President Trump is taking steps to overhaul the way the U.S. government invests its money and change the nature of America’s financial presence abroad.

The president signed an executive order Monday that kicked off the process of creating a sovereign wealth fund with the goal of generating more revenue for the government.

Trump also suggested the fund could be used to purchase TikTok — the popular video-sharing app that will be subject to a ban if it is not sold by ByteDance, its China-based parent company.

A sovereign wealth fund would be a significant shift from the U.S.’s approach to foreign investment, and Trump’s order raises myriad questions about how it would work.

But the prevalence of state wealth funds and bipartisan interest in a federal version give the Trump administration a path forward.

Here are five things to know about Trump’s plan for a sovereign wealth fund.

What is a sovereign wealth fund?

Sovereign wealth funds are investment funds created by national governments, usually to manage state-owned assets. Such funds are often financed by major federal revenue surpluses, often generated by the state’s natural resources or other windfalls, according to experts at the Center for Global Development (CGD).

Norway and several Persian Gulf states, such as Saudi Arabia, operate sovereign wealth funds fueled by oil and gas revenue. China’s........

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