Here are the official 2024 returns for the FTSE 100 and FTSE 250 (including dividends)

The Footsie did quite well in 2024, returning almost 10%. But the mid-cap FTSE 250 index generated lower returns, hurt by its focus on the UK economy.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Young Caucasian man making doubtful face at camera

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The FTSE 100 and the FTSE 250 are closely-followed UK stock market indexes. A lot of British investors have exposure to them via tracker/index funds.

Interested to know how these indexes performed in 2024? Here’s a look at their total returns for the year (gains plus dividends).

The figures

Earlier this week, FTSE Russell published its factsheet for the FTSE UK series. And the performance figures were interesting.

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

For 2024, the FTSE 100 delivered a total return of 9.7%. This was its best performance since 2021 when the large-cap index returned 18.4%.

As for the mid-cap FTSE 250, it delivered a lower return of 8.1%. However, this was also its best performance since 2021 when it returned 16.9%.

Some observations

Looking at these figures, I have several thoughts.

First, the indexes produced respectable performances in 2024. Over the long term, the stock market tends to return around 7%-10% a year on average. Last year, both indexes delivered that kind of return.

That said, these figures are a little disappointing relative to the percentages other major stock market indexes managed. Over in the US, the S&P 500 delivered 25% in total. Meanwhile, for the Nasdaq 100 it was 25.9% (both of these are calculated in dollar terms). This shows the importance of diversifying globally when investing in stocks. By taking a global approach, a British investor could have potentially generated more wealth.

Second, dividends played a large role in these figures. I calculate that in price terms, the FTSE 100 rose 5.7% for the year while the FTSE 250 climbed 4.7%, so dividends boosted overall performance significantly.

Another takeaway is that the FTSE 250 underperformed the FTSE 100 by a decent margin. Clearly, the domestic focus of the FTSE 250 hurt its performance. While FTSE 100 companies tend to have more global revenues, FTSE 250 companies are often more focused on the UK. Again, this highlights the importance of global diversification.

Building a global portfolio

It’s worth pointing out that it’s very easy to build a global portfolio today.

One simple option to consider is a global tracker fund such as the iShares Core MSCI World UCITS ETF (LSE: SWDA). With this exchange-traded fund (ETF), one gets exposure to about 1,400 stocks from a range of countries including the US, the UK, Japan, Australia, France, and Germany.

Among these stocks are names such as Apple, Microsoft, and Amazon. In other words, it offers access to world-class businesses.

In terms of performance, this ETF returned 18.7% last year (in dollar terms), which is excellent. Over the five-year period to the end of 2024, it delivered a return of 11.2% a year. These figures don’t include trading fees and platform charges though. And as always, past performance isn’t an indicator of future returns.

It’s worth pointing out that there are some risks to consider with a product like this. One is that it has a lot of exposure to the US market (about 74% currently). Another is that it trades in US dollars. So GBP/USD fluctuations can have an impact on returns for UK investors.

I think this ETF could be a great foundation to consider for a portfolio though. I like the idea of having this as a core holding and then buying some high-quality individual stocks such as Nvidia or Uber to try and boost long-term returns.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has positions in Amazon, Apple, Microsoft, Nvidia, and Uber Technologies. The Motley Fool UK has recommended Amazon, Apple, Microsoft, Nvidia, and Uber Technologies. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our best passive income stock ideas

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

Investing Articles

2 FTSE 100 and FTSE 250 stocks to consider as stock markets plummet!

Looking for lifeboats as growth-crushing trade tariffs loom? Here are two (including a FTSE 100 gold stock) I think merit…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to consider buying in April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

£10,000 invested in Watches of Switzerland shares 1 year ago is now worth…

Watches of Switzerland shares have been decimated by Trump’s tariffs on Switzerland. Dr James Fox explores whether this is an…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Growth stocks are crashing! Here’s what I’m doing now

Our writer shares his thoughts as growth stocks get crushed, as well as a favourite from the Nasdaq that he…

Read more »

Investing Articles

What’s going on with the Nvidia share price now?

The Nvidia share price is tanking. Once the most valuable listed company, Nvidia has seen more than $1trn wiped off…

Read more »

Investing Articles

This FTSE AIM stock has £2.3bn in net cash, and a market cap of £2.4bn!

I love this FTSE AIM stock, but it really hasn’t delivered for me yet. The stock trades with crazily low…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 15% in a week! Are these 5 FTSE 100 fallers screaming buys as markets plunge?

Five of Harvey Jones's favourite FTSE 100 stocks all have the same thing in common – they've fallen around 15%…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

2 stocks that have been crushed and now offer a ton of value

Edward Sheldon has been scanning the market for stocks that offer value after the sell-off. Here are two shares he…

Read more »