Markets
Platforms
Accounts
Investors
Partner Programs
Institutions
Contests
loyalty
Trading Tools
Resources
A Sovereign Wealth Fund (SWF) is a state-owned investment fund that invests a country’s surplus revenues in global financial assets such as stocks, bonds, and real estate. These funds are typically derived from commodity exports, such as oil or gas, or from foreign currency reserves. SWFs are designed to manage the wealth of a nation and provide financial stability for future generations, often focusing on long-term returns and diversification across asset classes.
Norway’s Government Pension Fund Global is one of the largest sovereign wealth funds, investing oil revenues into a diversified portfolio of global assets to ensure the country’s wealth is preserved for future generations.
• State-owned fund investing national surplus revenues globally.
• Focused on long-term returns and financial stability.
• Often funded by commodity exports or foreign currency reserves.
They create SWFs to invest surplus revenues and ensure financial stability for future generations, especially from non-renewable resources like oil.
By investing in global assets across various industries and regions, they reduce reliance on any single source of revenue.
SWFs face market risks such as volatility in asset prices, currency fluctuations, and changes in global economic conditions.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
Register to our Newsletter to always be updated of our latest news!
