01246nas a2200157   4500008004100000245009100041210006900132260000900201300001000210490000700220520070100227653001200928100001500940700001700955856011600972       2009                        eng d00aThe efficiency of international information flow: Evidence from the ETF and CEF Prices0 aefficiency of international information flow Evidence from the E  c2009  a40-490 v183 aWhile similar in their trading and organization, closed-end funds (CEFs) and exchange-traded funds (ETFs) differ in their liquidity and ease of arbitrage. We compare their price transmission dynamics using a sample of funds that invest in foreign securities and are most likely to show the deficiencies in the manner in which they process information. Our analysis shows that ETF returns are more closely related to their portfolio returns than CEF returns. However, both fund types underreact to portfolio returns but overreact to domestic stock market returns. A simple trading strategy using these results is profitable with roundtrip trading costs less than 1.38% for CEFs and 0.71% for ETFs.10aFinance1 aHughen, C.1 aMathew, Prem  u/biblio/efficiency-international-information-flow-evidence-etf-and-cef-prices-1