From 24/7 Wall St. · Ryne Mauck · · 1m
Stable Value Fund Lags, 3 ETFs Pay More
Retirees with $180K in stable value funds miss out on higher yields from 3 low-risk ETFs.
In brief
Retirees with $180K in stable value funds miss out on higher yields from 3 low-risk ETFs. Retirees at 66 could earn 4.7-4.9% on $180K in high-yield ETFs instead of stable value funds paying 2.5-3%. Originally reported by 24/7 Wall St..
Your 401(k) Safe Fund
At 66, you parked $180k in your 401(k) stable value fund for principal safety.
Stable Value Lags Market
Your fund pays 2.5-3% while short-term rates hit 4.24%.
3 ETFs Pay More
WisdomTree, Janus Henderson, and Vanguard ETFs offer 3.8-4.9% yields without stock risk.
USFR: Treasury Safety
USFR resets weekly against short T-bill rates, paying 3.8% with 0.15% fees.
JAAA: Highest Yield
JAAA pays 4.9% with 0.20% fees from top-rated collateralized loans.
VCSH: Corporate Bonds
VCSH pays 4.7% with 0.03% fees on investment-grade corporate bonds.
Trade-Offs for Retirees
These ETFs carry small mark-to-market risk but beat stable value yields by 2-3%.
What to remember
Retirees at 66 could earn 4.7-4.9% on $180K in high-yield ETFs instead of stable value funds paying 2.5-3%.
