UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

**FORM N-Q**

**QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANY**

**_______________________________**

Investment Company Act file number 811-08599

DWS Equity Trust

(Exact name of registrant as specified in charter)

 

345 Park Avenue

New York, NY 10154

(Address of principal executive offices)             (Zip code)

 

Paul Schubert

345 Park Avenue

New York, NY 10154-0004

(Name and address of agent for service)

Registrant's telephone number, including area code:(212) 454-7190

Date of fiscal year end:08/31

Date of reporting period:11/30/08

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

| Investment Portfolio | **as of November 30, 2008 (Unaudited)** |
|----------------------|-----------------------------------------|

 

 

**DWS Disciplined Market Neutral Fund**

 

 

|                                      | **Shares**                |    | **Value ($)** |
|-------------------------------------------|---------------------------|---------|---------------|
|                                           |
|                                      | **Long Positions 108.0%** |    |
| **Common Stocks 101.2%**                  |                      |
| **Consumer Discretionary 17.8%**          |                      |
| **Auto Components 0.7%**                  |                      |
| TRW Automotive Holdings Corp.* (a)        |                      | 116,300 |          | 414,028 |
| WABCO Holdings, Inc. (a)                  |                      | 32,300  |          | 479,978 |
|                                           |
|                                      | **894,006**               |
| **Diversified Consumer Services 0.0%**    |                      |
| H&R Block, Inc. (a)                   |                      | 1,100   |          | **21,043** |
| **Hotels Restaurants & Leisure 3.0%** |                      |
| Brinker International, Inc. (a)           |                      | 217,200 |          | 1,442,208 |
|                                           |                           |         |               |  |  |  |  |

 

 

 

| McDonald's Corp. (a)                          |          | 19,000  |   | 1,116,250     |
|-----------------------------------------------|---------------|---------|--------|---------------|
| Panera Bread Co. "A"* (a)                     |          | 30,100  |   | 1,337,644     |
|                                               |
|                                          | **3,896,102** |
| **Household Durables 2.1%**                   |          |
| Centex Corp. (a)                              |          | 220,600 |   | 2,020,696     |
| Harman International Industries, Inc. (a)     |          | 51,500  |   | 775,075       |
|                                               |
|                                          | **2,795,771** |
| **Leisure Equipment & Products 0.9%**     |          |
| Hasbro, Inc. (a)                              |          | 44,300  |   | **1,187,240** |
| **Media 2.9%**                                |          |
| Comcast Corp. "A" (a)                         |          | 55,400  |   | 960,636       |
| DISH Network Corp. "A"* (a)                   |          | 74,100  |   | 821,028       |
| Interpublic Group of Companies, Inc.* (a)     |          | 108,000 |   | 441,720       |
| Liberty Media Corp. - Entertainment "A"* (a)  |          | 109,100 |   | 1,295,017     |
| Morningstar, Inc.* (a)                        |          | 7,000   |   | 225,400       |
|                                               |
|                                          | **3,743,801** |
| **Specialty Retail 7.1%**                     |          |
| AnnTaylor Stores Corp.* (a)                   |          | 103,200 |   | 463,368       |
| AutoZone, Inc.* (a)                           |          | 13,100  |   | 1,430,782     |
| Barnes & Noble, Inc. (a)                  |          | 21,200  |   | 334,536       |
| Best Buy Co., Inc. (a)                        |          | 65,100  |   | 1,348,221     |
| Foot Locker, Inc. (a)                         |          | 213,100 |   | 1,434,163     |
| Guess?, Inc. (a)                              |          | 111,800 |   | 1,479,114     |
| RadioShack Corp. (a)                          |          | 108,700 |   | 1,070,695     |
| Ross Stores, Inc. (a)                         |          | 31,700  |   | 840,050       |
| The Gap, Inc. (a)                             |          | 75,400  |   | 981,708       |
|                                               |
|                                          | **9,382,637** |
| **Textiles, Apparel & Luxury Goods 1.1%** |          |
| Phillips-Van Heusen Corp. (a)                 |          | 84,400  |   | **1,471,936** |
| **Consumer Staples 6.7%**                     |          |
| **Beverages 0.8%**                            |          |
| Coca-Cola Enterprises, Inc. (a)               |          | 52,800  |   | 484,704       |
| Pepsi Bottling Group, Inc. (a)                |          | 33,100  |   | 598,779       |
|                                               |
|                                          | **1,083,483** |
| **Food & Staples Retailing 2.2%**         |          |
| Kroger Co. (a)                                |          | 45,100  |   | 1,247,466     |
| SUPERVALU, Inc. (a)                           |          | 26,700  |   | 317,997       |
| Sysco Corp. (a)                               |          | 54,700  |   | 1,282,715     |
|                                               |
|                                          | **2,848,178** |
| **Food Products 2.4%**                        |          |
| Bunge Ltd. (a)                                |          | 39,100  |   | 1,660,186     |
| Dean Foods Co.* (a)                           |          | 105,700 |   | 1,538,992     |
|                                               |
|                                          | **3,199,178** |
| **Personal Products 1.3%**                    |          |
| Alberto-Culver Co. (a)                        |          | 14,500  |   | 311,315       |
| Herbalife Ltd. (a)                            |          | 79,500  |   | 1,413,510     |
|                                               |
|                                          | **1,724,825** |
| **Energy 11.6%**                              |          |
| **Energy Equipment & Services 1.1%**      |          |
| Oil States International, Inc.* (a)           |          | 66,800  |   | **1,430,856** |
| **Oil, Gas & Consumable Fuels 10.5%**     |          |
| Alpha Natural Resources, Inc.* (a)            |          | 69,400  |   | 1,539,986     |
|                                               |               |         |        |               |  |

