If I had invested £10,000 in the FTSE 100 index fund 5 years ago, here is how much I would have now.

While i FTSE 100‘s leading index here in the UK, its cool performance is often overshadowed by S&P 500. It is famous for having a high profit margin but its growth pales in comparison.

Over the past five years, the Footsie is up 12.5%, while the S&P 500 is up 90%. This is largely due to the amazing performance of American technology lovers, such as Meta, Amazonagain Google.

A £10,000 investment in an FTSE 100 tracker fund would have grown to £13,500 over five years (with profits reinvested). A similar investment in the S&P 500 would have doubled to over £20,000.

In turn, S&P 500 tracker funds are becoming increasingly popular in the UK. One of my favorites is iShares Core S&P 500 ETFan increase of 95.8% in the last five years. Of course, it has had its ups and downs (in 2022 it closed at 10%) but overall it tends to provide reliable returns.

Credit where it’s due

Now, let’s not give up on FTSE completely. Its American counterpart may be a strong growth engine but relies heavily on technology stocks. If the technology industry experiences a downturn, it can threaten the entire index.

There are other FTSE 100 stocks that I feel more comfortable investing in for retirement. One of them is a strong foundation among long-term income investors, Unilever (LSE: ULVR).

I already hold it and as a global consumer goods company with a large portfolio of well-known brands, it adds a high level of protection to my portfolio. On average, annual returns are similar to the FTSE 100 but volatility is lower. This equates to more profitable returns over time.

It’s up 334% over the last 20 years, while Footsie is up 75%.

However, its significant global exposure makes it sensitive to foreign exchange fluctuations, especially against the US dollar. And, as a producer of physical goods, rising costs of raw materials are putting pressure on its margins.

These factors add risk to the investment, as well as competition from larger assets such as Nestle again Procter & Gamble.

Assignments

Unilever’s dividend yield typically hovers around 3% to 4%, providing a steady stream of income. It has a strong track record of maintaining and growing its payout, although recent economic problems have slowed earnings growth. Most attractive is the consistency: dividend yields have grown by an average of 4.42% per year over the past 10 years with no reductions or reductions.

Another low volatility stock I recently invested in is a British food service giant The Compass Group. Unilever’s strength in dividends is lacking but it makes up for strong growth. The share price is up 920% in the last 20 years, outpacing even the S&P 500. And let’s not forget the UK pharma giant. AstraZenecaup 400% since 2004 – another reliable dividend payer.

I can’t deny that some of my US tech stocks are doing well, in particular Axon again Fortinet. But when I’m considering long-term retirement investments, I always look to our local index.

It may be the tortoise in today’s global stock market race but in the long run, it may just beat the rabbit.