Select S&P Industrial Strategy Summary as of 6/30/97.
DEFINED ASSET FUNDS
Hypothetical Performance of the Strategy (not any Portfolio)
[A mountain chart, captioned "Growth of $10,000 invested in 1972 through
60/30/97", compares the cumulative annual performance from 1972 through 1996
between the Strategy (net of sales charges and expenses) (yellow), the Dow
Jones Industrial Average (DJIA) (pink), the S&P 500 Index (purple) and the S&P
Industrial Index (green). A box in the upper left quadrant indicates the
components of the chart. The y axis reflects years in 1 year increments. The
initial value of each is $10,000; the ending values are as follows: $426,781
(Strategy); $241,749 (DJIA); $221,444 (S&P 500 Index); $217,058 (S&P
Industrial Index).]
Past performance of the Strategy is no guarantee of future results of any
Portfolio. Returns assume dividends were reinvested at year end and do not
reflect commissions or taxes. Only Strategy results reflect Portfolio sales
charges (2.75% for the first year; 1.75% for subsequent years) and estimated
expenses (about 0.25% a year). The Strategy would have underperformed the
DJIA in 11, the S&P Index in 10 and the S&P Industrial Index in 9 of these
years.
<TABLE>
<CAPTION>
Annual Total Returns
Periods Ending December 31 (figures below do not reflect any sales
charges, expenses, commissions or taxes)
1972 1973 1974 1975 1976 1977 1978 1979 1980 1981
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Strategy 17.80% -16.66% -3.16% 42.19% 32.53% -4.34% 8.04% 28.18% 20.04% 9.64%
DJIA 18.21% -13.12% -23.14% 44.40% 22.72% -12.71% 2.69% 10.52% 21.41% -3.40%
S&P 500 Index 18.98% -14.66% -26.47% 36.92% 23.53% -7.19% 6.39% 18.02% 31.50% -4.83%
S&P Industrial Index 19.83% -14.61% -26.54% 36.78% 22.59% -8.20% 7.50% 18.40% 32.98% -6.69%
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991
Strategy 27.59% 26.45% 14.22% 31.64% 30.44% 4.53% 43.56% 36.99% 3.00% 28.73%
DJIA 25.79% 25.68% 1.06% 32.78% 26.91% 6.02% 15.95% 31.71% -0.57% 23.93%
S&P 500 Index 20.26% 22.27% 5.95% 31.43% 18.37% 5.67% 16.58% 31.11% -3.20% 30.51%
S&P Industrial Index 20.14% 22.79% 4.09% 30.08% 18.54% 9.13% 15.80% 29.30% -0.84% 30.39%
1992 1993 1994 1995 1996 6/30/97
Strategy 13.36% 4.29% 13.28% 38.25% 14.10% 18.64%
DJIA 7.34% 16.72% 4.95% 36.48% 28.57% 20.02%
S&P 500 Index 7.67% 9.97% 1.30% 37.10% 22.69% 20.51%
S&P Industrial Index 5.63% 8.90% 3.75% 34.26% 22.70% 20.78%
</TABLE>
Average Annual Total Returns for periods ending 12/31/96
S&P
S&P Industrial
Strategy DJIA* 500 Index* Index*
3 Year 21.35% 22.57% 19.44% 19.56%
5 Year 16.13% 19.20% 15.07% 14.48%
10 Year 19.13% 16.49% 15.20% 15.30%
15 Year 21.35% 18.27% 16.57% 16.46%
20 Year 18.88% 14.27% 14.33% 14.21%
25 Years 17.55% 12.76% 12.35% 12.25%
The data above represent hypothetical past performance and are no guarantee of
future results. There can be no assurance that any Portfolio will outperform
these indices. Annual total returns represent price changes plus dividends
distributed.
Portfolio performance will differ from the Strategy because of sales charges
and expenses, Portfolios are established and liquidated at different times
during the year, they normally purchase and sell stocks at prices different
from the closing prices used in determining Portfolio unit price, Portfolios
are not fully invested at all times and stocks may not be weighted equally.
