The top reasons you should consider Vanguard stable value

April 15, 2020

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Looking for the right capital preservation vehicle for your plan? Vanguard and our stable value products (Vanguard Retirement Savings Trusts or client-specific separately managed accounts) are conservative investment options that could be right for you.

When considering a capital preservation strategy like stable value, here are a few of the top attributes you should weigh, and why Vanguard stands out from the crowd.


Performance results

Past performance does not guarantee future returns; however, a strong and consistent track record of performance versus other comparable stable value funds should be a factor to consider. Vanguard Retirement Savings Trust has consistently outperformed the competition.


Stable value vs. industry

For the 1-, 3-, 5-, and 10-year periods ended December 31, 2019, Vanguard Retirement Savings Trust outperformed the Hueler average.

Source: Vanguard, and Hueler Analytics Stable Value Pooled Fund Universe. Hueler’s data is copyright protected and not for reproduction or redistribution. Retirement Savings Trust and Hueler average returns are gross of management fees and net of contract fees. Data as of December 31, 2019.

Note: The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent monthend, visit our website at The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.


Market/Book value ratio

Market-to-Book ratio is broadly interpreted as a sign of soundness of a stable value investment, with a ratio greater than 100% indicating the portfolio is at a gain and no exposure to the insurance contracts. Our stable value products are in the top decile of peers.

Sources: Vanguard, and Hueler Analytics Stable Value Pooled Fund Universe.
Data as of December 31, 2019.


Stable value vs. money market

Vanguard stable value products have consistently outperformed money market peer group averages.

Sources: Vanguard and Morningstar data as of March 31, 2020.

Funds included in the money market average represent all funds in the Morningstar money market fund category. Results will vary for other time periods. Only funds with a minimum one-, three-, five-, or ten-year history, respectively, were included in the comparison.

Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at

There may be other material differences between products that must be considered prior to investing.

For more information on the differences between stable value and money market funds, please see "Stable value: A safe harbor."

Risk mitigation

The stable value fund you select should have a strong risk control strategy. We have a higher credit quality bias within our underlying portfolios and we diversify across a high number of providers where other firms may have a more concentrated portfolio. Add on top of that, we are all internally managed, so our world-class risk management team has oversight of the entire portfolio and process.

*Source: Hueler, data as of December 31, 2019.

Deep experience

Finally, when it comes to stable value, you want a partner who has a proven track record. You want a team of experts who can help you understand stable value and has weathered any number of market events. As the largest provider of actively managed fixed income funds,** Vanguard has the experience to help you.

Vanguard stable value stats

** Source: Morningstar, Inc., U.S. 40 Act fund providers as of December 31, 2019.
† Source: Vanguard as of December 31, 2019. $32 billion is the combination of the RSTs, stable value separately managed accounts for retirement plans, and 529 plans.

Learn more about our stable value products, or call us with any questions at 800-523-1036.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Past performance is no guarantee of future results.

Vanguard Retirement Savings Trust is not a mutual fund. It is a collective trust available only to tax-qualified plans and their eligible participants. Investment objectives, risks, charges, expenses, and other important information should be considered carefully beforeinvesting. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc.

A stable value investment is neither insured nor guaranteed by the U.S. government. There is no assurance that the investment will be able to maintain a stable net asset value, and it is possible to lose money in such an investment.