UK Market Pulse: FTSE 100 at a Glance

UK investors often keep most of their money close to home. This research note puts the FTSE 100 in historical context, looking at its biggest calendar-year gains since 1984 and how often it has outperformed the major US indices.

The pattern is clear: FTSE outperformance against US peers has been episodic and rarely persists beyond a year or two, while on price returns the S&P 500 has pulled far ahead since 2008. The note ends with practical points on dividends, currency and sector mix.

Key findings

• Six calendar years since 1984 saw FTSE 100 price gains of more than 20%, with the largest +35.1% in 1989.
• From 1984 to 2024 the FTSE outperformed the Nasdaq in 14 of 41 years (about 34%), mostly during severe Nasdaq downturns such as 2000 to 2002.
• Over the same period the FTSE outperformed the Dow in 11 of 41 years (about 27%) and the S&P 500 in 10 of 41 years (about 24%), roughly one year in four.
• Multi-year FTSE outperformance against the S&P 500 is rare: the only streaks were 1986 to 1988 and 2007 to 2008.
• On price returns since 2008, S&P 500 appreciation of about 300% compares with about 26% for the FTSE 100, before dividends and currency effects.

What the paper covers

1. Years with more than 20% FTSE 100 price gains
2. FTSE versus Nasdaq: frequency of outperformance
3. FTSE versus Dow Jones (1984 to 2024)
4. FTSE versus S&P 500
5. Rare multi-year FTSE outperformance
6. CAGR comparison: FTSE 100 versus S&P 500 (2008 to 2024)
7. Investor takeaways