N-CSRS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 33-12791 & 811-5069

EquiTrust Variable Insurance Series Fund

(Exact name of registrant as specified in charter)

5400 University Avenue, West Des Moines IA 50266-5997
(Address of principal executive offices) (Zip code)

Kristi Rojohn, 5400 University Avenue, West Des Moines IA 50266-5997
(Name and address of agent for service)

Registrant’s telephone number, including area code: 515/225-5400

Date of fiscal year end: December 31, 2010

Date of reporting period: June 30, 2010

TABLE OF CONTENTS

	Item 1. Reports to Stockholders
Item 2. Code of Ethics
	Item 3. Audit Committee Financial Expert
	Item 4. Principal Accountant Fees and Services
	Item 5. Audit Committee of Listed Registrants
	Item 6. Schedules of Investments
	Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
	Item 8. Portfolio Managers of Closed-End Management Investment Company
	Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
	Item 10. Submission of Matters to a Vote of Security Holders
	Item 11. Controls and Procedures
	Item 12. Exhibits
SIGNATURES
EX-99.CERT
EX-99.906CERT

Item 1.   Reports to Stockholders.

EquiTrust Variable Insurance Series Fund

5400 University Avenue
West Des Moines, IA 50266

1-877-860-2904
1-515-225-5586

This report is not to be distributed unless preceded or accompanied by a current prospectus.

PRESIDENT’S LETTER August 12, 2010

Dear Shareholders:

The U.S. economy has managed four consecutive quarters of growth since emerging from its deep recession in mid-2009. In the first half of 2010, businesses invested in new equipment and software for their operations while building inventories depleted during the recession. Both contributed positively towards growth in U.S. gross domestic product (“GDP”). Trade rebounded, as imports and exports both recovered from their recession plunge.

It’s becoming clear that this one-year-old recovery is slowing, however. U.S. GDP grew 3.7% in the first quarter of 2010, easing to 2.4% in the second quarter. The manufacturing sector continues to expand, but at a slowing pace. Robust employment growth remains elusive, as small businesses aren’t hiring and large companies have capacity to increase hours without adding more employees. Housing activity is approaching the recession’s lows following the expiration of the government’s first-time homebuyer tax credit. The consumer has contributed only modestly to the recovery, likely attributable to the still-discouraging jobs environment.

The downshift in the U.S. economy was only one element impacting the financial markets during the first half of 2010. Members of the eurozone endured a crisis of confidence as Greece’s debt and budget issues elevated concerns of the financial health of other members, particularly Portugal, Italy and Spain. A growing call for European government fiscal responsibility and reduced spending then raised concerns about global economic growth. Further, China instituted fiscal measures to slow its red-hot expansion, prompting fears of an outright evaporation of the country’s contribution to global growth.

These events sent investors out of stocks and into the relatively U.S. Treasury securities. For the six-month period ended June 30, 2010, the S&P 500 Composite Stock Index (the “S&P 500”) declined 6.65%. Performance was favorable in the periods around corporate earnings announcements, but the macroeconomic factors caused stocks to stumble repeatedly throughout the period. Investors’ rush into U.S. Treasuries has driven overall market yields to low levels. This has benefited bond values, but at the expense of falling coupon income. The broad Barclays Capital U.S. Aggregate Index returned 5.33% for the period, with the majority of the gain attributable to price return.

The markets appear to be adjusting for moderating economic growth, and investors will continue to see broad financial market volatility as long the scale of moderation remains unknown. We appreciate your support during this tough financial environment through your investment in the Fund. We take seriously our tasks of growing and protecting that investment. Thank you for continued support of the Fund.

Craig A. Lang

President

Past performance is not a guarantee of future results.

2

EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2010

Value Growth Portfolio
Portfolio Holdings by Industry Sector

High Grade Bond Portfolio
Portfolio Holdings by Credit Quality and Type of Security**

Strategic Yield Portfolio
Portfolio Holdings by Credit Quality and Type of Security**

*	This category may include short-term investments in commercial paper, money market mutual funds and U.S. government agencies, along with cash, receivables, prepaid expenses and other assets, less liabilities.
**	Credit quality as reported by Standard & Poor’s.

3

EQUITRUST VARIABLE INSURANCE SERIES FUND
June 30, 2010

Managed Portfolio
Portfolio Holdings by Industry Sector

Money Market Portfolio
Portfolio Holdings by Asset Type

Blue Chip Portfolio
Portfolio Holdings by Industry Sector

*    This category may include short-term investments in commercial paper, money market mutual funds and U.S. government agencies, along with cash, receivables, prepaid expenses and other assets, less liabilities.

4

Expense Example:

As a shareholder of the Fund, you may incur ongoing costs, including management fees and other Fund expenses. In addition, Service Class (SC) shares also incur distribution (12b-1) fees. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a given Portfolio and Share Class of the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested on January 1, 2010 and held until June 30, 2010.

Actual Expenses —

The first line for each Portfolio and Share Class in the following table provides information about actual account values and actual expenses for that Portfolio and Share Class. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” for the same Portfolio and Share Class to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes —

The second line for each Portfolio and Share Class in the following table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of that Portfolio and Share Class and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Portfolio and Share Class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a given Portfolio and Share Class of the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

5

	Beginning Account		Ending Account		Expenses Paid		Annualized
	Value		Value		During Period		Expense
Portfolio and Share Class	1/1/2010		6/30/2010		1/1/2010 - 6/30/2010		Ratio (1)
Value Growth — IC								0.59	%
Actual	$	1,000	$	943.40	$	2.84
Hypothetical (2)	$	1,000	$	1,022.08	$	2.96
Value Growth — SC								0.84	%
Actual	$	1,000	$	941.70	$	4.03
Hypothetical (2)	$	1,000	$	1,020.85	$	4.20
High Grade Bond — IC								0.45	%
Actual	$	1,000	$	1,061.80	$	2.28
Hypothetical (2)	$	1,000	$	1,022.79	$	2.23
High Grade Bond — SC								0.69	%
Actual	$	1,000	$	1,061.50	$	3.54
Hypothetical (2)	$	1,000	$	1,021.56	$	3.48
Strategic Yield — IC								0.60	%
Actual	$	1,000	$	1,075.30	$	3.07
Hypothetical (2)	$	1,000	$	1,022.04	$	3.00
Strategic Yield — SC								0.85	%
Actual	$	1,000	$	1,074.10	$	4.35
Hypothetical (2)	$	1,000	$	1,020.81	$	4.24
Managed — IC								0.57	%
Actual	$	1,000	$	988.50	$	2.83
Hypothetical (2)	$	1,000	$	1,022.15	$	2.88
Managed — SC								0.82	%
Actual	$	1,000	$	987.10	$	4.05
Hypothetical (2)	$	1,000	$	1,020.92	$	4.12
Money Market — IC								0.00	%
Actual	$	1,000	$	1,000.50	$	0.00
Hypothetical (2)	$	1,000	$	1,025.00	$	0.00
Money Market — SC								0.00	%
Actual	$	1,000	$	1,000.50	$	0.00
Hypothetical (2)	$	1,000	$	1,025.00	$	0.00
Blue Chip — IC								0.33	%
Actual	$	1,000	$	939.40	$	1.57
Hypothetical (2)	$	1,000	$	1,023.39	$	1.63
Blue Chip — SC								0.57	%
Actual	$	1,000	$	938.30	$	2.76
Hypothetical (2)	$	1,000	$	1,022.16	$	2.88

(1)	Expenses are equal to the Annualized Expense Ratio as shown in the table for each Portfolio and Class, multiplied by the average account value over the period, multiplied by 181 days, and divided by 365 to reflect the one-half year period.
(2)	Hypothetical examples are based on 5% return before expenses.

6

EQUITRUST VARIABLE INSURANCE SERIES FUND

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2010
(Unaudited)

				High			Strategic
	Value Growth			Grade Bond			Yield			Managed			Money Market		Blue Chip
	Portfolio			Portfolio			Portfolio			Portfolio			Portfolio		Portfolio
ASSETS
Investments in securities, at value (cost—$49,838,362; $52,127,017; $38,798,973; $70,066,443; $9,958,666; and $61,565,778, respectively)	$	47,702,798		$	54,196,161		$	40,148,054		$	72,520,786		$	9,958,666	$	66,154,636
Cash		—			—			—			—			471,344		—
Receivables:
Accrued dividends and interest		68,436			396,318			616,261			162,746			117		100,639
Fund shares sold		12,284			5,429			4,880			12,858			11,089		26,995
Prepaid expense and other assets		3,345			3,367			2,604			4,921			739		4,567
Total Assets		47,786,863			54,601,275			40,771,799			72,701,311			10,441,955		66,286,837
LIABILITIES
Payables:
Fund shares redeemed		49,499			174,082			42,885			79,009			90,912		72,410
Dividends		—			18			26			—			168		—
Accrued expenses		4,017			4,462			3,761			4,541			3,155		4,818
Total Liabilities		53,516			178,562			46,672			83,550			94,235		77,228
NET ASSETS	$	47,733,347		$	54,422,713		$	40,725,127		$	72,617,761		$	10,347,720	$	66,209,609
ANALYSIS OF NET ASSETS
Paid-in capital	$	53,866,575		$	52,403,748		$	43,351,210		$	73,798,944		$	10,347,720	$	67,142,462
Accumulated undistributed net investment income		303,546			12,539			3,080			1,087,247			—		786,015
Accumulated net realized loss from investment transactions		(4,301,210	)		(62,718	)		(3,978,244	)		(4,722,773	)		—		(6,307,726	)
Net unrealized appreciation (depreciation) of investments		(2,135,564	)		2,069,144			1,349,081			2,454,343			—		4,588,858
NET ASSETS	$	47,733,347		$	54,422,713		$	40,725,127		$	72,617,761		$	10,347,720	$	66,209,609

See accompanying notes.

7

EQUITRUST VARIABLE INSURANCE SERIES FUND

STATEMENTS OF ASSETS AND LIABILITIES (continued)

June 30, 2010
(Unaudited)

			High		Strategic
	Value Growth		Grade Bond		Yield		Managed		Money Market		Blue Chip
	Portfolio		Portfolio		Portfolio		Portfolio		Portfolio		Portfolio
NET ASSET VALUE PER SHARE
Initial Class: Net Assets	$	47,153,358	$	45,250,551	$	39,735,802	$	71,345,034	$	9,427,133	$	63,028,040
Shares issued and outstanding		4,187,726		4,316,376		4,361,879		5,438,424		9,427,133		2,092,245
Net asset value per share	$	11.26	$	10.48	$	9.11	$	13.12	$	1.00	$	30.12
Service Class: Net Assets	$	579,989	$	9,172,162	$	989,325	$	1,272,727	$	920,587	$	3,181,569
Shares issued and outstanding		50,420		874,788		108,586		93,778		920,587		101,740
Net asset value per share	$	11.50	$	10.49	$	9.11	$	13.57	$	1.00	$	31.27

See accompanying notes.

8

EQUITRUST VARIABLE INSURANCE SERIES FUND

STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2010
(Unaudited)

	Value			High			Strategic
	Growth			Grade Bond			Yield			Managed			Money Market			Blue Chip
	Portfolio			Portfolio			Portfolio			Portfolio			Portfolio			Portfolio
INVESTMENT INCOME
Dividends	$	457,535		$	—		$	31,000		$	632,777		$	—		$	904,498
Interest		1,412			1,186,786			1,225,014			490,239			5,769			1,838
Less foreign tax withholding		—			—			—			(2,153	)		—			—
Total Investment Income		458,947			1,186,786			1,256,014			1,120,863			5,769			906,336
EXPENSES
Paid to Affiliates:
Investment advisory and management fees		117,990			78,141			89,943			173,567			13,609			71,562
Distribution fees		708			9,904			1,110			1,556			993			3,764
Accounting fees		13,110			13,023			9,994			14,974			2,722			14,974
Custodian fees		3,098			3,455			2,276			4,120			1,906			3,214
Professional fees		9,417			9,761			7,942			13,528			3,171			12,000
Trustees’ fees and expenses		4,043			4,113			1,750			5,995			478			5,510
Reports to shareholders		1,071			1,032			798			1,581			240			1,458
Insurance and bonds		2,570			2,620			2,053			3,906			651			3,442
Miscellaneous		3,396			3,886			4,694			3,976			2,719			4,400
Total Expenses		155,403			125,935			120,560			223,203			26,489			120,324
Waiver of fees		—			—			—			—			(26,489	)		—
Fees paid indirectly		(2	)		(2	)		(2	)		(3	)		(1	)		(3	)
Net Expenses		155,401			125,933			120,558			223,200			(1	)		120,321
Net Investment Income		303,546			1,060,853			1,135,456			897,663			5,770			786,015
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from investment transactions		307,585			(508	)		22,164			76,853			—			950,631
Change in unrealized appreciation (depreciation) of investments		(3,452,519	)		2,086,296			1,776,680			(1,721,673	)		—			(6,003,196	)
Net Gain (Loss) on Investments		(3,144,934	)		2,085,788			1,798,844			(1,644,820	)		—			(5,052,565	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(2,841,388	)	$	3,146,641		$	2,934,300		$	(747,157	)	$	5,770		$	(4,266,550	)

See accompanying notes.

