GABELLI EQUITY TRUST INC, DEF 14A, 2000-04-05

GABELLI EQUITY TRUST INC
DEF 14A, 2000-04-05

Previous: HANSON INVESTMENT MANAGEMENT CO/CA, 13F-HR, 2000-04-05

Next: UNICO INC, S-8, 2000-04-05

SCHEDULE 14A INFORMATION

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-11(c) or 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)(4) 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 10580-1434
(914) 921-5070
-------------
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
To Be Held on May 15, 2000
-------------
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 Cole Auditorium, Greenwich Public Library, 101 West Putnam Avenue,
Greenwich, Connecticut 06830, on Monday, May 15, 2000, at 9:00 a.m., for the
following purposes:

1. To elect four (4) Directors of the Equity Trust, three to be
elected by the holders of the Equity Trust's Common Stock and
holders of its 7.25% Cumulative Preferred Stock ("Preferred
Stock"), voting together as a single class, and one to be
elected by the holders of Preferred Stock voting as a separate
class. (Proposal 1);

2. To ratify the selection of PricewaterhouseCoopers LLP as the
independent accountants of the Equity Trust for the year
ending December 31, 2000 (Proposal 2); and

3. To consider and vote upon such other matters as may properly come
before said Meeting or any adjournment thereof.

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

The close of business on March 6, 2000 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 CONTINENTAL UNITED
STATES. INSTRUCTIONS FOR THE PROPER EXECUTION OF PROXIES ARE SET FORTH ON THE
INSIDE COVER.

By Order of the Directors

JAMES E. MCKEE
Secretary
April 5, 2000

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................................ John B. Smith, Jr., Executor

Telephone/Internet Voting

Shares held through various brokerage firms may offer the convenience
of voting via telephone or the Internet. If available, instructions are included
with this Proxy Statement and ballot.

THE GABELLI EQUITY TRUST INC.
---------
ANNUAL MEETING OF SHAREHOLDERS
May 15, 2000
----------
PROXY STATEMENT

This Proxy Statement is furnished in connection with the solicitation
of proxies by the 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 15, 2000, at 9:00 a.m., at the Cole Auditorium, Greenwich
Public Library, 101 West Putnam Avenue, Greenwich, Connecticut 06830, and at any
adjournments thereof (the "Meeting"). A Notice of Meeting of Shareholders and a
proxy card accompany this Proxy Statement, all of which are first being mailed
to Shareholders on or about April 5, 2000.

In addition to the solicitation of proxies by mail, officers of the
Equity Trust and officers and regular employees of 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 $6,000 plus reimbursement of expenses. The costs of 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 reimburse
brokerage firms and others for their expenses in forwarding solicitation
materials to the beneficial owners of shares. The Equity Trust's most recent
annual report is available upon request, without charge, by writing the Equity
Trust at One Corporate Center, Rye, New York, 10580-1434 or calling the Equity
Trust at 1-800-422-3554 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 and FOR Proposal 2 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 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 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 such adjournment.

The close of business on March 6, 2000 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 $.001 per share ("Common Stock") and 7.25% Cumulative Preferred Stock, par
value $.001 ("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 there were 107,376,617 shares of
Common Stock outstanding and 5,386,400 shares of Preferred Stock outstanding.

The following persons were known to the Equity Trust to be beneficial owners or
owners of record of 5% or more of its outstanding shares of Common Stock and
Preferred Stock as of the record date:

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Name and Address of Amount of Shares and
Beneficial /Record Owner Title of Class Nature of Ownership Percent of Class
- ------------------------ -------------- ------------------- ----------------

Cede & Co.* Common 90,066,891 (record) 83.88%
P.O. Box 20
Bowling Green Station Preferred 5,327,500 (record) 98.91%
New York, NY 10274

Salomon Smith Barney Inc.** Common 18,750,317 (record) 17.46%
333 W. 34th Street
New York, NY 10001 Preferred 1,676,803 (record) 31.13%

Charles Schwab & Co., Inc.** Common 5,591,718 (record) 5.21%
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717

A. G. Edwards & Sons, Inc. ** Common 10,944,420 (record) 10.19%
125 Broad Street, 40th Fl.
New York, NY 10004

Prudential Securities Inc.** Common 5,638,998 (record) 5.25%
c/o ADP Proxy Services
51 Mercedes Way Preferred 496,601 (record) 9.22%
Edgewood, NY 11717

