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

The fund may contemplate acquiring a share in TikTok, the widely-used social media platform owned by China's ByteDance.

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

Sovereign wealth funds generally invest in assets like stocks, bonds, and real estate, typically supported by budget surpluses.

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

President Trump has indicated his goal for the U.S. fund to ultimately compete in size with 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 establish the fund within the next 12 months and is exploring investments in areas such as vaccine production.

At present, the U.S. has over 20 state-level sovereign wealth funds, funded by revenues from oil, gas, and minerals.