9

EQUITRUST VARIABLE INSURANCE SERIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Value Growth Portfolio						High Grade Bond Portfolio						Strategic Yield Portfolio
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30, 2010			Year Ended			June 30, 2010			Year Ended			June 30, 2010			Year Ended
	(Unaudited)			December 31, 2009			(Unaudited)			December 31, 2009			(Unaudited)			December 31, 2009
OPERATIONS
Net investment income	$	303,546		$	705,061		$	1,060,853		$	2,208,639		$	1,135,456		$	2,352,460
Net realized gain (loss) from investment transactions		307,585			(3,427,768	)		(508	)		(65,458	)		22,164			(1,943,335	)
Change in unrealized appreciation (depreciation) of investments		(3,452,519	)		13,974,641			2,086,296			3,135,143			1,776,680			7,568,331
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,841,388	)		11,251,934			3,146,641			5,278,324			2,934,300			7,977,456
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income:
Initial Class		(701,627	)		(952,784	)		(896,707	)		(2,018,829	)		(1,100,642	)		(2,325,728	)
Service Class		(3,433	)		(872	)		(151,607	)		(189,810	)		(23,984	)		(26,732	)
Net realized gain from investment transactions:
Initial Class		—			—			—			(146,224	)		—			—
Service Class		—			—			—			(11,409	)		—			—
Total Dividends and Distributions		(705,060	)		(953,656	)		(1,048,314	)		(2,366,272	)		(1,124,626	)		(2,352,460	)
CAPITAL SHARE TRANSACTIONS		(1,573,105	)		(2,203,492	)		1,414,827			3,596,181			(474,286	)		(2,816,721	)
Total Increase (Decrease) in Net Assets		(5,119,553	)		8,094,786			3,513,154			6,508,233			1,335,388			2,808,275
NET ASSETS
Beginning of period		52,852,900			44,758,114			50,909,559			44,401,326			39,389,739			36,581,464
End of period (including accumulated undistributed net investment income as set forth below)	$	47,733,347		$	52,852,900		$	54,422,713		$	50,909,559		$	40,725,127		$	39,389,739
Accumulated Undistributed (Over-distributed) Net Investment Income	$	303,546		$	705,060		$	12,539		$	—		$	3,080		$	(7,750	)

See accompanying notes.

10

EQUITRUST VARIABLE INSURANCE SERIES FUND

STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Managed						Money Market						Blue Chip
	Portfolio						Portfolio						Portfolio
	Six Months Ended						Six Months Ended						Six Months Ended
	June 30, 2010			Year Ended			June 30, 2010			Year Ended			June 30, 2010			Year Ended
	(Unaudited)			December 31, 2009			(Unaudited)			December 31, 2009			(Unaudited)			December 31, 2009
OPERATIONS
Net investment income	$	897,663		$	1,907,332		$	5,770		$	15,235		$	786,015		$	1,601,198
Net realized gain (loss) from investment transactions		76,853			(4,522,755	)		—			—			950,631			(789,775	)
Change in unrealized appreciation (depreciation) of investments		(1,721,673	)		14,931,133			—			—			(6,003,196	)		10,179,669
Net Increase (Decrease) in Net Assets Resulting from Operations		(747,157	)		12,315,710			5,770			15,235			(4,266,550	)		10,991,092
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income:
Initial Class		(1,881,816	)		(2,332,629	)		(5,305	)		(14,775	)		(1,569,649	)		(1,945,486	)
Service Class		(20,999	)		(3,856	)		(465	)		(460	)		(31,549	)		(5,662	)
Net realized gain from investment transactions:
Initial Class		—			—			—			—			—			—
Service Class		—			—			—			—			—			—
Total Dividends and Distributions		(1,902,815	)		(2,336,485	)		(5,770	)		(15,235	)		(1,601,198	)		(1,951,148	)
CAPITAL SHARE TRANSACTIONS		(2,722,575	)		(3,741,537	)		(1,486,022	)		(2,994,789	)		138,051			37,674
Total Increase (Decrease) in Net Assets		(5,372,547	)		6,237,688			(1,486,022	)		(2,994,789	)		(5,729,697	)		9,077,618
NET ASSETS
Beginning of period		77,990,308			71,752,620			11,833,742			14,828,531			71,939,306			62,861,688
End of period (including accumulated undistributed net investment income as set forth below)	$	72,617,761		$	77,990,308		$	10,347,720		$	11,833,742		$	66,209,609		$	71,939,306
Accumulated Undistributed (Over-distributed) Net Investment Income	$	1,087,247		$	1,902,815		$	—		$	—		$	786,015		$	1,601,198

See accompanying notes.

11

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

VALUE GROWTH PORTFOLIO

June 30, 2010

(Unaudited)

	Shares
	Held		Value
COMMON STOCKS (94.41%)
AMUSEMENT AND RECREATION SERVICES (0.59%)
Bally Technologies, Inc. (1)		8,700	$	281,793
AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS (2.15%)
AutoZone, Inc. (1)		2,700		521,694
O’Reilly Automotive, Inc. (1)		10,600		504,136
				1,025,830
BUSINESS SERVICES (7.83%)
Adobe Systems Inc. (1)		11,700		309,231
Automatic Data Processing Inc.		6,700		269,742
eBay Inc. (1)		13,135		257,577
ManTech International Corp.-Series A (1)		5,900		251,163
Microsoft Corp.		55,255		1,271,418
Oracle Corp.		46,070		988,662
Symantec Corp. (1)		28,002		388,668
				3,736,461
CHEMICALS AND ALLIED PRODUCTS (12.51%)
Abbott Laboratories		7,600		355,528
Amgen Inc. (1)		7,625		401,075
Colgate-Palmolive Co.		2,605		205,170
Dow Chemical Co. (The)		5,330		126,428
E. I. du Pont de
Nemours and Co.		16,005		553,613
Johnson & Johnson		16,700		986,302
Merck & Co., Inc.		8,638		302,071
Mylan Inc. (1)		10,050		171,252
Myriad Genetics, Inc. (1)		17,000		254,150
Pfizer Inc.		44,486		634,370
Procter & Gamble Co. (The)		19,425		1,165,111
Teva Pharmaceutical Industries Ltd.		9,691		503,835
United Therapeutics Corp. (1)		6,400		312,384
				5,971,289
COMMUNICATIONS (2.29%)
AT&T Inc.		17,660		427,195
Comcast Corp.-Class A		14,065		244,309
Verizon Communications Inc.		15,065		422,121
				1,093,625
DEPOSITORY INSTITUTIONS (3.31%)
Bank of America Corp.		16,089		231,199
Bank of New York Mellon Corp. (The)		7,150		176,534
JPMorgan Chase & Co.		6,600		241,626
New York Community Bancorp, Inc.		23,156		353,592
Northern Trust Corp.		6,900		322,230
U.S. Bancorp		9,135		204,167
Wells Fargo & Co.		1,981		50,714
				1,580,062
EATING AND DRINKING PLACES (0.30%)
McDonald’s Corp.		2,200		144,914
ELECTRIC, GAS AND SANITARY SERVICES (3.87%)
Atmos Energy Corp.		11,267		304,660
CMS Energy Corp.		28,300		414,595
Integrys Energy Group, Inc.		9,886		432,414
Pepco Holdings, Inc.		12,335		193,413
Pinnacle West Capital Corp.		9,200		334,512
Waste Management, Inc.		5,300		165,837
				1,845,431
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (5.89%)
BigBand Networks, Inc. (1)		42,700		128,954
Cisco Systems, Inc. (1)		46,570		992,407
Energy Conversion Devices, Inc. (1)		13,100		53,710
General Electric Co.		66,480		958,642
Helen of Troy Ltd.(1)		8,966		197,790
Intel Corp.		17,500		340,375
QUALCOMM Inc.		4,200		137,928
				2,809,806
FABRICATED METAL PRODUCTS (1.09%)
Illinois Tool Works Inc.		12,580		519,302
FOOD AND KINDRED PRODUCTS (3.17%)
Coca-Cola Co. (The)		6,870		344,324
Coca-Cola FEMSA, S.A.B. de C.V.		3,700		231,583
H.J. Heinz Co.		6,100		263,642
Kraft Foods Inc.		12,708		355,824
PepsiCo, Inc.		5,180		315,721
				1,511,094
GENERAL MERCHANDISE STORES (2.35%)
Target Corp.		8,415		413,766
Wal-Mart Stores, Inc.		14,735		708,311
				1,122,077
HOLDING AND OTHER INVESTMENT OFFICES (2.93%)
Adams Express Co. (The)		69,169		624,596
H&Q Life Sciences Investors		38,359		336,792
ProShares UltraShort 20+ Year Treasury (1)		6,900		244,812
Redwood Trust, Inc.		13,200		193,248
				1,399,448
INDUSTRIAL MACHINERY AND EQUIPMENT (6.02%)
3M Co.		5,890		465,251
Apple Inc. (1)		4,160		1,046,365
EMC Corp. (1)		62,025		1,135,057
Hewlett-Packard Co.		5,270		228,086
				2,874,759
INSTRUMENTS AND RELATED PRODUCTS (3.39%)
Agilent Technologies, Inc. (1)		7,000		199,010
Becton, Dickinson and Co.		5,326		360,144
Bio-Rad Laboratories, Inc.-Class A (1)		3,300		285,417
Danaher Corp.		4,800		178,176
Mettler-Toledo International Inc. (1)		3,375		376,751
Stryker Corp.		4,380		219,263
				1,618,761

12

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

VALUE GROWTH PORTFOLIO (continued)

