Vanguard funds: life strategy funds vs target retirement funds

Introduction
Both Vanguard Target Retirement Funds and Vanguard LifeStrategy Funds can be used as all-in-one portfolios. This article addresses the similarities and differences between the two series of funds.

Vanguard has an article about comparing Vanguard LifeStrategy Funds and Vanguard Target Retirement Funds. In addition to what Vanguard already mentioned, you may consider the following.

Control Over Asset Allocation
If you selected a Target Retirement fund based on its current asset allocation, not the target year, you may find that the fund shifts its asset allocation either too soon or too late. For example, suppose you plan to retire in 2030, but you think the 85% stocks 15% allocation in Vanguard Target Retirement 2030 Fund is too aggressive for your need, ability and willingness to take risk. Instead, you like the allocation in Vanguard Target Retirement 2015 Fund, which currently invests approximately 65% in stocks and 35% in bonds. If you invest in Target Retirement 2015, however, at some time close to 2015, the fund will shift its allocation more conservatively, while you are still at least 15 years away from your planned retirement. On the opposite, if you'd like to be more aggressive and invest in Target Retirement 2035 while you plan to retire in 2015, you may find the allocation in Target Retirement 2035 not shifting when you need a less aggressive allocation.

If you invest in a LifeStrategy fund, this problem can be mitigated. You pick an allocation and change your allocation only when you want to. Alternatively, you can still invest in a Target Retirement fund but you have to watch for the allocation changes every year or every few years. If the allocation no longer suits you, switch to a different Target Retirement fund. This is best implemented in a tax deferred or tax free (Roth) account because there are no tax implications for switching. It somewhat defeats the "set it and forget it" appeal of a Target Retirement fund, but it's a good compromise between simplicity and maintaining your desired asset allocation.

Short-Term Asset Allocation Swings
All LifeStrategy funds have a 25% allocation to Vanguard Asset Allocation Fund. The underlying asset allocation in Vanguard Asset Allocation Fund changes frequently in the short-term. This causes swings to the asset allocation of LifeStrategy funds. For example, when Vanguard Asset Allocation Fund changes from 60% in stocks to 100% in stocks, LifeStrategy Moderate Growth Fund's allocation also changes from 60% in stocks to 70% in stocks.

Target Retirement funds do not invest in Vanguard Asset Allocation Fund. Their asset allocations remain stable in the short-term.

International Allocation
TR funds have slightly more in international.

TIPS
Some TR funds include TIPS.

Cost
TR funds are a little cheaper?

History
LS funds have longer history.