VWEHX focuses on high-yield, higher-risk corporate bonds, primarily investing at least 80% in "junk" bonds rated below Baa. This exposure positions the fund to benefit from potential economic growth, where rising corporate profits can improve the creditworthiness of such bonds. However, in a downturn or rising interest rate environment, high-yield bonds may face increased default risks. The fund's flexibility to use derivatives and invest in loans adds complexity, making it suitable for investors willing to accept higher volatility for potentially higher returns.