Looking at fed funds futures activity, options traders have raised the likelihood of a rate hike by the end of the year to 85% on Monday from 42% on August 12.

Fischer’s comment “have cemented more firmly in the markets minds that hikes will happen this year as a result of views around his position on the FOMC and being close to Yellen,” Peter Attard Montalto, senior emerging-markets strategist at Nomura International Plc, told Bloomberg.

SEE MORE: Emerging Market ETFs Pay Dividends Too

Higher interest rates in the U.S. would help make conservative government debt more attractive to riskier high-yielding assets, such as those found in the emerging markets. Moreover, a tightening monetary policy would further support the U.S. dollar and weigh on emerging currencies, along with potential USD-denominated returns of those foreign markets.

For more information on the developing economies, visit our emerging markets category.

Vanguard FTSE Emerging Markets ETF