SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
Form N-1A | |
REGISTRATION STATEMENT (NO. 333-145624) | |
UNDER THE SECURITIES ACT OF 1933 | [X] |
Pre-Effective Amendment No. | [ ] |
Post-Effective Amendment No. 27 | [X] |
and | |
REGISTRATION STATEMENT(NO. 811-22114) UNDER THE INVESTMENT COMPANY ACT | |
OF 1940 | |
Amendment No. 31 | [X] |
VANGUARD MONTGOMERY FUNDS | |
(Exact Name of Registrant as Specified in Declaration of Trust) | |
P.O. Box 2600, Valley Forge, PA 19482 | |
(Address of Principal Executive Office) | |
Registrants Telephone Number (610) 669-1000 | |
Anne E. Robinson, Esquire | |
P.O. Box 876 | |
Valley Forge, PA 19482 | |
It is proposed that this filing will become effective (check appropriate box) | |
[X] immediately upon filing pursuant to paragraph (b) | |
[ ] on (date) pursuant to paragraph (b) | |
[ ] 60 days after filing pursuant to paragraph (a)(1) | |
[ ] on (date) pursuant to paragraph (a)(1) | |
[ ] 75 days after filing pursuant to paragraph (a)(2) | |
[ ] on (date) pursuant to paragraph (a)(2) of rule 485 | |
If appropriate, check the following box: | |
[ ] This post-effective amendment designates a new effective date for a | |
previously filed post-effective amendment. |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended (the Securities Act) and the Investment Company Act of 1940, the Registrant hereby certifies that it meets all requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the Town of Valley Forge and the Commonwealth of Pennsylvania, on the 17th day of May, 2018.
VANGUARD MONTGOMERY FUNDS
BY: /s/ Mortimer J. Buckley*_____________
Mortimer J. Buckley
Chief Executive Officer, President, and Trustee
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the date indicated:
Signature | Title | Date |
/s/ F. William McNabb III* | Chairman of the Board of | May 17, 2018 |
Trustees | ||
F. William McNabb | ||
/s/ Mortimer J. Buckley* | Chief Executive Officer, | May 17, 2018 |
President, and Trustee | ||
Mortimer J. Buckley | ||
/s/ Emerson U. Fullwood* | Trustee | May 17, 2018 |
Emerson U. Fullwood | ||
/s/ Amy Gutmann* | Trustee | May 17, 2018 |
Amy Gutmann | ||
/s/ JoAnn Heffernan Heisen* | Trustee | May 17, 2018 |
JoAnn Heffernan Heisen | ||
/s/ F. Joseph Loughrey* | Trustee | May 17, 2018 |
F. Joseph Loughrey | ||
/s/ Mark Loughridge* | Trustee | May 17, 2018 |
Mark Loughridge | ||
/s/ Scott C. Malpass* | Trustee | May 17, 2018 |
Scott C. Malpass | ||
/s/ Deanna Mulligan* | Trustee | May 17, 2018 |
Deanna Mulligan | ||
/s/ André F. Perold* | Trustee | May 17, 2018 |
André F. Perold | ||
/s/ Sarah Bloom Raskin* | Trustee | May 17, 2018 |
Sarah Bloom Raskin | ||
/s/ Peter F. Volanakis* | Trustee | May 17, 2018 |
Peter F. Volanakis | ||
/s/ Thomas J. Higgins* | Chief Financial Officer | May 17, 2018 |
Thomas J. Higgins |
*By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018, see File Number 33-32216, Incorporated by Reference.
INDEX TO EXHIBITS | |
XBRL Instance Document | Ex-101.INS |
XBRL Taxonomy Extension Schema Document | Ex-101.SCH |
XBRL Taxonomy Extension Calculation Linkbase Document | Ex-101.CAL |
XBRL Taxonomy Extension Definition Linkbase Document. | Ex-101.DEF |
XBRL Taxonomy Extension Labels Linkbase Document | Ex-101.LAB |
XBRL Taxonomy Extension Presentation Linkbase Document | Ex-101.PRE |
Label | Element | Value |
---|---|---|
Risk/Return: | rr_RiskReturnAbstract | |
Document Type | dei_DocumentType | 485BPOS |
Document Period End Date | dei_DocumentPeriodEndDate | Dec. 31, 2017 |
Registrant Name | dei_EntityRegistrantName | Vanguard Montgomery Funds |
Central Index Key | dei_EntityCentralIndexKey | 0001409957 |
Amendment Flag | dei_AmendmentFlag | false |
Document Creation Date | dei_DocumentCreationDate | Apr. 26, 2018 |
Document Effective Date | dei_DocumentEffectiveDate | Apr. 26, 2018 |
Prospectus Date | rr_ProspectusDate | Apr. 26, 2018 |
K#GNF,!A!," C[[\\]QQL].Q/H;;(0/WG\/ZZRW/HX\]G@ P-VWWXH/WW\?*XP8@4\_
M^1@77WD-!@P8@)=?_ =^]\AOP!C#[GOMC4TWWP*< -[Z0!!8OB>47>6EOS9RV%B"W2B#5(8((T082>/*F-I<<
ML?*QP:=,TTQ;P^JW0=X8XA-8P[:W!-Y\TK!IRR$T'5R#JE0P*)]:$GIM7$3B
M+-Y+@%:;_FW6M#53.=9E"*%Q*1C)YU-N+8$ P.3SIS49Y#ECBM @7);Z=J_5"OJU+M#I;3*&\,4>T0SKO)G,@.57WRFXY76=N#3 L3!-$Z>)]T
M87^J-J6Y'.:4_%H"D8W%15Y$RN%\]8Q[1Q%<*I/U!"$_55A6"7%S2)JX-T>H
MIJJ%#1ZUZY"N.]TIUU'607ZBV7!:_/R.\5'521&KK;E>&5>KKP1!M K CC9MV@3R#J>F9S@K"/[Y./UY+:.';6K?$US@$+2( X&Q(.B$RGHMF9IT_%E^DQJ?2 XGD@0DQY3Y/0# )P
M,AY,1_J?4L11QTJ./IY3$+$0AK<2^[IC#3$S?<4I@^7('&[2,C:GKA)AX)A4
M!'>)H2"62+@\@C()E*N9QT
MO5S[5#/.OMB$JE J!QB/!;K[X$ %B\< $6_&\N
MUEQ_8X??MU]V/@[U^_)$NY175E%I$M+.\[!M.TW24 )DB4[IB_,8YY0A(9 @
M?F=E?*(*QY928^*H'&+29@(5!^(Z&2]+JO\;54=,0DK[C !+.U9
MC(?ONAD'G7@Z F?S_ V%560YW7\>7L61@Q>@R.FWA%TWZE]RN ,>SSTV/5
M<5'$[;;+S\-/3SL?Q5(1A4(18,"0Y9;'XH4+G-)"5M'%L55C40+EGALBICFW
MFD""(> 0090(EL0^66*,52&1]-?POW3+H,O[SA2KS]^C]QU-D7XXV7GL=%
MQQ_JL/OLX[_!M%?^@6DOOX"_//$( *#2VXO[;KP&N'4R/IK^%C;>=H=D$DET+(S+JU4S3$]/#P8-
M&@0 >.(_,S%@8'?*,2*(='GFI9@JU\_A]U_//M'O/7:*SCIPJN;9H,\'H;ZX#!J!4*F&-=3; OU_\.]98
M>WWLLN^/ 0"+%R[ I1..Q"6WWX]3?[P')CWP!.Z9? 7^_=+?L=YF6[4XA0V,
M\]'$HD\Y4GLC1&JUODU#LKEC(E=2'0$@ !8(<==C 6 G=?;V7MLY^<="8.
