N-CSRS 1 a05-11630_2ncsrs.htm 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, 2005

Date of reporting period:		June 30, 2005

Item 1. Reports to Stockholders.

EquiTrust Variable Insurance Series Fund

Semi-Annual Report
June 30, 2005

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

Dear Shareholder:

Equities recorded broad losses for the first half of 2005, with some segments of the equity market faring better than others. The S&P 500 Stock Composite Index (the "S&P 500") declined 0.81%, but the Dow Jones Industrial Average fell 3.65% and the NASDAQ Composite dropped 5.12%. Small cap stocks fared somewhat better than the latter two indices, with the Russell 2000 Index declining 1.21%.

In contrast to the declines in the equity market, fixed income indices generally recorded positive returns. The Lehman Brothers U.S. Aggregate Bond Index, a measure of the broad domestic fixed income security market, recorded a gain of 2.51% for the period. Investment grade corporate, high yield corporate and fixed rate mortgage-backed securities recorded modest single-digit gains in aggregate, while holders of long-term government securities benefited from a sharp decrease in the interest rate on the thirty-year Treasury bond. Lehman's benchmark for this segment of the market, the U.S. Long Treasury Index, returned 8.26% for the period.

Interest rates have incurred significant change since the beginning of the year, with short-term rates rising and long-term rates declining. The Federal Reserve Board (the "Fed") effectively raised short-term interest rates by hiking the Federal Funds rate by 100 basis points (1%) between the beginning of the year and the end of June. This has benefited holders of money market mutual funds, as the rates paid on these accounts have also increased. Long-term interest rates have generally declined, with the yields on the ten-year and thirty-year Treasury bonds decreasing again to historic lows. Fixed mortgage rates have declined as well, providing further stimulus for the buoyant U.S. housing market.

The U.S. economy continues to grow at a relatively average rate, while some measures show inflation pressures to be low or even subsiding. Corporate earnings growth has slowed considerably since 2004, but corporate balance sheets continue to strengthen. The financial markets have seemingly responded in kind, with long-term interest rates - those most impacted by inflation - receding to historic lows and equities generally retaining their fair - but unexciting - valuation. Returns for both equities and fixed income securities are likely to be restrained near-term due, in part, to these conditions.

In this environment, we continue to emphasize the importance of having an appropriate asset allocation plan. The EquiTrust portfolios provide a means for our investors to gain exposure to both the domestic equity and fixed income markets. Below is a summary of how the individual portfolios have performed so far this year.

Money Market: The interest rates offered by money market funds are closely related to the target rates set by the Federal Open Market Committee ("FOMC"). The FOMC meets several times throughout the year to determine the target Federal Funds rate (the overnight lending rate between banks). Rates have been raised at a measured pace over the last year to 3.25% as of the June 30th meeting. The market is anticipating that the increases will continue throughout the rest of 2005. The Federal Funds rate is expected to be 4.00% by year-end. While inflation remains a concern, the FOMC has stated that it believes inflation is "well contained" in the long term. As of June 30, 2005, the Money Market Portfolio had a 7-day yield of 2.49%.

High Grade Bond: Over the first half of the year the Treasury yield curve got flatter with the two-year Treasury yield rising by 57 basis points (.57%) to 3.63%, the ten-year Treasury yield falling 30 basis points (.30%) to 3.19%, and the thirty-year Treasury yield falling 64 basis points (.64%) to 4.19%. The sector with the worst relative performance in the Lehman Brothers U.S. Aggregate Index ("Aggregate Index") for this period was the Investment Grade Corporate Index, as corporate spreads expanded as a result of problems in the auto sector and increased concerns over companies taking actions that are detrimental to credit quality.

During the six-month period ended June 30, 2005, the High Grade Bond Portfolio underperformed the Aggregate Index, as reflected by the 2.22% total return produced by the Portfolio versus the 2.51% total return produced by the Index. The total returns for the major components of the Aggregate Index for this period were as follows: U.S. Fixed Rate Mortgage Backed Securities (34% of the Index), 2.15%; U.S. Treasury Securities (26% of the Index), 3.20%; and U.S. Investment Grade Corporate Securities (20% of the Index), 2.36%. The Index had an effective duration¹ of 4.16 as of June 30, 2005. In comparison, the Portfolio had approximately 36% of its assets invested in fixed rate mortgage-backed securities, 34% in corporate securities, 14% in cash equivalents, 9% in government agencies, 6% in U.S. Treasuries and 1% in preferred stock. The effective duration of the Portfolio was 3.60. The Portfolio underperformed the Index mainly because of its underexposure to outperforming Treasury issues and Portfolio expenses.

Given the very flat yield curve and our view that the Federal Reserve is not done raising short term interest rates, we feel it is not an appropriate time to take more interest rate risk than the Aggregate Index.

Strategic Yield: The Lehman Brothers High Yield Index ("High Yield Index") generated a total return of 1.11% during the six-month period ending June 30, 2005, outperforming U.S. equities (the S&P 500 returned –0.81%) but underperforming the Lehman Brothers U.S. Investment Grade Corporate Securities Index (which had a total return of 2.36%). The option-adjusted spread on the High Yield Index finished the current period at 367 basis points (3.67%), which was 79 basis points (0.79%) higher than at the start of the year. The High Yield Index had a negative excess return of 155 basis points (–1.55%) relative to duration neutral Treasuries

¹ Duration is a measure of interest rate risk for individual securities and portfolios. The lower the duration for a security or portfolio, the less sensitive it is to movements in interest rates.

during the period. The range of total return by rating category was dispersed with the Caa-rated component of the Index returning –1.19%, Ba-rated component returning 2.27% and B-rated component returning 1.06% over the six-month reporting period.

During the six-month reporting period, the Portfolio produced a total return of 2.89%, exceeding that of the High Yield Index. Its performance was helped by having less exposure to both high yield issues and lower rated issues relative to the Index; in general, the lowest rated issues were the worst performers during the period. A higher exposure to investment grade corporate securities than the Index also helped to increase our returns relative to the Index and more than offset Portfolio expenses.

The Portfolio has historically invested in a mix of high yield and investment grade issues attempting to find attractive issues in both markets. As always, we will seek out securities in both the investment grade and non-investment grade markets that we feel offer attractive potential returns for the amount of risk taken.

Managed: The Managed Portfolio returned 2.15% through June 30, 2005, relative to a loss of 0.81% for the S&P 500. The Portfolio remains most heavily allocated to quality equities, though its fixed income and cash holdings constitute a significant portion of its assets. The cash holdings aided the Portfolio's relative performance modestly, while its equity holdings outperformed the S&P 500 in all sectors except the materials sector.

Equity valuations generally improved from the beginning of the year but remain unattractive on a long-term basis. The S&P 500's price-to-earnings (P/E) multiple on trailing earnings² was around 19.2 times trailing earnings at the end of June, just below the benchmark's 25-year average around 19.7 times. However, this still compares to a longer-term, 79-year average near sixteen times trailing earnings.

Equities are still more attractive than fixed income securities given the historically low level of intermediate and long-term interest rates. As such, we are finding value in large cap S&P 500 names such as Wal-Mart, Anheuser Busch and Boston Scientific, all of which were new holdings during the year.

Value Growth: Value Growth outperformed the S&P 500 in the first half of 2005, returning 2.83% compared to the S&P 500's decline of 0.81%. The Portfolio trailed the benchmark only in its materials and utilities weighting, while it led the S&P 500 most significantly in the consumer discretionary and energy sectors.

During the first half of the year, we made significant changes to the Portfolio's exposure in the energy and financials sectors and also added numerous new positions in S&P 500 constituents. Notwithstanding the energy sector's reasonable valuation and its long-term potential, we reduced Value Growth's exposure to the sector given its strong performance over the past eighteen months. Our concerns about the current economics of the financials sector led us to trim the Portfolio's exposure to commercial banks, and we additionally modified its holdings in the insurance industry. We have been finding value in large cap S&P 500 stocks across most sectors in the benchmark; over the past six months, we have added new positions in Wal-Mart, Anheuser-Busch, Deere & Co., International Paper and Metlife. Notably, these have historically been favorites of growth-stock investors.

Over the past twelve to eighteen months, we have positioned the Portfolio defensively against the eventual decline in earnings growth. Relative to the S&P 500, it remains significantly overweight in the health care and energy sectors and underweight in the consumer discretionary, financials and technology sectors. At this point, our strategy of adding large cap S&P 500 growth stocks has moved the Portfolio towards more a core-like position relative to the S&P 500. We anticipate that it will remain so as long as valuation among large cap stocks remains more compelling relative to that of small cap stocks.

Blue Chip: The Blue Chip Portfolio passively tracks the direction of the large capitalization equity market. Year-to-date, the Portfolio has declined 1.48%, relative to total returns of –0.81% for the S&P 500 and –3.65% for the Dow Jones Industrial Average. The Portfolio remains substantially invested in common stocks of large companies and is designed for those investors who prefer substantial exposure to common stocks at all times or who wish to make their own market value judgments.

We appreciate your investment in the Fund and we take seriously our task of seeking to grow and protect that investment. Thank you for continued support of the Fund.

Craig A. Lang
President

July 29, 2005

An investment in the Money Market Portfolio is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the net asset value of $1.00 per share, it is possible to lose money by investing in the Portfolio.

Past performance is not a guarantee of future results.

² Trailing earnings are the aggregate per share earnings over the past twelve months for the stocks in the S&P 500.

EQUITRUST VARIABLE INSURANCE SERIES FUND

June 30, 2005

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.

EQUITRUST VARIABLE INSURANCE SERIES FUND

June 30, 2005

Managed Portfolio

Portfolio Holdings by Industry Sector

Money Market Portfolio

Portfolio Holdings by Asset Type

Blue Chip Portfolio

Portfolio Holdings by Industry Sector

Expense Example:

As a shareholder of the Fund, you incur ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a given Portfolio 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, 2005 and held until June 30, 2005.

Actual Expenses –

The first line for each Portfolio in the table below provides information about actual account values and actual expenses for that Portfolio. 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 to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes –

The second line for each Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of that Portfolio and an assumed rate of return of 5% per year before expenses, which is not the actual return of the Portfolio. 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 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.

