It was a complex year on stock exchanges around the world. From fear of tariffs to changes in monetary policy, investors have tried to avoid market corrections and carefully choose which stocks to buy and which to avoid. But if an investor decided to invest £10,000 in a fund tracking any of them FTSE100 or the American stock exchange, which one would be more profitable?

A powerful result

So far this year, the FTSE 100 is up 17.3%. For comparison, S&P500 increased by 16.2%. While some may be surprised, this means that the UK stock market performed better than its US cousin in December. In terms of numbers, this would mean the investor would have an unrealized gain of £1,730 or £1,620, depending on where the funds were allocated.

There are several reasons why it is worth paying attention to the difference in rates of return. One factor is related to the positive surprise in Great Britain’s economic performance. At the beginning of the year, there were fears that we might fall into a recession. That didn’t happen, and while the economics aren’t firing on all cylinders, it wasn’t a disaster.

The United States is home to most of the major AI and technology companies, which provided most of the index’s gains in 2025. Outside of these key sectors, there weren’t many others worth mentioning. Therefore, although the US index is performing well, not all areas support it.

Finally, some investors have actively sought to buy shares outside the United States due to concerns about U.S. trade policy. As a result, I think some of the money flow left the S&P 500 and went into the FTSE 100.

Looking to 2026

I think the FTSE 100 could continue to do well next year. However, instead of buying an index tracker, I think individual stocks could perform even better. For example, someone might consider Next (LSE:NXT). The British retailer’s share price has risen 43% in the last year.

Financial performance was a key factor in this decision. In March, the annual results showed a pre-tax profit of over £1 billion, which meant the company had passed this milestone for the first time. Fast forward to October, where we raised our full-year earnings forecasts again, showing that things have progressed even further in 2025.

Online sales are driving this growth, as is international expansion. That’s why I think he can do well next year. While the outlook for the UK’s high street remains challenging, Next is becoming increasingly diverse. This happens both geographically and in various channels (internet, store, external brands).

While many UK retailers have struggled due to feeble consumer confidence and cost pressures, Next has managed to thrive. This is a green flag for next year, showing resilience in a challenging retail environment.

One danger is that competition in this space is always fierce, which means each season is key to staying ahead and avoiding the minefield of fashion mistakes. Any errors here can limit further growth rates.

Even with these concerns, I think Next is a stock worth considering given the UK’s continued outperformance compared to the US.