BlackRock Variable Series Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number:811-03290

Name of Fund: BlackRock Variable Series Funds, Inc.

BlackRock 60/40 Target Allocation ETF V.I. Fund (Formerly iShares Dynamic Allocation V.I. Fund)

BlackRock Advantage Large Cap Core V.I. Fund

BlackRock Advantage Large Cap Value V.I. Fund

BlackRock Advantage U.S. Total Market V.I. Fund

BlackRock Basic Value V.I. Fund

BlackRock Capital Appreciation V.I. Fund

BlackRock Equity Dividend V.I. Fund

BlackRock Global Allocation V.I. Fund

BlackRock Government Money Market V.I. Fund

BlackRock International V.I. Fund

BlackRock International Index V.I. Fund

BlackRock Large Cap Focus Growth V.I. Fund

BlackRock Managed Volatility V.I. Fund

BlackRock S&P 500 Index V.I. Fund

BlackRock Small Cap Index V.I. Fund

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Variable Series Funds, Inc., 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800)441-7762

Date of fiscal year end: 12/31/2019

Date of reporting period: 06/30/2019

Item 1 – Report to Stockholders

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

Not FDIC Insured • May Lose Value • No  Bank Guarantee

The Markets in Review

Dear Shareholder,

Investment performance in the 12 months ended June 30, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as restrained inflation and weak economic growth led the U.S. Federal Reserve (the “Fed”) to stop raising interest rates, which led to broad-based optimism that stimulative monetary policy could help forestall a recession.

After the dust settled, the U.S. equity and bond markets posted mixed returns while weathering significant volatility. Less volatile U.S. large cap equities and U.S. bonds advanced, while equities at the high end of the risk spectrum — emerging markets, international developed, and U.S. small cap — posted relatively flat returns.

Fixed-income securities delivered modest positive returns with relatively low volatility. Short-term U.S. Treasury yields rose, while longer-term yields declined. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment grade and high yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil. These risks manifested in a broad-basedsell-off in December, leading to the worst December performance on record since 1931.

Volatility also rose in emerging markets, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, particularly in mainland China, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to modest performance for European equities.

As equity performance faltered and global economic growth slowed, the Fed shifted to a more patient perspective on the economy in January 2019. In its last four meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Similarly, the European Central Bank signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world. Hopes continued to remain high thereafter, as the current economic expansion became the longest in U.S. history. Looking ahead, markets are pricing in three interest rate cuts by the Fed over the next year, as investors anticipate a steady shift toward more stimulative monetary policy.

We expect a slowing expansion with additional room to run, as opposed to an economic recession. However, escalating trade tensions and the resulting disruptions in global supply chains have become the greatest risk to the global expansion.

We believe U.S. and emerging market equities remain relatively attractive. Within U.S. equities, companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off. For bonds, U.S. Treasuries are likely to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visitblackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of June 30, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500®Index)	18.54%	10.42%
U.S. small cap equities (Russell 2000®Index)	16.98	(3.31)
International equities (MSCI Europe, Australasia, Far East Index)	14.03	1.08
Emerging market equities (MSCI Emerging Markets Index)	10.58	1.21
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.24	2.31
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	7.45	10.38
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	6.11	7.87
Tax-exempt municipal bonds (S&P Municipal Bond Index)	4.94	6.39
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	9.94	7.48
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGEISNOT PARTOF YOUR FUND REPORT

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock 60/40 Target Allocation ETF V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019  BlackRock 60/40 Target Allocation ETF V.I. Fund

Investment Objective

BlackRock 60/40 Target Allocation ETF V.I. Fund’s (the “Fund”) investment objective is to seek to provide total return.

On April 17, 2019, the Fund’s Board approved a proposal to change the name of BlackRock iShares^® Dynamic Allocation V.I. Fund to BlackRock 60/40 Target Allocation ETF V.I. Fund. The Board also approved certain changes to the Fund’s investment strategies. These changes were effective on May 1, 2019.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund outperformed its blended benchmark (60% MSCI All Country World Index/40% Bloomberg Barclays U.S. Aggregate Bond Index).

What factors influenced performance?

The largest contributions to Fund performance came from the iShares Core S&P 500 ETF and the iShares Global Tech ETF.

There were no detractors from performance during the period.

Describe recent portfolio activity.

During thesix-month period, the Fund increased exposure to U.S. and emerging market stocks, as well as U.S. government bonds. Allocations to U.S. corporate bonds and global technology stocks were trimmed to help reduce overall portfolio risk.

Describe portfolio positioning at period end.

At period end, the Fund remained overweight in both equity and credit. Within equity, the Fund was underweight to international stocks in favor of U.S. stocks. The Fund also maintained a short duration bias in an effort to mitigate interest rate risk.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Affiliated Investment Companies
Equity Funds		42	%
Short-Term Securities		31
Fixed Income Funds		27

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock 60/40 Target Allocation ETF V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year			5 Years			Since       Inception (b)
Class I(c)(d)		13.37	%		7.77	%		4.60	%		4.99	%
Class III(c)(d)		13.33			7.46			4.35			4.73
60% MSCI All Country World Index / 40% Bloomberg Barclays U.S. Aggregate Bond Index(e)		12.27			6.96			5.05			5.47
MSCI All Country World Index(f)		16.23			5.74			6.16			6.77
Bloomberg Barclays U.S. Aggregate Bond Index(g)		6.11			7.87			2.95			3.09

^(a)  For the portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  The Fund commenced operations on April 30, 2014.

^(c)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns. The Fund’s total returns prior to May 1, 2019 are the returns of the Fund when it followed different investment strategies under the name BlackRock iShares^® Dynamic Allocation V.I. Fund.

^(d)  The Fund invests in a portfolio of underlying exchange-traded funds that seek to track equity and fixed income indices.

^(e)  A customized weighted index comprised of 60% MSCI All Country World Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index.

^(f)  A free float-adjusted market capitalization weighted index, that is designed to measure the equity market performance of developed and emerging markets. The index consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes.

^(g)  A widely recognized unmanaged market-weighted index comprised of investment-grade corporate bonds rated BBB or better, mortgages and U.S. Treasury and U.S. Government agency issues with at least one year to maturity.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,133.70	$	1.01	$	1,000.00	$	1,023.85	$	0.95		0.19	%
Class III		1,000.00		1,133.30		2.33		1,000.00		1,022.61		2.21		0.44

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited)  June 30, 2019 BlackRock 60/40 Target Allocation ETF V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Affiliated Investment Companies — 144.1%*
Equity Funds — 60.8%
iShares Core MSCI EAFE ETF		198,648	$	12,196,987
iShares Core MSCI Emerging Markets ETF(a)		149,546		7,692,646
iShares Core S&P 500 ETF(a)		143,462		42,285,425
iShares Core S&P Total U.S. Stock Market ETF(a)		100,197		6,676,126
iShares Edge MSCI Minimum Volatility USA ETF(a)		93,993		5,802,188
iShares Edge MSCI USA Momentum Factor ETF(a)		39,335		4,665,131
iShares Global Tech ETF		33,086		5,939,930
				85,258,433
Fixed Income Funds — 39.1%(a)
iShares iBoxx $ Investment Grade Corporate Bond ETF		59,783		7,435,212
iShares Intermediate-Term Corporate Bond ETF		173,672		9,890,620

Security	Shares		Value
Fixed Income Funds (continued)
iShares MBS ETF		50,461	$	5,429,604
iShares Short Maturity Bond ETF		223,283		11,237,833
iShares U.S. Treasury Bond ETF		806,745		20,826,122
				54,819,391
Short-Term Securities — 44.2%(b)
BlackRock Liquidity Funds,T-Fund, Institutional Class,   2.26%		747,319		747,319
SL Liquidity Series, LLC, Money Market Series,   2.55%(c)		61,210,753		61,229,117
				61,976,436
Total Affiliated Investment Companies — 144.1% (Cost: $196,957,683)				202,054,260
Liabilities in Excess of Other Assets — (44.1)%				(61,841,113	)
Net Assets — 100.0%			$	140,213,147

^(a)  Security, or a portion of the security, is on loan.

^(b)  Annualized7-day yield as of period end.

^(c)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 12/31/18		Shares Purchased			Shares Sold			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		272,513		474,806	(b)		—			747,319	$	747,319	$	2,784		$	—		$	—
SL Liquidity Series, LLC, Money Market Series		26,024,369		35,186,384	(b)		—			61,210,753		61,229,117		89,717	(c)		9,460			846
iShares Core MSCI EAFE ETF		190,016		12,825			(4,193	)		198,648		12,196,987		231,448			(31,518	)		1,251,520
iShares Core MSCI Emerging Markets ETF		81,513		69,833			(1,800	)		149,546		7,692,646		72,202			(2,939	)		248,679
iShares Core S&P 500 ETF		109,639		58,823			(25,000	)		143,462		42,285,425		431,456			907,556			5,396,198
iShares Core S&PMid-Cap ETF(d)		20,257		—			(20,257	)		—		—		—			(393,797	)		598,364
iShares Core S&PSmall-Cap ETF(d)		31,125		100			(31,225	)		—		—		7,992			(100,498	)		377,750
iShares Core S&P Total U.S. Stock Market ETF		—		100,397			(200	)		100,197		6,676,126		35,068			49			121,596
iShares Edge MSCI Minimum Volatility USA ETF		91,341		4,635			(1,983	)		93,993		5,802,188		51,467			19,314			830,795
iShares Edge MSCI USA Momentum Factor ETF		78,970		1,737			(41,372	)		39,335		4,665,131		35,637			(385,209	)		1,238,559
iShares Global Tech ETF		45,208		4,739			(16,861	)		33,086		5,939,930		35,403			51,216			1,578,027
iShares iBoxx $ Investment Grade Corporate Bond ETF		105,522		2,361			(48,100	)		59,783		7,435,212		125,661			34,189			777,806
iShares Intermediate-Term Corporate Bond ETF		175,713		7,103			(9,144	)		173,672		9,890,620		146,170			(388	)		771,946
iShares J.P. Morgan USD Emerging Markets Bond ETF(d)		62,919		100			(63,019	)		—		—		81,578			167,891			191,941
iShares MBS ETF		—		50,561			(100	)		50,461		5,429,604		25,788			8			84,800
iShares S&P 500 Growth ETF(d)		14,822		—			(14,822	)		—		—		—			(202,451	)		297,392
iShares S&P 500 Value ETF(d)		22,800		—			(22,800	)		—		—		—			(228,815	)		320,077
iShares Short Maturity Bond ETF		370,419		9,564			(156,700	)		223,283		11,237,833		157,205			(10,094	)		143,960
iShares U.S. Treasury Bond ETF		164,381		651,364			(9,000	)		806,745		20,826,122		122,905			4,000			723,481
											$	202,054,260	$	1,652,481		$	(162,026	)	$	14,953,737

CONSOLIDATED SCHEDULE OF INVESTMENTS 5

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock 60/40 Target Allocation ETF V.I. Fund

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents net shares purchased.

^(c)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

^(d)  No longer held by the Fund as of period end.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Affiliated Investment Companies	$	140,077,824	$	—	$	—	$	140,077,824
Short-Term Securities		747,319		—		—		747,319
Subtotal	$	140,825,143	$	—	$	—	$	140,825,143
Investments valued at NAV(a)								61,229,117
Total Investments							$	202,054,260

^(a)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to consolidated financial statements.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Statement of Assets and Liabilities

June 30, 2019

	BlackRock   60/40 Target   Allocation ETF   V.I. Fund
ASSETS
Investments at value — affiliated (including securities loaned at value of $60,201,366) (cost — $196,957,683)	$	202,054,260
Receivables:
Securities lending income — affiliated		5,253
Capital shares sold		11,163
Dividends — affiliated		658
Prepaid expenses		1,103
Other assets		48,236
Total assets		202,120,673
LIABILITIES
Cash collateral on securities loaned at value		61,224,483
Payables:
Investments purchased		469,338
Capital shares redeemed		50,687
Distribution fees		1,144
Investment advisory fees		5,359
Directors’ and Officer’s fees		5,114
Transfer agent fees		103,659
Other accrued expenses		47,742
Total liabilities		61,907,526
NET ASSETS	$	140,213,147
NET ASSETS CONSIST OF
Paid-in capital	$	133,569,590
Accumulated earnings		6,643,557
NET ASSETS	$	140,213,147
NET ASSET VALUE
Class I— Based on net assets of $134,165,791 and 11,462,354 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.70
Class III— Based on net assets of $6,047,356 and 518,924 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.65

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS 7

Consolidated Statement of Operations

Six Months Ended June 30, 2019

	BlackRock   60/40 Target   Allocation ETF   V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	1,562,764
Securities lending income — affiliated — net		89,717
Total investment income		1,652,481
EXPENSES
Transfer agent — class specific		135,357
Investment advisory		97,314
Professional		37,338
Accounting services		31,458
Printing		7,962
Directors and Officer		7,041
Custodian		6,410
Distribution — class specific		5,915
Transfer agent		2,348
Board realignment and consolidation		181
Registration		133
Miscellaneous		2,867
Total expenses		334,324
Less:
Fees waived and/or reimbursed by the Manager		(69,631	)
Transfer agent fees waived and/or reimbursed — class specific		(135,256	)
Total expenses after fees waived and/or reimbursed		129,437
Net investment income		1,523,044
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized loss from investments — affiliated		(162,026	)
Net change in unrealized appreciation on investments — affiliated		14,953,737
Net realized and unrealized gain		14,791,711
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	16,314,755

See notes to consolidated financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Statements of Changes in Net Assets

	BlackRock 60/40 Target Allocation ETF V.I. Fund
	Six Months Ended 06/30/19 (unaudited)	Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$        1,523,044	$        1,375,200
Net realized gain (loss)	(162,026)	2,333,615
Net change in unrealized appreciation (depreciation)	14,953,737	(7,741,844)
Net increase (decrease) in net assets resulting from operations	16,314,755	(4,033,029)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I	—	(2,881,352)
Class III	—	(93,658)
Decrease in net assets resulting from distributions to shareholders	—	(2,975,010)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions	2,215,383	99,743,994
NET ASSETS
Total increase in net assets	18,530,138	92,735,955
Beginning of period	121,683,009	28,947,054
End of period	$    140,213,147	$    121,683,009

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS 9

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	BlackRock 60/40 Target Allocation ETF V.I. Fund
	Class I
	Six Months Ended		Year Ended December 31,												Period from
	06/30/19 (unaudited)		2018			2017			2016			2015			04/30/14 (a) to 12/31/14
Net asset value, beginning of period	$	10.32	$	11.13		$	9.85		$	9.45		$	10.02		$	10.00
Net investment income(b)		0.13		0.33			0.23			0.22			0.24			0.20
Net realized and unrealized gain (loss)		1.25		(0.88	)		1.26			0.39			(0.63	)		(0.07)
Net increase (decrease) from investment operations		1.38		(0.55	)		1.49			0.61			(0.39	)		0.13
Distributions(c)
From net investment income		—		(0.11	)		(0.20	)		(0.20	)		(0.17	)		(0.10)
From net realized gain		—		(0.15	)		—			—			—			(0.01)
From return of capital		—		—			(0.01	)		(0.01	)		(0.01	)		—
Total distributions		—		(0.26	)		(0.21	)		(0.21	)		(0.18	)		(0.11)
Net asset value, end of period	$	11.70	$	10.32		$	11.13		$	9.85		$	9.45		$	10.02
Total Return(d)
Based on net asset value		13.37%(e)		(4.94)%			15.11%			6.49%			(3.88)%			1.27%(e)
Ratios to Average Net Assets(f)
Total expenses		0.51%(g)		1.00%(h)			0.94%			0.83%			1.90%			6.47%(g)(i)
Total expenses after fees waived and/or reimbursed		0.19%(g)		0.37%(h)			0.53%			0.53%			0.64%			0.75%(g)
Net investment income		2.35%(g)		3.01%			2.14%			2.27%			2.41%			2.85%(g)
Supplemental Data
Net assets, end of period (000)	$	134,166	$	117,502		$	25,332		$	18,135		$	14,636		$	6,092
Portfolio turnover rate		36%		54%			48%			54%			54%			25%

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended			Year Ended December 31,												Period from
	06/30/19 (unaudited)			2018			2017			2016			2015			04/30/14 (a) to 12/31/14
Investments in underlying funds		0.14	%		0.20	%		0.21	%		0.23	%		0.29	%		0.27	%

^(g)  Annualized.

^(h)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.76% and 0.37%, respectively.

⁽ⁱ⁾  Organization and/or offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses for Class I would have been 7.00%.

See notes to consolidated financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock 60/40 Target Allocation ETF V.I. Fund
	Class III
	Six Months Ended		Year Ended December 31,													Period from
	06/30/19 (unaudited)		2018				2017			2016			2015			04/30/14 (a) to 12/31/14
Net asset value, beginning of period	$	10.28	$	11.09			$	9.83		$	9.44		$	10.01		$	10.00
Net investment income(b)		0.12		0.20				0.21			0.21			0.26			0.17
Net realized and unrealized gain (loss)		1.25		(0.77	)	��		1.24			0.37			(0.66	)		(0.06)
Net increase (decrease) from investment operations		1.37		(0.57	)			1.45			0.58			(0.40	)		0.11
Distributions(c)
From net investment income		—		(0.09	)			(0.18	)		(0.18	)		(0.16	)		(0.09)
From net realized gain		—		(0.15	)			—			—			—			(0.01)
From return of capital		—		—				(0.01	)		(0.01	)		(0.01	)		—
Total distributions		—		(0.24	)			(0.19	)		(0.19	)		(0.17	)		(0.10)
Net asset value, end of period	$	11.65	$	10.28			$	11.09		$	9.83		$	9.44		$	10.01
Total Return(d)
Based on net asset value		13.33%(e)		(5.18)%				14.72%			6.16%			(3.99)%			1.05%(e)
Ratios to Average Net Assets(f)
Total expenses		0.76%(g)		1.38%(h)				1.25%			1.02%			1.87%			8.32%(g)(i)
Total expenses after fees waived and/or reimbursed		0.44%(g)		0.72%(h)				0.78%			0.78%			0.86%			1.00%(g)
Net investment income		2.25%(g)		1.83%				1.97%			2.08%			2.56%			2.54%(g)
Supplemental Data
Net assets, end of period (000)	$	6,047	$	4,181			$	3,615		$	1,804		$	1,174		$	20
Portfolio turnover rate		36%		54%				48%			54%			54%			25%

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended			Year Ended December 31,												Period from
	06/30/19 (unaudited)			2018			2017			2016			2015			04/30/14 (a) to 12/31/14
Investments in underlying funds		0.14	%		0.20	%		0.21	%		0.23	%		0.29	%		0.27	%

^(g)  Annualized.

^(h)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.14% and 0.72%, respectively.

⁽ⁱ⁾  Organization and/or offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses for Class III would have been 9.13%.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS 11

Notes to Consolidated Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The consolidated financial statements presented are for BlackRock 60/40 Target Allocation ETF V.I. Fund (the “Fund”) (formerly known as BlackRock iShares^® Dynamic Allocation V.I. Fund). The Fund is classified as diversified. Class I and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganization: The Board and the Board of Trustees of State Farm Variable Product Trust and shareholders of Stock and Bond Balanced Fund (the “Target Fund”) approved the reorganization of the Target Fund into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the Target Fund in exchange for an equal aggregate value of newly-issued Class I Shares of the Fund.

Each shareholder of the Target Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on October 26, 2018.

The reorganization was accomplished by atax-free exchange of shares of the Fund in the following amounts and at the following conversion ratio:

Target Fund’s Share Class	Shares Prior to Reorganization		Conversion Ratio		60/40 Target Allocation ETF V.I. Fund Share Class		Shares of 60/40   Target Allocation ETF   V.I. Fund
State Farm Stock and Bond Balanced Fund		9,171,251		0.94097697		Class I		8,629,936

The Target Fund’s net assets and composition of net assets on October 26, 2018, the valuation date of the reorganization were as follows:

Target Fund	Net Assets		Paid-In Capital		Accumulated Loss
State Farm Stock and Bond Balanced Fund		$93,649,853		$98,897,788		$(5,247,935)

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the acquisition were $32,398,241. The aggregate net assets of the Fund immediately after the acquisition amounted to $126,048,094. The Target Fund’s fair value and cost of investments prior to the reorganization were as follows:

Target Fund	Fair Value of Investments		Cost of Investments
State Farm Stock and Bond Balanced Fund	$	93,059,358	$	98,307,293

The purpose of the transaction was to combine the assets of the Target Fund with the assets of the Fund. The reorganization was atax-free event and was effective on October 29, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $2,113,145

• Net realized and change in unrealized loss on investments: $(6,224,912)

• Net decrease in net assets resulting from operations: $(4,111,767)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Consolidated Statement of Operations since October 29, 2018.

Reorganization costs incurred by the Fund in connection with the reorganization were expensed by the Fund. The Manager reimbursed the Fund $116,751, which is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations.

Basis of Consolidation: The accompanying consolidated financial statements of the Fund include the accounts of iShares^® Dynamic Allocation V.I. Fund (Cayman) (the “Subsidiary”), which is a wholly-owned subsidiary of the Fund and primarily invests in commodity-related instruments. The Subsidiary enables the Fund to hold these commodity-related instruments and satisfy regulated investment company tax requirements. The Fund may invest up to 25% of its total assets in the Subsidiary. The net assets of the Subsidiary as of period end were $0, which is 0.0% of the Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Subsidiary is subject to the same investment policies and restrictions that apply to the Fund, except that the Subsidiary may invest without limitation in commodity-related instruments.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

2. SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the consolidated financial statements, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in consolidated net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s ordinary income and/or capital gains for that year.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the consolidated financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Exchange-traded funds (“ETFs”) traded on a recognized securities exchange are valued at the official closing price each day, if available. For ETFs traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. ETFs traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for consolidated financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 13

Notes to Consolidated Financial Statements  (unaudited) (continued)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as investment companies in the Fund’s Consolidated Schedule of Investments, and the value of any related collateral are shown separately in the Consolidated Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Consolidated Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

	Securities		Cash Collateral
Counterparty		Loaned at Value		Received	(a)		Net Amount
Citigroup Global Markets, Inc.	$	35,470,093	$	(35,470,093)		$	—
Credit Suisse Securities (USA) LLC		7,152,085		(7,152,085)			—
Deutsche Bank Securities, Inc.		289,128		(289,128)			—
Goldman Sachs & Co.		236,624		(236,624)			—
JP Morgan Securities LLC		17,053,436		(17,053,436)			—
	$	60,201,366	$	(60,201,366)		$	—

^(a)  Cash collateral with a value of $ 61,224,483 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment    Advisory Fees
First $1 Billion		0.150%
$1 Billion — $3 Billion		0.140
$3 Billion — $5 Billion		0.135
Greater than $5 Billion		0.130

The Manager provides investment management and other services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing investment management or administrative services. However, the Fund pays the Manager based on the Fund’s net assets, which includes the assets of the Subsidiary.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $5,915.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Consolidated Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	130,400
Class III		4,957
	$	135,357

Expense Limitations, Waivers, Reimbursements, and Recoupments: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations. For the six months ended June 30, 2019, the amount waived was $89.

In addition, the Manager has contractually agreed to waive the management fee on assets estimated to be attributable to the Fund’s investments in other equity and fixed-income mutual funds managed by BlackRock or its affiliates through April 30, 2021, if any. For six months ended June 30, 2019, there were no fees waived by the manager.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $403 for certain accounting services, which is included in accounting services in the Consolidated Statement of Operations.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	0.19%
Class III	0.44

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived and/or reimbursed $69,542, which is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Consolidated Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 15

Notes to Consolidated Financial Statements  (unaudited) (continued)

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$      130,303
Class III		4,953
		$      135,256

With respect to the contractual expense limitation, if during the Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to any voluntary waivers that may be in effect from time to time.

As of June 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring December 31,
	2019		2020		2021
Fund Level	$	79,451	$	86,844	$	69,542
Class I		25,064		90,389		130,303
Class III		3,305		8,320		4,953

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Consolidated Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $19,905 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Consolidated Statement of Operations.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, and excluding short-term securities, were $50,633,807 and $46,662,459, respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s consolidated financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	197,044,253
Gross unrealized appreciation	$	5,398,939
Gross unrealized depreciation		(388,932)
Net unrealized appreciation	$	5,010,007

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Consolidated Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Consolidated Statement of Assets and Liabilities, less any collateral held by the Fund.

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 17

Notes to Consolidated Financial Statements  (unaudited) (continued)

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		666,454		$	7,555,266			766,813		$	8,557,354
Shares issued in reinvestment of distributions		—			—			279,201			2,881,352
Shares issued in reorganization		—			—			8,629,936			93,649,853
Shares redeemed		(593,720	)		(6,606,157	)		(563,155	)		(6,224,356)
Net increase		72,734		$	949,109			9,112,795		$	98,864,203
Class III
Shares sold		177,553		$	2,000,544			173,313		$	1,932,140
Shares issued in reinvestment of distributions		—			—			9,111			93,658
Shares redeemed		(65,168	)		(734,270	)		(101,732	)		(1,146,007)
Net increase		112,385		$	1,266,274			80,692		$	879,791
Total Net Increase		185,119		$	2,215,383			9,193,487		$	99,743,994

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the consolidated financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the consolidated financial statements.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report  

Currency
USD	United States Dollar
Portfolio Abbreviations
EAFE	Europe, Australasia and Far East
ETF	Exchange-Traded Fund
MSCI	Morgan Stanley Capital International
S&P	S&P Global Ratings

GLOSSARYOF TERMS USEDINTHIS REPORT 19

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Advantage Large Cap Core V.I. Fund

Not FDIC Insured - May Lose Value - No Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund

Investment Objective

BlackRock Advantage Large Cap Core V.I. Fund’s (the “Fund”) investment objective is to seek high total investment return.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Russell 1000^® Index.

What factors influenced performance?

Following several months of strong relative performance, the Fund gave back in June much of the excess return relative to the benchmark that it had generated in prior months. June was characterized by a sharp market rebound and a continuously changing environment in which investors sporadically and aggressively sought more risky cyclical exposure. Despite a strongsix-month period overall, several trend-based insights acted as a drag on relative performance during the month. However, over thesix-month period, it was primarily the portfolio’s fundamental value insights that hindered relative Fund returns. More traditional value metrics were particularly weak, reflecting investors’ continued preference for high-growth opportunities over more value-oriented areas of the market. While the portfolio’s fundamental quality insights were broadly additive, certain measures of operating and asset efficiency detracted from relative performance. Given the continued decline in U.S. interest rates, a quality and risk management signal positioning against companies with higher degrees of leverage also detracted. Lastly, among the portfolio’s macro thematic insights, a signal that measures sensitivity to changes in foreign exchange rates was challenged given the heightened volatility across currency markets.

Despite periods of volatility, including a market drawdown in May, stronger-than-expected corporate earnings, an overall easing of global trade tensions and increasingly dovish central bank rhetoric supported the market throughout the first half of the year. At the portfolio level, sentiment- and trend-based stock selection insights drove positive relative performance in the period, especially in the consumer staples and real estate sectors. Among this group of insights, a machine learned signal conducting text-analysis of management conference calls to identify longer-term trends in company fundamentals was particularly additive. An alternative trend-based insight that evaluates the tightness of every industry’s labor market as an indication of each company’s availability and cost of labor was also beneficial. While the portfolio’s fundamental insights detracted in aggregate, there were certain bright spots among the Fund’s quality signals, especially among alternative measures of quality. In particular, a signal that evaluates companies based on a series of long-term sustainability measures provided stability to the portfolio amid increased market volatility. Lastly, although the portfolio’s macro thematic signals detracted in aggregate, select industry timing signals were beneficial. In this vein, maintaining a modest underweight position in the energy sector throughout the period and a modest overweight position in the financials sector during the second quarter of 2019 proved additive to relative portfolio performance.

Describe recent portfolio activity.

Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. However, a number of new stock selection insights were added to the portfolio. Among these, a new insight was added that captures the location of hotel booking trends and invests in related stocks most sensitive to those areas. The Fund also added a machine-learned signal that pulls from several alternative data sources to try and more accurately gauge consumer transactions. Lastly, in the second quarter of 2019, the investment adviser improved upon an existing signal, expanding the data sources used to identify trends in company job hiring as an indication of future company growth.

Describe portfolio positioning at period end.

Relative to the Russell 1000^® Index, the Fund was positioned essentially neutrally from a sector perspective. The Fund had slight overweight positions in the utilities and industrials sectors and slight underweight positions in the consumer discretionary and energy sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Advantage Large Cap Core V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns(a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I (b)(c)		18.42	%		8.28	%		10.21	%		13.41	%
Class II (b)(c)		18.31			8.09			10.02			13.23
Class III (b)(c)		18.27			7.97			9.90			13.10
Russell 1000®Index (d)		18.84			10.02			10.45			14.77

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in large cap equity securities and derivatives that have similar economic characteristics to such securities. The Fund’s returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Large Cap Core V.I. Fund”.

^(d)  An index that measures the performance of the large cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 92% of the total market capitalization of the Russell 3000^® Index.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,184.20	$	3.09	$	1,000.00	$	1,021.97	$	2.86		0.57	%
Class II		1,000.00		1,183.10		3.95		1,000.00		1,021.17		3.66		0.73
Class III		1,000.00		1,182.70		4.55		1,000.00		1,020.63		4.21		0.84

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Information Technology		22	%
Financials		14
Health Care		14
Industrials		10
Consumer Discretionary		9
Communication Services		9
Consumer Staples		6
Utilities		4
Real Estate		4
Energy		4
Materials		3
Short-Term Securities		5
Liabilities in Excess of Other Assets		(4	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited)  June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 98.7%
Aerospace & Defense — 2.2%
Curtiss-Wright Corp.		8,265	$	1,050,729
Harris Corp.		14,766		2,792,694
Lockheed Martin Corp.		11,739		4,267,596
Raytheon Co.		13,391		2,328,427
				10,439,446
Auto Components — 0.1%
Dana, Inc.		10,277		204,923
Automobiles — 0.0%
Thor Industries, Inc.(a)		3,188		186,339
Banks — 4.6%
Bank of America Corp.(a)		82,040		2,379,160
Citizens Financial Group, Inc.		117,153		4,142,530
East West Bancorp, Inc.		12,651		591,687
First Republic Bank(a)		17,780		1,736,217
JPMorgan Chase & Co.		99,881		11,166,696
Wells Fargo & Co.		27,009		1,278,066
Western Alliance Bancorp(b)		17,734		793,065
				22,087,421
Beverages — 1.2%
Keurig Dr Pepper, Inc.(a)		3,150		91,035
Molson Coors Brewing Co., Class B		3,050		170,800
Monster Beverage Corp.(b)		18,155		1,158,834
PepsiCo, Inc.		34,203		4,485,039
				5,905,708
Biotechnology — 4.1%
AbbVie, Inc.		49,818		3,622,765
Amgen, Inc.		33,855		6,238,799
Celgene Corp.(b)		12,319		1,138,768
Gilead Sciences, Inc.		92,739		6,265,447
Regeneron Pharmaceuticals, Inc.(b)		4,805		1,503,965
Vertex Pharmaceuticals, Inc.(b)		4,941		906,081
				19,675,825
Building Products — 0.6%
Allegion plc		26,765		2,958,871
AO Smith Corp.		1,227		57,865
				3,016,736
Capital Markets — 2.3%
Charles Schwab Corp. (The)		154,372		6,204,211
Evercore, Inc., Class A		4,691		415,482
FactSet Research Systems, Inc.(a)		1,691		484,573
Morgan Stanley		52,206		2,287,145
S&P Global, Inc.		264		60,136
TD Ameritrade Holding Corp.		33,990		1,696,781
				11,148,328
Chemicals — 1.8%
Air Products & Chemicals, Inc.		18,402		4,165,661
Dow, Inc.		37,917		1,869,687
DuPont de Nemours, Inc.		1,122		84,229
Ecolab, Inc.		4,593		906,842
LyondellBasell Industries NV, Class A		17,941		1,545,258
				8,571,677
Commercial Services & Supplies — 0.2%
ADT, Inc.		18,027		110,325
Waste Connections, Inc.		3,159		301,937
Waste Management, Inc.(a)		5,765		665,108
				1,077,370

Security	Shares		Value
Communications Equipment — 1.3%
Ciena Corp.(b)		16,923	$	696,043
Cisco Systems, Inc.		104,328		5,709,871
				6,405,914
Construction & Engineering — 0.0%
MasTec, Inc.(a)(b)		3,264		168,194
Consumer Finance — 1.3%
American Express Co.		30,291		3,739,121
Discover Financial Services(a)		33,581		2,605,550
				6,344,671
Containers & Packaging — 0.8%
Westrock Co.(a)		99,583		3,631,792
Diversified Consumer Services — 0.1%
frontdoor, Inc.(b)		6,514		283,685
H&R Block, Inc.(a)		4,918		144,097
				427,782
Diversified Financial Services — 2.0%
Berkshire Hathaway, Inc., Class B(b)		44,895		9,570,267
Diversified Telecommunication Services — 1.7%
Verizon Communications, Inc.		142,182		8,122,858
Electric Utilities — 1.5%
Alliant Energy Corp.		5,620		275,830
Evergy, Inc.		14,843		892,806
IDACORP, Inc.(a)		21,316		2,140,766
Pinnacle West Capital Corp.		21,394		2,012,961
Xcel Energy, Inc.		31,053		1,847,343
				7,169,706
Electrical Equipment — 1.3%
Generac Holdings, Inc.(a)(b)		6,181		429,023
Hubbell, Inc.		5,887		767,665
Rockwell Automation, Inc.		30,661		5,023,192
				6,219,880
Electronic Equipment, Instruments & Components — 1.0%
CDW Corp.		14,711		1,632,921
National Instruments Corp.		68,236		2,865,230
				4,498,151
Energy Equipment & Services — 0.4%
Halliburton Co.		76,030		1,728,922
Entertainment — 0.7%
Activision Blizzard, Inc.		15,648		738,586
Electronic Arts, Inc.(b)		851		86,172
Netflix, Inc.(b)		3,361		1,234,563
Take-Two Interactive Software, Inc.(b)		2,202		249,993
Viacom, Inc., Class B		22,793		680,827
Zynga, Inc., Class A(b)		88,718		543,841
				3,533,982
Equity Real Estate Investment Trusts (REITs) — 4.0%
Equity LifeStyle Properties, Inc.		34,863		4,230,277
Outfront Media, Inc.		39,179		1,010,426
Park Hotels & Resorts, Inc.		75,988		2,094,229
Prologis, Inc.		75,346		6,035,215
RLJ Lodging Trust		66,645		1,182,282
Ryman Hospitality Properties, Inc.		7,133		578,415
Simon Property Group, Inc.		24,657		3,939,202
				19,070,046

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Food & Staples Retailing — 0.9%
Costco Wholesale Corp.		4,971	$	1,313,637
Performance Food Group Co.(b)		40,863		1,635,746
Walmart, Inc.		10,407		1,149,869
				4,099,252
Food Products — 2.1%
Archer-Daniels-Midland Co.		52,333		2,135,187
General Mills, Inc.		69,170		3,632,808
Hershey Co. (The)		25,067		3,359,730
JM Smucker Co. (The)(a)		6,260		721,089
McCormick & Co., Inc.(Non-Voting)		918		142,299
				9,991,113
Gas Utilities — 0.3%
Southwest Gas Holdings, Inc.		15,379		1,378,266
Health Care Equipment & Supplies — 2.1%
Danaher Corp.		2,935		419,470
DexCom, Inc.(b)		2,137		320,208
Hill-Rom Holdings, Inc.		2,129		222,736
Medtronic plc		63,591		6,193,128
Stryker Corp.		14,691		3,020,176
				10,175,718
Health Care Providers & Services — 2.0%
AmerisourceBergen Corp.(a)		13,990		1,192,788
Anthem, Inc.		6,941		1,958,820
Cigna Corp.		1,816		286,111
CVS Health Corp.		24,011		1,308,359
McKesson Corp.		3,726		500,737
UnitedHealth Group, Inc.		17,338		4,230,645
				9,477,460
Health Care Technology — 0.6%
Veeva Systems, Inc., Class A(b)		17,743		2,876,318
Hotels, Restaurants & Leisure — 3.4%
Chipotle Mexican Grill, Inc.(b)		119		87,213
Darden Restaurants, Inc.		46,087		5,610,170
Domino’s Pizza, Inc.		4,915		1,367,746
Extended Stay America, Inc.		155,012		2,618,153
International Game Technology plc		7,426		96,315
Las Vegas Sands Corp.		51,062		3,017,254
McDonald’s Corp.		4,590		953,159
Norwegian Cruise Line Holdings Ltd.(b)		6,957		373,104
Royal Caribbean Cruises Ltd.		9,582		1,161,434
Yum! Brands, Inc.		6,459		714,818
				15,999,366
Household Products — 0.9%
Church & Dwight Co., Inc.		35,005		2,557,465
Colgate-Palmolive Co.		12,786		916,373
Procter & Gamble Co. (The)		6,681		732,572
				4,206,410
Industrial Conglomerates — 0.7%
Honeywell International, Inc.		19,073		3,329,955
Roper Technologies, Inc.		347		127,092
				3,457,047
Insurance — 3.5%
Allstate Corp. (The)		28,949		2,943,824
Arthur J Gallagher & Co.		12,670		1,109,765
Cincinnati Financial Corp.		1,417		146,900
First American Financial Corp.		30,556		1,640,857
Lincoln National Corp.		15,048		969,844
Loews Corp.		34,476		1,884,803
MetLife, Inc.		12,410		616,405

Security	Shares		Value
Insurance (continued)
Prudential Financial, Inc.		59,980	$	6,057,980
Travelers Cos., Inc. (The)(a)		8,339		1,246,847
Unum Group		8,035		269,574
				16,886,799
Interactive Media & Services — 3.4%(b)
Alphabet, Inc., Class A		433		468,852
Alphabet, Inc., Class C		5,289		5,716,933
Facebook, Inc., Class A		49,858		9,622,594
Pinterest, Inc., Class A		17,613		479,426
				16,287,805
Internet & Direct Marketing Retail — 3.5%(b)
Amazon.com, Inc.		8,651		16,381,794
Etsy, Inc.		3,247		199,269
				16,581,063
IT Services — 6.9%
Amdocs Ltd.		1,333		82,766
Automatic Data Processing, Inc.		36,492		6,033,222
Booz Allen Hamilton Holding Corp.		10,411		689,312
Fidelity National Information Services, Inc.		39,074		4,793,598
First Data Corp., Class A(b)		9,451		255,839
GoDaddy, Inc., Class A(b)		41,131		2,885,340
International Business Machines Corp.		18,265		2,518,743
Paychex, Inc.(a)		64,172		5,280,714
PayPal Holdings, Inc.(b)		667		76,345
Square, Inc., Class A(b)		19,702		1,428,986
VeriSign, Inc.(b)		16,386		3,427,296
Visa, Inc., Class A		32,122		5,574,773
				33,046,934
Machinery — 3.5%
Crane Co.		63,726		5,317,297
Cummins, Inc.		2,650		454,051
IDEX Corp.		4,263		733,833
Oshkosh Corp.		13,838		1,155,335
PACCAR, Inc.		82,805		5,933,806
Snap-on, Inc.(a)		18,263		3,025,083
				16,619,405
Media — 2.8%
CBS Corp.(Non-Voting), Class B		21,452		1,070,455
Comcast Corp., Class A		106,616		4,507,724
Fox Corp., Class A(b)		8,707		319,025
Fox Corp., Class B(a)(b)		22,027		804,646
Interpublic Group of Cos., Inc. (The)		221,551		5,004,837
Liberty Media Corp.-Liberty SiriusXM, Class A(b)		14,463		546,846
Sinclair Broadcast Group, Inc., Class A		12,235		656,163
Sirius XM Holdings, Inc.(a)		105,129		586,620
Tribune Media Co., Class A		1,519		70,208
				13,566,524
Multiline Retail — 0.5%
Target Corp.(a)		28,475		2,466,220
Multi-Utilities — 1.1%
Avista Corp.		5,967		266,128
Black Hills Corp.		6,504		508,418
Consolidated Edison, Inc.		29,333		2,571,917
DTE Energy Co.		15,578		1,992,115
				5,338,578
Oil, Gas & Consumable Fuels — 3.3%
Anadarko Petroleum Corp.		8,044		567,585
Antero Midstream Corp.(a)		29,415		337,096
Cabot Oil & Gas Corp.		17,710		406,622
Chevron Corp.		33,226		4,134,643

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
ConocoPhillips		107,077	$	6,531,697
EOG Resources, Inc.		8,302		773,414
Exxon Mobil Corp.		7,204		552,043
Phillips 66		3,149		294,557
Suncor Energy, Inc.		31,570		983,721
Valero Energy Corp.		9,140		782,475
Williams Cos., Inc. (The)		19,790		554,912
				15,918,765
Personal Products — 0.4%
Estee Lauder Cos., Inc. (The), Class A		6,770		1,239,655
Herbalife Nutrition Ltd.(b)		10,183		435,425
Nu Skin Enterprises, Inc., Class A		2,067		101,944
				1,777,024
Pharmaceuticals — 5.1%
Bristol-Myers Squibb Co.		63,407		2,875,507
Jazz Pharmaceuticals plc(b)		2,279		324,894
Johnson & Johnson		85,236		11,871,670
Merck & Co., Inc.		107,662		9,027,459
				24,099,530
Professional Services — 1.2%
CoStar Group, Inc.(b)		2,502		1,386,258
Insperity, Inc.		33,251		4,061,277
TriNet Group, Inc.(b)		3,101		210,248
				5,657,783
Road & Rail — 0.8%
Landstar System, Inc.(a)		11,681		1,261,431
Lyft, Inc., Class A(a)(b)		14,136		928,877
Ryder System, Inc.		4,564		266,081
Uber Technologies, Inc.(a)(b)		24,256		1,124,993
				3,581,382
Semiconductors & Semiconductor Equipment — 2.8%
Broadcom, Inc.		6,094		1,754,219
Cirrus Logic, Inc.(b)		17,698		773,403
Intel Corp.		52,550		2,515,568
NVIDIA Corp.		4,504		739,692
NXP Semiconductors NV		3,535		345,051
QUALCOMM, Inc.		19,860		1,510,750
Skyworks Solutions, Inc.		7,315		565,230
Texas Instruments, Inc.		26,961		3,094,044
Xilinx, Inc.		19,054		2,246,848
				13,544,805
Software — 7.1%
Adobe, Inc.(b)		17,694		5,213,537
Dropbox, Inc., Class A(b)		11,856		296,993
Intuit, Inc.		9,094		2,376,535
Microsoft Corp.(a)		92,197		12,350,710
Oracle Corp.		16,546		942,626
RingCentral, Inc., Class A(b)		4,220		484,962
salesforce.com, Inc.(b)		46,992		7,130,096
ServiceNow, Inc.(b)		14,060		3,860,454
Tableau Software, Inc., Class A(b)		1,241		206,031
Workday, Inc., Class A(b)		5,731		1,178,179
				34,040,123
Specialty Retail — 0.7%
Advance Auto Parts, Inc.		9,545		1,471,266
AutoZone, Inc.(b)		347		381,516
Home Depot, Inc. (The)		2,442		507,863
O’Reilly Automotive, Inc.(b)		1,486		548,810
Penske Automotive Group, Inc.		1,960		92,708

Security	Shares		Value
Specialty Retail (continued)
Ulta Beauty, Inc.(b)		736	$	255,311
				3,257,474
Technology Hardware, Storage & Peripherals — 3.2%
Apple, Inc.		59,937		11,862,731
Dell Technologies, Inc., Class C(b)		35,459		1,801,317
HP, Inc.		86,886		1,806,360
				15,470,408
Textiles, Apparel & Luxury Goods — 1.1%
Lululemon Athletica, Inc.(b)		12,428		2,239,650
NIKE, Inc., Class B		36,419		3,057,375
				5,297,025
Thrifts & Mortgage Finance — 0.1%
Essent Group Ltd.(b)		9,140		429,489
Tobacco — 0.3%
Philip Morris International, Inc.		18,035		1,416,289
Water Utilities — 1.2%
American Water Works Co., Inc.		48,748		5,654,768
Total Common Stocks — 98.7% (Cost: $438,847,838)				471,805,081
Total Long-Term Investments — 98.7% (Cost: $438,847,838)				471,805,081
Short-Term Securities — 5.1%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%		4,722,530		4,722,530
SL Liquidity Series, LLC, Money Market Series, 2.55%(d)		19,590,732		19,596,609
Total Short-Term Securities — 5.1% (Cost: $24,319,139)				24,319,139
Total Investments — 103.8% (Cost: $463,166,977)				496,124,220
Liabilities in Excess of Other Assets — (3.8)%				(18,128,191	)
Net Assets — 100.0%			$	477,996,029

��

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Annualized7-day yield as of period end.