	Beginning Account Value 1/1/2005		Ending Account Value 6/30/2005		Expenses Paid During Period* 1/1/2005 - 6/30/2005		Annualized Expense Ratio
Value Growth								0.58	%
Actual	$	1,000	$	1,028.30	$	2.92
Hypothetical **	$	1,000	$	1,022.12	$	2.91
High Grade Bond								0.45	%
Actual	$	1,000	$	1,022.20	$	2.24
Hypothetical **	$	1,000	$	1,022.78	$	2.24
Strategic Yield								0.59	%
Actual	$	1,000	$	1,028.90	$	2.98
Hypothetical **	$	1,000	$	1,022.06	$	2.97
Managed								0.56	%
Actual	$	1,000	$	1,021.50	$	2.83
Hypothetical **	$	1,000	$	1,022.20	$	2.83
Money Market								0.57	%
Actual	$	1,000	$	1,010.10	$	2.84
Hypothetical **	$	1,000	$	1,022.17	$	2.86
Blue Chip								0.31	%
Actual	$	1,000	$	985.20	$	1.52
Hypothetical **	$	1,000	$	1,023.47	$	1.55

* Expenses are equal to the Annualized Expense Ratio as shown in the table for each Portfolio, multiplied by the average account value over the period, multiplied by 181 days divided by 364 to reflect the one-half year period.

** Hypothetical examples are based on a 5% return before expenses.

(This page has been left blank intentionally.)

EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2005
(Unaudited)

	Value Growth Portfolio			High Grade Bond Portfolio			Strategic Yield Portfolio			Managed Portfolio		Money Market Portfolio		Blue Chip Portfolio
ASSETS
Investments in securities, at value (cost - $51,679,172; $31,092,937; $31,952,422; $68,309,528; $6,598,364; and $68,630,207, respectively)	$	58,623,763		$	31,952,509		$	33,513,224		$	78,363,403	$	6,598,364	$	81,523,037
Cash		12,335			60,059			33,044			17,018		7,251		28,882
Accrued dividends and interest receivable		68,950			236,651			561,154			140,277		5,037		91,794
Receivable for fund shares sold		170			15,799			9,568			14,375		260,095		1,698
Receivable for investment securities sold		191,694			-			-			182,851		-		-
Prepaid expense and other assets		890			462			474			1,147		85		1,310
Total Assets		58,897,802			32,265,480			34,117,464			78,719,071		6,870,832		81,646,721
LIABILITIES
Payable for fund shares redeemed		72,280			31,702			31,554			68,760		8,868		78,897
Accrued expenses		7,276			5,306			5,006			8,419		5,659		9,937
Total Liabilities		79,556			37,008			36,560			77,179		14,527		88,834
NET ASSETS	$	58,818,246		$	32,228,472		$	34,080,904		$	78,641,892	$	6,856,305	$	81,557,887
ANALYSIS OF NET ASSETS
Paid-in Capital	$	55,838,811		$	31,369,330		$	34,780,588		$	65,872,963	$	6,856,305	$	74,950,554
Accumulated undistibuted net investment income		389,384			-			-			839,210		-		788,520
Accumulated undistibuted net realized gain (loss) from investment transactions		(4,354,540	)		(430	)		(2,260,486	)		1,875,844		-		(7,074,017	)
Net unrealized appreciation of investments		6,944,591			859,572			1,560,802			10,053,875		-		12,892,830
NET ASSETS	$	58,818,246		$	32,228,472		$	34,080,904		$	78,641,892	$	6,856,305	$	81,557,887
Shares issued and outstanding as of June 30, 2005		4,460,126			3,111,198			3,635,710			5,092,526		6,856,305		2,401,127
NET ASSET VALUE PER SHARE	$	13.19		$	10.36		$	9.37		$	15.44	$	1.00	$	33.97

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF OPERATIONS

Six Months Ended June 30, 2005
(Unaudited)

	Value Growth Portfolio			High Grade Bond Portfolio			Strategic Yield Portfolio		Managed Portfolio			Money Market Portfolio		Blue Chip Portfolio
INVESTMENT INCOME
Dividends	$	446,201		$	8,100		$	14,175	$	539,037		$	-	$	827,820
Interest		110,379			755,086			993,968		513,610			80,779		87,562
Foreign tax withholding		(1,333	)		-			-		(1,897	)		-		-
Total Investment Income		555,247			763,186			1,008,143		1,050,750			80,779		915,382
EXPENSES
Paid to EquiTrust Investment Management Services, Inc.:
Investment advisory and management fees		128,909			45,993			71,646		168,822			7,755		82,490
Accounting fees		14,320			7,665			7,961		14,977			1,551		14,841
Custodial fees		2,882			2,665			2,183		3,409			3,206		2,261
Professional fees		8,894			5,290			5,417		11,155			2,105		12,289
Reports to shareholders		1,145			588			601		1,469			129		1,667
Trustees' fees and expenses		2,656			1,433			1,496		3,501			271		3,825
Insurance and bonds		686			356			361		879			65		1,011
Miscellaneous		6,371			4,364			4,476		7,328			2,613		8,478
Total Expenses		165,863			68,354			94,141		211,540			17,695		126,862
Net Investment Income		389,384			694,832			914,002		839,210			63,084		788,520
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from investment transactions		2,074,308			(430	)		1,392		1,932,188			-		396
Change in unrealized appreciation (depreciation) of investments		(879,618	)		(7,128	)		43,568		(1,100,050	)		-		(2,036,449	)
Net Gain (Loss) on Investments		1,194,690			(7,558	)		44,960		832,138			-		(2,036,053	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,584,074		$	687,274		$	958,962	$	1,671,348		$	63,084	$	(1,247,533	)

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS

	Value Growth Portfolio						High Grade Bond Portfolio
	Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004			Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004
OPERATIONS
Net investment income	$	389,384		$	662,829		$	694,832		$	1,218,691
Net realized gain (loss) from investment transactions		2,074,308			2,173,686			(430	)		43,870
Change in unrealized appreciation (depreciation) of investments		(879,618	)		3,213,722			(7,128	)		(51,531	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,584,074			6,050,237			687,274			1,211,030
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income		(665,116	)		(563,058	)		(694,832	)		(1,218,691	)
Net realized gain from investment transactions		-			-			(43,870	)		(70,428	)
Total Dividends and Distributions		(665,116	)		(563,058	)		(738,702	)		(1,289,119	)
CAPITAL SHARE TRANSACTIONS		(454,327	)		54,029			2,300,043			3,398,714
Total Increase (Decrease) in Net Assets		464,631			5,541,208			2,248,615			3,320,625
NET ASSETS
Beginning of period		58,353,615			52,812,407			29,979,857			26,659,232
End of period (including undistributed net investment income as set forth below)	$	58,818,246		$	58,353,615		$	32,228,472		$	29,979,857
Undistributed Net Investment Income	$	389,384		$	665,116		$	-		$	-

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
STATEMENTS OF CHANGES IN NET ASSETS (continued)

	Strategic Yield Portfolio						Managed Portfolio
	Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004			Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004
OPERATIONS
Net investment income	$	914,002		$	1,685,239		$	839,210		$	1,297,777
Net realized gain (loss) from investment transactions		1,392			148,802			1,932,188			2,810,450
Change in unrealized appreciation (depreciation) of investments		43,568			581,354			(1,100,050	)		1,790,691
Net Increase (Decrease) in Net Assets Resulting from Operations		958,962			2,415,395			1,671,348			5,898,918
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income		(914,002	)		(1,685,239	)		(1,297,777	)		(1,367,844	)
Net realized gain from investment transactions		-			-			(1,299,691	)		-
Total Dividends and Distributions		(914,002	)		(1,685,239	)		(2,597,468	)		(1,367,844	)
CAPITAL SHARE TRANSACTIONS		3,398,452			4,408,930			4,692,305			3,611,860
Total Increase (Decrease) in Net Assets		3,443,412			5,139,086			3,766,185			8,142,934
NET ASSETS
Beginning of period		30,637,492			25,498,406			74,875,707			66,732,773
End of period (including undistributed net investment income as set forth below)	$	34,080,904		$	30,637,492		$	78,641,892		$	74,875,707
Undistributed Net Investment Income	$	-		$	-		$	839,210		$	1,297,777

	Money Market Portfolio						Blue Chip Portfolio
	Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004			Six Months Ended June 30, 2005 (Unaudited)			Year Ended December 31, 2004
OPERATIONS
Net investment income	$	63,084		$	45,967		$	788,520		$	1,621,030
Net realized gain (loss) from investment transactions		-			-			396			(616,554	)
Change in unrealized appreciation (depreciation) of investments		-			-			(2,036,449	)		3,865,719
Net Increase (Decrease) in Net Assets Resulting from Operations		63,084			45,967			(1,247,533	)		4,870,195
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM
Net investment income		(63,084	)		(45,967	)		(1,621,030	)		(1,194,008	)
Net realized gain from investment transactions		-			-			-			-
Total Dividends and Distributions		(63,084	)		(45,967	)		(1,621,030	)		(1,194,008	)
CAPITAL SHARE TRANSACTIONS		264,240			(135,487	)		(533,677	)		1,451,850
Total Increase (Decrease) in Net Assets		264,240			(135,487	)		(3,402,240	)		5,128,037
NET ASSETS
Beginning of period		6,592,065			6,727,552			84,960,127			79,832,090
End of period (including undistributed net investment income as set forth below)	$	6,856,305		$	6,592,065		$	81,557,887		$	84,960,127
Undistributed Net Investment Income	$	-		$	-		$	788,520		$	1,621,030

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO

June 30, 2005
(Unaudited)

