What is a sovereign wealth fund and why is Trump creating one now?

Designed to invest in the national interest, sovereign wealth funds are typically funded by countries rich in natural resources and it is unclear how a US fund would operate or be financed

Donald Trump has signed an executive order directing the US treasury and commerce departments to create a sovereign wealth fund. Treasury secretary, Scott Bessent, and Howard Lutnick, the nominee for commerce secretary, will lead the effort.

We have tremendous potential," Trump said while signing the order from the Oval Office on Monday. I think in a short period of time, we'd have one of the biggest funds."