 

 

 

| Arch Coal, Inc. (a)                           |           | 81,300  |   | 1,250,394     |
|-----------------------------------------------|----------------|---------|--------|---------------|
| Cimarex Energy Co. (a)                        |           | 31,100  |   | 882,307       |
| El Paso Corp. (a)                             |           | 22,500  |   | 166,275       |
| Encore Acquisition Co.* (a)                   |           | 42,500  |   | 1,123,700     |
| Frontline Ltd. (a)                            |           | 42,900  |   | 1,267,266     |
| Mariner Energy, Inc.* (a)                     |           | 128,500 |   | 1,412,215     |
| Massey Energy Co. (a)                         |           | 99,800  |   | 1,558,876     |
| Southwestern Energy Co.* (a)                  |           | 45,500  |   | 1,563,835     |
| W&T Offshore, Inc. (a)                    |           | 26,700  |   | 373,800       |
| Walter Industries, Inc. (a)                   |           | 80,200  |   | 1,462,848     |
| Whiting Petroleum Corp.* (a)                  |           | 30,000  |   | 1,149,000     |
|                                               |
|                                          | **13,750,502** |
| **Financials 13.2%**                          |           |
| **Capital Markets 1.3%**                      |           |
| Ameriprise Financial, Inc.                    |           | 30,700  |   | 566,722       |
| Lazard Ltd. "A" (a)                           |           | 12,500  |   | 390,750       |
| TD Ameritrade Holding Corp.* (a)              |           | 54,000  |   | 718,200       |
|                                               |
|                                          | **1,675,672**  |
| **Commercial Banks 2.3%**                     |           |
| PNC Financial Services Group, Inc. (a)        |           | 27,900  |   | 1,472,283     |
| Wells Fargo & Co. (a)                     |           | 55,800  |   | 1,612,062     |
|                                               |
|                                          | **3,084,345**  |
| **Diversified Financial Services 4.0%**       |           |
| Bank of America Corp. (a)                     |           | 106,000 |   | 1,722,500     |
| CME Group, Inc. (a)                           |           | 3,200   |   | 678,240       |
| JPMorgan Chase & Co. (a)                  |           | 41,700  |   | 1,320,222     |
| The NASDAQ OMX Group, Inc.* (a)               |           | 72,200  |   | 1,552,300     |
|                                               |
|                                          | **5,273,262**  |
| **Insurance 4.7%**                            |           |
| Allied World Assurance Co. Holdings Ltd. (a)  |           | 20,000  |   | 707,200       |
| First American Corp. (a)                      |           | 80,000  |   | 1,921,600     |
| Hartford Financial Services Group, Inc.       |           | 95,000  |   | 802,750       |
| Prudential Financial, Inc. (a)                |           | 37,500  |   | 813,750       |
| Reinsurance Group of America, Inc.            |           | 15,300  |   | 621,180       |
| Unum Group (a)                                |           | 85,900  |   | 1,279,910     |
|                                               |
|                                          | **6,146,390**  |
| **Thrifts & Mortgage Finance 0.9%**       |           |
| Hudson City Bancorp., Inc. (a)                |           | 68,800  |   | **1,149,648** |
| **Health Care 11.1%**                         |           |
| **Biotechnology 1.6%**                        |           |
| Celgene Corp.* (a)                            |           | 25,600  |   | 1,333,760     |
| Gilead Sciences, Inc.* (a)                    |           | 16,900  |   | 756,951       |
|                                               |
|                                          | **2,090,711**  |
| **Health Care Equipment & Supplies 2.9%** |           |
| Baxter International, Inc. (a)                |           | 23,700  |   | 1,253,730     |
| Becton, Dickinson & Co. (a)               |           | 19,900  |   | 1,264,247     |
| Varian Medical Systems, Inc.* (a)             |           | 30,500  |   | 1,230,980     |
|                                               |
|                                          | **3,748,957**  |
| **Health Care Providers & Services 5.1%** |           |
| Community Health Systems, Inc.* (a)           |           | 107,100 |   | 1,398,726     |
| Express Scripts, Inc.* (a)                    |           | 24,800  |   | 1,426,248     |
| Humana, Inc.* (a)                             |           | 49,500  |   | 1,496,385     |
|                                               |                |         |        |               |  |