	Shares Held		Value
COMMON STOCKS (86.58%)
AUTOMOTIVE REPAIR, SERVICES AND PARKING (0.63%)
Ryder System, Inc.		10,100	$	369,660
BUSINESS SERVICES (4.69%)
Affiliated Computer Services, Inc.-Class A (1)		5,800		296,380
Computer Associates International, Inc.		12,174		334,541
Compuware Corp. (1)		16,050		115,399
Electronic Data Systems Corp.		5,745		110,591
Fair Isaac & Co., Inc.		4,719		172,243
First Data Corp.		3,520		141,293
Microsoft Corp.		16,425		407,997
Oracle Corp. (1)		12,300		162,360
SunGard Data Systems, Inc. (1)		6,200		218,054
Symantec Corp. (1)		18,016		391,668
Veritas Software Corp. (1)		16,800		409,920
				2,760,446
CHEMICALS AND ALLIED PRODUCTS (14.28%)
Abbott Laboratories		8,000		392,080
Biogen Idec, Inc. (1)		4,620		159,159
Bristol-Myers Squibb Co.		18,220		455,136
Colgate-Palmolive Co.		3,255		162,457
E.I. du Pont de Nemours & Co.		12,555		539,991
GlaxoSmithKline PLC		5,500		266,805
IVAX Corp. (1)		17,000		365,500
Johnson & Johnson		9,525		619,125
KV Pharmaceutical Co.-Class A (1)		12,700		212,725
Merck & Co., Inc.		9,764		300,731
Mylan Laboratories, Inc.		40,025		770,081
Olin Corp.		6,400		116,736
Perrigo Co.		25,615		357,073
Pfizer, Inc.		36,036		993,873
Schering-Plough Corp.		23,200		442,192
Sensient Technologies Corp.		56,375		1,161,889
SurModics, Inc. (1)		7,277		315,603
Taro Pharmaceutical Industries, Ltd. (1)		6,600		191,862
Teva Pharmaceutical Industries, Ltd.		10,216		318,126
Wyeth		5,835		259,657
				8,400,801
COMMUNICATIONS (2.91%)
BellSouth Corp.		11,000		292,270
Centurytel, Inc.		19,300		668,359
Comcast Corp.-Class A (1)		3,235		99,315
Nextel Communications, Inc. (1)		20,200		652,662
				1,712,606
DEPOSITORY INSTITUTIONS (7.69%)
AmSouth Bancorp.		13,425		349,050
Bank of America Corp.		12,204		556,624
Bank of New York Co., Inc.		8,681		249,839

	Shares Held		Value
BOK Financial Corp.		7,000	$	322,840
Citigroup, Inc.		23,183		1,071,750
National City Corp.		6,830		233,040
New York Community Bancorp., Inc.		23,156		419,587
U. S. Bancorp.		20,450		597,140
Wachovia Corp.		7,650		379,440
Wilmington Trust Corp.		9,500		342,095
				4,521,405
EATING AND DRINKING PLACES (0.68%)
Wendy's International, Inc.		8,400		400,260
ELECTRIC, GAS AND SANITARY SERVICES (3.69%)
Alliant Energy Corp.		8,660		243,779
Atmos Energy Corp.		17,012		489,946
Black Hills Corp.		7,520		277,112
Nisource, Inc.		16,000		395,680
Pepco Holdings, Inc.		16,200		387,828
Xcel Energy, Inc.		19,405		378,786
				2,173,131
ELECTRONIC AND OTHER ELECTRICAL EQUIPMENT (2.99%)
Acuity Brands, Inc.		11,417		293,303
ADC Telecommunications, Inc. (1)		18,205		396,323
Cisco Systems, Inc. (1)		30,600		584,766
ECI Telecom, Ltd. (1)		10,000		83,000
Emerson Electric Co.		2,300		144,049
Intel Corp.		8,900		231,934
JDS Uniphase Corp. (1)		16,400		24,928
				1,758,303
ENGINEERING AND MANAGEMENT SERVICES (0.38%)
Shaw Group, Inc. (1)		10,400		223,704
FOOD AND KINDRED PRODUCTS (3.20%)
Anheuser-Busch Cos., Inc.		6,395		292,571
Coca-Cola Co.		6,680		278,890
ConAgra Foods, Inc.		24,000		555,840
General Mills, Inc.		4,110		192,307
Sara Lee Corp.		23,400		463,554
TreeHouse Foods, Inc. (1)		3,397		96,854
				1,880,016
FOOD STORES (1.39%)
7-Eleven, Inc. (1)		14,780		446,947
Kroger Co. (1)		19,526		371,580
				818,527
GENERAL MERCHANDISE STORES (2.30%)
Federated Department Stores, Inc.		6,008		440,266
Fred's, Inc.		23,865		395,682
Target Corp.		5,300		288,373
Wal-Mart Stores, Inc.		4,700		226,540
				1,350,861

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)

	Shares Held		Value
HEALTH SERVICES (2.88%)
Laboratory Corp. of America Holdings (1)		10,660	$	531,934
Lifepoint Hospitals, Inc. (1)		11,463		579,111
Universal Health Services, Inc.-Class B		9,420		585,736
				1,696,781
HOLDING AND OTHER INVESTMENT OFFICES (0.89%)
Highwoods Properties, Inc.		17,500		520,800
INDUSTRIAL MACHINERY AND EQUIPMENT (3.62%)
Deere & Co.		3,990		261,305
EMC Corp. (1)		22,500		308,475
Hewlett-Packard Co.		6,000		141,060
Ingersoll-Rand Co., Ltd.-Class A		9,950		709,932
Solectron Corp. (1)		22,500		85,275
SPX Corp.		9,023		414,878
Stanley Works (The)		4,600		209,484
				2,130,409
INSTRUMENTS AND RELATED PRODUCTS (4.01%)
Agilent Technologies, Inc. (1)		7,000		161,140
Becton Dickinson & Co.		13,226		693,968
Boston Scientific Corp. (1)		4,770		128,790
Fisher Scientific International, Inc. (1)		8,176		530,622
Medtronic, Inc.		6,300		326,277
Perkinelmer, Inc.		11,900		224,910
Steris Corp.		11,448		295,015
				2,360,722
INSURANCE CARRIERS (5.48%)
Allstate Corp.		8,095		483,676
American International Group, Inc.		9,740		565,894
MBIA, Inc.		11,400		676,134
MetLife, Inc.		3,795		170,547
Protective Life Corp.		9,300		392,646
Safeco Corp.		6,240		339,082
WellPoint, Inc. (1)		8,532		594,168
				3,222,147
METAL MINING (1.42%)
Barrick Gold Corp.		20,000		500,600
Placer Dome, Inc.		21,600		332,208
				832,808
MISCELLANEOUS MANUFACTURING INDUSTRIES (0.46%)
Hasbro, Inc.		12,900		268,191
MOTION PICTURES (0.74%)
News Corp.,-Class A		17,040		275,707
Time Warner, Inc. (1)		9,600		160,416
				436,123

	Shares Held		Value
NONDEPOSITORY INSTITUTIONS (0.54%)
Federal Home Loan Mortgage Corp.		4,900	$	319,627
OIL AND GAS EXTRACTION (5.48%)
Apache Corp.		5,200		335,920
Burlington Resources, Inc.		20,000		1,104,800
Occidental Petroleum Co.		8,600		661,598
Rowan Cos., Inc.		16,900		502,099
Whiting Petroleum Corp. (1)		17,100		620,901
				3,225,318
PAPER AND ALLIED PRODUCTS (1.40%)
Abitibi Consolidated, Inc.		92,600		414,848
International Paper Co.		8,700		262,827
Sonoco Products Co.		5,500		145,750
				823,425
PETROLEUM AND COAL PRODUCTS (4.47%)
BP PLC		6,000		374,280
Chevron Corp.		14,100		788,472
ConocoPhillips		25,466		1,464,040
				2,626,792
PRIMARY METAL INDUSTRIES (0.72%)
Northwest Pipe Co. (1)		18,215		423,499
PRINTING AND PUBLISHING (1.63%)
Belo Corp.-Series A .		26,400		632,808
R.R. Donnelley & Sons Co.		9,400		324,394
				957,202
RAILROAD TRANSPORTATION (0.24%)
Union Pacific Corp.		2,155		139,644
TOBACCO PRODUCTS (1.55%)
Altria Group, Inc.		14,100		911,706
TRANSPORTATION EQUIPMENT (2.51%)
Federal Signal Corp.		13,300		207,480
Honeywell International, Inc.		23,500		860,805
ITT Industries, Inc.		4,185		408,582
				1,476,867
WHOLESALE TRADE - NONDURABLE GOODS (2.02%)
Dean Foods Co. (1)		16,986		598,587
Safeway, Inc.		26,230		592,536
				1,191,123
MISCELLANEOUS EQUITIES (1.69%)
H & Q Life Sciences Investors		25,359		402,450
NASDAQ-100 Trust		16,100		592,319
				994,769
Total Common Stocks (Cost $43,983,082)				50,927,673

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
VALUE GROWTH PORTFOLIO (continued)

	Shares Held		Value
SHORT-TERM INVESTMENTS (13.09%)
MONEY MARKET MUTUAL FUND (1.28%)
Blackrock Liquidity Funds, T-Fund Portfolio (Cost $752,233)		752,233	$	752,233
	Principal Amount
COMMERCIAL PAPER (2.89%)
DEPOSITORY INSTITUTIONS (1.70%)
Citigroup CP., 3.07%, due 07/01/05	$	1,000,000		1,000,000
FOOD AND KINDRED PRODUCTS (1.19%)
Coca-Cola Co., due 07/08/05		700,000		699,568
Total Commercial Paper (Cost $1,699,568)				1,699,568
UNITED STATES GOVERNMENT AGENCIES (8.92%)
Federal Home Loan Bank, due 07/06/05		1,250,000		1,249,489
Federal Home Loan Bank, due 07/15/05		900,000		898,921
Federal Home Loan Bank, due 07/22/05		725,000		723,675
Federal Home Loan Mortgage Corp., due 07/12/05		1,500,000		1,498,628
Federal National Mortgage Assoc., due 07/20/05		875,000		873,576
Total United States Government Agencies (Cost $5,244,289)				5,244,289
Total Short-Term Investments (Cost $7,696,090)				7,696,090
Total Investments (99.67%) (Cost $51,679,172)				58,623,763
OTHER ASSETS LESS LIABILITIES (0.33%)
Cash, receivables, prepaid expense and other assets, less liabilities				194,483
Total Net Assets (100.00%)			$	58,818,246

(1) Non-income producing securities.

