Bonds funds vs stable value funds

[myrrh]

Bond fund losses last year were on par with stock losses, which I thought was not supposed to happen. Yes yes, interest rates rose a lot so bond funds went down in value. Silly me for conflating bonds vs bond funds. What are the differences between bond funds and stable value (funds/assets)? I'm a bit concerned since 529 accounts are going to be used within the next five years and now know that bond funds are not stable value.

[SilentC]

Stable value generally owns highly rated fixed income securities and uses derivatives or insurance contracts to hedge volatility.  You could do that but I would personally keep a mix.  The last year of school is in 8 or 9 years from now that’s a long ways ahead and the hedging features of the stable fund reduce return potential.