 

 

 

| LifePoint Hospitals, Inc.* (a)                      |          | 52,300  |   | 1,049,138     |
|-----------------------------------------------------|---------------|---------|--------|---------------|
| Universal Health Services, Inc. "B" (a)             |          | 37,400  |   | 1,389,410     |
|                                                     |
|                                                | **6,759,907** |
| **Life Sciences Tools & Services 0.4%**         |          |
| Charles River Laboratories International, Inc.* (a) |          | 21,500  |   | **490,200**   |
| **Pharmaceuticals 1.1%**                            |          |
| Perrigo Co. (a)                                     |          | 42,900  |   | **1,476,189** |
| **Industrials 18.4%**                               |          |
| **Aerospace & Defense 0.8%**                    |          |
| L-3 Communications Holdings, Inc. (a)               |          | 16,500  |   | **1,108,305** |
| **Airlines 0.7%**                                   |          |
| Southwest Airlines Co. (a)                          |          | 104,900 |   | **907,385**   |
| **Building Products 0.9%**                          |          |
| Lennox International, Inc. (a)                      |          | 40,500  |   | **1,119,420** |
| **Commercial Services & Supplies 1.0%**         |          |
| The Brink's Co. (a)                                 |          | 62,400  |   | **1,358,448** |
| **Construction & Engineering 1.0%**             |          |
| Fluor Corp. (a)                                     |          | 15,400  |   | 701,316       |
| Foster Wheeler Ltd.* (a)                            |          | 29,400  |   | 654,444       |
|                                                     |
|                                                | **1,355,760** |
| **Machinery 6.3%**                                  |          |
| Cummins, Inc. (a)                                   |          | 4,500   |   | 115,110       |
| Flowserve Corp. (a)                                 |          | 30,000  |   | 1,509,900     |
| Gardner Denver, Inc.* (a)                           |          | 27,700  |   | 685,575       |
| Joy Global, Inc. (a)                                |          | 69,300  |   | 1,613,997     |
| Kennametal, Inc. (a)                                |          | 46,200  |   | 863,940       |
| Manitowoc Co., Inc. (a)                             |          | 132,200 |   | 1,041,736     |
| Timken Co. (a)                                      |          | 44,900  |   | 651,499       |
| Trinity Industries, Inc. (a)                        |          | 118,200 |   | 1,757,634     |
|                                                     |
|                                                | **8,239,391** |
| **Marine 0.5%**                                     |          |
| Kirby Corp.* (a)                                    |          | 27,300  |   | **694,239**   |
| **Professional Services 0.7%**                      |          |
| Manpower, Inc. (a)                                  |          | 27,700  |   | **871,996**   |
| **Road & Rail 5.1%**                            |          |
| Burlington Northern Santa Fe Corp. (a)              |          | 16,600  |   | 1,271,726     |
| CSX Corp. (a)                                       |          | 36,100  |   | 1,344,364     |
| Norfolk Southern Corp. (a)                          |          | 26,700  |   | 1,320,849     |
| Ryder System, Inc. (a)                              |          | 39,700  |   | 1,425,627     |
| Union Pacific Corp. (a)                             |          | 25,600  |   | 1,281,024     |
|                                                     |
|                                                | **6,643,590** |
| **Trading Companies & Distributors 1.4%**       |          |
| United Rentals, Inc.* (a)                           |          | 136,900 |   | 1,104,783     |
| WESCO International, Inc.* (a)                      |          | 47,900  |   | 708,441       |
|                                                     |
|                                                | **1,813,224** |
| **Information Technology 14.7%**                    |          |
| **Communications Equipment 1.1%**                   |          |
| Brocade Communications Systems, Inc.* (a)           |          | 446,000 |   | **1,436,120** |
| **Computers & Peripherals 3.2%**                |          |
| NCR Corp.* (a)                                      |          | 91,200  |   | 1,384,416     |
| QLogic Corp.* (a)                                   |          | 132,800 |   | 1,410,336     |
|                                                     |               |         |        |               |  |

