What Is a Sovereign Wealth Fund? Understanding Trump’s Executive Order
A sovereign wealth fund (SWF) is a state-owned investment fund that manages a country’s surplus revenues, often derived from natural resources, trade surpluses, or foreign currency reserves. These funds are typically used to invest in a variety of assets, including stocks, bonds, real estate, and infrastructure, to generate long-term wealth and economic stability.
President Donald Trump issued an executive order to develop a plan for a U.S. sovereign wealth fund, aligning with similar initiatives in countries such as Norway, Saudi Arabia, and China. These nations have established SWFs to strategically invest national resources and enhance economic resilience.
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