Index Matrix App
The Index Matrix App
How It Works
For 23 US equity and fixed-income indexes:
The Big Picture
The Index Matrix App’s heatmap visualization helps advisors direct their clients’ focus away from solely numbers to more impactful long-term trends.
The index returns are show in shades of green (positive) and red (negative), with the highest highs shaded in deep green and the lowest lows shaded in deep red. We refer to the diagonal (year-to-year returns) as the “barbed-wire fence of investing.”
This helps financial advisors communicate to clients that if they can persevere through the tough times in the market, they’ll have the opportunity to enjoy the “greener pastures” the stock market has to offer over time.
After Inflation
The Index Matrix App comes equipped with a feature that allows you to show the before-and-after effects of inflation on the time value of money.
Highlight Time Periods
Zoom in on events like the 1973-1974 market decline, the “Dot-com Crash,” and the “Global Financial Crisis” to show the eventual market rebound and reiterate the importance of staying invested for the long term.
Use the “Highlight Year Range” feature to demonstrate the difference in investment outcomes over 1-5 years, 6-10 years, and 11-15 years from any starting year. This helps align client and prospect investment time horizons with past market risk and return.
Compare Asset Classes
Over the long term, you’ll see that expected returns will be higher if you tilt toward small cap and value.
This reinforces the benefits of asset class diversification in meeting client objectives and expectations.
Show Details and Comparisons
Choose from 23 different indices from the drop-down menu and use the “Highlight Year” function to adjust your time frame.
Reimagining the Matrix Book
Our investing images help you reimagine the Matrix Book data, employ visual techniques to highlight investment principles and make concepts come alive to investors.
Dimensional-approved advisors can watch the webcast “Bringing the Matrix Book to Life” here. It features Jeff & TJ Troutner of Equius Partners demonstrating these tools.