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO

June 30, 2005
(Unaudited)

	Shares Held		Value
PREFERRED STOCKS (0.64%)
HOLDING AND OTHER INVESTMENT OFFICES
New Plan Excel Realty Trust-Series D, 7.80% (Cost $200,000)		4,000	$	205,875
	Principal Amount
CORPORATE BONDS (33.05%)
DEPOSITORY INSTITUTIONS (2.48%)
Washington Mutual Bank, 5.65%, due 08/15/14	$	750,000		799,102
ELECTRIC, GAS AND SANITARY SERVICES (6.01%)
Maritime & NE Pipeline, 144A, 7.70%, due 11/30/19 (1)		700,000		834,876
Oglethorpe Power Corp., 6.974%, due 06/30/11		235,000		250,870
PacifiCorp, 6.90%, due 11/15/11		750,000		850,837
				1,936,583
FOOD STORES (2.07%)
Ahold Finance USA, Inc., 8.25%, due 07/15/10		600,000		666,000
FOOD AND KINDRED PRODUCTS (3.12%)
Diageo Capital PLC, 4.375%, due 05/03/10		1,000,000		1,004,780
HOLDING AND OTHER INVESTMENT OFFICES (2.11%)
Security Capital Pacific, 7.20%, due 03/01/13		275,000		310,128
Washington REIT, 6.898%, due 02/15/18		350,000		368,988
				679,116
HOTELS AND MOTELS (0.47%)
Meditrust, 7.60%, due 09/13/05		150,000		152,062
INSURANCE CARRIERS (2.86%)
SunAmerica, 8.125%, due 04/28/23		700,000		922,789
SECURITY AND COMMODITY BROKERS (6.85%)
Goldman Sachs Group, Inc., 5.125%, due 01/15/15		900,000		923,139
Morgan Stanley-Series MTNC, 5.125%, due 02/11/19		1,300,000		1,284,374
				2,207,513

	Principal Amount		Value
TOBACCO PRODUCTS (2.57%)
UST, Inc., 7.25%, due 06/01/09	$	750,000	$	830,347
TRANSPORTATION - BY AIR (4.08%)
Continental Airlines, Inc., 6.545%, due 08/02/20		411,879		410,355
Federal Express, 7.50%, due 01/15/18		198,832		233,736
Northwest Airlines-Series 1999-2A, 7.575%, due 03/01/19		671,515		671,549
				1,315,640
TRANSPORTATION EQUIPMENT (0.43%)
Ford Motor Co., 9.215%, due 09/15/21		150,000		139,140
Total Corporate Bonds (Cost $10,020,486)				10,653,072
MORTGAGE-BACKED SECURITIES (32.77%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (0.01%)
Pool # 50276, 9.50%, due 02/01/20		1,326		1,475
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA) (32.76%)
Pool # 1512, 7.50%, due 12/20/23		32,610		35,014
Pool # 2631, 7.00%, due 08/01/28		41,279		43,573
Pool # 2658, 6.50%, due 10/01/28		72,160		75,247
Pool # 2701, 6.50%, due 01/20/29		85,545		89,136
Pool # 2796, 7.00%, due 08/01/29		73,555		77,595
Pool # 3039, 6.50%, due 02/01/31		29,989		31,235
Pool # 3040, 7.00%, due 02/01/31		54,712		57,696
Pool # 3188, 6.50%, due 02/20/32		182,075		189,616
Pool # 3239, 6.50%, due 05/01/32		165,769		172,636
Pool # 3261, 6.50%, due 07/20/32		322,196		335,542
Pool # 3320, 5.50%, due 12/01/32		1,122,446		1,145,813
Pool # 3333, 5.50%, due 01/01/33		929,028		948,055
Pool # 3375, 5.50%, due 04/01/33		144,843		147,809
Pool # 3390, 5.50%, due 05/01/33		647,380		660,639
Pool # 3403, 5.50%, due 06/01/33		1,098,578		1,121,078
Pool # 3458, 5.00%, due 10/01/33		805,521		810,649
Pool # 3499, 5.00%, due 01/01/34		1,257,380		1,265,110
Pool # 3556, 5.50%, due 05/01/34		1,367,030		1,394,845
Pool # 3623, 5.00%, due 10/01/34		1,892,757		1,904,394
Pool # 22630, 6.50% due 08/01/28		39,882		41,589
Pool # 276337, 10.00%, due 08/15/19		9,343		10,621
				10,557,892
Total Mortgage-Backed Securities (Cost $10,336,629)				10,559,367

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
HIGH GRADE BOND PORTFOLIO (continued)

	Principal Amount		Value
UNITED STATES GOVERNMENT AGENCIES (12.42%)
Federal Home Loan Bank, 5.50%, due 05/18/15 .	$	1,000,000	$	1,008,826
Federal Home Loan Mortgage Corp., 4.65%, due 10/10/13		1,000,000		983,650
Federal National Mortgage Assoc., 5.55%, due 06/08/15		1,000,000		1,002,048
Government National Mortgage Assoc., 5.00%, due 05/01/30		1,000,000		1,008,956
Total United States Government Agencies (Cost $3,990,044)				4,003,480
UNITED STATES TREASURY OBLIGATION (6.15%)
U.S. Treasury Note, 2.50%, due 05/31/06 (Cost $1,997,103)		2,000,000		1,982,040
SHORT-TERM INVESTMENTS (14.11%)
COMMERCIAL PAPER (5.51%)
NONDEPOSITORY INSTITUTIONS (3.03%)
American Express Credit Corp., 3.24%, due 07/26/05		500,000		500,000
American General Finance Corp., 3.13%, due 07/11/05		475,000		475,000
				975,000
PETROLEUM AND COAL PRODUCTS (2.48%)
ChevronTexaco Corp., 3.24%, due 07/22/05		800,000		800,000
Total Commercial Paper (Cost $1,775,000) .				1,775,000
UNITED STATES GOVERNMENT AGENCIES (7.36%)
Federal Home Loan Bank, due 07/06/05		200,000		199,918
Federal Home Loan Bank, due 07/15/05		975,000		973,831
Federal Home Loan Mortgage Corp., due 07/19/05 .		1,200,000		1,198,124
Total United States Government Agencies (Cost $2,371,873) .				2,371,873

See accompanying notes.

	Shares Held		Value
MONEY MARKET MUTUAL FUND (1.24%)
Blackrock Liquidity Funds, T-Fund Portfolio (Cost $401,802)		401,802	$	401,802
Total Short-Term Investments (Cost $4,548,675).				4,548,675
Total Investments (99.14%) (Cost $31,092,937)				31,952,509
OTHER ASSETS LESS LIABILITIES (0.86%)
Cash, receivables, prepaid expense and other assets, less liabilities.				275,963
Total Net Assets (100.00%)			$	32,228,472

(1) Each unit was purchased at 104.481 on 04/20/01. As of 06/30/05, the carrying value of each unit was 119.268, representing $834,876 or 2.59% of total net assets.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO

June 30, 2005
(Unaudited)

	Shares Held		Value
PREFERRED STOCKS (1.06%)
HOLDING AND OTHER INVESTMENT OFFICES
New Plan Excel Realty Trust- Series D, 7.80% (Cost $350,000)		7,000	$	360,282
	Principal Amount
CORPORATE BONDS (71.85%)
APPAREL AND ACCESSORY STORES (4.54%)
Woolworth (FW) Corp., 8.50%, due 01/15/22	$	1,400,000		1,547,000
CHEMICALS AND ALLIED PRODUCTS (5.17%)
Lyondell Chemical Co., 9.625%, due 05/01/07		900,000		965,250
Nova Chemicals, Ltd., 7.875%, due 09/15/25		800,000		796,000
				1,761,250
COMMUNICATIONS (1.51%)
Telephone & Data Systems, Inc., 7.00%, due 08/01/06		500,000		514,315
ELECTRIC, GAS AND SANITARY SERVICES (10.34%)
Alliant Energy Resources, Inc., 9.75%, due 01/15/13		1,000,000		1,300,760
ESI Tractebel, 7.99%, due 12/30/11		292,000		311,888
Indianapolis Power & Light Co., 7.05%, due 02/01/24		750,000		774,593
Semco Energy, Inc., 7.125%, due 05/15/08		900,000		922,500
Waterford 3 Nuclear Power Plant, 8.09%, due 01/02/17		193,776		213,626
				3,523,367
GENERAL MERCHANDISE STORES (0.03%)
DR Structured Finance, 8.35%, due 02/15/04 (1)		115,462		11,546
HOLDING AND OTHER INVESTMENT OFFICES (18.29%)
Bradley Operating LP, 7.20%, due 01/15/08		450,000		472,887
Federal Realty Investment Trust, 7.48%, due 08/15/26		600,000		652,248
First Industrial LP, 7.60%, due 07/15/28		700,000		820,295

	Principal Amount		Value
First Industrial LP, 7.75%, due 04/15/32	$	500,000	$	601,305
HRPT Properties, 6.25%, due 08/15/16		375,000		404,719
iStar Financial, Inc., 7.00%, due 03/15/08		300,000		318,666
iStar Financial, Inc.-Series B, 5.70%, due 03/01/14		1,171,000		1,193,682
Price Development Co., 7.29%, due 03/11/08		337,500		351,655
Spieker Properties LP, 7.35%, due 12/01/17		1,200,000		1,420,356
				6,235,813
INSURANCE CARRIERS (5.24%)
Markel Capital Trust, 8.71%, due 01/01/46		1,000,000		1,087,950
PXRE Capital Trust, 8.85%, due 02/01/27		670,000		698,475
				1,786,425
MOTION PICTURES (3.00%)
Time Warner, Inc., 8.375%, due 03/15/23		800,000		1,021,464
PAPER AND ALLIED PRODUCTS (8.98%)
Bowater, Inc., 9.375%, due 12/15/21		900,000		972,000
Cascades, Inc., 7.25%, due 02/15/13		1,000,000		990,000
Potlatch Corp., 12.50%, due 12/01/09		900,000		1,098,000
				3,060,000
TRANSPORTATION - BY AIR (4.00%)
Continental Airlines, Inc., 7.461%, due 04/01/15		1,241,304		1,166,453
Northwest Airlines-Series 1999-2A, 7.575%, due 03/01/19		197,257		197,267
				1,363,720
WATER TRANSPORTATION (6.63%)
Overseas Shipholding Group, Inc., 8.75%, due 12/01/13		1,100,000		1,245,750
Windsor Petroleum Transportation, 144A, 7.84%, due 01/15/21 (2)		1,000,000		1,013,240
				2,258,990
WHOLESALE TRADE - NONDURABLE GOODS (4.12%)
Safeway, Inc., 7.45%, due 09/15/27.		1,200,000		1,405,152
Total Corporate Bonds (Cost $22,949,396)				24,489,042