MG7!6+/$CB+:%5 U$3/SXN%.;UT\]?#_>>.GO^-'1)Z-6JV'.K)D8.;KQ;=,_
M/?(@/O_T8QQWWF68-_<+_/?=M['!EMMBXZVWPRM_>[;IQ^R9'^-;N^SA"..6
MR\[%$:>=CV*QB$+?2_[0Y9;'XH4+D MH-SX1@5_>/%B
M3)HT">>==QX X+WWWL/JJZ]NY/;Q-V8TUY/(L!36BA $0<1.SH2&E_[Z#%[X
M\Q_P^:>P[*OEF+'
M/7Z(#;;<%M_=YT?XZ+VW=UEZ*R;!G6W61+;+']]YK^OO#,'S!R]%BLNN9:
M ( M=]@9]]\R";,^F8%=]SLXK>0&(V=E262+@T\\'0<=?ZK+?.F2'D^EF!^I
M"H'E8 S>B;]A[*0C1#CQ:S>9*D-#@K0=TSH=
M]Q@ (/)!V$':K)_]5HR;*KMQ]T5!XA-G&>97"&0()L)'R:V6OAX21$K(PD1,
M@F+BY*U]IS$-F,5RBPM*6_J$>3')2]J"DG1_%#$?4Q<"GWON.4R=.A6KK+(*
M9LV:A>NNNPZEDG^T@LB D2M;NU96(O>$KIHAM4F9; IY:]\I9&*20;9<8QUG
M>$D2HLWE)FWM7&Y!2;@_BAI
/JXXY:0S1Q++BRMK>6>2?6RH;FU]8>J$I&%
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MKJZC ^.R?HE+(C),!_4X@<$%RS%:O&MP(D!!\U
M#/R_J1S_P[0%BC,B
Retail | Vanguard Market Neutral Fund
Fund Summary
Investment Objective
The Fund seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold Investor Shares of the Fund.
Shareholder Fees
(Fees paid directly from your investment)
Sales Charge (Load) Imposed on Purchases
none
Purchase Fee
none
Sales Charge (Load) Imposed on Reinvested Dividends
none
Redemption Fee
none
Account Service Fee (for certain fund account balances below $10,000)
$ 20
[1]
[1]
/year
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Management Fees
0.19%
12b-1 Distribution Fee
none
Dividend Expenses on Securities Sold Short
1.32%
[1]
Borrowing Expenses on Securities Sold Short
none
[2],[3]
Other Operating Expenses
0.03%
Total of Other Expenses
1.35%
Total Annual Fund Operating Expenses
1.54%
[4]
[1]
When a cash dividend is declared on a stock the Fund has sold short, the Fund is required to pay an amount equal to that dividend to the party from which the Fund borrowed the stock and to record the payment of the dividend as an expense.
[2]
0.00%
[3]
In connection with its short sales, the Fund may receive income or be charged a fee on borrowed stock. This income or fee is calculated on a daily basis, based upon the market value of the borrowed stock and a variable rate that is dependent upon the availability of the stock. A net amount of fees is listed as Borrowing Expenses on Securities Sold Short.
[4]
Excluding borrowing and dividend expenses on securities sold short, the Total Annual Fund Operating Expenses are 0.22%.
Example
The following example is intended to help you compare the cost of investing in the Fund’s Investor Shares with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. This example assumes that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Retail | Vanguard Market Neutral Fund | Investor Shares | USD ($)
157
486
839
1,834
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in more taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the previous expense example, reduce the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 79% of the average value of its portfolio.
Principal Investment Strategies
The Fund follows a market neutral strategy, which the Fund defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk (sometimes referred to as beta neutrality). Beta is a measure of a portfolio’s volatility relative to the volatility of the general stock market. The Fund, as a whole, does not seek to adhere to any other definition of market neutrality.
To implement the strategy, the advisor buys securities that it believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers and sells short securities that it considers to be overvalued, in amounts that it believes will achieve market neutrality. By taking long and short positions in different securities, the Fund attempts to limit the effect of market movements on portfolio performance. The advisor does this by using a quantitative process and may, at any time, buy or sell short any number of publicly traded, exchange-listed equity securities and may emphasize specific industries, styles (growth/value), capitalization ranges, countries, or other factors. The overall performance of the Fund depends on the net performance of its long and short positions, and it is possible for the Fund to experience a net loss across all positions. If the Fund’s investment strategy is successful, however, the net performance of its long and short positions will produce long-term capital appreciation that reflects the quality of the advisor’s security selections, with limited exposure to general stock market risk.
The Fund’s long/short market neutral investment strategy is an absolute-return investment approach seeking performance that exceeds the returns of 3-month U.S. Treasury bills. An investment in the Fund, however, is different from an investment in 3-month U.S. Treasury bills because, among other things, U.S. Treasury bills are backed by the full faith and credit of the U.S. government, U.S. Treasury bills have a fixed rate of return, investors in U.S. Treasury bills have a very low risk of losing their investment, and an investment in the Fund is expected to be substantially more volatile than an investment in U.S. Treasury bills.
Because of the Fund’s market neutral strategy, the Fund’s overall price movements are not expected to correlate with the general stock market’s price movements. In other words, the Fund is expected to have returns that are independent of the returns and direction of the general stock market.
Principal Risks
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost. There can be no assurance that the Fund’s investment objective or strategies will be achieved, and results may vary substantially over time. The Fund is subject to the following risks, which could affect the Fund’s performance:
Strategy risk, which is the chance that the Fund’s investment strategy will not succeed. There is no guarantee that the Fund will be able to limit exposure to general stock market risk or produce returns that exceed the returns of 3-month U.S. Treasury bills. The Fund’s use of short sales in combination with its long positions in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. When the general stock market is performing strongly, the Fund is expected to underperform the market because the Fund’s short positions will likely lose money. If the Fund’s market neutral strategy is unsuccessful, the Fund may be subject to stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.
