President Donald Trump signed an executive order directing the creation of a sovereign wealth fund for the United States. Sovereign wealth funds are investment vehicles owned by countries, designed to benefit future generations by investing for the collective good of the nation. These funds can support infrastructure projects, buy stakes in companies, and fund government budgets or social programs. Currently, there are over 90 sovereign wealth funds worldwide managing over $8 trillion in assets.

Typically, countries with strong commodities export industries fund their sovereign wealth funds with revenue from natural resources. However, the U.S., which has been running budget deficits, has not detailed how its fund will be financed. Treasury Secretary Scott Bessent mentioned monetizing U.S. government assets for the American people as a potential source. Trump suggested revenue from tariffs on U.S. imports could also contribute to the fund.

The U.S. sovereign wealth fund is expected to be established within the next 12 months to finance national endeavors like infrastructure projects, manufacturing, and medical research. While no specific size has been announced, Trump previously hinted at aiming for a fund size exceeding $2 trillion. Currently, the largest sovereign wealth fund is Norway’s Government Pension Fund Global, followed by China Investment Corporation. Other countries with significant funds include Abu Dhabi, Kuwait, Saudi Arabia, and Singapore.