Edgar Filing: GABELLI EQUITY TRUST INC

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of
1934 (Amendment No. __)

Filed by Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:

[ ] Preliminary Proxy Statement

[ ] Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
[ X ] Definitive Proxy Statement
[ ] Definitive Additional Materials

[ ] Soliciting Material Pursuant to Sec. 240.14a-12

THE GABELLI EQUITY TRUST INC.
(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

[X] No fee required.

[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

1) Title of each class of securities to which transaction
applies:

2) Aggregate number of securities to which transaction applies:

3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11(set forth the
amount on which the filing fee is calculated and state how it
was determined):

4) Proposed maximum aggregate value of transaction:

5) Total fee paid:

[ ] Fee paid previously with preliminary materials.

[ ] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.

1) Amount Previously Paid:

2) Form, Schedule or Registration Statement No.:

3) Filing Party:

4) Date Filed:

THE GABELLI EQUITY TRUST INC.
One Corporate Center
Rye, New York 10580-1422
(914) 921-5070
------------------

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 12, 2003
------------------

To the Shareholders of
THE GABELLI EQUITY TRUST INC.

Notice is hereby given that the Annual Meeting of Shareholders (the
"Meeting") of The Gabelli Equity Trust Inc. (the "Equity Trust") will be held at
The Bruce Museum, One Museum Drive, Greenwich, Connecticut 06830, on Monday, May
12, 2003, at 9:00 a.m., for the following purposes:

1. To elect three (3) Directors of the Equity Trust, two to be elected by
the holders of the Equity Trust's Common Stock and holders of its 7.25%
Series A, 7.20% Series B, and Series C Auction Rate Cumulative
Preferred Stock ("Preferred Stock"), voting together as a single class,
and one to be elected by the holders of the Equity Trust's Preferred
Stock, voting as a separate class (PROPOSAL 1); and

2. To consider and vote upon such other matters, including adjournments,
as may properly come before said Meeting or any adjournments thereof.

These items are discussed in greater detail in the attached Proxy
Statement.

The close of business on March 10, 2003 has been fixed as the record date
for the determination of shareholders entitled to notice of and to vote at the
Meeting and any adjournments thereof.

YOUR VOTE IS IMPORTANT REGARDLESS OF THE SIZE OF YOUR HOLDINGS IN THE
EQUITY TRUST. WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING, WE ASK THAT YOU
PLEASE COMPLETE AND SIGN THE ENCLOSED PROXY CARD AND RETURN IT PROMPTLY IN THE
ENCLOSED ENVELOPE, WHICH NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES.
INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH ON THE INSIDE
COVER.

By Order of the Board of Directors

JAMES E. MCKEE
SECRETARY

April 11, 2003

INSTRUCTIONS FOR SIGNING PROXY CARDS

The following general rules for signing proxy cards may be of assistance
to you and avoid the time and expense to the Equity Trust involved in validating
your vote if you fail to sign your proxy card properly.

1. INDIVIDUAL ACCOUNTS: Sign your name exactly as it appears in the
registration on the proxy card.

2. JOINT ACCOUNTS: Either party may sign, but the name of the party
signing should conform exactly to the name shown in the registration.

3. ALL OTHER ACCOUNTS: The capacity of the individuals signing the proxy
card should be indicated unless it is reflected in the form of
registration. For example:

REGISTRATION VALID SIGNATURE
------------ ---------------
CORPORATE ACCOUNTS

(1) ABC Corp. ABC Corp.
(2) ABC Corp. John Doe, Treasurer
(3) ABC Corp.
c/o John Doe, Treasurer John Doe
(4) ABC Corp., Profit Sharing Plan John Doe, Trustee

TRUST ACCOUNTS

(1) ABC Trust Jane B. Doe, Trustee
(2) Jane B. Doe, Trustee
u/t/d 12/28/78 Jane B. Doe

CUSTODIAN OR ESTATE ACCOUNTS

(1) John B. Smith, Cust.
f/b/o John B. Smith, Jr. UGMA John B. Smith
(2) John B. Smith, Executor
Estate of Jane Smith John B. Smith, Executor

TELEPHONE/INTERNET VOTING

Various brokerage firms may offer the convenience of providing you voting
instructions via telephone or the Internet for shares held through such firms.
If available, instructions are included with this Proxy Statement and proxy
card.

THE GABELLI EQUITY TRUST INC.
----------

ANNUAL MEETING OF SHAREHOLDERS

MAY 12, 2003
----------

PROXY STATEMENT

This Proxy Statement is furnished in connection with the solicitation of
proxies by the Board of Directors of The Gabelli Equity Trust Inc. (the "Equity
Trust") for use at the Annual Meeting of Shareholders of the Equity Trust to be
held on Monday, May 12, 2003, at 9:00 a.m., at The Bruce Museum, One Museum
Drive, Greenwich, Connecticut 06830, and at any adjournments thereof (the
"Meeting"). A Notice of Annual Meeting of Shareholders and proxy card accompany
this Proxy Statement, all of which are first being mailed to Shareholders on or
about April 11, 2003.

