionally, investors can also focus on smaller Australian companies through the iShares MSCI Australia Small-Cap Index Fund (BATS: EWAS) and IQ Australia Small Cap (NYSEArca: KROO).

Goldman Sachs also argued that the Australia’s market looks attractive as the benchmark S&P ASX 200 begins to recover from a three-month sell-off.

“Value looks as good as it has in a decade,” Goldman Sachs strategist Matthew Ross said in a note, pointing out that Australian stocks are 10% undervalued relative to other developed markets like the U.S., Europe and Japan. “At 15.8 times price-to-earnings, Australia also trades at a 9 percent discount to MSCI World – well below its 1 percent average premium and just shy of its largest discount in a decade.”

For instance, EWA is trading at a 16.7 price-to-earnings ratio and a 1.9 price-to-book, whereas the S&P 500 index shows a 18.4 P/E and a 2.6 P/B.

Moreover, Evan Lucas, market strategist at IG, believed that improved fundamentals, such as improved earnings, should help support higher valuations in Australia.

For more information on Australia, visit our Australia category.

Max Chen contributed to this article.