What Are Sovereign Wealth Funds and Does the U.S. Need One?
The U.S. and the UK each announced they were establishing sovereign wealth funds. We explore the purposes and types of sovereign wealth funds, how they invest, and some concerns with the U.S. establishing one.
Topics covered include:
What are the four types of sovereign wealth funds, and why the U.S. doesn't fit the typical use case
How sovereign wealth funds navigate between politics and generating high returns
Why a U.S. sovereign wealth fund, depending on its size, could crowd out other investment capital, leading to lower investment returns
How the U.S. federal government already invests in its economy without a sovereign wealth fund