^(d)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		4,753,078		(30,548	)		4,722,530	$	4,722,530	$	46,662		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		13,426,942		6,163,790			19,590,732		19,596,609		30,132	(b)		5,566		831
								$	24,319,139	$	76,794		$	5,566	$	831

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
S&P 500E-Mini Index		48		09/20/19	$	7,066	$	63,498

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	63,498	$	—	$	—	$	—	$	63,498

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	651,494	$	—	$	—	$	—	$	651,494
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		150,258		—		—		—		150,258

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	6,228,950

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

SCHEDULES OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Core V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments (a)	$	471,805,081	$	—	$	—	$	471,805,081
Short-Term Securities		4,722,530		—		—		4,722,530
Subtotal	$	476,527,611	$	—	$	—	$	476,527,611
Investments valued at NAV (b)								19,596,609
Total Investments							$	496,124,220
Derivative Financial Instruments (c)
Assets:
Equity contracts	$	63,498	$	—	$	—	$	63,498

^(a)  See above Schedule of Investments for values in each industry. Investments categorized as Level 1 are included in industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock Advantage Large Cap Core V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $19,340,653) (cost — $438,847,838)	$	471,805,081
Investments at value — affiliated (cost — $24,319,139)		24,319,139
Cash pledged for futures contracts		261,000
Receivables:
Investments sold		8,436,557
Securities lending income — affiliated		10,658
Capital shares sold		254
Dividends — affiliated		7,470
Dividends — unaffiliated		355,010
Variation margin on futures contracts		23,733
Prepaid expenses		4,079
Total assets		505,222,981
LIABILITIES
Cash collateral on securities loaned at value		19,590,810
Payables:
Investments purchased		6,641,509
Board realignment and consolidation		29,357
Capital shares redeemed		266,437
Distribution fees		63,350
Investment advisory fees		180,024
Directors’ and Officer’s fees		6,670
Other affiliates		1,016
Other accrued expenses		447,779
Total liabilities		27,226,952
NET ASSETS	$	477,996,029
NET ASSETS CONSIST OF
Paid-in capital	$	426,896,816
Accumulated earnings		51,099,213
NET ASSETS	$	477,996,029
NET ASSET VALUE
Class I— Based on net assets of $167,304,249 and 6,196,822 shares outstanding, 200 million shares authorized, $0.10 par value	$	27.00
Class II— Based on net assets of $4,909,487 and 181,764 shares outstanding, 100 million shares authorized, $0.10 par value	$	27.01
Class III— Based on net assets of $305,782,293 and 11,439,467 shares outstanding, 100 million shares authorized, $0.10 par value	$	26.73

See notes to financial statements.

FINANCIAL STATEMENTS 11

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock Advantage Large Cap Core V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$46,662
Dividends — unaffiliated	4,596,098
Securities lending income — affiliated — net	30,132
Foreign taxes withheld	(1,246)
Total investment income	4,671,646
EXPENSES
Investment advisory	1,094,909
Transfer agent — class specific	486,300
Distribution — class specific	383,019
Accounting services	35,662
Custodian	25,762
Professional	25,172
Printing	21,515
Directors and Officer	9,909
Transfer agent	2,344
Miscellaneous	5,113
Total expenses	2,089,705
Less:
Fees waived and/or reimbursed by the Manager	(1,455)
Transfer agent fees waived and/or reimbursed — class specific	(321,611)
Total expenses after fees waived and/or reimbursed	1,766,639
Net investment income	2,905,007
REALIZED AND UNREALIZED GAIN
Net realized gain from:
Investments — affiliated	5,566
Investments — unaffiliated	20,178,417
Futures contracts	651,494
	20,835,477
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated	831
Investments — unaffiliated	54,936,112
Futures contracts	150,258
	55,087,201
Net realized and unrealized gain	75,922,678
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$78,827,685

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Advantage Large Cap Core V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	2,905,007		$	6,497,867
Net realized gain		20,835,477			48,029,877
Net change in unrealized appreciation (depreciation)		55,087,201			(75,978,029	)
Net increase (decrease) in net assets resulting from operations		78,827,685			(21,450,285	)
DISTRIBUTIONS TO SHAREHOLDERS (a)
Class I		—			(24,262,357	)
Class II		—			(685,736	)
Class III		—			(44,148,933	)
Decrease in net assets resulting from distributions to shareholders		—			(69,097,026	)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(36,850,895	)		(5,862,992	)
NET ASSETS
Total increase (decrease) in net assets		41,976,790			(96,410,303	)
Beginning of period		436,019,239			532,429,542
End of period	$	477,996,029		$	436,019,239

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 13

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Core V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	22.80		$	28.45		$	31.91		$	31.40		$	33.26		$	33.80
Net investment income (a)		0.18			0.42	(b)		0.44			0.39			0.36			0.34
Net realized and unrealized gain (loss)		4.02			(1.90	)		6.64			2.91			(0.16	)		3.86
Net increase (decrease) from investment operations		4.20			(1.48	)		7.08			3.30			0.20			4.20
Distributions (c)
From net investment income		—			(0.44	)		(0.47	)		(0.40	)		(0.39	)		(0.36	)
From net realized gain		—			(3.73	)		(10.07	)		(2.39	)		(1.67	)		(4.38	)
Total distributions		—			(4.17	)		(10.54	)		(2.79	)		(2.06	)		(4.74	)
Net asset value, end of period	$	27.00		$	22.80		$	28.45		$	31.91		$	31.40		$	33.26
Total Return (d)
Based on net asset value		18.42	%(e)		(5.22	)%		22.33	%		10.55	%		0.52	%		12.36	%
Ratios to Average Net Assets
Total expenses		0.72	%(f)		0.74	%		0.73	%		0.72	%		0.71	%		0.73	%
Total expenses after fees waived and/or reimbursed		0.57	%(f)		0.58	%		0.58	%		0.58	%		0.56	%		0.57	%
Net investment income		1.41	%(f)		1.45	%(b)		1.27	%		1.26	%		1.08	%		0.97	%
Supplemental Data
Net assets, end of period (000)	$	167,304		$	152,717		$	185,938		$	175,947		$	184,151		$	212,067
Portfolio turnover rate		72	%		149	%		149	%		50	%		31	%		48	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.06%, respectively, resulting from anon-recurring dividend.

^(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

See notes to financial statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Core V.I. Fund
	Class II
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	22.83		$	28.47		$	31.93		$	31.42		$	33.27		$	33.79
Net investment income (a)		0.16			0.37	(b)		0.38			0.34			0.30			0.28
Net realized and unrealized gain (loss)		4.02			(1.89	)		6.64			2.90			(0.16	)		3.87
Net increase (decrease) from investment operations		4.18			(1.52	)		7.02			3.24			0.14			4.15
Distributions (c)
From net investment income		—			(0.39	)		(0.41	)		(0.34	)		(0.32	)		(0.29	)
From net realized gain		—			(3.73	)		(10.07	)		(2.39	)		(1.67	)		(4.38	)
Total distributions		—			(4.12	)		(10.48	)		(2.73	)		(1.99	)		(4.67	)
Net asset value, end of period	$	27.01		$	22.83		$	28.47		$	31.93		$	31.42		$	33.27
Total Return (d)
Based on net asset value		18.31	%(e)		(5.37	)%		22.12	%		10.37	%		0.34	%		12.23	%
Ratios to Average Net Assets
Total expenses		0.87	%(f)		0.89	%		0.88	%		0.88	%		0.85	%		0.89	%
Total expenses after fees waived and/or reimbursed		0.73	%(f)		0.75	%		0.75	%		0.75	%		0.73	%		0.74	%
Net investment income		1.24	%(f)		1.28	%(b)		1.08	%		1.09	%		0.91	%		0.81	%
Supplemental Data
Net assets, end of period (000)	$	4,909		$	4,390		$	4,862		$	5,170		$	5,333		$	6,203
Portfolio turnover rate		72	%		149	%		149	%		50	%		31	%		48	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.06%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 15

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Core V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	22.60		$	28.23		$	31.74		$	31.25		$	33.11		$	33.66
Net investment income (a)		0.14			0.34	(b)		0.34			0.31			0.27			0.24
Net realized and unrealized gain (loss)		3.99			(1.89	)		6.59			2.88			(0.17	)		3.84
Net increase (decrease) from investment operations		4.13			(1.55	)		6.93			3.19			0.10			4.08
Distributions (c)
From net investment income		—			(0.35	)		(0.37	)		(0.31	)		(0.29	)		(0.25	)
From net realized gain		—			(3.73	)		(10.07	)		(2.39	)		(1.67	)		(4.38	)
Total distributions		—			(4.08	)		(10.44	)		(2.70	)		(1.96	)		(4.63	)
Net asset value, end of period	$	26.73		$	22.60		$	28.23		$	31.74		$	31.25		$	33.11
Total Return (d)
Based on net asset value		18.27	%(e)		(5.51	)%		21.97	%		10.26	%		0.23	%		12.07	%
Ratios to Average Net Assets
Total expenses		0.97	%(f)		0.99	%		0.99	%		0.97	%		0.96	%		0.98	%
Total expenses after fees waived and/or reimbursed		0.84	%(f)		0.86	%		0.86	%		0.86	%		0.84	%		0.85	%
Net investment income		1.13	%(f)		1.17	%(b)		0.98	%		0.98	%		0.80	%		0.69	%
Supplemental Data
Net assets, end of period (000)	$	305,782		$	278,913		$	341,630		$	328,040		$	306,567		$	322,418
Portfolio turnover rate		72	%		149	%		149	%		50	%		31	%		48	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.06%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

See notes to financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Advantage Large Cap Core V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount (b)
Barclays Capital, Inc.	$	301,924	$	(301,924	)	$	—
Citigroup Global Markets, Inc.		4,379,927		(4,379,347	)		580
Credit Suisse Securities (USA) LLC		1,475,810		(1,475,810	)		—
Fidelity Investments		14,153		(14,153	)		—
Goldman Sachs & Co.		3,608,869		(3,608,869	)		—
JP Morgan Securities LLC		4,222,205		(4,222,205	)		—
Morgan Stanley & Co. LLC		5,337,765		(5,337,765	)		—
	$	19,340,653	$	(19,340,073	)	$	580

^(a)  Cash collateral with a value of $19,590,810 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

^(b)  The market value of the loaned securities is determined as of June 30, 2019. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange orover-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements  (unaudited) (continued)

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $250 Billion		0.500	%
$250 Billion — $300 Billion		0.450
$300 Billion — $400 Billion		0.425
Greater than $400 Billion		0.400

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

	Distribution Fees
Class II		0.15	%
Class III		0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	3,586
Class III		379,433
	$	383,019

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent – class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$168,482
Class II		4,924
Class III		312,894
	$	486,300

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $1,455.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $2,818 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.05	%
Class II	0.07
Class III	0.08

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I	$	127,135
Class II		3,247
Class III		191,229
	$	321,611

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class II	1.40
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $10,165 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $337,314,872 and $371,120,415, respectively.

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements  (unaudited) (continued)

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	466,143,822
Gross unrealized appreciation	$	38,547,671
Gross unrealized depreciation		(8,503,775	)
Net unrealized appreciation	$	30,043,896

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		76,975		$	2,036,180			77,175		$	2,212,730
Shares issued in reinvestment of distributions		—			—			1,041,683			24,262,358
Shares redeemed		(579,203	)		(15,026,575	)		(956,268	)		(28,134,590	)
Net increase (decrease)		(502,228	)	$	(12,990,395	)		162,590		$	(1,659,502	)
Class II
Shares sold		13,669		$	357,618			36,314		$	1,069,473
Shares issued in reinvestment of distributions		—			—			29,415			685,735
Shares redeemed		(24,233	)		(624,952	)		(44,166	)		(1,311,866	)
Net increase (decrease)		(10,564	)	$	(267,334	)		21,563		$	443,342
Class III
Shares sold		163,095		$	4,082,574			375,928		$	10,947,281
Shares issued in reinvestment of distributions		—			—			1,909,440			44,148,933
Shares redeemed		(1,063,928	)		(27,675,740	)		(2,048,354	)		(59,743,046	)
Net increase (decrease)		(900,833	)	$	(23,593,166	)		237,014		$	(4,646,832	)
Total Net Increase (Decrease)		(1,413,625	)	$	(36,850,895	)		421,167		$	(5,862,992	)

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 23

Glossary of Terms Used in this Report

Portfolio Abbreviation
S&P	S&P Global Ratings

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Advantage Large Cap Value V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund

Investment Objective

BlackRock Advantage Large Cap Value V.I. Fund’s (the “Fund”) investment objective is to seek long-term capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Russell 1000^® Value Index.

What factors influenced performance?

Following several months of strong relative performance, the Fund gave back in June much of the excess return relative to the benchmark that it had generated in prior months. June was characterized by a sharp market rebound and a continuously changing environment in which investors sporadically and aggressively sought more risky cyclical exposure. Despite a strongsix-month period overall, several trend-based insights acted as a drag on relative performance during the month. A signal evaluating the sentiment of informed bond investors was a notable detractor, as the signal’s defensive properties dampened relative returns during the sharp June market rally. However, over thesix-month period, it was primarily the portfolio’s fundamental value insights that hindered relative Fund returns. More traditional value metrics were particularly weak, reflecting investors’ continued preference for high-growth opportunities over more value-oriented areas of the market. While the portfolio’s fundamental quality insights were broadly additive, certain measures of operating and asset efficiency detracted from relative performance. Given the continued decline in U.S. interest rates, a quality and risk management signal positioning against companies with higher degrees of leverage also detracted. Lastly, among the portfolio’s macro thematic insights, a signal that measures sensitivity to changes in foreign exchange rates was challenged given the heightened volatility across currency markets.

Despite periods of volatility, including a market drawdown in May, stronger-than-expected corporate earnings, an overall easing of global trade tensions and increasingly dovish central bank rhetoric supported the market throughout the first half of the year. At the portfolio level, sentiment- and trend-based stock selection insights drove positive relative performance in the period, especially in the consumer staples and real estate sectors. Among this group of insights, an alternative trend-based insight that evaluates the tightness of every industry’s labor market as an indication of each company’s availability and cost of labor was particularly additive. A machine-learned signal conducting text-analysis of management conference calls to identify longer-term trends in company fundamentals was also beneficial. While the portfolio’s fundamental insights detracted in aggregate, there were certain bright spots among the Fund’s quality signals. In particular, identifying companies with attractive dividend growth trends, an alternative measure of company quality, was one of the top individual contributors to performance. Another contributor was a signal that evaluates companies based on a series of long-term sustainability measures, providing stability to the portfolio amid increased market volatility. Lastly, although the portfolio’s macro thematic signals detracted in aggregate, select industry timing signals were beneficial. In this vein, maintaining a modest overweight position in the industrials sector and a modest underweight position in the energy sector proved additive to relative performance.

Describe recent portfolio activity.

Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. However, a number of new stock selection insights were added to the portfolio. Among these, a new insight was added that captures the location of hotel booking trends and invests in related stocks most sensitive to those areas. The Fund also added a machine-learned signal that pulls from several alternative data sources to try and more accurately gauge consumer transactions. Lastly, in the second quarter of 2019, the investment adviser improved upon an existing signal, expanding the data sources used to identify trends in company job hiring as an indication of future company growth.

Describe portfolio positioning at period end.

Relative to the Russell 1000^® Value Index, the Fund was positioned essentially neutrally from a sector perspective. The Fund ended the period with slight overweight positions in the utilities and information technology sectors and slight underweight positions in the consumer staples and consumer discretionary sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Advantage Large Cap Value V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		15.83	%		7.03	%		8.26	%		11.96	%
Class II(b)(c)		15.76			6.87			8.07			11.76
Class III(b)(c)		15.66			6.79			7.91			11.60
Russell 1000®Value Index(d)		16.24			8.46			7.46			13.19

^(a)  For the portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in large cap equity securities of U.S. issuers and derivatives that have similar economic characteristics to such securities. The Fund’s returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Large Cap Value V.I. Fund”.

^(d)  An unmanaged index that is a subset of the Russell 1000^®Index that consists of those Russell 1000^®securities with lowerprice-to book ratios and lower expected growth values.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,158.30	$	3.21	$	1,000.00	$	1,021.82	$	3.01		0.60%
Class II		1,000.00		1,157.60		4.01		1,000.00		1,021.08		3.76		0.75
Class III		1,000.00		1,156.60		4.55		1,000.00		1,020.58		4.26		0.85

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Financials		24	%
Health Care		13
Industrials		10
Energy		8
Communication Services		8
Consumer Staples		7
Utilities		7
Information Technology		7
Real Estate		5
Consumer Discretionary		5
Materials		4
Short-Term Securities		6
Liabilities in Excess of Other Assets		(4	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited)  June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 98.7%
Aerospace & Defense — 1.5%
Curtiss-Wright Corp.		2,586	$	328,758
Harris Corp.		2,671		505,166
Lockheed Martin Corp.		1,706		620,200
				1,454,124
Auto Components — 0.5%
Dana, Inc.		11,695		233,198
Goodyear Tire & Rubber Co. (The)		12,722		194,647
				427,845
Automobiles — 0.1%
Thor Industries, Inc.(a)		922		53,891
Banks — 9.7%
Associated Banc-Corp.(a)		6,901		145,887
Bank of America Corp.(a)		52,218		1,514,322
Citigroup, Inc.		1,610		112,748
Citizens Financial Group, Inc.		32,160		1,137,178
Cullen/Frost Bankers, Inc.(a)		244		22,853
East West Bancorp, Inc.		7,647		357,650
First Republic Bank(a)		5,545		541,469
JPMorgan Chase & Co.		30,226		3,379,267
PNC Financial Services Group, Inc. (The)		902		123,827
Regions Financial Corp.		10,553		157,662
Wells Fargo & Co.		23,547		1,114,244
Western Alliance Bancorp(a)(b)		11,914		532,794
Zions Bancorp		2,190		100,696
				9,240,597
Beverages — 0.5%
Molson Coors Brewing Co., Class B		1,235		69,160
Monster Beverage Corp.(b)		3,281		209,426
PepsiCo, Inc.		1,253		164,306
				442,892
Biotechnology — 2.5%
AbbVie, Inc.		3,471		252,411
Amgen, Inc.		4,419		814,334
Gilead Sciences, Inc.		17,127		1,157,100
Regeneron Pharmaceuticals, Inc.(b)		375		117,375
				2,341,220
Building Products — 0.9%
Allegion plc		8,162		902,309
Capital Markets — 2.8%
Charles Schwab Corp. (The)		25,512		1,025,327
Franklin Resources, Inc.(a)		6,680		232,464
Morgan Stanley		26,081		1,142,609
State Street Corp.		491		27,525
TD Ameritrade Holding Corp.		5,104		254,792
				2,682,717
Chemicals — 2.8%
Air Products & Chemicals, Inc.		4,183		946,906
Dow, Inc.		10,891		537,035
DuPont de Nemours, Inc.		4,214		316,345
Ecolab, Inc.		2,118		418,178
LyondellBasell Industries NV, Class A		5,028		433,061
				2,651,525
Commercial Services & Supplies — 0.3%
ADT, Inc.		26,262		160,723
Waste Management, Inc.		1,321		152,404
				313,127

Security	Shares		Value
Communications Equipment — 0.5%
Ciena Corp.(b)		1,454	$	59,803
Cisco Systems, Inc.		6,984		382,234
				442,037
Consumer Finance — 2.0%
American Express Co.		4,468		551,530
Capital One Financial Corp.		6,561		595,345
Discover Financial Services		9,692		752,002
Synchrony Financial		1,685		58,419
				1,957,296
Containers & Packaging — 1.1%
Westrock Co.		29,985		1,093,553
Diversified Consumer Services — 0.1%
frontdoor, Inc.(b)		1,039		45,249
H&R Block, Inc.(a)		2,187		64,079
				109,328
Diversified Financial Services — 2.6%
Berkshire Hathaway, Inc., Class B(b)		11,875		2,531,394
Diversified Telecommunication Services — 3.6%
AT&T, Inc		26,522		888,752
Verizon Communications, Inc.		43,911		2,508,636
				3,397,388
Electric Utilities — 3.1%
Alliant Energy Corp.		12,045		591,169
Evergy, Inc.		9,210		553,981
IDACORP, Inc.		3,259		327,301
Pinnacle West Capital Corp.		6,658		626,451
Xcel Energy, Inc.		15,140		900,679
				2,999,581
Electrical Equipment — 1.1%
AMETEK, Inc.		381		34,610
Generac Holdings, Inc.(b)		1,130		78,433
Hubbell, Inc.		3,211		418,714
Rockwell Automation, Inc.		3,243		531,301
				1,063,058
Electronic Equipment, Instruments & Components — 0.8%
National Instruments Corp.		18,423		773,582
Energy Equipment & Services — 1.0%
Halliburton Co.		15,914		361,884
Helmerich & Payne, Inc.(a)		951		48,140
Nabors Industries Ltd.(a)		17,486		50,709
National Oilwell Varco, Inc.		7,681		170,749
Schlumberger Ltd.		5,232		207,920
Transocean Ltd.(b)		11,279		72,298
				911,700
Entertainment — 1.2%
Viacom, Inc., Class A		2,740		93,434
Viacom, Inc., Class B		9,266		276,776
Walt Disney Co. (The)		4,864		679,209
Zynga, Inc., Class A(b)		13,787		84,514
				1,133,933
Equity Real Estate Investment Trusts (REITs) — 4.9%
Equity LifeStyle Properties, Inc.		3,418		414,740
Outfront Media, Inc.		15,493		399,565
Park Hotels & Resorts, Inc.		26,773		737,864
Prologis, Inc.(a)		17,714		1,418,891
Realty Income Corp.		1,352		93,248
RLJ Lodging Trust		30,156		534,967
Ryman Hospitality Properties, Inc.		2,767		224,376

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Simon Property Group, Inc.		5,224	$	834,586
				4,658,237
Food & Staples Retailing — 1.0%
Performance Food Group Co.(b)		3,405		136,302
Walmart, Inc.		7,249		800,942
				937,244
Food Products — 3.0%
Archer-Daniels-Midland Co.		18,161		740,969
General Mills, Inc.		17,322		909,751
Hershey Co. (The)		5,402		724,030
JM Smucker Co. (The)		3,125		359,969
McCormick & Co., Inc.(Non-Voting)		824		127,728
				2,862,447
Gas Utilities — 0.4%
Southwest Gas Holdings, Inc.		4,723		423,275
Health Care Equipment & Supplies — 2.8%
Danaher Corp.		3,828		547,098
Hill-Rom Holdings, Inc.		996		104,201
Medtronic plc		19,418		1,891,119
Stryker Corp.		469		96,417
				2,638,835
Health Care Providers & Services — 2.0%
Anthem, Inc.		2,720		767,611
Cigna Corp.		1,877		295,722
CVS Health Corp.		11,039		601,515
McKesson Corp.		2,175		292,298
				1,957,146
Health Care Technology — 0.2%
Veeva Systems, Inc., Class A(b)		1,316		213,337
Hotels, Restaurants & Leisure — 3.4%
Darden Restaurants, Inc.		9,173		1,116,629
Domino’s Pizza, Inc.		297		82,649
Extended Stay America, Inc.		39,973		675,144
International Game Technology plc		7,263		94,201
Las Vegas Sands Corp.		5,680		335,631
McDonald’s Corp.		1,460		303,184
Norwegian Cruise Line Holdings Ltd.(b)		2,371		127,157
Royal Caribbean Cruises Ltd.		2,776		336,479
Yum! Brands, Inc.		1,778		196,771
				3,267,845
Household Products — 2.0%
Church & Dwight Co., Inc.		10,289		751,714
Colgate-Palmolive Co.		3,666		262,742
Procter & Gamble Co. (The)		8,015		878,845
				1,893,301
Industrial Conglomerates — 0.4%
Honeywell International, Inc.		1,856		324,039
Roper Technologies, Inc.		206		75,450
				399,489
Insurance — 6.5%
Allstate Corp. (The)		7,781		791,250
American Financial Group, Inc.		2,396		245,518
Arthur J Gallagher & Co.		4,054		355,090
Cincinnati Financial Corp.		4,489		465,375
First American Financial Corp.		15,085		810,064
Lincoln National Corp.		7,940		511,733
Loews Corp.		11,548		631,329
MetLife, Inc.		6,709		333,236

Security	Shares		Value
Insurance (continued)
Prudential Financial, Inc.		13,419	$	1,355,319
Travelers Cos., Inc. (The)(a)		3,503		523,769
Unum Group		6,308		211,633
				6,234,316
Interactive Media & Services — 0.1%(b)
Facebook, Inc., Class A		134		25,862
Pinterest, Inc., Class A		2,089		56,863
				82,725
IT Services — 2.0%
Amdocs Ltd.		3,461		214,894
Automatic Data Processing, Inc.		1,240		205,009
Booz Allen Hamilton Holding Corp.		11		728
Fidelity National Information Services, Inc.		6,672		818,521
GoDaddy, Inc., Class A(b)		4,352		305,293
International Business Machines Corp.		763		105,218
Paychex, Inc.		3,576		294,269
				1,943,932
Life Sciences Tools & Services — 0.0%
Thermo Fisher Scientific, Inc.		38		11,160
Machinery — 4.4%
Crane Co.		12,905		1,076,793
Cummins, Inc.		2,909		498,428
IDEX Corp.		1,260		216,896
Oshkosh Corp.		6,111		510,207
PACCAR, Inc.		17,772		1,273,542
Snap-on, Inc.(a)		3,882		643,015
				4,218,881
Media — 2.9%
Comcast Corp., Class A		36,602		1,547,533
Interpublic Group of Cos., Inc. (The)		48,675		1,099,568
Liberty Media Corp.-Liberty SiriusXM, Class A(b)		2,773		104,847
Sinclair Broadcast Group, Inc., Class A		663		35,557
Tribune Media Co., Class A		622		28,749
				2,816,254
Metals & Mining — 0.2%
Newmont Goldcorp Corp.		5,227		201,083
Multiline Retail — 0.6%
Target Corp.(a)		6,425		556,469
Multi-Utilities — 2.5%
Avista Corp.		2,767		123,408
Black Hills Corp.		3,311		258,821
Consolidated Edison, Inc.		12,967		1,136,947
DTE Energy Co.		6,859		877,129
				2,396,305
Oil, Gas & Consumable Fuels — 7.2%
Anadarko Petroleum Corp.		2,385		168,286
Antero Midstream Corp.(a)		8,164		93,559
Cabot Oil & Gas Corp.		8,270		189,879
Chevron Corp.		15,470		1,925,087
ConocoPhillips		24,884		1,517,924
EOG Resources, Inc.		5,474		509,958
Exxon Mobil Corp.		17,224		1,319,875
Kinder Morgan, Inc.		14,521		303,198
Marathon Oil Corp.		1,195		16,981
Phillips 66		2,728		255,177
Suncor Energy, Inc.		1,478		46,054
Valero Energy Corp.		2,973		254,519

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Williams Cos., Inc. (The)		11,196	$	313,936
				6,914,433
Personal Products — 0.4%
Herbalife Nutrition Ltd.(b)		7,527		321,854
Nu Skin Enterprises, Inc., Class A		955		47,101
				368,955
Pharmaceuticals — 6.1%
Bristol-Myers Squibb Co.		12,981		588,688
Jazz Pharmaceuticals plc(b)		1,028		146,552
Johnson & Johnson		23,158		3,225,446
Merck & Co., Inc.		13,305		1,115,624
Pfizer, Inc.		16,784		727,083
				5,803,393
Professional Services — 0.8%
Insperity, Inc.		4,837		590,791
TriNet Group, Inc.(b)		2,515		170,517
				761,308
Road & Rail — 0.3%
Ryder System, Inc.		4,365		254,480
Uber Technologies, Inc.(a)(b)		1,314		60,943
				315,423
Semiconductors & Semiconductor Equipment — 1.8%
Broadcom, Inc.		376		108,235
Cirrus Logic, Inc.(b)		5,505		240,569
Intel Corp.		25,683		1,229,445
NXP Semiconductors NV		925		90,289
Xilinx, Inc.		254		29,952
				1,698,490
Software — 1.1%
Intuit, Inc.		912		238,333
salesforce.com, Inc.(b)		3,111		472,032
ServiceNow, Inc.(b)		1,302		357,490
				1,067,855

Security	Shares		Value
Specialty Retail — 0.1%
Advance Auto Parts, Inc.		758	$	116,838
Technology Hardware, Storage & Peripherals — 0.4%
Dell Technologies, Inc., Class C(b)		3,748		190,398
HP, Inc.		11,177		232,370
				422,768
Textiles, Apparel & Luxury Goods — 0.1%
Lululemon Athletica, Inc.(b)		538		96,953
Tobacco — 0.8%
Philip Morris International, Inc.		9,772		767,395
Trading Companies & Distributors — 0.2%
GATX Corp.(a)		603		47,812
WW Grainger, Inc.		381		102,196
				150,008
Water Utilities — 1.3%
American Water Works Co., Inc		10,492		1,217,072
Wireless Telecommunication Services — 0.1%
United States Cellular Corp.(b)		1,878		83,890
Total Common Stocks — 98.7% (Cost: $89,906,910)				94,420,159
Total Long-Term Investments — 98.7% (Cost: $89,906,910)				94,420,159
Short-Term Securities — 5.5%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,   2.26%		757,087		757,087
SL Liquidity Series, LLC, Money Market Series,   2.55%(d)		4,519,809		4,521,165
Total Short-Term Securities — 5.5% (Cost: $5,278,252)				5,278,252
Total Investments — 104.2% (Cost: $95,185,162)				99,698,411
Liabilities in Excess of Other Assets — (4.2)%				(3,975,574	)
Net Assets — 100.0%			$	95,722,837

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c) Annualized7-day yield as of period end.

^(d)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		939,148		(182,061	)		757,087	$	757,087	$	9,279		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		2,669,646		1,850,163			4,519,809		4,521,165		4,709	(b)		1,468		112
								$	5,278,252	$	13,988		$	1,468	$	112

^(a) Includes net capital gain distributions, if applicable.

^(b) Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts S&P 500E-Mini Index		10		09/20/19	$	1,472	$	6,513

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency       Exchange Contracts		Interest Rate       Contracts		Other       Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	6,513	$	—	$	—	$	—	$	6,513

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency       Exchange Contracts		Interest Rate       Contracts		Other       Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	172,034	$	—	$	—	$	—	$	172,034
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		18,268		—		—		—		18,268

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	1,090,775

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	94,420,159	$	—	$	—	$	94,420,159
Short-Term Securities		757,087		—		—		757,087
Subtotal	$	95,177,246	$	—	$	—	$	95,177,246

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage Large Cap Value V.I. Fund

	Level 1		Level 2		Level 3		Total
Investments valued at NAV(b)							$	4,521,165
Total Investments							$	99,698,411
Derivative Financial Instruments(c)
Assets:
Equity contracts	$	6,513	$	—	$	—	$	6,513

^(a)  See above Schedule of Investments for values in each industry. Investments categorized as Level 1 are included in industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 9

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock  Advantage  Large Cap  Value V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $4,496,292) (cost — $89,906,910)	$	94,420,159
Investments at value — affiliated (cost — $5,278,252)		5,278,252
Cash pledged for futures contracts		58,000
Receivables:
Investments sold		5,783,288
Securities lending income — affiliated		1,259
Capital shares sold		13,545
Dividends — affiliated		1,561
Dividends — unaffiliated		100,539
Variation margin on futures contracts		5,461
Prepaid expenses		811
Total assets		105,662,875
LIABILITIES
Bank overdraft		35,736
Cash collateral on securities loaned at value		4,518,751
Payables:
Investments purchased		5,152,889
Capital shares redeemed		2,520
Distribution fees		1,456
Investment advisory fees		34,400
Directors’ and Officer’s fees		5,339
Other affiliates		212
Other accrued expenses		188,735
Total liabilities		9,940,038
NET ASSETS	$	95,722,837
NET ASSETS CONSIST OF
Paid-in capital	$	89,107,672
Accumulated earnings		6,615,165
NET ASSETS	$	95,722,837
NET ASSET VALUE
Class I— Based on net assets of $86,052,673 and 8,846,831 shares outstanding, 100 million shares authorized, $0.10 par value	$	9.73
Class II— Based on net assets of $5,208,356 and 533,215 shares outstanding, 100 million shares authorized, $0.10 par value	$	9.77
Class III— Based on net assets of $4,461,808 and 468,016 shares outstanding, 100 million shares authorized, $0.10 par value	$	9.53

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock  Advantage  Large Cap  Value V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	9,279
Dividends — unaffiliated		1,240,549
Securities lending income — affiliated — net		4,709
Foreign taxes withheld		(168)
Total investment income		1,254,369
EXPENSES
Investment advisory		351,160
Transfer agent — class specific		95,630
Accounting services		26,336
Professional		23,986
Custodian		12,977
Distribution — class specific		9,071
Directors and Officer		6,914
Printing		3,477
Transfer agent		2,344
Board realignment and consolidation		939
Miscellaneous		2,528
Total expenses		535,362
Less:
Fees waived and/or reimbursed by the Manager		(148,761)
Transfer agent fees waived and/or reimbursed — class specific		(95,621)
Total expenses after fees waived and/or reimbursed		290,980
Net investment income		963,389
REALIZED AND UNREALIZED GAIN
Net realized gain from:
Investments — affiliated		1,468
Investments — unaffiliated		2,129,662
Futures contracts		172,034
		2,303,164
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		112
Investments — unaffiliated		10,336,280
Futures contracts		18,268
		10,354,660
Net realized and unrealized gain		12,657,824
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	13,621,213

See notes to financial statements.

FINANCIAL STATEMENTS 11

Statements of Changes in Net Assets

	BlackRock Advantage Large Cap Value V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	963,389	$	1,942,732
Net realized gain		2,303,164		8,743,207
Net change in unrealized appreciation (depreciation)		10,354,660		(18,305,420)
Net increase (decrease) in net assets resulting from operations		13,621,213		(7,619,481)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		—		(11,110,415)
Class II		—		(700,196)
Class III		—		(534,460)
Decrease in net assets resulting from distributions to shareholders		—		(12,345,071)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(5,272,230)		(1,956,471)
NET ASSETS
Total increase (decrease) in net assets		8,348,983		(21,921,023)
Beginning of period		87,373,854		109,294,877
End of period	$	95,722,837	$	87,373,854

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Value V.I. Fund
	Class I
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018			2017			2016			2015			2014
Net asset value, beginning of period	$	8.40	$	10.63		$	12.06		$	11.49		$	12.74		$	13.22
Net investment income(a)		0.10		0.20	(b)		0.20			0.15			0.14			0.15
Net realized and unrealized gain (loss)		1.23		(1.08	)		1.86			1.41			(0.36	)		1.47
Net increase (decrease) from investment operations		1.33		(0.88	)		2.06			1.56			(0.22	)		1.62
Distributions(c)
From net investment income		—		(0.21	)		(0.21	)		(0.16	)		(0.15	)		(0.16	)
From net realized gain		—		(1.14	)		(3.28	)		(0.83	)		(0.88	)		(1.94	)
Total distributions		—		(1.35	)		(3.49	)		(0.99	)		(1.03	)		(2.10	)
Net asset value, end of period	$	9.73	$	8.40		$	10.63		$	12.06		$	11.49		$	12.74
Total Return(d)
Based on net asset value		15.83%(e)		(8.20)%			17.22%			13.60%			(1.72)%			12.22%
Ratios to Average Net Assets(f)
Total expenses		1.12%(g)		1.17%			1.17%			1.09%			1.08%			1.08%
Total expenses after fees waived and/or reimbursed		0.60%(g)		0.61%			0.71%			0.82%			0.77%			0.77%
Net investment income		2.08%(g)		1.90%(b)			1.57%			1.29%			1.14%			1.10%
Supplemental Data
Net assets, end of period (000)	$	86,053	$	78,685		$	99,213		$	92,795		$	93,983		$	109,570
Portfolio turnover rate		80%		164%			168%			47%			29%			35%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.09%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19       (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		—%		0.00%		0.01%		—%		—%		—%

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 13

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Value V.I. Fund
	Class II
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018			2017			2016			2015			2014
Net asset value, beginning of period	$	8.44	$	10.67		$	12.09		$	11.52		$	12.77		$	13.25
Net investment income(a)		0.09		0.19	(b)		0.18			0.13			0.12			0.13
Net realized and unrealized gain (loss)		1.24		(1.09	)		1.86			1.40			(0.36	)		1.46
Net increase (decrease) from investment operations		1.33		(0.90	)		2.04			1.53			(0.24	)		1.59
Distributions(c)
From net investment income		—		(0.19	)		(0.18	)		(0.13	)		(0.13	)		(0.13)
From net realized gain		—		(1.14	)		(3.28	)		(0.83	)		(0.88	)		(1.94)
Total distributions		—		(1.33	)		(3.46	)		(0.96	)		(1.01	)		(2.07)
Net asset value, end of period	$	9.77	$	8.44		$	10.67		$	12.09		$	11.52		$	12.77
Total Return(d)
Based on net asset value		15.76%(e)		(8.37)%			17.06%			13.35%			(1.96)%			11.94%
Ratios to Average Net Assets(f)
Total expenses		1.27%(g)		1.32%			1.32%			1.27%			1.19%			1.23%
Total expenses after fees waived and/or reimbursed		0.75%(g)		0.76%			0.88%			1.03%			0.96%			0.97%
Net investment income		1.93%(g)		1.74%(b)			1.38%			1.10%			0.95%			0.92%
Supplemental Data
Net assets, end of period (000)	$	5,208	$	4,813		$	7,063		$	6,060		$	5,680		$	4,002
Portfolio turnover rate		80%		164%			168%			47%			29%			35%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.10%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19   (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		—%		0.00%		0.01%		—%		—%		—%

^(g)  Annualized.

See notes to financial statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage Large Cap Value V.I. Fund
	Class III
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018			2017			2016			2015			2014
Net asset value, beginning of period	$	8.24	$	10.46		$	11.92		$	11.37		$	12.61		$	13.12
Net investment income(a)		0.08		0.18	(b)		0.16			0.11			0.10			0.10
Net realized and unrealized gain (loss)		1.21		(1.07	)		1.83			1.38			(0.36	)		1.44
Net increase (decrease) from investment operations		1.29		(0.89	)		1.99			1.49			(0.26	)		1.54
Distributions(c)
From net investment income		—		(0.19	)		(0.17	)		(0.11	)		(0.10	)		(0.11)
From net realized gain		—		(1.14	)		(3.28	)		(0.83	)		(0.88	)		(1.94)
Total distributions		—		(1.33	)		(3.45	)		(0.94	)		(0.98	)		(2.05)
Net asset value, end of period	$	9.53	$	8.24		$	10.46		$	11.92		$	11.37		$	12.61
Total Return(d)
Based on net asset value		15.66%(e)		(8.46)%			16.86%			13.17%			(2.11)%			11.72%
Ratios to Average Net Assets(f)
Total expenses		1.38%(g)		1.42%			1.43%			1.35%			1.34%			1.32%
Total expenses after fees waived and/or reimbursed		0.85%(g)		0.86%			0.99%			1.18%			1.13%			1.13%
Net investment income		1.81%(g)		1.70%(b)			1.26%			0.92%			0.78%			0.73%
Supplemental Data
Net assets, end of period (000)	$	4,462	$	3,876		$	3,019		$	1,930		$	1,810		$	1,931
Portfolio turnover rate		80%		164%			168%			47%			29%			35%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.09%, respectively, resulting from anon-recurring dividend.

^(c) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19     (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		—%		0.00%		0.01%		—%		—%		—%

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 15

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Advantage Large Cap Value V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount (b)
Citigroup Global Markets, Inc.	$	2,463,209	$	(2,462,548	)	$	661
Credit Suisse Securities (USA) LLC		211,582		(211,582	)		—
Deutsche Bank Securities, Inc.		709		(709	)		—
Fidelity Investments		63,435		(63,435	)		—
Goldman Sachs & Co.		636,555		(636,555	)		—
Morgan Stanley & Co. LLC		1,120,802		(1,120,802	)		—
	$	4,496,292	$	(4,495,631	)	$	661

^(a)  Cash collateral with a value of $4,518,751 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

^(b)  The market value of the loaned securities is determined as of June 30, 2019. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange orover-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.75	%
$1 Billion - $3 Billion		0.71
$3 Billion - $5 Billion		0.68
$5 Billion - $10 Billion		0.65
Greater than $10 Billion		0.64

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

	Distribution Fees
Class II		0.15%
Class III		0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	3,922
Class III		5,149
	$	9,071

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent – class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations. For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	86,025
Class II		5,351
Class III		4,254
	$	95,630

Expense Limitations, Waivers and Reimbursements: The Manager has agreed to voluntarily waive 0.05% of its investment advisory fee payable by the Fund. This voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived and/or reimbursed was $23,411.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $291.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $562 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.00	%
Class II	0.05
Class III	0.11

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements  (unaudited) (continued)

The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2020 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$            86,025
Class II		5,346
Class III		4,250
Total		$            95,621

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	0.60	%
Class II	0.75
Class III	0.85

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived and/or reimbursed $125,059 and $3,571, which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statement of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04% . The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $1,478 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the six months ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $73,970,129 and $78,618,276, respectively.