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
STRATEGIC YIELD PORTFOLIO (continued)

	Principal Amount		Value
UNITED STATES GOVERNMENT AGENCIES (5.90%)
Federal Home Loan Bank, 5.50%, due 05/18/15 .	$	1,000,000	$	1,008,826
Federal National Mortgage Assoc., 5.55%, due 06/08/15		1,000,000		1,002,048
Total United States Government Agencies (Cost $2,000,000)				2,010,874
SHORT-TERM INVESTMENTS (19.52%)
COMMERCIAL PAPER (7.48%)
FOOD AND KINDRED PRODUCTS (1.17%)
Coca-Cola Enterprises, due 07/13/05		400,000		399,591
NONDEPOSITORY INSTITUTIONS (6.31%)
American Express Credit Corp., 3.23%, due 07/11/05		1,100,000		1,100,000
American General Finance Corp., 3.12%, due 07/18/05		150,000		150,000
General Electric Capital Corp., 3.02%, due 07/06/05		900,000		900,000
				2,150,000
Total Commercial Paper (Cost $2,549,591)				2,549,591
UNITED STATES GOVERNMENT AGENCIES (10.54%)
Federal Home Loan Bank, due 07/13/05		300,000		299,695
Federal Home Loan Bank, due 07/22/05		1,100,000		1,097,984
Federal Home Loan Mortgage Corp., due 07/19/05 .		950,000		948,512
Federal National Mortgage Assoc., due 07/18/05		250,000		249,647
Federal National Mortgage Assoc., due 07/27/05		1,000,000		997,702
Total United States Government Agencies (Cost $3,593,540)				3,593,540

See accompanying notes.

	Shares Held		Value
MONEY MARKET MUTUAL FUND (1.50%)
Blackrock Liquidity Funds, T-Fund Portfolio (Cost $509,896)		509,895	$	509,895
Total Short-Term Investments (Cost $6,653,027)				6,653,026
Total Investments (98.33%) (Cost $31,952,423)				33,513,224
OTHER ASSETS LESS LIABILITIES (1.67%)
Cash, receivables, prepaid expense and other assets, less liabilities				567,680
Total Net Assets (100.00%)			$	34,080,904

(1) This security is past due. Partial or no interest was received from this security on its last scheduled interest payment date.

(2) Each unit was purchased at 80.500 on 08/26/99. As of 06/30/05, the carrying value of each unit was 101.324, representing $1,013,240 or 2.97% of net assets.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO

June 30, 2005
(Unaudited)

	Shares Held		Value
COMMON STOCKS (61.59%)
AUTOMOTIVE REPAIR, SERVICES AND PARKING (0.62%)
Ryder System, Inc.		13,300	$	486,780
BUSINESS SERVICES (0.52%)
Electronic Data Systems Corp.		7,500		144,375
Veritas Software Corp. (1)		10,900		265,960
				410,335
CHEMICALS AND ALLIED PRODUCTS (10.38%)
Bristol-Myers Squibb Co.		19,605		489,733
Colgate-Palmolive Co.		4,230		211,119
E.I. du Pont de Nemours & Co.		16,475		708,590
GlaxoSmithKline PLC		4,700		227,997
IVAX Corp. (1)		21,375		459,562
Johnson & Johnson		12,527		814,255
KV Pharmaceutical Co.-Class A (1)		12,600		211,050
Merck & Co., Inc		15,158		466,866
Mylan Laboratories, Inc...		50,025		962,481
Olin Corp		17,100		311,904
Pfizer, Inc		47,104		1,299,128
Schering-Plough Corp.		15,700		299,242
Sensient Technologies Corp.		73,945		1,524,006
Taro Pharmaceutical Industries, Ltd. (1)		6,030		175,292
				8,161,225
COMMUNICATIONS (2.65%)
BellSouth Corp.		21,800		579,226
Centurytel, Inc		24,040		832,505
Comcast Corp.-Class A (1)		3,930		120,651
Nextel Communications, Inc. (1)		17,200		555,732
				2,088,114
DEPOSITORY INSTITUTIONS (7.00%)
AmSouth Bancorp.		19,910		517,660
Bank of America Corp.		14,072		641,824
Bank of New York Co., Inc.		11,229		323,171
BOK Financial Corp.		9,100		419,692
Citigroup, Inc.		19,822		916,371
National City Corp.		8,695		296,673
New York Community Bancorp., Inc.		44,834		812,392
U. S. Bancorp		24,470		714,524
Wachovia Corp.		8,328		413,069
Wilmington Trust Corp.		12,500		450,125
				5,505,501
ELECTRIC, GAS AND SANITARY SERVICES (5.13%)
Alliant Energy Corp.		22,115		622,537
Atmos Energy Corp.		38,252		1,101,658
Black Hills Corp.		9,655		355,787

	Shares Held		Value
Nisource, Inc.		20,300	$	502,019
Pepco Holdings, Inc.		40,600		971,964
Xcel Energy, Inc.		24,690		481,949
				4,035,914
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (1.05%)
Acuity Brands, Inc.		15,101		387,945
Cisco Systems, Inc. (1)		20,100		384,111
Emerson Electric Co.		800		50,104
				822,160
ENGINEERING AND MANAGEMENT SERVICES (0.57%)
Shaw Group, Inc. (1)		21,000		451,710
FOOD AND KINDRED PRODUCTS (1.94%)
Anheuser-Busch Cos., Inc.		7,910		361,883
ConAgra Foods, Inc.		24,914		577,008
Sara Lee Corp.		24,100		477,421
TreeHouse Foods, Inc. (1)		3,814		108,731
				1,525,043
FOOD STORES (0.61%)
Kroger Co. (1)		25,186		479,290
GENERAL MERCHANDISE STORES (1.34%)
Federated Department Stores, Inc.		7,681		562,864
Fred's, Inc.		11,840		196,307
Wal-Mart Stores, Inc.		6,100		294,020
				1,053,191
HEALTH SERVICES (1.04%)
Lifepoint Hospitals, Inc. (1)		8,429		425,833
Universal Health Services, Inc.-Class B		6,350		394,843
				820,676
HOLDING AND OTHER INVESTMENT OFFICES (0.81%)
Highwoods Properties, Inc.		21,500		639,840
INDUSTRIAL MACHINERY AND EQUIPMENT (2.46%)
Hewlett-Packard Co.		6,900		162,219
Ingersoll-Rand Co., Ltd.-Class A		10,222		729,340
SPX Corp.		10,246		471,111
Stanley Works (The)		12,500		569,250
				1,931,920
INSTRUMENTS AND RELATED PRODUCTS (1.74%)
Becton Dickinson & Co.		13,835		725,922
Fisher Scientific International, Inc. (1)		3,920		254,408

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)

	Shares Held		Value
INSTRUMENTS AND RELATED PRODUCTS (1.74%) - continued
Steris Corp.		14,946	$	385,158
				1,365,488
INSURANCE CARRIERS (3.94%)
Allstate Corp.		10,395		621,101
American International Group, Inc.		6,170		358,477
MBIA, Inc.		7,781		461,491
MetLife, Inc.		4,855		218,184
Protective Life Corp.		6,200		261,764
Safeco Corp.		7,925		430,645
WellPoint, Inc. (1)		10,778		750,580
				3,102,242
METAL MINING (2.30%)
Barrick Gold Corp.		41,200		1,031,236
Placer Dome, Inc.		50,500		776,690
				1,807,926
OIL AND GAS EXTRACTION (4.36%)
Apache Corp.		6,700		432,820
Burlington Resources, Inc.		15,000		828,600
Occidental Petroleum Co.		16,500		1,269,345
Rowan Cos., Inc.		16,700		496,157
Whiting Petroleum Corp. (1)		11,000		399,410
				3,426,332
PAPER AND ALLIED PRODUCTS (2.49%)
Abitibi Consolidated, Inc.		133,500		598,080
International Paper Co.		22,900		691,809
P.H. Glatfelter Co.		31,300		388,120
Sonoco Products Co. .		10,600		280,900
				1,958,909
PETROLEUM AND COAL PRODUCTS (2.92%)
BP PLC		8,100		505,278
ConocoPhillips		31,224		1,795,068
				2,300,346
PRIMARY METAL INDUSTRIES (0.09%)
Wolverine Tube, Inc. (1)		11,400		66,918
PRINTING AND PUBLISHING (1.70%)
Belo Corp.-Series A		29,600		709,512
R.R. Donnelley & Sons Co.		18,100		624,631
				1,334,143
RAILROAD TRANSPORTATION (0.22%)
Union Pacific Corp.		2,710		175,608
TOBACCO PRODUCTS (1.27%)
Altria Group, Inc.		15,400		995,764

	Shares Held		Value
TRANSPORTATION EQUIPMENT (2.63%)
Federal Signal Corp.		36,400	$	567,840
Honeywell International, Inc.		27,400		1,003,662
ITT Industries, Inc.		5,095		497,425
				2,068,927
WHOLESALE TRADE - NONDURABLE GOODS (1.81%)
Dean Foods Co. (1)		19,069		671,992
Safeway, Inc.		33,280		751,795
				1,423,787
Total Common Stocks (Cost $38,489,191)				48,438,089
	Principal Amount
MORTGAGE-BACKED SECURITIES (4.49%)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA)
Pool # 2796, 7.00%, due 08/01/29	$	110,333		116,392
Pool # 3040, 7.00%, due 02/01/31		68,391		72,120
Pool # 3188, 6.50%, due 02/20/32		182,074		189,616
Pool # 3239, 6.50%, due 05/01/32		277,627		289,127
Pool # 3333, 5.50%, due 01/01/33		406,450		414,775
Pool # 3403, 5.50%, due 06/01/33		346,310		353,403
Pool # 3442, 5.00%, due 09/01/33		1,204,134		1,211,799
Pool # 3459, 5.50%, due 10/01/33		861,131		878,768
Total Mortgage-Backed Securities (Cost $3,439,790)				3,526,000
UNITED STATES GOVERNMENT AGENCIES (10.46%)
Government National Mortgage Assoc., 5.00%, due 09/01/23		700,000		704,498
Government National Mortgage Assoc., 5.00%, due 09/01/29		600,000		605,920
Government National Mortgage Assoc., 5.00%, due 05/01/30		1,560,000		1,573,972
Government National Mortgage Assoc., 5.00%, due 06/01/31		1,300,000		1,315,449
Government National Mortgage Assoc., 5.00%, due 05/01/33		780,000		785,789
Government National Mortgage Assoc., 5.00%, due 06/01/33		1,693,200		1,717,631
Government National Mortgage Assoc., 3.47%, due 04/01/34		587,943		578,830

