Raising the bar when it comes to stable value

September 17, 2020

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Stable value funds are, like money market funds, principal preservation products that can benefit participants by providing income at lower volatility than equities. Generally, stable value products, like Vanguard Retirement Savings Trust, can be leveraged as part of a balanced portfolio for plan sponsors looking to add fixed income exposure to their retirement plans.

While used for similar purposes to money market funds, stable value is designed to offer higher returns than money market, especially when the Fed rate is low.

In these videos, Patricia Selim, head of stable value investments at Vanguard, and Colleen Jaconetti, senior investment strategist in Vanguard Investment Solutions, discuss the benefits of stable value, which investors could benefit from stable value funds, and how stable value compares to money market funds.

Created in collaboration with CNBC Brand Studio.

Video transcript: Vanguard stable value vs. money market funds pdf
Video transcript: The benefits of Vanguard stable value pdf


  • All investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.
  • 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.
  • Vanguard Retirement Savings Trust is not a mutual fund. It is a collective trust available only to tax-qualified plans and their eligible participants. The collective trust mandates are managed by Vanguard Fiduciary Trust Company, a wholly owned subsidiary of The Vanguard Group, Inc. Investment objectives, risks, charges, expenses, and other important information should be considered carefully before investing.