The top stocks in the FTSE 100

Following on from its best year since 2021 last year, the FTSE 100 has gone onto greater heights in 2025, gaining 11.8% in the year to 15 August.

Several of the index’s constituents have featured consistently among the top stocks for retail investors so far this year, driven by tailwinds like increased defence spending commitments throughout Europe and the UK.

This has driven the FTSE 100 to all-time highs. The index broke the 9,000 barrier for the first time in July, as fund managers became increasingly optimistic about the index’s prospects.

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Despite high UK inflation during July, the macroeconomic backdrop has been supportive for the FTSE 100.

“GDP data for the UK pleasantly surprised investors last week,” said Jemma Slingo, pensions and investment specialist at Fidelity International. Economic growth of 0.3% beat forecasts of 0.1% for the second quarter.

One of the major market movers this year has been Donald Trump’s ever-changing tariff regime, which has kept investors guessing and stock markets jumpy. But an early UK-US trade agreement has given the FTSE 100 a degree of shelter from the worst impacts, while tariffs have hampered the S&P 500.

"There are signs that investors are keen to diversify beyond the US," says Slingo. "The FTSE 100's lowly valuation could certainly prove tempting.

"Despite recent gains, it sits on a forward price/earnings ratio of just 14x. The S&P 500 commands a multiple of 24,," Slingo adds.

The top-performing FTSE 100 stocks of 2025

Here are the top-performing FTSE 100 stocks in the year so far:

^{Source: LSEG}

Fresnillo (FRES.L) has benefitted from silver prices rising 28% through 2025 so far. The precious metals miner reported a 27% year-on-year increase in revenues to $1.98 billion on 5 August, and Fresnillo shares gained 6% in response.

“With silver even looking to outshine gold, Fresnillo is finally delivering operationally, and getting the market recognition it’s been waiting for,” said Mark Crouch, market analyst at eToro.

Babcock (LON:BAB), Rolls-Royce (LON:RR.) and BAE Systems (LON:BA.) are all beneficiaries of efforts by the continent’s leaders to increase European defence spending.

The top FTSE 100 stocks by market cap

In terms of market capitalisation (market cap), these are the biggest stocks in the FTSE 100 as of 18 August:

^{Source: London Stock Exchange}

Pharmaceuticals giant Astrazeneca holds the top spot in the FTSE 100’s list of largest companies at present.

Which FTSE 100 stocks performed best in 2024?

The five top-performing stocks in the FTSE 100 last year are as follows:

^{Source: AJ Bell, ShareScope. Data to market close on 6 December 2024. Total return with dividends reinvested.}

The top-performing stock in the FTSE 100 during 2024, Natwest (LON:NWG), benefitted from the UK government reducing its holding stake and indicating that it was looking to exit completely.

“A major share overhang was lifted as the government accelerated the sale of what was a large stake in the business following a bailout in the global financial crisis,” said Dan Coatsworth, investment analyst at AJ Bell. “The stake is now less than 11% versus 38% a year earlier and the government has indicated it will be out completely next year.”

Should you invest in the FTSE 100?

While UK share price gains don’t always match the explosive rates of their American counterparts, FTSE 100 shares can be a good source of dividends and close the gap in terms of total returns.

“Fundamentally, the FTSE 100 can help provide ballast to an ISA or pension portfolio, particularly as the index has a rich source of dividends and a good mix of cyclical and defensive companies,” says Coatsworth.

Additionally, the relative underperformance of the S&P 500 so far this year underscores the value in diversifying a portfolio away from an over-reliance on one particular market.

“The tale of these two economies [US and UK] demonstrates the importance of diversifying your investments across the globe,” says James McManus, chief investment officer at JP Morgan-owned digital wealth manager Nutmeg.

“Holding UK equities alongside the US, emerging markets, Europe and others may be the best way to capture emerging winners, reduce your investment risk, and benefit from global megatrends,” he adds.

One easy way to invest in the FTSE 100 is buying a tracker fund such as the Vanguard FTSE 100 UCITS ETF (LON:VUKE).