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MANAGED PORTFOLIO (continued)

	Principal Amount		Value
UNITED STATES GOVERNMENT AGENCIES (10.46%) - continued
Government National Mortgage Assoc., 4.00%, due 10/01/34	$	954,669	$	944,722
Total United States Government Agencies (Cost $8,208,044)				8,226,811
SHORT-TERM INVESTMENTS (23.11%)
COMMERCIAL PAPER (9.00%)
DEPOSITORY INSTITUTIONS (2.93%)
Citigroup CP, 3.06%, due 07/11/05		2,300,000		2,300,000
NONDEPOSITORY INSTITUTIONS (6.07%)
American Express Credit Corp., 3.03%, due 07/06/05		2,000,000		2,000,000
American General Finance Corp., 3.12%, due 07/20/05		275,000		275,000
American General Finance Corp., 3.26%, due 07/21/05		1,300,000		1,300,000
General Electric Capital Corp., 3.05%, due 07/18/05		1,200,000		1,200,000
				4,775,000
Total Commercial Paper (Cost $7,075,000)				7,075,000
UNITED STATES GOVERNMENT AGENCIES (13.38%)
Federal Home Loan Bank, due 07/13/05		1,200,000		1,198,816
Federal Home Loan Bank, due 07/27/05		850,000		848,167
Federal Home Loan Bank, due 08/12/05		650,000		647,646
Federal Home Loan Bank, due 08/17/05		1,100,000		1,095,473
Federal Home Loan Mortgage Corp., due 08/01/05		1,700,000		1,695,499
Federal National Mortgage Assoc., due 07/20/05		2,900,000		2,895,366
Federal National Mortgage Assoc., due 08/03/05		1,350,000		1,346,194
Federal National Mortgage Assoc., due 08/10/05		800,000		797,173
Total United States Government Agencies (Cost $10,524,334)				10,524,334

See accompanying notes.

	Shares Held		Value
MONEY MARKET MUTUAL FUND (0.73%)
Blackrock Liquidity Funds, T-Fund Portfolio (Cost $573,169)		573,169	$	573,169
Total Short-Term Investments (Cost $18,172,503)				18,172,503
Total Investments (99.65%) (Cost $68,309,528)				78,363,403
OTHER ASSETS LESS LIABILITIES (0.35%)
Cash, receivables, prepaid expense and other assets, less liabilities				278,489
Total Net Assets (100.00%)			$	78,641,892

(1) Non-income producing securities.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
MONEY MARKET PORTFOLIO

June 30, 2005
(Unaudited)

	Annualized Yield on Purchase Date			Principal Amount		Value
SHORT-TERM INVESTMENTS (96.24%)
COMMERCIAL PAPER (21.43%)
FOOD AND KINDRED PRODUCTS (3.64%)
Coca-Cola Enterprises, due 07/21/05		3.041	%	$	250,000	$	249,578
NONDEPOSITORY INSTITUTIONS (13.85%)
American Express Credit Corp., 3.06%, due 07/29/05		3.063			250,000		250,000
American General Finance Corp., 3.15%, due 08/02/05		3.149			275,000		275,000
General Electric Capital Corp., 3.30%, due 09/07/05		3.297			175,000		175,000
International Business Machines Corp., 3.01%, due 07/07/05		3.012			250,000		250,000
							950,000
PETROLEUM AND COAL PRODUCTS (3.94%)
ChevronTexaco Corp., 2.76%, due 07/01/05		2.756			270,000		270,000
Total Commercial Paper (Cost $1,469,578)							1,469,578
UNITED STATES GOVERNMENT AGENCIES (71.19%)
Federal Home Loan Bank, due 07/15/05		3.168			225,000		224,727
Federal Home Loan Bank, due 07/22/05		3.003			250,000		249,569
Federal Home Loan Bank, due 07/25/05		3.013			250,000		249,506
Federal Home Loan Bank, due 08/19/05		3.146			200,000		199,159
Federal Home Loan Bank, due 09/02/05		3.247			200,000		198,885
Federal Home Loan Bank, due 09/07/05		3.240			225,000		223,650
Federal Home Loan Bank, due 09/09/05		3.260			225,000		223,602
Federal Home Loan Bank, due 09/14/05		3.328			200,000		198,642
Federal Home Loan Bank, due 09/28/05		3.384			250,000		247,954
Federal Home Loan Mortgage Corp., due 07/11/05		3.006			150,000		149,877
Federal Home Loan Mortgage Corp., due 07/19/05		3.151			225,000		224,651
Federal Home Loan Mortgage Corp., due 08/01/05		3.125			250,000		249,338
Federal Home Loan Mortgage Corp., due 08/08/05		3.102			225,000		224,276
Federal Home Loan Mortgage Corp., due 08/23/05		3.213			225,000		223,955
Federal Home Loan Mortgage Corp., due 09/27/05		3.394			200,000		198,377
Federal National Mortgage Assoc., due 07/06/05		2.998			250,000		249,897
Federal National Mortgage Assoc., due 07/13/05		3.099			250,000		249,745
Federal National Mortgage Assoc., due 07/27/05		3.104			225,000		224,504
Federal National Mortgage Assoc., due 08/03/05		3.122			200,000		199,437
Federal National Mortgage Assoc., due 08/24/05		3.192			250,000		248,825
Federal National Mortgage Assoc., due 08/31/05		3.246			200,000		198,921
Federal National Mortgage Assoc., due 09/28/05		3.405			225,000		223,147
Total United States Government Agencies (Cost $4,880,644)							4,880,644
UNITED STATES TREASURY OBLIGATION (3.62%)
U.S. Treasury Bill, due 09/29/05 (Cost $248,142)		3.036			250,000		248,142
Total Short-Term Investments (Cost $6,598,364)							6,598,364
OTHER ASSETS LESS LIABILITIES (3.76%)
Cash, receivables, prepaid expense and other assets, less liabilities							257,941
Total Net Assets (100.00%)						$	6,856,305

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO

June 30, 2005
(Unaudited)

	Shares Held		Value
COMMON STOCKS (92.37%)
BUSINESS SERVICES (3.80%)
Microsoft Corp.		93,758	$	2,328,949
Oracle Corp. (1)		58,314		769,745
				3,098,694
CHEMICALS AND ALLIED PRODUCTS (15.39%)
Abbott Laboratories		25,260		1,237,993
Amgen, Inc. (1)		18,200		1,100,372
Bristol-Myers Squibb Co.		36,063		900,854
Dow Chemical Co.		10,720		477,362
E.I. du Pont de Nemours & Co.		16,081		691,644
Eli Lilly & Co.		18,022		1,004,006
Johnson & Johnson		43,580		2,832,700
Merck & Co., Inc.		28,928		890,982
Pfizer, Inc.		45,282		1,248,878
Procter & Gamble Co.		41,042		2,164,966
				12,549,757
COMMUNICATIONS (4.43%)
Comcast Corp.-Class A (1)		22,486		690,320
SBC Communications, Inc.		35,565		844,669
Verizon Communications		37,307		1,288,957
Viacom, Inc.-Class B		24,668		789,869
				3,613,815
DEPOSITORY INSTITUTIONS (10.53%)
Bank of America		46,596		2,125,244
Citigroup, Inc.		49,326		2,280,341
J. P. Morgan Chase & Co.		47,270		1,669,576
Wachovia Corp.		25,980		1,288,608
Wells Fargo Co.		19,900		1,225,442
				8,589,211
EATING AND DRINKING PLACES (1.76%)
McDonald's Corp.		51,752		1,436,118
ELECTRIC, GAS AND SANITARY SERVICES (3.51%)
Dominion Resources, Inc.		11,600		851,324
Exelon Corp.		24,600		1,262,718
Southern Co.		21,650		750,605
				2,864,647
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT (8.22%)
Cisco Systems, Inc. (1)		62,268		1,189,941
General Electric Co.		73,576		2,549,408
Intel Corp.		58,206		1,516,848
Motorola, Inc.		37,949		692,949
Texas Instruments, Inc.		27,001		757,918
				6,707,064

	Shares Held		Value
FOOD AND KINDRED PRODUCTS (3.02%)
Anheuser Busch & Cos., Inc.		11,432	$	523,014
Coca-Cola Co. (The)		26,389		1,101,741
PepsiCo, Inc.		15,518		836,886
				2,461,641
FORESTRY (0.50%)
Weyerhaeuser Co.		6,400		407,360
GENERAL MERCHANDISE STORES (2.52%)
Wal-Mart Stores, Inc.		42,623		2,054,429
INDUSTRIAL MACHINERY AND EQUIPMENT (8.42%)
3M Co.		17,808		1,287,518
Applied Materials, Inc.		24,000		388,320
Caterpillar, Inc.		14,307		1,363,600
Dell, Inc. (1)		31,210		1,233,107
EMC Corp. (1)		38,068		521,912
Hewlett-Packard Co.		41,279		970,469
International Business Machines Corp.		14,821		1,099,718
				6,864,644
INSURANCE CARRIERS (2.70%)
American International Group, Inc.		37,964		2,205,708
LUMBER AND WOOD PRODUCTS (1.24%)
Home Depot, Inc.		25,913		1,008,016
MOTION PICTURES (2.17%)
Disney (Walt) Co.		36,832		927,430
Time Warner, Inc. (1)		50,502		843,888
				1,771,318
NONDEPOSITORY INSTITUTIONS (4.48%)
American Express Co.		52,797		2,810,384
Federal National Mortgage Assoc.		14,400		840,960
				3,651,344
PETROLEUM AND COAL PRODUCTS (7.62%)
Chevron Corp.		39,400		2,203,248
Exxon Mobil Corp.		69,771		4,009,739
				6,212,987
PRIMARY METAL INDUSTRIES (0.99%)
Alcoa, Inc.		30,898		807,365
TOBACCO PRODUCTS (3.09%)
Altria Group, Inc.		38,965		2,519,477
TRANSPORTATION EQUIPMENT (7.98%)
Boeing Co. (The)		32,082		2,117,412
General Motors Corp.		16,700		567,800