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	95,643,334
Gross unrealized appreciation	$	6,121,130
Gross unrealized depreciation		(2,059,540)
Net unrealized appreciation	$	4,061,590

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements  (unaudited) (continued)

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended     12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		125,601	$	1,160,041		287,840	$	3,023,352
Shares issued in reinvestment of distributions		—		—		1,312,428		11,110,414
Shares redeemed		(648,947)		(6,058,113)		(1,559,379)		(16,653,694)
Net increase (decrease)		(523,346)	$	(4,898,072)		40,889	$	(2,519,928)
Class II
Shares sold		62,016	$	586,114		246,535	$	2,598,348
Shares issued in reinvestment of distributions		—		—		81,856		700,197
Shares redeemed		(99,116)		(935,226)		(419,810)		(4,482,072)
Net decrease		(37,100)	$	(349,112)		(91,419)	$	(1,183,527)
Class III
Shares sold		86,784	$	813,656		190,480	$	1,969,290
Shares issued in reinvestment of distributions		—		—		64,588		534,460
Shares redeemed		(89,155)		(838,702)		(73,219)		(756,766)
Net increase (decrease)		(2,371)	$	(25,046)		181,849	$	1,746,984
Total Net Increase (Decrease)		(562,817)	$	(5,272,230)		131,319	$	(1,956,471)

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report  

Portfolio Abbreviation

S&P S&P Global Ratings

GLOSSARYOF TERMS USEDINTHIS REPORT 23

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Advantage U.S. Total Market V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund

Investment Objective

BlackRock Advantage U.S. Total Market V.I. Fund’s (the “Fund”) investment objective is to seek long-term growth of capital.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Russell 3000^® Index.

What factors influenced performance?

Following several months of strong relative performance, the Fund gave back in June much of the excess return relative to the benchmark that it had generated in prior months. June was characterized by a sharp market rebound and a continuously changing environment in which investors sporadically and aggressively sought more risky cyclical exposure. Despite a strongsix-month period overall, several trend-based insights acted as a drag on relative performance during the month. However, over thesix-month period, it was primarily the portfolio’s fundamental value insights that hindered relative Fund returns. More traditional value metrics were particularly weak, reflecting investors’ continued preference for high-growth opportunities over more value-oriented areas of the market. While the portfolio’s fundamental quality insights were broadly additive, certain measures of operating and asset efficiency detracted from relative performance. Given the continued decline in U.S. interest rates, a quality and risk management signal positioning against companies with higher degrees of leverage also detracted. Lastly, among the portfolio’s macro thematic insights, a signal that measures sensitivity to changes in foreign exchange rates was challenged given the heightened volatility across currency markets.

Despite periods of volatility, including a market drawdown in May, stronger-than-expected corporate earnings, an overall easing of global trade tensions and increasingly dovish central bank rhetoric supported the market throughout the first half of the year. At the portfolio level, sentiment- and trend-based stock selection insights drove positive relative performance in the period, especially in the consumer staples and real estate sectors. Among this group of insights, several signals using machine learned text-analysis proved beneficial in helping to identify longer-term trends in company fundamentals as well as to gauge management sentiment. A signal identifying investor sentiment based on short positions of hedge funds further contributed, a reversal of the signal’s underperformance in the fourth quarter of 2018 and unsurprising given the relative success of hedge funds throughout the period. Additionally, an insight that evaluates the sentiment of informed bond investors bolstered relative portfolio performance. The signal provides an alternative lens into company quality and often exhibits defensive properties, which were particularly beneficial in May as investors sought these characteristics. While the portfolio’s fundamental insights detracted in aggregate, there were certain bright spots among the Fund’s quality signals, especially among alternative measures of quality. In particular, a signal that evaluates companies based on a series of long-term sustainability measures provided stability to the portfolio amid increased market volatility.

Describe recent portfolio activity.

Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. However, a number of new stock selection insights were added to the portfolio. Among these, a new insight was added that captures the location of hotel booking trends and invests in related stocks most sensitive to those areas.

The Fund also added a machine-learned signal that pulls from several alternative data sources to try and more accurately gauge consumer transactions. Lastly, in the second quarter of 2019, the investment adviser improved upon an existing signal, expanding the data sources used to identify trends in company job hiring as an indication of future company growth.

Describe portfolio positioning at period end.

Relative to the Russell 3000^® Index, the Fund was positioned essentially neutrally from a sector perspective. The Fund had slight overweight positions in the utilities and industrials sectors and slight underweight positions in the consumer discretionary and energy sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Advantage U.S. Total Market V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns(a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		18.52	%		8.29	%		7.44	%		14.52	%
Class II(b)(c)		18.42			8.11			7.26			14.34
Class III(b)(c)		18.42			8.06			7.22			14.28
Russell 3000®Index(d)		18.71			8.98			10.19			14.67

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund seeks to invest at least 80% of its net assets (plus the amount of any borrowings for investments purposes) in equity securities of U.S. issuers and derivatives that have similar economic characteristics to such securities. The Fund’s total returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Value Opportunities V.I. Fund”.

^(d)  An index that measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,185.20	$	2.98	$	1,000.00	$	1,022.07	$	2.76		0.55	%
Class II		1,000.00		1,184.20		3.79		1,000.00		1,021.32		3.51		0.70
Class III		1,000.00		1,184.20		4.33		1,000.00		1,020.83		4.01		0.80

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b) For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Information Technology		22	%
Health Care		14
Financials		14
Industrials		11
Consumer Discretionary		9
Communication Services		8
Consumer Staples		6
Utilities		4
Real Estate		4
Energy		4
Materials		3
Short-Term Securities		5
Liabilities in Excess of Other Assets		(4	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 99.0%
Aerospace & Defense — 2.0%
Curtiss-Wright Corp		858	$	109,077
Harris Corp.		6,735		1,273,791
Lockheed Martin Corp.		2,224		808,513
Raytheon Co.		7,627		1,326,183
				3,517,564
Air Freight & Logistics — 0.1%
Forward Air Corp.		3,083		182,359
Automobiles — 0.1%
Thor Industries, Inc.(a)		3,625		211,881
Banks — 4.3%
Bank of America Corp.		29,604		858,516
Citizens Financial Group, Inc.		48,216		1,704,918
East West Bancorp, Inc.		2,559		119,684
First Republic Bank		7,870		768,505
JPMorgan Chase & Co.		23,457		2,622,493
Republic First Bancorp, Inc.(b)		25,113		123,305
Sandy Spring Bancorp, Inc.		2,013		70,213
Wells Fargo & Co.		11,184		529,227
Western Alliance Bancorp(b)		10,040		448,989
Zions Bancorp		2,888		132,790
				7,378,640
Beverages — 1.0%
Brown-Forman Corp., Class B		970		53,767
Molson Coors Brewing Co., Class B		1,022		57,232
Monster Beverage Corp.(b)		2,633		168,064
PepsiCo, Inc.		11,343		1,487,408
				1,766,471
Biotechnology — 4.5%
AbbVie, Inc.		13,656		993,064
Amgen, Inc.		13,790		2,541,221
Celgene Corp.(b)		4,151		383,719
Genomic Health, Inc.(b)		2,387		138,852
Gilead Sciences, Inc.		35,855		2,422,364
Regeneron Pharmaceuticals, Inc.(b)		2,166		677,958
Vertex Pharmaceuticals, Inc.(b)		3,214		589,383
				7,746,561
Building Products — 0.4%
Allegion plc		6,093		673,581
Capital Markets — 2.7%
Charles Schwab Corp. (The)		55,416		2,227,169
Evercore, Inc., Class A		3,503		310,261
Morgan Stanley		23,302		1,020,861
TD Ameritrade Holding Corp.		20,372		1,016,970
Westwood Holdings Group, Inc.(a)		2,875		101,200
				4,676,461
Chemicals — 1.7%
Air Products & Chemicals, Inc.		8,534		1,931,842
Dow, Inc.		10,885		536,739
Ecolab, Inc.		178		35,144
Innospec, Inc.		1,125		102,645
Linde plc		722		144,978
LyondellBasell Industries NV, Class A		1,606		138,325
				2,889,673
Commercial Services & Supplies — 0.3%
Waste Connections, Inc.		6,052		578,450

Security	Shares		Value
Communications Equipment — 1.1%
Acacia Communications, Inc.(b)		2,165	$	102,101
Calix, Inc.(b)		8,850		58,056
Ciena Corp.(b)		12,402		510,094
Cisco Systems, Inc.		22,027		1,205,538
				1,875,789
Construction & Engineering — 0.5%
Comfort Systems USA, Inc.		17,328		883,555
Consumer Finance — 1.4%
American Express Co.		9,089		1,121,946
Discover Financial Services		16,007		1,241,983
Regional Management Corp.(a)(b)		5,246		138,337
				2,502,266
Containers & Packaging — 1.0%
Westrock Co.		45,548		1,661,136
Diversified Consumer Services — 0.6%
frontdoor, Inc.(b)		2,863		124,684
H&R Block, Inc.(a)		28,880		846,184
				970,868
Diversified Financial Services — 1.9%
Berkshire Hathaway, Inc., Class B(b)		15,472		3,298,166
Diversified Telecommunication Services — 1.3%
Verizon Communications, Inc.		39,338		2,247,380
Electric Utilities — 2.4%
Alliant Energy Corp.		19,982		980,716
El Paso Electric Co.		1,187		77,630
IDACORP, Inc.		12,513		1,256,681
Pinnacle West Capital Corp.		9,985		939,489
Xcel Energy, Inc.		15,480		920,905
				4,175,421
Electrical Equipment — 1.7%
AMETEK, Inc.		3,077		279,515
Generac Holdings, Inc.(a)(b)		1,116		77,461
Hubbell, Inc.		4,810		627,224
Rockwell Automation, Inc.		11,576		1,896,496
				2,880,696
Electronic Equipment, Instruments & Components — 1.1%
CDW Corp.		8,059		894,549
Fitbit, Inc., Class A(b)		50,440		221,936
Jabil, Inc.		1,613		50,971
National Instruments Corp.		16,618		697,790
Tech Data Corp.(b)		722		75,521
				1,940,767
Energy Equipment & Services — 0.6%
Archrock, Inc.		27,487		291,362
Halliburton Co.		24,312		552,855
Helmerich & Payne, Inc.		310		15,692
ProPetro Holding Corp.(b)		7,385		152,870
				1,012,779
Entertainment — 0.7%
Activision Blizzard, Inc.		2,929		138,249
IMAX Corp.(b)		2,982		60,236
Netflix, Inc.(b)		990		363,647
Take-Two Interactive Software, Inc.(b)		1,927		218,772
Viacom, Inc., Class A		1,965		67,007
Viacom, Inc., Class B		10,838		323,731
Zynga, Inc., Class A(b)		18,498		113,393
				1,285,035

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Equity Real Estate Investment Trusts (REITs) — 4.2%
Boston Properties, Inc.		5,245	$	676,605
Equity LifeStyle Properties, Inc.		2,246		272,530
Outfront Media, Inc.		8,812		227,261
Park Hotels & Resorts, Inc.		32,196		887,322
Prologis, Inc.		27,165		2,175,916
RLJ Lodging Trust		25,928		459,963
Ryman Hospitality Properties, Inc.		5,502		446,157
Simon Property Group, Inc.		12,777		2,041,254
				7,187,008
Food & Staples Retailing — 0.3%
Costco Wholesale Corp.		390		103,062
Performance Food Group Co.(b)		9,279		371,438
Walmart, Inc.		674		74,470
				548,970
Food Products — 2.2%
Archer-Daniels-Midland Co.		31,803		1,297,562
General Mills, Inc.		20,902		1,097,773
Hershey Co. (The)		9,218		1,235,489
JM Smucker Co. (The)		1,358		156,428
				3,787,252
Gas Utilities — 0.1%
Southwest Gas Holdings, Inc.(a)		1,131		101,360
Health Care Equipment & Supplies — 2.3%
Danaher Corp.		119		17,007
DexCom, Inc.(b)		1,712		256,526
Medtronic plc		20,454		1,992,015
Stryker Corp.		8,203		1,686,373
				3,951,921
Health Care Providers & Services — 1.7%
AmerisourceBergen Corp.(a)		6,766		576,869
Anthem, Inc.		1,060		299,143
Humana, Inc.		708		187,832
McKesson Corp.		2,492		334,900
UnitedHealth Group, Inc.		6,007		1,465,768
WellCare Health Plans, Inc.(b)		293		83,526
				2,948,038
Health Care Technology — 0.6%(b)
Medidata Solutions, Inc.		337		30,502
Veeva Systems, Inc., Class A		5,782		937,320
				967,822
Hotels, Restaurants & Leisure — 2.6%
Choice Hotels International, Inc.(a)		613		53,337
Darden Restaurants, Inc.		16,536		2,012,927
Domino’s Pizza, Inc.		1,919		534,020
Extended Stay America, Inc.		45,573		769,728
Las Vegas Sands Corp.		10,457		617,904
Royal Caribbean Cruises Ltd.		2,452		297,207
Vail Resorts, Inc.		616		137,479
				4,422,602
Household Products — 1.0%
Church & Dwight Co., Inc.		20,784		1,518,479
Colgate-Palmolive Co.		1,951		139,828
Kimberly-Clark Corp.		179		23,857
				1,682,164
Industrial Conglomerates — 0.4%
Roper Technologies, Inc.		1,959		717,503

Security	Shares		Value
Insurance — 3.6%
Allstate Corp. (The)		14,138	$	1,437,693
Arthur J Gallagher & Co.		2,162		189,370
First American Financial Corp.		7,740		415,638
Kinsale Capital Group, Inc.		2,501		228,792
Lincoln National Corp.		2,752		177,366
MetLife, Inc.		5,267		261,612
Prudential Financial, Inc.		17,866		1,804,466
Travelers Cos., Inc. (The)		6,887		1,029,744
Unum Group		18,304		614,099
				6,158,780
Interactive Media & Services — 3.2%(b)
Alphabet, Inc., Class A		30		32,484
Alphabet, Inc., Class C		1,781		1,925,101
Care.com, Inc.		5,642		61,949
Cargurus, Inc.		5,262		190,011
Facebook, Inc., Class A		16,311		3,148,023
Pinterest, Inc., Class A		4,834		131,581
				5,489,149
Internet & Direct Marketing Retail — 3.3%(b)
Amazon.com, Inc.		2,900		5,491,527
Etsy, Inc.		4,923		302,125
				5,793,652
IT Services — 6.7%
Automatic Data Processing, Inc.		14,472		2,392,656
Booz Allen Hamilton Holding Corp.		6,487		429,504
Fidelity National Information Services, Inc.		8,962		1,099,458
First Data Corp., Class A(b)		3,176		85,974
GoDaddy, Inc., Class A(b)		14,911		1,046,007
International Business Machines Corp.		1,250		172,375
Mastercard, Inc., Class A(a)		604		159,776
Paychex, Inc.(a)		23,496		1,933,486
PayPal Holdings, Inc.(b)		3,861		441,930
Square, Inc., Class A(b)		10,480		760,114
Unisys Corp.(b)		12,078		117,398
VeriSign, Inc.(b)		7,890		1,650,273
Visa, Inc., Class A		7,331		1,272,295
				11,561,246
Life Sciences Tools & Services — 0.3%
Bruker Corp.		870		43,457
Mettler-Toledo International, Inc.(b)		180		151,200
Thermo Fisher Scientific, Inc.		956		280,758
				475,415
Machinery — 4.0%
AGCO Corp.(a)		3,713		288,017
Crane Co.		20,299		1,693,749
IDEX Corp.		2,066		355,641
Meritor, Inc.(b)		12,331		299,027
Oshkosh Corp.		5,763		481,153
PACCAR, Inc.		29,600		2,121,136
Snap-on, Inc.(a)		10,506		1,740,214
				6,978,937
Media — 2.9%
Comcast Corp., Class A		24,929		1,053,998
Fox Corp., Class A(b)		12,856		471,044
Fox Corp., Class B(a)(b)		7,353		268,605
Gray Television, Inc.(a)(b)		15,522		254,406
Interpublic Group of Cos., Inc. (The)		87,306		1,972,243
Liberty Media Corp.-Liberty SiriusXM, Class A(b)		3,763		142,279
MSG Networks, Inc., Class A(b)		5,565		115,418
Sinclair Broadcast Group, Inc., Class A		6,586		353,207

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Media (continued)
Sirius XM Holdings, Inc.(a)		85,549	$	477,363
				5,108,563
Multiline Retail — 0.7%
Target Corp.		13,075		1,132,426
Multi-Utilities — 0.7%
Black Hills Corp.		1,401		109,516
Consolidated Edison, Inc.		13,096		1,148,257
				1,257,773
Oil, Gas & Consumable Fuels — 3.0%
Anadarko Petroleum Corp.		1,891		133,429
Antero Midstream Corp.		7,414		84,964
Chevron Corp.		10,019		1,246,764
ConocoPhillips		38,461		2,346,121
Exxon Mobil Corp.		7,475		572,809
Phillips 66		7,164		670,121
Teekay Corp.		5,454		18,762
Williams Cos., Inc. (The)		7,476		209,627
				5,282,597
Paper & Forest Products — 0.1%
Boise Cascade Co.		4,900		137,739
Personal Products — 0.5%
Estee Lauder Cos., Inc. (The), Class A		2,463		451,000
Herbalife Nutrition Ltd.(b)		6,513		278,496
USANA Health Sciences, Inc.(b)		1,457		115,729
				845,225
Pharmaceuticals — 5.0%
Bristol-Myers Squibb Co.		21,656		982,100
Eli Lilly & Co.		2,766		306,445
Jazz Pharmaceuticals plc(b)		151		21,526
Johnson & Johnson		28,470		3,965,302
Merck & Co., Inc.		37,861		3,174,645
Pfizer, Inc.		6,064		262,692
				8,712,710
Professional Services — 1.0%
CoStar Group, Inc.(b)		577		319,693
Insperity, Inc.		9,858		1,204,056
TriNet Group, Inc.(b)		4,301		291,608
				1,815,357
Road & Rail — 0.2%
Landstar System, Inc.(a)		2,422		261,552
Uber Technologies, Inc.(a)(b)		1,699		78,800
Universal Logistics Holdings, Inc.		3,296		74,061
				414,413
Semiconductors & Semiconductor Equipment — 2.5%
Broadcom, Inc.		1,498		431,214
Cirrus Logic, Inc.(b)		27,014		1,180,512
Intel Corp.		5,025		240,547
MaxLinear, Inc.(b)		24,117		565,302
NVIDIA Corp.		1,137		186,730
Power Integrations, Inc.		255		20,446
QUALCOMM, Inc.		1,262		96,000
Texas Instruments, Inc.		5,983		686,609
Xilinx, Inc.		7,486		882,749
				4,290,109
Software — 7.2%
Adobe, Inc.(b)		6,671		1,965,610
Dropbox, Inc., Class A(b)		3,133		78,482
Intuit, Inc.		3,172		828,939

Security	Shares		Value
Software (continued)
Microsoft Corp.		29,812	$	3,993,616
Paylocity Holding Corp.(b)		2,611		244,964
RingCentral, Inc., Class A(b)		7,698		884,654
salesforce.com, Inc.(b)		16,366		2,483,213
ServiceNow, Inc.(b)		5,412		1,485,973
Tableau Software, Inc., Class A(b)		420		69,728
Workday, Inc., Class A(b)		2,067		424,934
				12,460,113
Specialty Retail — 0.7%
Advance Auto Parts, Inc.		3,420		527,159
Asbury Automotive Group, Inc.(b)		411		34,664
Lithia Motors, Inc., Class A(a)		3,633		431,528
Penske Automotive Group, Inc.(a)		1,064		50,327
Sonic Automotive, Inc., Class A		4,824		112,640
				1,156,318
Technology Hardware, Storage & Peripherals — 3.5%
Apple, Inc.		19,847		3,928,118
Dell Technologies, Inc., Class C(b)		12,470		633,476
HP, Inc.		68,262		1,419,167
				5,980,761
Textiles, Apparel & Luxury Goods — 1.4%
Lululemon Athletica, Inc.(b)		5,525		995,660
NIKE, Inc., Class B		13,629		1,144,154
VF Corp.		3,622		316,382
				2,456,196
Thrifts & Mortgage Finance — 0.2%
Essent Group Ltd.(b)		7,972		374,604
Tobacco — 0.4%
Philip Morris International, Inc.		9,162		719,492
Trading Companies & Distributors — 0.1%
WW Grainger, Inc.		887		237,920
Water Utilities — 1.0%
American Water Works Co., Inc		14,778		1,714,248
Wireless Telecommunication Services — 0.0%
Telephone & Data Systems, Inc		1,811		55,054
Total Common Stocks — 99.0% (Cost: $162,809,851)				171,278,936
Total Long-Term Investments — 99.0% (Cost: $162,809,851)				171,278,936
Short-Term Securities — 4.5%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%		1,462,670		1,462,670
SL Liquidity Series, LLC, Money Market Series, 2.55%(d)		6,267,134		6,269,015
Total Short-Term Securities — 4.5% (Cost: $7,731,685)				7,731,685
Total Investments — 103.5% (Cost: $170,541,536)				179,010,621
Liabilities in Excess of Other Assets — (3.5)%				(5,973,525	)
Net Assets — 100.0%			$	173,037,096

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Annualized7-day yield as of period end.

^(d)  Security was purchased with the cash collateral from loaned securities.

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		2,833,530		(1,370,860	)		1,462,670	$	1,462,670	$	24,833		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		6,092,861		174,273			6,267,134		6,269,015		12,187	(b)		3,523		219
								$	7,731,685	$	37,020		$	3,523	$	219

^(a) Includes net capital gain distributions, if applicable.

^(b) Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
S&P 500E-Mini Index		14		09/20/19	$	2,061	$	23,908

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	23,908	$	—	$	—	$	—	$	23,908

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	358,351	$	—	$	—	$	—	$	358,351
Net Change in Unrealized Appreciation
(Depreciation) on:
Futures contracts		—		—		72,379		—		—		—		72,379

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$      2,378,425

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Advantage U.S. Total Market V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	171,278,936	$	—	$	—	$	171,278,936
Short-Term Securities		1,462,670		—		—		1,462,670
Subtotal	$	172,741,606	$	—	$	—	$	172,741,606
Investments valued at NAV(b)								6,269,015
Total Investments							$	179,010,621
Derivative Financial Instruments(c)
Assets:
Equity contracts	$	23,908	$	—	$	—	$	23,908

^(a)  See above Schedule of Investments for values in each industry. Investments categorized as Level 1 are included in industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock  Advantage U.S.  Total Market V.I.  Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $6,166,749) (cost — $162,809,851)	$	171,278,936
Investments at value — affiliated (cost — $7,731,685)		7,731,685
Cash pledged for futures contracts		77,000
Foreign currency at value (cost — $785)		745
Receivables:
Investments sold		3,384,676
Securities lending income — affiliated		3,821
Capital shares sold		743
Dividends — affiliated		3,355
Dividends — unaffiliated		189,144
Variation margin on futures contracts		6,974
Prepaid expenses		2,122
Total assets		182,679,201
LIABILITIES
Cash collateral on securities loaned at value		6,260,238
Payables:
Investments purchased		2,987,148
Capital shares redeemed		42,137
Distribution fees		1,570
Investment advisory fees		77,948
Directors’ and Officer’s fees		5,870
Other affiliates		499
Other accrued expenses		266,695
Total liabilities		9,642,105
NET ASSETS	$	173,037,096
NET ASSETS CONSIST OF
Paid-in capital	$	151,290,280
Accumulated earnings		21,746,816
NET ASSETS	$	173,037,096
NET ASSET VALUE
Class I— Based on net assets of $164,204,264 and 6,562,190 shares outstanding, 100 million shares authorized, $0.10 par value	$	25.02
Class II— Based on net assets of $2,955,058 and 118,465 shares outstanding, 100 million shares authorized, $0.10 par value	$	24.94
Class III— Based on net assets of $5,877,774 and 338,593 shares outstanding, 10 million shares authorized, $0.10 par value	$	17.36

See notes to financial statements.

FINANCIAL STATEMENTS 11

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock  Advantage U.S.  Total Market V.I.  Fund
INVESTMENT INCOME
Dividends — affiliated	$         24,833
Dividends — unaffiliated	2,371,519
Securities lending income — affiliated — net	12,187
Foreign taxes withheld	(244)
Total investment income	2,408,295
EXPENSES
Investment advisory	903,743
Transfer agent — class specific	207,699
Accounting services	31,164
Custodian	22,118
Professional	20,662
Printing	12,730
Distribution — class specific	9,236
Directors and Officer	8,099
Transfer agent	2,344
Board realignment and consolidation	1,567
Miscellaneous	3,624
Total expenses	1,222,986
Less:
Fees waived and/or reimbursed by the Manager	(341,596)
Transfer agent fees waived and/or reimbursed — class specific	(207,531)
Total expenses after fees waived and/or reimbursed	673,859
Net investment income	1,734,436
REALIZED AND UNREALIZED GAIN
Net realized gain from:
Investments — affiliated	3,523
Investments — unaffiliated	13,453,488
Futures contracts	358,351
	13,815,362
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated	219
Investments — unaffiliated	24,658,973
Foreign currency translations	31
Futures contracts	72,379
	24,731,602
Net realized and unrealized gain	38,546,964
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$   40,281,400

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets   

	BlackRock Advantage U.S. Total Market V.I. Fund
	Six Months Ended 06/30/19 (unaudited)	Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$      1,734,436	$      3,404,542
Net realized gain	13,815,362	19,918,170
Net change in unrealized appreciation (depreciation)	24,731,602	(37,960,478)
Net increase (decrease) in net assets resulting from operations	40,281,400	(14,637,766)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I	—	(26,509,174)
Class II	—	(326,810)
Class III	—	(830,484)
Decrease in net assets resulting from distributions to shareholders	—	(27,666,468)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions	(94,035,145)	(1,231,558)
NET ASSETS
Total decrease in net assets	(53,753,745)	(43,535,792)
Beginning of period	226,790,841	270,326,633
End of period	$    173,037,096	$    226,790,841

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 13

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Advantage U.S. Total Market V.I. Fund
	Class I
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018			2017			2016		2015			2014
Net asset value, beginning of period	$	21.11	$	25.63		$	27.93		$	23.24	$	26.96		$	27.48
Net investment income(a)		0.17		0.34			0.26	(b)		0.07		0.07			0.10
Net realized and unrealized gain (loss)		3.74		(2.00)			3.60			5.43		(1.80)			1.35
Net increase (decrease) from investment operations		3.91		(1.66	)		3.86			5.50		(1.73	)		1.45
Distributions(c)
From net investment income		—		(0.34)			(0.27)			(0.07)		(0.07)			(0.08)
From net realized gain		—		(2.52)			(5.89)			(0.74)		(1.92)			(1.89)
From return of capital		—		—			—			—		(0.00	)(d)		—
Total distributions		—		(2.86)			(6.16)			(0.81)		(1.99)			(1.97)
Net asset value, end of period	$	25.02	$	21.11		$	25.63		$	27.93	$	23.24		$	26.96
Total Return(e)
Based on net asset value		18.52%(f)		(6.39)%			14.05%			23.65%		(6.61)%			5.22%
Ratios to Average Net Assets
Total expenses		1.00%(g)		1.03%			1.05%			1.01%		1.01%			1.02%
Total expenses after fees waived and/or reimbursed		0.55%(g)		0.55%			0.71%			0.92%		0.90%			0.90%
Net investment income		1.45%(g)		1.31%			0.91%(b)			0.28%		0.26%			0.37%
Supplemental Data
Net assets, end of period (000)	$	164,204	$	218,976		$	261,872		$	250,567	$	220,681		$	260,860
Portfolio turnover rate		75%		150%			179%			78%		61%			57%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.05 per share and 0.18%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Amount is greater than $(0.005) per share.

^(e)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Annualized.

See notes to financial statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage U.S. Total Market V.I. Fund
	Class II
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Net asset value, beginning of period	$	21.06	$	25.57	$	27.88	$	23.21	$	26.91	$	27.43
Net investment income(a)		0.15		0.30		0.20(b)		0.03		0.02		0.05
Net realized and unrealized gain (loss)		3.73		(1.99)		3.60		5.41		(1.77)		1.34
Net increase (decrease) from investment operations		3.88		(1.69)		3.80		5.44		(1.75)		1.39
Distributions(c)
From net investment income		—		(0.30)		(0.22)		(0.03)		(0.03)		(0.02)
From net realized gain		—		(2.52)		(5.89)		(0.74)		(1.92)		(1.89)
From return of capital		—		—		—		—		(0.00)(d)		—
Total distributions		—		(2.82)		(6.11)		(0.77)		(1.95)		(1.91)
Net asset value, end of period	$	24.94	$	21.06	$	25.57	$	27.88	$	23.21	$	26.91
Total Return(e)
Based on net asset value		18.42%(f)		(6.53)%		13.85%		23.40%		(6.76)%		5.03%
Ratios to Average Net Assets
Total expenses		1.19%(g)		1.22%		1.22%		1.20%		1.18%		1.19%
Total expenses after fees waived and/or reimbursed		0.70%(g)		0.70%		0.88%		1.09%		1.07%		1.07%
Net investment income		1.28%(g)		1.16%		0.72%(b)		0.10%		0.08%		0.20%
Supplemental Data
Net assets, end of period (000)	$	2,955	$	2,742	$	3,131	$	3,351	$	3,120	$	3,764
Portfolio turnover rate		75%		150%		179%		78%		61%		57%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.05 per share and 0.17%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Amount is greater than $(0.005) per share.

^(e)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 15

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage U.S. Total Market V.I. Fund
	Class III
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Net asset value, beginning of period	$	14.66	$	18.74	$	21.89	$	18.36	$	21.73	$	22.50
Net investment income(a)		0.10		0.20		0.14(b)		0.01		0.01		0.04
Net realized and unrealized gain (loss)		2.60		(1.46)		2.82		4.29		(1.43)		1.11
Net increase (decrease) from investment operations		2.70		(1.26)		2.96		4.30		(1.42)		1.15
Distributions(c)
From net investment income		—		(0.30)		(0.22)		(0.03)		(0.03)		(0.03)
From net realized gain		—		(2.52)		(5.89)		(0.74)		(1.92)		(1.89)
From return of capital		—		—		—		—		(0.00)(d)		—
Total distributions		—		(2.82)		(6.11)		(0.77)		(1.95)		(1.92)
Net asset value, end of period	$	17.36	$	14.66	$	18.74	$	21.89	$	18.36	$	21.73
Total Return(e)
Based on net asset value		18.42%(f)		(6.65)%		13.83%		23.41%		(6.78)%		5.07%
Ratios to Average Net Assets
Total expenses		1.29%(g)		1.32%		1.32%		1.29%		1.29%		1.25%
Total expenses after fees waived and/or reimbursed		0.80%(g)		0.80%		0.95%		1.11%		1.09%		1.09%
Net investment income		1.18%(g)		1.06%		0.65%(b)		0.08%		0.06%		0.18%
Supplemental Data
Net assets, end of period (000)	$	5,878	$	5,073	$	5,324	$	6,184	$	6,152	$	8,002
Portfolio turnover rate		75%		150%		179%		78%		61%		57%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.04 per share and 0.17%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Amount is greater than $(0.005) per share.

^(e)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Annualized.

See notes to financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Advantage U.S. Total Market V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received(a)			Net Amount
Barclays Capital, Inc.	$	58,132	$	(58,132	)	$	—
Citigroup Global Markets, Inc.		2,718,105		(2,718,105	)		—
Credit Suisse Securities (USA) LLC		2,037,208		(2,037,208	)		—
Fidelity Investments		696,086		(696,086	)		—
Goldman Sachs & Co.		544,127		(544,127	)		—
JP Morgan Securities LLC		113,091		(113,091	)		—
	$	6,166,749	$	(6,166,749	)	$	—

^(a)  Cash collateral with a value of $6,260,238 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements  (unaudited) (continued)

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.75	%
$1 Billion - $3 Billion		0.71
$3 Billion - $5 Billion		0.68
$5 Billion - $10 Billion		0.65
Greater than $10 Billion		0.64

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates of 0.15% and 0.25% based based upon the average daily net assets attributable to Class II and Class III, respectively.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	2,195
Class III		7,041
	$	9,236

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations, which is shown as transfer agent — class specific in the Statement of Operations. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	199,062
Class II		2,954
Class III		5,683
	$	207,699

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $780.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $1,447 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.07	%
Class II	0.09
Class III	0.01

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Manager has agreed not to reduce or discontinue these contractual reimbursements through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$    117,555
Class II		1,634
Class III		5,395
		$    124,584

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	0.55	%
Class II	0.70
Class III	0.80

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived $340,816 and $82,947, which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statement of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $3,815 for securities lending agent services.

lnterfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the lnterfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements  (unaudited) (continued)

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $174,985,466 and $265,724,268, respectively.

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	171,473,302
Gross unrealized appreciation	$	10,904,081
Gross unrealized depreciation		(3,342,854	)
Net unrealized appreciation	$	7,561,227

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended     12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		87,992	$	2,089,872		305,871	$	8,001,770
Shares issued in reinvestment of distributions		—		—		1,251,143		26,509,174
Shares redeemed		(3,898,386)		(95,723,543)		(1,401,110)		(36,805,116)
Net increase (decrease)		(3,810,394)	$	(93,633,671)		155,904	$	(2,294,172)
Class II
Shares sold		365	$	8,056		2,590	$	64,883
Shares issued in reinvestment of distributions		—		—		15,465		326,810
Shares redeemed		(12,086)		(289,398)		(10,312)		(273,819)
Net increase (decrease)		(11,721)	$	(281,342)		7,743	$	117,874
Class III
Shares sold		26,114	$	423,416		55,977	$	1,051,459
Shares issued in reinvestment of distributions		—		—		56,279		830,484
Shares redeemed		(33,502)		(543,548)		(50,372)		(937,203)
Net increase (decrease)		(7,388)	$	(120,132)		61,884	$	944,740
Total Net Increase (Decrease)		(3,829,503)	$	(94,035,145)		225,531	$	(1,231,558)

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 23

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Basic Value V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Basic Value V.I. Fund

Investment Objective

BlackRock Basic Value V.I. Fund’s (the “Fund”) investment objective is to seek capital appreciation and, secondarily, income.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Russell 1000^® Value Index.

What factors influenced performance?

Stock selection in the consumer staples sector was the largest detractor from the Fund’s relative performance. In particular within the sector, positions in the food & staples retailing and beverages industries were notably weak. Elsewhere, stock selection in the communication services sector, particularly within the diversified telecommunication services industry, also weighed on returns, as did an underweight position to industrials.

The leading contributor to relative performance was stock selection within the information technology (“IT”) sector, specifically within the semiconductors & semiconductor equipment industry group. An overweight allocation to communications equipment also contributed positively. In addition, stock selection within the health care sector, especially in the health care providers & services and pharmaceuticals industries, also added to relative performance. Finally, an underweight position in the diversified financial services industry within the financials sector added to returns.

Describe recent portfolio activity.

During the period, the Fund increased its allocation to the consumer discretionary sector through an allocation to the household durables industry. The Fund also increased exposure to the financials and materials sectors. Conversely, the Fund reduced its allocation to the IT sector by decreasing its position in the communication equipment industry. The Fund also cut exposure to the consumer staples and utilities sectors.

Describe portfolio positioning at period end.

Relative to the Russell 1000^® Value Index, the Fund ended the period with a large overweight position in the health care sector, specifically within the health care equipment & supplies industry. The Fund also maintained overweight positions in the communication services and IT sectors. The Fund’s largest underweight allocation at the end of the period was to real estate, as the Fund had no exposure to the sector. The Fund also remained underweight in industrials and in the consumer discretionary sector.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Financials		22	%
Health Care		19
Communication Services		11
Energy		9
Consumer Staples		7
Utilities		7
Industrials		6
Information Technology		6
Consumer Discretionary		4
Materials		4
Short-Term Securities		8
Liabilities in Excess of Other Assets		(3	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Basic Value V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		14.29	%		5.05	%		5.32	%		11.64	%
Class II(b)(c)		14.25			4.91			5.15			11.46
Class III(b)(c)		14.16			4.83			5.03			11.35
Russell 1000®Value Index(d)		16.24			8.46			7.46			13.19

^(a) For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b) Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c) The Fund invests primarily in equity securities that Fund management believes are undervalued, which means that their prices are less than Fund management believes they are worth.

^(d) An unmanaged index that is a subset of the Russell 1000^® Index that consists of those Russell 1000^® securities with lowerprice-to-book ratios and lower expected growth values. Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,142.90	$	3.77	$	1,000.00	$	1,021.27	$	3.56		0.71	%
Class II		1,000.00		1,142.50		4.67		1,000.00		1,020.43		4.41		0.88
Class III		1,000.00		1,141.60		5.26		1,000.00		1,019.89		4.96		0.99

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example is intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Basic Value V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 95.4%
Auto Components — 0.6%
Lear Corp.		16,191	$	2,254,921
Banks — 11.6%
Citigroup, Inc.		142,844		10,003,365
JPMorgan Chase & Co.		109,957		12,293,193
Regions Financial Corp.		262,889		3,927,562
Wells Fargo & Co.		304,608		14,414,050
				40,638,170
Beverages — 3.8%
Molson Coors Brewing Co., Class B		121,604		6,809,824
PepsiCo, Inc.		48,749		6,392,456
				13,202,280
Biotechnology — 1.9%
Biogen, Inc.(a)		13,247		3,098,076
Gilead Sciences, Inc.		50,365		3,402,659
				6,500,735
Building Products — 0.9%
Masco Corp.		80,774		3,169,572
Capital Markets — 2.3%
E*TRADE Financial Corp.		110,388		4,923,305
Morgan Stanley		73,436		3,217,231
				8,140,536
Chemicals — 3.0%
Akzo Nobel NV, ADR(b)		78,794		2,465,464
Corteva, Inc.(a)		103,369		3,056,622
Dow, Inc.		36,001		1,775,209
DuPont de Nemours, Inc.		41,229		3,095,061
				10,392,356
Communications Equipment — 2.5%
Cisco Systems, Inc.		161,157		8,820,123
Construction & Engineering — 0.6%
Quanta Services, Inc.		56,572		2,160,485
Consumer Finance — 1.6%
Ally Financial, Inc.		72,995		2,262,115
Capital One Financial Corp.		35,140		3,188,604
				5,450,719
Diversified Financial Services — 0.5%
AXA Equitable Holdings, Inc.		87,858		1,836,232
Diversified Telecommunication Services — 4.6%
AT&T, Inc.(b)		95,400		3,196,854
Verizon Communications, Inc.		222,758		12,726,165
				15,923,019
Electric Utilities — 4.4%
Exelon Corp.		145,790		6,989,172
FirstEnergy Corp.		194,086		8,308,822
				15,297,994
Electrical Equipment — 2.5%(b)
ABB Ltd., ADR		262,724		5,262,362
Hubbell, Inc.		25,913		3,379,055
				8,641,417
Food & Staples Retailing — 0.8%
Walgreens Boots Alliance, Inc.		50,841		2,779,477

Security	Shares		Value
Food Products — 2.8%
Conagra Brands, Inc.		129,061	$	3,422,697
Kellogg Co.		118,582		6,352,438
				9,775,135
Health Care Equipment & Supplies — 8.0%
Alcon, Inc.(a)		31,463		1,952,279
Baxter International, Inc.		57,429		4,703,435
Koninklijke Philips NV, NYRS		163,175		7,111,167
Medtronic plc		46,942		4,571,681
Zimmer Biomet Holdings, Inc.		80,904		9,525,637
				27,864,199
Health Care Providers & Services — 2.9%
Humana, Inc.		8,240		2,186,072
Laboratory Corp. of America Holdings(a)		45,465		7,860,899
				10,046,971
Hotels, Restaurants & Leisure — 0.2%
Carnival Corp.		16,400		763,420
Household Durables — 1.2%
Sony Corp., ADR		82,448		4,319,451
Independent Power and Renewable Electricity Producers — 2.3%
AES Corp.		486,276		8,149,986
Industrial Conglomerates — 1.0%
General Electric Co.		37,956		398,538
Siemens AG, ADR		49,020		2,924,533
				3,323,071
Insurance — 6.3%
American International Group, Inc.		55,030		2,931,998
Assured Guaranty Ltd.		73,787		3,104,957
Brighthouse Financial, Inc.(a)		39,574		1,451,970
Hartford Financial Services Group, Inc. (The)		82,748		4,610,719
MetLife, Inc.		109,250		5,426,447
Willis Towers Watson plc		22,751		4,357,727
				21,883,818
Media — 5.0%
Comcast Corp., Class A		255,698		10,810,911
DISH Network Corp., Class A(a)		95,280		3,659,705
Interpublic Group of Cos., Inc. (The)(b)		134,819		3,045,561
				17,516,177
Metals & Mining — 0.9%
Freeport-McMoRan, Inc.		269,540		3,129,359
Multiline Retail — 1.3%
Dollar Tree, Inc.(a)		41,230		4,427,690
Oil, Gas & Consumable Fuels — 8.8%
BP plc, ADR		246,900		10,295,730
ConocoPhillips		99,834		6,089,874
Marathon Oil Corp.		126,228		1,793,700
Marathon Petroleum Corp.		37,544		2,097,959
Suncor Energy, Inc.		101,868		3,174,207
Williams Cos., Inc. (The)		260,229		7,296,821
				30,748,291
Pharmaceuticals — 6.7%
Novartis AG, ADR(b)		94,039		8,586,701
Pfizer, Inc.		342,366		14,831,295
				23,417,996
Road & Rail — 0.9%
Norfolk Southern Corp.		16,210		3,231,139

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Basic Value V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Semiconductors & Semiconductor Equipment — 1.4%
QUALCOMM, Inc.		65,667	$	4,995,289
Software — 1.6%
Oracle Corp.		96,340		5,488,490
Specialty Retail — 0.7%
Lowe’s Cos., Inc.		25,070		2,529,814
Technology Hardware, Storage & Peripherals — 0.7%
Apple, Inc.		13,194		2,611,356
Wireless Telecommunication Services — 1.1%
Telephone & Data Systems, Inc.		130,086		3,954,614
Total Common Stocks — 95.4% (Cost: $303,186,685)				333,384,302
Total Long-Term Investments — 95.4% (Cost: $303,186,685)				333,384,302

Security	Shares		Value
Short-Term Securities — 7.6%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,   2.26%		15,974,449	$	15,974,449
SL Liquidity Series, LLC, Money Market Series,   2.55%(d)		10,568,211		10,571,382
Total Short-Term Securities — 7.6% (Cost: $26,545,831)				26,545,831
Total Investments — 103.0% (Cost: $329,732,516)				359,930,133
Liabilities in Excess of Other Assets — (3.0)%				(10,622,937	)
Net Assets — 100.0%			$	349,307,196

^(a) Non-income producing security.

^(b) Security, or a portion of the security, is on loan.

^(c)  Annualized7-day yield as of period end.

^(d) Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		16,423,075		(448,626	)		15,974,449	$	15,974,449	$	160,049		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		18,439,265		(7,871,054	)		10,568,211		10,571,382		29,119	(b)		11,040		14
								$	26,545,831	$	189,168		$	11,040	$	14

^(a) Includes net capital gain distributions, if applicable.