*"Standard & Poor's," "S&P" and "S&P 500" are trademarks of The McGraw-Hill
Companies, Inc. and have been licensed for use by Defined Asset Funds. The
Portfolio is not sponsored, managed, sold or promoted by Standard & Poor's.
The name "Dow Jones Industrial Average" is the property of Dow Jones &
Company, Incorporated.
The Portfolio
The Defined Asset Funds[SM] Select S&P Industrial Portfolio uses a proprietary
four-part screening process, to select 15 high dividend-yielding stocks from
the overall Index. The result is a Portfolio that seeks to provide a
combination of value, capital appreciation and current dividend income.
The Selection Process
The Select S&P Industrial Portfolio looks for potential values in the equity
market by investing in quality companies in the S&P Industrial Index, a subset
of the S&P 500 Index, that may be out of favor. We do this by employing a
disciplined four-part screening process:
1. Defining the Universe. We begin with the S&P Industrial Index, and
remove any stocks that are in the Dow Jones Industrial Average (DJIA).
2. Quality Screen. Only stocks that are ranked A+ or A by Standard &
Poor's are included.
3. Market Capitalization. The stocks are then ranked by their market
capitalization from highest to lowest, and the lowest 25% are
eliminated.
4. Highest Dividend Yield. The remaining stocks are ranked according to
dividend yield. The 15 highest-yielding stocks are selected for the
Portfolio.
The Defined Asset Funds Select Strategy
Like each Portfolio in the Defined Asset Funds Select Series, the Select S&P
Industrial Portfolio employs a "buy and hold" style of investing for
approximately one year following a disciplined investment strategy. At the
end of one year, the screening process is reapplied and a new Portfolio is
selected. You can reinvest your earnings into the new Portfolio, if
available, or you can redeem your investment.
Although the Select Portfolios are one year investments, we recommend staying
with the Strategy for at least three to five years.
Defined Advantages
With the Select S&P Industrial Portfolio, you have a convenient way to invest
in a Portfolio that provides a variety of advantages.
bullet Low minimum investment. You can get started with the Select S&P
Industrial Portfolio with as little as $250.
bullet No sell decisions. You are buying and holding for about a year, a
Portfolio of established companies with relatively high dividend
yields.
bullet A deferred sales charge. You pay only part of your total sales charge
when you buy, since most will be collected on a deferred basis. This
way, more of your money is put to work immediately.
bullet Reinvestment. You may choose to reinvest your dividends, subject only
to the deferred sales charge, to compound your income.
bullet Year-end rollover. Each Portfolio liquidates in about one year, at
which time you'll have the opportunity to reinvest your proceeds into
the next Portfolio, if available.
Defining Your Risks
The Select S&P Industrial Portfolio is designed for investors able and willing
to assume the risks generally associated with equity investments, and may not
be appropriate for those seeking preservation of capital or high current
income. The value of this investment will fluctuate with the value of the
underlying stocks and the sales price may be more or less than the original
cost. There can be no assurance that dividend rates will be maintained or
that stock prices will not decrease. Generally, dividends and any gains will
be subject to tax each year.
About Standard & Poor's
- ------------------------------------------------------------------------------
STANDARD & POOR'S is a leading financial information and investment research
company. Since 1860, they have provided investors with financial research,
benchmarks and market data. Its most notable benchmark, the S&P 500 Composite
Stock Price Index, features utility, financial, transportation and industrial
stocks. The S&P Industrial Index, a sub-set of the S&P 500, includes only
highly capitalized industrial stocks.
For more complete information about the latest Equity Investor Fund Select S&P
Industrial Portfolio, including sales charges and expenses, ask your financial
professional for a free prospectus. Read the prospectus carefully before you
invest.
Units of the next Series are not yet available. Information contained herein
is subject to amendment. A registration statement relating to the securities
of the next series has been filed with the Securities and Exchange
Commission. These securities may not be sold nor may offers to buy be
accepted prior to the time the registration statement becomes effective. This
brochure shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of these securities in any state in which
such an offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state.
[Copyright] 1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member
SIPC. 11585IN-7/97