In addition to the solicitation of proxies by mail, officers of the Equity
Trust and officers and regular employees of EquiServe Trust Company N.A.
("EquiServe"), the Equity Trust's transfer agent, and affiliates of EquiServe or
other representatives of the Equity Trust also may solicit proxies by telephone,
telegraph, Internet or in person. In addition, the Equity Trust has retained
Georgeson Shareholder Communications Inc. to assist in the solicitation of
proxies for a minimum fee of $5,000 plus reimbursement of expenses. The costs of
proxy solicitation and the expenses incurred in connection with preparing the
Proxy Statement and its enclosures will be paid by the Equity Trust. The Equity
Trust will also reimburse brokerage firms and others for their expenses in
forwarding solicitation materials to the beneficial owners of its shares.

THE EQUITY TRUST'S MOST RECENT ANNUAL REPORT, INCLUDING AUDITED FINANCIAL
STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002, IS AVAILABLE UPON
REQUEST, WITHOUT CHARGE, BY WRITING THE EQUITY TRUST AT ONE CORPORATE CENTER,
RYE, NEW YORK 10580-1422 OR CALLING THE EQUITY TRUST AT 800-422-3554 OR VIA THE
INTERNET AT WWW.GABELLI.COM.

If the enclosed proxy is properly executed and returned in time to be
voted at the Meeting, the Shares (as defined below) represented thereby will be
voted "FOR" the election of the nominees as Directors listed in the accompanying
Notice of Annual Meeting of Shareholders, unless instructions to the contrary
are marked thereon, and in the discretion of the proxy holders as to the
transaction of any other business that may properly come before the Meeting. Any
shareholder who has given a proxy has the right to revoke it at any time prior
to its exercise either by attending the Meeting and voting his or her shares in
person or by submitting a letter of revocation or a later-dated proxy to the
Equity Trust at the above address prior to the date of the Meeting.

In the event a quorum is not present at the Meeting, or in the event that
a quorum is present at the Meeting but sufficient votes to approve any of the
proposed items are not received, the persons named as proxies may propose one or
more adjournments of such Meeting to permit further solicitation of proxies. A
shareholder vote may be taken on one or more of the proposals in this Proxy
Statement prior to such adjournment if sufficient votes have been received for
approval and it is otherwise appropriate. Any such adjournment will require the
affirmative vote of a majority of those shares present at the Meeting in person
or by proxy. If a quorum is present, the persons named as proxies will vote
those proxies which they are entitled to vote "FOR" any proposal in favor of
such adjournment and will vote those proxies required to be voted "AGAINST" any
proposal against any such adjournment.

The close of business on March 10, 2003 has been fixed as the record date
for the determination of shareholders entitled to notice of and to vote at the
Meeting and all adjournments thereof.

The Equity Trust has two classes of capital stock: common stock, par value
$0.001 per share ("Common Stock"), and preferred stock consisting of, (i) 7.25%
Series A Cumulative Preferred Stock ("Series A Preferred"), (ii) 7.20% Series B
Cumulative Preferred Stock ("Series B Preferred") par value $0.001 per share
and, (iii) Series C Auction Rate Cumulative Preferred Stock ("Series C
Preferred"), (together "Preferred Stock") (together with the Common Stock, the
"Shares"). The holders of the Common Stock and Preferred Stock are each entitled
to one vote for each full share and an appropriate fraction of a vote for each
fractional share held. On the record date, March 10, 2003, there were
134,059,967 shares of Common Stock, 5,367,900 Shares of Series A Preferred,
6,600,000 shares of Series B Preferred, and 5,200 Shares of Series C Preferred
Stock outstanding.

As of the record date, there were no persons known to the Equity Trust to
be beneficial owners of more than 5% of the Equity Trust's outstanding shares of
Common Stock or Preferred Stock.

SUMMARY OF VOTING RIGHTS ON PROXY PROPOSALS

PROPOSAL COMMON STOCKHOLDERS PREFERRED STOCKHOLDERS
-------- ------------------- ----------------------

1. Election of Directors Common and Preferred Stockholders, Common and Preferred Stockholders,
voting together as a single class, vote to voting together as a single class, vote to
elect two Directors: Karl Otto Pohl elect two Directors: Karl Otto Pohl
and Anthony R. Pustorino and Anthony R. Pustorino

Preferred Stockholders, voting as a
separate class, vote to elect one
Director: James P. Conn

2. Other Business Common and Preferred Stockholders, voting together as a single class.

In order that your Shares may be represented at the Meeting, you are
requested to vote on the following matters:

PROPOSAL 1: TO ELECT THREE (3) DIRECTORS OF THE EQUITY TRUST

NOMINEES FOR THE BOARD OF DIRECTORS

The Board of Directors is divided into three classes, each class having a
term of three years. Each year the term of office of one class will expire.
James P. Conn, Karl Otto Pohl, and Anthony R. Pustorino have each been nominated
by the Board of Directors for a three-year term to expire at the Equity Trust's
2006 Annual Meeting of Shareholders or until their successors are duly elected
and qualified. Each of the Directors of the Equity Trust has served in that
capacity since the July 14, 1986 organizational meeting of the Equity Trust with
the exception of (i) Mr. Conn, who became a Director of the Equity Trust on May
15, 1989, (ii) Mr. Pohl, who became a Director of the Equity Trust on February
19, 1992, (iii) Mr. Fahrenkopf, Jr., who became a Director of the Equity Trust
on May 11, 1998, (iv) Mr. Colavita, who became a Director of the Equity Trust on
November 17, 1999, and (v) Mr. Ferrara, who became a Director of the Equity
Trust on August 15, 2001. All of the Directors of the Equity Trust are also
directors or trustees of other investment companies for which Gabelli Funds, LLC
(the "Adviser") or its affiliates serve as adviser. The classes of Directors are
indicated below:

NOMINEES TO SERVE UNTIL 2006 ANNUAL MEETING OF SHAREHOLDERS
-----------------------------------------------------------
James P. Conn
Karl Otto Pohl
Anthony R. Pustorino

DIRECTORS SERVING UNTIL 2005 ANNUAL MEETING OF SHAREHOLDERS
-----------------------------------------------------------
Anthony J. Colavita
Frank J. Fahrenkopf, Jr.
Salvatore J. Zizza

DIRECTORS SERVING UNTIL 2004 ANNUAL MEETING OF SHAREHOLDERS
-----------------------------------------------------------
Mario J. Gabelli, CFA
Dr. Thomas E. Bratter
Arthur V. Ferrara

Under the Equity Trust's Articles of Incorporation, Articles Supplementary
and the Investment Company Act of 1940, as amended (the "1940 Act"), holders of
the Equity Trust's outstanding Preferred Stock, voting as a separate class, are
entitled to elect two Directors, and holders of the Equity Trust's outstanding
Common Stock and Preferred Stock, voting as a single class, are entitled to
elect the remaining Directors, subject to the provisions of the 1940 Act and the
Equity Trust's Articles of Incorporation, Articles Supplementary and By-Laws.
The holders of the Equity Trust's outstanding Preferred Stock would elect the
minimum number of additional Directors that would represent a majority of the
Directors in the event that dividends on the Equity Trust's Preferred Stock are
in arrears for two full years. No dividend arrearages exist at this time.
Anthony J. Colavita and James P. Conn are currently the Directors representing
the holders of the Equity Trust's Preferred Stock and are elected solely by the
holders of the Equity Trust's Preferred Stock. A quorum of the Preferred
Stockholders must be present at the Meeting in order for the proposal to elect
Mr. Conn to be considered.

Unless authority is withheld, it is the intention of the persons named in
the proxy to vote the proxy "FOR" the election of the nominees named above. Each
nominee has indicated that he has consented to serve as a Director if elected at
the Meeting. If a designated nominee declines or otherwise becomes unavailable
for election, however, the proxy confers discretionary power on the persons
named therein to vote in favor of a substitute nominee or nominees.

INFORMATION ABOUT DIRECTORS AND OFFICERS

Set forth in the table below are the existing Directors and Nominees for
election to the Board of the Equity Trust, including information relating to
their respective positions held with the Equity Trust, a brief statement of
their principal occupations during the past five years and other directorships,
if any.

TERM OF NUMBER OF
OFFICE AND PORTFOLIOS IN
NAME, POSITION(S) LENGTH OF FUND COMPLEX
ADDRESS(1) TIME PRINCIPAL OCCUPATION(S) OTHER DIRECTORSHIPS OVERSEEN
AND AGE SERVED(2) DURING PAST FIVE YEARS HELD BY DIRECTOR BY DIRECTOR
------- ------- ---------------------- ---------------- ------------

INTERESTED DIRECTORS(3):
---------------------
MARIO J. GABELLI Since 1986* Chairman of the Board and Chief Director of Morgan Group 22
Director and Executive Officer of Gabelli Asset Holdings, Inc. (holding
Chief Investment Officer Management Inc. and Chief company); Vice Chairman
Age: 60 Investment Officer of Gabelli Funds, of Lynch Corporation
LLC and GAMCO Investors, Inc.; (diversified manufacturing)
Vice Chairman of Lynch Interactive
Corporation (multimedia and services)

KARL OTTO POHL Since 1992*** Member of the Shareholder Director of Gabelli Asset 31
Director Committee of Sal Oppenheim Jr. & Management Inc. (investment
Age: 73 Cie (private investment bank); management); Chairman,
Former President of the Deutsche Incentive Capital and Incentive
Bundesbank and Chairman of its Asset Management (Zurich);
Central Bank Council (1980-1991) Director at Sal Oppenheim Jr. &
Cie, Zurich

NON-INTERESTED DIRECTORS:
------------------------
THOMAS E. BRATTER Since 1986* Director, President and Founder, -- 3
Director The John Dewey Academy
Age: 63 (residential college preparatory
therapeutic high school)
ANTHONY J. COLAVITA(4) Since 1999** President and Attorney at Law in the -- 33
Director law firm of Anthony J. Colavita, P.C.
Age: 67

JAMES P. CONN(4) Since 1989*** Former Managing Director and Director of LaQuinta Corp. 11
Director Chief Investment Officer of (hotels) and First Republic
Age: 65 Financial Security Assurance Bank
Holdings Ltd. (1992-1998)