^(b) Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Basic Value V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	333,384,302	$	—	$	—	$	333,384,302
Short-Term Securities		15,974,449		—		—		15,974,449
Subtotal	$	349,358,751	$	—	$	—	$	349,358,751
Investments valued at NAV(b)								10,571,382
Total Investments							$	359,930,133

^(a)  See above Schedule of Investments for values in each industry. Investments categorized as Level 1 are included in industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 7

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock  Basic Value V.I.  Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $10,401,942) (cost — $303,186,685)	$	333,384,302
Investments at value — affiliated (cost — $26,545,831)		26,545,831
Receivables:
Investments sold		385,285
Securities lending income — affiliated		4,235
Capital shares sold		103,384
Dividends — affiliated		20,599
Dividends — unaffiliated		460,919
Prepaid expenses		3,599
Total assets		360,908,154
LIABILITIES
Cash collateral on securities loaned at value		10,568,886
Payables:
Investments purchased		451,905
Capital shares redeemed		55,484
Distribution fees		13,120
Investment advisory fees		187,700
Directors’ and Officer’s fees		6,356
Other affiliates		906
Transfer agent fees		229,027
Other accrued expenses		87,574
Total liabilities		11,600,958
NET ASSETS	$	349,307,196
NET ASSETS CONSIST OF
Paid-in capital	$	293,590,439
Accumulated earnings		55,716,757
NET ASSETS	$	349,307,196
NET ASSET VALUE
Class I— Based on net assets of $283,036,000 and 19,984,194 shares outstanding, 300 million shares authorized, $0.10 par value	$	14.16
Class II— Based on net assets of $4,046,702 and 286,862 shares outstanding, 100 million shares authorized, $0.10 par value	$	14.11
Class III— Based on net assets of $62,224,494 and 4,435,816 shares outstanding, 100 million shares authorized, $0.10 par value	$	14.03

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock  Basic Value  V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	160,049
Dividends — unaffiliated		6,335,227
Securities lending income — affiliated — net		29,119
Foreign taxes withheld		(12,992)
Total investment income		6,511,403
EXPENSES
Investment advisory		1,225,791
Transfer agent — class specific		370,296
Distribution — class specific		79,494
Accounting services		34,120
Professional		32,778
Printing		15,771
Directors and Officer		9,441
Custodian		6,615
Board realignment and consolidation		2,782
Transfer agent		2,382
Miscellaneous		4,585
Total expenses		1,784,055
Less:
Fees waived and/or reimbursed by the Manager		(4,977)
Transfer agent fees waived and/or reimbursed — class specific		(237,849)
Total expenses after fees waived and/or reimbursed		1,541,229
Net investment income		4,970,174
REALIZED AND UNREALIZED GAIN
Net realized gain from:
Investments — affiliated		11,040
Investments — unaffiliated		24,912,698
		24,923,738
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		14
Investments — unaffiliated		23,838,870
		23,838,884
Net realized and unrealized gain		48,762,622
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	53,732,796

See notes to financial statements.

FINANCIAL STATEMENTS 9

Statements of Changes in Net Assets

	BlackRock Basic Value V.I. Fund
	Six Months Ended 06/30/19 (unaudited)	Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$        4,970,174	$        8,034,714
Net realized gain	24,923,738	39,512,218
Net change in unrealized appreciation (depreciation)	23,838,884	(79,557,116)
Net increase (decrease) in net assets resulting from operations	53,732,796	(32,010,184)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I	—	(45,856,103)
Class II	—	(533,180)
Class III	—	(8,023,231)
Decrease in net assets resulting from distributions to shareholders	—	(54,412,514)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions	(92,788,851)	(6,218,302)
NET ASSETS
Total decrease in net assets	(39,056,055)	(92,641,000)
Beginning of period	388,363,251	481,004,251
End of period	$    349,307,196	$    388,363,251

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

		BlackRock Basic Value V.I. Fund
		Class I
		Six Months Ended		Year Ended December 31,
		06/30/19 (unaudited)		2018		2017		2016		2015		2014
Net asset value, beginning of period		$	12.39	$	15.60	$	15.21	$	13.36	$	16.42	$	17.44
Net investment income(a)			0.17		0.28		0.22		0.23		0.24		0.25
Net realized and unrealized gain (loss)			1.60		(1.51)		1.03		2.19		(1.20)		1.51
Net increase (decrease) from investment operations			1.77		(1.23)		1.25		2.42		(0.96)		1.76
Distributions(b)
From net investment income	��		—		(0.29)		(0.25)		(0.22)		(0.25)		(0.27)
From net realized gain			—		(1.69)		(0.61)		(0.35)		(1.85)		(2.51)
Total distributions			—		(1.98)		(0.86)		(0.57)		(2.10)		(2.78)
Net asset value, end of period		$	14.16	$	12.39	$	15.60	$	15.21	$	13.36	$	16.42
Total Return(c)
Based on net asset value			14.29%(d)		(7.85)%		8.24%		18.19%		(5.95)%		9.93%
Ratios to Average Net Assets(e)
Total expenses			0.83%(f)		0.85%		0.85%		0.84%		0.86%		0.85%
Total expenses after fees waived and/or reimbursed			0.71%(f)		0.72%		0.73%		0.73%		0.73%		0.72%
Net investment income			2.48%(f)		1.80%		1.47%		1.63%		1.47%		1.40%
Supplemental Data
Net assets, end of period (000)		$	283,036	$	326,873	$	397,180	$	409,216	$	393,370	$	468,876
Portfolio turnover rate			23%		32%		41%		45%		50%		39%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		0.01%		0.01%		0.01%		—%		—%		—%

^(f)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 11

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Basic Value V.I. Fund
	Class II
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Net asset value, beginning of period	$	12.35	$	15.56	$	15.16	$	13.33	$	16.38	$	17.40
Net investment income(a)		0.15		0.26		0.20		0.20		0.21		0.22
Net realized and unrealized gain (loss)		1.61		(1.52)		1.03		2.18		(1.18)		1.51
Net increase (decrease) from investment operations		1.76		(1.26)		1.23		2.38		(0.97)		1.73
Distributions(b)
From net investment income		—		(0.26)		(0.22)		(0.20)		(0.23)		(0.24)
From net realized gain		—		(1.69)		(0.61)		(0.35)		(1.85)		(2.51)
Total distributions		—		(1.95)		(0.83)		(0.55)		(2.08)		(2.75)
Net asset value, end of period	$	14.11	$	12.35	$	15.56	$	15.16	$	13.33	$	16.38
Total Return(c)
Based on net asset value		14.25%(d)		(8.06)%		8.15%		17.88%		(6.07)%		9.75%
Ratios to Average Net Assets(e)
Total expenses		1.00%(f)		1.02%		1.02%		1.02%		1.02%		1.02%
Total expenses after fees waived and/or reimbursed		0.88%(f)		0.89%		0.90%		0.90%		0.90%		0.89%
Net investment income		2.26%(f)		1.63%		1.29%		1.47%		1.30%		1.23%
Supplemental Data
Net assets, end of period (000)	$	4,047	$	3,829	$	4,928	$	5,280	$	5,466	$	6,233
Portfolio turnover rate		23%		32%		41%		45%		50%		39%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		0.01%		0.01%		0.01%		—%		—%		—%

^(f)  Annualized.

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Basic Value V.I. Fund
	Class III
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Net asset value, beginning of period	$	12.29	$	15.48	$	15.08	$	13.28	$	16.32	$	17.35
Net investment income(a)		0.14		0.24		0.18		0.18		0.19		0.20
Net realized and unrealized gain (loss)		1.60		(1.50)		1.02		2.17		(1.17)		1.50
Net increase (decrease) from investment operations		1.74		(1.26)		1.20		2.35		(0.98)		1.70
Distributions(b)
From net investment income		—		(0.24)		(0.19)		(0.20)		(0.21)		(0.22)
From net realized gain		—		(1.69)		(0.61)		(0.35)		(1.85)		(2.51)
Total distributions		—		(1.93)		(0.80)		(0.55)		(2.06)		(2.73)
Net asset value, end of period	$	14.03	$	12.29	$	15.48	$	15.08	$	13.28	$	16.32
Total Return(c)
Based on net asset value		14.16%(d)		(8.11)%		8.01%		17.72%		(6.15)%		9.63%
Ratios to Average Net Assets(e)
Total expenses		1.11%(f)		1.15%		1.16%		1.04%		1.13%		1.11%
Total expenses after fees waived and/or reimbursed		0.99%(f)		1.00%		1.01%		1.00%		1.01%		1.00%
Net investment income		2.15%(f)		1.52%		1.16%		1.25%		1.19%		1.11%
Supplemental Data
Net assets, end of period (000)	$	62,224	$	57,661	$	78,896	$	114,160	$	45,197	$	54,394
Portfolio turnover rate		23%		32%		41%		45%		50%		39%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		0.01%		0.01%		0.01%		—%		—%		—%

^(f)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 13

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Basic Value V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Citigroup Global Markets, Inc.	$	1,696,560	$	(1,696,560	)	$	—
Credit Suisse Securities (USA) LLC		7,210,655		(7,210,655	)		—
JP Morgan Securities LLC		1,193,788		(1,193,788	)		—
Morgan Stanley & Co. LLC		300,939		(300,939	)		—
	$	10,401,942	$	(10,401,942	)	$	—

^(a)  Cash collateral with a value of $10,568,886 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

NOTESTO FINANCIAL STATEMENTS 15

Notes to Financial Statements  (unaudited) (continued)

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.60	%
$1 Billion — $3 Billion		0.56
$3 Billion — $5 Billion		0.54
$5 Billion — $10 Billion		0.52
Greater than $10 Billion		0.51

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

	Distribution Fees
Class II		0.15	%
Class III		0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	3,029
Class III		76,465
	$	79,494

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent – class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	303,148
Class II		4,042
Class III		63,106
	$	370,296

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $4,977.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $2,496 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.06	%
Class II	0.08
Class III	0.09

The Manager has agreed not to reduce or discontinue these contractual reimbursements through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$      199,891
Class II		2,423
Class III		35,535
		$      237,849

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class II	1.40
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $8,774 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, and excluding short-term securities, were $90,906,025 and $177,259,064, respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	331,968,968
Gross unrealized appreciation	$	38,818,511
Gross unrealized depreciation		(10,857,346	)
Net unrealized appreciation	$	27,961,165

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended     12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		186,940	$	2,516,440		687,102	$	10,527,059
Shares issued in reinvestment of distributions		—		—		3,655,080		45,856,103
Shares redeemed		(6,589,428)		(91,508,965)		(3,410,293)		(53,890,776)
Net increase (decrease)		(6,402,488)	$	(88,992,525)		931,889	$	2,492,386
Class II
Shares sold		586	$	8,053		2,419	$	34,701
Shares issued in reinvestment of distributions		—		—		42,597		533,180
Shares redeemed		(23,759)		(323,898)		(51,793)		(824,168)
Net decrease		(23,173)	$	(315,845)		(6,777)	$	(256,287)
Class III
Shares sold		55,977	$	752,100		275,061	$	3,963,788
Shares issued in reinvestment of distributions		—		—		643,024		8,023,231
Shares redeemed		(313,122)		(4,232,581)		(1,321,516)		(20,441,420)
Net decrease		(257,145)	$	(3,480,481)		(403,431)	$	(8,454,401)
Total Net Increase (Decrease)		(6,682,806)	$	(92,788,851)		521,681	$	(6,218,302)

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 19

Glossary of Terms Used in this Report

Portfolio Abbreviations
ADR	American Depositary Receipts
NYRS	New York Registered Shares

20 2019 BLACKROCK ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Capital Appreciation V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Capital Appreciation V.I. Fund

Investment Objective

BlackRock Capital Appreciation V.I. Fund’s (the “Fund”) investment objective is to seek long-term growth of capital.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund outperformed its benchmark, the Russell 1000^® Growth Index, and the broad market S&P 500^® Index. The following discussion of relative performance pertains to the Russell 1000^® Growth Index.

What factors influenced performance?

On a sector basis, the largest contributor to relative performance over the period was industrials, where stock selection in the professional services and industrial conglomeratessub-sectors had the strongest positive impact on Fund returns. Notably, an overweight position in CoStar Group, Inc. within professional services, and an overweight to Roper Technologies within industrial conglomerates, as well as not owning 3M Company, contributed to relative results. Stock selection in consumer discretionary also added to relative results led by the internet & direct marketing retailsub-sector, where an overweight to Amazon.com, Inc. and anout-of-benchmark position in Braziliane-commerce giant MercadoLibre, Inc. drove results. Lastly, health care was a key contributor to relative results, where an underweight to biotechnology, which underperformed during the period, and security selection in the pharmaceuticalssub-sector, notably not holding Eli Lilly & Company and Bristol-Myers Squibb Co., had the strongest positive impact on performance.

Conversely, the largest detractor over the period was financials, where the absence of owning any companies in the insurancesub-sector detracted from Fund results as several insurance names outperformed, including the Progressive Corp. and AON PLC. Communication services was also a key detractor led by stock selection in interactive media & services, particularly an underweight to Facebook, Inc., which outperformed during the period, and anout-of-benchmark position in Chinese internet and media conglomerate Tencent Holdings Ltd., which underperformed. Other notable detractors during the period included overweight positions in managed care enterprises Centene Corp. and United HealthGroup, Inc. and an underweight position in Apple, Inc.    

Describe recent portfolio activity.

During the period, the Fund increased its exposure to the industrials sector by investing in the aerospace and defense industry. Additionally, the Fund’s weight in the materials and information technology (“IT”) sectors increased over the period. In contrast, the Fund reduced its weighting in the health care sector by decreasing its holdings in the health care providers and services industry. The Fund also lowered its exposure to the communication services and financials sectors.

Describe portfolio positioning at period end.

As of period end, the Fund’s largest overweight relative to the Russell 1000^® Growth Index was to the consumer discretionary sector, driven by a focus on the internet & direct marketing retail industry. The Fund was also overweight to materials and industrials. Conversely, the Fund was underweight in IT largely due to having no exposure to technology hardware, storage and peripherals names. Additionally, the Fund was underweight in the consumer staples and real estate sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Capital Appreciation V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		23.86	%		10.27	%		14.34	%		15.06	%
Class III(b)(c)		23.56			9.97			14.02			14.76	(d)
Russell 1000®Growth Index(e)		21.49			11.56			13.39			16.28
S&P 500®Index(f)		18.54			10.42			10.71			14.70

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  The Fund invests primarily in a diversified portfolio consisting primarily of common stock of U.S. companies that the investment adviser believes have exhibited above-average growth rates in earnings over the long-term.

^(d)  The returns for Class III Shares prior to June 15, 2010, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution(12b-1) fees applicable to Class III Shares.

^(e)  An unmanaged index that measures the performance of the large cap growth segment of the U.S. equity universe and consists of those Russell 1000^® securities with higherprice-to-book ratios and higher forecasted growth values.

^(f)  An unmanaged index that covers 500 leading companies and captures approximately 80% coverage of available market capitalization.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,238.60	$	4.33	$	1,000.00	$	1,020.93	$	3.91		0.78	%
Class III		1,000.00		1,235.60		5.76		1,000.00		1,019.64		5.21		1.04

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Information Technology		33	%
Consumer Discretionary		17
Health Care		16
Communication Services		12
Industrials		11
Financials		4
Materials		3
Consumer Staples		2
Real Estate		2
Short-Term Securities		2
Liabilities in Excess of Other Assets		(2	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Capital Appreciation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 98.8%
Aerospace & Defense — 2.4%
Boeing Co. (The)		19,728	$	7,181,189
Automobiles — 0.3%
Ferrari NV		5,889		950,602
Beverages — 2.2%
Constellation Brands, Inc., Class A		33,546		6,606,549
Biotechnology — 1.1%
Vertex Pharmaceuticals, Inc.(a)		17,078		3,131,764
Capital Markets — 3.6%
CME Group, Inc.(b)		25,862		5,020,073
S&P Global, Inc.		25,309		5,765,137
				10,785,210
Chemicals — 1.6%
Linde plc		2,386		479,109
Sherwin-Williams Co. (The)		9,246		4,237,349
				4,716,458
Construction Materials — 1.3%
Vulcan Materials Co.		29,268		4,018,789
Electronic Equipment, Instruments & Components — 0.8%
Keysight Technologies, Inc.(a)		27,287		2,450,645
Entertainment — 3.0%
Netflix, Inc.(a)		24,150		8,870,778
Equity Real Estate Investment Trusts (REITs) — 1.8%
SBA Communications Corp.(a)		24,244		5,451,021
Health Care Equipment & Supplies — 7.0%
Align Technology, Inc.(a)		21,424		5,863,749
Becton Dickinson and Co.		14,969		3,772,338
Boston Scientific Corp.(a)		139,295		5,986,899
Intuitive Surgical, Inc.(a)		9,744		5,111,215
				20,734,201
Health Care Providers & Services — 3.6%
Centene Corp.(a)		29,331		1,538,118
UnitedHealth Group, Inc.		37,390		9,123,534
				10,661,652
Hotels, Restaurants & Leisure — 1.3%
Domino’s Pizza, Inc.		13,947		3,881,171
Industrial Conglomerates — 2.0%
Honeywell International, Inc.		11,464		2,001,500
Roper Technologies, Inc.		10,485		3,840,236
				5,841,736
Interactive Media & Services — 9.3%
Alphabet, Inc., Class A(a)		7,322		7,928,261
Facebook, Inc., Class A(a)		36,025		6,952,825
IAC/InterActiveCorp(a)		28,500		6,199,605
Tencent Holdings Ltd.		150,000		6,785,913
				27,866,604
Internet & Direct Marketing Retail — 13.0%
Alibaba Group Holding Ltd., ADR(a)		25,355		4,296,405
Amazon.com, Inc.(a)		13,706		25,954,093
Booking Holdings, Inc.(a)		890		1,668,492
MercadoLibre, Inc.		11,378		6,960,719
				38,879,709

Security	Shares		Value
IT Services — 10.8%
Mastercard, Inc., Class A		48,479	$	12,824,150
PayPal Holdings, Inc.(a)		40,931		4,684,962
Visa, Inc., Class A		84,787		14,714,784
				32,223,896
Life Sciences Tools & Services — 3.1%(a)
Illumina, Inc.		13,475		4,960,821
IQVIA Holdings, Inc.		26,170		4,210,753
				9,171,574
Machinery — 1.0%
Xylem, Inc.		37,198		3,111,241
Pharmaceuticals — 1.0%
Zoetis, Inc.(b)		26,290		2,983,652
Professional Services — 4.0%
CoStar Group, Inc.(a)		15,749		8,725,891
TransUnion		41,678		3,063,750
				11,789,641
Road & Rail — 1.6%
Union Pacific Corp.		27,865		4,712,250
Semiconductors & Semiconductor Equipment — 2.9%
ASML Holding NV (Registered), NYRS(b)		28,020		5,826,198
Xilinx, Inc.		24,967		2,944,109
				8,770,307
Software — 18.0%
Adobe, Inc.(a)		26,150		7,705,098
Autodesk, Inc.(a)		24,425		3,978,833
Intuit, Inc.		27,859		7,280,392
Microsoft Corp.		125,066		16,753,841
PTC, Inc.(a)		30,983		2,781,034
salesforce.com, Inc.(a)		57,303		8,694,584
ServiceNow, Inc.(a)		23,124		6,349,157
				53,542,939
Specialty Retail — 1.1%
Burlington Stores, Inc.(a)		19,113		3,252,077
Textiles, Apparel & Luxury Goods — 1.0%
NIKE, Inc., Class B		34,665		2,910,127
Total Common Stocks — 98.8% (Cost: $203,424,178)				294,495,782
Preferred Stocks — 1.0%
Software — 1.0%
Palantir Technologies, Inc., Series I (Acquired 02/11/14, cost $2,858,020)(a)(c)(d)		466,235		3,035,190
Total Preferred Stocks — 1.0% (Cost: $2,858,020)				3,035,190
Total Long-Term Investments — 99.8% (Cost: $206,282,198)				297,530,972

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Capital Appreciation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Short-Term Securities — 2.2%(e)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%		1,012,503	$	1,012,503
SL Liquidity Series, LLC, Money Market Series, 2.55%(f)		5,458,503		5,460,141
Total Short-Term Securities — 2.2% (Cost: $6,472,644)				6,472,644
Total Investments — 102.0% (Cost: $212,754,842)				304,003,616
Liabilities in Excess of Other Assets — (2.0)%				(5,902,466)
Net Assets — 100.0%			$	298,101,150

^(a)  Non-income producing security.

^(b)  Security, or a portion of the security, is on loan.

^(c)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $3,035,190, representing 1.02% of its net assets as of period end, and an original cost of $2,858,020.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)  Annualized7-day yield as of period end.

^(f)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income		Net     Realized     Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		5,520,889		(4,508,386	)		1,012,503	$	1,012,503	$	17,561	$	—	$	—
SL Liquidity Series, LLC, Money Market Series		8,638,158		(3,179,655	)		5,458,503		5,460,141		5,840(b)		3,463		36
								$	6,472,644	$	23,401	$	3,463	$	36

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Capital Appreciation V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	7,181,189	$	—	$	—	$	7,181,189
Automobiles		950,602		—		—		950,602
Beverages		6,606,549		—		—		6,606,549
Biotechnology		3,131,764		—		—		3,131,764
Capital Markets		10,785,210		—		—		10,785,210
Chemicals		4,716,458		—		—		4,716,458
Construction Materials		4,018,789		—		—		4,018,789
Electronic Equipment, Instruments & Components		2,450,645		—		—		2,450,645
Entertainment		8,870,778		—		—		8,870,778
Equity Real Estate Investment Trusts (REITs)		5,451,021		—		—		5,451,021
Health Care Equipment & Supplies		20,734,201		—		—		20,734,201
Health Care Providers & Services		10,661,652		—		—		10,661,652
Hotels, Restaurants & Leisure		3,881,171		—		—		3,881,171
Industrial Conglomerates		5,841,736		—		—		5,841,736
Interactive Media & Services		21,080,691		6,785,913		—		27,866,604
Internet & Direct Marketing Retail		38,879,709		—		—		38,879,709
IT Services		32,223,896		—		—		32,223,896
Life Sciences Tools & Services		9,171,574		—		—		9,171,574
Machinery		3,111,241		—		—		3,111,241
Pharmaceuticals		2,983,652		—		—		2,983,652
Professional Services		11,789,641		—		—		11,789,641
Road & Rail		4,712,250		—		—		4,712,250
Semiconductors & Semiconductor Equipment		8,770,307		—		—		8,770,307
Software		53,542,939		—		—		53,542,939
Specialty Retail		3,252,077		—		—		3,252,077
Textiles, Apparel & Luxury Goods		2,910,127		—		—		2,910,127
Preferred Stocks(a)		—		—		3,035,190		3,035,190
Short-Term Securities		1,012,503		—		—		1,012,503
Subtotal	$	288,722,372	$	6,785,913	$	3,035,190	$	298,543,475
Investments valued at NAV(b)								5,460,141
Total Investments							$	304,003,616

^(a)  See above Schedule of Investments for values in each industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

SCHEDULES OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Capital Appreciation V.I. Fund

A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

	Preferred Stocks
Investments:
Assets:
Opening balance, as of December 31, 2018	$    2,522,331
Transfers into level 3	—
Transfers out of level 3	—
Accrued discounts/premiums	—
Net realized gain	—
Net change in unrealized appreciation(a)(b)	512,859
Purchases	—
Sales	—
Closing balance, as of June 30, 2019	$    3,035,190
Net change in unrealized appreciation on investments still held at June 30, 2019(b)	$       512,859

^(a)  Included in the related net change in unrealized appreciation (depreciation) in the Statement of Operations.

^(b)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at June 30, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

The following table summarizes the valuation approaches used and unobservable inputs utilized by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) to determine the value of certain of the Fund’s Level 3 investments as of period end.

	Value		Valuation Approach	Unobservable Inputs	Range of Unobservable       Inputs Utilized
Preferred Stocks	$	3,035,190	Market	Revenue Multiple(a)		17.25x

^(a)  Increase in unobservable input may result in a significant increase to value, while a decrease in unobservable input may result in a significant decrease to value.

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock  Capital  Appreciation  V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $5,394,016) (cost — $206,282,198)	$	297,530,972
Investments at value — affiliated (cost — $6,472,644)		6,472,644
Foreign currency at value (cost — $102)		102
Receivables:
Investments sold		36,090
Securities lending income — affiliated		362
Capital shares sold		18,098
Dividends — affiliated		1,686
Dividends — unaffiliated		7,930
Prepaid expenses		2,500
Total assets		304,070,384
LIABILITIES
Cash collateral on securities loaned at value		5,458,719
Payables:
Board realignment and consolidation		15,113
Capital shares redeemed		65,478
Distribution fees		35,081
Investment advisory fees		156,692
Directors’ and Officer’s fees		6,109
Other affiliates		763
Printing fees		28,040
Professional fees		28,123
Transfer agent fees		152,541
Other accrued expenses		22,575
Total liabilities		5,969,234
NET ASSETS	$	298,101,150
NET ASSETS CONSIST OF
Paid-in capital	$	185,812,267
Accumulated earnings		112,288,883
NET ASSETS	$	298,101,150
NET ASSET VALUE
Class I— Based on net assets of $135,925,938 and 15,139,901 shares outstanding, 100 million shares authorized, $0.10 par value	$	8.98
Class III— Based on net assets of $162,175,212 and 18,402,053 shares outstanding, 100 million shares authorized, $0.10 par value	$	8.81

See notes to financial statements.

FINANCIAL STATEMENTS 9

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock   Capital   Appreciation   V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	17,561
Dividends — unaffiliated		885,022
Securities lending income — affiliated — net		5,840
Foreign taxes withheld		(290)
Total investment income		908,133
EXPENSES
Investment advisory		942,118
Transfer agent — class specific		292,028
Distribution — class specific		199,016
Accounting services		29,751
Professional		25,592
Printing		19,119
Directors and Officer		8,432
Custodian		6,652
Transfer agent		2,344
Miscellaneous		3,776
Total expenses		1,528,828
Less:
Fees waived and/or reimbursed by the Manager		(553)
Transfer agent fees waived and/or reimbursed — class specific		(182,323)
Total expenses after fees waived and/or reimbursed		1,345,952
Net investment loss		(437,819)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		3,463
Investments — unaffiliated		19,151,781
Foreign currency transactions		(127)
		19,155,117
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		36
Investments — unaffiliated		42,588,431
Foreign currency translations		9
		42,588,476
Net realized and unrealized gain		61,743,593
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	61,305,774

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets        

	BlackRock Capital Appreciation V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment loss	$	(437,819)	$	(523,401)
Net realized gain		19,155,117		76,931,848
Net change in unrealized appreciation (depreciation)		42,588,476		(60,745,946)
Net increase in net assets resulting from operations		61,305,774		15,662,501
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		—		(37,800,468)
Class III		—		(46,900,915)
Decrease in net assets resulting from distributions to shareholders		—		(84,701,383)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(27,983,394)		(68,397,301)
NET ASSETS
Total increase (decrease) in net assets		33,322,380		(137,436,183)
Beginning of period		264,778,770		402,214,953
End of period	$	298,101,150	$	264,778,770

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 11

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Capital Appreciation V.I. Fund
	Class I
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.25		$	10.26		$	8.63		$	8.86		$	9.02		$	9.80
Net investment income (loss)(a)		(0.01	)		0.00	(b)(c)		(0.00	)(d)(e)		(0.00	)(d)(f)		(0.01	)		(0.01	)
Net realized and unrealized gain		1.74			0.23			2.86			0.01			0.63			0.87
Net increase from investment operations		1.73			0.23			2.86			0.01			0.62			0.86
Distributions from net realized gain(g)		—			(3.24	)		(1.23	)		(0.24	)		(0.78	)		(1.64)
Net asset value, end of period	$	8.98		$	7.25		$	10.26		$	8.63		$	8.86		$	9.02
Total Return(h)
Based on net asset value		23.86	%(i)		2.39	%		33.22	%		0.10	%		6.73	%		9.02	%
Ratios to Average Net Assets
Total expenses		0.92%(j)			0.94%	(k)		0.92	%		0.92	%		0.93%			0.91%
Total expenses after fees waived and/or reimbursed		0.78%(j)			0.80%	(k)		0.79	%		0.80	%		0.79%			0.79%
Net investment income (loss)		(0.16)%(j)			0.01%(c)	(k)		(0.00)%(e)(	l)		(0.06)%	(f)		(0.15)%			(0.10)%
Supplemental Data
Net assets, end of period (000)	$	135,926		$	119,220		$	142,246		$	124,752		$	139,045		$	166,586
Portfolio turnover rate		23%			45	%		48	%		89	%		70%			102%

^(a)  Based on average shares outstanding.

^(b)  Amount is less than $0.005 per share.

^(c)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.21%, respectively, resulting from anon-recurring dividend.

^(d)  Amount is greater than $(0.005) per share.

^(e)  Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.09%, respectively, resulting from anon-recurring dividend from TransDigm Group, Inc. in August 2017.

^(f)  Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.07%, respectively, resulting from anon-recurring dividend from TransDigm Group, Inc. in October 2016.

^(g)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(h)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

⁽ⁱ⁾  Aggregate total return.

^(j)  Annualized.

^(k)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(l)  Amount is greater than (0.005)%.

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Capital Appreciation V.I. Fund
	Class III
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.13		$	10.17		$	8.56		$	8.81		$	8.97		$	9.76
Net investment loss(a)		(0.02	)		(0.03	)(b)		(0.03	)(c)		(0.03	)(d)		(0.04	)		(0.03)
Net realized and unrealized gain		1.70			0.23			2.84			0.02			0.63			0.86
Net increase (decrease) from investment operations		1.68			0.20			2.81			(0.01)			0.59			0.83
Distributions from net realized gain(e)		—			(3.24	)		(1.20	)		(0.24	)		(0.75	)		(1.62)
Net asset value, end of period	$	8.81		$	7.13		$	10.17		$	8.56		$	8.81		$	8.97
Total Return(f)
Based on net asset value		23.56%	(g)		2.13%			32.94%			(0.13)%			6.49%			8.68%
Ratios to Average Net Assets
Total expenses		1.16%(h)			1.19%(i)			1.17%			1.18%			1.17%			1.18%
Total expenses after fees waived and/or reimbursed		1.04%(h)			1.06%(i)			1.05%			1.06%			1.05%			1.05%
Net investment loss		(0.42)%(h)			(0.28)%(b)(i)			(0.27)%(c)			(0.32)%(d)			(0.40)%			(0.35)%
Supplemental Data
Net assets, end of period (000)	$	162,175		$	145,559		$	259,969		$	231,136		$	233,706		$	233,723
Portfolio turnover rate		23%			45%			48%			89%			70%			102%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.19%, respectively, resulting from anon-recurring dividend.

^(c) Net investment income per share and the ratio of net investment income to average net assets includes $0.01 per share and 0.09%, respectively, resulting from anon-recurring dividend from TransDigm Group, Inc. in August 2017.

^(d)  Net investment income per share and the ratio of net investment income to average net assets includes $0.00 per share and 0.07%, respectively, resulting from anon-recurring dividend from TransDigm Group, Inc. in October 2016.

^(e)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(f)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(g) Aggregate total return.

^(h)  Annualized.

⁽ⁱ⁾  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 13

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Capital Appreciation V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time)(or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)	recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;
	(ii)	recapitalizations and other transactions across the capital structure; and
	(iii)	market multiples of comparable issuers.
Income approach	(i)	future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;
	(ii)	quoted prices for similar investments or assets in active markets; and
	(iii)	other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)	audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;
	(ii)	changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;
	(iii)	relevant news and other public sources; and
	(iv)	known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs).

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies.

NOTESTO FINANCIAL STATEMENTS 15

Notes to Financial Statements  (unaudited) (continued)

There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)		Net Amount
Citigroup Global Markets, Inc.	$	132,189	$	(132,189)	$	—
Deutsche Bank Securities, Inc.		2,953,804		(2,953,804)		—
JP Morgan Securities LLC		2,308,023		(2,308,023)		—
	$	5,394,016	$	(5,394,016)	$	—

^(a)  Cash collateral with a value of $5,458,719 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.65	%
$1 Billion — $3 Billion		0.61
$3 Billion — $5 Billion		0.59
$5 Billion — $10 Billion		0.57
Greater than $10 Billion		0.55

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $199,016.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent – class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations. For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	134,556
Class III		157,472
	$	292,028

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitations described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $553.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”) or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $1,828 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.07	%
Class III	0.08

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$        88,686
Class III		93,637
		$      182,323

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitations”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $1,658 for securities lending agent services.

lnterfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the six months ended June 30, 2019, the Fund did not participate in the lnterfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $67,083,734 and $89,149,404, respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	212,810,752
Gross unrealized appreciation	$	92,617,008
Gross unrealized depreciation		(1,424,144)
Net unrealized appreciation	$	91,192,864

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

Concentration Risk: As of period end, the Fund invested a significant portion of its assets in securities in the information technology sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements  (unaudited) (continued)

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended     12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		136,428		$	1,148,603			531,879		$	5,009,652
Shares issued in reinvestment of distributions		—			—			5,066,937			37,800,468
Shares redeemed		(1,435,913	)		(12,068,902	)		(3,020,879	)		(33,854,433)
Net increase (decrease)		(1,299,485	)	$	(10,920,299	)		2,577,937		$	8,955,687
Class III
Shares sold		291,232		$	2,311,440			745,740		$	7,589,740
Shares issued in reinvestment of distributions		—			—			6,397,406			46,900,915
Shares redeemed		(2,310,004	)		(19,374,535	)		(12,295,769	)		(131,843,643)
Net decrease		(2,018,772	)	$	(17,063,095	)		(5,152,623	)	$	(77,352,988)
Total Net Decrease		(3,318,257	)	$	(27,983,394	)		(2,574,686	)	$	(68,397,301)

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Portfolio Abbreviations
ADR	American Depositary Receipts
NYRS	New York Registered Shares

GLOSSARYOF TERMS USEDINTHIS REPORT 21

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Equity Dividend V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Equity Dividend V.I. Fund

Investment Objective

BlackRock Equity Dividend V.I. Fund’s (the “Fund”) investment objective is to seek long-term total return and current income.

Portfolio Management Commentary

How did the fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Russell 1000^® Value Index, as well as the broad-market S&P 500^® Index. The following discussion of relative performance pertains to the Russell 1000^® Value Index.

What factors influenced performance?

During the period, a combination of stock selection and allocation decisions within health care was a significant detractor from the Fund’s relative performance. In particular, overweight positions to the health care providers & services and pharmaceuticals industries proved costly. In addition, the portfolio’s cash position, which was 7.3% at period end, weighed on relative returns amid rising U.S. stock prices. Stock selection within the utilities and communication services sectors also detracted.

The largest contribution to relative performance came from stock selection in energy. Notably, selection decisions in the oil & gas exploration & productionsub-industry boosted relative return within the sector. Within financials, a combination of stock selection within and an overweight to the insurance industry proved beneficial. Stock selection within and an underweight to diversified financial services also boosted relative return, as did stock selection within banks. Lastly, stock selection and allocation decisions in information technology (“IT”) added to relative performance.

Describe recent portfolio activity.

During thesix-month period, the Fund increased exposure to the financials, consumer discretionary and consumer staples sectors. Holdings within materials and communication services also were increased. Conversely, the Fund significantly reduced exposure to the health care sector. The Fund also trimmed positions within energy, IT and utilities.

Describe portfolio positioning at period end.

In terms of sector positioning, the Fund’s largest allocations were to financials, health care and energy. Relative to the Russell 1000 Value Index benchmark, the Fund’s largest overweight positions were in the IT, health care and financials sectors. Conversely, the Fund’s largest underweights were to the real estate, utilities and industrials sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Equity Dividend V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns(a)			1 Year			5 Years			10 Years
Class I(b)(c)		15.52	%		7.64	%		8.63	%		11.41	%
Class III(b)(c)		15.39			7.38			8.37			11.14	(d)
Russell 1000®Value Index(e)		16.24			8.46			7.46			13.19
S&P 500®Index(f)		18.54			10.42			10.71			14.70

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b) Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c) The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of equity securities. Under normal circumstances, the Fund will invest at least 80% of its assets in equity securities and at least 80% of its assets in dividend paying securities. The Fund’s total returns prior to October 1, 2010 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name BlackRock Utilities and Telecommunications V.I. Fund.

^(d) The returns for Class III Shares prior to July 1, 2011, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution(12b-1) fees applicable to Class III Shares.

^(e) An unmanaged index that is a subset of the Russell 1000^® Index that consists of those Russell 1000^® securities with lowerprice-to-book ratios and lower expected growth values.

^(f) An unmanaged index that covers 500 leading companies and captures approximately 80% coverage of available market capitalization.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustment made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,155.20	$	3.47	$	1,000.00	$	1,021.57	$	3.26		0.65	%
Class III		1,000.00		1,153.90		4.81		1,000.00		1,020.33		4.51		0.90

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b) For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Financials		26	%
Health Care		17
Information Technology		11
Energy		10
Consumer Staples		7
Industrials		6
Communication Services		6
Consumer Discretionary		5
Materials		2
Utilities		2
Short-Term Securities		11
Liabilities in Excess of Other Assets		(3	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Equity Dividend V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 92.8%
Aerospace & Defense — 2.1%
BAE Systems plc		464,228	$	2,917,620
Lockheed Martin Corp.		5,680		2,064,907
Northrop Grumman Corp.		5,250		1,696,328
				6,678,855
Air Freight & Logistics — 0.7%
FedEx Corp.		13,240		2,173,876
Automobiles — 0.8%
General Motors Co.		68,724		2,647,936
Banks — 13.3%
Bank of America Corp.(a)		311,617		9,036,893
Citigroup, Inc.		151,688		10,622,711
JPMorgan Chase & Co.		101,612		11,360,221
Wells Fargo & Co.		229,550		10,862,306
				41,882,131
Beverages — 2.2%
Constellation Brands, Inc., Class A		9,187		1,809,288
Diageo plc		50,080		2,155,457
PepsiCo, Inc.		23,609		3,095,848
				7,060,593
Building Products — 0.7%
Johnson Controls International plc		51,811		2,140,312
Capital Markets — 3.4%
Charles Schwab Corp. (The)		26,156		1,051,210
Goldman Sachs Group, Inc. (The)		10,924		2,235,050
Morgan Stanley		104,610		4,582,964
State Street Corp.		49,182		2,757,143
				10,626,367
Chemicals — 1.6%
Corteva, Inc.(b)		61,577		1,820,832
Dow, Inc.		23,047		1,136,447
DuPont de Nemours, Inc.		29,237		2,194,822
				5,152,101
Communications Equipment — 1.0%
Motorola Solutions, Inc.		19,423		3,238,397
Construction Materials — 0.6%
CRH plc		55,940		1,828,169
Containers & Packaging — 0.2%
International Paper Co.		15,376		666,088
Diversified Financial Services — 0.8%
AXA Equitable Holdings, Inc.		121,260		2,534,334
Diversified Telecommunication Services — 4.4%
BCE, Inc.		17,414		791,989
Verizon Communications, Inc.		230,031		13,141,671
				13,933,660
Electric Utilities — 2.2%
FirstEnergy Corp.		107,895		4,618,985
NextEra Energy, Inc.		10,958		2,244,856
				6,863,841
Energy Equipment & Services — 0.7%
Baker Hughes a GE Co., Class A		82,719		2,037,369
Food Products — 2.6%
Conagra Brands, Inc.		59,147		1,568,578
Kellogg Co		27,252		1,459,890
Mondelez International, Inc., Class A		10,642		573,604

Security	Shares		Value
Food Products (continued)
Nestle SA (Registered)		42,884	$	4,439,448
				8,041,520
Health Care Equipment & Supplies — 5.1%
Alcon, Inc.(b)		39,261		2,425,723
Koninklijke Philips NV		151,599		6,590,910
Medtronic plc		72,154		7,027,078
				16,043,711
Health Care Providers & Services — 5.9%
Anthem, Inc.		24,030		6,781,506
CVS Health Corp.		54,431		2,965,945
Humana, Inc.		13,803		3,661,936
McKesson Corp.		16,837		2,262,725
Quest Diagnostics, Inc.		14,101		1,435,623
UnitedHealth Group, Inc		5,901		1,439,903
				18,547,638
Household Durables — 1.4%
Newell Brands, Inc.		130,503		2,012,356
Sony Corp.		45,500		2,391,024
				4,403,380
Household Products — 0.4%
Procter & Gamble Co. (The)		12,828		1,406,590
Industrial Conglomerates — 1.8%
General Electric Co.		276,411		2,902,315
Siemens AG (Registered)		23,128		2,753,512
				5,655,827
Insurance — 8.2%
American International Group, Inc.		119,514		6,367,706
Arthur J Gallagher & Co.		38,012		3,329,471
Marsh & McLennan Cos., Inc.		18,955		1,890,761
MetLife, Inc.		126,162		6,266,466
Travelers Cos., Inc. (The)(a)		25,219		3,770,745
Willis Towers Watson plc		21,609		4,138,988
				25,764,137
IT Services — 1.9%
Cognizant Technology Solutions Corp., Class A		92,604		5,870,167
Leisure Products — 0.2%
Mattel, Inc.(b)		52,300		586,283
Machinery — 0.5%
Pentair plc		46,159		1,717,115
Media — 1.8%
Comcast Corp., Class A		131,246		5,549,081
Multiline Retail — 1.4%
Dollar General Corp.		33,634		4,545,971
Multi-Utilities — 0.4%
Public Service Enterprise Group, Inc.		18,758		1,103,346
Oil, Gas & Consumable Fuels — 9.1%
BP plc		1,067,347		7,435,959
Enterprise Products Partners LP(a)		177,591		5,127,052
Marathon Oil Corp.		162,370		2,307,278
Marathon Petroleum Corp.		100,911		5,638,907
ONEOK, Inc.		17,324		1,192,064
Suncor Energy, Inc.		29,532		920,217
TOTAL SA, ADR(a)		23,785		1,326,965
Williams Cos., Inc. (The)		165,803		4,649,116
				28,597,558

SCHEDULES OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Equity Dividend V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Personal Products — 0.9%
Unilever NV, NYRS(a)		48,968	$	2,973,337
Pharmaceuticals — 5.8%
AstraZeneca plc		62,660		5,122,561
Bayer AG (Registered)		40,627		2,817,901
Novartis AG, ADR(a)		13,884		1,267,748
Novo Nordisk A/S, ADR		31,213		1,593,111
Pfizer, Inc.		169,921		7,360,978
				18,162,299
Road & Rail — 0.5%
Union Pacific Corp.		8,511		1,439,295
Semiconductors & Semiconductor Equipment — 2.0%
Marvell Technology Group Ltd.		62,619		1,494,716
QUALCOMM, Inc.		48,421		3,683,385
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		30,331		1,188,065
				6,366,166
Software — 4.5%
Constellation Software, Inc.		1,810		1,705,924
Microsoft Corp.		58,264		7,805,046
Oracle Corp.		82,521		4,701,221
				14,212,191
Specialty Retail — 0.8%
Lowe’s Cos., Inc.		25,411		2,564,224

Security	Shares		Value
Technology Hardware, Storage & Peripherals — 1.6%
Samsung Electronics Co. Ltd., GDR(c)		5,036	$	5,122,653
Tobacco — 1.3%
Altria Group, Inc.		79,060		3,743,491
Imperial Brands plc		12,240		287,214
				4,030,705
Total Common Stocks — 92.8% (Cost: $256,686,856)				292,167,223
Total Long-Term Investments — 92.8% (Cost: $256,686,856)				292,167,223
Short-Term Securities — 10.6%(d)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,     2.26%		23,098,619		23,098,619
SL Liquidity Series, LLC, Money Market Series,     2.55%(e)		10,196,267		10,199,326
Total Short-Term Securities — 10.6% (Cost: $33,297,945)				33,297,945
Total Investments — 103.4% (Cost: $289,984,801)				325,465,168
Liabilities in Excess of Other Assets — (3.4)%				(10,559,223	)
Net Assets — 100.0%			$	314,905,945

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Annualized7-day yield as of period end.

