Sovereign wealth funds generally use a nation's reserves and invest the funds to generate returns, which can be used to address deficits, pay down debts or bolster savings.

President Donald Trump on Monday signed an executive order directing the U.S. to take steps to start developing a government-owned investment fund that he said could be used to profit off of TikTok if he's successful at finding it an American buyer.

Such funds are often used by nations with commodities that can be invested to hedge volatility and secure investment gains.