An emergency fund is typically 6 months of expenses: are your expenses over $3.3k per month?
Since you are looking to buy a house right now, I'd leave the $42k alone for the moment. What happens if you see a house for $520k instead of $450k? It would be better to have extra money for the down payment in cash. And depending on where you buy, the closing costs can add up, too. Finally I'd suggest doing nothing yet because your mortgage might be higher than rent (plus you'll need home insurance, and pay property taxes). That could increase your spending, which translates to needing more cash in your emergency fund. Once you've bought the house and know your monthly expenses, then it makes sense to use the rest for investment.
Regarding the investments, since you're buying small cap value, I wouldn't buy the S&P 500. I'd shift that money into the total stock market. If you buy the S&P 500, it's like subtracting out small caps - and then you're adding small caps elsewhere. They kind of cancel out. If you instead use a total stock market fund for 66%, small caps are included in that. And then you add more small caps in addition. So I'd suggest merging your S&P 500 into the total stock market, so that all of your U.S. holdings include small cap stocks.
As you approach retirement, you'll want to add bonds as well. Most target date funds allocate 10% bonds when retirement is far away.