^(e)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity		Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		20,001,000		3,097,619		23,098,619	$	23,098,619	$	235,982		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		6,383,011		3,813,256		10,196,267		10,199,326		15,391	(b)		4,903		212
							$	33,297,945	$	251,373		$	4,903	$	212

^(a) Includes net capital gain distributions, if applicable.

^(b) Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Equity Dividend V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	3,761,235	$	2,917,620	$	—	$	6,678,855
Air Freight & Logistics		2,173,876		—		—		2,173,876
Automobiles		2,647,936		—		—		2,647,936
Banks		41,882,131		—		—		41,882,131
Beverages		4,905,136		2,155,457		—		7,060,593
Building Products		2,140,312		—		—		2,140,312
Capital Markets		10,626,367		—		—		10,626,367
Chemicals		5,152,101		—		—		5,152,101
Communications Equipment		3,238,397		—		—		3,238,397
Construction Materials		—		1,828,169		—		1,828,169
Containers & Packaging		666,088		—		—		666,088
Diversified Financial Services		2,534,334		—		—		2,534,334
Diversified Telecommunication Services		13,933,660		—		—		13,933,660
Electric Utilities		6,863,841		—		—		6,863,841
Energy Equipment & Services		2,037,369		—		—		2,037,369
Food Products		3,602,072		4,439,448		—		8,041,520
Health Care Equipment & Supplies		9,452,801		6,590,910		—		16,043,711
Health Care Providers & Services		18,547,638		—		—		18,547,638
Household Durables		2,012,356		2,391,024		—		4,403,380
Household Products		1,406,590		—		—		1,406,590
Industrial Conglomerates		2,902,315		2,753,512		—		5,655,827
Insurance		25,764,137		—		—		25,764,137
IT Services		5,870,167		—		—		5,870,167
Leisure Products		586,283		—		—		586,283
Machinery		1,717,115		—		—		1,717,115
Media		5,549,081		—		—		5,549,081
Multiline Retail		4,545,971		—		—		4,545,971
Multi-Utilities		1,103,346		—		—		1,103,346
Oil, Gas & Consumable Fuels		21,161,599		7,435,959		—		28,597,558
Personal Products		2,973,337		—		—		2,973,337
Pharmaceuticals		10,221,837		7,940,462		—		18,162,299
Road & Rail		1,439,295		—		—		1,439,295
Semiconductors & Semiconductor Equipment		6,366,166		—		—		6,366,166
Software		14,212,191		—		—		14,212,191
Specialty Retail		2,564,224		—		—		2,564,224
Technology Hardware, Storage & Peripherals		—		5,122,653		—		5,122,653
Tobacco		3,743,491		287,214		—		4,030,705
Short-Term Securities		23,098,619		—		—		23,098,619
Subtotal	$	271,403,414	$	43,862,428	$	—	$	315,265,842
Investments valued at NAV(a)								10,199,326
Total Investments							$	325,465,168

^(a)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 7

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock  Equity Dividend  V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $10,049,643) (cost — $256,686,856)	$	292,167,223
Investments at value — affiliated (cost — $33,297,945)		33,297,945
Foreign currency at value (cost — $1,834)		1,794
Receivables:
Investments sold		815,464
Securities lending income — affiliated		1,685
Capital shares sold		13,545
Dividends — affiliated		41,813
Dividends — unaffiliated		357,833
Prepaid expenses		2,652
Total assets		326,699,954
LIABILITIES
Cash collateral on securities loaned at value		10,193,125
Payables:
Investments purchased		1,071,173
Capital shares redeemed		95,833
Distribution fees		55,697
Investment advisory fees		151,265
Directors’ and Officer’s fees		6,093
Other affiliates		596
Transfer agent fees		147,818
Other accrued expenses		72,409
Total liabilities		11,794,009
NET ASSETS	$	314,905,945
NET ASSETS CONSIST OF
Paid-in capital	$	266,816,235
Accumulated earnings		48,089,710
NET ASSETS	$	314,905,945
NET ASSET VALUE
Class I— Based on net assets of $32,518,039 and 2,783,293 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.68
Class III— Based on net assets of $282,387,906 and 24,233,997 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.65

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock  Equity Dividend  V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$         235,982
Dividends — unaffiliated	4,503,577
Securities lending income — affiliated — net	15,391
Foreign taxes withheld	(81,881)
Total investment income	4,673,069
EXPENSES
Investment advisory	919,657
Distribution — class specific	343,304
Transfer agent — class specific	319,558
Accounting services	30,659
Professional	22,690
Custodian	12,767
Printing	9,798
Directors and Officer	8,571
Transfer agent	2,344
Board realignment and consolidation	464
Miscellaneous	3,853
Total expenses	1,673,665
Less:
Fees waived and/or reimbursed by the Manager	(7,353)
Transfer agent fees waived and/or reimbursed — class specific	(319,558)
Total expenses after fees waived and/or reimbursed	1,346,754
Net investment income	3,326,315
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated	4,903
Investments — unaffiliated	8,705,456
Foreign currency transactions	(4,509)
	8,705,850
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated	212
Investments — unaffiliated	31,511,006
Foreign currency translations	651
	31,511,869
Net realized and unrealized gain	40,217,719
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$    43,544,034

See notes to financial statements.

FINANCIAL STATEMENTS 9

Statement of Changes in Net Assets

	BlackRock Equity Dividend V.I. Fund
	Six Months Ended 06/30/19 (unaudited)	Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$        3,326,315	$        5,679,148
Net realized gain	8,705,850	21,326,925
Net change in unrealized appreciation (depreciation)	31,511,869	(48,853,875)
Net increase (decrease) in net assets resulting from operations	43,544,034	(21,847,802)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I	(188,051)	(3,195,948)
Class III	(1,500,992)	(25,079,326)
Decrease in net assets resulting from distributions to shareholders	(1,689,043)	(28,275,274)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions	(7,858,395)	5,893,147
NET ASSETS
Total increase (decrease) in net assets	33,996,596	(44,229,929)
Beginning of period	280,909,349	325,139,278
End of period	$    314,905,945	$    280,909,349

^(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Equity Dividend V.I. Fund
	Class I
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.17		$	12.14		$	11.15		$	10.04		$	10.90		$	10.78
Net investment income(a)		0.13			0.24			0.22			0.21			0.19			0.20
Net realized and unrealized gain (loss)		1.45			(1.09	)		1.62			1.42			(0.25	)		0.80
Net increase (decrease) from investment operations		1.58			(0.85	)		1.84			1.63			(0.06	)		1.00
Distributions(b)
From net investment income		(0.07	)		(0.24	)		(0.21	)		(0.19	)		(0.18	)		(0.20	)
From net realized gain		—			(0.88	)		(0.64	)		(0.33	)		(0.62	)		(0.68	)
Total distributions		(0.07	)		(1.12	)		(0.85	)		(0.52	)		(0.80	)		(0.88	)
Net asset value, end of period	$	11.68		$	10.17		$	12.14		$	11.15		$	10.04		$	10.90
Total Return(c)
Based on net asset value		15.52%(d)			(7.16)%			16.74%			16.40%			(0.61)%			9.34%
Ratios to Average Net Assets(e)
Total expenses		0.86%(f)			0.87%			0.89%			0.89%			1.00%			0.99%
Total expenses after fees waived and/or reimbursed		0.65%(f)			0.66%			0.68%			0.70%			0.79%			0.78%
Net investment income		2.39%(f)			2.00%			1.82%			1.98%			1.79%			1.81%
Supplemental Data
Net assets, end of period (000)	$	32,518		$	30,655		$	37,525		$	35,256		$	30,527		$	35,694
Portfolio turnover rate		26%			37%			37%			23%			25%			18%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions. (d) Aggregate total return. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Investments in underlying funds		0.01%			0.01%			0.01%			0.01%			—%			—%

^(f)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 11

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Equity Dividend V.I. Fund
	Class III
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.15		$	12.12		$	11.13		$	10.03		$	10.89		$	10.77
Net investment income(a)		0.12			0.21			0.19			0.18			0.17			0.17
Net realized and unrealized gain (loss)		1.44			(1.09	)		1.62			1.42			(0.25	)		0.80
Net increase (decrease) from investment operations		1.56			(0.88	)		1.81			1.60			(0.08	)		0.97
Distributions(b)
From net investment income		(0.06	)		(0.21	)		(0.18	)		(0.17	)		(0.16	)		(0.17	)
From net realized gain		—			(0.88	)		(0.64	)		(0.33	)		(0.62	)		(0.68	)
Total distributions		(0.06	)		(1.09	)		(0.82	)		(0.50	)		(0.78	)		(0.85	)
Net asset value, end of period	$	11.65		$	10.15		$	12.12		$	11.13		$	10.03		$	10.89
Total Return(c)
Based on net asset value		15.39%(d)			(7.42)%			16.49%			16.06%			(0.82)%			9.07%
Ratios to Average Net Assets(e)
Total expenses		1.12%(f)			1.12%			1.16%			1.13%			1.16%			1.24%
Total expenses after fees waived and/or reimbursed		0.90%(f)			0.91%			0.93%			0.95%			1.03%			1.03%
Net investment income		2.14%(f)			1.75%			1.57%			1.73%			1.59%			1.56%
Supplemental Data
Net assets, end of period (000)	$	282,388		$	250,255		$	287,615		$	223,338		$	85,163		$	22,619
Portfolio turnover rate		26%			37%			37%			23%			25%			18%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions. (d) Aggregate total return. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Investments in underlying funds		0.01%			0.01%			0.01%			0.01%			—%			—%

^(f)  Annualized.

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Equity Dividend V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the

NOTESTO FINANCIAL STATEMENTS 13

Notes to Financial Statements  (unaudited) (continued)

Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 �� Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Citigroup Global Markets, Inc.	$	3,711,765	$	(3,711,765	)	$	—
Credit Suisse Securities (USA) LLC		1,554,543		(1,554,543	)		—
JP Morgan Securities LLC		856,152		(856,152	)		—
Morgan Stanley & Co. LLC		3,732,917		(3,732,917	)		—
State Street Bank & Trust Co.		194,266		(194,266	)		—
	$	10,049,643	$	(10,049,643	)	$	—

^(a)  Cash collateral with a value of $10,193,125 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.60	%
$1 Billion - $3 Billion		0.56
$3 Billion - $5 Billion		0.54
$5 Billion - $10 Billion		0.52
Greater than $10 Billion		0.51

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $343,304.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent – class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	31,806
Class III		287,752
	$	319,558

NOTESTO FINANCIAL STATEMENTS 15

Notes to Financial Statements  (unaudited) (continued)

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $7,353.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $1,765 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse all transfer agent fees for Class I and III. The Manager has agreed not to reduce or discontinue this contractual through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$        31,806
Class III		287,752
		$      319,558

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $4,426 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the six months ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $73,793,606 and $82,791,626 respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	290,978,894
Gross unrealized appreciation	$	43,628,142
Gross unrealized depreciation		(9,141,868	)
Net unrealized appreciation	$	34,486,274

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience

NOTESTO FINANCIAL STATEMENTS 17

Notes to Financial Statements  (unaudited) (continued)

significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

Concentration Risk: As of period end, the Fund invested a significant portion of its assets in securities in the Financials sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income, and/or liquidity of positions in such securities.

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended     12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		54,879		$	614,637			328,463		$	3,936,049
Shares issued in reinvestment of distributions		16,597			188,051			301,112			3,195,948
Shares redeemed		(301,792	)		(3,371,115	)		(707,195	)		(8,566,862)
Net decrease		(230,316	)	$	(2,568,427	)		(77,620	)	$	(1,434,865)
Class III
Shares sold		1,548,822		$	16,708,897			2,172,331		$	26,271,559
Shares issued in reinvestment of distributions		132,714			1,500,992			2,377,041			25,079,326
Shares redeemed		(2,098,374	)		(23,499,857	)		(3,636,671	)		(44,022,873)
Net increase (decrease)		(416,838	)	$	(5,289,968	)		912,701		$	7,328,012
Total Net Increase (Decrease)		(647,154	)	$	(7,858,395	)		835,081		$	5,893,147

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report  

Portfolio Abbreviations
ADR	American Depositary Receipts
GDR	Global Depositary Receipts
NYRS	New York Registered Shares

GLOSSARYOF TERMS USEDINTHIS REPORT 19

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Global Allocation V.I. Fund

Not FDIC Insured - May Lose Value - No Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock Global Allocation V.I. Fund

Investment Objective

BlackRock Global Allocation V.I. Fund’s (the “Fund”) investment objective is to seek high total investment return.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed both its Reference Benchmark and the broad-basedall-equity benchmark, the FTSE World Index. The Reference Benchmark is comprised as follows: 36% S&P 500^® Index; 24% FTSE World(ex-U.S.) Index; 24% ICE BofAML Current5-Year U.S. Treasury Index; and 16% FTSENon-U.S. Dollar World Government Bond Index. The Fund invests in both equities and bonds; therefore, Fund management believes the Reference Benchmark provides a more accurate representation of the Fund’s composition and is a more comparable means for measurement. The following discussion of relative performance pertains to the Reference Benchmark. The following commentary (and referenced allocation percentages) are based on the economic exposures of the Fund, which reflect adjustments for futures, options and swaps, (except with respect to fixed income securities), and convertible bonds, and may vary relative to the market value.

What factors influenced performance?

Within equities, an overweight to Japan and India and an underweight to the U.S. negatively impacted performance. From a sector perspective, an underweight to and security selection within information technology (“IT”), as well as security selection within consumer discretionary, industrials and healthcare weighed on returns. Exposure to cash and cash equivalents and gold-related securities also detracted from performance.

Within equities, an overweight to China contributed to performance. From a sector perspective, security selection within communication services, consumer staples and materials positively impacted performance. A broad underweight to fixed income was additive as the asset class underperformed the Fund’s Reference Benchmark. Within fixed income, exposure to corporate credit, notably U.S. investment grade credit, contributed to performance. Currency management, notably an underweight to the euro, added to returns as well.

The Fund uses derivatives, which may include options, futures, swaps and forward contracts both to seek to enhance returns of the Fund and to hedge (or protect) against adverse movements in currency exchange rates, interest rates and movements in the securities markets. During the period, the Fund’s use of derivatives, in aggregate, modestly detracted from the Fund’s performance.

Describe recent portfolio activity.

During the period, the Fund’s overall equity allocation increased from 58% to 62% of net assets. Within equities, the Fund increased exposure to the United States and Europe, and decreased exposure to Asia (specifically Japan). From a sector perspective, the Fund increased exposure to industrials, financials, consumer discretionary, IT and real estate, and decreased exposure to communication services, materials and health care. The Fund’s overall allocation to fixed income increased from 31% to 35% of net assets. Within fixed income, the Fund increased exposure to government bonds and corporate credit. The Fund’s exposure to commodity-related securities decreased from 2% to 1% of net assets.

Reflecting the changes in the Fund’s overall allocations to the equity, fixed income and commodity-related asset classes during the period, the Fund’s cash and cash equivalent holdings decreased from 9% to 2% of net assets. During thesix-month period, cash helped mitigate portfolio volatility and served as a source of funds for new investments and meeting redemptions.

Describe portfolio positioning at period end.

Relative to its Reference Benchmark, the Fund was overweight in equities, underweight in fixed income, and overweight in commodity-related and cash equivalents. Within equities, the Fund was relatively neutrally weighted in the United States and Europe, and overweight in Asia. Within Asia, the Fund was overweight in China, India and Taiwan, and underweight in Australia. From a sector perspective, the Fund was overweight in communication services, energy, health care and industrials, and underweight in IT, financials and consumer staples. Within fixed income, the Fund was underweight in developed market government bonds and overweight in corporate bonds. With respect to the currency exposure, the Fund was overweight in the Japanese yen and U.S. dollar, and underweight in the Australian dollar and the euro.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Global Allocation V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns(a)			1 Year			5 Years			10 Years
Class I(b)(c)		10.73	%		4.18	%		3.53	%		6.62	%
Class II(b)(c)		10.63			4.01			3.38			6.46
Class III(b)(c)		10.58			3.88			3.28			6.36
FTSE World Index(d)		16.63			6.46			6.82			10.91
Reference Benchmark(e)		12.09			7.08			5.14			8.17
U.S. Stocks: S&P 500®Index(f)		18.54			10.42			10.71			14.70
Non-U.S. Stocks: FTSE World (ex U.S.) Index(g)		13.96			1.79			2.56			7.14
U.S. Bonds: ICE BofAML Current5-Year U.S. Treasury Index(h)		4.74			7.42			1.98			2.87
Non U.S. Bonds: FTSENon-U.S. Dollar World Government Bond Index(i)		5.50			4.54			0.19			1.88

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fees. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  The Fund invests in a portfolio of U.S. and foreign equity securities, debt and money market securities, the combination of which will be varied from time to time with respect to types of securities and markets in response to changing markets and economic trends.

^(d)  A market cap weighted index representing the performance of the large andmid-cap stocks from the developed and advanced emerging countries within the FTSE Global Equity Index Series.

^(e)  An unmanaged weighted index comprised as follows: 36% S&P 500^® Index; 24% FTSE World (ex U.S.) Index; 24% ICE BofAML Current5-Year U.S. Treasury Index; and 16% FTSENon-U.S. Dollar World Government Bond Index.

^(f)  An unmanaged index that covers 500 leading companies and captures approximately 80% coverage of available market capitalization.

^(g)  A market cap weighted index representing the performance of the large andmid-cap stocks from the developed and advanced emerging countries excluding the U.S. within the FTSE Global Equity Index Series.

^(h)  An unmanaged index is designed to track the total return of the current coupon five-year U.S. Treasury bond.

⁽ⁱ⁾  An unmanaged market capitalization-weighted index tracks 22 government bond indexes, excluding the United States.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual								Hypothetical (a)
					Including dividend expense		Excluding dividend expense				Including dividend expense				Excluding dividend expense
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Ending Account Value (06/30/19)		Expenses Paid During the Period (c)
Class I	$	1,000.00	$	1,107.30	$	3.81	$	3.81	$	1,000.00	$	1,021.17	$	3.66	$	1,021.17	$	3.66
Class II		1,000.00		1,106.30		4.65		4.60		1,000.00		1,020.38		4.46		1,020.43		4.41
Class III		1,000.00		1,105.80		5.17		5.12		1,000.00		1,019.89		4.96		1,019.93		4.91

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.73% for Class I , 0.89% for Class II and 0.99% for Class III ), multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.73% for Class I , 0.88% for Class II and 0.98% for Class III ), multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

FUND SUMMARY 3

Fund Summary  as of June 30, 2019 (continued) BlackRock Global Allocation V.I. Fund

Overall Asset Exposure

	Percent of Fund’s Net Assets (a)						Reference Benchmark (b) Percentage
	06/30/2019			12/31/2018
U.S. Equities		35	%		32	%		35	%
European Equities		12			9			13
Asia Pacific Equities		12			14			9
Other Equities		3			3			3
Total Equities		62			58			60
U.S. Dollar Denominated Fixed Income Securities		31			29			24
U.S. Issuers		29			27			—
Non-U.S. Issuers		2			2			—
Non-U.S. Dollar Denominated Fixed Income Securities		4			2			16
Total Fixed Income Securities		35			31			40
Commodity-Related		1			2			—
Cash & Short-Term Securities		2			9			—

^(a)  Exposure based on market value and adjusted for the economic value of futures, swaps, and options (except with respect to fixed income securities), and convertible bonds.

^(b)  The Reference Benchmark is an unmanaged weighted index comprised as follows: 36% of the S&P 500^®Index; 24% FTSE World (ex U.S.) Index; 24% ICE BofAML Current5-Year U.S. Treasury Index; and 16% FTSENon-U.S. Dollar World Government Bond Index. Descriptions of these indexes are found on page 2 of this report to shareholders in the “Performance Summary” section.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Consolidated Financial Statements.

DISCLOSUREOF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS 5

Consolidated Schedule of Investments  (unaudited) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 57.0%
Argentina — 0.0%
YPF SA, ADR		16,749	$	304,999
Australia — 0.3%
AGL Energy Ltd.		96,985		1,363,945
CSL Ltd.		657		99,486
Goodman Group		3,802		40,186
Newcrest Mining Ltd.		761,222		17,101,784
Quintis HoldCo Pty. Ltd. (Acquired 10/22/18, cost $5,761,227)(a)(b)(c)*		9,827,224		7,658,116
Rio Tinto Ltd.		3,618		264,929
South32 Ltd.		86,414		193,709
				26,722,155
Brazil — 0.6%
Ambev SA		21,847		101,726
Azul SA, ADR(b)(d)		813,094		27,189,863
B3 SA - Brasil Bolsa Balcao(b)		1,785		17,446
Banco do Brasil SA		17,367		243,232
Banco Santander Brasil SA		11,957		142,770
Engie Brasil Energia SA		2,389		27,125
Notre Dame Intermedica Participacoes SA		1,577,482		16,436,426
Petrobras Distribuidora SA		107,440		699,209
				44,857,797
Canada — 1.7%
Bank of Montreal		6,886		520,150
Barrick Gold Corp.		174,496		2,754,253
Canadian National Railway Co.		11,557		1,069,610
Canadian Pacific Railway Ltd.		3,219		758,151
Enbridge, Inc.		1,073,277		38,765,990
Fairfax Financial Holdings Ltd.		317		155,592
Imperial Oil Ltd.		19,385		536,749
Magna International, Inc.		15,294		760,992
Nutrien Ltd.		7,965		426,061
Rogers Communications, Inc., Class B(d)		6,218		332,849
Suncor Energy, Inc.		1,035,264		32,293,944
TC Energy Corp.		825,412		40,919,207
Teck Resources Ltd., Class B		5,239		120,898
Thomson Reuters Corp.		20,459		1,319,825
Wheaton Precious Metals Corp.		638,888		15,450,791
				136,185,062
Chile — 0.0%
Cia Cervecerias Unidas SA, ADR(d)		71,208		2,011,626
China — 1.5%
Agile Group Holdings Ltd.		282,000		377,491
Agricultural Bank of China Ltd., Class H		523,000		218,890
Air China Ltd., Class H		20,000		20,110
Alibaba Group Holding Ltd., ADR(b)		284,680		48,239,026
Anhui Conch Cement Co. Ltd., Class A		35,400		214,090
Anhui Conch Cement Co. Ltd., Class H		97,500		610,088
Baidu, Inc., ADR(b)		3,604		422,965
Bank of China Ltd., Class H		152,000		64,139
Beijing Capital International Airport Co. Ltd., Class H		196,000		171,769
Beijing Enterprises Holdings Ltd.		78,000		396,492
BYD Electronic International Co. Ltd.		90,000		128,780
CGN Power Co. Ltd., Class H(e)		590,000		162,385
China CITIC Bank Corp. Ltd., Class H		644,000		366,752
China Construction Bank Corp., Class H		257,000		221,535
China Hongqiao Group Ltd.		416,000		293,419

Security	Shares		Value
China (continued)
China Longyuan Power Group Corp.
Ltd., Class H		139,000	$	89,315
China Mobile Ltd.		99,500		905,815
China Petroleum & Chemical Corp., Class A		369,100		294,662
China Petroleum & Chemical Corp., Class H		1,588,000		1,081,777
China Resources Beer Holdings Co. Ltd.		78,000		370,564
China Resources Cement Holdings Ltd.		656,000		635,109
China Resources Gas Group Ltd.		54,000		268,147
China Resources Pharmaceutical Group Ltd.(e)		11,500		12,955
China Resources Power Holdings Co. Ltd.		64,000		93,353
China Shenhua Energy Co. Ltd., Class H		255,000		534,115
CITIC Ltd.		240,000		345,431
CITIC Securities Co. Ltd., Class H		38,000		79,254
CNOOC Ltd.		504,000		859,705
Country Garden Holdings Co. Ltd.		99,000		150,504
Country Garden Services Holdings Co. Ltd.(b)		64,321		148,625
Daqin Railway Co. Ltd., Class A		20,600		24,272
Fosun International Ltd.		832,500		1,108,400
Guotai Junan Securities Co. Ltd., Class H(e)		35,600		63,410
Industrial & Commercial Bank of China Ltd., Class H		1,504,000		1,097,802
JD.com, Inc., ADR(b)		17,800		539,162
Lenovo Group Ltd.		206,000		159,503
Logan Property Holdings Co. Ltd.		42,000		67,915
New Oriental Education & Technology Group, Inc., ADR(b)		762		73,594
PetroChina Co. Ltd., Class H		198,000		109,175
Sany Heavy Industry Co. Ltd., Class A		111,300		212,233
Sinopec Engineering Group Co. Ltd., Class H		135,500		114,842
Sinopec Shanghai Petrochemical Co. Ltd., Class H		1,338,000		532,838
Tencent Holdings Ltd.		1,126,600		50,966,730
Tencent Music Entertainment Group, ADR(b)		6,177		92,593
Tingyi Cayman Islands Holding Corp.		158,000		263,954
Tsingtao Brewery Co. Ltd., Class A		9,900		72,109
Tsingtao Brewery Co. Ltd., Class H		100,000		637,172
Want Want China Holdings Ltd.		3,870,000		3,147,157
Weichai Power Co. Ltd., Class H		27,000		45,669
Wuliangye Yibin Co. Ltd., Class A		5,800		99,862
Yanzhou Coal Mining Co. Ltd., Class H		292,000		273,050
Yum China Holdings, Inc.		82,371		3,805,540
Zhejiang Expressway Co. Ltd., Class H		286,000		301,438
Zijin Mining Group Co. Ltd., Class H		924,000		375,506
				121,961,188
Czech Republic — 0.0%
CEZ A/S		113,058		2,732,202
Denmark — 0.1%
AP Moller — Maersk A/S, Class A		12		13,956
Carlsberg A/S, Class B		10,719		1,422,382
Novo Nordisk A/S, Class B		152,811		7,805,159
				9,241,497

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Finland — 0.0%
Nokia OYJ		135,818	$	676,481
France — 2.8%
Cie de Saint-Gobain		123,804		4,834,518
Danone SA		875,883		74,162,952
Dassault Aviation SA		8,508		12,228,500
Eiffage SA		27,669		2,734,513
Electricite de France SA		1,031		12,999
Engie SA		11,373		172,454
EssilorLuxottica SA		65,139		8,489,039
Kering SA		2,360		1,392,926
Orange SA		11,160		176,028
Publicis Groupe SA		20,664		1,090,663
Renault SA		14,498		911,493
Safran SA		250,223		36,605,570
Sanofi		90,281		7,802,292
Societe Generale SA		10,250		258,704
Sodexo SA		276,977		32,376,914
TOTAL SA		446,744		25,059,559
TOTAL SA, ADR(d)		11,228		626,410
Unibail-Rodamco-Westfield		70,802		10,607,054
Unibail-Rodamco-Westfield		51,795		7,759,560
Vivendi SA		21,735		596,467
				227,898,615
Germany — 1.6%
adidas AG		3,598		1,113,113
Allianz SE (Registered)		4,199		1,012,699
Bayer AG (Registered)		268,785		18,643,008
Deutsche Boerse AG		5,844		824,997
Evonik Industries AG		11,699		340,884
Fresenius SE & Co. KGaA		582,924		31,652,768
Knorr-Bremse AG(b)		257,171		28,658,054
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		307		76,952
SAP SE		4,316		591,688
Siemens AG (Registered)		342,603		40,788,715
Vonovia SE		68,344		3,264,780
				126,967,658
Hong Kong — 0.8%
CK Asset Holdings Ltd.		17,000		133,179
CK Infrastructure Holdings Ltd.		425,000		3,463,874
CLP Holdings Ltd.		276,000		3,041,465
Hang Lung Properties Ltd.		1,714,000		4,077,629
HKT Trust & HKT Ltd.(f)		1,779,000		2,823,918
Hongkong Land Holdings Ltd.		150,800		972,015
Hysan Development Co. Ltd.		238,000		1,229,783
I-CABLE Communications Ltd.(b)		349,342		4,426
Jardine Matheson Holdings Ltd.		78,600		4,957,539
Link REIT		233,000		2,867,161
Power Assets Holdings Ltd.		165,500		1,190,615
Sino Land Co. Ltd.		500,000		838,539
Sun Hung Kai Properties Ltd.		2,247,083		38,121,913
Swire Pacific Ltd., Class A		215,000		2,641,761
WH Group Ltd.(e)		136,500		138,465
Wharf Real Estate Investment Co. Ltd.		328,000		2,311,554
				68,813,836
India — 1.0%
Coal India Ltd.		978,852		3,598,538
HCL Technologies Ltd.		34,973		539,509
Hero MotoCorp Ltd.		83,218		3,112,784
Hindustan Petroleum Corp. Ltd.		59,909		250,688

Security	Shares		Value
India (continued)
Housing Development Finance Corp. Ltd.		850,073	$	26,992,494
Infosys Ltd.		30,824		328,973
Maruti Suzuki India Ltd.		81,972		7,760,067
Nestle India Ltd.		117		20,192
Oil & Natural Gas Corp. Ltd.		898,458		2,183,518
Reliance Industries Ltd.		1,943,012		35,260,045
Tata Consultancy Services Ltd.		439		14,166
Vedanta Ltd.		5,270		13,315
Wipro Ltd.		10,868		44,242
				80,118,531
Indonesia — 0.0%
Bank Central Asia Tbk. PT		1,602,500		3,400,627
Italy — 0.6%
Enel SpA		3,844,281		26,816,743
Eni SpA		41,285		686,459
RAI Way SpA(e)		1,588,867		9,503,245
Snam SpA		436,092		2,169,480
Telecom Italia SpA(b)		11,523,298		6,291,211
Telecom Italia SpA		665,788		345,215
UniCredit SpA		38,194		470,123
				46,282,476
Japan — 6.5%
Aeon Co. Ltd.		13,500		232,328
AGC, Inc.		3,100		107,390
Ajinomoto Co., Inc.		1,635,500		28,373,883
Alfresa Holdings Corp.		85,500		2,114,509
Alps Alpine Co. Ltd.		43,432		735,547
Astellas Pharma, Inc.		1,826,965		26,035,652
Canon Marketing Japan, Inc.		73,000		1,597,034
Daicel Corp.		265,500		2,366,120
Daikin Industries Ltd.		109,700		14,364,001
Daiwa House Industry Co. Ltd.		12,000		350,649
Denso Corp.		557,620		23,512,665
Dowa Holdings Co. Ltd.		42,000		1,350,077
East Japan Railway Co.		447,851		41,938,462
Exedy Corp.		53,600		1,125,584
GS Yuasa Corp.		127,500		2,465,206
Hino Motors Ltd.		135,200		1,141,118
Hitachi Ltd.		39,000		1,434,916
Hoya Corp.		379,774		29,187,247
Japan Airlines Co. Ltd.		1,140,400		36,396,706
Japan Aviation Electronics Industry Ltd.		130,600		1,924,620
JFE Holdings, Inc.		9,600		141,358
Kamigumi Co. Ltd.		71,900		1,705,015
KDDI Corp.		133,800		3,404,767
Keyence Corp.		4,600		2,836,923
Kinden Corp.		292,400		4,487,922
Koito Manufacturing Co. Ltd.		428,000		22,905,061
Kuraray Co. Ltd.		108,600		1,300,941
Kyowa Hakko Kirin Co. Ltd.		7,800		140,740
Kyudenko Corp.		38,400		1,156,291
Mabuchi Motor Co. Ltd.		70,900		2,432,417
Maeda Road Construction Co. Ltd.		74,600		1,572,832
Medipal Holdings Corp.		98,600		2,180,887
MEIJI Holdings Co. Ltd.		1,400		100,101
Mitsubishi Estate Co. Ltd.		229,200		4,271,705
Mitsubishi Heavy Industries Ltd.		14,200		619,291
Mitsubishi Motors Corp.		49,400		237,273
Mitsubishi UFJ Financial Group, Inc. .		224,400		1,068,812
Mitsui & Co. Ltd.		14,500		236,682
Murata Manufacturing Co. Ltd.		831,884		37,452,026
Nichias Corp.		113,700		2,049,326

CONSOLIDATED SCHEDULE OF INVESTMENTS 7

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Nintendo Co. Ltd.		800	$	293,519
Nippo Corp.		72,000		1,421,003
Nippon Telegraph & Telephone Corp.		71,160		3,315,323
Nippon Television Holdings, Inc.		164,700		2,443,639
NTT DOCOMO, Inc.		7,000		163,323
Okumura Corp.		86,350		2,646,244
Olympus Corp.		820,900		9,135,703
Ono Pharmaceutical Co. Ltd.		37,500		674,242
Otsuka Holdings Co. Ltd.		19,600		640,464
Rohm Co. Ltd.		157,053		10,581,586
Seino Holdings Co. Ltd.		100,000		1,335,571
Seven & i Holdings Co. Ltd.		50,800		1,721,175
Shimamura Co. Ltd.		16,300		1,220,317
Shin-Etsu Chemical Co. Ltd.		348,134		32,572,086
Shionogi & Co. Ltd.		3,500		202,240
Shiseido Co. Ltd.		1,800		136,146
Sompo Holdings, Inc.		13,500		522,201
Sony Corp.		27,400		1,439,869
Stanley Electric Co. Ltd.		46,000		1,134,224
Subaru Corp.		1,316,464		32,052,161
Sumitomo Chemical Co. Ltd.		65,000		302,662
Sumitomo Mitsui Financial Group, Inc.		3,300		116,971
Suzuken Co. Ltd.		38,800		2,280,024
Suzuki Motor Corp.		802,289		37,744,597
T&D Holdings, Inc.		34,200		372,216
Toagosei Co. Ltd.		283,200		2,983,612
Toda Corp.		379,796		2,105,631
Tokyo Gas Co. Ltd.		1,040,714		24,531,668
Tokyo Steel Manufacturing Co. Ltd.		376,600		2,851,525
Toshiba Corp.		10,000		311,748
Toyota Industries Corp.		407,077		22,451,383
TV Asahi Holdings Corp.		119,200		1,926,308
Yahoo Japan Corp.		185,400		545,363
Yamato Holdings Co. Ltd.		9,100		185,490
Yamato Kogyo Co. Ltd.		55,600		1,626,633
ZOZO, Inc.		1,050,600		19,716,569
				530,757,520
Macau — 0.0%
Sands China Ltd.		9,600		45,860
Malaysia — 0.0%
Malaysia Airports Holdings Bhd		623,400		1,288,140
Mexico — 0.0%
America Movil SAB de CV		1,199,838		874,541
Grupo Televisa SAB		59,754		100,868
				975,409
Netherlands — 2.3%
ABN AMRO Group NV, CVA(e)		2,309,692		49,421,625
Adyen NV(b)(e)		563		434,290
Aegon NV		4,296		21,340
Akzo Nobel NV		6,136		576,601
ASML Holding NV		3,916		814,880
Koninklijke Philips NV		1,303,286		56,661,587
NXP Semiconductors NV		14,693		1,434,184
Royal Dutch Shell plc, Class A		1,633,714		53,201,310
Royal Dutch Shell plc, Class B		24,581		805,438
Royal Dutch Shell plc, ADR, Class A(d)		417,354		27,157,225
				190,528,480
Norway — 0.0%
Equinor ASA		2,976		59,036

Security	Shares		Value
Peru — 0.0%
Southern Copper Corp.(d)		15,091	$	586,285
Portugal — 0.0%
Jeronimo Martins SGPS SA		146,016		2,353,656
Singapore — 0.5%
CapitaLand Ltd.(d)		12,316,150		32,160,290
ComfortDelGro Corp. Ltd.		1,499,800		2,949,495
Genting Singapore Ltd.		764,200		519,928
Singapore Telecommunications Ltd.		1,061,900		2,748,533
United Overseas Bank Ltd.		172,500		3,334,794
				41,713,040
South Africa — 0.0%
Aspen Pharmacare Holdings Ltd.		23,780		169,736
Kumba Iron Ore Ltd.		564		19,994
MultiChoice Group Ltd.(b)		193		1,836
Old Mutual Ltd.		277,283		417,470
				609,036
South Korea — 0.5%
Coway Co. Ltd.		30,500		2,044,516
Hana Financial Group, Inc.		17,140		555,548
Industrial Bank of Korea		27,644		336,565
KB Financial Group, Inc.		7,558		299,593
KT&G Corp.		215,752		18,411,277
LG Chem Ltd.(d)		10,247		3,149,256
LG Electronics, Inc.		17,999		1,238,442
NCSoft Corp.		6,649		2,750,541
POSCO		14,435		3,064,334
Samsung Electro-Mechanics Co. Ltd.		358		30,461
Samsung Electronics Co. Ltd.		4,222		171,921
Samsung SDS Co. Ltd		1,130		210,643
Shinhan Financial Group Co. Ltd.		27,898		1,085,067
SK Telecom Co. Ltd.		11,493		2,577,999
S-Oil Corp.(d)		23,292		1,691,715
				37,617,878
Spain — 0.5%
Banco Bilbao Vizcaya Argentaria SA		4,650		25,936
CaixaBank SA		145,101		416,151
Cellnex Telecom SA(e)		1,119,733		41,422,808
Telefonica SA		11,851		97,454
				41,962,349
Sweden — 0.0%
Assa Abloy AB, Class B		19,920		449,449
Atlas Copco AB, Class A		11,851		379,773
Atlas Copco AB, Class B		11,828		340,060
Sandvik AB		38,360		704,905
Telefonaktiebolaget LM Ericsson, Class B		23,460		222,676
				2,096,863
Switzerland — 1.0%
Alcon, Inc.(b)		4,356		268,981
Cie Financiere Richemont SA (Registered)		21,551		1,831,330
Glencore plc(b)		403,778		1,397,446
LafargeHolcim Ltd. (Registered)(b)		1,558		76,181
Nestle SA (Registered)		714,406		73,956,911
Roche Holding AG		278		78,170
SGS SA (Registered)		152		387,427
Swiss Re AG		2,704		274,774
				78,271,220

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Taiwan — 1.3%
Cathay Financial Holding Co. Ltd.		1,994,000	$	2,761,852
Chunghwa Telecom Co. Ltd.		4,728,000		17,197,016
Far EasTone Telecommunications Co. Ltd.		2,873,000		7,240,093
Formosa Chemicals & Fibre Corp.		657,000		2,183,190
Formosa Petrochemical Corp.		511,000		1,824,841
Formosa Plastics Corp.		695,000		2,564,996
Fubon Financial Holding Co. Ltd.		2,415,000		3,568,773
Globalwafers Co. Ltd.		20,000		203,471
Hon Hai Precision Industry Co. Ltd.(b)		1,369,960		3,417,934
MediaTek, Inc.		32,000		324,121
Nan Ya Plastics Corp		882,000		2,233,394
Taiwan Mobile Co. Ltd.		2,212,000		8,724,223
Taiwan Semiconductor Manufacturing Co. Ltd.		6,600,000		50,479,334
Uni-President Enterprises Corp.		1,424,000		3,793,082
				106,516,320
Thailand — 0.2%
Advanced Info Service PCL		546,000		3,885,126
Intouch Holdings PCL, Class F		1,642,700		3,362,535
PTT Global Chemical PCL		1,463,600		3,057,376
Siam Cement PCL (The)		202,900		3,123,012
Thai Beverage PCL		1,418,500		870,783
Thai Oil PCL		1,018,500		2,212,303
				16,511,135
Turkey — 0.0%
Eregli Demir ve Celik Fabrikalari TAS		74,048		100,572
Turkcell Iletisim Hizmetleri A/S		11,880		26,230
				126,802
United Arab Emirates — 0.2%
NMC Health plc(d)		512,786		15,689,061
United Kingdom — 1.4%
AstraZeneca plc		1,547		126,470
Berkeley Group Holdings plc		66,266		3,140,576
Diageo plc		16,721		719,676
Fiat Chrysler Automobiles NV(b)		30,946		429,482
GlaxoSmithKline plc		38,543		772,589
GW Pharmaceuticals plc, ADR(b)		23,400		4,033,926
HSBC Holdings plc		3,224,247		26,910,423
Kingfisher plc		6,379,535		17,388,577
Liberty Global plc, Class A(b)		630,503		17,017,276
Liberty Global plc, Class C(b)		1,153		30,589
RELX plc		1,870		45,356
Rolls-Royce Holdings plc(b)		116,511		1,244,680
Vodafone Group plc		26,720,487		43,796,574
				115,656,194
United States — 31.6%
Abbott Laboratories		49,347		4,150,083
AbbVie, Inc.		78,665		5,720,519
Accenture plc, Class A		8,800		1,625,976
Adobe, Inc.(b)		7,763		2,287,368
AES Corp.		39,091		655,165
Agilent Technologies, Inc.		290,698		21,706,420
Air Products & Chemicals, Inc.		265,013		59,990,993
Allergan plc		8,388		1,404,403
Allstate Corp. (The)		1,677		170,534
Ally Financial, Inc.		15,606		483,630
Alphabet, Inc., Class A(b)		1,485		1,607,958
Alphabet, Inc., Class C(b)		124,632		134,715,974
Altria Group, Inc.		788,932		37,355,930
Amazon.com, Inc.(b)		38,701		73,285,375
American Tower Corp.		20,625		4,216,781

