UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06444

Legg Mason Partners Equity Trust

(Exact name of registrant as specified in charter)

55 Water Street, New York, NY 10041

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code:

Funds Investor Services 1-800-822-5544

or

Institutional Shareholder Services 1-888-425-6432

Date of fiscal year end: October 31,

Date of reporting period: July 31, 2010

ITEM 1. SCHEDULE OF INVESTMENTS

LEGG MASON PARTNERS EQUITY TRUST

LEGG MASON CLEARBRIDGE

APPRECIATION FUND

FORM N-Q

JULY 31, 2010

LEGG MASON CLEARBRIDGE APPRECIATION FUND

Schedule of investments (unaudited) July 31, 2010

SECURITY	SHARES	VALUE
COMMON STOCKS - 97.4%
CONSUMER DISCRETIONARY - 10.1%
Hotels, Restaurants & Leisure - 2.6%
Burger King Holdings Inc.	1,199,650	$	20,729,952
Marcus Corp.	1,198,910		14,626,702
McDonald’s Corp.	699,370		48,767,070
Yum! Brands Inc.	490,900		20,274,170
Total Hotels, Restaurants & Leisure			104,397,894
Internet & Catalog Retail - 0.7%
Amazon.com Inc.	243,170		28,667,311	*
Media - 4.7%
Cablevision Systems Corp., New York Group, Class A Shares	1,099,900		30,148,259
Comcast Corp., Class A Shares	3,397,360		66,146,599
Walt Disney Co.	2,697,560		90,880,797
Total Media			187,175,655
Specialty Retail - 2.1%
Bed Bath & Beyond Inc.	205,730		7,793,052	*
Home Depot Inc.	1,577,750		44,981,653
Staples Inc.	1,631,160		33,161,483
Total Specialty Retail			85,936,188
TOTAL CONSUMER DISCRETIONARY			406,177,048
CONSUMER STAPLES - 12.4%
Beverages - 1.9%
Coca-Cola Co.	688,280		37,931,111
PepsiCo Inc.	599,450		38,910,299
Total Beverages			76,841,410
Food & Staples Retailing - 3.9%
CVS Caremark Corp.	872,360		26,772,728
Wal-Mart Stores Inc.	2,497,740		127,859,311
Total Food & Staples Retailing			154,632,039
Food Products - 2.9%
General Mills Inc.	902,470		30,864,474
H.J. Heinz Co.	800,000		35,584,000
Kraft Foods Inc., Class A Shares	1,776,080		51,879,297
Total Food Products			118,327,771
Household Products - 3.7%
Kimberly-Clark Corp.	885,070		56,750,688
Procter & Gamble Co.	1,498,640		91,656,823
Total Household Products			148,407,511
TOTAL CONSUMER STAPLES			498,208,731
ENERGY - 9.3%
Energy Equipment & Services - 1.0%
Schlumberger Ltd.	241,590		14,413,259
Weatherford International Ltd.	1,665,630		26,983,206	*
Total Energy Equipment & Services			41,396,465
Oil, Gas & Consumable Fuels - 8.3%
Apache Corp.	226,424		21,641,606
Chevron Corp.	277,260		21,129,985
El Paso Corp.	4,100,000		50,512,000
Exxon Mobil Corp.	2,000,000		119,360,000
Newfield Exploration Co.	814,260		43,530,339	*
Petrohawk Energy Corp.	1,300,000		20,501,000	*
Petroleo Brasileiro SA, ADR	383,280		13,951,392
Spectra Energy Corp.	2,000,001		41,580,021
Total Oil, Gas & Consumable Fuels			332,206,343
TOTAL ENERGY			373,602,808
EXCHANGE TRADED FUND - 0.6%
SPDR Gold Trust	211,660		24,444,613	*

See Notes to Schedule of Investments.

