Known as\u00a0sovereign wealth funds (SWF)<\/strong>,\u00a0Visual Capitalist’s Joyce Ma and Marcu Lu detail below<\/a>\u00a0that these vehicles are\u00a0often established with seed money that is generated by government-owned industries.<\/strong>\u00a0If managed responsibly and given a long enough timeframe, an SWF can accumulate an enormous amount of assets.<\/p>\n In this infographic, we\u2019ve detailed the world\u2019s 10 largest SWFs, along with the largest mutual fund and ETF for context.<\/p>\n Data collected from\u00a0SWFI<\/a>\u00a0in October 2021 ranks Norway\u2019s Government Pension Fund Global (also known as the Norwegian Oil Fund) as the world\u2019s largest SWF.<\/p>\n The world\u2019s 10 largest sovereign wealth funds (with fund size benchmarks) are listed below:<\/p>\n SWF AUM gathered on 10\/08\/2021. VTSAX and SPY AUM as of 09\/30\/2021.<\/em><\/p>\n So far, just two SWFs have surpassed the $1 trillion milestone. To put this in perspective, consider that the world\u2019s largest mutual fund, the\u00a0Vanguard Total Stock Market Index Fund (VTSAX)<\/strong>, is a similar size, investing in U.S. large-, mid-, and small-cap equities.<\/p>\n The world\u2019s two largest sovereign wealth funds have a combined\u00a0$2.5 trillion<\/strong>\u00a0in assets. Here\u2019s a closer look at their underlying portfolios.<\/p>\n Norway\u2019s SWF was established after the country discovered oil in the North Sea. The fund invests the revenue coming from this sector to safeguard the future of the national economy. Here\u2019s a breakdown of its investments.<\/p>\n As of 12\/31\/2020<\/p>\n Real estate<\/a>\u00a0may be a small part of the portfolio, but it\u2019s an important component for diversification\u00a0(real estate is less correlated to the stock market)<\/em>\u00a0and generating income. Here are some U.S. office towers that the fund has an ownership stake in.<\/p>\n As of 12\/31\/2020<\/p>\n Overall, the fund has investments in 462 properties in the U.S. for a total value of\u00a0$14.9 billion<\/strong>.<\/p>\n The CIC is the largest of several Chinese SWFs, and was established to diversify the country\u2019s foreign exchange holdings.<\/p>\n Compared to the Norwegian fund, the CIC invests in a greater variety of alternatives. This includes real estate, of course, but also private equity, private credit, and hedge funds.<\/p>\n As of 12\/31\/2020<\/p>\n A primary focus of the CIC has been to increase its exposure to American infrastructure and manufacturing. By the end of 2020,\u00a057%<\/strong>\u00a0of the fund was invested in the United States.<\/p>\n \u201cAccording to our estimate, the United States needs at least $8 trillion in infrastructure investments. There\u2019s not sufficient capital from the U.S. government or private sector. It has to rely on foreign investments.\u201d<\/p>\n \u2013 DING XUEDONG, CHAIRMAN, CHINA INVESTMENT CORPORATION<\/cite><\/p><\/blockquote>\n This has drawn suspicion from U.S. regulators given the geopolitical tensions between the two countries. For further reading on the topic, consider this\u00a02017 paper<\/a>\u00a0by the United States-China Economic and Security Review Commission.<\/p>\n Many of the countries associated with these SWFs are known for their robust fossil fuel industries. This includes Middle Eastern nations like Kuwait, Saudi Arabia, and the United Arab Emirates.<\/p>\n Oil has been an incredible source of wealth for these countries, but it\u2019s unlikely to last forever. Some analysts believe that we could even see peak oil demand\u00a0before 2030<\/strong>\u2014though this doesn\u2019t mean that oil will stop being an\u00a0important resource<\/a>.<\/p>\n Regardless, oil-producing countries are looking to hedge their reliance on fossil fuels. Their SWFs play an important role by taking oil revenue and investing it to generate returns and\/or bolster other sectors of the economy.<\/p>\n An example of this is\u00a0Saudi Arabia\u2019s<\/strong>\u00a0Public Investment Fund (PIF), which supports the country\u2019s\u00a0Vision 2030 framework<\/a>\u00a0by investing in clean energy and other promising sectors.<\/p>\n![\"\"](\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Sovereign-Wealth-Funds_Infographic.jpg?itok=z-BSrNjv\")
<\/picture><\/a><\/p>\nThe Big Picture<\/h2>\n
![\"\"](\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2021-11-16_14-16-20.jpg?itok=hkNy4o2r\")
<\/picture><\/a><\/p>\nThe Trillion Dollar Club<\/h2>\n
1. Government Pension Fund Global \u2013 $1.3 Trillion (Norway)<\/h4>\n
![\"\"](\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2021-11-16_14-17-41.jpg?itok=Eh0Gnofu\")
<\/picture><\/a><\/p>\n![\"\"](\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2021-11-16_14-18-30.jpg?itok=6o4mnbrK\")
<\/picture><\/a><\/p>\n2. China Investment Corporation (CIC) \u2013 $1.2 Trillion (China)<\/h4>\n
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<\/picture><\/a><\/p>\nPreparing for a Future Without Oil<\/h2>\n