Security	Shares		Value
United States (continued)
Ameriprise Financial, Inc.		14,955	$	2,170,868
Amgen, Inc.		6,950		1,280,746
Anthem, Inc.(d)		247,565		69,865,319
Apple, Inc.		515,129		101,954,332
AT&T, Inc.		2,718		91,080
Autodesk, Inc.(b)		6,136		999,554
AutoZone, Inc.(b)		152		167,119
Bank of America Corp.		69,292		2,009,468
Bank of New York Mellon Corp. (The)		4,093		180,706
Baxter International, Inc.(d)		39,368		3,224,239
BB&T Corp.		3,246		159,476
Berkshire Hathaway, Inc., Class B(b)		40,079		8,543,640
Biogen, Inc.(b)		55,931		13,080,583
Boeing Co. (The)		3,939		1,433,835
Booking Holdings, Inc.(b)		312		584,909
Boston Properties, Inc.		2,436		314,244
Bristol-Myers Squibb Co.		35,028		1,588,520
Capital One Financial Corp.		6,683		606,415
Cardinal Health, Inc.		14,252		671,269
Carnival Corp.		16,073		748,198
Caterpillar, Inc.		8,722		1,188,721
Centene Corp.(b)		7,459		391,150
CenterPoint Energy, Inc.		15,826		453,098
Cerner Corp.(b)		351		25,728
CH Robinson Worldwide, Inc.(d)		50,472		4,257,313
Charles Schwab Corp. (The)		508,232		20,425,844
Charter Communications, Inc., Class A(b)(d)		134,120		53,001,542
Chevron Corp.		22,126		2,753,359
Chubb Ltd.		184,381		27,157,477
Cisco Systems, Inc.		48,314		2,644,225
Citigroup, Inc.		313,177		21,931,785
Clear Channel Outdoor Holdings, Inc.(b)		442,194		2,087,156
Cloudera, Inc.(b)(d)		797,720		4,196,007
Colgate-Palmolive Co.		796,382		57,076,698
Comcast Corp., Class A(g)		1,801,723		76,176,848
ConocoPhillips		11,937		728,157
Corning, Inc.		45,709		1,518,910
Costco Wholesale Corp.		3,560		940,766
CSX Corp.		32,626		2,524,274
Cummins, Inc.		3,731		639,270
CVS Health Corp.		354,344		19,308,205
DaVita, Inc.(b)		420,957		23,683,041
Delta Air Lines, Inc.		10,637		603,650
Devon Energy Corp.		36,428		1,038,927
Discover Financial Services		9,810		761,158
Dollar Tree, Inc.(b)		386,178		41,471,655
Dover Corp.		296,826		29,741,965
Dow, Inc.		170,531		8,408,884
Dropbox, Inc., Class A(b)		1,064,597		26,668,155
DuPont de Nemours, Inc.		170,531		12,801,762
DXC Technology Co.		27,024		1,490,374
Eaton Corp. plc		8,201		682,979
eBay, Inc.		28,524		1,126,698
Edwards Lifesciences Corp.(b)		3,592		663,586
Eli Lilly & Co.		1,197		132,616
Emerson Electric Co.		797,100		53,182,512
Equinix, Inc.(d)		54,124		27,294,192
Equity Residential		303,777		23,062,750
Estee Lauder Cos., Inc. (The), Class A		211		38,636
Exelon Corp.		98,997		4,745,916
Expedia Group, Inc.		13,377		1,779,542
Exxon Mobil Corp.		549,875		42,136,921
Facebook, Inc., Class A(b)		144,435		27,875,955
Ferguson plc		314,169		22,365,680

CONSOLIDATED SCHEDULE OF INVESTMENTS 9

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Fidelity National Information Services, Inc.		11,488	$	1,409,348
Fieldwood Energy, Inc.(b)(c)		78,168		2,345,040
Fifth Third Bancorp		28,749		802,097
FleetCor Technologies, Inc.(b)		170,163		47,790,279
Ford Motor Co.		20,869		213,490
Fortune Brands Home & Security, Inc.		38,501		2,199,562
General Electric Co.		49,263		517,261
General Motors Co.		33,416		1,287,518
Gilead Sciences, Inc.		474,650		32,067,354
Global Payments, Inc.		25,331		4,056,253
Goldman Sachs Group, Inc. (The)		8,046		1,646,212
Halliburton Co.		5,047		114,769
Hartford Financial Services Group, Inc. (The)		80,383		4,478,941
HCA Healthcare, Inc.		161,938		21,889,159
Helmerich & Payne, Inc.		11,259		569,931
Hewlett Packard Enterprise Co.		71,661		1,071,332
Home Depot, Inc. (The)		6,050		1,258,218
Honeywell International, Inc.		9,627		1,680,778
HP, Inc.		4,751		98,773
Humana, Inc.		1,510		400,603
Huntsman Corp.		20,605		421,166
IAA, Inc.(b)		302,516		11,731,570
iHeartMedia, Inc., Class A(b)		184,287		2,773,519
iHeartMedia, Inc., Class B(b)		3,761		67,698
Illumina, Inc.(b)		1,685		620,333
Intel Corp.		45,619		2,183,782
International Business Machines Corp.		12,316		1,698,376
Intuit, Inc.		10,811		2,825,239
Intuitive Surgical, Inc.(b)		1,212		635,755
Jawbone Health Hub, Inc. (Acquired 01/24/17, cost $0)(a)(b)(c)		301,223		3
JBS SA		29,722		163,009
Johnson & Johnson		488,418		68,026,859
JPMorgan Chase & Co.		813,946		90,999,163
KAR Auction Services, Inc.		302,516		7,562,900
KeyCorp		2,506		44,481
KLA-Tencor Corp.		7,816		923,851
Kroger Co. (The)		39,067		848,145
Lam Research Corp.		957		179,763
Lear Corp.		3,198		445,385
Liberty Broadband Corp., Class A(b)		49,384		5,078,650
Liberty Broadband Corp., Class C(b)		220,940		23,026,367
Liberty Media Corp.-Liberty SiriusXM, Class A(b)		177,085		6,695,584
Liberty Media Corp.-Liberty SiriusXM, Class C(b)		296,732		11,269,881
Lockheed Martin Corp.		3,935		1,430,530
Lookout, Inc. (Acquired 03/04/15, cost $936,169)(a)(b)(c)		73,943		47,324
Lowe’s Cos., Inc.		247,422		24,967,354
M&T Bank Corp.		1,052		178,914
Marathon Petroleum Corp.		194,355		10,860,557
Marsh & McLennan Cos., Inc.		518,973		51,767,557
Masco Corp.		103,198		4,049,490
Mastercard, Inc., Class A		19,415		5,135,850
McDonald’s Corp.		5,387		1,118,664
McKesson Corp.		8,692		1,168,118
Medtronic plc		18,365		1,788,567
Merck & Co., Inc.		342,147		28,689,026
MetLife, Inc.		29,575		1,468,990
Micron Technology, Inc.(b)		11,487		443,283
Microsoft Corp.(d)		933,307		125,025,806
Mondelez International, Inc., Class A		72,680		3,917,452

Security	Shares		Value
United States (continued)
Monster Beverage Corp.(b)		9,908	$	632,428
Morgan Stanley		475,101		20,814,175
Mylan NV(b)		14,620		278,365
Newmont Mining Corp.		705,180		27,128,275
NextEra Energy, Inc.		248,520		50,911,807
NIKE, Inc., Class B		19,101		1,603,529
Norfolk Southern Corp.		6,144		1,224,684
Northrop Grumman Corp.		2,578		832,978
NRG Energy, Inc.		6,972		244,857
Occidental Petroleum Corp		6,358		319,680
Omnicom Group, Inc.(d)		28,693		2,351,391
ONEOK, Inc.		754,696		51,930,632
Oracle Corp.		315,450		17,971,186
Packaging Corp. of America		4,935		470,404
PayPal Holdings, Inc.(b)		8,797		1,006,905
PepsiCo, Inc.		44,982		5,898,490
Pfizer, Inc.		1,271,825		55,095,459
Philip Morris International, Inc.		174,264		13,684,952
Phillips 66		11,954		1,118,177
Procter & Gamble Co. (The)		29,287		3,211,320
Progressive Corp. (The)		12,652		1,011,274
Prudential Financial, Inc.		6,268		633,068
QUALCOMM, Inc.		325,470		24,758,503
Raytheon Co.		365,436		63,542,012
Regeneron Pharmaceuticals, Inc.(b)		59		18,467
Reinsurance Group of America, Inc.		5,834		910,279
Rockwell Automation, Inc.		3,057		500,828
Ross Stores, Inc.		8,481		840,637
Royal Caribbean Cruises Ltd.		8,615		1,044,224
Schlumberger Ltd.		84,139		3,343,684
Sempra Energy		143,277		19,691,991
ServiceNow, Inc.(b)(d)		1,169		320,972
Stanley Black & Decker, Inc.		1,616		233,690
Starbucks Corp.		20,785		1,742,407
Stryker Corp.		20,847		4,285,726
SunTrust Banks, Inc.		496,184		31,185,164
Synchrony Financial		1,148		39,801
Sysco Corp.		7,915		559,749
Target Corp.		89,360		7,739,470
Texas Instruments, Inc.		12,378		1,420,499
Thermo Fisher Scientific, Inc.		10,952		3,216,383
TJX Cos., Inc. (The)		260,190		13,758,847
Travelers Cos., Inc. (The)		28,213		4,218,408
Twitter, Inc.(b)		1,571		54,828
Union Pacific Corp.		9,414		1,592,002
United Continental Holdings, Inc.(b)		11,652		1,020,133
United Parcel Service, Inc., Class B		7,353		759,344
United Technologies Corp.		342,746		44,625,529
UnitedHealth Group, Inc.		206,127		50,297,049
US Bancorp		104,980		5,500,952
Valero Energy Corp.		9,528		815,692
VeriSign, Inc.(b)		5,862		1,226,096
Verizon Communications, Inc.		959,986		54,844,000
Vertex Pharmaceuticals, Inc.(b)		1,335		244,812
Visa, Inc., Class A		31,857		5,528,782
Vistra Energy Corp.		164,340		3,720,658
VMware, Inc., Class A		10,847		1,813,727
Walmart, Inc.		28,646		3,165,097
Walt Disney Co. (The)		7,912		1,104,832
Waste Management, Inc.		5,178		597,386
Wells Fargo & Co.		914,875		43,291,885
Welltower, Inc.		89,568		7,302,479
Western Digital Corp.(d)		8,988		427,379
Weyerhaeuser Co.		192,543		5,071,583
Williams Cos., Inc. (The)(d)		2,448,789		68,664,044

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security		Shares		Value
United States (continued)
Wyndham Destinations, Inc.			13,390	$	587,821
Xcel Energy, Inc.			7,824		465,450
Xilinx, Inc.			7,436		876,853
Yum! Brands, Inc.			13,869		1,534,882
Zoetis, Inc.			7,207		817,922
					2,584,108,589
Total Common Stocks — 57.0% (Cost: $4,241,934,238)					4,665,647,623
		Par (000)
Corporate Bonds — 6.0%
Australia — 0.4%
Quintis Australia Pty. Ltd.(c)(e)(h)*:
7.50%, (7.50% Cash or 8.00% PIK), 10/01/26	USD		16,417		16,085,304
12.00%, (0.00% Cash or 0.00% PIK), 10/01/28			18,591		18,591,047
					34,676,351
Chile — 0.0%
Inversiones Alsacia SA, 8.00%, 12/31/18(b)(e)(i)			7,010		189,147
China — 0.1%
Baidu, Inc., 4.38%, 05/14/24			4,332		4,583,052
China Milk Products Group Ltd., 0.00%, 01/05/12(b)(i)(j)(k)			4,800		48,000
					4,631,052
France — 0.1%
Danone SA, 2.59%, 11/02/23(e)			5,953		5,982,201
India — 0.0%
REI Agro Ltd.(b)(i)(j):
5.50%, 11/13/14(e)			5,549		56
5.50%, 11/13/14(c)			2,291		—
					56
Japan — 0.3%
Mitsubishi UFJ Financial Group, Inc., 3.78%, 03/02/25			2,439		2,583,728
Sumitomo Mitsui Financial Group, Inc., 3.94%, 10/16/23			15,561		16,499,713
Takeda Pharmaceutical Co. Ltd., 3.80%, 11/26/20(e)			4,145		4,220,201
					23,303,642
Luxembourg — 0.0%
Intelsat Jackson Holdings SA, 8.00%, 02/15/24(e)			1,745		1,819,163
Netherlands — 0.1%
ING Groep NV, 4.10%, 10/02/23			8,034		8,486,976
Singapore — 0.1%
CapitaLand Ltd., 1.95%, 10/17/23(e)(j)	SGD		6,750		4,939,024
Switzerland — 0.0%
UBS Group Funding Switzerland AG, 4.13%, 09/24/25(e)	USD		3,647		3,892,324
Turkey — 0.0%
Bio City Development Co. BV, 8.00%, 07/06/20(b)(c)(e)(i)(j)			21,400		2,247,000

Security		Par (000)		Value
United Kingdom — 0.1%
HSBC Holdings plc(l):
(LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23	USD		5,580	$	5,683,696
(LIBOR USD 3 Month + 1.21%), 3.80%, 03/11/25			3,187		3,320,568
					9,004,264
United States — 4.8%
Allergan Funding SCS,
3.45%, 03/15/22			5,308		5,419,547
Allergan Sales LLC, 5.00%, 12/15/21(e)			2,911		3,044,109
Altria Group, Inc.:
3.49%, 02/14/22			1,648		1,694,816
3.80%, 02/14/24			3,181		3,315,935
4.40%, 02/14/26			12,550		13,429,130
American Express Co.,
3.70%, 08/03/23			11,966		12,560,839
Aon Corp., 4.50%, 12/15/28			1,387		1,526,555
Apple, Inc.:
3.35%, 02/09/27			9,763		10,251,480
3.20%, 05/11/27			9,382		9,781,996
AvalonBay Communities, Inc., 3.50%, 11/15/24			1,166		1,224,321
Bank of America Corp.:
3.30%, 01/11/23			5,590		5,762,041
4.13%, 01/22/24			12,386		13,247,207
4.00%, 01/22/25			2,988		3,142,799
Becton Dickinson and Co.:
3.13%, 11/08/21			5,420		5,499,429
2.89%, 06/06/22			7,694		7,798,527
3.36%, 06/06/24			2,640		2,719,021
BP Capital Markets America, Inc., 3.79%, 02/06/24			4,637		4,909,772
Broadcom, Inc., 3.13%, 04/15/21(e)			9,457		9,518,235
Capital One Financial Corp.:
3.20%, 01/30/23			4,022		4,123,523
3.30%, 10/30/24			2,843		2,916,217
Charter Communications Operating LLC, 4.46%, 07/23/22			5,446		5,722,513
Cigna Corp.(e):
3.40%, 09/17/21			7,582		7,729,829
3.75%, 07/15/23			6,456		6,721,556
Citigroup, Inc., (LIBOR USD 3 Month +
0.90%), 3.35%, 04/24/25(l)			9,620		9,937,262
Comcast Corp., 3.70%, 04/15/24			11,072		11,751,247
CVS Health Corp., 3.70%, 03/09/23			17,179		17,765,601
Energy Transfer Operating LP, 4.05%, 03/15/25			1,847		1,922,628
Enterprise Products Operating LLC:
3.35%, 03/15/23			7,670		7,887,661
3.90%, 02/15/24			1,945		2,060,321
3.75%, 02/15/25			1,828		1,933,858
Fiserv, Inc., 2.75%, 07/01/24			19,728		19,903,813
Gilead Sciences, Inc.:
3.25%, 09/01/22			5,594		5,749,448
3.70%, 04/01/24			6,188		6,565,280
Goldman Sachs Group, Inc. (The):
(LIBOR USD 3 Month + 1.05%), 2.91%, 06/05/23(l)			5,592		5,652,142
3.63%, 02/20/24			6,518		6,800,483
Home Depot, Inc. (The), 2.95%, 06/15/29			4,266		4,376,153
Hughes Satellite Systems Corp., 7.63%, 06/15/21			1,095		1,171,650

CONSOLIDATED SCHEDULE OF INVESTMENTS 11

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
United States (continued)
iHeartCommunications, Inc.:
6.38%, 05/01/26	USD		4,805	$	5,099,220
8.38%, 05/01/27			1,927		2,019,091
International Business Machines Corp., 3.00%, 05/15/24			12,017		12,341,137
JPMorgan Chase & Co., (LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24(l)			7,457		7,925,235
Kinder Morgan Energy Partners LP:
4.15%, 02/01/24			1,501		1,583,123
4.30%, 05/01/24			1,446		1,537,033
Marsh & McLennan Cos., Inc.:
3.88%, 03/15/24			3,203		3,399,006
4.38%, 03/15/29			1,383		1,525,860
McDonald’s Corp., 3.35%, 04/01/23			3,465		3,596,384
Morgan Stanley, Series F, 3.88%, 04/29/24			7,597		8,051,718
NextEra Energy Capital Holdings, Inc., 2.90%, 04/01/22			5,179		5,268,812
Philip Morris International, Inc., 3.60%, 11/15/23			2,404		2,508,006
QUALCOMM, Inc.:
2.60%, 01/30/23			2,816		2,825,692
2.90%, 05/20/24			7,283		7,397,949
Starbucks Corp., 3.10%, 03/01/23			5,604		5,763,942
SunTrust Banks, Inc., 4.00%, 05/01/25			2,367		2,534,533
TransDigm, Inc., 6.25%, 03/15/26(e)			14,380		15,134,950
UnitedHealth Group, Inc., 3.70%, 12/15/25			1,362		1,450,528
Verizon Communications, Inc., 3.50%, 11/01/24			6,219		6,535,100
Vistra Operations Co. LLC, 5.63%, 02/15/27(e)			4,980		5,272,575
Walgreen Co., 3.10%, 09/15/22			5,706		5,804,447
Wells Fargo & Co.:
3.07%, 01/24/23			1,117		1,134,391
3.75%, 01/24/24			3,582		3,765,974
(LIBOR USD 3 Month + 1.17%), 3.20%, 06/17/27(l)			18,967		19,329,186
Wells Fargo Bank NA, 3.55%, 08/14/23			9,975		10,411,331
Williams Cos., Inc. (The):
3.70%, 01/15/23			4,606		4,760,393
4.55%, 06/24/24			2,784		2,999,878
					395,512,438
Total Corporate Bonds — 6.0% (Cost: $518,986,213)					494,683,638
Floating Rate Loan Interests — 0.2%(m)
United States — 0.2%
Fieldwood Energy LLC, 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.65%, 04/11/23			2,669		2,215,443
Fieldwood Energy LLC, Term Loan, (LIBOR USD 1 Month + 5.25%), 7.65%, 04/11/22			1,977		1,827,043
Hilton Worldwide Finance LLC, Term Loan B2, (LIBOR USD 6 Month + 1.75%), 4.15%, 06/22/26			7,621		7,620,698

Security		Par (000)		Value
United States (continued)
iHeartCommunications, Inc., 1st Lien Term Loan, 05/01/26(n)	USD		4,653	$	4,656,957
					16,320,141
Total Floating Rate Loan Interests — 0.2% (Cost: $15,118,636)					16,320,141
Foreign Government Obligations — 4.4%
Argentina — 0.4%
Republic of Argentina:
3.38%, 01/15/23	EUR		4,470		3,977,320
6.88%, 01/26/27	USD		13,404		10,672,935
5.88%, 01/11/28			13,228		10,007,809
5.25%, 01/15/28	EUR		1,158		958,355
7.82%, 12/31/33			4,980		4,728,591
					30,345,010
Australia — 0.2%
Commonwealth of Australia, 3.00%, 03/21/47	AUD		23,841		20,562,752
Canada — 0.2%
Canadian Government Bond, 0.75%, 03/01/21	CAD		18,725		14,118,068
France — 1.3%
Republic of France:
0.50%, 05/25/29	EUR		63,011		75,238,073
1.25%, 05/25/34			23,324		29,939,761
					105,177,834
Germany — 1.7%
Federal Republic of Germany, 0.25%, 02/15/29			118,125		141,916,122
Italy — 0.6%
Republic of Italy, 3.00%, 08/01/29			42,000		51,754,889
Total Foreign Government Obligations — 4.4% (Cost: $360,714,653)					363,874,675
Preferred Securities — 2.4%
Capital Trusts — 0.9%
Netherlands — 0.0%
ING Groep NV, 6.00%(m)(o)	USD		2,781		2,807,976
United Kingdom — 0.4%(m)(o)
HSBC Holdings plc, 6.37%			10,829		11,208,015
Lloyds Bank plc, 13.00%	GBP		5,845		12,801,430
					24,009,445
United States — 0.5%
American Express Co., Series C, 4.90%(m)(o)	USD		3,828		3,837,647
Citigroup, Inc.(m)(o):
Series O, 5.87%			12,567		12,676,961
Series Q, 5.95%			5,092		5,236,206
Goldman Sachs Group, Inc. (The), Series M, 5.38%(m)(o)			5,936		5,943,420
Morgan Stanley, Series H, 5.45%(m)(o)			4,190		4,179,525
NBCUniversal Enterprise, Inc., 5.25%(e)(o)			4,292		4,395,008
Prudential Financial, Inc.(m):
5.63%, 06/15/43			2,120		2,241,815
5.87%, 09/15/42			3,192		3,378,700

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
United States (continued)
USB Capital IX, 3.62%(m)(o)	USD		1,716	$	1,402,830
					43,292,112
Total Capital Trusts — 0.9% (Cost: $68,697,395)					70,109,533
		Shares
Preferred Stocks — 1.3%
Brazil — 0.0%
Braskem SA (Preference)			21,840		200,032
Itau Unibanco Holding SA (Preference)			537,020		5,063,997
					5,264,029
Germany — 0.3%
Henkel AG & Co. KGaA (Preference)			246,071		24,070,513
South Korea — 0.0%
Samsung Electronics Co. Ltd. (Preference)(b)			5,460		181,077
United Kingdom — 0.0%
Rolls-Royce Holdings plc (Preference)(b)(c)			3,838,198		4,874
United States — 1.0%
Grand Rounds, Inc., Series C (Acquired 03/31/15, cost $5,939,231)(a)(b)(c)			1,929,993		4,940,782
Grand Rounds, Inc., Series D (Acquired 05/01/18, cost $3,180,966)(a)(b)(c)			1,184,166		2,995,940
Lookout, Inc., Series F (Acquired09/19/14-10/22/14, cost $10,936,522)(a)(b)(c)			863,811		6,133,058
Palantir Technologies, Inc., Series I (Acquired 02/11/14, cost $11,447,321)(a)(b)(c)			1,684,871		10,968,510
Uber Technologies, Inc. (Acquired 06/06/14, cost $17,574,548)(a)(b)			1,132,888		50,631,031
Wells Fargo & Co., Series L, 7.50%(j)(o)			2,677		3,651,963
					79,321,284
Total Preferred Stocks — 1.3% (Cost: $78,074,161)					108,841,777
Trust Preferreds — 0.2%
United States — 0.2%(m)
Citigroup Capital XIII, 8.95%, 10/30/40			270,326		7,458,295
GMAC Capital Trust I, Series 2, 8.30%, 02/15/40			286,033		7,474,042
					14,932,337
Total Trust Preferreds — 0.2% (Cost: $14,373,502)					14,932,337
Total Preferred Securities — 2.4% (Cost: $161,145,058)					193,883,647
		Par (000)
U.S. Treasury Obligations — 15.4%
U.S. Treasury Inflation Linked Notes:
0.63%, 04/15/23			36,714		37,146,183

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
0.50%, 04/15/24	USD		151,914	$	153,810,669
U.S. Treasury Notes:
1.50%, 11/30/19(p)			20,085		20,032,720
2.25%, 04/30/24			43,923		44,919,948
2.00%, 05/31/24			556,767		563,313,664
3.00%, 10/31/25(q)			124,638		133,230,992
2.88%, 11/30/25			39,338		41,780,040
2.63%, 01/31/26(q)			245,601		257,276,641
Total U.S. Treasury Obligations — 15.4% (Cost: $1,224,335,198)				1,251,510,857
Total Long-Term Investments — 85.4% (Cost: $6,522,233,996)				6,985,920,581
Short-Term Securities — 16.0%
Foreign Government Obligations — 3.6%(r)
Japan — 3.6%
Japan Treasury Discount Bills:
(0.19)%, 07/01/19	JPY		4,521,650		41,938,969
(0.17)%, 08/05/19			8,299,500		76,990,273
(0.17)%, 08/13/19			13,824,350		128,245,312
(0.15)%, 08/26/19			5,497,000		50,996,704
					298,171,258
Total Foreign Government Obligations — 3.6% (Cost: $292,381,632)					298,171,258
		Shares
Money Market Funds — 1.9%(s)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,   2.26%			20,212,625		20,212,625
SL Liquidity Series, LLC, Money Market Series,   2.55%(t)			133,599,564		133,639,644
Total Money Market Funds — 1.9% (Cost: $153,852,269)					153,852,269
		Par (000)
Time Deposits — 0.1%
Australia — 0.0%
Brown Brothers Harriman & Co., 0.52%, 07/01/19	AUD		30		20,914
Canada — 0.0%
Royal Bank of Canada, 0.81%, 07/02/19	CAD		430		328,231
Europe — 0.1%
Citibank NA, (0.58)%, 07/01/19	EUR		1,280		1,455,526
Hong Kong — 0.0%
Hong Kong & Shanghai Bank, 2.10%, 07/02/19	HKD		199		25,536
Japan — 0.0%
Sumitomo Mitsui Financial Group, Inc., (0.27)%, 07/01/19	JPY		183,970		1,706,345

CONSOLIDATED SCHEDULE OF INVESTMENTS 13

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Norway — 0.0%
Brown Brothers Harriman & Co., 0.52%, 07/01/19	NOK		5	$	595
South Africa — 0.0%
Brown Brothers Harriman & Co., 5.69%, 07/01/19	ZAR		187		13,280
United Kingdom — 0.0%
Brown Brothers Harriman & Co., 0.36%, 07/01/19	GBP		13		16,566
United States — 0.0%
Citibank NA, 2.39%, 07/01/19(p)	USD		912		911,664
Sumitomo Mitsui Financial Group, Inc., 2.41%, 07/01/19			32		31,861
					943,525
Total Time Deposits — 0.1% (Cost: $4,510,518)					4,510,518
U.S. Treasury Obligations — 10.4%
U.S. Treasury Bills(r):
2.04%, 08/06/19			57,000		56,881,013
2.05%, 08/08/19			25,000		24,945,606
2.05%, 08/15/19			19,000		18,950,303
2.08%, 08/13/19			25,000		24,938,516
2.26%, 08/22/19			40,000		39,878,724
2.32%, 08/29/19			25,000		24,913,958
2.36%, 07/25/19			25,000		24,967,500

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
U.S. Treasury Notes, 2.38%, 05/15/29	USD		615,202	$	635,749,201
Total U.S. Treasury Obligations — 10.4% (Cost: $842,149,141)					851,224,821
Total Short-Term Securities — 16.0% (Cost: $1,292,893,560)					1,307,758,866
Total Options Purchased — 0.5% (Cost: $51,977,821)					42,422,917
Total Investments Before Options Written and Investments Sold Short — 101.9% (Cost: $7,867,105,377)					8,336,102,364
Total Options Written — (0.4)% (Premiums Received — $26,912,876)					(32,510,786	)
Investments Sold Short — (0.1)%
		Shares
Common Stocks — (0.1)%
Japan — (0.1)%
SUMCO Corp.			416,100		(4,959,932	)
Total Common Stocks — (0.1)% (Proceeds: $6,302,150)					(4,959,932	)
Total Investments Sold Short — (0.1)% (Proceeds: $6,302,150)					(4,959,932	)
Total Investments Net of Options Written and Investments Sold Short — 101.4% (Cost: $7,833,890,351)					8,298,631,646
Liabilities in Excess of Other Assets — (1.4)%					(115,066,344	)
Net Assets — 100.0%				$	8,183,565,302

^(a)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $83,374,764, representing 1.02% of its net assets as of period end, and an original cost of $55,775,984.

^(b)  Non-income producing security.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)  Security, or a portion of the security, is on loan.

^(e)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(f)  A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

^(g)  All or a portion of the security has been pledged and/or segregated as collateral in connection with outstanding exchange-traded options written.

^(h)  Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

⁽ⁱ⁾  Issuer filed for bankruptcy and/or is in default.

^(j)  Convertible security.

^(k)  Zero-coupon bond.

^(l)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(m)  Variable rate security. Rate shown is the rate in effect as of period end.

⁽ⁿ⁾  Represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.

^(o)  Perpetual security with no stated maturity date.

^(p)  All or a portion of the security is held by a wholly-owned subsidiary. See Note 1 of the Notes to Consolidated Financial Statements for details on the wholly-owned subsidiary.

^(q)  All or a portion of the security has been pledged in connection with outstanding centrally cleared swaps.

^(r)  Rates are discount rates or a range of discount rates as of period end.

^(s)  Annualized7-day yield as of period end.

^(t)  Security was purchased with the cash collateral from loaned securities.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Par/Shares Held at 12/31/18	Shares Purchased	Shares Sold		Par/Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class	22,471,516	—	(2,258,891	)(b)	20,212,625	$	20,212,625	$	344,031		$	(1	)	$	—
SL Liquidity Series, LLC, Money Market Series	209,527,510	—	(75,927,946	)(b)	133,599,564		133,639,644		287,496	(c)		37,094			7,580
iShares Gold Trust(d)	5,628,395	2,477,962	(8,106,357	)	—		—		—			(5,820,094	)		5,392,870
Quintis Australia Pty. Ltd. 7.50% 10/01/26	17,907,552	632,733	(2,122,986	)	16,417,299		16,085,304		636,690			(50,487	)		(1,500	)
Quintis Australia Pty. Ltd. 12.00% 10/01/28	21,236,520	—	(2,645,473	)	18,591,047		18,591,047		1			(271,457	)		1,022,990
Quintis HoldCo Pty. Ltd.	10,892,000	—	(1,064,776	)	9,827,224		7,658,116		—			(31,099	)		2,390,768
						$	196,186,736	$	1,268,218		$	(6,136,044	)	$	8,812,708

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents net shares sold.

^(c)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

^(d)  As of period end, the entity is no longer held by the Fund.

CONSOLIDATED SCHEDULE OF INVESTMENTS 15

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging MarketsE-Mini Index		1,029		09/20/19	$	54,197	$	558,466
Short Contracts
Yen Denominated Nikkei 225 Index		1,552		09/12/19		153,343		(340,267	)
SPI 200 Index		17		09/19/19		1,957		(7,262	)
EURO STOXX 50 Index		59		09/20/19		2,325		(16,791	)
FTSE 100 Index		18		09/20/19		1,684		(7,286	)
NASDAQ 100E-Mini Index		82		09/20/19		12,618		(34,448	)
S&P 500E-Mini Index		322		09/20/19		47,402		(292,888	)
								(698,942	)
							$	(140,476	)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
JPY	488,100,000	USD	4,401,977	BNP Paribas SA		07/01/19	$	125,223
JPY	2,633,850,000	USD	23,784,819	JPMorgan Chase Bank NA		07/01/19		644,527
USD	3,876,972	GBP	2,960,309	BNP Paribas SA		07/19/19		114,215
EUR	19,446,000	USD	21,964,063	JPMorgan Chase Bank NA		07/25/19		191,478
JPY	9,889,472,000	USD	89,068,144	Goldman Sachs International		07/25/19		2,827,431
USD	14,861,360	AUD	21,097,000	Bank of America NA		07/25/19		37,893
ZAR	176,168,811	USD	12,277,000	Bank of America NA		07/25/19		193,981
NOK	130,114,000	USD	15,089,852	UBS AG		08/01/19		178,975
JPY	6,712,462,000	USD	61,735,540	BNP Paribas SA		08/16/19		740,969
EUR	35,442,000	USD	40,104,679	Bank of America NA		09/12/19		432,283
EUR	35,757,480	USD	40,360,290	Citibank NA		09/13/19		540,483
ZAR	339,752,000	USD	22,639,568	Citibank NA		09/19/19		1,239,703
EUR	35,599,000	USD	40,596,231	Goldman Sachs International		09/20/19		144,033
								7,411,194
JPY	4,521,650,000	USD	42,041,133	Morgan Stanley & Co. International plc		07/01/19		(102,164	)
USD	69,129,058	JPY	7,643,600,000	Morgan Stanley & Co. International plc		07/01/19		(1,766,457	)
GBP	30,370,000	USD	39,995,826	JPMorgan Chase Bank NA		07/19/19		(1,393,471	)
AUD	2,364,093	USD	1,669,522	BNP Paribas SA		07/25/19		(8,430	)
USD	2,180,732	EUR	1,931,225	BNP Paribas SA		07/25/19		(19,583	)
USD	8,806,351	JPY	974,594,000	BNP Paribas SA		07/25/19		(249,833	)
GBP	30,624,000	USD	39,739,849	JPMorgan Chase Bank NA		08/16/19		(762,848	)
GBP	16,101,000	USD	20,577,561	Bank of America NA		08/23/19		(78,579	)
USD	20,217,861	INR	1,426,643,000	Citibank NA		08/30/19		(304,751	)
USD	82,552,822	EUR	72,251,196	JPMorgan Chase Bank NA		09/13/19		(90,860	)
USD	60,067,002	EUR	52,964,000	Bank of America NA		09/19/19		(541,729	)
								(5,318,705	)
Net Unrealized Appreciation							$	2,092,489

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

Interest Rate Caps Purchased

Description	Exercise Rate			Counterparty		Expiration Date		Notional Amount (000)		Value		Premiums Paid(Received)		Unrealized Appreciation (Depreciation)
2Y-10Y CMS Index Cap		0.50	%		Goldman Sachs International		02/27/20	USD	681,547	$	1,093,964	$	886,011	$	207,953
2Y-10Y CMS Index Cap		0.50	%		Goldman Sachs International		08/27/20	USD	687,929		1,954,951		1,754,220		200,731
										$	3,048,915	$	2,640,231	$	408,684

OTC Options Purchased

Description	Counterparty	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
S&P 500 Index	Goldman Sachs International		73,180		07/05/19	USD	2,970.00	USD	215,278	$	1,075,746
AUD Currency	Morgan Stanley & Co. International plc		—		07/11/19	USD	0.71	AUD	116,938		212,461	��
USD Currency	BNP Paribas SA		—		07/11/19	JPY	108.50	USD	81,857		197,085
EUR Currency	Bank of America NA		—		07/12/19	USD	1.14	EUR	163,588		977,328
NASDAQ 100 Stock Index	Morgan Stanley & Co. International plc		9,324		07/12/19	USD	7,800.00	USD	71,525		614,918
EURO STOXX 50 Index	BNP Paribas SA		6,857		07/19/19	EUR	3,525.00	EUR	23,819		123,974
EURO STOXX 50 Index	Credit Suisse International		5,977		07/19/19	EUR	3,500.00	EUR	20,762		175,348
EURO STOXX 50 Index	UBS AG		4,169		07/19/19	EUR	3,500.00	EUR	14,482		122,307
NASDAQ 100 Stock Index	Barclays Bank plc		2,436		07/19/19	USD	7,950.00	USD	18,687		77,099
NASDAQ 100 Stock Index	Citibank NA		3,458		07/19/19	USD	7,825.00	USD	26,527		251,742
S&P 500 Index	Bank of America NA		11,019		07/19/19	USD	2,985.00	USD	32,415		208,810
S&P 500 Index	Bank of America NA		73,804		07/19/19	USD	2,995.00	USD	217,114		1,118,131
S&P 500 Index	Goldman Sachs International		10,550		07/19/19	USD	2,975.00	USD	31,036		246,342
SPDR Gold Shares(a)	Morgan Stanley & Co. International plc		136,215		07/19/19	USD	128.00	USD	18,123		740,014
EURO STOXX 50 Index	UBS AG		7,450		07/26/19	EUR	3,475.00	EUR	25,879		399,912
EURO STOXX 50 Index	Credit Suisse International		7,123		08/16/19	EUR	3,450.00	EUR	24,743		601,798
SPDR Gold Shares(a)	JPMorgan Chase Bank NA		277,579		08/16/19	USD	136.00	USD	36,932		542,667
S&P 500 Index	Nomura International plc		12,450		08/30/19	USD	2,975.00	USD	36,625		649,890
Apple, Inc.	Morgan Stanley & Co. International plc		45,307		09/20/19	USD	185.00	USD	8,967		828,569
Facebook, Inc.	UBS AG		67,769		09/20/19	USD	185.00	USD	13,079		1,119,883
S&P 500 Index	Societe Generale SA		16,599		09/20/19	USD	2,975.00	USD	48,830		1,046,567
SPDR Gold Shares(a)	Societe Generale SA		357,066		09/20/19	USD	126.00	USD	47,508		2,981,501
TOTAL SA	UBS AG		559,625		09/20/19	USD	70.00	USD	31,221		6,385
GBP Currency	UBS AG		—		10/08/19	USD	1.34	GBP	138,101		396,195
EURO STOXX 50 Index	Credit Suisse International		5,719		10/18/19	EUR	3,600.00	EUR	19,866		232,160
FedEx Corp.	Citibank NA		54,193		10/18/19	USD	170.00	USD	8,898		417,113
Lowe’s Cos., Inc.	Nomura International plc		91,000		10/18/19	USD	97.50	USD	9,183		707,525
QUALCOMM, Inc.	Morgan Stanley & Co. International plc		141,551		10/18/19	USD	70.00	USD	10,768		1,231,150
Alibaba Group Holding Ltd.	Citibank NA		58,795		11/22/19	USD	167.00	USD	9,963		932,811
TOPIX Banks Index	Bank of America NA		6,250,677		12/13/19	JPY	191.28	JPY	867,781		2,817
TOPIX Banks Index	Morgan Stanley & Co. International plc		11,822,945		12/13/19	JPY	191.28	JPY	1,641,379		5,329
Apple, Inc.	Morgan Stanley & Co. International plc		107,790		12/20/19	USD	180.00	USD	21,334		2,707,551
Emerson Electric Co.	Bank of America NA		270,499		12/20/19	USD	65.00	USD	18,048		1,302,377
Facebook, Inc.	UBS AG		136,008		12/20/19	USD	195.00	USD	26,250		2,261,133
Marathon Petroleum Corp.	Morgan Stanley & Co. International plc		240,300		12/20/19	USD	55.00	USD	13,428		1,279,907
Agilent Technologies, Inc.	Nomura International plc		115,522		01/17/20	USD	71.00	USD	8,626		894,167
Alibaba Group Holding Ltd.	Bank of America NA		50,613		01/17/20	USD	162.50	USD	8,576		1,047,441
Alphabet, Inc.	JPMorgan Chase Bank NA		15,044		01/17/20	USD	1,225.00	USD	16,261		393,631
Anadarko Petroleum Corp.	Credit Suisse International		158,137		01/17/20	USD	67.50	USD	11,158		857,893
BP plc	Nomura International plc		738,649		01/17/20	USD	45.00	USD	30,802		613,079
CVS Health Corp.	JPMorgan Chase Bank NA		111,219		01/17/20	USD	78.50	USD	6,060		7,927
FedEx Corp.	Credit Suisse International		117,960		01/17/20	USD	162.00	USD	19,368		1,831,721
Halliburton Co.	Citibank NA		306,935		01/17/20	USD	50.00	USD	6,980		6,139
Johnson & Johnson	Bank of America NA		112,833		01/17/20	USD	155.00	USD	15,715		154,017
JPMorgan Chase & Co.	Citibank NA		111,296		01/17/20	USD	114.50	USD	12,443		542,207
Kroger Co. (The)	Nomura International plc		269,992		01/17/20	USD	25.00	USD	5,862		206,422
Lowe’s Cos., Inc.	Nomura International plc		94,475		01/17/20	USD	98.00	USD	9,533		892,787
Marathon Petroleum Corp.	Citibank NA		339,981		01/17/20	USD	64.00	USD	18,998		843,245
QUALCOMM, Inc.	Citibank NA		148,476		01/17/20	USD	71.00	USD	11,295		1,428,133
Schlumberger Ltd.	Credit Suisse International		205,862		01/17/20	USD	45.00	USD	8,181		318,057
Schlumberger Ltd.	UBS AG		254,357		01/17/20	USD	70.00	USD	10,108		6,359

CONSOLIDATED SCHEDULE OF INVESTMENTS 17

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

OTC Options Purchased (continued)

Description	Counterparty	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Taiwan Semiconductor
Manufacturing Co. Ltd.	Credit Suisse International		188,982		01/17/20	USD	40.00	USD	7,402	$	533,874
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		325,604		03/13/20	JPY	4,756.33	JPY	1,239,249		67,342
TOPIX Banks Index	BNP Paribas SA		8,438,013		03/13/20	JPY	194.04	JPY	1,171,449		14,075
EURO STOXX 50 Index	Credit Suisse International		2,275		03/20/20	EUR	3,600.00	EUR	7,903		215,489
TOPIX Banks Index	Morgan Stanley & Co. International plc		7,508,605		04/10/20	JPY	192.04	JPY	1,042,420		17,924
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		262,993		09/11/20	JPY	4,816.24	JPY	1,000,951		24,319
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		262,987		12/11/20	JPY	4,894.87	JPY	1,000,929		107,595
EURO STOXX Bank Index	Barclays Bank plc		108,762		03/19/21	EUR	110.00	EUR	9,586		235,125
EURO STOXX Bank Index	UBS AG		138,261		06/18/21	EUR	110.00	EUR	12,186		280,395
										$	37,333,908

^(a) All or a portion of the security is held by a wholly-owned subsidiary. See Note 1 of the Notes to Consolidated Financial Statements for details on the wholly-owned subsidiary.