Merrill Lynch** Common 5,560,391 (record) 5.18%
4 Corporate Place
Corporate Park 287
Piscataway, NJ 08855
</TABLE>

Paine Webber Inc. ** Preferred 851,705 (record) 15.81%
1000 Harbor Blvd
Weehawken, NJ 07087

National Financial Services Corp. ** Preferred 582,840 (record) 10.82%
200 Liberty Street
New York, NY 10281

* A nominee partnership of The Depository Trust Company
** Shares held at The Depository Trust Company
</TABLE>

SUMMARY OF VOTING RIGHTS ON PROXY PROPOSALS
<TABLE>
<CAPTION>
<S> <C> <C>
Proposal Common Stockholders Preferred Stockholders

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

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

2. Selection of Accountant Common and Preferred Stockholders, voting together as a single class

3. Other Business Common and Preferred Stockholders, voting together as a single class
</TABLE>

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

PROPOSAL 1: TO ELECT FOUR DIRECTORS OF THE EQUITY TRUST

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
for a three-year term to expire at the Equity Trust's 2003 Annual Meeting of
Shareholders and until their successors are duly elected and qualified. Anthony
J. Colavita has been nominated for a two-year term to expire at the Equity
Trust's 2002 Annual Meeting of Shareholders and until his successor is 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, and (iv) Mr. Colavita, who became a Director of
the Equity Trust on November 17, 1999. 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.

Under the Equity Trust's Articles of Incorporation and the Investment
Company Act of 1940, as amended (the "1940 Act"), holders of the Equity Trust's
Preferred Stock, voting as a separate class, are entitled to elect two
Directors, and holders of the Equity Trust's 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 and By-Laws. The holders of the Equity Trust's 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. Felix J. Christiana and James P. Conn are currently the Directors
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 below.
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. The
business address of each Director is One Corporate Center, Rye, New York
10580-1434

<TABLE>
<CAPTION>
<S> <C>
Number and Percentage
of Equity Trust Shares
Beneficially Owned**
Name, Position with the Trust, Directly or Indirectly on
Business Experience During Past Five Years and Age March 6, 2000
- -------------------------------------------------- -------------

Nominees to Serve Until 2003 Annual Meeting of Shareholders Common Preferred
- ----------------------------------------------------------- ------ ---------

James P. Conn 23,251*** 4,000***

Director of the Trust. Former Managing Director and Chief Investment
Officer of Financial Security Assurance Holdings Ltd. (1992-1998); Director
of Meditrust Corporation (real estate investment trust) and First Republic
Bank. Mr. Conn is 62 years old. (1)(6)(7)(10)(16)(18)

*Karl Otto Pohl 0*** 0***

Director of the Trust. Member of the Shareholder Committee of Sal Oppenheim Jr.
& Cie (private investment bank); Board Member of TrizecHahn Corporation (real
estate company) and Zurich Allied (insurance company); Director of Gabelli Asset
Management Inc.; Former President of the Deutsche Bundesbank and Chairman of its
Central Bank Council from 1980 through
1991. Mr. Pohl is 70 years old.
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)(18)(19)

Anthony R. Pustorino 10,056*** 0***

Director of the Trust. Certified Public Accountant; Professor of
Accounting, Pace University, since 1965. Mr. Pustorino is 74 years old.
(1)(3)(4)(5)(6)(7)(10)(13)(16)(17)(19)

Nominee to Serve Until 2002 Annual Meeting of Shareholders

Anthony J. Colavita 0*** 0***

Director of the Trust. President and Attorney at Law in the law firm of
Anthony J. Colavita, P.C. since 1961. Mr. Colavita is 64 years old.
(1)(2)(3)(4)(5)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)(18)(19)
</TABLE>

The following Directors of the Equity Trust will continue to serve in
such capacity until their terms of office expire and their successors are duly
elected and qualified.

