This year has seen the flagship FTSE 100 index of leading British shares hit an all-time high.
So, how have investors done who backed the index?
Up, up, and away
Pretty well, in my opinion.
Since the start of 2026, the FTSE 100 is up by 5%. So somebody who put £10,000 in back then ought already to be sitting on a portfolio worth around £10,500.
On top of that, there are dividends to consider. Currently, the FTSE 100 yields 3%. On a £10,000 investment, that would mean around £300 per year in passive income.
I am a long-term investor, though. So a timespan of just a few months may not be the most relevant, from my perspective.
Still, longer term, the FTSE 100 has also done well.
Over five years, it is up by 50%. That rise also means that someone who invested five years back would now be earning a yield well above the current 3%.
Lots of investors ‘buy the index’
Above I talked about investors who had backed the index.
For a major index like the FTSE 100, that can be easy to do.
There is a plethora of FTSE 100 trackers that basically mirror the index, meaning someone who wants to invest in it can buy such shares rather than trying to build their own 100-share portfolio.
Some of those index trackers offer dividends, while others reinvest them.
With so many options on the market, pricing can be very competitive. So it pays to compare the options when choosing.
That said, index tracking is not the only way to invest in large blue-chip British companies. Another option, which I use, is to invest in individual shares.
One FTSE 100 share I like
That can be more work, as it involves researching specific companies and their valuations.
But the idea is that, if I can invest in the better shares of the FTSE 100, I may be able to outperform the index. The challenge, of course, lies in deciding ahead of time how individual shares may perform.
Take JD Sports (LSE: JD) as an example. I have long seen the FTSE 100 sportswear retailer as undervalued – yet it has been going nowhere fast.
So far this year, it is up less than 1%. That lags the FTSE 100 index’s performance.
Over five years, it is a similar story. While the index is up by half, JD Sports is down by 51%. That is a horrible performance.
So, what has gone wrong — and could it be fixed?
Big spending on expansion has not translated to better profitability. That is a risk that continues to haunt the company. Another is that in a weak economy, demand for expensive brand name trainers may fall.
Still, the company’s growth has helped boost sales and cemented its global position. The brand is strong, it understands its customers well, and the company is solidly profitable.
Despite it underperforming the index, I will continue to hold JD Sports in my portfolio.
Should you invest £5,000 in JD Sports Fashion right now?
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Christopher Ruane owns shares in JD Sports Fashion.
