Sovereign Wealth Funds Make Up Almost 3 Percent of the U.S. Stock Market
Posted on 06/05/2022
According to recent flow data by the Sovereign Wealth Fund Institute (SWFI), sovereign wealth funds have US$ 1,259,181,984,783 allocated to U.S. listed equities out of a total assets of US$ 10,060,562,495,661. 12.52% of sovereign wealth fund assets are allocated to U.S. equities. This pool of institutional investors does not include government funds and public pensions, but what SWFI defines as sovereign wealth funds.
The FTSE Russell 3000 tracks the U.S. stock market. On May 6, 2022, the FTSE Russell 3000 estimated the U.S. stock market capitalization to be US$ 44.9 trillion. By analyzing SWF allocations, sovereign wealth funds make up 2.804% of the U.S. stock market. Sovereign wealth fund data is taken from the latest available periods and adjustments and roundings were calculated for smaller sovereign funds.
The larger sovereign wealth funds are known as contrarian investors, often investing when others pull back. In addition, large sovereign funds typically are long-term in nature. Some of the largest sovereign funds investing in U.S. stocks include Norway Government Pension Fund Global, China Investment Corporation, Abu Dhabi Investment Authority, Kuwait Investment Authority, GIC Private Limited, Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and the Korea Investment Corporation. Gulf-based sovereign wealth funds that derive their wealth from oil, have around US$ 520 billion allocated to U.S. stocks.
