“But Vanguard is finally done with the nudges and incentives,” DeMaso added, noting one Vanguard investor holding physical mutual fund shares was told to return them or his shares would not be eligible for transition to the new platform.
“Vanguard may call it an ‘upgrade’ on its transition website, but for anyone still holding on to a legacy mutual fund account or shares, this is an unwelcome change — and you don’t have a choice in the matter,” DeMaso wrote.
For customers who do nothing, “Vanguard will simply transition your account to its brokerage platform, whether you like it or not,” he said.
Investors also can take their money to a different provider, like Fidelity, Schwab or E-Trade, or can request a distribution — selling their shares, which could bring tax implications, DeMaso noted.
The Vanguard Brokerage Account “is a modern investing platform for retail investors with a simplified web experience, access to Vanguard’s mobile app, and greater accessibility to a wider variety of products, including Vanguard ETFs,” Vanguard said in an emailed statement Friday.
The company is working to transition customers on the legacy retail platform to a brokerage account, the Vanguard said.
CityWire wrote about the transition earlier Friday.