 

 

 

| Western Digital Corp.* (a)                                  |                      | 117,100         |      | 1,428,620     |
|-------------------------------------------------------------|---------------------------|-----------------|-----------|---------------|
|                                                             |
|                                                        | **4,223,372**             |
| **Electronic Equipment, Instruments & Components 3.4%** |                      |
| Arrow Electronics, Inc.* (a)                                |                      | 33,200          |      | 458,160       |
| Avnet, Inc.* (a)                                            |                      | 94,900          |      | 1,351,376     |
| Ingram Micro, Inc. "A"* (a)                                 |                      | 107,800         |      | 1,161,006     |
| Jabil Circuit, Inc. (a)                                     |                      | 225,600         |      | 1,484,448     |
|                                                             |
|                                                        | **4,454,990**             |
| **IT Services 5.4%**                                        |                      |
| Alliance Data Systems Corp.* (a)                            |                      | 31,600          |      | 1,368,596     |
| Broadridge Financial Solutions, Inc. (a)                    |                      | 121,200         |      | 1,381,680     |
| Computer Sciences Corp.* (a)                                |                      | 27,200          |      | 757,792       |
| Hewitt Associates, Inc. "A"* (a)                            |                      | 32,300          |      | 923,134       |
| Lender Processing Services, Inc. (a)                        |                      | 15,500          |      | 341,930       |
| SAIC, Inc.* (a)                                             |                      | 64,800          |      | 1,153,440     |
| Western Union Co. (a)                                       |                      | 90,000          |      | 1,194,300     |
|                                                             |
|                                                        | **7,120,872**             |
| **Semiconductors & Semiconductor Equipment 0.8%**       |                      |
| Linear Technology Corp. (a)                                 |                      | 49,100          |      | **979,545**   |
| **Software 0.8%**                                           |                      |
| Autodesk, Inc.*                                             |                      | 25,900          |      | 429,681       |
| Compuware Corp.* (a)                                        |                      | 93,900          |      | 596,265       |
|                                                             |
|                                                        | **1,025,946**             |
| **Materials 5.4%**                                          |                      |
| **Chemicals 4.0%**                                          |                      |
| Ashland, Inc. (a)                                           |                      | 111,500         |      | 1,064,825     |
| CF Industries Holdings, Inc. (a)                            |                      | 2,900           |      | 152,627       |
| Eastman Chemical Co. (a)                                    |                      | 34,900          |      | 1,148,210     |
| Terra Industries, Inc. (a)                                  |                      | 92,200          |      | 1,356,262     |
| The Mosaic Co. (a)                                          |                      | 48,700          |      | 1,478,045     |
|                                                             |
|                                                        | **5,199,969**             |
| **Metals & Mining 1.4%**                                |                      |
| Century Aluminum Co.* (a)                                   |                      | 234,700         |      | **1,912,805** |
| **Telecommunication Services 1.7%**                         |                      |
| **Diversified Telecommunication Services 1.1%**             |                      |
| Windstream Corp. (a)                                        |                      | 167,100         |      | **1,480,506** |
| **Wireless Telecommunication Services 0.6%**                |                      |
| United States Cellular Corp.* (a)                           |                      | 18,100          |      | **713,683**   |
| **Utilities 0.6%**                                          |                      |
| **Independent Power Producers & Energy Traders 0.4%**   |                      |
| AES Corp.* (a)                                              |                      | 63,200          |      | **486,008**   |
| **Multi-Utilities 0.2%**                                    |                      |
| TECO Energy, Inc. (a)                                       |                      | 26,700          |      | **347,100**   |
|                                                             |
| **Total Common Stocks**(Cost $152,697,823)                  |                      | **132,817,513** |
|                                                        | **Cash Equivalents 6.8%** |            |
| Cash Management QP Trust, 2.01% (b)(Cost $8,957,145)        |                      |            | 8,957,145 |          | **8,957,145** |
|                                                             |                           |                 |           |               |  |  |  |  |

 

 

