Investors in UK index funds have enjoyed spectacular returns as FTSE 100 shares have rallied. The blue-chip Footsie index has just hit new record peaks above 10,900 points. It’s risen 24.5% over the last year, reflecting white-hot investor demand for value and dividend stocks.

To put this into context, a £20,000 investment in a FTSE 100-tracking exchange-traded fund (ETF) would now be worth £25,460, assuming dividend reinvestment.

The question is, can the London stock market’s most illustrious index keep rising? And are index-tracking funds the best option for investors?

Funds vs shares

Accurately predicting the near-term movement of share prices is notoriously difficult. For this reason, I’m happy to pass on guessing where the index might head in 2026!

I am however, very happy to predict where FTSE 100 shares will head over the longer term. And that’s up. History shows that — as economies grow and corporate earnings rise — leading stock indices always rise strongly over time. The Footsie’s recent highs mean it’s risen about 990% from the 1,000 points it began at back in 1984.

Tracker fund investors have enjoyed stunning returns as a result. That’s not all, as spreading their cash across a diversified selection of companies has helped them manage risk. However, investors who purchased individual shares could have made much better gains by building their own mixed portfolios.

Coca-Cola Europacific Partners (LSE:CCEP) is a large-cap stock that’s delivered FTSE 100-beating returns over time. I’m optimistic it’ll continue outperforming the broader index too, making it worth serious consideration.

The real thing

Coca-Cola Europacific bottles and distributes some of the world’s most popular drinks such as Coke, Sprite and Fanta. These remain in high demand at all points of the economic cycle, as the firm’s performance in 2025 showed.

Revenues rose 4.1% at stable exchange rates to a whopping €20.9bn, as both volume and price growth boosted the top line. The business sells its products across 31 European and Asian markets, harnessing the stability that comes with developed markets alongside the enormous growth potential of emerging regions.

In 2025, the firm’s operating profit leapt 7.5% at stable exchange rates to €2.8bn, as both revenues and margins trekked higher. Can Coca-Cola Europacific continue to fizz though? I think so, as it leverages its heavyweight product portfolio to launch new products and capitalise on growing markets.

FTSE 100 beater

With dividends included, the drinks giant’s produced an average annual return of 19.7% over the last five years. By comparison, the iShares FTSE 100 ETF — one of many UK-listed exchange-traded funds that track the Footsie — has delivered a far lower (if still respectable) one of 13.9%.

Coca-Cola Europacific faces risks like substantial market competition and rising costs. It also has to keep innovating to match changing consumer tastes, which can be expensive. Yet on balance, profits will keep rising at an impressive pace. It’s one of numerous top blue-chips I’m optimistic can keep beating the FTSE 100 over the long term.