How Emerging Market ETFs Are Bleeding Capital in June 2026

As of June 8, 2026, emerging market ETFs are experiencing dramatic outflows. The iShares MSCI Emerging Markets ETF (EEM) is down 6.8% in five days, while the Korea ETF (EWY) plunged 13%. Lucas and Luna explore why capital is fleeing these markets, examining the strength of the US dollar, rising US Treasury yields, and geopolitical concerns. They discuss how the strong dollar is tightening financial conditions in developing economies, making dollar-denominated debt more expensive and pressuring local currencies. The hosts also touch on the potential for a debt crisis in nations with high dollar exposure. This episode provides concrete data and context for understanding the current EM selloff, offering listeners a clear takeaway on the mechanics driving the capital flight. #EmergingMarkets #ETF #CapitalFlight #StrongDollar #EWY #EEM #USYield #Geopolitics #DollarDenominatedDebt #KoreanWon #TreasuryYields #CurrencyCrisis #FexingoBusiness #BusinessPodcast #InternationalBusiness #Trade #Finance #Macro Keep every episode free: buymeacoffee.com/fexingo