• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
CommentaryFinance

The case for a U.S. sovereign wealth fund

By
Stephen Prince
Stephen Prince
Down Arrow Button Icon
By
Stephen Prince
Stephen Prince
Down Arrow Button Icon
March 13, 2025, 3:27 PM ET

Stephen Prince is CEO of TFG Asset Management.

Getty Images
Add Fortune on Google for similar content.

Sovereign wealth funds are usually the strategic resources of petrostates with budget surpluses, not diverse, debt-heavy economies like the United States. That should change. Instead of managing our nation’s balance sheet with a spendthrift’s short-term outlook, the U.S. should think like an investor and put its assets to work deliberately.

President Donald Trump’s directive to establish a sovereign wealth fund could add immense firepower to our economic arsenal, converting national wealth into strategic and financial advantages for all Americans. And right now, we don’t have the luxury of holding our fire. 

America is at risk of losing the technological race—and going broke in the process. In quantum computing, China outspends us four to one. Japan has emerged as a global leader in robotics. Germany is now ground-zero for advanced manufacturing. And as our competitive edge erodes, our debt mounts. The U.S. paid $882 billion in net interest in FY 2024—more than we spent to fund the entire Department of Defense. The real risk isn’t creating a sovereign wealth fund—it’s pretending we don’t need one.

Capitalism has long been America’s greatest asset. It’s time to wield it patriotically.

A U.S. sovereign wealth fund’s success would come down to four crucial questions: Where does the money come from? How is it invested? Where do the returns go? How is it managed?

Funding wisely

First, the funding. Critics say we can’t have a sovereign wealth fund without a budget surplus. But America already owns substantial assets: land, mineral rights, spectrum licenses, and intellectual property. We just don’t normally monetize our ownership in them for the direct benefit of our citizens. Instead, we treat our assets and their revenues as disposable income, while countries like Norway prudently invest their oil wealth.

Take federal lands: The oil royalties charged by the Department of the Interior are at below-market rates. By charging what Texas charges for the same activities, we could generate an incremental $8.5 billion. Add expanded renewable energy leasing, and we could boost that to $10.1 billion. 

But the key isn’t spending that extra money—it’s borrowing against it. With congressional approval, current AAA municipal bond rates of 2.9% and $10.1 billion in annual revenue would allow the U.S. to support up to $225 billion in initial funding. Bondholders get paid from resource revenues, not investment returns. By separating funding risk from investment risk, the fund could make bold bets on America’s future, without risking its present.

Investing strategically

Second, the investment strategy. The government is excellent at identifying strategic threats. For example, the National Security Commission on AI has spelled out how our adversaries might overtake us within a decade. But these reports end up unread with the same toothless conclusions like, “Congress needs to appropriate billions.” 

While we wait for our government to act, other governments, like Saudi Arabia and Qatar, are deploying trillions into the technologies and markets our future depends on. A U.S. fund would let us turn government threat assessments into investment theses, allowing us to shape these critical technologies to our national advantage.

Sharing the returns

Third, the returns. The success of this fund should be shared with its citizen shareholders through investment accounts for every newborn American. 

Start with our $225 billion fund, assume an 8% annual return (matching Alaska’s Permanent Fund) and let it grow for a decade to $485 billion. Then, by paying out half the returns and reinvesting the rest, we could give each American child at birth a $5,400 investment account by the mid-2030s. Someday, our kids won’t just get a tax return—they’ll get a return on their taxes.

We’ve created a system where public investment creates private fortunes. The U.S. military and intelligence agencies routinely fund cutting-edge R&D but give away the equity. Venture capitalists reap the returns from government-funded innovations—the internet, GPS, mRNA vaccines—while taxpayers who funded these breakthroughs get nothing. For example, Moderna’s stock price nearly quintupled in the nine months after announcing its COVID vaccine. That breakthrough was built on taxpayer-funded research from the NIH. By investing rather than spending, America’s future generations wouldn’t just be funders of this success; they’d be owners of it.

Assembling a board 

Finally, management. A U.S. sovereign wealth fund, like the Federal Reserve, can operate independently with a clear mandate: maximize returns while advancing strategic interests.

We could start by creating a board of America’s best talent. Think: Mitt Romney and Bill Gurley working alongside Condoleezza Rice and Eric Schmidt. Meanwhile, the fund’s day-to-day operations would be managed by world-class investment professionals who are paid competitive salaries and evaluated against clear benchmarks.

Critics will argue the government can’t or shouldn’t manage capital, that markets do this better and don’t violate free-market principles. These are fair concerns—but they are also outdated. A sovereign wealth fund is not a step toward socialism; it is a step toward sovereignty. It would put America’s markets to work, creating common wealth for the common good. It would help us stay technologically competitive with our rivals without raising taxes. And instead of passing debt to future generations, we’d be giving them assets. That way, they’ll have a real stake in America’s success.

In 1776, just months after Adam Smith published The Wealth of Nations, Thomas Jefferson wrote the Declaration of Independence. These twin revolutions—American democracy and modern capitalism—were born together. Now it’s time to reunite them.

Our rivals are wielding their wealth to shape tomorrow without American leadership. We can no longer watch from the sidelines. Let’s build a sovereign wealth fund—and build it so we can win.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Read more:

  • America must harness stablecoins to future-proof the dollar
  • Elon Musk wants the U.S. Treasury to be on a blockchain. That’s a terrible idea—take it from a big proponent of the technology
  • Trump’s crypto reserve is being panned by crypto leaders. Here’s why it’s actually a good idea

About the Author
By Stephen Prince
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

rn
CommentaryCryptocurrency
Former Iran director at NSC: Crypto legislation is a ticket to sanctions evasion
By Richard NephewJuly 2, 2026
14 hours ago
m
Commentary250 Years of Innovation
McKinsey chairs: Building a more resilient industrial base may require $2 trillion in investment
By Eric Kutcher and Shubham SinghalJuly 2, 2026
14 hours ago
em
Commentary250 Years of Innovation
America’s 250th birthday has Elon Musk and a record IPO. Its 15th had Alexander Hamilton — and a stock market bubble
By Owen LamontJuly 2, 2026
18 hours ago
paramount
CommentaryAntitrust
How Paramount’s theater commitments could boost local economies across the nation
By Ike BrannonJuly 2, 2026
18 hours ago
elon
CommentaryChina
China has 400 private space companies. The West is barely paying attention
By Rainer ZitelmannJuly 2, 2026
20 hours ago
senate
CommentaryCongress
One rare bipartisan AI bill is moving through Congress. Here’s why it deserves to pass
By Neil Björkman and Betsy BrewerJuly 1, 2026
2 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
12 hours ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
22 hours ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
13 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.