FRANK J. FAHRENKOPF, JR. Since 1998** President and Chief Executive -- 3
Director Officer of the American Gaming
Age: 63 Association since June 1995; Partner
of Hogan & Hartson (law firm);
Chairman of International Trade
Practice Group; Co-Chairman of the
Commission on Presidential Debates;
Former Chairman of the Republican
National Committee

ARTHUR V. FERRARA Since 2001* Formerly, Chairman of the Board and Director of the Guardian Life 9
Director Chief Executive Officer of The Insurance Company of America;
Age: 72 Guardian Life Insurance Company of Director of The Guardian
America from January 1993 to Insurance & Annuity Company, Inc.,
December 1995; President, Chief Guardian Investor Services
Executive Officer and a Director Corporation, and 5 mutual funds
prior thereto within the Guardian Fund Complex

ANTHONY R. PUSTORINO Since 1986*** Certified Public Accountant; -- 17
Director Professor Emeritus, Pace University
Age: 77

SALVATORE J. ZIZZA Since 1986** Chairman, Hallmark Electrical Director of Hollis Eden 9
Director Supplies Corp.; Former Executive Pharmaceuticals
Age: 57 Vice President of FMGGroup
(a healthcare provider)

TERM OF
OFFICE AND
NAME, POSITION(S) LENGTH OF
ADDRESS(1) TIME PRINCIPAL OCCUPATION(S)
AND AGE SERVED DURING PAST FIVE YEARS
------- ------ -----------------------
OFFICERS:
---------

BRUCE N. ALPERT Since 2003 Executive Vice President and Chief Operating Officer of Gabelli Funds, LLC since
President 1988 and an officer of all mutual funds advised by Gabelli Funds, LLC and its
Age: 51 affiliates. Director and President of Gabelli Advisers, Inc.

GUS A. COUTSOROUS Since 2003 Vice President and Chief Financial Officer of Gabelli Funds, LLC since 1998
Vice President and and an officer of all mutual funds advised by Gabelli Funds LLC, and its
Treasurer affiliates. Chief Financial Officer of Gabelli Advisers, Inc.
Age: 40 Prior to 1998, Treasurer of Lazard Funds.

CARTER W. AUSTIN Since 2000 Vice President of the Equity Trust. Vice President of Gabelli Funds, LLC since 1996.
Vice President
Age: 35

JAMES E. MCKEE Since 1995 Vice President, General Counsel and Secretary of Gabelli Asset Management Inc.
Secretary since 1999 and GAMCO Investors, Inc. since 1993; Secretary of all mutual funds
Age: 39 advised by Gabelli Advisers, Inc. and Gabelli Funds, LLC.

-------------
1 Address: One Corporate Center, Rye, NY 10580-1422, unless otherwise noted.
2 The Fund's Board of Directors is divided into three classes, each class having a term of three
years. Each year the term of office of one class expires and the successor or successors elected
to such class serve for a three-year term.
* Term expires at the Equity Trust's 2004 Annual Meeting of Shareholders and until his successor is
duly elected and qualified.
** Term expires at the Equity Trust's 2005 Annual Meeting of Shareholders and until his successor is
duly elected and qualified.
***Nominee to serve until the Equity Trust's 2006 Annual Meeting of Shareholders and until his
successor is duly elected and qualified.
3 "Interested person" of the Equity Trust as defined in the Investment Company Act of 1940, as
amended. Messrs. Gabelli and Pohl are each considered an "interested person" because of their
affiliation with Gabelli Funds, LLC which acts as the Equity Trust's investment adviser.
4 Represents holders of the Equity Trust's Preferred Stock.

BENEFICIAL OWNERSHIP OF SHARES HELD IN THE TRUST AND THE FUND COMPLEX FOR EACH
DIRECTOR AND NOMINEE FOR ELECTION AS DIRECTOR

Set forth in the table below is the dollar range of equity securities held
in the Equity Trust and the aggregate dollar range of equity securities in the
Fund complex beneficially owned by each Director.

NAME OF DIRECTOR DOLLAR RANGE OF EQUITY AGGREGATE DOLLAR RANGE OF EQUITY
SECURITIES HELD SECURITIES HELD
IN THE TRUST*(1)(2) IN FUND COMPLEX*(1)

Mario J. Gabelli E E

Dr. Thomas E. Bratter E E

Anthony J. Colavita C E

James P. Conn E E

Frank J. Fahrenkopf, Jr. A B

Arthur V. Ferrara A E

Karl Otto Pohl A A

NAME OF DIRECTOR DOLLAR RANGE OF EQUITY AGGREGATE DOLLAR RANGE OF EQUITY
SECURITIES HELD SECURITIES HELD
IN THE TRUST*(1)(2) IN FUND COMPLEX*(1)

Anthony R. Pustorino E E

Salvatore J. Zizza E E

--------------------------
* Key to Dollar Ranges
A. None
B. $1 - $10,000
C. $10,001 - $50,000
D. $50,001 - $100,000
E. Over $100,000
All shares were valued as of December 31, 2002.
(1) This information has been furnished by each Director as of December 31, 2002. "Beneficial
Ownership" is determined in accordance with Section 16a-1(a)(2) of the Securities Exchange Act of
1934, as amended (the "1934 Act").
(2) Less than 1%, with the exception of Mr. Gabelli, who beneficially owns 1.08% of the Equity
Trust's Common Shares outstanding.

