The mortgage fallout in the U.S. is beginning to take its toll on international markets, including the emerging markets that have delivered such stellar returns of late, Barron’s Online reports. That’s because investors are moving away from any investment they perceive as carrying risk.

The iShares MSCI Emerging Markets ETF was up nearly 50% year-to-date this year through October, versus a mere 6% for the S&P 500. But over the past few weeks, the fund has underperformed the S&P 500.

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