 

|                                                 | **% of****Net Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                            |    | **Value ($)**     |
|------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------|
|                                                      |
| **Total Long Positions**(Cost $161,654,968) † | 108.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | **141,774,658**   |
| **Other Assets and Liabilities, Net**                | 92.6                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |    | **121,516,941**   |
| **Securities Sold Short**                            | (100.6)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |    | **(132,039,396)** |
|                                                      |
| **Net Assets**                                       | 100.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |    | **131,252,203**   |
| *†*                                           | *The cost for federal income tax purposes was $162,307,308. At November 30, 2008, net unrealized depreciation for all securities based on tax cost was $20,532,650. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost of $6,703,168 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of                            $27,235,818.* |
|                                                 | **Shares**                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |    | **Value ($)**     |
|                                                      |
|                                                 | **Common Stocks Sold Short 100.6%**                                                                                                                                                                                                                                                                                                                                                                                                                                               |    |
| **Consumer Discretionary 15.7%**                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Auto Components 1.0%**                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| BorgWarner, Inc.                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 4,900   |              | 115,934 |
| Gentex Corp.                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 49,400  |              | 433,238 |
| Goodyear Tire & Rubber Co.                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 115,200 |              | 740,736 |
|                                                      |
|                                                 | **1,289,908**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Distributors 1.1%**                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| LKQ Corp.                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 134,000 |              | **1,396,280** |
| **Hotels Restaurants & Leisure 1.1%**            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Boyd Gaming Corp.                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 156,000 |              | 686,400 |
| Choice Hotels International, Inc.                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 31,400  |              | 788,454 |
|                                                      |
|                                                 | **1,474,854**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Household Durables 2.6%**                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| D.R. Horton, Inc.                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 25,800  |              | 177,246 |
| Lennar Corp. "A"                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 188,100 |              | 1,337,391 |
| Newell Rubbermaid, Inc.                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 120,400 |              | 1,608,544 |
| The Stanley Works                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 7,300   |              | 232,067 |
|                                                      |
|                                                 | **3,355,248**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Media 3.4%**                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Gannett Co., Inc.                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 132,700 |              | 1,155,817 |
| Viacom, Inc. "B"                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 68,600  |              | 1,092,112 |
| Walt Disney Co.                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 57,500  |              | 1,294,900 |
| Washington Post Co. "B"                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2,300   |              | 910,570 |
|                                                      |
|                                                 | **4,453,399**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Multiline Retail 1.1%**                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Target Corp.                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 42,700  |              | **1,441,552** |
| **Specialty Retail 4.6%**                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Home Depot, Inc.                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 64,100  |              | 1,481,351 |
| O'Reilly Automotive, Inc.                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 47,100  |              | 1,227,897 |
| OfficeMax, Inc.                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 144,600 |              | 788,070 |
| Staples, Inc.                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 77,700  |              | 1,348,872 |
| Tiffany & Co.                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 62,400  |              | 1,234,896 |
|                                                      |
|                                                 | **6,081,086**                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Textiles, Apparel & Luxury Goods 0.8%**        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| NIKE, Inc. "B"                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 20,000  |              | **1,065,000** |
| **Consumer Staples 7.2%**                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Beverages 0.7%**                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Central European Distribution Corp.                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 39,800  |              | **940,872** |
| **Food & Staples Retailing 2.0%**                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| CVS Caremark Corp.                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 46,100  |              | 1,333,673 |
|                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         |                   |  |  |  |  |  |  |

 

 

 

