President Donald Trump has called for the creation of a sovereign wealth fund (SWF) "in order to promote the long-term financial health and international leadership of the United States."
But what exactly is a sovereign wealth fund, and what might Trump's plan mean for the United States?
What Is a Sovereign Wealth Fund?
A sovereign wealth fund is a government-owned investment fund with diverse assets that can include equities, real estate and infrastructure.
Funding sources often include revenues from commodity exports (such as oil or gas), foreign exchange reserves accumulated by the central bank or fiscal surpluses.
Many SWFs are established to preserve wealth for future generations, especially in countries with finite natural resources, while others support domestic economic development or invest in sectors important for national strategy.
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Global Examples
Nearly 90 countries operate sovereign wealth funds, collectively holding over $8 trillion in assets, according to the Sovereign Wealth Fund Institute.
The largest sovereign wealth fund in the world is Norway's Government Pension Fund Global, which invests oil surplus revenues globally and holds more than $1.7 trillion in assets as of 2025.
Other notable examples include those of the United Arab Emirates, China and Singapore, each with unique mandates and investment strategies.
Trump’s Proposal
Shortly after taking office, President Trump signed an executive order instructing economic officials to develop a plan for a U.S. sovereign wealth fund. The proposal taps into trillions of dollars of assets held by the federal government and seeks to boost America's long-term wealth and reduce tax burdens.
Trump has previously pointed to a potential 50% stake in TikTok—currently owned by China-based ByteDance—as an example of the types of assets that could be included in a new U.S. sovereign wealth fund.
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"We might put that in the sovereign wealth fund, whatever we make or we do a partnership with very wealthy people, a lot of options," he said, referring toTikTok.
"But we could put that as an example in the fund. We have a lot of other things that we could put in the fund," Trump added.
The Trump administration has made some "SWF-like" investments including the Department of Defense's 15% stake in rare earths miner MP Materials Corp. (NYSE:MP) and a nearly 10% stake in chipmaker Intel Corp. (NASDAQ:INTC).
National Economic Council director Kevin Hassett referred to the Intel investment as a “down payment” on a sovereign wealth fund and said that the U.S. government will likely buy stakes in more companies.
Potential Impact
If implemented, a U.S. SWF could reshape how America manages its national wealth, aiming for economic security, generational savings and increased global financial influence.
However, the U.S. does not currently run the sorts of large budget surpluses or commodity windfalls that typically fund SWFs. Trump's team has floated possible sources like tariffs, sales of public lands and leveraging the value of natural resource reserves.
Next Steps and the Broader Debate
Trump's executive order to develop a sovereign wealth fund is only the first step and a detailed legislative plan, including specific funding mechanisms and governance structures, must follow. Any proposal would then need approval by Congress.
The Trump administration has signaled that it will continue making strategic investments, but the fundamental question of whether the U.S. should establish a sovereign wealth fund at all remains open.
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