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Defined Asset Funds (R)
Select Series 2000 1
Income & Growth Quantitative Research
Select Ten Portfolio
A Value Strategy Seeking Total Return
[logo] Merrill Lynch
Selecting investments for your portfolio can be complicated -- a strategy can
help.
The Strategy
The Select Ten Portfolio seeks total return by holding the ten highest
dividend- yielding stocks of the Dow Jones Industrial Average* (DJIA) for about
one year (the "Strategy").
The Portfolio looks for potential values through a contrarian approach of
investing in companies whose stocks show the highest dividend yields,
indicating that their prices may be depressed. Because we limit the field of
potential stocks to those in the DJIA, the Portfolio is selected from a group
of large, well-established companies whose financial strength makes it possible
for them to recover from these low prices. This basic strength is essential to
the Strategy.
Each year, we intend to reapply the screening process to select a new
Portfolio. You can reinvest in the next Portfolio, if available, at a reduced
sales charge, or you can redeem your investment. Although each Portfolio is a
one-year investment, we recommend you stay with the Strategy for at least three
to five years for potentially more consistent results.
It's Convenient
Invest in a fixed Portfolio of widely held stocks with just one purchase, and
enjoy the advantages of:
Quarterly Dividends. You will receive four consolidated checks per
year, not 40 for the ten stocks.
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Reinvestment. You may choose to reinvest your distributions at a
reduced sales charge to compound your income.
Cost. Investments start at $250, with sales charge discounts available
for purchases of $50,000 or more.
Discipline. You are buying and holding, for about a year, a portfolio
of established companies with relatively high dividend yields.
Tax-Efficiency. On rollovers to future Portfolios, if available, you
will defer recognition of gains and losses on stocks that are
transferred to the new Portfolio.
Select Ten Portfolio-- 2000 Series 1(+)
Name of Issuer Ticker Symbol Current
Dividend
Yield(++)
1. Philip Morris Companies, Inc. MO 10.07%
2. J.P. Morgan & Company, Inc. JPM 3.77
3. Caterpillar, Inc. CAT 3.64
4. Eastman Kodak Company EK 3.26
5. Du Pont (E.I.) De Nemours & DD 3.05
Company
6. Minnesota Mining & MMM 2.85
Manufacturing Company
7. International Paper Company IP 2.77
8. General Motors Corporation GM 2.57
9. Procter & Gamble Company PG 2.41
10. SBC Communications, Inc. SBC 2.32
The Portfolio does not reflect the research opinions or any buy or sell
recommendations of any of the Sponsors.
(+) Initial date of deposit -- March 13, 2000.
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(++) Current dividend yield for each security was calculated by annualizing
the last monthly, quarterly or semi-annual ordinary dividend received
on that security and dividing the result by its market value as of the
close of trading on March 10, 2000. There can be no assurance that
future dividends, if any, will be maintained at the indicated rates.
Past Performance of Prior Select Ten Portfolios
Past performance is no guarantee of future results.
Series From Inception Through 12/31/99 Most Recently Completed Portfolio
(including annual rollovers)
Inception Series Return Period Series Return
5/17/91 B 13.04% 6/1/98-7/9/99 B 6.82%
1/3/92 A 13.39 1/28/98-3/5/99 A 5.33
9/1/92 C 15.09 9/28/98-10/29/99 C 11.44
7/22/96 3 12.56 8/3/98-9/10/99 3 11.05
11/1/96 5 11.27 11/16/98-12/17/99 5 2.36
1/2/97 J 8.30 1/6/98-2/8/99 J 8.80
2/25/97 1 7.08 3/2/98-4/9/99 1 2.65
4/28/97 2 6.15 5/4/98-6/4/99 2 2.47
9/3/97 4 3.06 9/8/98-10/15/99 4 8.75
The chart above shows average annual total returns which represent price
changes plus dividends reinvested, divided by the initial public offering
price, and reflect maximum sales charges and expenses. Returns for Series from
Inception differ from Most Recently Completed Portfolio because the former
figures reflect different performance periods and a reduced sales charge on
annual rollovers.
* Dow Jones & Company, Inc., owner of the name "Dow Jones Industrial
Average," is unaffiliated with, and did not participate in the
creation of the Portfolio or the selection of its stocks, and has
neither reviewed nor approved any information in this brochure or the
prospectus relating to the Portfolio. "S&P 500 Index" is a trademark
of The McGraw-Hill Companies, Inc.
