VGHY

This actively managed fund will invest in a diversified portfolio of below investment grade bonds, sometimes referred to as "junk bonds." It will seek to outperform the broad high-yield market through security selection, sector allocation, and other active portfolio management decisions. Like other bond funds, the fund is subject to interest rate risk; increases in interest rates may cause the price of the bonds in the portfolio to decrease, reducing the fund's net asset value. Because of its exposure to lower-credit-quality securities it is also subject to credit risk; negative perceptions about an issuer's ability to make its interest or principal payments in a timely manner may cause the price of that bond to decrease.