Short-selling risk, which is the chance that the Fund will lose money in connection with its short sales of securities. Short selling allows an investor to profit from declines in the prices of securities. To engage in a short sale, the Fund must “borrow” securities for a fee. To close out short positions, the Fund may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. There is no guarantee that the price of the borrowed securities will decline; in fact, it may rise. The Fund’s loss on a short sale is theoretically unlimited, because there is no upward limit on the price a borrowed security could attain. Short selling involves higher transaction costs than long-only investing, which could offset any gains and increase any losses.
Manager risk, which is the chance that poor security selection or strategy execution will cause the Fund to fail to achieve its investment objective or to underperform other funds with a similar investment strategy. The advisor’s security selection process may not eliminate all stock market risk factors associated with the long and short positions it establishes for the Fund. It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks it holds short increase in value, thereby increasing potential losses to the Fund. Any gain from a short position may be partially or totally offset by a decline in a long position, or vice versa.
Investment risk, which is the chance that the types of securities purchased by the Fund will, intentionally or unintentionally, increase the Fund’s sensitivity to certain investment factors. These factors may include, but are not limited to, market capitalization ranges, styles (growth/value), and industries of the underlying securities. These factors may cause the Fund to fail to achieve its investment objective of limiting exposure to general stock market risk or cause it to underperform other funds with a similar investment strategy.
Derivatives risk. The Fund may invest in derivatives, which may involve risks different from, and possibly greater than, those of investments directly in the underlying securities or assets.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Investor Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Investor Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund. Returns for the Equity Market Neutral Funds Average are derived from data provided by Lipper, a Thomson Reuters Company. Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.
Annual Total Returns — Vanguard Market Neutral Fund Investor Shares
During the periods shown in the bar chart, the highest return for a calendar quarter was 7.04% (quarter ended September 30, 2015), and the lowest return for a quarter was –6.54% (quarter ended March 31, 2009).
Average Annual Total Returns for Periods Ended December 31, 2017
Investor Shares
(4.89%)
3.10%
(0.05%)
Investor Shares | Return After Taxes on Distributions
(5.13%)
3.03%
(0.27%)
Investor Shares | Return After Taxes on Distributions and Sale of Fund Shares
(2.57%)
2.39%
(0.07%)
Citigroup 3-Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.23%
0.34%
Spliced Market Neutral Index USD (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.23%
0.34%
Citigroup 3-Month U.S. Treasury Bill Index (Daily) (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.24%
Equity Market Neutral Funds Average (reflects no deduction for taxes)
[1]
(0.53%)
0.75%
0.28%
[1]
Comparative Benchmarks
Actual after-tax returns depend on your tax situation and may differ from those shown in the preceding table. When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations. Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan. Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Label
Element
Value
Risk/Return:
rr_RiskReturnAbstract
Registrant Name
dei_EntityRegistrantName
Vanguard Montgomery Funds
Prospectus Date
rr_ProspectusDate
Apr. 26, 2018
Retail | Vanguard Market Neutral Fund
Risk/Return:
rr_RiskReturnAbstract
Risk/Return [Heading]
rr_RiskReturnHeading
Fund Summary
Objective [Heading]
rr_ObjectiveHeading
Investment Objective
Objective, Primary [Text Block]
rr_ObjectivePrimaryTextBlock
The Fund seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
Expense [Heading]
rr_ExpenseHeading
Fees and Expenses
Expense Narrative [Text Block]
rr_ExpenseNarrativeTextBlock
The following table describes the fees and expenses you may pay if you buy and hold Investor Shares of the Fund.
Shareholder Fees Caption [Text]
rr_ShareholderFeesCaption
Shareholder Fees
(Fees paid directly from your investment)
Operating Expenses Caption [Text]
rr_OperatingExpensesCaption
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Portfolio Turnover [Heading]
rr_PortfolioTurnoverHeading
Portfolio Turnover
Portfolio Turnover [Text Block]
rr_PortfolioTurnoverTextBlock
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in more taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the previous expense example, reduce the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 79% of the average value of its portfolio.
Portfolio Turnover, Rate
rr_PortfolioTurnoverRate
79.00%
Expense Example [Heading]
rr_ExpenseExampleHeading
Example
Expense Example Narrative [Text Block]
rr_ExpenseExampleNarrativeTextBlock
The following example is intended to help you compare the cost of investing in the Fund’s Investor Shares with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. This example assumes that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading]
rr_StrategyHeading
Principal Investment Strategies
Strategy Narrative [Text Block]
rr_StrategyNarrativeTextBlock
The Fund follows a market neutral strategy, which the Fund defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk (sometimes referred to as beta neutrality). Beta is a measure of a portfolio’s volatility relative to the volatility of the general stock market. The Fund, as a whole, does not seek to adhere to any other definition of market neutrality.
To implement the strategy, the advisor buys securities that it believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers and sells short securities that it considers to be overvalued, in amounts that it believes will achieve market neutrality. By taking long and short positions in different securities, the Fund attempts to limit the effect of market movements on portfolio performance. The advisor does this by using a quantitative process and may, at any time, buy or sell short any number of publicly traded, exchange-listed equity securities and may emphasize specific industries, styles (growth/value), capitalization ranges, countries, or other factors. The overall performance of the Fund depends on the net performance of its long and short positions, and it is possible for the Fund to experience a net loss across all positions. If the Fund’s investment strategy is successful, however, the net performance of its long and short positions will produce long-term capital appreciation that reflects the quality of the advisor’s security selections, with limited exposure to general stock market risk.
The Fund’s long/short market neutral investment strategy is an absolute-return investment approach seeking performance that exceeds the returns of 3-month U.S. Treasury bills. An investment in the Fund, however, is different from an investment in 3-month U.S. Treasury bills because, among other things, U.S. Treasury bills are backed by the full faith and credit of the U.S. government, U.S. Treasury bills have a fixed rate of return, investors in U.S. Treasury bills have a very low risk of losing their investment, and an investment in the Fund is expected to be substantially more volatile than an investment in U.S. Treasury bills.
Because of the Fund’s market neutral strategy, the Fund’s overall price movements are not expected to correlate with the general stock market’s price movements. In other words, the Fund is expected to have returns that are independent of the returns and direction of the general stock market.
Risk [Heading]
rr_RiskHeading
Principal Risks
Risk Narrative [Text Block]
rr_RiskNarrativeTextBlock
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost. There can be no assurance that the Fund’s investment objective or strategies will be achieved, and results may vary substantially over time. The Fund is subject to the following risks, which could affect the Fund’s performance:
Strategy risk, which is the chance that the Fund’s investment strategy will not succeed. There is no guarantee that the Fund will be able to limit exposure to general stock market risk or produce returns that exceed the returns of 3-month U.S. Treasury bills. The Fund’s use of short sales in combination with its long positions in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. When the general stock market is performing strongly, the Fund is expected to underperform the market because the Fund’s short positions will likely lose money. If the Fund’s market neutral strategy is unsuccessful, the Fund may be subject to stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.