	Shares
	Held		Value
COMMON STOCKS (continued)
INSURANCE AGENTS, BROKERS AND SERVICE (0.63%)
Arthur J. Gallagher & Co.		12,365	$	301,459
INSURANCE CARRIERS (6.07%)
Allstate Corp. (The)		4,910		141,064
American Equity Investment Life Holding Co.		29,300		302,376
CIGNA Corp.		10,400		323,024
CNO Financial Group, Inc. (1)		50,000		247,500
EMC Insurance Group Inc.		13,610		298,467
Hartford Financial Services
Group, Inc. (The)		11,100		245,643
Kansas City Life Insurance Co.		9,600		283,872
Lincoln National Corp.		11,300		274,477
MetLife, Inc.		8,705		328,701
Protective Life Corp.		21,200		453,468
				2,898,592
LEGAL SERVICES (1.13%)
FTI Consulting, Inc. (1)		12,400		540,516
METAL MINING (4.18%)
Agnico-Eagle Mines Ltd.		2,000		121,560
Barrick Gold Corp.		24,946		1,132,798
Newmont Mining Corp.		12,000		740,880
				1,995,238
MISCELLANEOUS RETAIL (2.47%)
Cash America International, Inc.		12,800		438,656
EZCORP, Inc. (1)		28,000		519,400
GameStop Corp.-Class A (1)		11,700		219,843
				1,177,899
MOTION PICTURES (0.59%)
Time Warner Inc.		9,796		283,202
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.68%)
United Parcel Service, Inc.- Class B		5,675		322,851
OIL AND GAS EXTRACTION (6.38%)
Anadarko Petroleum Corp.		10,200		368,118
Apache Corp.		2,600		218,894
Baker Hughes Inc.		6,200		257,734
Devon Energy Corp.		4,600		280,232
Helmerich & Payne, Inc.		14,600		533,192
Noble Corp.		8,600		265,826
Occidental Petroleum Corp.		6,800		524,620
Rowan Companies, Inc. (1)		8,800		193,072
Transocean Ltd. (1)		4,600		213,118
Weatherford International Ltd. (1)		14,600		191,844
				3,046,650
PAPER AND ALLIED PRODUCTS (0.51%)
Kimberly-Clark Corp.		4,020		243,733
PETROLEUM AND COAL PRODUCTS (3.29%)
Chevron Corp.		10,300		698,958
ConocoPhillips		10,257		503,516
Exxon Mobil Corp.		4,500		256,815
Valero Energy Corp.		6,300		113,274
				1,572,563
PRINTING AND PUBLISHING (0.90%)
John Wiley & Sons, Inc.		11,100		429,237
RAILROAD TRANSPORTATION (0.46%)
Union Pacific Corp.		3,140		218,261
RETAIL-DRUG AND PROPRIETARY STORES (0.29%)
Walgreen Co.		5,245		140,042
RETAIL-FURNISHINGS AND HOME FURNITURE STORES (0.54%)
Bed Bath & Beyond Inc. (1)		7,010	$	259,931
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.67%)
Tupperware Brands Corp.		8,000		318,800
SECURITY AND COMMODITY BROKERS (2.02%)
BGC Partners, Inc.-Class A		68,775		351,440
Investment Technology
Group, Inc. (1)		9,600		154,176
SEI Investments Co.		22,450		457,082
				962,698
SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.75%)
Quest Diagnostics Inc.		7,200		358,344
TOBACCO PRODUCTS (0.85%)
Philip Morris International Inc.		8,810		403,850
TRANSPORTATION EQUIPMENT (3.45%)
Federal Signal Corp.		13,300		80,332
Genuine Parts Co.		6,200		244,590
Honeywell International Inc.		18,835		735,130
ITT Corp.		13,020		584,858
				1,644,910
WHOLESALE TRADE-NONDURABLE GOODS (0.86%)
Sysco Corp.		14,390		411,122
Total Common Stocks (Cost $47,200,114)				45,064,550
SHORT-TERM INVESTMENTS (5.53%)
MONEY MARKET MUTUAL FUND (0.92%)
JP Morgan U.S. Treasury Plus Money Market Fund (Cost $438.472)		438,472		438,472

13

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

VALUE GROWTH PORTFOLIO (continued)

	Principal
	Amount		Value
SHORT-TERM INVESTMENTS (continued)
	Principal
	Amount		Value
COMMERCIAL PAPER (1.57%)
NON-DEPOSITORY CREDIT INSTITUTIONS
Citigroup Inc., due 07/09/10 (Cost $749,937)	$	750,000	$	749,937
UNITED STATES GOVERNMENT AGENCIES (3.04%)
Federal Home Loan Bank, due 07/21/10		750,000		749,946
Federal Home Loan Bank, due 08/25/10		700,000		699,893
Total United States Government
Agencies (Cost $1,449,839)				1,449,839
Total Short-Term Investments (Cost $2,638,248)				2,638,248
Total Investments (99.94%) (Cost $49,838,362)				47,702,798
OTHER ASSETS LESS LIABILITIES (0.06%)
Cash, receivables, prepaid expense and other assets, less liabilities				30,549
Total Net Assets (100.00%)			$	47,733,347

(1) Non-income producing securities.

See accompanying notes.

14

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

HIGH GRADE BOND PORTFOLIO

June 30, 2010

(Unaudited)

	Principal
	Amount		Value
CORPORATE BONDS (44.66%)
CHEMICALS AND ALLIED PRODUCTS (9.82%)
E. I. du Pont de Nemours and Co., 4.625%, due 01/15/20	$	1,500,000	$	1,620,060
Merck & Co., Inc., 5.00%, due 06/30/19		1,500,000		1,679,190
Pfizer Inc., 5.35%, due 03/15/15		1,800,000		2,043,162
				5,342,412
DEPOSITORY INSTITUTIONS (7.61%)
Comerica Bank, 5.20%, due 08/22/17		1,000,000		1,028,460
Fifth Third Bancorp, 5.45%, due 01/15/17		1,000,000		1,032,980
Goldman Sachs Group, Inc. (The), 5.125%, due 01/15/15		900,000		949,491
PNC Preferred FD, 144A, 6.517%, due 12/31/49 (1)		1,500,000		1,130,072
Washington Mutual Bank, FA, 5.65%, due 08/15/14		750,000		938
				4,141,941
ELECTRIC, GAS AND SANITARY SERVICES (15.19%)
Entergy LA LLC, 5.40%, due 11/01/24		375,000		406,830
Kinder Morgan Energy Partners, L.P., 5.30%, due 09/15/20		1,600,000		1,650,160
NorthWestern Corp., 6.34%, due 04/01/19		700,000		785,547
Oglethorpe Power Corp., 6.974%, due 06/30/11		71,000		74,157
PacifiCorp, 6.90%, due 11/15/11		750,000		807,630
Public Service of Colorado, 5.125%, due 06/01/19		1,500,000		1,682,280
South Carolina Electric & Gas Co., 6.50%, due 11/01/18		1,500,000		1,807,785
Westar Energy, Inc., 5.15%, due 01/01/17		1,000,000		1,052,120
				8,266,509
FOOD AND KINDRED PRODUCTS (1.89%)
Archer Daniels Midland Co., 5.935%, due 10/01/32		900,000		1,027,287
FURNITURE AND FIXTURES (0.94%)
Steelcase Inc., 6.50%, due 08/15/11		500,000		509,910
HOLDING AND OTHER INVESTMENT OFFICES (1.37%)
Washington Real Estate Investment Trust, 5.25%, due 01/15/14		700,000		748,524
INSURANCE CARRIERS (4.34%)
Prudential Financial, Inc., 6.10%, due 06/15/17		1,500,000		1,625,685
SunAmerica Inc., 8.125%, due 04/28/23		700,000		735,497
				2,361,182
PETROLEUM & COAL PRODUCTS (2.72%)
Conoco Inc., 6.95%, due 04/15/29		1,200,000		1,480,356
TRANSPORTATION — BY AIR (0.78%)
Continental Airlines, Inc. Pass- Through Certificates 1991-1 Class A, 6.545%, due 08/02/20		237,399		240,308
FedEx Corp. Pass-Through Certificates, 7.50%, due 01/15/18		171,994		184,816
				425,124
Total Corporate Bonds (Cost $23,559,228)				24,303,245
COMMERCIAL MORTGAGE PASS — THROUGH CERTIFICATES (2.60%)
TIAA Seasoned Commercial Mortgage Trust 2007-C4 Class AJ, 6.07%, due 08/01/39		1,500,000		1,413,887
Total Commercial Mortgage Pass- Through Certificates (Cost $1,486,183)				1,413,887
MORTGAGE-BACKED SECURITIES (35.36%)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (9.37%)
3023 Class TG, 5.50%, due 08/01/35		609,639		619,503
3051 Class MY, 5.50% due 10/01/25		1,000,000		1,084,770
Pool # A53146, 5.50%, due 10/01/36		832,570		895,325
Pool # A69436, 6.00%, due 12/01/37		380,707		413,421
Pool # G02562, 6.00%, due 01/01/37		603,002		656,085
Pool # G02648, 5.50%, due 12/01/36		760,706		818,044
Pool # G03803, 5.50%, due 01/01/38		569,469		611,916
				5,099,064
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (8.99%)
Pool # 50276, 9.50%, due 02/01/20		477		553
Pool # 256103, 5.50%, due 02/01/26		443,027		478,653

15

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

HIGH GRADE BOND PORTFOLIO (continued)

	Principal
	Amount		Value
MORTGAGE-BACKED SECURITIES (continued)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (continued)
Pool # 257306, 5.50%, due 08/01/38	$	1,996,517	$	2,145,916
Pool # 897144, 6.00%, due 09/01/36		422,053		459,404
Pool # 906224, 5.50%, due 01/01/37		1,017,885		1,094,449
Pool # 928570, 6.00%, due 08/01/37		654,588		711,291
				4,890,266
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (17.00%)
2003-1 Class PE, 5.50%, due 07/01/32		1,000,000		1,096,455
2003-116 Class JC, 5.00%, due 05/01/30		1,000,000		1,012,551
Pool # 1512, 7.50%, due 12/01/23		8,856		10,021
Pool # 2631, 7.00%, due 08/01/28		13,719		15,355
Pool # 2658, 6.50%, due 10/01/28		23,448		26,627
Pool # 2701, 6.50%, due 01/01/29		30,651		34,745
Pool # 2796, 7.00%, due 08/01/29		22,469		25,162
Pool # 3039, 6.50%, due 02/01/31		8,276		9,271
Pool # 3040, 7.00%, due 02/01/31		15,001		16,815
Pool # 3188, 6.50%, due 01/01/32		49,281		55,018
Pool # 3239, 6.50%, due 05/01/32		45,319		50,595
Pool # 3261, 6.50%, due 07/01/32		93,397		104,271
Pool # 3320, 5.50%, due 12/01/32		382,857		417,362
Pool # 3333, 5.50%, due 01/01/33		322,686		351,665
Pool # 3375, 5.50%, due 04/01/33		48,862		53,250
Pool # 3390, 5.50%, due 05/01/33		214,632		233,907
Pool # 3403, 5.50%, due 06/01/33		364,867		397,634
Pool # 3458, 5.00%, due 10/01/33		370,123		397,719
Pool # 3499, 5.00%, due 01/01/34		528,538		567,282
Pool # 3556, 5.50%, due 05/01/34		528,545		575,108
Pool # 3623, 5.00%, due 10/01/34		875,981		940,194
Pool # 22630, 6.50%, due 08/01/28		12,896		14,644
Pool # 276337, 10.00%, due 08/01/19		3,337		3,887
Pool # 643816, 6.00%, due 07/01/25		770,657		846,037
Pool # 704189, 5.50%, due 01/01/39		674,134		729,708
Pool # 782604, 5.50%, due 03/01/39		1,171,392		1,267,960
				9,253,243
Total Mortgage-Backed Securities (Cost $17,845,150)				19,242,573
SHORT-TERM INVESTMENTS (16.96%)
COMMERCIAL PAPER (5.69%)
NON-DEPOSITORY CREDIT INSTITUTIONS (3.86%)
Citigroup Inc., due 07/06/10		1,100,000		1,099,951
Citigroup Inc., due 08/18/10		1,000,000		999,427
				2,099,378
PETROLEUM AND COAL PRODUCTS (1.83%)
Chevron Corp., 0.19%, due 07/13/10		1,000,000		1,000,000
Total Commercial Paper (Cost $3,099,378)				3,099,378
UNITED STATES GOVERNMENT AGENCIES (9.18%)
Federal Home Loan Bank, due 07/09/10		1,000,000		999,973
Federal Home Loan Bank, due 07/28/10		1,000,000		999,940
Federal Home Loan Mortgage Corp., due 08/23/10		1,000,000		999,882
Federal National Mortgage Assoc., due 08/02/10		1,000,000		999,876
Federal National Mortgage Assoc., due 08/11/10		1,000,000		999,898
Total United States Government Agencies (Cost $4,999,569)				4,999,569
	Shares
	Held
MONEY MARKET MUTUAL FUND (2.09%)
JPMorgan U.S. Treasury Plus Money Market Fund (Cost $1,137,509)		1,137,509		1,137,509
Total Short-Term Investments (Cost $9,236,456)				9,236,456
Total Investments (99.58%) (Cost $52,127,017)				54,196,161

16

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

HIGH GRADE BOND PORTFOLIO (continued)

	Shares
	Held	Value
OTHER ASSETS LESS LIABILITIES (0.42%)
Cash, receivables, prepaid expense and other assets, less liabilities		$	226,552
Total Net Assets (100.00)%		$	54,422,713

(1)	Restricted Securities:
	PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/10, the carrying value of each unit was 75.338, representing $1,130,072 or 2.08% of total net assets.