The Equity Trust pays each Director not affiliated with the Adviser or its
affiliates, a fee of $12,000 per year plus $1,500 per meeting attended in person
and $500 per telephonic meeting, together with the Directors' actual
out-of-pocket expenses relating to their attendance at such meetings. The
aggregate remuneration (not including out-of-pocket expenses) paid by the Equity
Trust to such Directors during the year ended December 31, 2002 amounted to
$140,000. During the year ended December 31, 2002, the Directors of the Equity
Trust met five times, one of which was a special meeting of Directors. Each
Director then serving in such capacity attended at least 75% of the meetings of
Directors and of any Committee of which he is a member.

The Directors serving on the Equity Trust's Nominating Committee are
Messrs. Colavita (Chairman) and Zizza, who are not "interested persons" of the
Equity Trust as defined in the 1940 Act. The Nominating Committee is responsible
for recommending qualified candidates to the Board in the event that a position
is vacated or created. The Nominating Committee would consider recommendations
by shareholders if a vacancy were to exist. Such recommendations should be
forwarded to the Secretary of the Equity Trust. The Nominating Committee did not
meet during the year ended December 31, 2002. The Equity Trust does not have a
standing compensation committee.

Messrs. Pustorino (Chairman), Colavita and Zizza, who are not "interested
persons" of the Equity Trust as defined in the 1940 Act, serve on the Equity
Trust's Audit Committee. In addition, Messrs. Pustorino, Colavita and Zizza are
considered independent Directors pursuant to applicable New York Stock Exchange
rules. The Audit Committee is generally responsible for reviewing and evaluating
issues related to the accounting and financial reporting policies and practices
of the Equity Trust, its internal controls, and as appropriate, the internal
controls of certain service providers, overseeing the quality and objectivity of
the Equity Trust's financial statements and the audit thereof and to act as a
liaison between the Board of Directors and the Equity Trust's independent
accountants. During the year ended December 31, 2002, the Audit Committee met
twice.

Based upon the recommendation of the Equity Trust's Audit Committee, the
Equity Trust's Board of Directors, including those Directors who are not
"interested persons" (as defined in the 1940 Act) of the Equity Trust or its
Adviser, have approved the selection of PricewaterhouseCoopers LLP ("PWC"), 1177
Avenue of the Americas, New York, New York 10036, to serve as independent
accountants for the Equity Trust's fiscal year ending December 31, 2003. PWC has
advised the Trust that it is independent with respect

to the Trust in accordance with the applicable requirements of the American
Institute of Certified Public Accountants and the Securities and Exchange
Commission (the "SEC"). A representative of PWC will not be present at the
Meeting, but will be available by telephone and will have an opportunity to make
a statement if the representative so desires, and will be available to respond
to appropriate questions.

AUDIT COMMITTEE REPORT

The role of the Equity Trust's Audit Committee is to assist the Equity
Trust's Board of Directors in its oversight of the Equity Trust's
financial reporting process. The Board of Directors of the Equity Trust
has adopted a Charter for the Audit Committee. Management, however, is
responsible for maintaining appropriate systems for accounting and
internal control, and the Equity Trust's independent accountants are
responsible for planning and carrying out proper audits and reviews.

In connection with the Equity Trust's audited financial statements for the
year ended December 31, 2002, included in the Equity Trust's Annual Report
dated December 31, 2002 (the "Annual Report"), the Audit Committee
reviewed and discussed at a meeting held on February 13, 2003, the Equity
Trust's audited financial statements with management and the Equity
Trust's independent accountants, and discussed the audit of such financial
statements with the Equity Trust's independent accountants.

The Audit Committee specifically discussed with the independent
accountants the quality, and not just the acceptability under generally
accepted accounting principles, of the accounting principles applied by
the Equity Trust. The Audit Committee also received a formal written
statement from the Equity Trust's independent accountants delineating the
relationships between the independent accountants and the Equity Trust and
its affiliates and discussed matters designed to assist the Audit
Committee in determining whether the independence of the accountants might
reasonably be viewed as being adversely affected.

Members of the Equity Trust's Audit Committee are not employed by the
Equity Trust for accounting, financial management or internal control
purposes. Moreover, the Audit Committee relies on and makes no independent
verification of the facts presented to it or representations made by
management or the Equity Trust's independent accountants. Accordingly, the
Audit Committee's oversight does not provide an independent basis to
determine that management has maintained appropriate accounting and/or
financial reporting principles and policies, or internal controls and
procedures, designed to assure compliance with accounting standards and
applicable laws and regulations. Furthermore, the Audit Committee's
considerations and discussions referred to above do not provide assurance
that the audit of the Equity Trust's financial statements has been carried
out in accordance with generally accepted auditing standards or that the
financial statements are presented in accordance with generally accepted
accounting principles.

