Unpacking Stable Value Funds

Question: What are stable value funds? Are they like money market funds with higher yields?

Answer: Stable value funds, whose availability is limited to defined-contribution plans, such as 401(k)s, 403(b)s, 457s, and also some 529 college-savings plans, aim to deliver income comparable to that of short- to intermediate-term bonds, with volatility over the long term similar to that of money market funds and other cash instruments.

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