On Monday, President Donald Trump issued an executive order instructing the U.S. Treasury and Commerce Departments to create a sovereign wealth fund within the upcoming year.

This fund might explore the option of acquiring a share in TikTok, the widely-used social media app owned by China's ByteDance.

The administration has set a deadline for early April for TikTok to find an approved partner or buyer, with the potential for the U.S. government to acquire a 50% ownership stake in the platform.

Sovereign wealth funds typically invest in various assets like stocks, bonds, and real estate, often funded by budget surpluses.

However, the United States currently does not have such surpluses.

President Trump has voiced ambitions for the U.S. fund to eventually compete with the size of Saudi Arabia's sovereign wealth fund.

Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been assigned the task of developing the framework for this fund, which will need congressional approval.

The administration intends to initiate the fund within a year and is contemplating investments in sectors such as vaccine manufacturing.

At present, the U.S. has over 20 state-level sovereign wealth funds, which are financed through revenues from oil, gas, and minerals.