FTSE 100 sees best year in over a decade

The FTSE 100 has returned 22.8% year-to-date including dividends, in the highest returns seen since the bounce back from the global financial crisis in 2009.

2025 has been the seventh best year for the UK index since records began in 1985, with returns more than twice what it achieved last year.

The FTSE 100 also outperformed the S&P 500 index in the US, according to analysis from platform AJ Bell.

FTSE 100 annual performance:

Source: AJ Bell, LSEG. Total return. 2025 data to market close on 1 December.

Dan Coatsworth, head of markets at AJ Bell, said this year’s FTSE 100 performance demonstrates why the FTSE 100 offers strong long-term investments.

He said: “There may therefore be a lot of people kicking themselves that they’d taken money out of the UK market. The year has been full of stories about sustained net outflows from UK funds, which is a surprise given the headline performance of the FTSE 100.

“This year’s success for the blue-chip index is not a flash in the pan. The FTSE 100 has delivered positive returns in eight of the past 10 years, averaging 9.1% annually over that period including dividends. This kind of performance reinforces the attraction of investing over the long term. There may be years when performance disappoints, but history suggests it’s worth pursuing.”

The best returns in the FTSE 100 in 2025 were previous metals mining firm Fresnilo (364%), Airtel Africa (179%), Endeavour Mining (160%) and Babock (121%).

Banking firms also performed well this year with Lloyds leading the pack returning 80%.