See accompanying notes.

17

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

STRATEGIC YIELD PORTFOLIO

June 30, 2010

(Unaudited)

	Shares
	Held		Value
PREFERRED STOCKS (1.93%)
DEPOSITORY INSTITUTIONS
Sovereign Capital Trust V, 7.75% (Cost $800,000)		32,000	$	785,280
	Principal
	Amount
CORPORATE BONDS (77.79%)
APPAREL AND ACCESSORY STORES (3.20%)
Woolworth (FW) Corp., 8.50%, due 01/15/22	$	1,400,000		1,302,000
CHEMICALS AND ALLIED PRODUCTS (4.05%)
Lubrizol Corp. (The), 8.875%, due 02/01/19		750,000		937,402
Nova Chemicals Corp., 7.875%, due 09/15/25		800,000		713,192
				1,650,594
COMMUNICATIONS (2.52%)
Time Warner Inc., 8.375%, due 03/15/23		800,000		1,027,456
DEPOSITORY INSTITUTIONS (2.77%)
PNC Preferred FD, 144A, 6.517%, due 12/31/49 (1)		1,500,000		1,130,072
ELECTRIC, GAS AND SANITARY SERVICES (15.10%)
Avista Corp., 5.95%, due 06/01/18		1,400,000		1,551,130
Bruce Mansfield Unit 1, 6.85%, due 06/01/34		1,471,660		1,589,216
Entergy Corp., 6.18%, due 03/01/35		1,700,000		1,753,431
ESI Tractebel Acquisition Corp., 7.99%, due 12/30/11		129,000		130,900
South Carolina Electric & Gas Co., 6.50%, due 11/01/18		800,000		964,152
Waterford 3 Nuclear Power Plant, 8.09%, due 01/02/17		151,622		159,084
				6,147,913
FABRICATED METAL PRODUCTS (3.54%)
Valmont Industries, Inc., 6.625%, due 04/20/20		1,400,000		1,443,358
FOOD STORES (3.61%)
Safeway Inc., 7.45%, due 09/15/27		1,200,000		1,468,996
FURNITURE AND FIXTURES (3.25%)
Steelcase Inc., 6.50%, due 08/15/11		1,300,000		1,325,766
HOLDING AND OTHER INVESTMENT OFFICES (14.97%)
First Industrial L.P., 7.60%, due 07/15/28		700,000		612,066
First Industrial L.P., 7.75%, due 04/15/32		500,000		439,740
Hospitality Properties Trust, 6.75%, due 02/15/13		1,300,000		1,363,271
HRPT Properties Trust, 6.25%, due 08/15/16		1,075,000		1,128,556
iStar Financial, Inc.-Series B, 5.70%, due 03/01/14		1,171,000		878,250
Realty Income Corp., 6.75%, due 08/15/19		1,500,000		1,675,770
				6,097,653
INSURANCE CARRIERS (1.48%)
PXRE Capital Trust, 8.85%, due 02/01/27		670,000		603,000
METAL MINING (2.71%)
Freeport McMoRan & Copper Gold Inc., 8.375%, due 04/01/17		1,000,000		1,102,960
OIL AND GAS EXTRACTION (4.18%)
Nabors Industries, Inc., 9.25%, due 01/15/19		700,000		858,459
Sabine Pass LNG, L.P., 7.50%, due 11/30/16		1,000,000		842,500
				1,700,959
PAPER AND ALLIED PRODUCTS (2.92%)
International Paper Co., 7.95%, due 06/15/18		1,000,000		1,190,620
PIPELINES (4.52%)
NuStar Logistics, L.P., 7.65%, due 04/15/18		1,600,000		1,840,048
STONE, CLAY, GLASS AND CONCRETE PRODUCTS (1.75%)
Owens Corning, 9.00%, due 06/15/19		600,000		710,724
TRANSPORTATION — BY AIR (2.14%)
Continental Airlines, Inc. Pass- Through Certificates 1997-1 Class 1A, 7.461%, due 10/01/16		872,403		872,403
WATER TRANSPORTATION (5.08%)
Overseas Shipholding Group, Inc., 8.75%, due 12/01/13		1,100,000		1,133,000
Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21 (1)		988,394		936,187
				2,069,187
Total Corporate Bonds (Cost $30,700,822)				31,683,709

18

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

STRATEGIC YIELD PORTFOLIO (continued)

	Principal
	Amount		Value
MORTGAGE-BACKED SECURITIES (12.16%)
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC) (8.11%)
3023 Class TG, 5.50%, due 08/01/35	$	457,229	$	464,627
3051 Class MY, 5.50%, due 10/01/25		1,000,000		1,084,770
Pool # A53146, 5.50%, due 10/01/36		291,399		313,363
Pool # A69436, 6.00%, due 12/01/37		571,060		620,132
Pool # G02648, 5.50%, due 12/01/36		760,706		818,044
				3,300,936
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (4.05%)
Pool # 256103, 5.50%, due 02/01/26		443,027		478,653
Pool # 897144, 6.00%, due 09/01/36		422,053		459,404
Pool # 928570, 6.00%, due 08/01/37		654,588		711,291
				1,649,348
Total Mortgage-Backed Securities (Cost $4,569,370)				4,950,284
SHORT-TERM INVESTMENTS (6.70%)
UNITED STATES GOVERNMENT AGENCIES (4.91%)
Federal Home Loan Bank, due 07/14/10		1,000,000		999,950
Federal Home Loan Mortgage Corp., due 08/23/10		1,000,000		999,882
Total United States Government Agencies (Cost $1,999,832)				1,999,832
	Shares
	Held		Value
MONEY MARKET MUTUAL FUND (1.79%)
JPMorgan U.S. Treasury Plus
Money Market Fund (Cost $728,949)		728,949	$	728,949
Total Short-Term Investments (Cost $2,728,781)				2,728,781
Total Investments (98.58%) (Cost $38,798,973)				40,148,054
OTHER ASSETS LESS LIABILITIES (1.42%)
Cash, receivables, prepaid expense and other assets, less liabilities				577,073
Total Net Assets (100.00)%			$	40,725,127

(1)	Restricted Securities:
	PNC Preferred FD, was purchased at 100.000 on 11/29/06. As of 06/30/10, the carrying value of each unit was 75.338, representing $1,130,072 or 2.77% of total net assets.
	Windsor Petroleum Transportation was purchased at 80.500 on 08/26/99. As of 06/30/10, the carrying value of each unit was 94.718, representing $936,187 or 2.30% of total net assets.
	As of 06/30/10, the carrying value of all restricted securities was $2,066,259 or 5.07% of total net assets.

See accompanying notes.

19

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

MANAGED PORTFOLIO

June 30, 2010

(Unaudited)

	Shares
	Held		Value
COMMON STOCKS (72.89%)
AUTOMOTIVE DEALERS AND GASOLINE SERVICE STATIONS (1.41%)
AutoZone, Inc. (1)		2,700	$	521,694
O’Reilly Automotive, Inc. (1)		10,600		504,136
				1,025,830
BUSINESS SERVICES (3.48%)
Automatic Data Processing, Inc.		11,300		454,938
eBay Inc. (1)		8,900		174,529
Microsoft Corp.		59,400		1,366,794
Oracle Corp.		24,830		532,852
				2,529,113
CHEMICALS AND ALLIED PRODUCTS (10.12%)
Abbott Laboratories		17,500		818,650
Amgen Inc. (1)		3,900		205,140
Colgate-Palmolive Co.		4,330		341,031
Dow Chemical Co. (The)		13,965		331,250
E. I. du Pont de Nemours and Co.		22,875		791,246
Johnson & Johnson		26,912		1,589,423
Merck & Co., Inc.		9,054		316,618
Mylan Inc. (1)		19,050		324,612
Pfizer Inc.		67,084		956,618
Procter & Gamble Co. (The)		18,005		1,079,940
Teva Pharmaceutical Industries Ltd.		11,399		592,634
				7,347,162
COMMUNICATIONS (1.54%)
AT&T Inc.		12,600		304,794
Comcast Corp.-Class A		13,590		236,058
Verizon Communications Inc.		20,675		579,314
				1,120,166
DEPOSITORY INSTITUTIONS (3.36%)
Bank of America Corp.		17,202		247,193
Bank of New York Mellon Corp. (The)		12,108		298,947
JPMorgan Chase & Co.		10,400		380,744
New York Community Bancorp, Inc.		44,834		684,615
Northern Trust Corp.		10,625		496,188
U.S. Bancorp		12,895		288,203
Wells Fargo & Co.		1,658		42,445
				2,438,335
ELECTRIC, GAS AND SANITARY SERVICES (5.69%)
Atmos Energy Corp.		22,952		620,622
Integrys Energy Group, Inc.		14,304		625,657
Pepco Holdings, Inc.		17,790		278,947
Pinnacle West Capital Corp.		24,200		879,912
Tortoise Energy Capital Corp.		54,267		1,243,257
Waste Management, Inc.		15,400		481,866
				4,130,261
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (4.75%)
Cisco Systems, Inc. (1)		35,830		763,537
Energy Conversion Devices, Inc. (1)		14,000		57,400
General Electric Co.		106,965		1,542,435
Helen of Troy Ltd. (1)		12,334		272,088
Intel Corp.		42,000		816,900
				3,452,360
FABRICATED METAL PRODUCTS (0.58%)
Illinois Tool Works Inc.		10,155		419,198
FOOD AND KINDRED PRODUCTS (2.99%)
Coca-Cola Co. (The)		10,380		520,246
Diageo plc		7,200		451,728
Kraft Foods Inc.		15,399		431,172
PepsiCo, Inc.		12,650		771,018
				2,174,164
GENERAL MERCHANDISE STORES (1.67%)
Target Corp.		4,760		234,049
Wal-Mart Stores, Inc.		20,290		975,340
				1,209,389
HOLDING AND OTHER INVESTMENT OFFICES (0.68%)
H&Q Life Sciences Investors		21,230		186,399
Redwood Trust, Inc.		20,900		305,976
				492,375
INDUSTRIAL MACHINERY AND EQUIPMENT (4.47%)
3M Co.		6,535		516,200
Apple Inc. (1)		4,400		1,106,732
EMC Corp. (1)		36,800		673,440
Hewlett-Packard Co.		5,460		236,309
Ingersoll-Rand plc		20,634		711,667
				3,244,348
INSTRUMENTS AND RELATED PRODUCTS (0.94%)
Becton, Dickinson and Co.		6,235		421,611
Stryker Corp.		5,140		257,308
				678,919
INSURANCE AGENTS, BROKERS AND SERVICE (0.59%)
Arthur J. Gallagher & Co.		17,455		425,553
INSURANCE CARRIERS (5.79%)
Allstate Corp. (The)		7,140		205,132
CNO Financial Group, Inc. (1)		75,000		371,250
EMC Insurance Group Inc.		43,593		955,994
Hartford Financial Services Group, Inc. (The)		16,600		367,358
Kansas City Life Insurance Co.		14,300		422,851
Lincoln National Corp.		16,700		405,643
MetLife, Inc.		11,370		429,331
Old Republic International Corp.		31,100		377,243
Protective Life Corp.		31,400		671,646
				4,206,448
LEGAL SERVICES (0.56%)
FTI Consulting, Inc. (1)		9,300		405,387

20

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

MANAGED PORTFOLIO (continued)