1

LEGG MASON CLEARBRIDGE APPRECIATION FUND

Schedule of investments (unaudited) (cont’d) July 31, 2010

SECURITY	SHARES	VALUE
FINANCIALS - 13.9%
Capital Markets - 0.7%
Charles Schwab Corp.	1,904,000	$	28,160,160
Commercial Banks - 0.9%
Wells Fargo & Co.	1,302,470		36,117,493
Diversified Financial Services - 3.3%
Bank of America Corp.	3,200,880		44,940,355
Citigroup Inc.	4,989,870		20,458,467	*
JPMorgan Chase & Co.	1,650,000		66,462,000
Total Diversified Financial Services			131,860,822
Insurance - 6.1%
Berkshire Hathaway Inc., Class A Shares	718		84,006,000	*
MetLife Inc.	459,185		19,313,321
Travelers Cos. Inc.	2,797,280		141,122,776
Total Insurance			244,442,097
Real Estate Investment Trusts (REITs) - 2.3%
Annaly Capital Management Inc.	2,995,390		52,119,786
Chimera Investment Corp.	11,000,000		42,570,000
Total Real Estate Investment Trusts (REITs)			94,689,786
Real Estate Management & Development - 0.6%
Forest City Enterprises Inc., Class A Shares	1,871,950		23,773,765	*
TOTAL FINANCIALS			559,044,123
HEALTH CARE - 8.6%
Biotechnology - 0.9%
Amgen Inc.	650,000		35,444,500	*
Health Care Providers & Services - 0.7%
AmerisourceBergen Corp.	979,480		29,355,016
Pharmaceuticals - 7.0%
Abbott Laboratories	773,820		37,979,086
Bristol-Myers Squibb Co.	1,199,450		29,890,294
Johnson & Johnson	1,405,450		81,642,590
Merck & Co. Inc.	1,533,740		52,852,680
Novartis AG, ADR	822,540		40,090,600
Pfizer Inc.	2,458,840		36,882,600
Total Pharmaceuticals			279,337,850
TOTAL HEALTH CARE			344,137,366
INDUSTRIALS - 14.8%
Aerospace & Defense - 2.7%
Boeing Co.	241,170		16,433,324
Honeywell International Inc.	870,550		37,311,773
Raytheon Co.	1,198,910		55,473,566
Total Aerospace & Defense			109,218,663
Air Freight & Logistics - 1.6%
United Parcel Service Inc., Class B Shares	1,000,000		65,000,000
Commercial Services & Supplies - 1.4%
Waste Management Inc.	1,660,870		56,386,537
Construction & Engineering - 0.7%
Quanta Services Inc.	1,206,150		25,908,102	*
Industrial Conglomerates - 6.9%
3M Co.	690,380		59,055,105
General Electric Co.	3,892,530		62,747,584
McDermott International Inc.	1,188,850		27,949,863	*
Tyco International Ltd.	1,136,800		43,516,704
United Technologies Corp.	1,200,010		85,320,711
Total Industrial Conglomerates			278,589,967
Machinery - 0.8%
Eaton Corp.	416,140		32,650,344
Road & Rail - 0.7%
Norfolk Southern Corp.	483,079		27,182,855
TOTAL INDUSTRIALS			594,936,468

See Notes to Schedule of Investments.

2

LEGG MASON CLEARBRIDGE APPRECIATION FUND

Schedule of investments (unaudited) (cont’d) July 31, 2010

SECURITY	SHARES	VALUE
INFORMATION TECHNOLOGY - 18.7%
Communications Equipment - 2.1%
Cisco Systems Inc.	3,600,000	$	83,052,000	*
Computers & Peripherals - 3.3%
Apple Inc.	276,540		71,139,915	*
EMC Corp.	1,390,925		27,526,405	*
Hewlett-Packard Co.	755,920		34,802,557
Total Computers & Peripherals			133,468,877
Internet Software & Services - 2.8%
eBay Inc.	879,520		18,390,763	*
Google Inc., Class A Shares	125,840		61,013,524	*
VeriSign Inc.	1,184,740		33,350,431	*
Total Internet Software & Services			112,754,718
IT Services - 3.8%
Automatic Data Processing Inc.	970,130		40,037,265
International Business Machines Corp.	449,540		57,720,936
Visa Inc., Class A Shares	759,090		55,679,252
Total IT Services			153,437,453
Semiconductors & Semiconductor Equipment - 1.9%
Intel Corp.	2,748,710		56,623,426
Texas Instruments Inc.	823,110		20,322,586
Total Semiconductors & Semiconductor Equipment			76,946,012
Software - 4.8%
Citrix Systems Inc.	580,240		31,924,805	*
Intuit Inc.	441,340		17,543,265	*
Microsoft Corp.	3,748,020		96,736,396
Oracle Corp.	1,900,000		44,916,000
Total Software			191,120,466
TOTAL INFORMATION TECHNOLOGY			750,779,526
MATERIALS - 5.2%
Chemicals - 4.6%
Celanese Corp., Series A Shares	1,738,880		48,845,139
E.I. du Pont de Nemours & Co.	537,490		21,859,718
Ecolab Inc.	499,540		24,432,502
Monsanto Co.	432,980		25,043,563
PPG Industries Inc.	949,140		65,936,756
Total Chemicals			186,117,678
Paper & Forest Products - 0.6%
International Paper Co.	931,360		22,538,912
TOTAL MATERIALS			208,656,590
TELECOMMUNICATION SERVICES - 2.9%
Diversified Telecommunication Services - 2.3%
AT&T Inc.	2,388,200		61,949,908
Frontier Communications Corp.	239,821		1,832,235
Verizon Communications Inc.	999,090		29,033,555
Total Diversified Telecommunication Services			92,815,698
Wireless Telecommunication Services - 0.6%
American Tower Corp., Class A Shares	555,530		25,687,707	*
TOTAL TELECOMMUNICATION SERVICES			118,503,405
UTILITIES - 0.9%
Independent Power Producers & Energy Traders - 0.9%
NRG Energy Inc.	1,598,592		36,256,067	*
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $3,142,576,724)		$	3,914,746,745