| Walgreen Co.                             |          | 52,500  |   | 1,298,850     |
|------------------------------------------|---------------|---------|--------|---------------|
|                                          |
|                                     | **2,632,523** |
| **Food Products 2.4%**                   |          |
| Archer-Daniels-Midland Co.               |          | 67,800  |   | 1,856,364     |
| Tyson Foods, Inc. "A"                    |          | 185,700 |   | 1,246,047     |
|                                          |
|                                     | **3,102,411** |
| **Household Products 1.2%**              |          |
| Energizer Holdings, Inc.                 |          | 36,500  |   | **1,584,830** |
| **Tobacco 0.9%**                         |          |
| Lorillard, Inc.                          |          | 19,900  |   | **1,202,557** |
| **Energy 7.3%**                          |          |
| **Energy Equipment & Services 2.5%** |          |
| Atwood Oceanics, Inc.                    |          | 22,400  |   | 405,440       |
| Hercules Offshore, Inc.                  |          | 240,800 |   | 1,401,456     |
| Weatherford International Ltd.           |          | 118,200 |   | 1,509,414     |
|                                          |
|                                     | **3,316,310** |
| **Oil, Gas & Consumable Fuels 4.8%** |          |
| Frontier Oil Corp.                       |          | 68,000  |   | 811,920       |
| Overseas Shipholding Group, Inc.         |          | 5,600   |   | 207,536       |
| Petrohawk Energy Corp.                   |          | 90,900  |   | 1,588,023     |
| Quicksilver Resources, Inc.              |          | 28,400  |   | 176,932       |
| Range Resources Corp.                    |          | 38,100  |   | 1,580,007     |
| Valero Energy Corp.                      |          | 22,000  |   | 403,700       |
| XTO Energy, Inc.                         |          | 40,000  |   | 1,529,600     |
|                                          |
|                                     | **6,297,718** |
| **Financials 11.0%**                     |          |
| **Capital Markets 3.7%**                 |          |
| Franklin Resources, Inc.                 |          | 6,500   |   | 394,875       |
| Janus Capital Group, Inc.                |          | 188,400 |   | 1,535,460     |
| Legg Mason, Inc.                         |          | 86,600  |   | 1,560,532     |
| Morgan Stanley                           |          | 88,300  |   | 1,302,425     |
|                                          |
|                                     | **4,793,292** |
| **Commercial Banks 2.0%**                |          |
| KeyCorp                                  |          | 122,100 |   | 1,145,298     |
| Regions Financial Corp.                  |          | 121,700 |   | 1,240,123     |
| Synovus Financial Corp.                  |          | 33,000  |   | 274,560       |
|                                          |
|                                     | **2,659,981** |
| **Consumer Finance 1.5%**                |          |
| American Express Co.                     |          | 32,000  |   | 745,920       |
| Capital One Financial Corp.              |          | 35,300  |   | 1,214,673     |
|                                          |
|                                     | **1,960,593** |
| **Diversified Financial Services 1.0%**  |          |
| Moody's Corp.                            |          | 62,100  |   | **1,348,191** |
| **Insurance 2.0%**                       |          |
| Cincinnati Financial Corp.               |          | 38,500  |   | 1,125,740     |
| PartnerRe Ltd.                           |          | 11,900  |   | 832,524       |
| White Mountains Insurance Group Ltd.     |          | 2,500   |   | 675,000       |
|                                          |
|                                     | **2,633,264** |
| **Thrifts & Mortgage Finance 0.8%**  |          |
| People's United Financial, Inc.          |          | 56,400  |   | **1,075,548** |
|                                          |               |         |        |               |  |

 

 

 

| **Health Care 12.2%**                         |          |
|-----------------------------------------------|---------------|
| **Biotechnology 4.0%**                        |          |
| Amylin Pharmaceuticals, Inc.                  |          | 200,900 |   | 1,488,669 |
| BioMarin Pharmaceutical, Inc.                 |          | 82,300 |   | 1,401,569 |
| Genentech, Inc.                               |          | 15,500 |   | 1,187,300 |
| Genzyme Corp.                                 |          | 18,500 |   | 1,184,370 |
|                                               |
|                                          | **5,261,908** |
| **Health Care Equipment & Supplies 4.1%** |          |
| Hologic, Inc.                                 |          | 106,100 |   | 1,491,766 |
| Inverness Medical Innovations, Inc.           |          | 67,800 |   | 1,191,246 |
| ResMed, Inc.                                  |          | 22,600 |   | 821,284 |
| Teleflex, Inc.                                |          | 24,000 |   | 1,137,120 |
| The Cooper Companies, Inc.                    |          | 57,100 |   | 765,140 |
|                                               |
|                                          | **5,406,556** |
| **Health Care Providers & Services 2.1%** |          |
| Health Net, Inc.                              |          | 35,300 |   | 318,053 |
| Medco Health Solutions, Inc.                  |          | 32,600 |   | 1,369,200 |
| Quest Diagnostics, Inc.                       |          | 10,500 |   | 488,985 |
| VCA Antech, Inc.                              |          | 32,300 |   | 615,315 |
|                                               |
|                                          | **2,791,553** |
| **Life Sciences Tools & Services 0.9%**   |          |
| Illumina, Inc.                                |          | 50,400 |   | **1,109,304** |
| **Pharmaceuticals 1.1%**                      |          |
| Allergan, Inc.                                |          | 17,700 |   | 666,936 |
| Endo Pharmaceuticals Holdings, Inc.           |          | 32,700 |   | 719,073 |
|                                               |
|                                          | **1,386,009** |
| **Industrials 17.7%**                         |          |
| **Aerospace & Defense 0.4%**              |          |
| Boeing Co.                                    |          | 12,400 |   | **528,612** |
| **Air Freight & Logistics 2.7%**          |          |
| Expeditors International of Washington, Inc.  |          | 44,100 |   | 1,474,263 |
| FedEx Corp.                                   |          | 19,900 |   | 1,405,935 |
| UTI Worldwide, Inc.                           |          | 67,900 |   | 727,888 |
|                                               |
|                                          | **3,608,086** |
| **Airlines 1.9%**                             |          |
| AMR Corp.                                     |          | 179,300 |   | 1,574,254 |
| Continental Airlines, Inc. "B"                |          | 58,600 |   | 860,248 |
|                                               |
|                                          | **2,434,502** |
| **Building Products 0.8%**                    |          |
| Masco Corp.                                   |          | 104,800 |   | **1,003,984** |
| **Commercial Services & Supplies 2.4%**   |          |
| Corrections Corp. of America                  |          | 74,800 |   | 1,353,132 |
| Iron Mountain, Inc.                           |          | 48,200 |   | 1,047,386 |
| Stericycle, Inc.                              |          | 14,200 |   | 813,660 |
|                                               |
|                                          | **3,214,178** |
| **Construction & Engineering 0.9%**       |          |
| Quanta Services, Inc.                         |          | 73,800 |   | **1,199,988** |
| **Electrical Equipment 0.0%**                 |          |
| SunPower Corp. "B"                            |          | 1 |   | **26** |
| **Industrial Conglomerates 2.4%**             |          |
| General Electric Co.                          |          | 86,600 |   | 1,486,922 |
| McDermott International, Inc.                 |          | 164,800 |   | 1,606,800 |
|                                               |
|                                          | **3,093,722** |
|                                               |               |  |  |  |  |