	Shares
	Held		Value
COMMON STOCKS (continued)
METAL MINING (5.11%)
Barrick Gold Corp.		57,916	$	2,629,966
Newmont Mining Corp.		17,500		1,080,450
				3,710,416
MISCELLANEOUS RETAIL (1.32%)
Cash America International, Inc.		12,800		438,656
EZCORP, Inc. (1)		28,000		519,400
				958,056
MOTOR FREIGHT TRANSPORTATION AND WAREHOUSING (0.53%)
United Parcel Service, Inc.-Class B		6,720		382,301
OIL AND GAS EXTRACTION (5.36%)
Anadarko Petroleum Corp.		13,700		494,433
Apache Corp.		3,400		286,246
Baker Hughes Inc.		8,700		361,659
Devon Energy Corp.		6,400		389,888
Occidental Petroleum Corp.		22,250		1,716,588
Rowan Companies, Inc. (1)		16,700		366,398
Weatherford International Ltd. (1)		21,000		275,940
				3,891,152
PAPER AND ALLIED PRODUCTS (0.51%)
Kimberly-Clark Corp.		6,115		370,752
PETROLEUM AND COAL PRODUCTS (1.91%)
ConocoPhillips		17,170		842,875
Exxon Mobil Corp.		6,100		348,127
Valero Energy Corp.		11,100		199,578
				1,390,580
PIPELINES (2.50%)
Kinder Morgan Management, LLC (1)		32,025		1,812,295
PRINTING AND PUBLISHING (0.59%)
John Wiley & Sons, Inc.		11,100		429,237
RETAIL-DRUG AND PROPRIETARY STORES (0.23%)
Walgreen Co.		6,360		169,812
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS (0.72%)
Tupperware Brands Corp.		13,100		522,035
SECURITY AND COMMODITY BROKERS (0.76%)
BGC Partners, Inc.,-Class A		108,505		554,461
SERVICES-ENGINEERING, ACCOUNTING, RESEARCH & MANAGEMENT (0.86%)
Quest Diagnostics Inc.		12,600		627,102
TOBACCO PRODUCTS (0.62%)
Philip Morris International Inc.		9,835		450,836
TRANSPORTATION EQUIPMENT (2.58%)
Federal Signal Corp.		36,400		219,856
Genuine Parts Co.		13,600		536,520
Honeywell International Inc.		16,905		659,802
ITT Corp.		10,190		457,735
				1,873,913
WHOLESALE TRADE — NONDURABLE GOODS (0.67%)
Sysco Corp.		17,085		488,118
Total Common Stocks
(Cost $51,983,868)				52,930,074
	Principal
	Amount
MORTGAGE-BACKED SECURITIES (24.36%)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
2003-1 Class PE, 5.50%, due 07/01/32	$	2,250,000		2,467,024
2003-11 Class QC, 5.50%, due 02/01/33		2,500,000		2,782,652
2003-71 Class AK, 5.00%, due 09/01/29		600,000		596,139
2003-116 Class JC, 5.00%, due 05/01/30		1,560,000		1,579,580
2004-22 Class BK, 3.47%, due 04/01/34		64,546		65,179
2004-26 Class GC, 5.00%, due 06/01/31		1,300,000		1,373,372
2004-72 Class DE, 5.00%, due 07/01/32		500,000		532,415
2004-76 Class VG, 5.00%, due 09/01/23		700,000		697,422
2004-89 Class KC, 4.00%, due 10/01/34		256,320		264,185
2004-105 Class VE, 5.50%, due 05/01/24		2,000,000		2,209,878
2004-109 Class WE, 5.00%, due 05/01/33		780,000		845,145
2005-44 Class KC, 5.00%, due 04/01/31		1,125,676		1,159,645
2005-80 Class VC, 5.00%, due 05/01/29		1,000,000		1,094,364
2006-38 Class OG, 5.00%, due 06/01/36		1,448,667		1,546,445
Pool # 2796, 7.00%, due 08/01/29		33,704		37,743
Pool # 3040, 7.00%, due 02/01/31		18,752		21,019
Pool # 3188, 6.50%, due 01/01/32		49,281		55,018
Pool # 3239, 6.50%, due 05/01/32		75,898		84,735
Pool # 3333, 5.50%, due 01/01/33		141,175		153,854

21

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

MANAGED PORTFOLIO (continued)

	Principal
	Amount		Value
MORTGAGE-BACKED SECURITIES (continued)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (continued)
Pool # 3403, 5.50%, due 06/01/33	$	115,019	$	125,348
Total Mortgage-Backed Securities (Cost $16,183,025)				17,691,162
SHORT-TERM INVESTMENTS (2.62%)
UNITED STATES GOVERNMENT AGENCIES (1.38%)
Federal Home Loan Bank, due 07/09/10 (Cost $999,973)		1,000,000		999,973
	Shares
	Held
MONEY MARKET MUTUAL FUND (1.24%)
JPMorgan U.S. Treasury Plus
Money Market Fund (Cost $899,577)		899,577		899,577
Total Short-Term Investments (Cost $1,899,550)				1,899,550
Total Investments (99.87%) (Cost $70,066,443)				72,520,786
OTHER ASSETS LESS LIABILITIES (0.13%)
Cash, receivables, prepaid expense and other assets, less liabilities				96,975
Total Net Assets (100.00)%			$	72,617,761

(1) Non-income producing securities.

See accompanying notes.

22

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

MONEY MARKET PORTFOLIO

June 30, 2010

(Unaudited)

	Annualized
	Yield on
	Purchase			Principal
	Date			Amount		Value
SHORT-TERM INVESTMENTS (96.24%)
COMMERCIAL PAPER (13.14%)
NONDEPOSITORY INSTITUTIONS (8.79%)
Citigroup Inc., due 07/06/10		0.320	%	$	450,000	$	449,980
General Electric Co., due 08/26/10		0.140			460,000		460,000
							909,980
PETROLEUM AND COAL PRODUCTS (4.35%)
Chevron Corp., due 07/01/10		0.210			450,000		450,000
Total Commercial Paper (Cost $1,359,980)							1,359,980
UNITED STATES GOVERNMENT AGENCIES (69.09%)
Federal Farm Credit Bank, due 07/09/10		0.142			400,000		399,988
Federal Farm Credit Bank, due 07/23/10		0.142			500,000		499,957
Federal Home Loan Bank, due 08/05/10		0.112			350,000		349,963
Federal Home Loan Bank, due 08/09/10		0.122			300,000		299,961
Federal Home Loan Bank, due 08/20/10		0.162			500,000		499,889
Federal Home Loan Bank, due 08/23/10		0.183			500,000		499,867
Federal Home Loan Bank, due 09/03/10		0.122			300,000		299,936
Federal Home Loan Bank, due 09/14/10		0.112			350,000		349,920
Federal Home Loan Mortgage Corp., due 07/14/10		0.142			475,000		474,976
Federal Home Loan Mortgage Corp., due 08/16/10		0.157			525,000		524,896
Federal Home Loan Mortgage Corp., due 08/25/10		0.071			400,000		399,957
Federal Home Loan Mortgage Corp., due 09/07/10		0.122			400,000		399,909
Federal Home Loan Mortgage Corp., due 09/21/10		0.122			300,000		299,918
Federal National Mortgage Assoc., due 07/21/10		0.142			450,000		449,965
Federal National Mortgage Assoc., due 07/28/10		0.142			500,000		499,947
Federal National Mortgage Assoc., due 08/02/10		0.147			500,000		499,936
Federal National Mortgage Assoc., due 08/11/10		0.162			400,000		399,927
Total United States Government Agencies (Cost $7,148,912)							7,148,912
UNITED STATES TREASURY OBLIGATIONS (14.01%)
U.S. Treasury Bills, due 07/15/10		0.157			600,000		599,964
U.S. Treasury Bills, due 09/09/10		0.132			500,000		499,874
U.S. Treasury Bills, due 09/16/10		0.086			350,000		349,936
Total United States Treasury Obligations (Cost $1,449,774)							1,449,774
Total Short-Term Investments (Cost $9,958,666)							9,958,666
OTHER ASSETS LESS LIABILITIES (3.76%)
Cash, receivables, prepaid expense and other assets, less liabilities							389,054
Total Net Assets (100.00)%						$	10,347,720

See accompanying notes.

23

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

BLUE CHIP PORTFOLIO

June 30, 2010

(Unaudited)

	Shares
	Held		Value
COMMON STOCKS (93.74%)
BUSINESS SERVICES (5.04%)
Microsoft Corp.		91,883	$	2,114,228
Oracle Corp.		57,149		1,226,418
				3,340,646
CHEMICALS AND ALLIED PRODUCTS (18.02%)
Abbott Laboratories		24,755		1,158,039
Amgen Inc. (1)		17,835		938,121
Bristol-Myers Squibb Co.		41,053		1,023,862
Colgate-Palmolive Co.		6,950		547,382
Dow Chemical Co. (The)		10,505		249,179
E. I. du Pont de Nemours and Co.		15,756		545,000
Eli Lilly and Co.		17,662		591,677
Johnson & Johnson		42,710		2,522,453
Merck & Co., Inc.		31,708		1,108,829
Pfizer Inc.		44,377		632,816
Procter & Gamble Co. (The)		43,542		2,611,649
				11,929,007
COMMUNICATIONS (3.69%)
AT&T Inc.		34,855		843,143
Comcast Corp.-Class A		33,054		574,148
Verizon Communications Inc.		36,562		1,024,467
				2,441,758
DEPOSITORY INSTITUTIONS (5.53%)
Bank of America Corp.		45,666		656,220
Citigroup Inc. (1)		48,341		181,762
JPMorgan Chase & Co.		46,325		1,695,958
Wells Fargo & Co.		44,074		1,128,294
				3,662,234
EATING AND DRINKING PLACES (4.42%)
McDonald’s Corp.		44,467		2,929,041
ELECTRIC, GAS AND SANITARY SERVICES (2.45%)
Exelon Corp.		24,105		915,267
Southern Co. (The)		21,215		706,035
				1,621,302
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (6.77%)
Cisco Systems, Inc. (1)		61,023		1,300,400
General Electric Co.		84,256		1,214,972
Intel Corp.		57,041		1,109,448
Motorola, Inc. (1)		37,189		242,472
Texas Instruments Inc.		26,461		616,012
				4,483,304
FOOD AND KINDRED PRODUCTS (4.87%)
Coca-Cola Co. (The)		31,034		1,555,424
Kraft Foods Inc.		26,424		739,872
PepsiCo, Inc.		15,208		926,928
				3,222,224
GENERAL MERCHANDISE STORES (3.92%)
Target Corp.		11,900		585,123
Wal-Mart Stores, Inc.		41,773		2,008,028
				2,593,151
LUMBER AND WOOD PRODUCTS (0.33%)
Weyerhaeuser Co.		6,270		220,704
INDUSTRIAL MACHINERY AND EQUIPMENT (11.99%)
3M Co.		17,453		1,378,613
Applied Materials, Inc.		23,520		282,710
Caterpillar Inc.		28,044		1,684,603
Dell Inc. (1)		30,585		368,855
EMC Corp. (1)		37,308		682,736
Hewlett-Packard Co.		40,454		1,750,849
International Business Machines Corp.		14,526		1,793,671
				7,942,037
MOTION PICTURES (2.44%)
Time Warner Inc.		16,497		476,928
Walt Disney Co. (The)		36,092		1,136,898
				1,613,826
NON-DEPOSITORY CREDIT INSTITUTIONS (3.28%)
American Express Co.		54,692		2,171,272
PETROLEUM AND COAL PRODUCTS (9.99%)
Chevron Corp.		38,610		2,620,075
Exxon Mobil Corp.		69,936		3,991,248
				6,611,323
PRIMARY METAL INDUSTRIES (0.46%)
Alcoa Inc.		30,278		304,597
SECURITY AND COMMODITY BROKERS (0.56%)
Ameriprise Financial, Inc.		10,349		373,909
TOBACCO PRODUCTS (3.27%)
Altria Group, Inc.		38,185		765,227
Philip Morris International Inc.		30,485		1,397,432
				2,162,659
TRANSPORTATION EQUIPMENT (6.71%)
Boeing Co. (The)		26,912		1,688,728
Honeywell International Inc.		37,254		1,454,024
United Technologies Corp.		20,007		1,298,654
				4,441,406
Total Common Stocks (Cost $57,475,542)				62,064,400
SHORT-TERM INVESTMENTS (6.18%)
MONEY MARKET MUTUAL FUND (0.52%)
JPMorgan U.S. Treasury Plus Money Market Fund (Cost $340,546)		340,546		340,546
	Principal
	Amount
UNITED STATES GOVERNMENT AGENCIES (4.15%)
Federal Home Loan Bank, due 07/14/10	$	1,000,000		999,949
Federal Home Loan Bank, due 08/12/10		750,000		749,921
Federal National Mortgage Assoc., due 08/11/10		1,000,000		999,898
Total United States Government Agencies (Cost $2,749,768)				2,749,768

24

EQUITRUST VARIABLE INSURANCE SERIES FUND

SCHEDULE OF INVESTMENTS

BLUE CHIP PORTFOLIO (continued)

	Principal
	Amount		Value
SHORT-TERM INVESTMENTS (continued)
COMMERCIAL PAPER (1.51%)
NON-DEPOSITORY CREDIT INSTITUTIONS
Citigroup Inc., due 07/08/10 (Cost $999,922)	$	1,000,000	$	999,922
Total Short-Term Investments (Cost $4,090,236)				4,090,236
Total Investments (99.92%) (Cost $61,565,778)				66,154,636
OTHER ASSETS LESS LIABILITIES (0.08%)
Cash, receivables, prepaid expense and other assets, less liabilities				54,973
Total Net Assets (100.00)%			$	66,209,609

(1) Non-income producing securities.