See Notes to Schedule of Investments.

3

LEGG MASON CLEARBRIDGE APPRECIATION FUND

Schedule of investments (unaudited) (cont’d) July 31, 2010

SECURITY	RATE		MATURITY DATE	FACE AMOUNT		VALUE
SHORT-TERM INVESTMENTS - 3.3%
Repurchase Agreements - 3.3%
Interest in $25,000,000 joint tri-party repurchase agreement dated 7/30/10 with Deutsche Bank Securities Inc.; Proceeds at maturity - $18,030,285; (Fully collateralized by U.S. government agency obligations, 4.625% due 10/15/14; Market value - $18,390,924)	0.190	%	8/2/10	$	18,030,000	$	18,030,000
Interest in $350,003,000 joint tri-party repurchase agreement dated 7/30/10 with RBS Securities Inc.; Proceeds at maturity - $115,232,017; (Fully collateralized by various U.S. government agency obligations, 0.000% due 8/2/10 to 10/29/10; Market value - $117,535,873)	0.210	%	8/2/10		115,230,000		115,230,000
TOTAL SHORT-TERM INVESTMENTS (Cost - $133,260,000)							133,260,000
TOTAL INVESTMENTS - 100.7% (Cost - $3,275,836,724#)							4,048,006,745
Liabilities in Excess of Other Assets - (0.7)%							(27,761,974	)
TOTAL NET ASSETS - 100.0%						$	4,020,244,771

* Non-income producing security.

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:

ADR	— American Depositary Receipts
SPDR	— Standard & Poor’s Depositary Receipts

See Notes to Schedule of Investments.

4

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Legg Mason ClearBridge Appreciation Fund (the “Fund”), is a separate diversified investment series of Legg Mason Partners Equity Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment Valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. Debt securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service, which are based on transactions in debt obligations, quotations from bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities at fair value as determined in accordance with procedures approved by the Fund’s Board of Trustees. Fair valuing of securities may be also determined with the assistance of a pricing service using calculations based on indices of domestic securities and the appropriate indicators, such as prices of relevant American depository receipts (ADRs) and futures contracts. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

The Fund has adopted Financial Accounting Standards Board Codification Topic 820 (“ASC Topic 820”). ASC Topic 820 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – 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.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of the security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)	TOTAL
Common Stocks†	$	3,914,746,745		—	—	$	3,914,746,745
Short-term investments†		—	$	133,260,000	—		133,260,000
Total investments	$	3,914,746,745	$	133,260,000	—	$	4,048,006,745

† See Schedule of Investments for additional detailed categorizations.

(b) Repurchase Agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Fund’s holding

5

Notes to Schedule of Investments (unaudited) (continued)

period. When entering into repurchase agreements, it is the Fund’s policy that its custodian or a third party custodian, acting on the Fund’s behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked to market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

(c) Foreign Currency Translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(d) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investments

At July 31, 2010, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	887,743,686
Gross unrealized depreciation		(115,573,665	)
Net unrealized appreciation	$	772,170,021

3. Derivative Instruments and Hedging Activities

Financial Accounting Standards Board Codification Topic 815 requires enhanced disclosure about an entity’s derivative and hedging activities.

During the period ended July 31, 2010, the Fund did not invest in any derivative instruments.

6

ITEM 2. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

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.

Legg Mason Partners Equity Trust
By	/S/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: September 27, 2010

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/    R. JAY GERKEN
	R. Jay Gerken
	Chief Executive Officer
Date: September 27, 2010
By	/S/    KAPREL OZSOLAK
	Kaprel Ozsolak
	Chief Financial Officer
Date: September 27, 2010