 

 

 

| **Machinery 4.1%**                                          |          |
|-------------------------------------------------------------|---------------|
| Danaher Corp.                                               |          | 17,000 |   | 945,880 |
| Eaton Corp.                                                 |          | 29,100 |   | 1,348,494 |
| Illinois Tool Works, Inc.                                   |          | 10,600 |   | 361,672 |
| Ingersoll-Rand Co., Ltd. "A"                                |          | 81,500 |   | 1,277,920 |
| PACCAR, Inc.                                                |          | 50,100 |   | 1,396,287 |
|                                                             |
|                                                        | **5,330,253** |
| **Professional Services 1.3%**                              |          |
| Equifax, Inc.                                               |          | 14,300 |   | 363,935 |
| Robert Half International, Inc.                             |          | 66,500 |   | 1,389,185 |
|                                                             |
|                                                        | **1,753,120** |
| **Road & Rail 0.8%**                                    |          |
| Con-way, Inc.                                               |          | 38,300 |   | **1,071,251** |
| **Information Technology 17.5%**                            |          |
| **Communications Equipment 4.1%**                           |          |
| ADC Telecommunications, Inc.                                |          | 135,800 |   | 965,538 |
| Ciena Corp.                                                 |          | 52,400 |   | 387,760 |
| Motorola, Inc.                                              |          | 310,800 |   | 1,339,548 |
| QUALCOMM, Inc.                                              |          | 40,300 |   | 1,352,871 |
| Tellabs, Inc.                                               |          | 316,300 |   | 1,318,971 |
|                                                             |
|                                                        | **5,364,688** |
| **Computers & Peripherals 1.0%**                        |          |
| NetApp, Inc.                                                |          | 97,200 |   | **1,312,200** |
| **Electronic Equipment, Instruments & Components 1.4%** |          |
| AVX Corp.                                                   |          | 24,400 |   | 213,256 |
| Dolby Laboratories, Inc. "A"                                |          | 26,300 |   | 784,266 |
| Tyco Electronics Ltd.                                       |          | 49,100 |   | 809,168 |
|                                                             |
|                                                        | **1,806,690** |
| **IT Services 4.4%**                                        |          |
| Cognizant Technology Solutions Corp. "A"                    |          | 75,500 |   | 1,449,600 |
| DST Systems, Inc.                                           |          | 31,200 |   | 1,179,672 |
| Fidelity National Information Services, Inc.                |          | 97,200 |   | 1,669,896 |
| Fiserv, Inc.                                                |          | 40,400 |   | 1,379,256 |
| NeuStar, Inc. "A"                                           |          | 3,200 |   | 61,280 |
|                                                             |
|                                                        | **5,739,704** |
| **Semiconductors & Semiconductor Equipment 4.2%**       |          |
| KLA-Tencor Corp.                                            |          | 18,600 |   | 349,866 |
| Lam Research Corp.                                          |          | 68,200 |   | 1,377,640 |
| Novellus Systems, Inc.                                      |          | 13,100 |   | 162,309 |
| NVIDIA Corp.                                                |          | 190,500 |   | 1,423,035 |
| Rambus, Inc.                                                |          | 221,400 |   | 2,282,634 |
|                                                             |
|                                                        | **5,595,484** |
| **Software 2.4%**                                           |          |
| Citrix Systems, Inc.                                        |          | 55,500 |   | 1,479,630 |
| Novell, Inc.                                                |          | 210,000 |   | 955,500 |
| Nuance Communications, Inc.                                 |          | 73,800 |   | 677,484 |
|                                                             |
|                                                        | **3,112,614** |
| **Materials 8.3%**                                          |          |
| **Chemicals 1.1%**                                          |          |
| Cabot Corp.                                                 |          | 33,800 |   | 699,322 |
| Scotts Miracle-Gro Co. "A"                                  |          | 24,600 |   | 796,056 |
|                                                             |
|                                                        | **1,495,378** |
|                                                             |               |  |  |  |  |

