VWEAX focuses on high-yield "junk" bonds with a bias towards medium-to-lower credit ratings. Predominantly investing in corporate debt, it targets bonds below Baa by Moody's or equivalent, with up to 20% in lower-rated bonds and assorted instruments. This positions the fund for potential higher returns with a correlated increase in credit risk, influenced by macroeconomic factors such as interest rate trends, economic cycles, and market volatility.