See accompanying notes.

25

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 2010

(Unaudited)

1.   Significant Accounting Policies

Organization

EquiTrust Variable Insurance Series Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended, as a no-load, open-end diversified management investment company, or mutual fund. The Fund is authorized to issue an unlimited number of shares of beneficial interest with no par value. The Fund currently consists of six portfolios (known as the Value Growth, High Grade Bond, Strategic Yield, Managed, Money Market and Blue Chip Portfolios). The Fund offers Initial Class (IC) and Service Class (SC) shares. The Fund began offering SC shares on June 1, 2008. Shares of the Fund are sold only to certain life insurance companies’ separate accounts to fund the benefits under variable insurance contracts issued by such life insurance companies, including Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company (see Note 3).

SC shares are charged distribution fees while IC shares are not. The shares of each Portfolio have equal rights and privileges with all other shares of that Portfolio, except SC shares have separate and exclusive voting rights with respect to the Fund’s Rule 12b-1 Plan. Each share of a Portfolio represents an equal proportionate interest in that Portfolio with each other share, subject to any preferences (such as resulting from Rule 12b-1 distribution fees with respect to the SC shares). In addition, the Board of Trustees of the Fund declares separate dividends on each class of shares.

The Fund allocates daily all income, expenses (other than distribution fees which are only charged to SC shares), and realized and unrealized gains or losses to each class of shares based upon the relative proportion of the value of shares outstanding of each class. Expenses not directly attributed to a Portfolio are apportioned among each of the Portfolios based upon the relative value of each Portfolio. Expenses specifically attributable to a particular class are charged directly to such class.

Security Valuation

All Portfolios, other than the Money Market Portfolio, value their investment securities that are traded on any national exchange at the last sale price on the day of valuation or, lacking any sales, at the mean between the closing bid and asked prices. Investments traded in the over-the-counter market are valued at the mean between the bid and asked prices or yield equivalent. In situations where market quotations are not readily available or quoted market prices are not reliable, investments are valued at fair value in accordance with the procedures adopted by the Fund’s Board of Trustees. Short-term investments are valued at market value, except that obligations maturing in one year or less are valued using the amortized cost method of valuation described below with respect to the Money Market Portfolio, which approximates market value.

The Money Market Portfolio values investments at amortized cost, which approximates market value. Under the amortized cost method, a security is valued at its cost on the date of purchase and thereafter is adjusted to reflect a constant amortization to maturity of the difference between the principal amount due at maturity and the cost of the investment to the portfolio.

Income and Investment Transactions

For financial reporting purposes, investment transactions are recorded on the trade date. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation on investments. Dividend income is recorded on the ex-dividend date and interest is recognized on an accrual basis. Discounts and premiums on investments purchased are amortized over the life of the respective investments.

Dividends and Distributions to Shareholders

On each day that the net asset value per share is calculated in the High Grade Bond and Strategic Yield Portfolios, that Portfolio’s net investment income will be declared, as of the close of the New York Stock Exchange, as a dividend to shareholders of record prior to the declaration. With respect to the Money Market Portfolio, each day the net asset value per share is calculated, net investment income and any realized gains and losses from investment transactions will be declared, as of the close of the New York Stock Exchange, as a dividend to shareholders of record prior to the declaration. With respect to the High Grade Bond and Strategic Yield Portfolios, any net short-term and long-term gains will be declared and distributed periodically, but in no event less frequently than annually. Dividends and distributions of the other portfolios are recorded on the ex-dividend date. Dividends and distributions from net investment income and net realized gain from investments are determined in accordance with federal tax regulations, which may

26

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

1.   Significant Accounting Policies (continued)

differ from U.S. generally accepted accounting principles (see Note 2). Permanent book and tax basis differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.

Dividends and distributions which exceed current and accumulated earnings and profits for federal income tax purposes are reported as return of capital distributions.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Indemnifications

Under the Fund’s organizational documents, its present and past officers and trustees are indemnified against certain liability arising out of the performance of their duties to the Fund. At the discretion of the Board of Trustees, employees and agents may also be indemnified. In addition, in the normal course of business the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.

New Accounting Pronouncements

In January 2010, the FASB issued an ASU, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for Level 2 or Level 3 positions ii) transfers between all levels (including Level 1 and Level 2) will be required to be disclosed on a gross basis (i.e. transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances, and settlements must be shown on a gross basis in the Level 3 rollforward rather than as one net number.

During the period January 1, through June 30, 2010, the Fund had no Level 3 positions and there were no transfers between all levels.

2.   Federal Income Taxes

No provision for federal income taxes is considered necessary because the Fund is qualified as a “regulated investment company” under Subchapter M of the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders. Management of the Fund has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Generally, the tax authorities can examine all tax returns filed for open tax years (December 31, 2006 through December 31, 2009).

As of June 30, 2010, the following Portfolios had approximate net capital loss carryforwards set forth below:

	Portfolio
	Value		High Grade		Strategic				Blue
Net Capital Loss Carryforwards Expire In:	Growth		Bond		Yield		Managed		Chip
2010	$	—	$	—	$	1,477,000	$	—	$	—
2011		—		—		571,000		—		3,000,000
2012		—		—		—		—		556,000
2013		—		—		—		—		60,000
2016		1,118,000		—		1,000		19,000		1,902,000
2017		3,142,000		—		1,929,000		4,398,000		790,000
2018		—		63,000		—		—		—
	$	4,260,000	$	63,000	$	3,978,000	$	4,417,000	$	6,308,000

27

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

2.   Federal Income Taxes (continued)

For the period ended June 30, 2010, the Value Growth, Strategic Yield, Managed and Blue Chip utilized approximately $264,000, $18,000, $77,000 and $950,000, respectively, of capital loss carryforwards.

The tax character of distributions for the years indicated were as follows:

	Period Ended
	June 30,		Year Ended December 31, 2009
	2010				Long-Term
	Ordinary		Ordinary		Capital		Return of
Portfolio	Income		Income		Gains		Capital
Value Growth	$	705,060	$	953,656	$	—	$	—
High Grade Bond		1,048,314		2,180,873		182,152		3,247
Strategic Yield		1,124,626		2,350,027		—		2,433
Managed		1,902,815		2,336,485		—		—
Money Market		5,770		15,235		—		—
Blue Chip		1,601,198		1,951,148		—		—

The Fund designates long-term capital gain dividends per Internal Revenue Code Section 852(b)(3)(C). Distributions of short-term capital gain are treated as ordinary income distributions for tax purposes.

As of June 30, 2010, the components of accumulated earnings (deficit) and capital gains (losses) on a tax basis were identical to those reported in the statements of assets and liabilities, except as follows:

	Portfolio
	Value Growth			Strategic Yield			Managed
Undistributed ordinary income	$	303,546		$	10,830		$	1,087,247
Accumulated capital losses		(4,259,858	)		(3,978,244	)		(4,743,553	)
Net unrealized appreciation of investments		(2,176,916	)		1,349,081			2,475,123
Other timing differences		—			(7,750	)		—
Total accumulated earnings	$	(6,133,228	)	$	(2,626,083	)	$	(1,181,183	)

Differences between book and tax are primarily attributable to taxable spin-offs, mergers and corporate inversions.

3.   Management Contract and Transactions with Affiliates

The Fund has entered into agreements with EquiTrust Investment Management Services, Inc. (“EquiTrust Investment”) relating to the management of the Portfolios and the investment of their assets. Pursuant to these agreements, fees paid to EquiTrust Investment are as follows: (1) annual investment advisory and management fees, which are based on each Portfolio’s average daily net assets as follows: Value Growth Portfolio — 0.45%; High Grade Bond Portfolio — 0.30%; Strategic Yield Portfolio — 0.45%; Managed Portfolio — 0.45%; Money Market Portfolio — 0.25% ; and Blue Chip Portfolio — 0.20%, and (2) accounting fees, which are based on each portfolio’s daily net assets at an annual rate of 0.05%, with a maximum per portfolio annual expense of $30,000.

The Fund has entered into agreements with EquiTrust Investment whereby EquiTrust Investment also serves as the Fund’s shareholder service, transfer and dividend disbursing agent. EquiTrust Marketing Services, LLC serves as the principal underwriter and distributor. Pursuant to these agreements, SC pays a 12b-1 distribution fee at an annual rate of 0.25% of the average daily net asset value attributable to the class of shares. There are no other fees paid by the Fund associated with these services.

EquiTrust Investment has agreed to reimburse the Portfolios annually for total expenses (excluding brokerage, interest, taxes and extraordinary expenses) in excess of 1.50% of each Portfolio’s average daily net assets. The amount reimbursed, however, shall not exceed the amount of the investment advisory and management fee paid by the Portfolio for such period. During the period ended June 30, 2010, EquiTrust Investment further agreed to reimburse any IC Portfolio, to the extent that annual operating expenses, including the investment advisory fee, exceed 0.65%. For the period ended June 30, 2010, no excess expense reimbursements were made to the Fund by EquiTrust Investment.

28

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

3.   Management Contract and Transactions with Affiliates (continued)

During the period ended June 30, 2010, EquiTrust Investment voluntarily waived various Portfolio and class level expenses in the Money Market IC and SC Portfolios. These voluntary waivers may be revoked at any time. For the period ended June 30, 2010, the voluntary waiver amounts were as follows:

	Money Market Portfolio
Fees	IC		SC
Management Fees	$	12,616	$	993
Distribution Fees		—		993
Accounting Fees		2,523		199
Custodial Fees		1,776		130
Miscellaneous Expenses		6,725		534

Certain officers and trustees of the Fund are also officers of EquiTrust Investment, Farm Bureau Life Insurance Company and other affiliated entities. As of June 30, 2010, the total number of the shares of each Portfolio owned by Farm Bureau Life Insurance Company, EquiTrust Life Insurance Company and related separate accounts were as follows:

IC Portfolio	Shares
Value Growth		4,069,709
High Grade Bond		3,665,741
Strategic Yield		3,583,678
Managed		5,063,550
Money Market		7,830,116
Blue Chip		2,015,530

SC Portfolio	Shares
Value Growth		49,601
High Grade Bond		869,555
Strategic Yield		107,928
Managed		93,449
Money Market		565,695
Blue Chip		101,738

4.   Fair Value

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in three broad levels listed below:

•   Level 1 — Quoted prices in active markets for identical securities on the measurement date

•   Level 2 — Other significant observable inputs (including quoted prices in active markets for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•   Level 3 — Significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of the investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term investments are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

29

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

4.   Fair Value (continued)

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2010:

	Investments in Securities
			High Grade		Strategic				Money
	Value Growth		Bond		Yield		Managed		Market		Blue Chip
Valuation Inputs	Portfolio		Portfolio		Portfolio		Portfolio		Portfolio		Portfolio
Level 1 — Quoted Prices:
Common Stocks*	$	45,064,550	$	—	$	—	$	52,930,074	$	—	$	62,064,400
Preferred Stocks*		—		—		785,280		—		—		—
Money market mutual fund		438,472		1,137,509		728,949		899,577		—		340,546
Level 2 — Other Significant Observable Inputs:
Debt securities issued by US government agencies*		1,449,839		4,999,569		1,999,832		999,973		8,598,686		2,749,768
Corporate debt securities*		749,937		27,402,623		31,683,709		—		1,359,980		999,922
Residential mortgage-backed securities*		—		19,242,573		4,950,284		17,691,162		—		—
Commercial mortgage-backed securities*		—		1,413,887		—		—		—		—
Level 3 — Significant Unobservable Inputs		—		—		—		—		—		—
Total	$	47,702,798	$	54,196,161	$	40,148,054	$	72,520,786	$	9,958,666	$	66,154,636

* For further breakdown of securities by industry type, please refer to the Schedule of Investments.

