“However, Vanguard has finally ended the nudge and incentives,” DeMaso added, adding that Vanguard investors who held physical mutual fund shares must return their shares or their shares will no longer be eligible for transfer to the new platform. He pointed out that he had been told that.
“Vanguard may call this an ‘upgrade’ on its transition website, but for those who still hold traditional mutual fund accounts or stocks, this is an unwelcome change and they have no choice in the matter. No,” DeMaso wrote. .
For customers who do nothing, he said, “Whether you like it or not, Vanguard will simply migrate your account to its brokerage platform.”
Investors can also take their money to another provider, such as Fidelity, Schwab or E-Trade, or sell their shares and claim distributions, although this can have tax implications. DeMaso pointed out that there is.
The Vanguard brokerage account is “a modern investment platform for retail investors with a simplified web experience, access to Vanguard’s mobile app, and easy access to a wide range of products, including Vanguard ETFs.” Vanguard said in an email statement Friday.
Vanguard said it is working to migrate customers from traditional retail platforms to brokerage accounts.
CityWire wrote about the transition early Friday.
