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Greetings jameyer23,

Well, the 5 year returns for each look like this:

S&P - 9.55%
Russell - 3.51%


But are the next years going to be like the past 5 years or are they going to be much different? I'd also note that there are some historic times where small-caps were much better than large-caps so that over time it could be that a mixture re-balanced annually could do better. Given the volitility that exists for small-caps at times referred to as the 'small-cap premium' that was part of the work done by Fama and French and others. If you'd like more look at "The Intelligent Asset Allocator" by William Bernstein or his site at www.efficientfrontier.com that discusses various asset allocation strategies.

I have a pretty high tolerance for risk, just want to make sure I"m putting the right amounts in these index funds for my 401K.

How can you know the 'right' amounts? You can estimate and do your best but that isn't quite the same after you have the benefit of hindsight.

Just some food for thought,
JB
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