Short-selling risk, which is the chance that the Fund will lose money in connection with its short sales of securities. Short selling allows an investor to profit from declines in the prices of securities. To engage in a short sale, the Fund must “borrow” securities for a fee. To close out short positions, the Fund may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. There is no guarantee that the price of the borrowed securities will decline; in fact, it may rise. The Fund’s loss on a short sale is theoretically unlimited, because there is no upward limit on the price a borrowed security could attain. Short selling involves higher transaction costs than long-only investing, which could offset any gains and increase any losses.
Manager risk, which is the chance that poor security selection or strategy execution will cause the Fund to fail to achieve its investment objective or to underperform other funds with a similar investment strategy. The advisor’s security selection process may not eliminate all stock market risk factors associated with the long and short positions it establishes for the Fund. It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks it holds short increase in value, thereby increasing potential losses to the Fund. Any gain from a short position may be partially or totally offset by a decline in a long position, or vice versa.
Investment risk, which is the chance that the types of securities purchased by the Fund will, intentionally or unintentionally, increase the Fund’s sensitivity to certain investment factors. These factors may include, but are not limited to, market capitalization ranges, styles (growth/value), and industries of the underlying securities. These factors may cause the Fund to fail to achieve its investment objective of limiting exposure to general stock market risk or cause it to underperform other funds with a similar investment strategy.
Derivatives risk. The Fund may invest in derivatives, which may involve risks different from, and possibly greater than, those of investments directly in the underlying securities or assets.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Risk Lose Money [Text]
rr_RiskLoseMoney
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost.
Risk Not Insured Depository Institution [Text]
rr_RiskNotInsuredDepositoryInstitution
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Bar Chart and Performance Table [Heading]
rr_BarChartAndPerformanceTableHeading
Annual Total Returns
Performance Narrative [Text Block]
rr_PerformanceNarrativeTextBlock
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Investor Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Investor Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund. Returns for the Equity Market Neutral Funds Average are derived from data provided by Lipper, a Thomson Reuters Company. Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.
Performance Information Illustrates Variability of Returns [Text]
rr_PerformanceInformationIllustratesVariabilityOfReturns
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Investor Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Investor Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund.
Performance Availability Phone [Text]
rr_PerformanceAvailabilityPhone
800-662-7447
Performance Availability Website Address [Text]
rr_PerformanceAvailabilityWebSiteAddress
vanguard.com/performance
Performance Past Does Not Indicate Future [Text]
rr_PerformancePastDoesNotIndicateFuture
Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future.
Bar Chart [Heading]
rr_BarChartHeading
Annual Total Returns — Vanguard Market Neutral Fund Investor Shares
Bar Chart Closing [Text Block]
rr_BarChartClosingTextBlock
During the periods shown in the bar chart, the highest return for a calendar quarter was 7.04% (quarter ended September 30, 2015), and the lowest return for a quarter was –6.54% (quarter ended March 31, 2009).
Performance Table Heading
rr_PerformanceTableHeading
Average Annual Total Returns for Periods Ended December 31, 2017
Performance Table Uses Highest Federal Rate
rr_PerformanceTableUsesHighestFederalRate
When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations.
Performance Table Not Relevant to Tax Deferred
rr_PerformanceTableNotRelevantToTaxDeferred
Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan.
Performance Table Explanation after Tax Higher
rr_PerformanceTableExplanationAfterTaxHigher
Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Performance Table Narrative
rr_PerformanceTableNarrativeTextBlock
Actual after-tax returns depend on your tax situation and may differ from those shown in the preceding table. When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations. Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan. Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Retail | Vanguard Market Neutral Fund | Investor Shares
Risk/Return:
rr_RiskReturnAbstract
Purchase Fee
rr_MaximumCumulativeSalesChargeOverOther
none
Sales Charge (Load) Imposed on Purchases
rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice
none
Sales Charge (Load) Imposed on Reinvested Dividends
rr_MaximumSalesChargeOnReinvestedDividendsAndDistributionsOverOther
none
Redemption Fee
rr_RedemptionFeeOverRedemption
none
Account Service Fee (for certain fund account balances below $10,000)
rr_MaximumAccountFee
$ 20
[1]
Management Fees
rr_ManagementFeesOverAssets
0.19%
12b-1 Distribution Fee
rr_DistributionAndService12b1FeesOverAssets
none
Dividend Expenses on Securities Sold Short
rr_Component1OtherExpensesOverAssets
1.32%
[2]
Borrowing Expenses on Securities Sold Short
rr_Component2OtherExpensesOverAssets
none
[3],[4]
Other Operating Expenses
rr_Component3OtherExpensesOverAssets
0.03%
Total of Other Expenses
rr_OtherExpensesOverAssets
1.35%
Total Annual Fund Operating Expenses
rr_ExpensesOverAssets
1.54%
[5]
1 Year
rr_ExpenseExampleYear01
$ 157
3 Years
rr_ExpenseExampleYear03
486
5 Years
rr_ExpenseExampleYear05
839
10 Years
rr_ExpenseExampleYear10
1,834
1 Year
rr_ExpenseExampleNoRedemptionYear01
157
3 Years
rr_ExpenseExampleNoRedemptionYear03
486
5 Years
rr_ExpenseExampleNoRedemptionYear05
839
10 Years
rr_ExpenseExampleNoRedemptionYear10
$ 1,834
2008
rr_AnnualReturn2008
(8.24%)
2009
rr_AnnualReturn2009
(11.38%)
2010
rr_AnnualReturn2010
(1.03%)
2011
rr_AnnualReturn2011
7.80%
2012
rr_AnnualReturn2012
(1.50%)
2013
rr_AnnualReturn2013
8.59%
2014
rr_AnnualReturn2014
4.26%
2015
rr_AnnualReturn2015
5.41%
2016
rr_AnnualReturn2016
2.62%
2017
rr_AnnualReturn2017
(4.89%)
Highest Quarterly Return, Label
rr_HighestQuarterlyReturnLabel
highest return
Highest Quarterly Return, Date
rr_BarChartHighestQuarterlyReturnDate
Sep. 30, 2015
Highest Quarterly Return
rr_BarChartHighestQuarterlyReturn
7.04%
Lowest Quarterly Return, Label
rr_LowestQuarterlyReturnLabel
lowest return
Lowest Quarterly Return, Date
rr_BarChartLowestQuarterlyReturnDate
Mar. 31, 2009
Lowest Quarterly Return
rr_BarChartLowestQuarterlyReturn
(6.54%)
1 Year
rr_AverageAnnualReturnYear01
(4.89%)
5 Years
rr_AverageAnnualReturnYear05
3.10%
10 Years
rr_AverageAnnualReturnYear10
(0.05%)
Retail | Vanguard Market Neutral Fund | Return After Taxes on Distributions | Investor Shares
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(5.13%)
5 Years
rr_AverageAnnualReturnYear05
3.03%
10 Years
rr_AverageAnnualReturnYear10
(0.27%)
Retail | Vanguard Market Neutral Fund | Return After Taxes on Distributions and Sale of Fund Shares | Investor Shares
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(2.57%)
5 Years
rr_AverageAnnualReturnYear05
2.39%
10 Years
rr_AverageAnnualReturnYear10
(0.07%)
Retail | Vanguard Market Neutral Fund | Citigroup 3-Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.23%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.34%
[6]
Retail | Vanguard Market Neutral Fund | Spliced Market Neutral Index USD (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.23%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.34%
[6]
Retail | Vanguard Market Neutral Fund | Citigroup 3-Month U.S. Treasury Bill Index (Daily) (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.24%
[6]
10 Years
rr_AverageAnnualReturnYear10
[6]
Retail | Vanguard Market Neutral Fund | Equity Market Neutral Funds Average (reflects no deduction for taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(0.53%)
[6]
5 Years
rr_AverageAnnualReturnYear05
0.75%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.28%
[6]
[1]
/year
[2]
When a cash dividend is declared on a stock the Fund has sold short, the Fund is required to pay an amount equal to that dividend to the party from which the Fund borrowed the stock and to record the payment of the dividend as an expense.