EQUITRUST VARIABLE INSURANCE SERIES FUND
SCHEDULE OF INVESTMENTS
BLUE CHIP PORTFOLIO (continued)

	Shares Held		Value
TRANSPORTATION EQUIPMENT (7.98%) - continued
Honeywell International, Inc.		38,024	$	1,392,819
United Technologies Corp.		47,402		2,434,093
				6,512,124
Total Common Stocks (Cost $62,442,889)				75,335,719
SHORT-TERM INVESTMENTS (7.59%)
MONEY MARKET MUTUAL FUND (0.49%)
Blackrock Liquidity Funds, T-Fund Portfolio (Cost $394,873)		394,873		394,873
	Principal Amount
COMMERCIAL PAPER (1.35%)
FOOD AND KINDRED PRODUCTS (0.80%)
Coca-Cola Enterprises, due 07/07/05	$	650,000		649,672
NONDEPOSITORY INSTITUTIONS (0.55%)
General Electric Capital Corp., 3.06%, due 07/07/05		450,000		450,000
Total Commercial Paper (Cost $1,099,672)				1,099,672
UNITED STATES GOVERNMENT AGENCIES (5.75%)
Federal Home Loan Bank, due 07/21/05		3,600,000		3,593,779
Federal Home Loan Mortgage Corp., due 07/12/05		1,100,000		1,098,994
Total United States Government Agencies (Cost $4,692,773)				4,692,773
Total Short-Term Investments (Cost $6,187,318)				6,187,318
Total Investments (99.96%) (Cost $68,630,207)				81,523,037
OTHER ASSETS LESS LIABILITIES (0.04%)
Cash, receivables, prepaid expense and other assets, less liabilities				34,850
Total Net Assets (100.00%)			$	81,557,887

(1) Non-income producing securities.

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND
NOTES TO FINANCIAL STATEMENTS

June 30, 2005
(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). Shares of the Fund are sold only to certain life insurance company's 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).

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 as obtained from one or more dealers that make markets in the securities. In situations when liquidation of holdings at quoted market prices is questionable or market quotations are not readily available, investments are valued at fair value as determined in good faith by the Fund's Board of Trustees. Short-term investments are valued at market value, except that obligations maturing in 90 days 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, Strategic Yield and Money Market 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 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 differ from accounting principles generally accepted in the United States. These differences are primarily due to differing treatments for certain basis adjustments resulting from corporate reorganizations, and income and basis adjustments resulting from a taxable spin-off. 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 accounting principles generally accepted in the United States 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.

EQUITRUST VARIABLE INSURANCE SERIES FUND

NOTES TO FINANCIAL STATEMENTS (continued)

1. Significant Accounting Policies (continued)

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.

2. Federal Income Taxes

No provision for federal income taxes is considered necessary because the Fund is qualified as a "regulated investment company" under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.

As of June 30, 2005, the following Portfolios had approximate net capital loss carryforwards set forth below:

	Portfolio
Net Capital Loss Carryforwards Expire In:	Value Growth		Strategic Yield		Blue Chip
2006	$	1,491,000	$	-	$	-
2008		2,848,000		-		-
2010		-		1,689,000		1,786,000
2011		-		571,000		4,672,000
2012		-		-		556,000
2013		-		-		60,000
	$	4,339,000	$	2,260,000	$	7,074,000

During 2005, the Value Growth and Strategic Yield Portfolios utilized approximately $2,052,000 and $2,000 of capital loss carryforwards, respectively.

As of June 30, 2005, the components of accumulated earnings 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			Managed
Undistributed ordinary income	$	389,384		$	839,210
Accumulated capital gains (losses)		(4,338,914	)		1,907,785
Net unrealized appreciation of investments		6,928,965			10,021,934
Total accumulated earnings	$	2,979,435		$	12,768,929

During 2002, the Managed Portfolio held securities in a company that completed a corporate inversion. The event resulted in realized capital gains for the investment being recognized for tax but not for book purposes. As of June 30, 2005, unrealized appreciation and accumulated capital gains book and tax differences related to the corporate inversion were $31,941.

During 2004, the Value Growth Portfolio held a security that completed a taxable spin-off. The unrealized appreciation and accumulated capital gains differences were $15,626.

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

EQUITRUST VARIABLE INSURANCE SERIES FUND

NOTES TO FINANCIAL STATEMENTS (continued)

3. Management Contract and Transactions with Affiliates (continued)

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 entered into an agreement 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. There are no 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, 2005, EquiTrust Investment further agreed to reimburse any Portfolio, to the extent that annual operating expenses, including the investment advisory fee, exceed 0.65%. For the six month period ended June 30, 2005, no expense reimbursements were made to the Fund by EquiTrust Investment.

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, 2005, 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:

Portfolio	Shares
Value Growth		4,401,085
High Grade Bond		2,950,789
Strategic Yield		3,382,621
Managed		4,962,355
Money Market		5,197,113
Blue Chip		2,357,330

4. Capital Share Transactions

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

	Shares Sold				Shares Issued In Reinvestment of Dividends and Distributions				Shares Redeemed				Net Increase (Decrease)
Portfolio	Shares		Amount		Shares		Amount		Shares		Amount		Shares			Amount
Six month period ended June 30, 2005:
Value Growth		112,605	$	1,434,625		53,423	$	665,116		200,009	$	2,554,068		(33,981	)	$	(454,327	)
High Grade Bond		299,224		3,085,618		71,530		738,702		147,786		1,524,277		222,968			2,300,043
Strategic Yield		395,377		3,689,215		97,753		914,002		128,571		1,204,765		364,559			3,398,452
Managed		322,007		4,870,885		175,742		2,597,468		183,604		2,776,048		314,145			4,692,305
Money Market		20,140,611		20,140,611		50,307		50,307		19,926,678		19,926,678		264,240			264,240
Blue Chip		59,876		2,041,317		48,130		1,621,030		122,765		4,196,024		(14,759	)		(533,677	)
Year ended December 31, 2004:
Value Growth		272,309	$	3,248,659		47,356	$	563,058		314,657	$	3,757,688		5,008		$	54,029
High Grade Bond		498,678		5,149,599		124,573		1,289,118		293,329		3,040,003		329,922			3,398,714
Strategic Yield		547,463		5,049,478		181,300		1,675,145		250,424		2,315,693		478,339			4,408,930
Managed		436,280		6,407,882		94,010		1,367,844		282,774		4,163,866		247,516			3,611,860
Money Market		29,459,979		29,459,979		33,224		33,224		29,628,690		29,628,690		(135,487	)		(135,487	)
Blue Chip		174,207		5,808,441		35,399		1,194,008		166,223		5,550,599		43,383			1,451,850

EQUITRUST VARIABLE INSURANCE SERIES FUND

NOTES TO FINANCIAL STATEMENTS (continued)

5. Investment Transactions

For the six month period ended June, 30, 2005, 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	$	4,432,319	$	5,209,518
High Grade Bond		1,893,282		31,479
Strategic Yield		588,610		224,110
Managed		4,378,132		4,808,387
Blue Chip		-		-

The basis of the Fund's investments in securities and the net unrealized appreciation of investments for U.S. federal income tax purposes as of June 30, 2005, by Portfolio, was composed of the following:

	Tax Cost of Investments		Gross Unrealized				Net Unrealized Appreciation
Portfolio	in Securities		Appreciation		Depreciation		of Investments
Value Growth	$	51,694,798	$	11,647,702	$	4,718,737	$	6,928,965
High Grade Bond		31,092,937		891,079		31,507		859,572
Strategic Yield		31,952,422		1,738,707		177,905		1,560,802
Managed		68,341,469		12,291,116		2,269,182		10,021,934
Blue Chip		68,630,207		21,628,920		8,736,090		12,892,830

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.

6. Dividends and Distributions to Shareholders

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:

	Portfolio
Payable Date	High Grade Bond		Strategic Yield		Money Market
January 31, 2005	$	0.0378	$	0.0430	$	0.0014
February 28, 2005		0.0383		0.0475		0.0014
March 31, 2005		0.0395		0.0454		0.0016
April 29, 2005		0.0366		0.0412		0.0017
May 31, 2005		0.0398		0.0443		0.0020
June 30, 2005		0.0404		0.0454		0.0020
Total dividends per share	$	0.2324	$	0.2668	$	0.0101

In addition, dividends and distributions to shareholders from net investment income and net realized gain on investment transactions were paid during the six month period ended June 30, 2005 for the following Portfolios:

Ordinary Income Dividends:

Portfolio

Declaration
Date

Record
Date

Payable
Date

Amount
Per Share

Value Growth

1/19/05

1/20/05

0.1482

Managed

1/19/05

1/20/05

0.2711

Blue Chip

1/19/05

1/20/05

0.6730

EQUITRUST VARIABLE INSURANCE SERIES FUND

NOTES TO FINANCIAL STATEMENTS (continued)

6. Dividends and Distributions to Shareholders (continued)

Capital Gains Distributions:

Portfolio

Declaration
Date

Record
Date

Payable
Date

Amount
Per Share

High Grade Bond

1/19/05

1/20/05

0.0151

Managed

1/19/05

1/20/05

0.2715

The federal income tax character of dividends and distributions to shareholders during 2005 and 2004 was the same for financial reporting purposes.

