[mwgr5]

If this is the case you should invest in a small cap fund. Specifically a small cap value fund.

The main question is what percent of your US portfolio should you allocation to small cap value. This is primarily a function of your risk tolerance. It is also important to note that many people think they have higher risk tolerances than they actually do. One of the biggest mistakes you could make is having a portfolio that is too risky for you and selling out of positions during a bad down turn.

So why not invest all of your domestic holdings in Small Cap Value?
The small cap value premium is based on historical information. Know one knows what will happen in the future. While their is a high probability that small cap value will outperform over the long run, their is not absolute certainty.

Thus, the best idea is do diversify. Simply holding a total stock market index and a small cap value index is a very good idea.