[3]
0.00%
[4]
In connection with its short sales, the Fund may receive income or be charged a fee on borrowed stock. This income or fee is calculated on a daily basis, based upon the market value of the borrowed stock and a variable rate that is dependent upon the availability of the stock. A net amount of fees is listed as Borrowing Expenses on Securities Sold Short.
[5]
Excluding borrowing and dividend expenses on securities sold short, the Total Annual Fund Operating Expenses are 0.22%.
[6]
Comparative Benchmarks
[E)-
M&1PZ8 #6&3U:G:8H_5%<\[9?7D?I
>)
MF?
WONAYUVWQL <-9/]\>3?_JF<4=Y @ $E$
M050]?KC_(34W0T>,Q$53;\/Z&V\& /C-M*OQS4VW! #\X>Y;T+M?/QQQ\IGH
M[%B*HW;;'O<_^QH^?O\=M!6+^,GQI^*&R\;C_5DS,7+TQT[^VX_+;?II]0
M0@NM"20(HD).!JZ6(LS6Y[R1Z%EZ#49.RFB]C3:M*8 P$T3O?KT=;@9_;5U
M:PI@J:L+;[SR(K;>\7L @!>?>AP;;S4. -"G7W\,'#P$,U][!7WZ]D/'DL4
M*HIFGW[].DB3CV[ L=5D8B>W)K":3U$@01DV9>6];,-'.Y-? Q*EF09MIF
MOOHR>O;JC1U_L*?6S1,/WH\?[GM03:ZO%GV./GWZU7[W[M,/B[_X'%N,VP&;
M;KT=[KWA&FPQ;@=\_.XL#!D^ IU+E^".:R]#W_X#<,BQI]0]3:U ZZX))"V0
M(.(198T2M;GL:99R2TJF--.6JZW6P9GU^JOX\_V_P24WWNT9Y].//H3KIC]4
M#9B[E?$V6OBU,>HV,J@<[U<
M)6PSMHDW&ESZ;CWWN=<$ K8ET+IGPMX1[ Q/3B-!$ 1!U)\5*U;@YFF_QK)E
M';CCEIMPZ$^/PGKK;X!3?OXS_/RD4_'#/?;$Y5==@QM_/14SWWH3GRV8CSU_
MM"^VW6Y[?/S1A[A_QKUXZ\TWP#G'S#??P.5775L+VS1-_&K\!;CAMCL! /L=
M># F7WHQ7OW/*TI%M!%AG//IJVLK5M)7!UMX(Q2,O32UM
M!$$0!-&,+%^^'&.@ ='9VAM:+
G;W/YCXQB@6=>L/G:WK2C_
M4/,S6E__;Z/KPT,YP$3KZ[_$V6EW1NG-KM\V:DOZ^&3VI=DQ91:W* :9^FC?
M-ZJ#/@Z9_*WBU*^GWTY.6/45_C1VVIQ1WV"VC
Institutional | Vanguard Market Neutral Fund
Fund Summary
Investment Objective
The Fund seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
Fees and Expenses
The following table describes the fees and expenses you may pay if you buy and hold Institutional Shares of the Fund.
Shareholder Fees
(Fees paid directly from your investment)
Sales Charge (Load) Imposed on Purchases
none
Purchase Fee
none
Sales Charge (Load) Imposed on Reinvested Dividends
none
Redemption Fee
none
Account Service Fee (for certain fund account balances below $10,000)
$ 20
[1]
[1]
/year
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Management Fees
0.13%
12b-1 Distribution Fee
none
Dividend Expenses on Securities Sold Short
1.32%
[1]
Borrowing Expenses on Securities Sold Short
none
[2],[3]
Other Operating Expenses
0.01%
Total of Other Expenses
1.33%
Total Annual Fund Operating Expenses
1.46%
[4]
[1]
When a cash dividend is declared on a stock the Fund has sold short, the Fund is required to pay an amount equal to that dividend to the party from which the Fund borrowed the stock and to record the payment of the dividend as an expense.
[2]
0.00%
[3]
In connection with its short sales, the Fund may receive income or be charged a fee on borrowed stock. This income or fee is calculated on a daily basis, based upon the market value of the borrowed stock and a variable rate that is dependent upon the availability of the stock. A net amount of fees is listed as Borrowing Expenses on Securities Sold Short.
[4]
Excluding borrowing and dividend expenses on securities sold short, the Total Annual Fund Operating Expenses are 0.14%.
Example
The following example is intended to help you compare the cost of investing in the Fund’s Institutional Shares with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. This example assumes that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Institutional | Vanguard Market Neutral Fund | Institutional Shares | USD ($)
149
462
797
1,746
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in more taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the previous expense example, reduce the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 79% of the average value of its portfolio.
Principal Investment Strategies
The Fund follows a market neutral strategy, which the Fund defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk (sometimes referred to as beta neutrality). Beta is a measure of a portfolio’s volatility relative to the volatility of the general stock market. The Fund, as a whole, does not seek to adhere to any other definition of market neutrality.
To implement the strategy, the advisor buys securities that it believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers and sells short securities that it considers to be overvalued, in amounts that it believes will achieve market neutrality. By taking long and short positions in different securities, the Fund attempts to limit the effect of market movements on portfolio performance. The advisor does this by using a quantitative process and may, at any time, buy or sell short any number of publicly traded, exchange-listed equity securities and may emphasize specific industries, styles (growth/value), capitalization ranges, countries, or other factors. The overall performance of the Fund depends on the net performance of its long and short positions, and it is possible for the Fund to experience a net loss across all positions. If the Fund’s investment strategy is successful, however, the net performance of its long and short positions will produce long-term capital appreciation that reflects the quality of the advisor’s security selections, with limited exposure to general stock market risk.