5.   Expense Offset Arrangements

The Fund and other mutual funds managed by EquiTrust Investment have an agreement with the custodian banks to indirectly pay a portion of the custodians’ fees through credits earned by the Funds’ cash on deposit with the bank. This deposit agreement is an alternative to overnight investments. Custodial fees have been adjusted to reflect amounts that would have been paid without this agreement, with a corresponding adjustment reflected as fees paid indirectly in the statements of operations.

30

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

6.   Capital Share Transactions

Transactions in shares of beneficial interest for each Portfolio were as follows:

					Shares Issued In
					Reinvestment of
					Dividends and								Net Increase
	Shares Sold				Distributions				Shares Redeemed				(Decrease)
Portfolio	Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount
Period ended June 30, 2010:
Value Growth IC		49,274	$	603,766		58,861	$	701,627		249,910	$	3,031,908		(141,775	)	$	(1,726,515	)
Value Growth SC		17,270		215,591		280		3,405		5,386		65,586		12,164			153,410
High Grade Bond IC		194,936		2,007,887		86,881		896,707		373,129		3,835,611		(91,312	)		(931,017	)
High Grade Bond SC		280,365		2,881,778		14,664		151,508		66,380		687,442		228,649			2,345,844
Strategic Yield IC		105,987		950,895		122,253		1,100,642		302,356		2,716,872		(74,116	)		(665,335	)
Strategic Yield SC		28,947		259,913		2,646		23,845		10,231		92,709		21,362			191,049
Managed IC		80,150		1,106,334		140,225		1,881,816		431,385		5,913,359		(211,010	)		(2,925,209	)
Managed SC		15,216		216,039		1,506		20,917		2,447		34,322		14,275			202,634
Money Market IC		6,931,799		6,931,799		4,645		4,645		8,857,775		8,857,775		(1,921,331	)		(1,921,331	)
Money Market SC		5,793,828		5,793,828		463		463		5,358,982		5,358,982		435,309			435,309
Blue Chip IC		26,618		875,973		49,391		1,569,649		99,668		3,247,997		(23,659	)		(802,375	)
Blue Chip SC		34,496		1,170,681		954		31,501		7,961		261,756		27,489			940,426
Year Ended December 31, 2009:
Value Growth IC		164,824	$	1,649,861		112,756	$	952,784		498,527	$	5,030,897		(220,947	)	$	(2,428,252	)
Value Growth SC		32,904		335,438		99		855		11,364		111,533		21,639			224,760
High Grade Bond IC		664,177		6,394,763		222,806		2,165,053		872,651		8,412,488		14,332			147,328
High Grade Bond SC		458,663		4,479,473		20,556		200,980		128,588		1,231,600		350,631			3,448,853
Strategic Yield IC		228,470		1,834,089		292,069		2,325,728		954,143		7,425,518		(433,604	)		(3,265,701	)
Strategic Yield SC		69,881		557,146		3,240		26,446		17,586		134,612		55,535			448,980
Managed IC		124,908		1,503,725		222,792		2,332,629		655,634		7,809,556		(307,934	)		(3,973,202	)
Managed SC		43,327		519,917		356		3,835		23,719		292,087		19,964			231,665
Money Market IC		9,647,035		9,647,035		13,349		13,349		12,943,360		12,943,360		(3,282,976	)		(3,282,976	)
Money Market SC		4,333,636		4,333,636		454		454		4,045,903		4,045,903		288,187			288,187
Blue Chip IC		102,005		2,740,177		83,105		1,945,486		218,619		6,086,776		(33,509	)		(1,401,113	)
Blue Chip SC		54,656		1,591,763		234		5,639		5,697		158,615		49,193			1,438,787

7.   Investment Transactions

For the period ended June 30, 2010, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. Government securities) by Portfolio, were as follows:

Portfolio	Purchases		Sales
Value Growth	$	717,844	$	2,834,966
High Grade Bond		3,906,532		1,205,977
Strategic Yield		2,984,972		728,416
Managed		449,106		1,050,579
Blue Chip		—		2,546,337

31

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS (continued)

7.   Investment Transactions (continued)

The basis of the Fund’s investments in securities and the net unrealized appreciation (depreciation) of investments for U.S. federal income tax purposes as of June 30, 2010, by Portfolio, was composed of the following:

	Tax Cost of						Net Unrealized
	Investments		Gross Unrealized				Appreciation (Depreciation)
Portfolio	in Securities		Appreciation		Depreciation		of Investments
Value Growth	$	49,879,714	$	5,731,072	$	7,907,988	$	(2,176,916	)
High Grade Bond		52,127,017		3,341,211		1,272,067		2,069,144
Strategic Yield		38,798,973		2,653,920		1,304,839		1,349,081
Managed		70,045,663		10,586,120		8,110,997		2,475,123
Blue Chip		61,565,778		18,175,999		13,587,141		4,588,858

The basis for U.S. federal income tax purposes and financial reporting purposes for investments in the Money Market Portfolio is the same and is equal to the underlying investments’ carrying value.

8.   Subsequent Events

The fund is not aware of any other transactions or events, which occurred after the balance sheet date and before the financial statements were issued, August 27, 2010, which would require recognition or disclosure.

32

EQUITRUST VARIABLE INSURANCE SERIES FUND

FINANCIAL HIGHLIGHTS

Period Ended June 30, 2010 (Unaudited) and

Years Ended December 31, 2009, 2008, 2007, 2006 and 2005

			Income from Investment Operations								Less Distributions
					Net Realized
					and
	Net Asset		Net		Unrealized			Total			Dividends			Distributions
	Value at		Invest-		Gain			from			from Net			from
	Beginning		ment		(Loss) on			Investment			Investment			Capital			Total
	of Period		Income		Investments			Operations			Income			Gains			Distributions
Value Growth Portfolio
Initial Class:
2010	$	12.10	$	0.07	$	(0.75	)	$	(0.68	)	$	(0.16	)	$	—		$	(0.16	)
2009		9.80		0.16		2.35			2.51			(0.21	)		—			(0.21	)
2008		15.06		0.21		(4.53	)		(4.32	)		(0.33	)		(0.61	)		(0.94	)
2007		15.09		0.33		0.43			0.76			(0.27	)		(0.52	)		(0.79	)
2006		13.65		0.27		1.36			1.63			(0.19	)		—			(0.19	)
2005		12.98		0.19		0.63			0.82			(0.15	)		—			(0.15	)
Service Class:
2010	$	12.29	$	0.04	$	(0.75	)	$	(0.71	)	$	(0.08	)	$	—		$	(0.08	)
2009		9.79		0.09		2.46			2.55			(0.05	)		—			(0.05	)
2008(3)		13.97		0.05		(4.23	)		(4.18	)		—			—			—
High Grade Bond Portfolio
Initial Class:
2010	$	10.07	$	0.21	$	0.41		$	0.62		$	(0.21	)	$	—		$	(0.21	)
2009		9.47		0.46		0.63			1.09			(0.46	)		(0.03	)		(0.49	)
2008		10.12		0.49		(0.65	)		(0.16	)		(0.49	)		—			(0.49	)
2007		10.12		0.53		0.01			0.54			(0.53	)		(0.01	)		(0.54	)
2006		10.16		0.51		(0.04	)		0.47			(0.51	)		—			(0.51	)
2005		10.38		0.47		(0.20	)		0.27			(0.47	)		(0.02	)		(0.49	)
Service Class:
2010	$	10.07	$	0.20	$	0.41		$	0.61		$	(0.19	)	$	—		$	(0.19	)
2009		9.47		0.44		0.63			1.07			(0.44	)		(0.03	)		(0.47	)
2008(3)		9.87		0.27		(0.40	)		(0.13	)		(0.27	)		—			(0.27	)
Strategic Yield Portfolio
Initial Class:
2010	$	8.71	$	0.25	$	0.40		$	0.65		$	(0.25	)	$	—		$	(0.25	)
2009		7.46		0.51		1.25			1.76			(0.51	)		—			(0.51	)
2008		8.94		0.53		(1.48	)		(0.95	)		(0.53	)		—			(0.53	)
2007		9.19		0.57		(0.25	)		0.32			(0.57	)		—			(0.57	)
2006		9.14		0.55		0.05			0.60			(0.55	)		—			(0.55	)
2005		9.37		0.53		(0.23	)		0.30			(0.53	)		—			(0.53	)
Service Class:
2010	$	8.71	$	0.24	$	0.40		$	0.64		$	(0.24	)	$	—		$	(0.24	)
2009		7.46		0.49		1.25			1.74			(0.49	)		—			(0.49	)
2008(3)		8.60		0.30		(1.14	)		(0.84	)		(0.30	)		—			(0.30	)
Managed Portfolio
Initial Class:
2010	$	13.61	$	0.20	$	(0.35	)	$	(0.15	)	$	(0.34	)	$	—		$	(0.34	)
2009		11.93		0.34		1.74			2.08			(0.40	)		—			(0.40	)
2008		16.05		0.40		(3.40	)		(3.00	)		(0.56	)		(0.56	)		(1.12	)
2007		16.32		0.56		0.33			0.89			(0.46	)		(0.70	)		(1.16	)
2006		15.80		0.49		1.28			1.77			(0.37	)		(0.88	)		(1.25	)
2005		15.67		0.35		0.32			0.67			(0.27	)		(0.27	)		(0.54	)
Service Class:
2010	$	13.99	$	0.15	$	(0.32	)	$	(0.17	)	$	(0.25	)	$	—		$	(0.25	)
2009		11.91		0.26		1.88			2.14			(0.06	)		—			(0.06	)
2008(3)		14.99		0.06		(3.14	)		(3.08	)		—			—			—

33

					Ratios/Supplemental Data
													Ratio of
		Total											Net
Net Asset		Investment					Ratio of			Ratio of			Investment
Value at		Return Based			Net Assets at		Total Expenses			Net Expenses			Income			Portfolio
End		on Net Asset			End of Period		to Average			to Average			to Average			Turnover
of Period		Value (1)			(in thousands)		Net Assets (4)			Net Assets (4)			Net Assets (4)			Rate
$	13.12		(1.15	)%	$	71,345		0.57	%		0.57	%		2.33	%		1	%
	13.61		18.42	%		76,878		0.57	%		0.57	%		2.67	%		14	%
	11.93		(19.94	)%		71,044		0.55	%		0.55	%		2.70	%		19	%
	16.05		5.87	%		97,073		0.54	%		0.54	%		3.47	%		14	%
	16.32		11.99	%		93,796		0.55	%		0.55	%		2.98	%		24	%
	15.80		4.53	%		83,368		0.56	%		0.56	%		2.34	%		24	%
$	13.57		(1.29	)%	$	1,273		0.82	%		0.82	%		2.09	%		1	%
	13.99		18.13	%		1,112		0.82	%		0.82	%		2.39	%		14	%
	11.91		(20.55	)%		709		0.81	%		0.81	%		2.87	%		19	%
$	11.26		(5.66	)%	$	47,153		0.59	%		0.59	%		1.16	%		1	%
	12.10		26.56	%		52,383		0.59	%		0.59	%		1.53	%		35	%
	9.80		(30.31	)%		44,595		0.58	%		0.58	%		1.62	%		24	%
	15.06		5.27	%		67,870		0.55	%		0.55	%		2.20	%		17	%
	15.09		12.07	%		65,712		0.58	%		0.58	%		1.88	%		30	%
	13.65		6.41	%		60,223		0.58	%		0.58	%		1.42	%		18	%
$	11.50		(5.83	)%	$	580		0.84	%		0.84	%		0.94	%		1	%
	12.29		26.24	%		470		0.84	%		0.84	%		1.20	%		35	%
	9.79		(29.92	)%		163		0.84	%		0.84	%		1.70	%		24	%
$	10.48		6.18	%	$	45,251		0.45	%		0.45	%		4.11	%		8	%
	10.07		11.90	%		44,400		0.44	%		0.44	%		4.75	%		24	%
	9.47		(1.60	)%		41,603		0.43	%		0.43	%		5.00	%		17	%
	10.12		5.48	%		46,039		0.42	%		0.42	%		5.30	%		11	%
	10.12		4.78	%		39,371		0.44	%		0.44	%		5.08	%		17	%
	10.16		2.65	%		34,946		0.45	%		0.45	%		4.63	%		12	%
$	10.49		6.15	%	$	9,172		0.69	%		0.69	%		3.86	%		8	%
	10.07		11.63	%		6,510		0.69	%		0.69	%		4.44	%		24	%
	9.47		(1.30	)%		2,799		0.68	%		0.68	%		4.87	%		17	%
$	9.11		7.53	%	$	39,736		0.60	%		0.60	%		5.69	%		4	%
	8.71		24.44	%		38,630		0.59	%		0.59	%		6.42	%		6	%
	7.46		(11.08	)%		36,345		0.58	%		0.58	%		6.28	%		11	%
	8.94		3.56	%		45,247		0.57	%		0.57	%		6.26	%		17	%
	9.19		6.79	%		41,481		0.58	%		0.58	%		6.04	%		16	%
	9.14		3.26	%		37,067		0.59	%		0.59	%		5.71	%		1	%
$	9.11		7.41	%	$	989		0.85	%		0.85	%		5.44	%		4	%
	8.71		24.14	%		760		0.84	%		0.84	%		6.04	%		6	%
	7.46		(9.90	)%		237		0.84	%		0.84	%		6.73	%		11	%