Based on its consideration of the Equity Trust's audited financial
statements and the discussions referred to above with management and the
Equity Trust's independent accountants, and subject to the limitations on
the responsibilities and role of the Audit Committee set forth in the
Audit Committee's Charter and those discussed above, the Audit Committee
recommended to the Equity Trust's Board of Directors that the Equity
Trust's audited financial statements be included in the Equity Trust's
Annual Report.

Set forth in the table below are audit fees and non-audit related fees
billed by the Equity Trust's independent accountants to the Equity Trust
for the fiscal year ended December 31, 2002.

FINANCIAL INFORMATION
SYSTEMS DESIGN AND
AUDIT FEES IMPLEMENTATION FEES ALL OTHER FEES
---------- ------------------- --------------

$36,000 - For No fees were billed for $87,500 - For tax services and
professional services professional services rendered other attest services rendered
rendered for the audit to the Trust, the Trust's by the principal accountant
of the Trust's annual investment adviser and any (other than those disclosed in
financial statements entity controlling, controlled the previous columns) to the
for the fiscal year by or under common control Trust. There were no other
ended December 31, with the Adviser that provides fees paid by the Trust's
2002. services to the Trust. investment adviser and any
entity controlling, controlled
by or under common control
with the Adviser that provides
services to the Trust.

The Audit Committee has considered whether the provision of the non-audit
services is compatible with maintaining the auditors' independence.

SUBMITTED BY THE AUDIT COMMITTEE OF THE EQUITY TRUST'S BOARD OF DIRECTORS

Anthony R. Pustorino, Chairman
Anthony J. Colavita
Salvatore J. Zizza

The following table sets forth certain information regarding the
compensation of the Equity Trust's Directors and officers for the fiscal year
ended December 31, 2002. Mr. Austin is employed by the Trust and is not employed
by the Adviser (although he may receive incentive-based variable compensation
from affiliates of the Adviser). Officers of the Equity Trust who are employed
by the Adviser receive no compensation or expense reimbursement from the Equity
Trust.

COMPENSATION TABLE
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002

AGGREGATE COMPENSATION FROM
AGGREGATE COMPENSATION THE EQUITY TRUST AND FUND
NAME OF PERSON AND POSITION FROM THE EQUITY TRUST COMPLEX PAID TO DIRECTORS AND OFFICERS*
--------------------------- --------------------- ---------------------------------------

MARIO J. GABELLI $0 $0 (22)
Chairman of the Board,
President and
Chief Investment Officer

DR. THOMAS E. BRATTER $18,000 $31,000 (3)
Director

ANTHONY J. COLAVITA $22,000 $152,286 (33)
Director

JAMES P. CONN $19,000 $53,500 (11)
Director

FRANK J. FAHRENKOPF, JR. $18,000 $31,000 (3)
Director

ARTHUR V. FERRARA $18,500 $30,000 (9)
Director

KARL OTTO POHL $0 $0 (31)
Director

ANTHONY R. PUSTORINO $23,500 $132,286 (17)
Director

SALVATORE J. ZIZZA $21,000 $73,750 (9)
Director

CARTER W. AUSTIN $190,000 $190,000 (1)
Vice President

PETER W. LATARTARA $15,000 $160,000 (3)
Vice President

------------------
* Represents the total compensation paid to such persons during the calendar year ended December
31, 2002 by investment companies (including the Equity Trust) or portfolios thereof from which
such person receives compensation that are considered part of the same fund complex as the
Equity Trust because they have common or affiliated advisers. The number in parentheses
represents the number of such investment companies and portfolios.

REQUIRED VOTE

The election of each of the listed nominees for Director of the Equity
Trust requires the affirmative vote of the holders of a plurality of the
applicable classes of shares of the Equity Trust represented at the Meeting if a
quorum is present (Common and Preferred Stockholders vote together as a single
class for two Directors, and Preferred Stockholders vote separately for one
Director).

THE BOARD OF DIRECTORS, INCLUDING THE "NON-INTERESTED" DIRECTORS,
UNANIMOUSLY RECOMMENDS THAT THE COMMON AND PREFERRED SHAREHOLDERS VOTE "FOR" THE
ELECTION OF EACH NOMINEE.

ADDITIONAL INFORMATION

THE INVESTMENT ADVISER AND ADMINISTRATOR

Gabelli Funds, LLC is the Equity Trust's Adviser and Administrator and its
business address is One Corporate Center, Rye, New York 10580-1422.

COMPLIANCE WITH THE SECURITIES EXCHANGE ACT OF 1934

Section 16(a) of the 1934 Act and Section 30(h) of the 1940 Act, and the
rules thereunder, require the Equity Trust's officers and Directors, officers
and Directors of the Adviser, affiliated persons of the Adviser, and persons who
own more than 10% of a registered class of the Equity Trust's securities, to
file reports of ownership and changes in ownership with the SEC and the New York
Stock Exchange, Inc. and to furnish the Equity Trust with copies of all Section
16(a) forms they file. Based solely on the Equity Trust's review of the copies
of such forms it receives, the Equity Trust believes that during the calendar
year ended 2002, such persons complied with all such applicable filing
requirements except that a filing on behalf of Mr. Pustorino, whose sale of
1,746 shares of Common Stock in September 2002, was made in April 2003.