The Fund’s long/short market neutral investment strategy is an absolute-return investment approach seeking performance that exceeds the returns of 3-month U.S. Treasury bills. An investment in the Fund, however, is different from an investment in 3-month U.S. Treasury bills because, among other things, U.S. Treasury bills are backed by the full faith and credit of the U.S. government, U.S. Treasury bills have a fixed rate of return, investors in U.S. Treasury bills have a very low risk of losing their investment, and an investment in the Fund is expected to be substantially more volatile than an investment in U.S. Treasury bills.
Because of the Fund’s market neutral strategy, the Fund’s overall price movements are not expected to correlate with the general stock market’s price movements. In other words, the Fund is expected to have returns that are independent of the returns and direction of the general stock market.
Principal Risks
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost. There can be no assurance that the Fund’s investment objective or strategies will be achieved, and results may vary substantially over time. The Fund is subject to the following risks, which could affect the Fund’s performance:
Strategy risk, which is the chance that the Fund’s investment strategy will not succeed. There is no guarantee that the Fund will be able to limit exposure to general stock market risk or produce returns that exceed the returns of 3-month U.S. Treasury bills. The Fund’s use of short sales in combination with its long positions in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. When the general stock market is performing strongly, the Fund is expected to underperform the market because the Fund’s short positions will likely lose money. If the Fund’s market neutral strategy is unsuccessful, the Fund may be subject to stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.
Short-selling risk, which is the chance that the Fund will lose money in connection with its short sales of securities. Short selling allows an investor to profit from declines in the prices of securities. To engage in a short sale, the Fund must “borrow” securities for a fee. To close out short positions, the Fund may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. There is no guarantee that the price of the borrowed securities will decline; in fact, it may rise. The Fund’s loss on a short sale is theoretically unlimited, because there is no upward limit on the price a borrowed security could attain. Short selling involves higher transaction costs than long-only investing, which could offset any gains and increase any losses.
Manager risk, which is the chance that poor security selection or strategy execution will cause the Fund to fail to achieve its investment objective or to underperform other funds with a similar investment strategy. The advisor’s security selection process may not eliminate all stock market risk factors associated with the long and short positions it establishes for the Fund. It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks it holds short increase in value, thereby increasing potential losses to the Fund. Any gain from a short position may be partially or totally offset by a decline in a long position, or vice versa.
Investment risk, which is the chance that the types of securities purchased by the Fund will, intentionally or unintentionally, increase the Fund’s sensitivity to certain investment factors. These factors may include, but are not limited to, market capitalization ranges, styles (growth/value), and industries of the underlying securities. These factors may cause the Fund to fail to achieve its investment objective of limiting exposure to general stock market risk or cause it to underperform other funds with a similar investment strategy.
Derivatives risk. The Fund may invest in derivatives, which may involve risks different from, and possibly greater than, those of investments directly in the underlying securities or assets.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Annual Total Returns
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Institutional Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Institutional Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund. Returns for the Equity Market Neutral Funds Average are derived from data provided by Lipper, a Thomson Reuters Company. Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.
Annual Total Returns — Vanguard Market Neutral Fund Institutional Shares
During the periods shown in the bar chart, the highest return for a calendar quarter was 7.16% (quarter ended September 30, 2015), and the lowest return for a quarter was –6.53% (quarter ended March 31, 2009).
Average Annual Total Returns for Periods Ended December 31, 2017
Institutional Shares
(4.83%)
3.18%
0.03%
Institutional Shares | Return After Taxes on Distributions
(5.09%)
3.10%
(0.20%)
Institutional Shares | Return After Taxes on Distributions and Sale of Fund Shares
(2.52%)
2.46%
(0.01%)
Citigroup 3-Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.23%
0.34%
Spliced Market Neutral Index USD (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.23%
0.34%
Citigroup 3-Month U.S. Treasury Bill Index (Daily) (reflects no deduction for fees, expenses, or taxes)
[1]
0.84%
0.24%
Equity Market Neutral Funds Average (reflects no deduction for taxes)
[1]
(0.53%)
0.75%
0.28%
[1]
Comparative Benchmarks
Actual after-tax returns depend on your tax situation and may differ from those shown in the preceding table. When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations. Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan. Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Label
Element
Value
Risk/Return:
rr_RiskReturnAbstract
Registrant Name
dei_EntityRegistrantName
Vanguard Montgomery Funds
Prospectus Date
rr_ProspectusDate
Apr. 26, 2018
Institutional | Vanguard Market Neutral Fund
Risk/Return:
rr_RiskReturnAbstract
Risk/Return [Heading]
rr_RiskReturnHeading
Fund Summary
Objective [Heading]
rr_ObjectiveHeading
Investment Objective
Objective, Primary [Text Block]
rr_ObjectivePrimaryTextBlock
The Fund seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
Expense [Heading]
rr_ExpenseHeading
Fees and Expenses
Expense Narrative [Text Block]
rr_ExpenseNarrativeTextBlock
The following table describes the fees and expenses you may pay if you buy and hold Institutional Shares of the Fund.
Shareholder Fees Caption [Text]
rr_ShareholderFeesCaption
Shareholder Fees
(Fees paid directly from your investment)
Operating Expenses Caption [Text]
rr_OperatingExpensesCaption
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)
Portfolio Turnover [Heading]
rr_PortfolioTurnoverHeading
Portfolio Turnover
Portfolio Turnover [Text Block]
rr_PortfolioTurnoverTextBlock
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in more taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the previous expense example, reduce the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 79% of the average value of its portfolio.
Portfolio Turnover, Rate
rr_PortfolioTurnoverRate
79.00%
Expense Example [Heading]
rr_ExpenseExampleHeading
Example
Expense Example Narrative [Text Block]
rr_ExpenseExampleNarrativeTextBlock
The following example is intended to help you compare the cost of investing in the Fund’s Institutional Shares with the cost of investing in other mutual funds. It illustrates the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. This example assumes that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
Strategy [Heading]
rr_StrategyHeading
Principal Investment Strategies
Strategy Narrative [Text Block]
rr_StrategyNarrativeTextBlock
The Fund follows a market neutral strategy, which the Fund defines as a strategy designed to produce a portfolio that is neutral with respect to general stock market risk (sometimes referred to as beta neutrality). Beta is a measure of a portfolio’s volatility relative to the volatility of the general stock market. The Fund, as a whole, does not seek to adhere to any other definition of market neutrality.
To implement the strategy, the advisor buys securities that it believes offer an appropriate balance between strong growth prospects and reasonable valuations relative to their industry peers and sells short securities that it considers to be overvalued, in amounts that it believes will achieve market neutrality. By taking long and short positions in different securities, the Fund attempts to limit the effect of market movements on portfolio performance. The advisor does this by using a quantitative process and may, at any time, buy or sell short any number of publicly traded, exchange-listed equity securities and may emphasize specific industries, styles (growth/value), capitalization ranges, countries, or other factors. The overall performance of the Fund depends on the net performance of its long and short positions, and it is possible for the Fund to experience a net loss across all positions. If the Fund’s investment strategy is successful, however, the net performance of its long and short positions will produce long-term capital appreciation that reflects the quality of the advisor’s security selections, with limited exposure to general stock market risk.