OTC Interest Rate Swaptions Purchased

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

5-Year Interest Rate Swap

3 month LIBOR

Quarterly

2.15

%

Semi-Annual

Nomura International plc

09/20/19

2.15

%

USD

415,005

$

2,040,094

OTC Options Written

Description	Counterparty	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
Apple, Inc.	Morgan Stanley & Co. International plc		45,307		09/20/19	USD	215.00	USD	8,967	$	(168,768	)
USD Currency	Bank of America NA		—		09/25/19	ZAR	15.25	USD	24,217		(246,262	)
FedEx Corp.	Citibank NA		54,193		10/18/19	USD	195.00	USD	8,898		(81,018	)
Lowe’s Cos., Inc.	Nomura International plc		91,000		10/18/19	USD	115.00	USD	9,183		(112,385	)
QUALCOMM, Inc.	Morgan Stanley & Co. International plc		141,551		10/18/19	USD	85.00	USD	10,768		(290,933	)
Alibaba Group Holding Ltd.	Citibank NA		58,795		11/22/19	USD	195.00	USD	9,963		(308,064	)
TOPIX Banks Index	Bank of America NA		6,250,677		12/13/19	JPY	221.29	JPY	867,781		(267	)
TOPIX Banks Index	Morgan Stanley & Co. International plc		11,822,945		12/13/19	JPY	221.29	JPY	1,641,379		(505	)
Apple, Inc.	Morgan Stanley & Co. International plc		107,790		12/20/19	USD	200.00	USD	21,334		(1,421,426	)
Emerson Electric Co.	Bank of America NA		270,499		12/20/19	USD	75.00	USD	18,048		(267,835	)
Facebook, Inc.	UBS AG		136,008		12/20/19	USD	225.00	USD	26,250		(809,248	)
Marathon Petroleum Corp.	Morgan Stanley & Co. International plc		240,300		12/20/19	USD	65.00	USD	13,428		(446,417	)
Agilent Technologies, Inc.	Nomura International plc		115,522		01/17/20	USD	81.00	USD	8,626		(320,621	)
Alibaba Group Holding Ltd.	Bank of America NA		50,613		01/17/20	USD	202.50	USD	8,576		(292,910	)
Anadarko Petroleum Corp.	Credit Suisse International		158,137		01/17/20	USD	76.00	USD	11,158		(68,032	)
Comcast Corp.	Citibank NA		276,727		01/17/20	USD	37.50	USD	11,700		(1,605,017	)
FedEx Corp.	Credit Suisse International		117,960		01/17/20	USD	190.00	USD	19,368		(580,708	)
JPMorgan Chase & Co.	Citibank NA		111,296		01/17/20	USD	125.50	USD	12,443		(160,095	)
Lowe’s Cos., Inc.	Nomura International plc		94,475		01/17/20	USD	115.00	USD	9,533		(255,082	)
Marathon Petroleum Corp.	Citibank NA		339,981		01/17/20	USD	73.00	USD	18,998		(308,053	)
QUALCOMM, Inc.	Citibank NA		148,476		01/17/20	USD	86.00	USD	11,295		(473,848	)
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		325,604		03/13/20	JPY	5,679.90	JPY	1,239,249		(8,543	)
TOPIX Banks Index	BNP Paribas SA		8,438,013		03/13/20	JPY	237.47	JPY	1,171,449		(1,212	)
TOPIX Banks Index	Morgan Stanley & Co. International plc		7,508,605		04/10/20	JPY	233.87	JPY	1,042,420		(1,924	)
EURO STOXX Bank Index	UBS AG		138,261		06/18/21	EUR	135.00	EUR	12,186		(71,724	)
											(8,300,897	)
Put
S&P 500 Index	Nomura International plc		6,211		08/30/19	USD	2,725.00	USD	18,271		(105,898	)

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

OTC Options Written (continued)

Description	Counterparty	Number of Contracts		Expiration Date		Exercise Price			Notional Amount (000)			Value
S&P 500 Index	Societe Generale SA		8,242		09/20/19		USD	2,645.00		USD	24,246	$	(138,053	)
GBP Currency	UBS AG		—		10/08/19		USD	1.25		GBP	138,101		(1,407,153	)
FedEx Corp.	Citibank NA		27,096		10/18/19		USD	140.00		USD	4,449		(70,867	)
Lowe’s Cos., Inc.	Nomura International plc		67,407		10/18/19		USD	82.50		USD	6,802		(66,555	)
Alibaba Group Holding Ltd.	Citibank NA		38,217		11/22/19		USD	140.00		USD	6,476		(132,402	)
TOPIX Banks Index	Bank of America NA		6,250,677		12/13/19		JPY	156.59		JPY	867,781		(1,275,122	)
TOPIX Banks Index	Morgan Stanley & Co. International plc		11,822,945		12/13/19		JPY	156.59		JPY	1,641,379		(2,411,620	)
Emerson Electric Co.	Bank of America NA		135,249		12/20/19		USD	55.00		USD	9,024		(130,864	)
Marathon Petroleum Corp.	Morgan Stanley & Co. International plc		171,141		12/20/19		USD	46.00		USD	9,563		(327,093	)
Agilent Technologies, Inc.	Nomura International plc		100,572		01/17/20		USD	61.00		USD	7,510		(124,796	)
Alibaba Group Holding Ltd.	Bank of America NA		33,748		01/17/20		USD	135.00		USD	5,719		(124,843	)
Alphabet, Inc.	JPMorgan Chase Bank NA		15,044		01/17/20		USD	860.00		USD	16,261		(191,059	)
BP plc	Nomura International plc		738,649		01/17/20		USD	36.00		USD	30,802		(605,692	)
CVS Health Corp.	JPMorgan Chase Bank NA		111,219		01/17/20		USD	56.00		USD	6,060		(596,233	)
FedEx Corp.	Credit Suisse International		66,643		01/17/20		USD	130.00		USD	10,942		(220,162	)
Johnson & Johnson	Bank of America NA		112,833		01/17/20		USD	109.00		USD	15,715		(101,182	)
Kroger Co. (The)	Nomura International plc		135,008		01/17/20		USD	21.00		USD	2,931		(218,081	)
Lowe’s Cos., Inc.	Nomura International plc		67,484		01/17/20		USD	80.00		USD	6,810		(117,139	)
Marathon Petroleum Corp.	Citibank NA		339,981		01/17/20		USD	49.00		USD	18,998		(941,795	)
QUALCOMM, Inc.	Citibank NA		74,238		01/17/20		USD	57.00		USD	5,647		(97,144	)
Schlumberger Ltd.	Credit Suisse International		205,862		01/17/20		USD	33.00		USD	8,181		(301,516	)
Taiwan Semiconductor
Manufacturing Co. Ltd.	Credit Suisse International		94,491		01/17/20		USD	35.50		USD	3,701		(140,739	)
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		325,604		03/13/20		JPY	3,832.77		JPY	1,239,249		(931,413	)
TOPIX Banks Index	BNP Paribas SA		8,438,013		03/13/20		JPY	155.80		JPY	1,171,449		(1,767,881	)
TOPIX Banks Index	Morgan Stanley & Co. International plc		7,508,605		04/10/20		JPY	157.82		JPY	1,042,420		(1,762,944	)
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		175,329		09/11/20		JPY	3,820.96		JPY	667,302		(608,128	)
Sumitomo Mitsui Financial Group, Inc.	Morgan Stanley & Co. International plc		175,325		12/11/20		JPY	3,786.60		JPY	667,287		(769,970	)
EURO STOXX Bank Index	Barclays Bank plc		97,753		03/19/21		EUR	110.23		EUR	8,616		(3,392,617	)
EURO STOXX Bank Index	UBS AG		99,463		06/18/21		EUR	106.38		EUR	8,766		(3,440,571	)
													(22,519,532	)
												$	(30,820,429	)

OTC Interest Rate Swaptions Written

Description	Paid by the Fund			Received by the Fund				Counterparty	Expiration Date		Exercise Rate			Notional Amount (000)			Value
	Rate		Frequency	Rate			Frequency
Call
5-Year Interest Rate Swap		3 month LIBOR	Quarterly		1.55	%	Semi-Annual	Goldman Sachs International		07/25/19		1.55	%		USD	103,790	$	(109,269	)
5-Year Interest Rate Swap		3 month LIBOR	Quarterly		1.90	%	Semi-Annual	Nomura International plc		09/20/19		1.90	%		USD	415,005		(708,243	)
5-Year Interest Rate Swap		3 month LIBOR	Quarterly		1.55	%	Semi-Annual	Goldman Sachs International		09/25/19		1.55	%		USD	103,790		(420,307	)
5-Year Interest Rate Swap		3 month LIBOR	Quarterly		1.55	%	Semi-Annual	Goldman Sachs International		12/27/19		1.55	%		USD	69,190		(452,538	)
																	$	(1,690,357	)

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.HY.32.V1		5.00	%		Quarterly		06/20/24		USD	8,783	$	(680,317	)	$	(541,499	)	$	(138,818	)

CONSOLIDATED SCHEDULE OF INVESTMENTS 19

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

OTC Total Return Swaps

Reference Entity	Fixed Amount Paid / (Received) by the Fund(a)		Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
S&P 500 Index Annual Dividend Future December 2020	USD	1,895,013	Goldman Sachs     International		12/18/20	USD	1,895	$	439,438	$	—	$	439,438
S&P 500 Index Annual Dividend Future December 2021	USD	2,403,225	BNP Paribas SA		12/17/21	USD	2,403		579,150		—		579,150
								$	1,018,588	$	—	$	1,018,588

^(a)  At termination, the fixed amount paid (received) will be exchanged for the total return of the reference entity.

OTC Total Return Swaps^(a)

Reference Entity	Counterparty	Termination Date	Net Notional Amount	Unrealized Appreciation (Depreciation)			Net Value of Reference Entities	Gross Notional Amount Net Asset Percentage
Equity Securities Long/Short	Citibank NA	02/24/23 - 02/27/23	$(21,047,212)	$	(91,817	)(b)	$(21,132,883)	0.3%
	JPMorgan Chase Bank NA	02/08/23	(18,116,605)		(409,696	)(c)	(18,522,311)	0.2%
				$	(501,513	)	$(39,655,194)

^(a)  The Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of10-211 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest:

LIBOR Intercontinental Exchange LIBOR USD 1 Month

United States Overnight Bank Funding Rate

^(b)  Amount includes $(6,146) of net dividends and financing fees.

^(c)  Amount includes $(3,990) of net dividends and financing fees.

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Citibank NA, as of June 30, 2019, expiration dates 02/24/23 - 02/27/23:

	Shares			Value			% of Basket Value
Reference Entity — Short
Canada
Pembina Pipeline Corp.		(9,915	)	$	(369,101	)		1.8	%
Shopify, Inc.		(2,775	)		(834,015	)		3.9
					(1,203,116	)
China
China Everbright International Ltd.		(374,000	)		(345,443	)		1.6
China Evergrande Group		(14,000	)		(39,217	)		0.2
China International Capital Corp. Ltd.		(233,400	)		(471,115	)		2.2
China Molybdenum Co. Ltd.		(282,000	)		(89,438	)		0.4
Great Wall Motor Co. Ltd.		(337,000	)		(241,457	)		1.2
Huazhu Group Ltd.		(27,684	)		(1,003,545	)		4.8
Meituan Dianping		(39,400	)		(346,062	)		1.6
Shanghai Fosun Pharmaceutical
Group Co. Ltd.		(4,000	)		(12,115	)		0.1
Wuxi Biologics Cayman, Inc.		(45,500	)		(408,204	)		1.9
Xiaomi Corp.		(1,059,000	)		(1,358,253	)		6.4
ZTE Corp.		(52,800	)		(152,880	)		0.7

	Shares			Value			% of Basket Value
China (continued)
ZTO Express Cayman, Inc.		(63,752	)	$	(1,218,938	)		5.8	%
					(5,686,667	)
France
Bollore SA		(10,749	)		(47,429	)		0.2
Germany
Continental AG		(3,548	)		(516,656	)		2.5
Daimler AG (Registered)		(2,006	)		(111,878	)		0.5
Volkswagen AG		(6,992	)		(1,199,313	)		5.7
Volkswagen AG (Preference)		(5,443	)		(916,807	)		4.3
					(2,744,654	)
Hong Kong
Sino Biopharmaceutical Ltd.		(213,000	)		(217,915	)		1.0
Japan
LINE Corp.		(7,000	)		(196,879	)		1.0

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

	Shares			Value			% of Basket Value
Japan (continued)
Nippon Paint Holdings Co. Ltd.		(4,400	)	$	(171,295	)		0.8	%
					(368,174	)
Macau
Galaxy Entertainment Group Ltd.		(66,000	)		(443,982	)		2.1
Mexico
Industrias Penoles SAB de CV		(7,416	)		(95,566	)		0.5
South Korea
Hyundai Heavy Industries Co. Ltd.		(2,202	)		(226,211	)		1.1
LG Display Co. Ltd.		(25,306	)		(392,248	)		1.8
Lotte Corp.		(7,726	)		(294,819	)		1.4
					(913,278	)
Switzerland
Swisscom AG (Registered)		(828	)		(415,896	)		2.0
Taiwan
Advantech Co. Ltd.		(62,000	)		(527,997	)		2.5
Hotai Motor Co. Ltd.		(25,000	)		(409,697	)		1.9
					(937,694	)
United Kingdom
Linde plc		(5,061	)		(1,016,249	)		4.8
Reckitt Benckiser Group plc		(550	)		(43,425	)		0.2
					(1,059,674	)
United States
AmerisourceBergen Corp.		(340	)		(28,988	)		0.1
Aptiv plc		(11,229	)		(907,640	)		4.3
Baker Hughes a GE Co.		(5,521	)		(135,982	)		0.6
Boston Scientific Corp.		(19,721	)		(847,609	)		4.0
Digital Realty Trust, Inc.		(2,902	)		(341,827	)		1.6
DISH Network Corp.		(8,702	)		(334,244	)		1.6
Dominion Energy, Inc.		(6,051	)		(467,863	)		2.2
Fortive Corp.		(2,269	)		(184,969	)		0.9
Freeport-McMoRan, Inc.		(83,373	)		(967,960	)		4.6
Hormel Foods Corp.		(30,501	)		(1,236,510	)		5.8
NVIDIA Corp.		(2,272	)		(373,131	)		1.8
Sherwin-Williams Co. (The)		(1,063	)		(487,162	)		2.3
T Rowe Price Group, Inc.		(2,060	)		(226,003	)		1.1
Worldpay, Inc.		(3,745	)		(458,950	)		2.2
					(6,998,838	)
Total Reference Entity — Short					(21,132,883	)
Net Value of Reference Entity — Citibank NA				$	(21,132,883	)
The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank NA, as of June 30, 2019, expiration date 02/08/23:
	Shares			Value			% of Basket Value
Reference Entity — Short
Australia
Coles Group Ltd.		(2,366	)		(22,215	)		0.1
Fortescue Metals Group Ltd.		(5,859	)		(37,261	)		0.2
					(59,476	)
Brazil
Lojas Americanas SA (Preference)		(45,354	)		(195,119	)		1.0
Petroleo Brasileiro SA		(2,278	)		(17,738	)		0.1
Suzano SA		(66,436	)		(567,655	)		3.1

	Shares			Value			% of Basket Value
Brazil (continued)
Ultrapar Participacoes SA		(27,304	)	$	(143,632	)		0.8	%
					(924,144	)
Canada
Cenovus Energy, Inc.		(110,837	)		(977,563	)		5.3
Saputo, Inc.		(5,350	)		(160,146	)		0.9
					(1,137,709	)
China
AAC Technologies Holdings, Inc.		(71,000	)		(401,683	)		2.2
Autohome, Inc.		(5,415	)		(463,632	)		2.5
Brilliance China Automotive Holdings Ltd.		(546,000	)		(603,816	)		3.3
China Everbright International Ltd.		(211,000	)		(194,889	)		1.0
China International Capital Corp. Ltd.		(200	)		(404	)		0.0
China Southern Airlines Co. Ltd.		(580,000	)		(402,987	)		2.2
China State Construction International Holdings Ltd.		(828,000	)		(850,492	)		4.6
Geely Automobile Holdings Ltd.		(22,000	)		(37,722	)		0.2
iQIYI, Inc.		(51,670	)		(1,066,985	)		5.8
Shenzhou International Group Holdings Ltd.		(31,600	)		(435,913	)		2.3
Sunny Optical Technology Group Co. Ltd.		(61,600	)		(637,763	)		3.4
Vipshop Holdings Ltd.		(13,380	)		(115,469	)		0.6
					(5,211,755	)
Finland
Neste OYJ		(998	)		(33,929	)		0.2
France
Bollore SA		(19,221	)		(84,811	)		0.5
Germany
Daimler AG (Registered)		(18,897	)		(1,053,920	)		5.7
Hong Kong
China Gas Holdings Ltd.		(26,400	)		(98,103	)		0.5
Japan
Daiichi Sankyo Co. Ltd.		(5,100	)		(267,472	)		1.4
FamilyMart UNY Holdings Co. Ltd.		(17,300	)		(413,030	)		2.2
Fast Retailing Co. Ltd.		(1,300	)		(786,888	)		4.3
LINE Corp.		(13,200	)		(371,257	)		2.0
Makita Corp.		(3,100	)		(105,842	)		0.6
Nippon Paint Holdings Co. Ltd.		(17,200	)		(669,608	)		3.6
SMC Corp.		(1,600	)		(599,800	)		3.2
SoftBank Group Corp.		(600	)		(28,899	)		0.2
					(3,242,796	)
Poland
mBank SA		(117	)		(13,475	)		0.1
PGE Polska Grupa Energetyczna SA		(5,551	)		(14,276	)		0.1
Santander Bank Polska SA		(1,233	)		(122,596	)		0.6
					(150,347	)
South Korea
Hyundai Steel Co.		(594	)		(21,537	)		0.1
LG Display Co. Ltd.		(16,161	)		(250,498	)		1.3
Lotte Corp.		(1,437	)		(54,835	)		0.3
Lotte Shopping Co. Ltd.		(624	)		(86,846	)		0.5
					(413,716	)
United Kingdom
BT Group plc		(104,670	)		(261,710	)		1.4
United States
Activision Blizzard, Inc.		(7,448	)		(351,546	)		1.9
Advanced Micro Devices, Inc.		(37,721	)		(1,145,587	)		6.2

CONSOLIDATED SCHEDULE OF INVESTMENTS 21

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

	Shares			Value			% of Basket Value
United States (continued)
Brown-Forman Corp.		(699	)	$	(38,745	)		0.2	%
Clorox Co. (The)		(761	)		(116,517	)		0.6
Conagra Brands, Inc.		(27,802	)		(737,309	)		4.0
Concho Resources, Inc.		(5,252	)		(541,901	)		2.9
Constellation Brands, Inc.		(1,921	)		(378,322	)		2.0
Deere & Co.		(3,267	)		(541,375	)		2.9
Digital Realty Trust, Inc.		(2,274	)		(267,854	)		1.5

	Shares			Value			% of Basket Value
United States (continued)
Hess Corp.		(1,159	)	$	(73,678	)		0.4	%
Sherwin-Williams Co. (The)		(1,111	)		(509,160	)		2.8
Square, Inc.		(4,270	)		(309,703	)		1.7
Tesla, Inc.		(3,751	)		(838,198	)		4.5
					(5,849,895	)
Total Reference Entity — Short					(18,522,311	)
Net Value of Reference Entity — JPMorgan Chase Bank NA				$	(18,522,311	)

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate		2.32	%

Balances Reported in the Consolidated Statement of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps(a)	$	—	$	(541,499	)	$	—	$	(138,818	)	$	—
OTC Swaps		—		—			1,018,588		(501,513	)		—
Options Written		N/A		N/A			6,743,004		(12,340,914	)		(32,510,786	)

^(a) Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	558,466	$	—	$	—	$	—	$	558,466
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		7,411,194		—		—		7,411,194
Options purchased
Investments at value — unaffiliated(b)		—		—		35,550,839		1,783,069		5,089,009		—		42,422,917
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		—		1,018,588		—		—		—		1,018,588
	$	—	$	—	$	37,127,893	$	9,194,263	$	5,089,009	$	—	$	51,411,165
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		698,942		—		—		—		698,942
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		5,318,705		—		—		5,318,705
Options written
Options written at value		—		—		29,167,014		1,653,415		1,690,357		—		32,510,786
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		138,818		—		—		—		—		138,818
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		—		501,513		—		—		—		501,513
	$	—	$	138,818	$	30,367,469	$	6,972,120	$	1,690,357	$	—	$	39,168,764

^(a) Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Consolidated Schedule of Investments. In the Consolidated Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b) Includes options purchased at value as reported in the Consolidated Schedule of Investments.

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	(22,887,637	)	$	—		$	(1,466,562	)	$	—	$	(24,354,199	)
Forward foreign currency exchange contracts		—		—			—			(1,361,790	)		—			—		(1,361,790	)
Options purchased(a)		—		—			(14,406,847	)		(3,379,328	)		8,262,172			—		(9,524,003	)
Options written		—		—			12,009,793			1,755,481			(4,157,482	)		—		9,607,792
Swaps		—		(771,479	)		(4,151,769	)		—			7,655,745			—		2,732,497
	$	—	$	(771,479	)	$	(29,436,460	)	$	(2,985,637	)	$	10,293,873		$	—	$	(22,899,703	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			(6,516,052	)		—			929,678			—		(5,586,374	)
Forward foreign currency exchange contracts		—		—			—			3,031,050			—			—		3,031,050
Options purchased(b)		—		—			17,920,892			(1,451,519	)		1,580,816			—		18,050,189
Options written		—		—			16,531,489			439,229			2,248,733			—		19,219,451
Swaps		—		(352,873	)		(3,860,197	)		—			(8,694,462	)		—		(12,907,532	)
	$	—	$	(352,873	)	$	24,076,132		$	2,018,760		$	(3,935,235	)	$	—	$	21,806,784

^(a) Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b) Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

CONSOLIDATED SCHEDULE OF INVESTMENTS 23

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	27,098,715
Average notional value of contracts — short		194,473,048
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		363,941,453
Average amounts sold — in USD		591,978,462
Options:
Average value of option contracts purchased		28,720,364
Average value of option contracts written		34,136,964
Average notional value of swaption contracts purchased		207,502,500
Average notional value of swaption contracts written		345,887,500
Credit default swaps:
Average notional value — buy protection		6,616,100
Interest rate swaps:
Average notional value — pays fixed rate		144,146,729
Average notional value — receives fixed rate		118,960,793
Total return swaps:
Average notional value		22,497,781

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	15,529		$	1,874,339
Forward foreign currency exchange contracts		7,411,194			5,318,705
Options(a)		42,422,917			32,510,786
Swaps — Centrally cleared		—			14,924
Swaps — OTC(b)		1,018,588			501,513
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	50,868,228		$	40,220,267
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(15,529	)		(1,889,263	)
Total derivative assets and liabilities subject to an MNA	$	50,852,699		$	38,331,004

^(a) Includes options purchased at value which is included in Investments at value – unaffiliated in the Consolidated Statement of Assets and Liabilities and reported in the Consolidated Schedule of Investments.

^(b) Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Consolidated Statement of Assets and Liabilities.

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset(a)			Non-cash Collateral Received			Cash Collateral Received(b)			Net Amount of Derivative Assets(c)(d)
Bank of America NA	$	5,475,078	$	(3,059,593	)	$	(991,740	)	$	—		$	1,423,745
Barclays Bank plc		312,224		(312,224	)		—			—			—
BNP Paribas SA		1,894,691		(1,894,691	)		—			—			—
Citibank NA		6,201,576		(4,574,871	)		—			—			1,626,705
Credit Suisse International		4,766,340		(1,311,157	)		—			(2,560,000	)		895,183
Goldman Sachs International		7,781,905		(982,114	)		—			(4,159,560	)		2,640,231
JPMorgan Chase Bank NA		1,237,563		(1,237,563	)		—			—			—
JPMorgan Chase Bank NA(e)		542,667		—			—			(542,667	)		—
Morgan Stanley & Co. International plc		7,097,065		(7,097,065	)		—			—			—
Morgan Stanley & Co. International plc(e)		740,014		—			—			(560,000	)		180,014
Nomura International plc		6,003,964		(2,634,492	)		—			(3,120,000	)		249,472
Societe Generale SA		1,046,567		(138,053	)		—			(700,000	)		208,514
Societe Generale SA(e)		2,981,501		—			—			(2,981,501	)		—
UBS AG		4,771,544		(4,771,544	)		—			—			—
	$	50,852,699	$	(28,013,367	)	$	(991,740	)	$	(14,623,728	)	$	7,223,864

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged(f)			Cash Collateral Pledged		Net Amount of Derivative Liabilities (d)(g)
Bank of America NA	$	3,059,593	$	(3,059,593	)	$	—		$	—	$	—
Barclays Bank plc		3,392,617		(312,224	)		(2,980,820	)		—		99,573
BNP Paribas SA		2,046,939		(1,894,691	)		—			—		152,248
Citibank NA		4,574,871		(4,574,871	)		—			—		—
Credit Suisse International		1,311,157		(1,311,157	)		—			—		—
Goldman Sachs International		982,114		(982,114	)		—			—		—
JPMorgan Chase Bank NA		3,444,167		(1,237,563	)		—			—		2,206,604
Morgan Stanley & Co. International plc		11,018,305		(7,097,065	)		(3,921,240	)		—		—
Nomura International plc		2,634,492		(2,634,492	)		—			—		—
Societe Generale SA		138,053		(138,053	)		—			—		—
UBS AG		5,728,696		(4,771,544	)		—			—		957,152
	$	38,331,004	$	(28,013,367	)	$	(6,902,060	)	$	—	$	3,415,577

^(a) The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b) Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

^(c) Net amount represents the net amount receivable from the counterparty in the event of default.

^(d) Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(e) Represents derivatives owned by the BlackRock Cayman Global Allocation V.I. Fund I, Ltd., a wholly-owned subsidiary of the Fund. See Note 1.

^(f) Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(g) Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Consolidated Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Argentina	$	304,999	$	—	$	—	$	304,999
Australia		—		19,064,039		7,658,116		26,722,155
Brazil		44,857,797		—		—		44,857,797
Canada		136,185,062		—		—		136,185,062
Chile		2,011,626		—		—		2,011,626
China		53,172,880		68,788,308		—		121,961,188
Czech Republic		—		2,732,202		—		2,732,202
Denmark		—		9,241,497		—		9,241,497
Finland		—		676,481		—		676,481
France		56,750,371		171,148,244		—		227,898,615
Germany		28,658,054		98,309,604		—		126,967,658
Hong Kong		2,823,918		65,989,918		—		68,813,836
India		—		80,118,531		—		80,118,531
Indonesia		—		3,400,627		—		3,400,627
Italy		9,503,245		36,779,231		—		46,282,476
Japan		—		530,757,520		—		530,757,520
Macau		—		45,860		—		45,860
Malaysia		—		1,288,140		—		1,288,140
Mexico		975,409		—		—		975,409
Netherlands		28,591,409		161,937,071		—		190,528,480
Norway		—		59,036		—		59,036
Peru		586,285		—		—		586,285
Portugal		—		2,353,656		—		2,353,656
Singapore		—		41,713,040		—		41,713,040
South Africa		1,836		607,200		—		609,036
South Korea		4,622,515		32,995,363		—		37,617,878
Spain		—		41,962,349		—		41,962,349

CONSOLIDATED SCHEDULE OF INVESTMENTS 25

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

	Level 1			Level 2			Level 3		Total
Sweden	$	—		$	2,096,863		$	—	$	2,096,863
Switzerland		268,981			78,002,239			—		78,271,220
Taiwan		8,724,223			97,792,097			—		106,516,320
Thailand		—			16,511,135			—		16,511,135
Turkey		—			126,802			—		126,802
United Arab Emirates		—			15,689,061			—		15,689,061
United Kingdom		21,081,791			94,574,403			—		115,656,194
United States		2,559,350,542			22,365,680			2,392,367		2,584,108,589
Corporate Bonds
Australia		—			—			34,676,351		34,676,351
Chile		—			189,147			—		189,147
China		—			4,631,052			—		4,631,052
France		—			5,982,201			—		5,982,201
India		—			56			—		56
Japan		—			23,303,642			—		23,303,642
Luxembourg		—			1,819,163			—		1,819,163
Netherlands		—			8,486,976			—		8,486,976
Singapore		—			4,939,024			—		4,939,024
Switzerland		—			3,892,324			—		3,892,324
Turkey		—			—			2,247,000		2,247,000
United Kingdom		—			9,004,264			—		9,004,264
United States		—			395,512,438			—		395,512,438
Floating Rate Loan Interests		—			16,320,141			—		16,320,141
Foreign Government Obligations(a)		—			363,874,675			—		363,874,675
Preferred Securities:
Brazil		5,264,029			—			—		5,264,029
Germany		—			24,070,513			—		24,070,513
Netherlands		—			2,807,976			—		2,807,976
South Korea		—			181,077			—		181,077
United Kingdom		—			24,009,445			4,874		24,014,319
United States		18,584,300			93,923,143			25,038,290		137,545,733
U.S. Treasury Obligations		—			1,251,510,857			—		1,251,510,857
Short-Term Securities:
Foreign Government Obligations(a)		—			298,171,258			—		298,171,258
Money Market Funds		20,212,625			—			—		20,212,625
Time Deposits(a)		4,510,518			—			—		4,510,518
U.S. Treasury Obligations		—			851,224,821			—		851,224,821
Options Purchased:
Equity contracts		—			35,550,839			—		35,550,839
Foreign currency exchange contracts		—			1,783,069			—		1,783,069
Interest rate contracts		—			5,089,009			—		5,089,009
Liabilities:
Investments:
Investment Sold Short
Common Stocks(a)		—			(4,959,932	)		—		(4,959,932	)
Subtotal	$	3,007,042,415		$	5,118,443,375		$	72,016,998	$	8,197,502,788
Investments valued at NAV(b)										133,639,644
Total Investments									$	8,331,142,432
Derivative Financial Instruments(c)
Assets:
Equity contracts	$	558,466		$	1,018,588		$	—	$	1,577,054
Foreign currency exchange contracts		—			7,411,194			—		7,411,194
Liabilities:
Credit contracts		—			(138,818	)		—		(138,818	)
Equity contracts		(698,942	)		(29,668,527	)		—		(30,367,469	)
Foreign currency exchange contracts		—			(6,972,120	)		—		(6,972,120	)
Interest rate contracts		—			(1,690,357	)		—		(1,690,357	)
	$	(140,476	)	$	(30,040,040	)	$	—	$	(30,180,516	)

^(a) See above Consolidated Schedule of Investments for values in each country.

^(b) Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c) Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Global Allocation V.I. Fund

A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the period in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

	Common Stocks			Corporate Bonds			Preferred Securities			Total
Investments:
Assets:
Opening balance, as of December 31, 2018	$	9,124,363		$	42,178,532		$	75,248,455		$	126,551,350
Transfers into level 3		—			—			—			—
Transfers out of level 3		—			(1	)		—			(1	)
Accrued discounts/premiums		—			(21,455	)		—			(21,455	)
Net realized loss		(462,194	)		(321,944	)		(563,287	)		(1,347,425	)
Net change in unrealized appreciation (depreciation)(a)(b)		2,208,410			(776,055	)		(29,555,942	)		(28,123,587	)
Purchases		—			632,733			5,483			638,216
Sales		(820,096	)		(4,768,459	)		(20,091,545	)		(25,680,100	)
Closing balance, as of June 30, 2019	$	10,050,483		$	36,923,351		$	25,043,164		$	72,016,998
Net change in unrealized appreciation (depreciation) on investments still held at June 30, 2019(b)	$	2,208,410		$	(1,341,137	)	$	3,815,549		$	4,682,822

^(a) Included in the related net change in unrealized appreciation (depreciation) in the Consolidated Statement of Operations.

^(b) Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at June 30, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

The Fund’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

See notes to consolidated financial statements.

CONSOLIDATED SCHEDULE OF INVESTMENTS 27

Consolidated Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock   Global   Allocation   V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $128,828,848) (cost — $7,671,952,112)	$	8,139,915,628
Investments at value — affiliated (cost — $195,153,265)		196,186,736
Cash		13,951,169
Cash pledged:
Futures contracts		13,815,000
Centrally cleared swaps		303,000
Receivables:
Investments sold		47,744,486
Securities lending income — affiliated		22,472
Swaps		1,693,804
Capital shares sold		263,805
Dividends — affiliated		36,147
Dividends — unaffiliated		9,686,734
Interest — unaffiliated		15,498,729
Variation margin on futures contracts		15,529
Unrealized appreciation on:
Forward foreign currency exchange contracts		7,411,194
OTC swaps		1,018,588
Prepaid expenses		86,433
Total assets		8,447,649,454
LIABILITIES
Investments sold short, at value (proceeds $6,302,150)		4,959,932
Foreign bank overdraft (cost — $1,431,710)		1,431,792
Cash received as collateral for OTC derivatives		17,210,000
Cash collateral on securities loaned at value		133,558,265
Options written at value (premium received $26,912,876)		32,510,786
Payables:
Investments purchased		45,195,083
Capital shares redeemed		6,732,889
Deferred foreign capital gain tax		1,300,740
Distribution fees		1,439,962
Investment advisory fees		4,258,520
Directors’ and Officer’s fees		32,714
Other affiliates		21,803
Transfer agent fees		4,858,943
Variation margin on futures contracts		1,874,339
Variation margin on centrally cleared swaps		14,924
Other accrued expenses		2,863,242
Unrealized depreciation on:
Forward foreign currency exchange contracts		5,318,705
OTC swaps		501,513
Total liabilities		264,084,152
NET ASSETS	$	8,183,565,302
NET ASSETS CONSIST OF
Paid-in capital	$	7,464,540,299
Accumulated earnings		719,025,003
NET ASSETS	$	8,183,565,302
NET ASSET VALUE
Class I— Based on net assets of $1,126,414,074 and 66,978,531 shares outstanding, 400 million shares authorized, $0.10 par value	$	16.82
Class II— Based on net assets of $221,992,350 and 13,252,977 shares outstanding, 200 million shares authorized, $0.10 par value	$	16.75
Class III— Based on net assets of $6,835,158,878 and 477,153,100 shares outstanding, 1.5 billion shares authorized, $0.10 par value	$	14.32

See notes to consolidated financial statements.

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Statement of Operations(unaudited)

Six Months Ended June 30, 2019

	BlackRock   Global   Allocation V.I.   Fund
INVESTMENT INCOME
Dividends — affiliated	$	980,722
Dividends — unaffiliated		70,966,321
Interest — unaffiliated		46,245,880
Securities lending income — affiliated — net		287,496
Foreign taxes withheld		(4,598,189)
Total investment income		113,882,230
EXPENSES
Investment advisory		27,991,502
Distribution — class specific		8,653,423
Transfer agent — class specific		8,331,973
Custodian		538,880
Accounting services		300,224
Printing		205,915
Professional		112,201
Directors and Officer		62,507
Board realignment and consolidation		41,997
Transfer agent		3,470
Miscellaneous		76,758
Total expenses excluding dividend expense		46,318,850
Dividends expense — unaffiliated		163,187
Total expenses		46,482,037
Less:
Fees waived and/or reimbursed by the Manager		(184,216)
Transfer agent fees waived and/or reimbursed — class specific		(5,242,699)
Total expenses after fees waived and/or reimbursed		41,055,122
Net investment income		72,827,108
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		(6,136,044)
Investments — unaffiliated (net of $(126,762) foreign capital gain tax)		123,151,211
Forward foreign currency exchange contracts		(1,361,790)
Foreign currency transactions		(164,584)
Futures contracts		(24,354,199)
Options written		9,607,792
In-kind redemptions(a)		56,460,736
Short sales — unaffiliated		1,151,595
Swaps		2,732,497
		161,087,214
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		8,812,708
Investments — unaffiliated (net of $(569,611) foreign capital gain tax)		669,756,173
Forward foreign currency exchange contracts		3,031,050
Foreign currency translations		3,574
Futures contracts		(5,586,374)
Options written		19,219,451
Short sales — unaffiliated		(4,079,744)
Swaps		(12,907,532)
		678,249,306
Net realized and unrealized gain		839,336,520
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	912,163,628
(a)   See Note 2 of the Notes to Consolidated Financial Statements.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS 29

Consolidated Statements of Changes in Net Assets

	BlackRock Global Allocation V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	72,827,108	$	136,500,439
Net realized gain		161,087,214		390,264,119
Net change in unrealized appreciation (depreciation)		678,249,306		(1,270,564,056)
Net increase (decrease) in net assets resulting from operations		912,163,628		(743,799,498)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		—		(107,089,999)
Class II		—		(10,743,144)
Class III		—		(383,334,181)
Decrease in net assets resulting from distributions to shareholders		—		(501,167,324)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(1,703,709,767)		(578,134,925)
NET ASSETS
Total decrease in net assets		(791,546,139)		(1,823,101,747)
Beginning of period		8,975,111,441		10,798,213,188
End of period	$	8,183,565,302	$	8,975,111,441

^(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to consolidated financial statements.

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Global Allocation V.I. Fund
	Class I
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018			2017			2016			2015			2014
Net asset value, beginning of period	$	15.19	$	17.26		$	15.51		$	15.09		$	16.26		$	17.61
Net investment income(a)		0.15		0.26			0.22			0.22			0.22			0.29
Net realized and unrealized gain (loss)		1.48		(1.52	)		1.92			0.40			(0.35	)		0.12
Net increase (decrease) from investment operations		1.63		(1.26	)		2.14			0.62			(0.13	)		0.41
Distributions(b)
From net investment income		—		(0.17	)		(0.22	)		(0.20	)		(0.19	)		(0.39)
From net realized gain		—		(0.64	)		(0.17	)		—			(0.84	)		(1.37)
From return of capital		—		—			—			—			(0.01	)		—
Total distributions		—		(0.81	)		(0.39	)		(0.20	)		(1.04	)		(1.76)
Net asset value, end of period	$	16.82	$	15.19		$	17.26		$	15.51		$	15.09		$	16.26
Total Return(c)
Based on net asset value		10.73%(d)		(7.34)%			13.86%			4.11%			(0.89)%			2.30%
Ratios to Average Net Assets(e)
Total expenses		0.74%(f)		0.75%			0.72%			0.74%			0.75%			0.74%
Total expenses after fees waived and/or reimbursed		0.73%(f)		0.74%			0.72%			0.74%			0.73%			0.72%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.73%(f)		0.73%			0.70%			0.73%			0.73%			0.72%
Net investment income		1.82%(f)		1.53%			1.32%			1.47%			1.32%			1.64%
Supplemental Data
Net assets, end of period (000)	$	1,126,414	$	2,091,197		$	2,306,034		$	2,107,145		$	1,994,371		$	1,708,903
Portfolio turnover rate		72%		144%			118%			135%			90%(g)			72%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19			Year Ended December 31,
	(unaudited)			2018			2017			2016			2015			2014
Investments in underlying funds		—	%		0.01	%		0.01	%		—	%		—	%		—%

^(f) Annualized.

^(g) Includes mortgage dollar roll transactions (“MDRs”). Excluding MDRs, the portfolio turnover rate would have been 88%.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS 31

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Global Allocation V.I. Fund
	Class II
	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	15.14	$	17.21		$	15.46		$	15.04		$	16.21		$	17.56
Net investment income(a)		0.14		0.23			0.19			0.20			0.19			0.25
Net realized and unrealized gain (loss)		1.47		(1.52	)		1.93			0.40			(0.35	)		0.14
Net increase (decrease) from investment operations		1.61		(1.29	)		2.12			0.60			(0.16	)		0.39
Distributions(b)
From net investment income		—		(0.14	)		(0.20	)		(0.18	)		(0.16	)		(0.37	)
From net realized gain		—		(0.64	)		(0.17	)		—			(0.84	)		(1.37	)
From return of capital		—		—			—			—			(0.01	)		—
Total distributions		—		(0.78	)		(0.37	)		(0.18	)		(1.01	)		(1.74	)
Net asset value, end of period	$	16.75	$	15.14		$	17.21		$	15.46		$	15.04		$	16.21
Total Return(c)
Based on net asset value		10.63%(d)		(7.52)%			13.74%			3.96%			(1.05)%			2.16%
Ratios to Average Net Assets(e)
Total expenses		1.02%(f)		1.04%			1.00%			1.02%			1.02%			1.01%
Total expenses after fees waived and/or reimbursed		0.89%(f)		0.89%			0.87%			0.89%			0.88%			0.88%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.88%(f)		0.88%			0.85%			0.88%			0.88%			0.87%
Net investment income		1.71%(f)		1.34%			1.17%			1.33%			1.17%			1.39%
Supplemental Data
Net assets, end of period (000)	$	221,992	$	213,919		$	258,564		$	229,492		$	256,964		$	260,312
Portfolio turnover rate		72%		144%			118%			135%			90%(g)			72%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		—	%		0.01	%		0.01	%		—	%		—	%		—	%

^(f) Annualized.

^(g) Includes mortgage dollar roll transactions (“MDRs”). Excluding MDRs, the portfolio turnover rate would have been 88%.

See notes to consolidated financial statements.

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Global Allocation V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	12.95	$	14.84		$	13.37		$	13.04		$	14.19		$	15.58
Net investment income(a)		0.11		0.19			0.17			0.16			0.15			0.21
Net realized and unrealized gain (loss)		1.26		(1.31	)		1.66			0.34			(0.30	)		0.12
Net increase (decrease) from investment operations		1.37		(1.12	)		1.83			0.50			(0.15	)		0.33
Distributions(b)
From net investment income		—		(0.13	)		(0.19	)		(0.17	)		(0.15	)		(0.35)
From net realized gain		—		(0.64	)		(0.17	)		—			(0.84	)		(1.37)
From return of capital		—		—			—			—			(0.01	)		—
Total distributions		—		(0.77	)		(0.36	)		(0.17	)		(1.00	)		(1.72)
Net asset value, end of period	$	14.32	$	12.95		$	14.84		$	13.37		$	13.04		$	14.19
Total Return(c)
Based on net asset value		10.58%(d)		(7.58)%			13.71%			3.81%			(1.14)%			2.08%
Ratios to Average Net Assets(e)
Total expenses		1.14%(f)		1.14%			1.13%			1.12%			1.12%			1.11%
Total expenses after fees waived and/or reimbursed		0.99%(f)		0.99%			1.00%			0.99%			0.98%			0.98%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.98%(f)		0.98%			0.98%			0.98%			0.98%			0.97%
Net investment income		1.61%(f)		1.28%			1.15%			1.22%			1.07%			1.32%
Supplemental Data
Net assets, end of period (000)	$	6,835,159	$	6,669,996		$	8,233,615		$	8,139,218		$	8,869,288		$	9,780,007
Portfolio turnover rate		72%		144%			118%			135%			90%(g)			72%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		—	%		0.01	%		0.01	%		—	%		—	%		—	%

^(f) Annualized.

^(g) Includes mortgage dollar roll transactions (“MDRs”). Excluding MDRs, the portfolio turnover rate would have been 88%.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS 33

Notes to Consolidated Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The consolidated financial statements presented are for BlackRock Global Allocation V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Basis of Consolidation: The accompanying consolidated financial statements of the Fund include the accounts of BlackRock Cayman Global Allocation V.I. Fund I, Ltd. (the “Subsidiary”), which is a wholly-owned subsidiary of the Fund and primarily invests in commodity-related instruments. The Subsidiary enables the Fund to hold these commodity-related instruments and satisfy regulated investment company tax requirements. The Fund may invest up to 25% of its total assets in the Subsidiary. The net assets of the Subsidiary as of period end were $19,380,848, which is 0.2% of the Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Subsidiary is subject to the same investment policies and restrictions that apply to the Fund, except that the Subsidiary may invest without limitation in commodity-related instruments.

2. SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the consolidated financial statements, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Consolidated Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts, forward foreign currency exchange contracts, options written, swaps and short sales) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/ with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-Kind Redemptions: The Fund transferred securities and cash to shareholders in connection with anin-kind redemption transaction. For financial reporting purposes, these transactions were treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the redemption. For the six months ended June 30, 2019, the Fund hadin-kind redemptions of $911,810,826. For tax purposes, no gains or losses were recognized.

Net gains and losses resulting from suchin-kind redemptions, which are included in the Consolidated Statement of Operations were as follows:

Investments - unaffiliated	$	57,099,610
Forward foreign currency exchange contracts		(259,642	)
Written options		(379,232	)
	$	56,460,736

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s ordinary income and/or capital gains for that year.

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended June 30, 2019. The cost basis of securities at December 31, 2018 has been adjusted to $9,345,810,586. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value (“NAV”) of the Fund.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Fund may incur charges on certain uninvested cash balances and overdrafts, subject to certain conditions.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the consolidated financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

• Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. OTC options and options on swaps (“swaptions”) are valued

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 35

Notes to Consolidated Financial Statements  (unaudited) (continued)

by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

• Swap agreements are valued utilizing quotes received daily by the Fund’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

4. SECURITIES AND OTHER INVESTMENTS

Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations, are typically issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

For mortgage pass-through securities (the “Mortgage Assets”) there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

Non-agency mortgage-backed securities are securities issued bynon-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks.Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Inflation-Indexed Bonds: Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed- income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Consolidated Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generallynon-investment grade, often involve borrowers whose financial condition is troubled or uncertain

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 37

Notes to Consolidated Financial Statements  (unaudited) (continued)

and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.