EQUITRUST VARIABLE INSURANCE SERIES FUND

FINANCIAL HIGHLIGHTS

Period ended June 30, 2005 (Unaudited) and
Years Ended December 31, 2004, 2003, 2002, 2001 and 2000

	Value Growth Portfolio																		High Grade Bond Portfolio
	2005			2004			2003			2002			2001			2000			2005			2004			2003			2002			2001			2000
Net asset value, beginning of period	$	12.98		$	11.76		$	9.14		$	10.39		$	9.92		$	8.69		$	10.38		$	10.42		$	10.39		$	10.08		$	9.82		$	9.49
Income From Investment Operations
Net investment income		0.09			0.15			0.12			0.14			0.18			0.22			0.23			0.45			0.47			0.50			0.62			0.67
Net gains (losses) on securities (both realized and unrealized)		0.27			1.20			2.64			(1.20	)		0.50			1.20			-			-			0.08			0.32			0.26			0.34
Total from investment operations		0.36			1.35			2.76			(1.06	)		0.68			1.42			0.23			0.45			0.55			0.82			0.88			1.01
Less Distributions
Dividends (from net investment income)		(0.15	)		(0.13	)		(0.14	)		(0.19	)		(0.21	)		(0.19	)		(0.23	)		(0.45	)		(0.47	)		(0.50	)		(0.62	)		(0.67	)
Distributions (from capital gains)		-			-			-			-			-			-			(0.02	)		(0.04	)		(0.05	)		(0.01	)		-			(0.01	)
Total distributions		(0.15	)		(0.13	)		(0.14	)		(0.19	)		(0.21	)		(0.19	)		(0.25	)		(0.49	)		(0.52	)		(0.51	)		(0.62	)		(0.68	)
Net asset value, end of period	$	13.19		$	12.98		$	11.76		$	9.14		$	10.39		$	9.92		$	10.36		$	10.38		$	10.42		$	10.39		$	10.08		$	9.82
Total Return:
Total investment return based on net asset value (1)		2.83	%		11.53	%		30.68	%		(10.43	)%		6.98	%		16.71	%		2.22	%		4.30	%		5.43	%		8.37	%		9.10	%		11.14	%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)	$	58,818		$	58,354		$	52,812		$	40,953		$	45,522		$	40,173		$	32,228		$	29,980		$	26,659		$	24,984		$	18,908		$	13,934
Ratio of total expenses to average net assets		0.58	%(2)		0.58	%		0.63	%		0.59	%		0.57	%		0.57	%		0.45	%(2)		0.45	%		0.49	%		0.46	%		0.45	%		0.45	%
Ratio of net expenses to average net assets		0.58	%(2)		0.58	%		0.63	%		0.59	%		0.57	%		0.56	%		0.45	%(2)		0.45	%		0.49	%		0.46	%		0.45	%		0.45	%
Ratio of net investment income to average net assets		1.36	%(2)		1.22	%		1.26	%		1.46	%		1.89	%		2.34	%		4.53	%(2)		4.34	%		4.51	%		4.92	%		6.10	%		7.03	%
Portfolio turnover rate		9	%(3)		17	%		17	%		15	%		40	%		78	%		6	%(3)		26	%		28	%		22	%		17	%		7	%

	Strategic Yield Portfolio
	2005			2004			2003			2002			2001			2000
Net asset value, beginning of period	$	9.37		$	9.13		$	8.75		$	8.90		$	8.82		$	9.30
Income From Investment Operations
Net investment income		0.27			0.55			0.63			0.62			0.73			0.75
Net gains (losses) on securities (both realized and unrealized)		-			0.24			0.38			(0.15	)		0.08			(0.48	)
Total from investment operations		0.27			0.79			1.01			0.47			0.81			0.27
Less Distributions
Dividends (from net investment income)		(0.27	)		(0.55	)		(0.63	)		(0.62	)		(0.73	)		(0.75	)
Distributions (from capital gains)		-			-			-			-			-			-
Total distributions		(0.27	)		(0.55	)		(0.63	)		(0.62	)		(0.73	)		(0.75	)
Net asset value, end of period	$	9.37		$	9.37		$	9.13		$	8.75		$	8.90		$	8.82
Total Return:
Total investment return based on net asset value (1)		2.89	%		8.94	%		11.97	%		5.43	%		9.22	%		3.05	%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)	$	34,081		$	30,637		$	25,498		$	22,395		$	20,182		$	16,410
Ratio of total expenses to average net assets		0.59	%(2)		0.59	%		0.65	%		0.61	%		0.59	%		0.59	%
Ratio of net expenses to average net assets		0.59	%(2)		0.59	%		0.65	%		0.61	%		0.59	%		0.58	%
Ratio of net investment income to average net assets		5.74	%(2)		5.98	%		7.07	%		7.04	%		7.93	%		8.30	%
Portfolio turnover rate		1	%(3)		34	%		32	%		34	%		33	%		3	%

Note: Per share amounts have been calculated on the basis of monthly per share amounts (using average monthly outstanding shares) accumulated for the period.

(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) Computed on an annualized basis.

(3) Not annualized.

See accompanying notes.

EQUITRUST VARIABLE INSURANCE SERIES FUND

FINANCIAL HIGHLIGHTS (continued)

	Managed Portfolio																		Money Market Portfolio
	2005			2004			2003			2002			2001			2000			2005			2004			2003			2002			2001			2000
Net asset value, beginning of period	$	15.67		$	14.73		$	12.34		$	13.00		$	12.58		$	10.54		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income From Investment Operations
Net investment income		0.16			0.27			0.30			0.34			0.44			0.59			0.01			0.01			0.01			0.01			0.03			0.06
Net gains (losses) on securities (both realized and unrealized)		0.15			0.97			2.43			(0.57	)		0.55			2.11			-			-			-			-			-			-
Total from investment operations		0.31			1.24			2.73			(0.23	)		0.99			2.70			0.01			0.01			0.01			0.01			0.03			0.06
Less Distributions
Dividends (from net investment income)		(0.27	)		(0.30	)		(0.34	)		(0.43	)		(0.57	)		(0.66	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.03	)		(0.06	)
Distributions (from capital gains)		(0.27	)		-			-			-			-			-			-			-			-			-			-			-
Total distributions		(0.54	)		(0.30	)		(0.34	)		(0.43	)		(0.57	)		(0.66	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)		(0.03	)		(0.06	)
Net asset value, end of period	$	15.44		$	15.67		$	14.73		$	12.34		$	13.00		$	12.58		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return:
Total investment return based on net asset value (1)		2.15	%		8.58	%		22.72	%		(1.80	)%		8.12	%		27.39	%		1.01	%		0.74	%		0.52	%		1.16	%		3.51	%		5.85	%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)	$	78,642		$	74,876		$	66,733		$	54,428		$	53,795		$	48,012		$	6,856		$	6,592		$	6,728		$	8,150		$	9,320		$	7,233
Ratio of total expenses to average net assets		0.56	%(2)		0.56	%		0.62	%		0.58	%		0.56	%		0.56	%		0.57	%(2)		0.56	%		0.59	%		0.52	%		0.50	%		0.50	%
Ratio of net expenses to average net assets		0.56	%(2)		0.56	%		0.62	%		0.58	%		0.56	%		0.55	%		0.57	%(2)		0.56	%		0.59	%		0.52	%		0.48	%		0.48	%
Ratio of net investment income to average net assets		2.24	%(2)		1.87	%		2.35	%		2.73	%		3.47	%		4.96	%		2.03	%(2)		0.72	%		0.53	%		1.16	%		3.41	%		5.74	%
Portfolio turnover rate		9	%(3)		26	%		24	%		18	%		40	%		85	%		-	%(3)		-	%		-	%		-	%		-	%		-	%

	Blue Chip Portfolio
	2005			2004			2003			2002			2001			2000
Net asset value, beginning of period	$	35.17		$	33.65		$	27.22		$	34.14		$	39.29		$	43.98
Income From Investment Operations
Net investment income		0.33			0.67			0.50			0.46			0.50			0.56
Net gains (losses) on securities (both realized and unrealized)		(0.86	)		1.35			6.38			(6.88	)		(4.83	)		(4.26	)
Total from investment operations		(0.53	)		2.02			6.88			(6.42	)		(4.33	)		(3.70	)
Less Distributions
Dividends (from net investment income)		(0.67	)		(0.50	)		(0.45	)		(0.50	)		(0.56	)		(0.53	)
Distributions (from capital gains)		-			-			-			-			(0.26	)		(0.46	)
Total distributions		(0.67	)		(0.50	)		(0.45	)		(0.50	)		(0.82	)		(0.99	)
Net asset value, end of period	$	33.97		$	35.17		$	33.65		$	27.22		$	34.14		$	39.29
Total Return:
Total investment return based on net asset value (1)		(1.48	)%		6.07	%		25.70	%		(19.07	)%		(11.28	)%		(8.52	)%
Ratios/Supplemental Data:
Net assets, end of period (000's omitted)	$	81,558		$	84,960		$	79,832		$	63,699		$	79,124		$	87,118
Ratio of total expenses to average net assets		0.31	%(2)		0.30	%		0.36	%		0.31	%		0.28	%		0.27	%
Ratio of net expenses to average net assets		0.31	%(2)		0.30	%		0.36	%		0.31	%		0.28	%		0.27	%
Ratio of net investment income to average net assets		1.91	%(2)		2.00	%		1.72	%		1.50	%		1.42	%		1.39	%
Portfolio turnover rate		-	%(3)		1	%		17	%		-	%		-	%		13	%

Note: Per share amounts have been calculated on the basis of monthly per share amounts (using average monthly outstanding shares) accumulated for the period.

(2) Computed on an annualized basis.

(3) Not annualized.

See accompanying notes.

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 Investment 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, 2005 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://www.sec.gov or may be reviewed and copied 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.

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.

On November 18, 2004, the registrant adopted procedures by which shareholders may recommend nominees to the registrant’s board of trustees. Those procedures specify that shareholders may recommend candidates for board positions by forwarding their correspondence by U.S. mail or courier service to the registrant’s secretary to the attention of the Chairman of the Nominating Committee. Suggestions for candidates for specific positions must be received by such date as established by the Nominating Committee.

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/ Dennis M. Marker
	Name:		Dennis M. Marker
	Title:	Chief Executive Officer
	Date:	8/19/05

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/ Dennis M. Marker
	Name:		Dennis M. Marker
	Title:	Chief Executive Officer
	Date:	8/19/05


By:	/s/ James W. Noyce
	Name:		James W. Noyce
	Title:	Chief Financial Officer
	Date:	8/18/05