The FTSE 100 has delivered a strong 12 months for investors, rising 17% over the past year and significantly outpacing its domestic rival.
That gain means a £10,000 investment made a year ago would now be worth approximately £11,700, before dividends are factored in.
The index also comfortably outpaced the FTSE 250, which returned just 7% over the same period, highlighting the relative strength of the UK’s largest listed companies.
The performance is not far behind the 19% gain achieved by the S&P 500 in the United States, making the FTSE 100’s showing all the more impressive given the global economic backdrop.
Dividends add a further layer of return for long-term investors, with the index currently yielding around 3% — though investors who bought a year ago are now yielding approximately 3.5% on their original capital.
That means a £10,000 investment made twelve months ago should now be generating around £350 a year in dividend income, equivalent to almost £7 per week in passive income.
The FTSE 100 has also hit a new all-time high during 2026, though the index has since pulled back from that peak, reflecting ongoing uncertainty in global markets.
Tracker funds remain one of the most accessible routes into the index, offering competitive pricing compared to many actively managed funds and unit trusts.
Rather than buying a tracker, some investors prefer to pick individual FTSE 100 shares directly, seeking to concentrate exposure in businesses they believe offer superior long-term prospects.
One such stock that has attracted attention is insurer Aviva (LSE: AV), despite its relatively modest one-year share price gain of just 5%.
Even accounting for Aviva’s 5.8% dividend yield, the stock has underperformed the broader index over the past twelve months by a notable margin.
However, zooming out to a five-year view tells a different story, with Aviva shares up 77% compared to a 50% gain for the FTSE 100 over the same period.
Aviva’s acquisition of Direct Line has further strengthened its position in the UK general insurance market, where it is already the market leader.
That deal has, however, introduced additional concentration risk, with Aviva now more dependent on the UK market than it was several years ago.
A potential pricing war from smaller competitors looking to undercut Aviva’s dominant position could pose a meaningful threat to profitability if market conditions shift.
General insurance, though, is widely regarded as a relatively predictable business area, offering more stable cash flows than many other sectors.
Aviva has demonstrated strong cash generation over recent years, which has helped to support consistent dividend growth and underpinned its appeal as an income stock.
For investors weighing up whether to back individual stocks or simply track the index, the past year serves as a useful reminder that even quality names can lag the market over shorter time horizons.