Stable Value

October 2026

Stable value funds are fixed income products that seek to preserve principal while providing a higher yield than cash or money market funds. This combination has made them a mainstay of participant-directed defined contribution (DC) plans, where they are offered in roughly three of every four plans. Their advantages (e.g., low volatility, daily transactions at book value, and returns that have historically fallen between short- and intermediate-term bonds) are balanced against drawbacks including the potential for guarantee-provider default and liquidity risk.