BROKER NON-VOTES AND ABSTENTIONS

The affirmative vote of a majority of votes cast for each Director by the
holders entitled to vote for a particular Director is necessary for the election
of a Director. Abstentions or broker non-votes will not be counted as votes cast
and will have no effect on the result of the vote. Abstentions or broker
non-votes however, will be considered to be present at the Meeting for purposes
of determining the existence of a quorum.

Shareholders of the Equity Trust will be informed of the voting results of
the Meeting in the Equity Trust's Semi-Annual Report dated June 30, 2003.

OTHER MATTERS TO COME BEFORE THE MEETING

The Directors of the Equity Trust do not intend to present any other
business at the Meeting, nor are they aware that any shareholder intends to do
so. If, however, any other matters, including adjournments, are properly brought
before the Meeting, the persons named in the accompanying form of proxy will
vote thereon in accordance with their judgment.

SHAREHOLDER PROPOSALS

All proposals by shareholders of the Equity Trust, which are intended to
be presented at the Equity Trust's next Annual Meeting of Shareholders to be
held in 2004, must be received by the Equity Trust for consideration for
inclusion in the Equity Trust's proxy statement and proxy relating to that
meeting no later than December 12, 2003. There are additional requirements
regarding proposals of shareholders, and a shareholder contemplating submission
of a proposal is referred to Rule 14a-8 under the 1934 Act.

IT IS IMPORTANT THAT PROXIES BE RETURNED PROMPTLY. SHAREHOLDERS WHO DO NOT
EXPECT TO ATTEND THE MEETING ARE THEREFORE URGED TO COMPLETE, SIGN, DATE AND
RETURN THE PROXY CARD AS SOON AS POSSIBLE IN THE ENCLOSED POSTAGE-PAID ENVELOPE.

GBFCM-PS-2003

[GBFCM - THE GABELLI EQUITY TRUST INC.] [FILE NAME: ZGBFM1.ELX] [VERSION -
(1)] [03/17/03] [ORIG. 03/17/03]
DETACH HERE ZGBFM1

THE GABELLI EQUITY TRUST INC.
C/O EQUISERVE TRUST COMPANY N.A.
P.O. BOX 8694
EDISON, NJ 08818-8694

PLEASE MARK
VOTES AS IN
THIS EXAMPLE. [X]

1. To elect two (2) directors of the equity trust:
(01) KARL OTTO POHL
(02) ANTHONY R. PUSTORINO

-------------------------------
THE GABELLI EQUITY TRUST INC.
-------------------------------
COMMON SHAREHOLDER

For All
Nominees_____ Withhold______

For all
Except________________________________________________________________________
(instruction: to withhold authority to vote for any individual nominee, write
that nominee's name in the space provided above.) Mark box at right if an
address change or comment has been noted on the reverse side of this card.

Please be sure to sign and date this proxy.____

Signature:_______ Date:_________ Co-owner:________ Date:________

COMMON THE GABELLI EQUITY TRUST INC. COMMON
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned hereby appoints Mario J. Gabelli, James E. Mckee and Bruce N.
Alpert, and each of them, attorneys and proxies of the undersigned, with full
powers of substitution and revocation, to represent the undersigned and to vote
on behalf of the undersigned all shares of The Gabelli Equity Trust Inc. (The
"equity trust") which the undersigned is entitled to vote at the annual meeting
of shareholders of the equity trust to be held at the Bruce Museum, One Museum
drive, Greenwich, Connecticut 06830 on Monday, May 12, 2003 at 9:00 a.M., And at
any adjournments thereof. The undersigned hereby acknowledges receipt of the
notice of meeting and proxy statement and hereby instructs said attorneys and
proxies to vote said shares as indicated herein. In their discretion, the
proxies are authorized to vote upon such other business as may properly come
before the meeting.

A majority of the proxies present and acting at the meeting in person or by
substitute (or, if only one shall be so present, then that one) shall have and
may exercise all of the power and authority of said proxies hereunder. The
undersigned hereby revokes any proxy previously given.

This proxy, if properly executed, will be voted in the manner directed by the
undersigned shareholder. If no direction is made, this proxy will be voted for
the election of the nominees as directors and in the discretion of the proxy
holder as to any other matter that may properly come before the meeting. Please
refer to the proxy statement for a discussion of proposal no. 1.