[logo] Select Ten Portfolio DJIA
The Dow Jones Industrial Average
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<PAGE>
The Dow Jones Industrial Average consists of 30 common stocks chosen by the
editors of The Wall Street Journal as representative of American industry.
These companies are highly capitalized, and their stocks are widely held by
both individual and institutional investors.
The current companies are:
Alcoa
American Express
AT&T
Boeing
Caterpillar
Citigroup
Coca-Cola
Du Pont
Eastman Kodak
Exxon Mobil
General Electric
General Motors
Hewlett-Packard
Home Depot
Honeywell International
IBM
Intel
International Paper
Johnson & Johnson
J.P. Morgan
McDonald's
Merck
Microsoft
Minnesota Mining & Manufacturing (3M)
Philip Morris
Procter & Gamble
SBC Communications
United Technologies
Wal-Mart Stores
Walt Disney
Hypothetical Past Performance of the Strategy (not any Portfolio)
Growth of $10,000 Invested Over 25 Years-- 1/1/75 Through 12/31/99
Strategy(ss) $505,673 DJIA $477,202 S&P 500 Index* $508,254
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Growth of $10,000 Invested Over 27 Years--
1/1/73 Through 12/31/99
[A Mountain Chart with dates on the x-axis and $ on the y-axis, depicts the
performance of the DJIA, S&P 500 Index, and Strategy (net of sales charges and
expenses)(ss), respectively, as follows, with a total return as of 12/31/99:
$318,656, $318,932, $476,488.]
Since stocks in the Portfolio were chosen solely by applying the Strategy, we
anlayzed the Strategy to see how it could have performed. Past performance of
the Strategy is no guarantee of future results of any Portfolio. The Strategy
(with Portfolio sales charges and expenses deducted) would have underperformed
the DJIA in 14 and the S&P 500 Index in 13 of the last 27 years. There can be
no assurance that any Portfolio will outperform either index.
Portfolio results of this equally-weighted value-oriented Strategy may differ
from the capitalization-weighted DJIA for various reasons. For example, the
DJIA performance may be driven by stocks not held in the Portfolio, such as
growth stocks.
27-Year Annual Total Returns
Strategy returns are net of sales charges and expenses. (ss)
<TABLE>
Year Strategy(ss) DJIA S&P 500 Year Strategy(ss) DJIA S&P 500
Index Index
<S> <C> <C> <C> <C> <C> <C> <C>
1973 -4.08% -13.12% -14.66% 1987 5.06 6.02 5.67
1974 -2.40 -23.14 -26.47 1988 22.44 15.95 16.58
1975 55.65 44.40 36.92 1989 25.65 31.71 31.11
1976 33.25 22.72 23.53 1990 -10.14 -0.57 -3.20
1977 -2.90 -12.71 -7.19 1991 31.81 23.93 30.51
1978 -1.91 2.69 6.39 1992 6.44 7.34 7.67
1979 10.48 10.52 18.02 1993 25.30 16.72 9.97
1980 24.69 21.41 31.50 1994 1.95 4.95 1.30
1981 5.51 -3.40 -4.83 1995 34.97 36.48 37.10
1982 23.78 25.79 20.26 1996 26.34 28.57 22.69
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<PAGE>
1983 36.93 25.68 22.27 1997 19.92 24.78 33.10
1984 5.41 1.06 5.95 1998 8.55 18.00 28.34
1985 27.00 32.78 31.43 1999 1.68 27.01 20.89
1986 32.96 26.91 18.37 Average 15.39% 13.68% 13.68%
</TABLE>
Average Annual Total Returns
For periods ending 12/31/99
3 year 5 year 10 year 15 year 20 year 25 year
Strategy(ss) 9.49% 17.51% 13.65% 16.47% 17.01% 16.99%
DJIA 23.20% 26.83% 18.19% 19.52% 17.95% 16.72%
S&P 500 Index 27.34% 28.28% 18.07% 18.78% 17.64% 17.02%
Returns shown represent price changes plus dividends reinvested at year ends,
divided by the initial public offering price and do not reflect deduction of
any commissions or taxes. Portfolio performance will differ from the Strategy
because Portfolios are established and liquidated at different times during the
year, they normally purchase and sell stocks at prices different from those
used in determining Portfolio unit price, they are not fully invested at all
times, stocks may not be weighted equally and Strategy returns do not reflect
deduction of commissions.
(ss) Net of Portfolio sales charges (2.50% for the first year, 1.50% for
each subsequent year), creation and development fee and estimated
expenses.