Directors Serving Until 2001 Annual Meeting of Shareholders Common Preferred
- ----------------------------------------------------------- ------ ---------

*Mario J. Gabelli, CFA 1,202,219 12,100**
(1.12)%
Chairman of the Board, President and Chief Investment Officer of the
Trust. Chairman of the Board and Chief Executive Officer of Gabelli Asset
Management Inc. and Chief Investment Officer of Gabelli Funds, LLC and
GAMCO Investors, Inc.; Chairman of the Board and Chief Executive Officer of
Lynch Corporation (diversified manufacturing company) and Chairman of the
Board of Lynch Interactive Corporation (multimedia and services company);
Director of Spinnaker Industries, Inc. (manufacturing company). Mr.
Gabelli is 57 years old.
(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)

Dr. Thomas E. Bratter 11,883*** 0***

Director of the Trust. Director, President and Founder, The John Dewey Academy
(residential college preparatory therapeutic high school).
Dr. Bratter is 60 years old. (6)(7)(16)

Felix J. Christiana 40,079*** 1,000***

Director of the Trust. Former Senior Vice President of Dollar Dry Dock
Savings Bank. Mr. Christiana is 74 years old.
(1)(4)(5)(6)(7)(8)(10)(13)(16)(17)(19)
</TABLE>

Directors Serving Until 2002 Annual Meeting of Shareholders Common Preferred
Frank J. Fahrenkopf, Jr. 0*** 0***

Director of Equity Trust. President and CEO of the American Gaming
Association since June 1995; Partner of Hogan & Hartson; Chairman of
International Trade Practice Group. Co-Chairman of the Commission on
Presidential Debates; Former Chairman of the Republican National
Committee. Mr. Fahrenkopf is 60 years old.(6)(7)(16)

Salvatore J. Zizza 31,102*** 0***

Director of the Equity Trust. Chairman of The Bethlehem Corp.; Board
Member of Hollis Eden Pharmaceuticals; Former Executive Vice President of
FMG Group (a health care provider); Former President and Chief Executive
Officer of the Lehigh Group Inc., (an electrical supply wholesaler); Former
Chairman of the Executive Committee and Director of Binnings Buildings
Products, Inc.; Adviser to The Gabelli Growth Fund. Mr. Zizza is 54 years
old. (1)(4)(6)(7)(16)

Directors and Officers as a Group 1,318,590 17,100
(1.23)%

* "Interested person" of the Equity Trust, as defined in the
1940 Act. Mr. Gabelli is an "interested person" of each fund as
a result of his employment as an officer of the Equity Trust and the
Adviser. Mr. Gabelli is a registered representative of a
broker-dealer that is majority-owned by Gabelli Asset Management
Inc., the parent company of the Adviser. Mr. Pohl is a Director of
the parent company of the Adviser.
** For this purpose "beneficial ownership" is defined under Section 13(d)
of the Securities Exchange Act of 1934, as amended (the "1934 Act").
The information as to beneficial ownership is based upon information
furnished to the Equity Trust by the Directors.
*** Less than 1%.

(1) Trustee of The Gabelli Asset Fund (11) Director of Gabelli International Growth
Fund, Inc.
(2) Trustee of The Gabelli Blue Chip Value Fund (12) Director of The Gabelli Investor Funds, Inc.
(3) Director of The Gabelli Capital Series Funds, Inc. (13) Trustee of The Gabelli Mathers Fund
(4) Director of The Gabelli Convertible Securities Fund, Inc.(14) Trustee of The Gabelli Money Market
Funds
(5) Director of Gabelli Equity Series Funds, Inc. (15) Trustee of The Gabelli Utilities Fund
(6) Director of The Gabelli Equity Trust Inc. (16) Trustee of The Gabelli Utility Trust
(7) Director of The Gabelli Global Multimedia Trust Inc.(17) Director of The Gabelli Value Fund
Inc.
(8) Director of Gabelli Global Series Funds, Inc. (18) Trustee of The Gabelli Westwood Funds
(9) Director of Gabelli Gold Fund, Inc. (19) Director of The Treasurer's Fund, Inc.
(10) Trustee of the Gabelli Growth Fund
</TABLE>

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 and
$500 per meeting by telephone, together with the Director's actual out-of-pocket
expenses relating to attendance at meetings. The aggregate remuneration paid by
the Equity Trust to such Directors during the fiscal year ended December 31,
1999, amounted to $134,910.

