A Traditional Sovereign Wealth Fund Would Not Cover Projected Fiscal Gaps
Congressional Budget Office projections of major expenditures (USD billions)
Returns are calculated based on an initial capitalization of $1 trillion. The 6.7 percent rate of return reflects the ten-year weighted average return across comparable SWFs. Profits are defined as the difference between investment returns and funding costs (estimated from current Treasury yields), and are assumed to be fully reinvested each year.