34

EQUITRUST VARIABLE INSURANCE SERIES FUND

FINANCIAL HIGHLIGHTS (continued)

Period ended June 30, 2010 (Unaudited) and

Years Ended December 31, 2009, 2008, 2007, 2006 and 2005

			Income from Investment Operations									Less Distributions
						Net Realized
						and
	Net Asset		Net			Unrealized			Total			Dividends
	Value at		Invest-			Gain			from			from Net			Distributions
	Beginning		ment			(Loss) on			Investment			Investment			from		Total
	of Period		Income			Investments			Operations			Income			Capital Gains		Distributions
Money Market Portfolio
Initial Class:
2010	$	1.00	$	—	(2)	$	—		$	—		$	—		$	—	$	—
2009		1.00		—	(2)		—			—			—			—		—
2008		1.00		0.02	(2)		—			0.02			(0.02	)		—		(0.02	)
2007		1.00		0.05			—			0.05			(0.05	)		—		(0.05	)
2006		1.00		0.04			—			0.04			(0.04	)		—		(0.04	)
2005		1.00		0.02			—			0.02			(0.02	)		—		(0.02	)
Service Class:
2010	$	1.00	$	—	(2)	$	—		$	—		$	—		$	—	$	—
2009		1.00		—	(2)		—			—			—			—		—
2008(3)		1.00		0.01	(2)		—			0.01			(0.01	)		—		(0.01	)
Blue Chip Portfolio
Initial Class:
2010	$	32.82	$	0.37		$	(2.32	)	$	(1.95	)	$	(0.75	)	$	—	$	(0.75	)
2009		28.91		0.75			4.07			4.82			(0.91	)		—		(0.91	)
2008		42.41		0.91			(13.55	)		(12.64	)		(0.86	)		—		(0.86	)
2007		40.61		0.86			1.73			2.59			(0.79	)		—		(0.79	)
2006		35.27		0.79			5.25			6.04			(0.70	)		—		(0.70	)
2005		35.17		0.70			0.07			0.77			(0.67	)		—		(0.67	)
Service Class:
2010	$	33.71	$	0.25		$	(2.31	)	$	(2.06	)	$	(0.38	)	$	—	$	(0.38	)
2009		28.87		0.38			4.64			5.02			(0.18	)		—		(0.18	)
2008(3)		39.44		0.23			(10.80	)		(10.57	)		—			—		—

35

					Ratios/Supplemental Data
													Ratio of
		Total											Net
Net Asset		Investment					Ratio of			Ratio of			Investment
Value at		Return Based			Net Assets at		Total Expenses			Net Expenses			Income			Portfolio
End		on Net Asset			End of Period		to Average			to Average			to Average			Turnover
of Period		Value (1)			(in thousands)		Net Assets (4)			Net Assets (4)			Net Assets (4)			Rate
$	1.00		0.05	%	$	9,427		0.47	%		0.00	%		0.11	%		0	%
	1.00		0.12	%		11,348		0.46	%		0.09	%		0.12	%		0	%
	1.00		1.91	%		14,631		0.46	%		0.45	%		1.92	%		0	%
	1.00		4.71	%		16,464		0.45	%		0.45	%		4.60	%		0	%
	1.00		4.43	%		8,557		0.54	%		0.54	%		4.37	%		0	%
	1.00		2.50	%		6,288		0.61	%		0.61	%		2.47	%		0	%
$	1.00		0.05	%	$	921		0.71	%		0.00	%		0.12	%		0	%
	1.00		0.11	%		485		0.71	%		0.07	%		0.10	%		0	%
	1.00		0.71	%		197		0.73	%		0.69	%		0.87	%		0	%
$	30.12		(6.06	)%	$	63,028		0.33	%		0.33	%		2.21	%		0	%
	32.82		17.95	%		69,436		0.33	%		0.33	%		2.56	%		0	%
	28.91		(30.32	)%		62,138		0.31	%		0.31	%		2.46	%		1	%
	42.41		6.49	%		94,766		0.29	%		0.29	%		2.04	%		2	%
	40.61		17.42	%		90,261		0.31	%		0.31	%		2.07	%		0	%
	35.27		2.29	%		82,501		0.31	%		0.31	%		1.98	%		0	%
$	31.27		(6.17	)%	$	3,182		0.57	%		0.57	%		1.96	%		0	%
	33.71		17.65	%		2,503		0.57	%		0.57	%		2.19	%		0	%
	28.87		(26.80	)%		723		0.57	%		0.57	%		2.60	%		1	%

36

EQUITRUST VARIABLE INSURANCE SERIES FUND

NOTES TO FINANCIAL HIGHLIGHTS

(1) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period and is not annualized for periods less than one year.

(2) Without a voluntary waiver/reimbursement of a portion of expenses (see Note 3 to the financial statements) for the periods indicated, the following Portfolio would have had per share net investment income as shown:

			Per Share
			Net Investment		Amount
	Year		Income		Reimbursed
Money Market Portfolio
Class IC		2010	$	—	$	23,639
		2009		—		46,613
		2008		0.02		1,311
Class SC		2010	$	—	$	2,850
		2009		—		2,897
		2008		0.01		18

(3) Service Class financial highlights are for the period June 1, 2008 to December 31, 2008. Respective ratios/supplemental data are computed on an annualized basis.

(4) Computed on an annualized basis, unless otherwise indicated.

37

EQUITRUST VARIABLE INSURANCE SERIES FUND

TAX INFORMATION (Unaudited)

Dividends from net investment income for the following Portfolios are declared daily and were payable on the last business day of the month as follows:

Ordinary Income Dividends:

	High Grade Bond Portfolio				Strategic Yield Portfolio				Money Market Portfolio
Payable Date	Class IC		Class SC		Class IC		Class SC		Class IC		Class SC
January 29, 2010	$	0.0317	$	0.0297	$	0.0370	$	0.0353	$	—	$	—
February 26, 2010		0.0354		0.0334		0.0441		0.0424		0.0001		0.0001
March 31, 2010		0.0365		0.0345		0.0435		0.0416		0.0001		0.0001
April 30, 2010		0.0350		0.0330		0.0397		0.0380		0.0001		0.0001
May 28, 2010		0.0306		0.0287		0.0397		0.0380		0.0001		0.0001
June 30, 2010		0.0377		0.0356		0.0463		0.0445		0.0001		0.0001
Total Dividends per Share	$	0.2069	$	0.1949	$	0.2503	$	0.2398	$	0.0005	$	0.0005

In addition, dividends and distributions to shareholders from net investment income and net realized gain from investment transactions were paid during the period ended June 30, 2010, for the following Portfolios:

Ordinary Income Dividends:

	Declaration		Record		Payable		Amount Per Share
Portfolio	Date		Date		Date		Class IC		Class SC
Value Growth		02/24/10		02/24/10		02/25/10		0.1637		0.0775
Managed		02/24/10		02/24/10		02/25/10		0.3416		0.2453
Blue Chip		02/24/10		02/24/10		02/25/10		0.7489		0.3814

38

Information on Proxy Voting

EquiTrust Variable Insurance Series Fund (the “Fund”) has delegated the authority to vote proxies related to the Fund’s portfolio securities to the Fund’s investment adviser, EquiTrust Management Services, Inc. (the “Adviser”). A description of the policies and procedures that the Adviser uses in fulfilling this responsibility is available, without charge, upon request by calling 1-877-860-2904. It also appears in the Fund’s Statement of Additional Information, which can be found on the SEC’s website at http://www.sec.gov. The Fund’s proxy voting record for the most recent 12-month period ended June 30, 2010 is available, without charge, by calling the toll-free number listed above or by accessing the SEC’s website.

Form N-Q Disclosure:

The Fund files a complete schedule of portfolio holdings for its first and third quarters of each fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://sec.gov or may be reviewed and copies at the SEC’s Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A copy of Form N-Q is also available, without charge, by calling the Fund at 1-877-860-2904.

39

Item 2. Code of Ethics.

Not applicable to this filing.

Item 3. Audit Committee Financial Expert.

Not applicable to this filing.

Item 4. Principal Accountant Fees and Services.

Not applicable to this filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedules of Investments.

See Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Company.

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees since the registrant last provided disclosure in response to this Item.

Item 11. Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, 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”) (17 CFR 270.30a-3(c))) are effective, as of a date

	within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b)	There has been no change to the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Not applicable to this filing.
(a)(2)	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3)	Not applicable.
(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 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.

(Registrant) EquiTrust Variable Insurance Series Fund

By:	/s/Kristi Rojohn
	Name:	Kristi Rojohn
	Title:	Chief Executive Officer
	Date:	8/25/10

     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/Kristi Rojohn
	Name:	Kristi Rojohn
	Title:	Chief Executive Officer
	Date:	8/25/10
By:	/s/James P. Brannen
	Name:	James P. Brannen
	Title:	Chief Financial Officer
	Date:	8/27/10

EX-99.CERT

N-CSR Certification

I, James P. Brannen, certify that:

     1. I have reviewed this report on Form N-CSR of EquiTrust Variable Insurance Series Fund;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 8/27/10	/s/ James P. Brannen
	James P. Brannen
	Chief Financial Officer

N-CSR Certification

I, Kristi Rojohn, certify that:

     1. I have reviewed this report on Form N-CSR of EquiTrust Variable Insurance Series Fund;

     2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

     4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

     5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 8/25/10	/s/ Kristi Rojohn
	Kristi Rojohn
	Chief Executive Officer

EX-99.906CERT

Section 906 Certification

     The following certification is provided by the undersigned Chief Executive Officer and Chief Financial Officer of EquiTrust Variable Insurance Series Fund on the basis of such officers’ knowledge and belief for the sole purpose of complying with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

CERTIFICATION

     In connection with the Semi-Annual Report of EquiTrust Variable Insurance Series Fund (the “Company”) on Form N-CSR for the period ended June 30, 2008 as filed with the Securities and Exchange Commission (the “Report”), we, Kristi Rojohn and James B. Brannen, Chief Executive Officer and Chief Financial Officer, respectively, of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

     1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

     2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

     /s/Kristi Rojohn

Name: Kristi Rojohn

Title: Chief Executive Officer

Date: 8/25/10

     /s/ James P. Brannen

Name: James P. Brannen

Title: Chief Financial Officer

Date 8/27/10