 

 

 

| **Construction Materials 1.2%**                           |          |
|-----------------------------------------------------------|---------------|
| Eagle Materials, Inc.                                     |          | 73,800 |   | **1,549,800** |
| **Metals & Mining 4.9%**                              |          |
| Alcoa, Inc.                                               |          | 144,000 |   | 1,549,440 |
| Commercial Metals Co.                                     |          | 159,700 |   | 1,913,206 |
| Freeport-McMoRan Copper & Gold, Inc.                  |          | 62,900 |   | 1,508,971 |
| Nucor Corp.                                               |          | 41,900 |   | 1,494,992 |
|                                                           |
|                                                      | **6,466,609** |
| **Paper & Forest Products 1.1%**                      |          |
| Weyerhaeuser Co.                                          |          | 38,400 |   | **1,444,608** |
| **Telecommunication Services 0.4%**                       |          |
| **Wireless Telecommunication Services**                   |
| Crown Castle International Corp.                          |          | 38,600 |   | **543,102** |
| **Utilities 3.3%**                                        |          |
| **Gas Utilities 1.1%**                                    |          |
| Equitable Resources, Inc.                                 |          | 44,500 |   | **1,484,965** |
| **Independent Power Producers & Energy Traders 1.1%** |          |
| Mirant Corp.                                              |          | 80,800 |   | **1,391,376** |
| **Water Utilities 1.1%**                                  |          |
| Aqua America, Inc.                                        |          | 66,100 |   | **1,433,709** |
|                                                           |
| **Total Common Stocks Sold Short**(Proceeds $146,906,268) |          | **132,039,396** |
|                                                           |               |  |  |  |  |  |

 

| *For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.* |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ***                                                                                                                                                                                                           | *Non-income producing security.* |
| *(a)*                                                                                                                                                                                                         | *All or a portion of these securities are pledged as collateral for short sales.* |
| *(b)*                                                                                                                                                                                                         | *Affiliated fund managed by Deutsche Investment Management Americas Inc. The rate shown is the annualized seven-day yield at period end.* |

 

***Fair Value Measurements***

 

*The following is a summary of the inputs used as of November 30, 2008 in valuing the Fund's investments. Please see below for information on the Fund’s policy regarding valuation inputs, and their aggregate levels used in the table below:*

 

| **Valuation Inputs** | **Investments in Securities** | **Investments Sold Short** |
|----------------------|-------------------------------|----------------------------|
| Level 1              | $ 141,774,658                 | $ 132,039,396              |
| Level 2              | -                             | -                          |
| Level 3              | -                             | -                          |
| **Total**            | $ 141,774,658                 | $ 132,039,396              |

 

*The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS* *157"), effective at the beginning of the Fund’s fiscal year. FAS* *157 establishes a three-tier hierarchy to maximize the use of observable market data            and minimize the use of unobservable inputs and requires additional disclosure about the classification of fair value measurements.*

*Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 includes significant unobservable            inputs (including the Fund's own assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.*

 

 

| **ITEM 2.** | **CONTROLS AND PROCEDURES**                                                                                                                                                                                                                                                                                                                                                                        |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | (a)          The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | (b)          There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial                            reporting. |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
| **ITEM 3.** | **EXHIBITS**                                                                                                                                                                                                                                                                                                                                                                                       |
|        |                                                                                                                                                                                                                                                                                                                                                                                               |
|        | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.                                                                                                                                                                                                                                            |

 

 

**SIGNATURES**

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

                                                                DWS Disciplined Market            Neutral Fund, a series of DWS Equity Trust

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | January 14, 2009 |
|-------|------------------|

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

| By: | /s/Michael G. Clark |
|-----|---------------------|

|   | Michael G. Clark |
|--------|------------------|

President

 

| Date: | January 14, 2009 |
|-------|------------------|

 

| By: | /s/Paul Schubert |
|-----|------------------|

|   | Paul Schubert |
|--------|---------------|

Chief Financial Officer and Treasurer

 

Date:                                        January 14, 2009