During the year ended December 31, 1999, 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. Messrs. Christiana and
Pustorino serve on the Equity Trust's Audit Committee and these Directors are
not "interested persons" of the Equity Trust as defined in the 1940 Act. The
Audit Committee is responsible for recommending the selection of the Equity
Trust's independent accountants and reviewing all audit as well as non-audit
accounting services performed for the Equity Trust. During the fiscal year ended
December 31, 1999, the Audit Committee met twice.

The Directors serving on the Equity Trust's Nominating Committee are
Messrs. Christiana (Chairman) and Zizza. 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. During the fiscal year ended
December 31, 1999, the Nominating Committee met once. The Equity Trust does not
have a standing compensation committee.

Executive Officers of the Equity Trust

Officers of the Equity Trust are appointed to serve at the pleasure of
the Board. Listed below is a brief description of the recent business experience
of each executive officer of the Equity Trust who is not included in the listing
of Directors. The business address of each of these officers is One Corporate
Center, Rye, New York 10580-1434.

Name, Position with the Fund, Principal Occupation During Past Five Years
and Age

Bruce N. Alpert
Vice President and Treasurer. Officer of the Trust since its
inception. Executive Vice President and Chief Operating Officer of the Adviser.
Director and President of Gabelli Advisers, Inc. Vice President of the
Treasurer's Fund, Inc. and Vice President of The Gabelli Westwood Funds. Officer
of all registered investment companies advised by the Adviser. Mr. Alpert is 48
years old.

James E. McKee
Secretary of the Trust since August 1995. Secretary of the
Adviser. Vice President, Secretary and General Counsel of GAMCO Investors, Inc.
since 1993 and of Gabelli Asset Management Inc. since 1999. Secretary of the
registered investment companies advised by the Adviser and Gabelli Advisers,
Inc. Mr. McKee is 36 years old.

The following table sets forth certain information regarding the
compensation of the Equity Trust's Directors and officers. 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, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
Total Compensation from
Aggregate Compensation the Equity Trust and Fund Complex Paid
Name of Person and Position from the Equity Trust to Directors and Officer*
- --------------------------- --------------------- -------------------------

Mario J. Gabelli $ 0 $ 0 (17 )
Chairman of the Board

Dr. Thomas E. Bratter $ 21,500 $ 33,750 (3)
Director

Felix J. Christiana $ 24,000 $ 99,250 (11)
Director

Anthony J. Colavita $ 2,000 $ 94,875 (17)
Director

James P. Conn $ 21,000 $ 53,625 (6)
Director

Frank J. Fahrenkopf, Jr. $ 21,610 $ 26,577 (3)
Director

Karl Otto Pohl $ 1,300 $ 7,042 (19)
Director

Anthony R. Pustorino $ 23,000 $ 107,250 (11)
Director

Salvatore J. Zizza $ 20,500 $ 58,750 (5)
Director

Marc S. Diagonale $ 160,000 $ 160,000 (1)
Vice President

- ---------------
* Represents the total compensation paid to such persons during the calendar
year ended December 31, 1999 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.
</TABLE>

Required Vote

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 three Directors, and Preferred Stockholders vote separately for one
Director).

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

PROPOSAL 2: TO RATIFY THE SELECTION OF PRICEWATERHOUSECOOPERS LLP AS THE
INDEPENDENT ACCOUNTANTS OF THE EQUITY TRUST FOR THE YEAR ENDING
DECEMBER 31, 2000

Upon recommendation by the Audit Committee, PricewaterhouseCoopers LLP,
1177 Avenue of the Americas, New York, New York, 10036, has been selected by the
vote of a majority of those Directors who are not "interested persons" of the
Equity Trust to serve as independent accountants for the Equity Trust's fiscal
year ending December 31, 2000. PricewaterhouseCoopers LLP has advised the Equity
Trust that it is independent with respect to the Equity Trust in accordance with
the applicable requirements of the American Institute of Certified Public
Accountants and the Securities and Exchange Commission (the "SEC").

Representatives of PricewaterhouseCoopers LLP are expected to be
present at the Meeting to answer appropriate questions and will be given the
opportunity to make a statement if they so desire.

Required Vote

Ratification of the selection of PricewaterhouseCoopers LLP as
independent accountants requires the affirmative vote of a majority of the votes
cast by holders of Shares of the Equity Trust (Common and Preferred Stockholders
voting together as a single class) represented at the Meeting if a quorum is
present.