Defined Asset Funds (R)
Buy With Knowledge
Hold with Confidence
Equity Investor Funds
Other Select Series
United Kingdom Portfolio
(Financial Times Index)
Institutional Holdings Portfolio
Select Growth Portfolio
Select Large-Cap Growth Portfolio
Select S&P Industrial Portfolio
Select Standard & Poor's Industry Turnaround Portfolio
Select Standard & Poor's Intrinsic Value Portfolio
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<PAGE>
Concept Series
Baby Boom Economy Portfolios (SM)
Earnings Growth Consistency Portfolio
Energy Portfolio
Financial Services Portfolio
Health Care Trust
Internet Portfolio
Premier American Portfolio
Premier World Portfolio Real
Estate Income Fund
Tele-Global Trust
Utility Portfolio
Western Premier Portfolio
Index Series
S&P 500 Trust
S&P MidCap Trust
Fixed-Income Funds
Corporate Funds
Government Funds
Municipal Funds
Defined Asset Funds--
Our Philosophy
At Defined Asset Funds, we are ever mindful that behind every investment dollar
lies something infinitely more important -- your investment goal. This is why
we offer a full range of defined investments designed to meet a variety of
objectives.
We are committed to providing our investors with some of today's most
attractive equity and fixed-income investments, within the convenient structure
of a unit investment trust. For income, for growth or for total return, we
believe that time in the market can be an effective strategy for growing your
portfolio.
At Defined Asset Funds, we set the foundation for all of our portfolios in this
way, because we too have an important goal in mind -- yours.
Select Today!
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<PAGE>
You can get started with the Select Ten Portfolio for $250. Call your financial
professional for a free prospectus containing more complete information,
including sales charges, expenses and risks.
Please read it carefully before you invest or send money.
Defining Your Risks
Please keep in mind the following factors when considering this investment.
Your financial professional will be happy to answer any questions you may have.
The Portfolio is designed for investors who can assume the risks
associated with equity investments. It may not be appropriate for
investors seeking capital preservation or high current income.
There can be no assurance that the Portfolio will meet its objective,
that dividend rates will be maintained, that stock or unit prices will
not decrease over the life of the Portfolio or that the Portfolio will
outperform the indices.
The value of your investment will fluctuate with the prices of the
underlying stocks. Stock prices can be volatile.
These stocks may have higher yields because they or their industries
are experiencing financial difficulties or are out of favor. There can
be no assurance that the market factors which contributed to these
relatively low prices and high yields will change.
Tax Reporting
When seeking capital appreciation, managing tax liability on capital gains can
be vital to your overall return. By holding this Fund for more than one year,
individuals may be eligible for favorable federal tax rates on net long-term
capital gains (currently no more than 20%).
Generally, dividends and any gains will be subject to tax each year whether or
not reinvested. However, on rollovers to future Portfolios, if available,
investors will defer recognition of gains and losses on stocks that are
transferred to the new Portfolio. Please consult your tax advisor concerning
state and local taxation.
Defining Your Costs
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<PAGE>
You will pay an initial sales charge of about 1% the first time you buy. In
addition, you'll pay a deferred sales charge of $15.00 per 1,000 units, about
1.50%, deducted over the last ten months of the Portfolio.
As a % of Public Amount Per 1,000
Offering Price Units
Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.50% $15.00
Maximum Sales Charge 2.50% $25.00
Creation and Development Fee (as a % 0.250% $ 2.48
of net assets)
Estimated Annual Expenses (as a % of 0.171% $ 1.69
net assets)
Organization Costs $ 1.14
If you sell your units before the termination date, the remaining balance of
your deferred sales charge will be deducted, along with the estimated costs of
selling Portfolio securities, from the proceeds you receive. If you roll over
to a successor Portfolio, if available, the initial sales charge on that
Portfolio will be waived. You will only pay the deferred sales charge.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Total Sales Charge as a % of
Purchased Public Offering Price
Less than $50,000 2.50%
$50,000 to $99,999 2.25
$100,000 to $249,999 1.75
$250,000 to $999,999 1.50
$1,000,000 or more 0.75
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<PAGE>
The information in this brochure is not complete and may be changed. We may not
sell the securities of the next Portfolio until the registration statement
filed with the Securities and Exchange Commission is effective. This brochure
is not an offer to sell these securities and is not soliciting an offer to buy
these securities in any state where their offer or sale is not permitted.
[logo] Printed on Recycled Paper
11342BR-3/00
(c) 2000 Merrill Lynch, Pierce, Fenner & Smith Incorporated. Member SIPC.
Defined Asset Funds is a registered service mark of Merrill Lynch & Co., Inc.
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