--------------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE SIDE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
Please sign this proxy exactly as your name(s) appear(s) on the books of the
equity trust. If joint owners, either may sign. Trustees and other fiduciaries
should indicate the capacity in which they sign, and where more than one name
appears, a majority must sign. If a corporation, this signature should be that
of an authorized officer who should state his or her title.
--------------------------------------------------------------------------------

HAS YOUR ADDRESS CHANGED? DO YOU HAVE ANY COMMENTS?
____________________________________ _______________________________
____________________________________ _______________________________
____________________________________ _______________________________

THE GABELLI EQUITY TRUST INC.
C/O EQUISERVE TRUST COMPANY N.A.
P.O. BOX 8694
EDISON, NJ 08818-8694

[GBFPF - THE GABELLI EQUITY TRUST (PREFERRED)] [FILE NAME: ZGBFF1.ELX]
[VERSION - (1)] [03/17/03] [ORIG. 03/17/03]
Detach here if you are returning your proxy card by mail zgbff1

PLEASE MARK
VOTES AS IN
THIS EXAMPLE. [X]

1. To elect three (3) directors of the equity trust:
(01) JAMES P. CONN
(02) KARL OTTO P/HL
(03) ANTHONY R. PUSTORINO

FOR ALL
NOMINEES_____ WITHHOLD______

FOR ALL
EXCEPT__________________________________________________________________________
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE, WRITE
THAT NOMINEE'S NAME IN THE SPACE PROVIDED ABOVE.)

---------------------------------------
THE GABELLI EQUITY TRUST INC.
---------------------------------------
PREFERRED SHAREHOLDER

Mark box at right if an address change or comment has been noted on the
reverse side of this card.

Please be sure to sign and date this proxy.

Signature:___________ Date:____________ Co-owner:___________ Date:__________

[GBFPF - THE GABELLI EQUITY TRUST (PREFERRED)] [FILE NAME: ZGBFF2.ELX]
[VERSION - (2)] [04/09/03] [ORIG. 03/17/03]
DETACH HERE ZGBFF2

PREFERRED THE GABELLI EQUITY TRUST INC. PREFERRED
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned hereby appoints Mario J. Gabelli, James E. Mckee and Bruce N.
Alpert, and each of them, attorneys and proxies of the undersigned, with full
powers of substitution and revocation, to represent the undersigned and to vote
on behalf of the undersigned all shares of The Gabelli Equity Trust Inc. (The
"Equity Trust") which the undersigned is entitled to vote at the annual meeting
of shareholders of the equity trust to be held at the Bruce Museum, One Museum
drive, Greenwich, Connecticut 06830 on Monday, May 12, 2003 at 9:00 a.M., And at
any adjournments thereof. The undersigned hereby acknowledges receipt of the
notice of meeting and proxy statement and hereby instructs said attorneys and
proxies to vote said shares as indicated herein. In their discretion, the
proxies are authorized to vote upon such other business as may properly come
before the meeting.

Has your address changed? Do you have any comments?
____________________________________ ____________________________________
____________________________________ ____________________________________
____________________________________ ____________________________________

THE GABELLI EQUITY TRUST INC.
C/O EQUISERVE TRUST COMPANY, N.A.
P.O. BOX 8694
EDISON, NJ 08818-8694

[GBFPP - THE GABELLI EQUITY TRUST INC. (PREFERRED)] [FILE NAME: ZGBPP1.ELX]
[VERSION - (1)] [03/17/03] [ORIG. 03/17/03]
DETACH HERE IF YOU ARE RETURNING YOUR PROXY CARD BY MAIL ZGBPP1

PLEASE MARK
VOTES AS IN
THIS EXAMPLE. [X]

1. TO ELECT THREE (3) DIRECTORS OF THE EQUITY TRUST:
(01) JAMES P. CONN
(02) KARL OTTO P/HL
(03) ANTHONY R. PUSTORINO

FOR ALL
NOMINEES
WITHHOLD
FOR ALL
EXCEPT__________________________________________________________________________
(INSTRUCTION: TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE, WRITE
THAT NOMINEE'S NAME IN THE SPACE PROVIDED ABOVE.)

------------------------------
THE GABELLI EQUITY TRUST INC.
------------------------------
SERIES B PREFERRED SHAREHOLDER

Mark box at right if an address change or comment has been noted on the
reverse side of this card. _______

Please be sure to sign and date this proxy.

Signature:___________ Date:___________ Co-owner:____________ Date:_________

[GBFPP - THE GABELLI EQUITY TRUST INC. (PREFERRED)] [FILE NAME: ZGBPP2.ELX]
[VERSION - (1)] [04/09/03] [ORIG. 03/17/03]
DETACH HERE ZGBPP2

PREFERRED THE GABELLI EQUITY TRUST INC. PREFERRED
SERIES B THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS SERIES B

The undersigned hereby appoints Mario J. Gabelli, James E. Mckee and Bruce N.
Alpert, and each of them, attorneys and proxies of the undersigned, with full
powers of substitution and revocation, to represent the undersigned and to vote
on behalf of the undersigned all shares of The Gabelli Equity Trust Inc. (The
"Equity Trust") which the undersigned is entitled to vote at the annual meeting
of shareholders of the equity trust to be held at The Bruce Museum, One Museum
drive, Greenwich, Connecticut 06830 on Monday, May 12, 2003 at 9:00 A.M., And at
any adjournments thereof. The undersigned hereby acknowledges receipt of the
notice of meeting and proxy statement and hereby instructs said attorneys and
proxies to vote said shares as indicated herein. In their discretion, the
proxies are authorized to vote upon such other business as may properly come
before the meeting.

Has your address changed? Do you have any comments?
____________________________________ _____________________________________
____________________________________ _____________________________________
____________________________________ _____________________________________