Switch to Vanguard Brokerage Account?

[Gilberto de Piento]

I received the below email from Vanguard regarding a taxable account I have index funds in. There may be more info when I get the invitation email. Should I switch to the brokerage account? For someone who is just doing buy and hold, what's the difference?

You'll soon receive an email from us asking you to transition your current Vanguard account to a Vanguard Brokerage Account at no additional cost.

We're transitioning most of our accounts to the new account structure to significantly streamline our operations and help us continue to lower the cost of investing.

You don't need to take any action today. We simply want to inform you of the upcoming invitation.

Thank you for your consideration.

Legal notices
All investing is subject to risk, including the possible loss of the money you invest.

Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.

[slowtraveler]

I made the switch. Iirc, it integrated my Roth and brokerage. I didn't find a reason not to and it seems to offer better legal protection

[KevinW]

I made the switch too. There isn't very much of a difference, a brokerage account has a different legal standing, access to ETFs and non-Vanguard securities, always has a cash settlement account attached, and fund transactions settle through an exchange (NYSE/NASDAQ) instead of directly with Vanguard. As a PP investor I'll have a cash account no matter what, so there is little if any practical difference. I think Vanguard is sincere when they say that streamlining down to only one kind of account will make their operations more efficient and eventually leaner.

[Gilberto de Piento]

Thanks for the info Felipe and KevinW.