The Fund’s long/short market neutral investment strategy is an absolute-return investment approach seeking performance that exceeds the returns of 3-month U.S. Treasury bills. An investment in the Fund, however, is different from an investment in 3-month U.S. Treasury bills because, among other things, U.S. Treasury bills are backed by the full faith and credit of the U.S. government, U.S. Treasury bills have a fixed rate of return, investors in U.S. Treasury bills have a very low risk of losing their investment, and an investment in the Fund is expected to be substantially more volatile than an investment in U.S. Treasury bills.
Because of the Fund’s market neutral strategy, the Fund’s overall price movements are not expected to correlate with the general stock market’s price movements. In other words, the Fund is expected to have returns that are independent of the returns and direction of the general stock market.
Risk [Heading]
rr_RiskHeading
Principal Risks
Risk Narrative [Text Block]
rr_RiskNarrativeTextBlock
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost. There can be no assurance that the Fund’s investment objective or strategies will be achieved, and results may vary substantially over time. The Fund is subject to the following risks, which could affect the Fund’s performance:
Strategy risk, which is the chance that the Fund’s investment strategy will not succeed. There is no guarantee that the Fund will be able to limit exposure to general stock market risk or produce returns that exceed the returns of 3-month U.S. Treasury bills. The Fund’s use of short sales in combination with its long positions in an attempt to improve performance or to reduce overall portfolio risk may not be successful and may result in greater losses or lower positive returns than if the Fund held only long positions. When the general stock market is performing strongly, the Fund is expected to underperform the market because the Fund’s short positions will likely lose money. If the Fund’s market neutral strategy is unsuccessful, the Fund may be subject to stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices.
Short-selling risk, which is the chance that the Fund will lose money in connection with its short sales of securities. Short selling allows an investor to profit from declines in the prices of securities. To engage in a short sale, the Fund must “borrow” securities for a fee. To close out short positions, the Fund may have to sell related long positions at disadvantageous times to produce cash to unwind a short position. There is no guarantee that the price of the borrowed securities will decline; in fact, it may rise. The Fund’s loss on a short sale is theoretically unlimited, because there is no upward limit on the price a borrowed security could attain. Short selling involves higher transaction costs than long-only investing, which could offset any gains and increase any losses.
Manager risk, which is the chance that poor security selection or strategy execution will cause the Fund to fail to achieve its investment objective or to underperform other funds with a similar investment strategy. The advisor’s security selection process may not eliminate all stock market risk factors associated with the long and short positions it establishes for the Fund. It is possible that the stocks the Fund holds long will decline in value at the same time that the stocks it holds short increase in value, thereby increasing potential losses to the Fund. Any gain from a short position may be partially or totally offset by a decline in a long position, or vice versa.
Investment risk, which is the chance that the types of securities purchased by the Fund will, intentionally or unintentionally, increase the Fund’s sensitivity to certain investment factors. These factors may include, but are not limited to, market capitalization ranges, styles (growth/value), and industries of the underlying securities. These factors may cause the Fund to fail to achieve its investment objective of limiting exposure to general stock market risk or cause it to underperform other funds with a similar investment strategy.
Derivatives risk. The Fund may invest in derivatives, which may involve risks different from, and possibly greater than, those of investments directly in the underlying securities or assets.
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Risk Lose Money [Text]
rr_RiskLoseMoney
An investment in the Fund could lose money over short or long periods of time, and the entire amount invested could be lost.
Risk Not Insured Depository Institution [Text]
rr_RiskNotInsuredDepositoryInstitution
An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Bar Chart and Performance Table [Heading]
rr_BarChartAndPerformanceTableHeading
Annual Total Returns
Performance Narrative [Text Block]
rr_PerformanceNarrativeTextBlock
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Institutional Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Institutional Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund. Returns for the Equity Market Neutral Funds Average are derived from data provided by Lipper, a Thomson Reuters Company. Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future. Updated performance information is available on our website at vanguard.com/performance or by calling Vanguard toll-free at 800-662-7447.
Performance Information Illustrates Variability of Returns [Text]
rr_PerformanceInformationIllustratesVariabilityOfReturns
The following bar chart and table are intended to help you understand the risks of investing in the Fund. The bar chart shows how the performance of the Fund‘s Institutional Shares has varied from one calendar year to another over the periods shown. The table shows how the average annual total returns of the Institutional Shares compare with those of a relevant market index and other comparative benchmarks, which have investment characteristics similar to those of the Fund.
Performance Availability Phone [Text]
rr_PerformanceAvailabilityPhone
800-662-7447
Performance Availability Website Address [Text]
rr_PerformanceAvailabilityWebSiteAddress
vanguard.com/performance
Performance Past Does Not Indicate Future [Text]
rr_PerformancePastDoesNotIndicateFuture
Keep in mind that the Fund’s past performance (before and after taxes) does not indicate how the Fund will perform in the future.
Bar Chart [Heading]
rr_BarChartHeading
Annual Total Returns — Vanguard Market Neutral Fund Institutional Shares
Bar Chart Closing [Text Block]
rr_BarChartClosingTextBlock
During the periods shown in the bar chart, the highest return for a calendar quarter was 7.16% (quarter ended September 30, 2015), and the lowest return for a quarter was –6.53% (quarter ended March 31, 2009).
Performance Table Heading
rr_PerformanceTableHeading
Average Annual Total Returns for Periods Ended December 31, 2017
Performance Table Uses Highest Federal Rate
rr_PerformanceTableUsesHighestFederalRate
When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations.
Performance Table Not Relevant to Tax Deferred
rr_PerformanceTableNotRelevantToTaxDeferred
Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan.
Performance Table Explanation after Tax Higher
rr_PerformanceTableExplanationAfterTaxHigher
Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Performance Table Narrative
rr_PerformanceTableNarrativeTextBlock
Actual after-tax returns depend on your tax situation and may differ from those shown in the preceding table. When after-tax returns are calculated, it is assumed that the shareholder was in the highest individual federal marginal income tax bracket at the time of each distribution of income or capital gains or upon redemption. State and local income taxes are not reflected in the calculations. Please note that after-tax returns are not relevant for a shareholder who holds fund shares in a tax-deferred account, such as an individual retirement account or a 401(k) plan. Also, figures captioned Return After Taxes on Distributions and Sale of Fund Shares may be higher than other figures for the same period if a capital loss occurs upon redemption and results in an assumed tax deduction for the shareholder.
