Interesting thought, can uso go negative in this situation? Since they hold futures ? The fund itself negative sure, but its ticker and symbol and nav/stock price ?
True (according to my limited comprehension based on what's written). I already smell a scent of lawsuit brewing in the background.
USO is pegged to the crude oil futures and it trades only the front month. So, as long as the June contract trades above 0, it should be fine. However, should CL go negative like yesterday, hmmmmmmm???? It's hard to say. But I do know if stocks or mutual funds, including ETFs, when they hit ZERO, they're done. Kapoot.
Negative Pricing and Strikes for Certain Natural Gas Contracts https://www.cmegroup.com/content/dam/cmegroup/notices/ser/2020/05/SER-8596.pdf Still, /NG is not included.