THE BOARD OF DIRECTORS, INCLUDING THE "NON-INTERESTED" DIRECTORS, RECOMMENDS
THAT THE SHAREHOLDERS VOTE "FOR" THE PROPOSAL TO RATIFY THE SELECTION OF
PRICEWATERHOUSECOOPERS LLP AS THE INDEPENDENT ACCOUNTANTS OF THE EQUITY TRUST
FOR THE YEAR ENDING DECEMBER 31, 2000.

ADDITIONAL INFORMATION

The Investment Adviser and Administrator

Gabelli Funds, LLC is the Equity Trust's Adviser and administrator. The
business address for Gabelli Funds, LLC is One Corporate Center, Rye, New York
10580-1434.

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 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
1999, such persons complied with all such applicable filing requirements.

Broker Non-Votes and Abstentions

If a proxy which is properly executed and returned accompanied by
instructions to withhold authority to vote represents a broker "non-vote" (that
is, a proxy from a broker or nominee indicating that such person has not
received instructions from the beneficial owner or other person entitled to vote
shares on a particular matter with respect to which the broker or nominee does
not have discretionary power), is unmarked or marked with an abstention
(collectively, "abstentions"), the shares represented thereby will be considered
to be present at the Meeting for purposes of determining the existence of a
quorum for the transaction of business. Under Maryland law, abstentions do not
constitute a vote "for" or "against" a matter and will be disregarded in
determining the "votes cast" on an issue. The election of Directors (Proposal 1)
requires that the four candidates who receive the highest number of votes cast
at the meeting are elected; therefore, abstentions will be disregarded. The
ratification of PricewaterhouseCoopers LLP as independent accountants of the
Equity Trust (Proposal 2) requires the affirmative vote of a majority of the
votes cast at the Meeting; therefore, abstentions will be disregarded.

Shareholders of the Equity Trust will be informed of the voting results
of the Meeting in the Equity Trust's Semi-Annual Report for the six months
ending June 30, 2000.

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 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 2001 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 7, 2000.

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-00

[x]

PLEASE MARK VOTES
AS IN THIS EXAMPLE

- ----------------------------------------------------------------

THE GABELLI EQUITY TRUST INC.

- ----------------------------------------------------------------

COMMON SHAREHOLDER

1. To elect three (3) Directors of the Equity Trust:

For All With- For All
Nominees hold Except

----- ----- -----

Anthony J. Colavita
Karl Otto Pohl
Anthony R. Pustorino

NOTE: If you do not wish your shares voted "For" a particular nominee, mark the
"For All Except" box and strike a line through the name(s) of the nominee(s).
Your shares will be voted for the remaining nominee(s).

2. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants of the Equity Trust for the year ending December 31, 2000.

For Against Abstain

----- ----- -----

Please be sure to sign and date this proxy.

Date

Shareholder sign here

Co-owner sign here

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

RECORD DATE SHARES:

THE GABELLI EQUITY TRUST INC.
This proxy is solicited on behalf of the 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 Cole Auditorium, Greenwich
Public Library, 101 West Putnam Avenue, Greenwich, Connecticut 06380 on Monday,
May 15, 2000 at 9:30 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 FOR Proposal 2 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 the
Proposals.

PLEASE VOTE, DATE, AND SIGN ON OTHER 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?

[x]

PLEASE MARK VOTES
AS IN THIS EXAMPLE

- ----------------------------------------------------------------

THE GABELLI EQUITY TRUST INC.

- ----------------------------------------------------------------

PREFERRED SHAREHOLDER

1. To elect four (4) Directors of the Equity Trust:

For All With- For All
Nominees hold Except

----- ----- -----

Anthony J. Colavita
James P. Conn
Karl Otto Pohl
Anthony R. Pustorino

2. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants of the Equity Trust for the year ending December 31, 2000.

For Against Abstain

----- ----- -----

Please be sure to sign and date this proxy.

Date

Shareholder sign here

Co-owner sign here

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

RECORD DATE SHARES:

THE GABELLI EQUITY TRUST INC.
This proxy is solicited on behalf of the Directors

HAS YOUR ADDRESS CHANGED?

DO YOU HAVE ANY COMMENTS?