Institutional | Vanguard Market Neutral Fund | Institutional Shares
Risk/Return:
rr_RiskReturnAbstract
Purchase Fee
rr_MaximumCumulativeSalesChargeOverOther
none
Sales Charge (Load) Imposed on Purchases
rr_MaximumSalesChargeImposedOnPurchasesOverOfferingPrice
none
Sales Charge (Load) Imposed on Reinvested Dividends
rr_MaximumSalesChargeOnReinvestedDividendsAndDistributionsOverOther
none
Redemption Fee
rr_RedemptionFeeOverRedemption
none
Account Service Fee (for certain fund account balances below $10,000)
rr_MaximumAccountFee
$ 20
[1]
Management Fees
rr_ManagementFeesOverAssets
0.13%
12b-1 Distribution Fee
rr_DistributionAndService12b1FeesOverAssets
none
Dividend Expenses on Securities Sold Short
rr_Component1OtherExpensesOverAssets
1.32%
[2]
Borrowing Expenses on Securities Sold Short
rr_Component2OtherExpensesOverAssets
none
[3],[4]
Other Operating Expenses
rr_Component3OtherExpensesOverAssets
0.01%
Total of Other Expenses
rr_OtherExpensesOverAssets
1.33%
Total Annual Fund Operating Expenses
rr_ExpensesOverAssets
1.46%
[5]
1 Year
rr_ExpenseExampleYear01
$ 149
3 Years
rr_ExpenseExampleYear03
462
5 Years
rr_ExpenseExampleYear05
797
10 Years
rr_ExpenseExampleYear10
1,746
1 Year
rr_ExpenseExampleNoRedemptionYear01
149
3 Years
rr_ExpenseExampleNoRedemptionYear03
462
5 Years
rr_ExpenseExampleNoRedemptionYear05
797
10 Years
rr_ExpenseExampleNoRedemptionYear10
$ 1,746
2008
rr_AnnualReturn2008
(8.27%)
2009
rr_AnnualReturn2009
(11.31%)
2010
rr_AnnualReturn2010
(0.93%)
2011
rr_AnnualReturn2011
7.94%
2012
rr_AnnualReturn2012
(1.39%)
2013
rr_AnnualReturn2013
8.66%
2014
rr_AnnualReturn2014
4.38%
2015
rr_AnnualReturn2015
5.52%
2016
rr_AnnualReturn2016
2.70%
2017
rr_AnnualReturn2017
(4.83%)
Highest Quarterly Return, Label
rr_HighestQuarterlyReturnLabel
highest return
Highest Quarterly Return, Date
rr_BarChartHighestQuarterlyReturnDate
Sep. 30, 2015
Highest Quarterly Return
rr_BarChartHighestQuarterlyReturn
7.16%
Lowest Quarterly Return, Label
rr_LowestQuarterlyReturnLabel
lowest return
Lowest Quarterly Return, Date
rr_BarChartLowestQuarterlyReturnDate
Mar. 31, 2009
Lowest Quarterly Return
rr_BarChartLowestQuarterlyReturn
(6.53%)
1 Year
rr_AverageAnnualReturnYear01
(4.83%)
5 Years
rr_AverageAnnualReturnYear05
3.18%
10 Years
rr_AverageAnnualReturnYear10
0.03%
Institutional | Vanguard Market Neutral Fund | Return After Taxes on Distributions | Institutional Shares
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(5.09%)
5 Years
rr_AverageAnnualReturnYear05
3.10%
10 Years
rr_AverageAnnualReturnYear10
(0.20%)
Institutional | Vanguard Market Neutral Fund | Return After Taxes on Distributions and Sale of Fund Shares | Institutional Shares
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(2.52%)
5 Years
rr_AverageAnnualReturnYear05
2.46%
10 Years
rr_AverageAnnualReturnYear10
(0.01%)
Institutional | Vanguard Market Neutral Fund | Citigroup 3-Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.23%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.34%
[6]
Institutional | Vanguard Market Neutral Fund | Spliced Market Neutral Index USD (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.23%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.34%
[6]
Institutional | Vanguard Market Neutral Fund | Citigroup 3-Month U.S. Treasury Bill Index (Daily) (reflects no deduction for fees, expenses, or taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
0.84%
[6]
5 Years
rr_AverageAnnualReturnYear05
0.24%
[6]
10 Years
rr_AverageAnnualReturnYear10
[6]
Institutional | Vanguard Market Neutral Fund | Equity Market Neutral Funds Average (reflects no deduction for taxes)
Risk/Return:
rr_RiskReturnAbstract
1 Year
rr_AverageAnnualReturnYear01
(0.53%)
[6]
5 Years
rr_AverageAnnualReturnYear05
0.75%
[6]
10 Years
rr_AverageAnnualReturnYear10
0.28%
[6]
[1]
/year
[2]
When a cash dividend is declared on a stock the Fund has sold short, the Fund is required to pay an amount equal to that dividend to the party from which the Fund borrowed the stock and to record the payment of the dividend as an expense.
[3]
0.00%
[4]
In connection with its short sales, the Fund may receive income or be charged a fee on borrowed stock. This income or fee is calculated on a daily basis, based upon the market value of the borrowed stock and a variable rate that is dependent upon the availability of the stock. A net amount of fees is listed as Borrowing Expenses on Securities Sold Short.
[5]
Excluding borrowing and dividend expenses on securities sold short, the Total Annual Fund Operating Expenses are 0.14%.
[6]
Comparative Benchmarks
Label
Element
Value
Risk/Return:
rr_RiskReturnAbstract
Registrant Name
dei_EntityRegistrantName
Vanguard Montgomery Funds
Prospectus Date
rr_ProspectusDate
Apr. 26, 2018
Document Creation Date
dei_DocumentCreationDate
Apr. 26, 2018
;&=-GS=?2/7J5I,(YLU:? B\O
M\O9P 71L0J9;2("4(*PE?AE%R&9KA5)640%PY?P[+'A@P6\/2QX%!;$27"LC
M'+G9J5I_>JH^(3]%2FS?K^2FJ&K].:KZA"1U-Q3+S5/5^A-5]0F9ZDXHIN7F
MJEK]N:KVA%QU-Q3+S5:U^K-5[0G9ZFXHEINO:O7GJ]H3\M7=4"PW8]7JSUBU
M)V2LNZ%8;LZJU9^S:D_(67=#L=RL5:L_:]6>D+7NAF*YFU%:_;M1VA.VHW9#
ML=R87ZL_YM>:&O,/LKYR@Y-ANSH_N8V4>I-EV[.3[=G)S4[PU*\CWP
L
M) 5O,?-CMDL&_!G"82<@(,.2!,#(I9SN$'\P!3CL\!D>E(1_C0>$;1DY,[K[
M#=K@W$&8R%S
MKAW,]<+%.R%>_?T?Y>?ZLL9:%0BNU$YIM',@V9S3YY>[;3;M2T,=VF&MP/
MT=ZGNK4!5#L&-2Z #W_@0@[J%5\+E"E&Z0I2.92UG65KIJMPTD-(
M&MOKDS7M0CMYK&U>/T%>S6*!=LQ:M1VOK]K*9Y1QYO53!O0Q>[W9,1X/".#SP7CNF!