Short Sale Transactions: In short sale transactions, a fund sells a security it does not hold in anticipation of a decline in the market price of that security. When a fund makes a short sale, it will borrow the security sold short from a broker/counterparty and deliver the security to the purchaser. To close out a short position, a fund delivers the same security to the broker and records a liability to reflect the obligation to return the security to the broker. The amount of the liability is subsequentlymarked-to-market to reflect the market value of the short sale. A fund maintains a segregated account of securities or deposits cash with the broker-dealer as collateral for the short sales. Cash deposited with the broker is recorded as an asset in the Consolidated Statement of Assets and Liabilities. Securities segregated as collateral are denoted in the Consolidated Schedule of Investments. A fund may pay a financing fee for the difference between the market value of the short position and the cash collateral deposited with the broker which would be recorded as interest expense. A fund is required to repay the counterparty any dividends received on the security sold short, which, if applicable, is shown as dividend expense in the Consolidated Statement of Operations. A fund may pay a fee on the assets borrowed from the counterparty, which, if applicable, is shown as broker fees and expenses on short sales in the Consolidated Statement of Operations. A fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a fund sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a fund will be able to close out a short position at a particular time or at an acceptable price.

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common or preferred stocks in the Fund’s Consolidated Schedule of Investments, and the value of any related collateral are shown separately in the Consolidated Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Consolidated Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

38 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received(a)			Net Amount
Citigroup Global Markets, Inc.	$	34,106,154	$	(34,106,154)		$	—
Credit Suisse Securities (USA) LLC		5,797,720		(5,797,720)			—
Deutsche Bank Securities, Inc.		577,583		(577,583)			—
Goldman Sachs & Co.		1,607,100		(1,607,100)			—
JP Morgan Securities LLC		82,762,571		(82,762,571)			—
Merrill Lynch, Pierce, Fenner & Smith		85,862		(85,862)			—
Morgan Stanley & Co. LLC		2,637,371		(2,637,371)			—
Nomura Securities International, Inc.		1,252,925		(1,252,925)			—
State Street Bank & Trust Co.		1,562		(1,562)			—
	$	128,828,848	$	(128,828,848	)	$	—

^(a)  Cash collateral with a value of $133,558,265 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g. inflation risk). Derivative financial instruments categorized by risk exposure are included in the Consolidated Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Consolidated Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Consolidated Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Consolidated Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Consolidated Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Consolidated Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed.Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Consolidated Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives on the Consolidated Statement of Assets and Liabilities.

Options: The Fund purchases and writes call and put options to increase or decrease its exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 39

Notes to Consolidated Financial Statements  (unaudited) (continued)

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value — unaffiliated and options written at value, respectively, in the Consolidated Statement of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Consolidated Statement of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Consolidated Statement of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Fund writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Fund writes a put option, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written on the Consolidated Statement of Assets and Liabilities.

• Swaptions — The Fund purchases and writes options on swaps (“swaptions”) primarily to preserve a return or spread on a particular investment or portion of the Fund’s holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

• Interest rate caps and floors — Interest rate caps and floors are entered into to gain or reduce exposure to interest rates (interest rate risk and/or other risk). Caps are agreements whereby one party agrees to make payments to the other, in return for a premium, to the extent that interest rate indexes exceed a specified rate, or “cap.” Floors are agreements whereby one party agrees to make payments to the other, in return for a premium, to the extent that interest rate indexes fall below a specified rate, or “floor.” The maximum potential amount of future payments that the Fund would be required to make under an interest rate cap would be the notional amount times the percentage increase in interest rates determined by the difference between the interest rate index current value and the value at the time the cap was entered into.

• Foreign currency options — The Fund purchases and writes foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.

In purchasing and writing options, the Fund bears the risk of an unfavorable change in the value of the underlying instrument or the risk that it may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Fund purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Consolidated Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Consolidated Statement of Assets and Liabilities. Payments received or paid are recorded in the Consolidated Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Consolidated Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Consolidated Statement of Operations.

• Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).

The Fund may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Fund will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

• Total return swaps — Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or

40 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

to exchange the risk/return of one market (e.g., fixed-income) with another market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Consolidated Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

• Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

• Forward swaps — The Fund enters into forward interest rate swaps and forward total return swaps. In a forward swap, the Fund and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting themark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Consolidated Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively.Non-cash collateral pledged by the Fund, if any, is noted in the Consolidated Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell,re-pledge or use cash andnon-cash collateral it receives. The Fund generally agrees not to usenon-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its counterparties are not fully collateralized, it bears the risk of loss from counterpartynon-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Consolidated Statement of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 41

Notes to Consolidated Financial Statements  (unaudited) (continued)

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $6 Billion		0.65	%
$6 Billion - $8 Billion		0.61
$8 Billion - $10 Billion		0.59
$10 Billion - $15 Billion		0.57
Greater than $15 Billion		0.55

The Manager provides investment management and other services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing investment management or administrative services. However, the Fund pays the Manager based on the Fund’s net assets, which includes the assets of the Subsidiary.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

	Distribution Fees
Class II		0.15	%
Class III		0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	163,571
Class III		8,489,852
	$	8,653,423

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Consolidated Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	675,098
Class II		219,441
Class III		7,437,434
	$	8,331,973

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations. For the six months ended June 30, 2019, the amount waived was $7,798.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations. For the six months ended June 30, 2019, the Fund waived $176,418 in investment advisory fees pursuant to this arrangement.

42 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

For the six months ended June 30, 2019, the Fund reimbursed the Manager $54,306 for certain accounting services, which is included in accounting services in the Consolidated Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.07	%
Class II	0.07
Class III	0.07

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Consolidated Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

Transfer Agent Fees Waived and/or Reimbursed
Class I	$	42,854
Class II		143,011
Class III		5,056,834
	$	5,242,699

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitations”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class II	1.40
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Consolidated Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $62,440 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 43

Notes to Consolidated Financial Statements  (unaudited) (continued)

purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the six months ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Consolidated Statement of Operations.

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, including paydowns and excluding short-term securities, were as follows:

	Purchases		Sales
Non-U.S Government Securities	$	1,831,960,097	$	2,531,765,720
U.S Government Securities		4,012,919,662		3,983,658,502

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$    7,908,233,267
Gross unrealized appreciation	$	705,025,059
Gross unrealized depreciation		(279,081,384)
Net unrealized appreciation	$	425,943,675

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Consolidated Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability;

(iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Fund portfolio’s current earnings rate.

44 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Consolidated Financial Statements  (unaudited) (continued)

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Consolidated Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

For OTC options purchased, the Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund, and not the counterparty, to perform. The Fund may be exposed to counterparty credit risk with respect to options written to the extent the Fund deposits collateral with its counterparty to a written option.

With exchange-traded options purchased and futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: The Fund invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 45

Notes to Consolidated Financial Statements  (unaudited) (continued)

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended 12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		2,424,138	$	39,140,480		10,941,451	$	185,931,630
Shares issued in reinvestment of distributions		—		—		6,174,089		95,191,192
Shares redeemed		(73,124,599)		(1,206,912,276)		(13,006,417)		(221,542,400)
Net increase (decrease)		(70,700,461)	$	(1,167,771,796)		4,109,123	$	59,580,422
Class II
Shares sold		117,308	$	1,903,037		764,329	$	13,069,294
Shares issued in reinvestment of distributions		—		—		698,218		10,743,143
Shares redeemed		(994,139)		(15,985,470)		(2,359,206)		(39,963,707)
Net decrease		(876,831)	$	(14,082,433)		(896,659)	$	(16,151,270)
Class III
Shares sold		2,604,458	$	35,990,834		7,408,038	$	108,800,864
Shares issued in reinvestment of distributions		—		—		29,081,385		383,334,183
Shares redeemed		(40,359,046)		(557,846,372)		(76,302,859)		(1,113,699,124)
Net decrease		(37,754,588)	$	(521,855,538)		(39,813,436)	$	(621,564,077)
Total Net Decrease		(109,331,880)	$	(1,703,709,767)		(36,600,972)	$	(578,134,925)

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the consolidated financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the consolidated financial statements.

46 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report  

Currency
AUD	Australian Dollar
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
INR	Indian Rupee
JPY	Japanese Yen
NOK	Norwegian Krone
SGD	Singapore Dollar
USD	United States Dollar
ZAR	South African Rand
Portfolio Abbreviations
ADR	American Depositary Receipts
CDX	Credit Default Swap Index
CVA	Certification Van Aandelon (Dutch Certificate)
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
NASDAQ	National Association of Securities Dealers Automated
OTC	Over-the-counter
PCL	Public Company Limited
PIK	Payment-In-Kind
REIT	Real Estate Investment Trust

GLOSSARYOF TERMS USEDINTHIS REPORT 47

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Government Money Market V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Money Market Overview  For the Six-Month Period Ended June 30,  2019

June 2019 was characterized by speculation that the Federal Open Market Committee (“FOMC”) was poised to cut interest rates as “insurance” amidst rising geopolitical tensions over trade, concerns about slowing global growth, and stubbornly soft inflation. In fact, the FOMC elected to keep interest rates unchanged at its June 19, 2019 meeting. At the same time, rising “uncertainties” were acknowledged with a pledge to act as necessary to ensure the economic expansion remains on track.

The first half of 2019 included a weaker-than-expected jobs report early in the first quarter of 2019, and concerns about global growth were evidenced by the weak indicators of the purchasing manufacturers index and the Institute for Supply Management Indices in addition to weakening core inflation measurements. Combining economic data with the FOMC’s updated Summary of Economic Projections reflected a modestly lower unemployment rate through 2020, a largely unchanged outlook for economic growth, and expectations for below-target core inflation through 2020. As of the end of June, futures contracts for federal funds were priced for approximately 0.75% of interest rate cuts throughout the remainder of 2019, with at least one additional 0.25% easing priced for 2020. It is important to note that money market managers are closely monitoring economic data and potential monetary policy adjustments to determine any impact on their portfolio positioning.

The outstanding supply of U.S. Treasury bills contracted approximately $200 billion during the second quarter of 2019, and demand for repurchase agreements and other cash investments was strong as taxable money market mutual funds experienced solid inflows. Furthermore, the slope of the London Interbank Offered Rate curve inverted as investors factored in the possibility of a series of interest rate cuts during the balance of 2019 and 2020 — as interest rates move down, security prices go up.

An interest rate reduction of at least 0.25% is possible at the next FOMC meeting, with the potential for additional monetary accommodation as the year progresses. The ultimate path for interest rates is likely to be dependent upon the extent to which uncertainties related to global trade impact economic growth. The magnitude of future rate actions also hinges in our view on whether inflation moves closer to the FOMC’s 2.00% interest rate target over the balance of 2019.

We anticipate that the U.S. government debt ceiling will need to be addressed by Congress during the next few months, possibly as soon as late August. The supply of U.S. Treasury bills is expected to contract in the lead up to this event, before rebounding later in the year. In our view, money market yield curves should remain inverted over the third quarter of 2019 based on expectations for additional monetary accommodation.

Past performance is no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 BlackRock Government Money Market V.I. Fund

Investment Objective

BlackRock Government Money Market V.I. Fund’s (the “Fund”) investment objective is to seek to preserve capital, maintain liquidity, and achieve the highest possible current income consistent with the foregoing.

Fund Information

CURRENTSEVEN-DAY YIELDS

	7-Day SEC Yield			7-Day Yield
BlackRock Government Money Market V.I. Fund		2.15	%		2.15	%

The7-Day SEC Yields may differ from the7-Day Yields shown above due to the fact that the7-Day SEC Yields exclude distributed capital gains.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

PORTFOLIO COMPOSITION

Asset Type	Percent of Net Assets
U.S. Government Sponsored Agency Obligations		46	%
Repurchase Agreements		29
U.S. Treasury Obligations		11
Other Assets Less Liabilities		14

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, and other fund expenses. The expense example shown below (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,010.80	$	1.50	$	1,000.00	$	1,023.31	$	1.51		0.30	%

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

FUND SUMMARY 3

Schedule of Investments  (unaudited)  June 30, 2019 BlackRock Government Money Market V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
U.S. Government Sponsored Agency Obligations — 45.5%
Federal Farm Credit Bank Discount Notes(a):
1.95%, 07/22/19	USD		640	$	639,059
1.97%, 07/23/19			1,145		1,143,241
1.99%, 07/25/19			725		723,825
2.02%, 07/29/19			5,630		5,618,677
2.11%, 08/15/19			660		658,020
2.11%, 09/12/19			465		462,539
2.12%, 10/21/19			570		565,762
2.12%, 10/31/19			765		758,804
2.10%, 11/20/19			560		554,544
2.06%, 01/17/20			1,485		1,465,035
2.04%, 02/04/20			910		896,940
2.04%, 02/21/20			865		851,731
2.02%, 03/10/20			1,650		1,623,446
2.02%, 03/24/20			1,365		1,341,614
Federal Farm Credit Bank Variable Rate Notes(b):
(LIBOR USD 1 Month - 0.05%),
2.38%, 02/04/20			2,000		2,000,000
(LIBOR USD 1 Month - 0.05%),
2.37%, 02/07/20			1,900		1,899,988
(LIBOR USD 1 Month - 0.01%),
2.38%, 06/18/20			240		239,995
(LIBOR USD 1 Month + 0.00%),
2.39%, 06/19/20			1,000		1,000,452
(LIBOR USD 1 Month + 0.00%),
2.40%, 06/26/20			1,000		999,972
(LIBOR USD 1 Month - 0.04%),
2.37%, 09/11/20			510		509,982
(LIBOR USD 1 Month + 0.03%),
2.43%, 12/14/20			1,025		1,024,939
(SOFR + 0.11%), 2.53%, 01/15/21			705		705,000
(LIBOR USD 1 Month + 0.05%),
2.44%, 04/16/21			1,185		1,185,000
Federal Home Loan Bank:
2.49%, 07/11/19			360		359,999
2.48%, 07/15/19			830		830,000
Federal Home Loan Bank Discount Notes(a):
1.28%, 07/05/19			260		259,931
1.56%, 07/08/19			1,525		1,524,286
1.75%, 07/12/19			1,315		1,314,040
1.86%, 07/16/19			995		994,009
1.91%, 07/19/19			500		499,400
1.98%, 07/24/19			345		344,468
2.00%, 07/26/19			420		419,298
2.03%, 07/30/19			1,420		1,417,266
2.07%, 08/05/19			1,685		1,681,052
2.08%, 08/07/19			1,470		1,466,379
2.10%, 08/14/19			1,940		1,934,361
2.12%, 08/21/19			4,135		4,121,134
2.14%, 08/28/19			2,910		2,899,006
2.14%, 08/30/19			2,825		2,813,940
2.10%, 09/04/19			3,135		3,121,811
2.11%, 09/10/19			2,635		2,622,528
2.11%, 09/11/19			2,075		2,065,584
2.12%, 09/18/19			3,100		3,084,905
2.12%, 09/20/19			3,425		3,406,179
2.13%, 09/27/19			2,550		2,535,044
2.11%, 10/09/19			555		551,311
2.11%, 10/11/19			480		476,661
2.11%, 10/15/19			800		794,237
2.12%, 10/21/19			915		908,168
2.12%, 10/23/19			1,225		1,215,640
2.12%, 10/30/19			880		872,860
2.10%, 11/13/19			1,010		1,001,005

Security		Par (000)		Value
U.S. Government Sponsored Agency Obligations (continued)
2.10%, 11/20/19	USD		2,080	$	2,060,613
Federal Home Loan Bank Variable Rate Notes(b):
(SOFR + 0.02%), 2.44%, 07/17/19			290		290,000
(LIBOR USD 1 Month - 0.11%),
2.28%, 07/19/19			1,960		1,960,000
(LIBOR USD 3 Month - 0.26%),
2.27%, 08/16/19			675		674,916
(LIBOR USD 1 Month - 0.08%),
2.32%, 08/27/19			1,190		1,190,000
(SOFR + 0.02%), 2.44%, 08/27/19			555		555,000
(LIBOR USD 1 Month - 0.09%),
2.33%, 09/09/19			1,565		1,565,000
(LIBOR USD 1 Month - 0.07%),
2.33%, 09/17/19			2,000		2,000,000
(LIBOR USD 1 Month - 0.06%),
2.34%, 09/27/19			1,000		1,000,000
(SOFR + 0.01%), 2.43%, 11/13/19			1,300		1,300,000
(SOFR + 0.03%), 2.45%, 12/06/19			430		430,000
(LIBOR USD 3 Month - 0.14%),
2.28%, 12/19/19			535		535,000
(SOFR + 0.01%), 2.43%, 12/20/19			970		970,000
(LIBOR USD 1 Month - 0.04%),
2.37%, 01/14/20			520		520,000
(SOFR + 0.01%), 2.43%, 01/17/20			795		795,000
(SOFR + 0.05%), 2.47%, 01/17/20			95		95,000
(LIBOR USD 1 Month - 0.06%),
2.34%, 02/24/20			1,085		1,085,000
(LIBOR USD 1 Month - 0.04%),
2.36%, 02/25/20			900		900,000
(LIBOR USD 1 Month - 0.04%),
2.35%, 04/17/20			3,480		3,479,501
(SOFR + 0.04%), 2.45%, 06/19/20			415		415,000
(SOFR + 0.08%), 2.50%, 07/24/20			265		265,000
(LIBOR USD 1 Month - 0.03%),
2.40%, 08/04/20			560		560,000
(SOFR + 0.11%), 2.54%, 10/01/20			990		990,000
(LIBOR USD 3 Month - 0.13%),
2.26%, 12/21/20			1,350		1,350,000
(SOFR + 0.12%), 2.54%, 03/12/21			890		890,000
Federal Home Loan Mortgage Corp. Variable Rate Notes, (LIBOR USD 1 Month - 0.10%),
2.31%, 08/08/19(b)			1,500		1,499,922
Federal National Mortgage Association,
0.88%, 08/02/19			665		663,988
Total U.S. Government Sponsored Agency Obligations — 45.5% (Cost: $100,442,007)					100,442,007
U.S. Treasury Obligations — 11.5%
U.S. Treasury Bills(a):
2.02%, 08/22/19			8,000		7,971,631
2.03%, 08/29/19			4,000		3,983,906
2.05%, 12/19/19			2,850		2,821,158
1.97%, 02/27/20			845		831,537
1.96%, 04/23/20			3,345		3,279,873
U.S. Treasury Notes:
0.88%, 07/31/19			95		94,876
1.38%, 07/31/19			160		159,850
(US Treasury 3 Month Bill Money Market
Yield + 0.03%), 2.13%, 04/30/20(b)			3,000		2,999,933
(US Treasury 3 Month Bill Money Market
Yield + 0.05%), 2.14%, 10/31/20(b)			3,000		2,995,824

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Government Money Market V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
(US Treasury 3 Month Bill Money Market
Yield + 0.14%), 2.24%, 04/30/21(b)	USD		170	$	169,746
Total U.S. Treasury Obligations — 11.5% (Cost: $25,308,334)					25,308,334
Total Repurchase Agreements — 29.0% (Cost: $64,000,000)					64,000,000
Total Investments — 86.0% (Cost: $189,750,341)(c)					189,750,341
Other Assets Less Liabilities — 14.0%					30,869,463
Net Assets — 100.0%				$	220,619,804

^(a)  Rates are the current rate or a range of current rates as of period end.

^(b)  Variable rate security. Rate shown is the rate in effect as of period end.

^(c)  Cost for U.S. federal income tax purposes.

Repurchase Agreements

	Repurchase Agreements												Collateral
Counterparty	Coupon Rate			Purchase Date		Maturity Date		Par (000)		At Value (000)		Proceeds Including Interest	Position	Original Par	Position Received, At Value
Bank of America Securities, Inc.		2.50	%		06/28/19		07/01/19	$	10,000	$	10,000	$10,002,083	U.S. Government Sponsored Agency Obligation, 4.00%, due 08/15/47	$10,133,672	$10,200,001
BNP Paribas SA		2.50			06/28/19		07/01/19		3,000		3,000	3,000,625	U.S. Government Sponsored Agency Obligations, 3.00% to 4.50%, due 01/20/41 to 06/20/49	5,984,928	3,066,642
Goldman Sachs & Co. LLC		2.65			06/26/19		07/03/19		4,000		4,000	4,002,061	U.S. Government Sponsored Agency Obligations, 0.32% to 2.49%, due 12/25/25 to 10/25/44	197,129,052	4,360,753
JP Morgan Securities LLC		2.53			06/28/19		07/01/19		3,000		3,000	3,000,633	U.S. Treasury Obligations, 0.00% due 08/15/20 to 05/15/48	3,204,511	3,060,000
		2.57	(a)		06/28/19		08/05/19		3,500		3,500	3,509,487	U.S. Government Sponsored Agency Obligations, 3.00% to 5.41%, due 02/15/38 to 09/20/48	40,071,810	3,675,000
Total JP Morgan Securities LLC										$	6,500				$  6,735,000
Mizuho Securities USA LLC		2.51			06/28/19		07/01/19		10,000		10,000	10,002,092	U.S. Treasury Obligations, 2.75% to 2.88%, due 09/30/23 to 11/15/42	9,690,600	10,200,042
Societe Generale SA		2.48			06/28/19		07/01/19		10,500		10,500	10,502,170	U.S. Treasury Obligations, 0.00% to 2.63%, due 07/25/19 to 01/31/26	9,938,900	10,710,052
TD Securities USA LLC		2.50			06/28/19		07/01/19		10,000		10,000	10,002,084	U.S. Treasury Obligation, 2.63%, due 06/15/21	10,024,000	10,200,075

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Government Money Market V.I. Fund

Repurchase Agreements (continued)

	Repurchase Agreements												Collateral
Counterparty	Coupon Rate			Purchase Date		Maturity Date		Par (000)		At Value (000)		Proceeds Including Interest	Position	Original Par	Position Received, At Value
Wells Fargo Securities LLC		2.50	%		06/28/19		07/01/19	$	10,000	$	10,000	$10,002,083	U.S. Treasury Obligation, 2.50%, due 01/15/22	$9,902,200	$10,200,018
										$	64,000				$65,672,583

^(a)  Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Short-Term Securities(a)	$	—	$	189,750,341	$	—	$	189,750,341

^(a) See above Schedule of Investments for values in each security type. Investments categorized as Level 2 are included in security type.

See notes to financial statements.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities

June 30, 2019

	BlackRock  Government  Money Market  V.I. Fund
ASSETS
Investments at value — unaffiliated (cost — $125,750,341)	$	125,750,341
Cash		6,205,708
Repurchase agreements at value (cost — $64,000,000)		64,000,000
Receivables:
Capital shares sold		25,136,566
Interest — unaffiliated		102,922
Prepaid expenses		1,729
Total assets		221,197,266
LIABILITIES
Payables:
Capital shares redeemed		413,159
Investment advisory fees		37,311
Directors’ and Officer’s fees		5,387
Professional fees		48,247
To the Manager		163
Transfer agent fees		30,557
Other accrued expenses		42,638
Total liabilities		577,462
NET ASSETS	$	220,619,804
NET ASSETS CONSIST OF
Paid-in capital	$	220,603,927
Accumulated earnings		15,877
NET ASSETS	$	220,619,804
NET ASSET VALUE
Class I — Based on net assets of $220,619,804 and 220,603,463 shares outstanding, 3.3 billion shares authorized, $0.10 par value	$	1.00

See notes to financial statements.

FINANCIAL STATEMENTS 7

Statement of Operations

Six Months Ended June 30, 2019

	BlackRock  Government  Money Market  V.I. Fund
INVESTMENT INCOME
Interest — unaffiliated	$	2,478,242
Total investment income		2,478,242
EXPENSES
Investment advisory		501,861
Transfer agent		87,261
Professional		32,778
Accounting services		20,616
Directors and Officer		7,635
Custodian		6,364
Printing		6,306
Registration		87
Miscellaneous		2,429
Total expenses		665,337
Less:
Fees waived and/or reimbursed by the Manager		(279,302)
Transfer agent fees waived and/or reimbursed		(84,917)
Total expenses after fees waived and/or reimbursed		301,118
Net investment income		2,177,124
REALIZED GAIN
Net realized gain from investments		1,157
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,178,281

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Government Money Market V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	2,177,124		$	2,388,212
Net realized gain		1,157			6,346
Net increase in net assets resulting from operations		2,178,281			2,394,558
DISTRIBUTIONS TO SHAREHOLDERS(a)
Decrease in net assets resulting from distributions to shareholders		(2,177,124	)		(2,388,212)
CAPITAL SHARE TRANSACTIONS
Net proceeds from sale of shares		58,194,994			163,742,133
Reinvestments of distributions		2,164,317			2,388,212
Cost of shares redeemed		(39,180,127	)		(178,847,247)
Shares issued in reorganization		—			76,491,419
Net increase in net assets derived from capital share transactions		21,179,184			63,774,517
NET ASSETS
Total increase in net assets		21,180,341			63,780,863
Beginning of period		199,439,463			135,658,600
End of period	$	220,619,804		$	199,439,463

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 9

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Government Money Market V.I. Fund
	Class I
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Net investment income		0.0108			0.0160			0.0064			0.0013			0.0000	(a)		0.0000(a)
Net realized gain (loss)		0.0000	(a)		(0.0001	)		0.0000	(a)		0.0000	(a)		0.0001			0.0001
Net increase from investment operations		0.0108			0.0159			0.0064			0.0013			0.0001			0.0001
Distributions(b)
From net investment income		(0.0108	)		(0.0159	)		(0.0064	)		(0.0013	)		(0.0000	)(c)		(0.0000)(c)
From net realized gain		—			—			(0.0000	)(c)		(0.0000	)(c)		(0.0001	)		(0.0001)
Total distributions		(0.0108	)		(0.0159	)		(0.0064	)		(0.0013	)		(0.0001	)		(0.0001)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Return(d)
Based on net asset value		1.08%	(e)		1.61%			0.65%			0.13%			0.01%			0.01%
Ratios to Average Net Assets
Total expenses		0.66%	(f)		0.80%	(g)		0.72%			0.62%			0.61%			0.61%
Total expenses after fees waived and/or reimbursed		0.30%	(f)		0.30%	(g)		0.30%			0.30%			0.18%			0.17%
Net investment income		2.17%	(f)		1.60%			0.63%			0.13%			0.00%			0.00%
Supplemental Data
Net assets, end of period (000)	$	220,620		$	199,439		$	135,659		$	151,523		$	152,118		$	228,241

^(a)  Amount is less than $0.00005 per share.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Amount is greater than $(0.00005) per share.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

^(g)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.72% and 0.29%, respectively.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Government Money Market V.I. Fund (the “Fund”). The Fund is classified as diversified.

The Fund operates as a “government money market fund” under Rule2a-7 under the 1940 Act. The Fund is not subject to liquidity fees or temporary suspensions of redemptions due to declines in the Fund’s weekly liquid assets.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganization: The Board of Directors of the Company (the “Board”) and the Board of Trustees of State Farm Variable Product Trust and shareholders of the State Farm Money Market Fund (the “Target Fund”) approved the reorganization of the Target Fund into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the Target Fund in exchange for an equal aggregate value of newly-issued Class I Shares of the Fund.

Each shareholder of the Target Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on October 26, 2018, less the costs of the Target Fund’s reorganization.

The reorganization was accomplished by atax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

Target Fund	Shares Prior to Reorganization		Conversion Ratio		Government Money Market V.I. Fund’s Share Class		Shares of   Government Money   Market V.I. Fund
State Farm Money Market Fund		76,492,521		1.00		Class I		76,492,521

The Target Fund’s net assets and composition of net assets on October 26, 2018, the valuation date of the reorganization were as follows:

Target Fund	Net Assets		Paid-In Capital		Accumulated   Earnings
State Farm Money Market Fund		$76,491,419		$76,491,419		$—

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the acquisition were $124,850,847. The aggregate net assets of the Fund immediately after the acquisition amounted to $201,342,266. The Target Fund’s fair value and cost of investments prior to the reorganization were as follows:

Target Fund	Fair Value of Investments		Cost of   Investments
State Farm Money Market Fund		$76,881,766		$76,881,766

The purpose of the transaction was to combine the assets of the Target Fund with the assets of the Fund. The reorganization was atax-free event and was effective on October 29, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $2,749,789

• Net realized gain on investments: $6,346

• Net increase in net assets resulting from operations: $2,756,135

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since October 29, 2018.

Reorganization costs incurred by the Fund in connection with the reorganization were expensed by the Fund. The Manager reimbursed the Fund $110,686, which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual

NOTESTO FINANCIAL STATEMENTS 11

Notes to Financial Statements  (unaudited) (continued)

results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis.

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are distributed at least annually and are recorded on theex-dividend dates. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund are charged to the Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund’s investments are valued under the amortized cost method which approximates current market value in accordance with Rule2a-7 under the 1940 Act. Under this method, investments are valued at cost when purchased and, thereafter, a constant proportionate accretion of discounts and amortization of premiums are recorded until the maturity of the security. The Fund seeks to maintain its NAV per share at $1.00, although there is no assurance that it will be able to do so on a continuing basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Repurchase Agreements: Repurchase agreements are commitments to purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed upon repurchase amount. Pursuant to the custodial undertaking associated with atri-party repurchase arrangement, an unaffiliated third party custodian maintains accounts to hold collateral for the fund and its counterparties. Typically, the fund and counterparty are not permitted to sell,re-pledge or use the collateral absent a default by the counterparty or the fund, respectively.

In the event the counterparty defaults and the fair value of the collateral declines, the fund could experience losses, delays and costs in liquidating the collateral.

Repurchase agreements are entered into by the fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits the fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, the fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, the fund would recognize a liability with respect to such excess collateral. The liability reflects the fund’s obligation under bankruptcy law to return the excess to the counterparty.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets.

Average Daily Net Assets	Investment    Advisory Fees
First $1 Billion		0.500%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.400
$3 Billion — $4 Billion		0.375
$4 Billion — $7 Billion		0.350
$7 Billion — $10 Billion		0.325
$10 Billion — $15 Billion		0.300
Greater than $15 Billion		0.290

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

Expense Limitations, Waivers and Reimbursements: The Manager has voluntarily agreed to waive a portion of its investment advisory fees and/or reimburse operating expenses to enable the Fund to maintain minimum levels of daily net investment income if applicable. These amounts, if any, are reported in the Statement of Operations as fees waived and/or reimbursed by the Manager. The Manager may discontinue the waiver and/or reimbursement at any time. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager under this agreement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $956 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”), to 0.30% of average daily net assets of Class I Shares. The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2021, unless approved by the Board, including a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived $279,302 and reimbursed $84,917, which is shown as fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed, respectively, in the Statement of Operations.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

7. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

NOTESTO FINANCIAL STATEMENTS 13

Notes to Financial Statements  (unaudited) (continued)

8. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares were as follows:

	Six Months Ended 06/30/19						Year Ended     12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		58,181,062		$	58,194,994			163,742,133		$	163,742,133
Shares issued in reinvestment of distributions		2,164,317			2,164,317			2,388,212			2,388,212
Shares issued in reorganization		—			—			76,492,521			76,491,419
Shares redeemed		(39,180,127	)		(39,180,127	)		(178,847,247	)		(178,847,247)
Net increase		21,165,252		$	21,179,184			63,775,619		$	63,774,517

9. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
USD	United States Dollar
Portfolio Abbreviations
LIBOR	London Interbank Offered Rate
SOFR	Secured Overnight Financing Rate

GLOSSARYOF TERMS USEDINTHIS REPORT 15

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock International V.I. Fund

Not FDIC Insured • May Lose Value • No  Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock International V.I. Fund

Investment Objective

BlackRock International V.I. Fund’s (the “Fund”) investment objective is long-term capital growth.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund outperformed its benchmark, the MSCI All Country World (ACWI)ex-USA Index.

What factors influenced performance?

From a sector perspective, positive stock selection within the real estate, financials, and information technology sectors contributed the majority of the Fund’s relative performance. The largest individual contributors were Singapore-based digital entertainment provider Sea Ltd., Dutch specialty chemical company Koninklijke DSM NV, and Japanese electronic components manufacturer Omron Corp. In particular, Sea announced strong quarterly results early in the period that led to especially noteworthy performance.

By contrast, a cash allocation and negative stock selection in the utilities and health care sectors were the primary detractors from performance. At the individual stock level, the largest detractors were Chinese internet search provider Baidu, Inc., Canadian mining company First Quantum Minerals Ltd., and mortgage finance specialist Indiabulls Housing Finance Ltd. In particular, Baidu saw poor performance late in the period after announcing that it anticipates near-term challenges in its online marketing business.

Describe recent portfolio activity.

The largest change to the Fund’s positioning in the period was an increase in exposure to the consumer staples sector, moving from an underweight to significantly overweight stance. This was driven by the Fund’s addition of new positions in Swiss food giant Nestle SA and Brazilian beverage company Ambev SA. The Fund also reduced its financials exposure from overweight to significantly underweight following the sales of positions in India’s ICICI Bank Ltd., Sberbank of Russia PJSC, and Bank of China Ltd. From a regional perspective, these changes drove a large increase in overweight exposure to Europeex-U.K., as well as underweight exposure to emerging markets. Sales of Omron, real estate company Mitsui Fudosan Co. Ltd., and cybersecurity specialist Trend Micro, Inc. led to the Fund having more significantly underweight exposure to Japan.

Describe portfolio positioning at period end.

As of period end, the Fund’s largest sector overweight was to consumer staples, particularly because of exposure to the food products and beverages industries. The Fund also had an overweight position to communication services. Energy was the sector with the most significant underweight exposure, as the Fund owned only a single energy company, and the sale of several bank stocks left financials notably underweight as well. From a regional perspective, the Fund was significantly overweight Europeex-U.K. but had significantly underweight exposure to Asia.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Portfolio Information

GEOGRAPHIC ALLOCATION

Country	Percent of Net Assets
Switzerland		15	%
Netherlands		9
France		8
United Kingdom		8
United States		8
China		7
Japan		6
Brazil		5
Canada		5
Spain		5
Germany		5
Mexico		5
Italy		3
Iceland		2
Luxembourg		2
Portugal		2
Thailand		2
Short-Term Securities		8
Liabilities in Excess of Other Assets		(5	)

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock International V.I. Fund

Performance Summary for the Period Ended June 30, 2019

	6-Month Total Returns (a)			Average Annual Total Returns (a)
				1 Year			5 Years			10 Years
Class I (b)(c)		18.59	%		(1.82	)%		1.86	%		5.92	%
MSCI All Country Worldex-USA Index (d)		13.60			1.29			2.16			6.54

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  The Fund invests primarily in stocks of companies located outside the U.S. The Fund’s total returns prior to October 1, 2011 are the returns of the Fund when it followed different investment strategies under the name “BlackRock International Value V.I. Fund.”

^(d)  A free float-adjusted market capitalization index designed to measure the combined equity market performance of developed and emerging countries, excluding the United States. Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,185.90	$	5.53	$	1,000.00	$	1,019.74	$	5.11		1.02	%

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical example that appears in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock International V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 96.9%
Brazil — 5.3%
Ambev SA		631,396	$	2,939,976
Banco do Brasil SA		130,244		1,824,118
				4,764,094
Canada — 4.4%
Rogers Communications, Inc., Class B(a)		45,019		2,409,860
Suncor Energy, Inc.		50,486		1,574,856
				3,984,716
China — 8.9%
Alibaba Group Holding Ltd., ADR(b)		11,741		1,989,512
China Molybdenum Co. Ltd., Class H(a)		3,876,000		1,229,291
Ping An Insurance Group Co. of China Ltd., Class H		246,500		2,964,132
Wuxi Biologics Cayman, Inc.(b)(c)		200,500		1,798,787
				7,981,722
France — 7.7%
Alstom SA(b)		37,460		1,736,292
AXA SA		120,335		3,160,204
Ubisoft Entertainment SA(b)		25,757		2,014,418
				6,910,914
Germany — 4.0%
Knorr-Bremse AG(b)		32,114		3,578,649
Iceland — 2.1%
Marel HF(c)		426,459		1,872,059
Italy — 2.8%
Intesa Sanpaolo SpA		1,153,717		2,469,879
Japan — 6.4%
Sony Corp.		109,400		5,748,967
Luxembourg — 2.1%
SES SA, FDR		121,944		1,906,610
Mexico — 4.1%
Fomento Economico Mexicano SAB de CV		381,985		3,695,714
Netherlands — 9.4%
ASML Holding NV		20,712		4,309,957
Koninklijke DSM NV		33,757		4,165,088
				8,475,045
Portugal — 1.7%
Banco Comercial Portugues SA, Class R(b)		5,006,328		1,547,952
Spain — 4.9%
Banco Bilbao Vizcaya Argentaria SA		551,266		3,074,786
Masmovil Ibercom SA(b)		61,122		1,362,236
				4,437,022

Security			Shares		Value
Switzerland — 15.2%
Cie Financiere Richemont SA (Registered)				19,074	$	1,620,843
Nestle SA (Registered)				51,848		5,367,421
Roche Holding AG				23,837		6,702,675
						13,690,939
Thailand — 1.6%
Sea Ltd., ADR(a)(b)				43,697		1,451,614
United Kingdom — 8.1%
Associated British Foods plc				94,118		2,946,394
BAE Systems plc				384,967		2,419,474
Burberry Group plc				79,270		1,878,872
						7,244,740
United States — 8.2%
Equinix, Inc.				6,224		3,138,701
PTC, Inc.(b)				20,485		1,838,734
Viavi Solutions, Inc.(b)				182,297		2,422,727
						7,400,162
Total Common Stocks — 96.9% (Cost: $80,971,144)						87,160,798
Total Long-Term Investments — 96.9% (Cost: $80,971,144)						87,160,798
Short-Term Securities — 8.4%
Money Market Funds — 8.3%(d)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%				2,390,483		2,390,483
SL Liquidity Series, LLC, Money Market Series, 2.55%(e)				5,133,601		5,135,141
Total Money Market Funds — 8.3% (Cost: $7,525,209)						7,525,624
	Par (000)
Time Deposits — 0.1%
Hong Kong — 0.1%
HK & Shanghai Bank, 2.10%, 07/02/19		HKD		280		35,877
Japan — 0.0%
Sumitomo Mitsui Financial Group, Inc., (0.27)%, 07/01/19		JPY		2,434		22,579
Total Time Deposits — 0.1% (Cost: $58,456)						58,456
Total Short-Term Securities — 8.4% (Cost: $7,583,665)						7,584,080
Total Investments — 105.3% (Cost: $88,554,809)						94,744,878
Liabilities in Excess of Other Assets — (5.3)%						(4,774,899	)
Net Assets — 100.0%					$	89,969,979

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International V.I. Fund

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Annualized7-day yield as of period end.

^(e)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		2,487,119		(96,636	)		2,390,483	$	2,390,483	$	33,454		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		239,214		4,894,387			5,133,601		5,135,141		8,272	(b)		604		415
								$	7,525,624	$	41,726		$	604	$	415

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Brazil	$	4,764,094	$	—	$	—	$	4,764,094
Canada		3,984,716		—		—		3,984,716
China		1,989,512		5,992,210		—		7,981,722
France		—		6,910,914		—		6,910,914
Germany		3,578,649		—		—		3,578,649
Iceland		1,872,059		—		—		1,872,059
Italy		—		2,469,879		—		2,469,879
Japan		—		5,748,967		—		5,748,967
Luxembourg		1,906,610		—		—		1,906,610
Mexico		3,695,714		—		—		3,695,714
Netherlands		—		8,475,045		—		8,475,045
Portugal		—		1,547,952		—		1,547,952
Spain		1,362,236		3,074,786		—		4,437,022
Switzerland		—		13,690,939		—		13,690,939
Thailand		1,451,614		—		—		1,451,614
United Kingdom		—		7,244,740		—		7,244,740
United States		7,400,162		—		—		7,400,162
Short-Term Securities (a)		2,448,939		—		—		2,448,939
Subtotal	$	34,454,305	$	55,155,432	$	—	$	89,609,737
Investments valued at NAV (b)								5,135,141
Total Investments							$	94,744,878

^(a) See above Schedule of Investments for values in each security type.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock International V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $4,904,626) (cost — $81,029,600)	$	87,219,254
Investments at value — affiliated (cost — $7,525,209)		7,525,624
Foreign currency at value (cost — $7,032)		7,012
Receivables:
Investments sold		397,232
Securities lending income — affiliated		2,298
Capital shares sold		6,073
Dividends — affiliated		3,991
Dividends — unaffiliated		249,008
Prepaid expenses		777
Total assets		95,411,269
LIABILITIES
Cash collateral on securities loaned at value		5,136,636
Payables:
Capital shares redeemed		29,777
Custodian fees		26,393
Investment advisory fees		54,761
Directors’ and Officer’s fees		5,375
Other affiliates		263
Printing fees		17,626
Professional fees		100,392
Transfer agent fees		46,193
Other accrued expenses		23,874
Total liabilities		5,441,290
NET ASSETS	$	89,969,979
NET ASSETS CONSIST OF
Paid-in capital	$	86,619,894
Accumulated earnings		3,350,085
NET ASSETS	$	89,969,979
NET ASSET VALUE
Class I — Based on net assets of $89,969,979 and 8,249,813 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.91

See notes to financial statements.

FINANCIAL STATEMENTS 7

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock International V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	33,454
Dividends — unaffiliated		1,631,459
Securities lending income — affiliated — net		8,272
Foreign taxes withheld		(209,588	)
Total investment income		1,463,597
EXPENSES
Investment advisory		335,613
Transfer agent		92,686
Professional		26,695
Accounting services		24,890
Custodian		24,414
Directors and Officer		6,881
Printing		2,376
Board realignment and consolidation		1,347
Miscellaneous		2,916
Total expenses		517,818
Less:
Fees waived and/or reimbursed by the Manager		(1,289	)
Transfer agent fees waived and/or reimbursed		(60,666	)
Total expenses after fees waived and/or reimbursed		455,863
Net investment income		1,007,734
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		604
Investments — unaffiliated (net of $(30,528) foreign capital gain tax)		(1,100,804	)
Foreign currency transactions		(23,065	)
		(1,123,265	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		415
Investments — unaffiliated (net of $51,486 foreign capital gain tax)		15,088,086
Foreign currency translations		2,085
		15,090,586
Net realized and unrealized gain		13,967,321
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	14,975,055

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock International V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	1,007,734		$	1,558,551
Net realized gain (loss)		(1,123,265	)		10,345
Net change in unrealized appreciation (depreciation)		15,090,586			(25,219,019	)
Net increase (decrease) in net assets resulting from operations		14,975,055			(23,650,123	)
DISTRIBUTIONS TO SHAREHOLDERS (a)
Decrease in net assets resulting from distributions to shareholders		—			(5,532,493	)
CAPITAL SHARE TRANSACTIONS
Shares sold		1,156,104			7,398,984
Shares issued in reinvestment of distributions		—			5,532,493
Shares redeemed		(8,393,968	)		(16,948,689	)
Net decrease in net assets derived from capital share transactions		(7,237,864	)		(4,017,212	)
NET ASSETS
Total increase (decrease) in net assets		7,737,191			(33,199,828	)
Beginning of period		82,232,788			115,432,616
End of period	$	89,969,979		$	82,232,788

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 9

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock International V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.20		$	12.56		$	9.58		$	9.71		$	10.10		$	10.87
Net investment income (a)		0.12			0.17	(b)		0.15			0.15			0.14			0.13
Net realized and unrealized gain (loss)		1.59			(2.88	)		2.83			(0.11	)		(0.42	)		(0.69	)
Net increase (decrease) from investment operations		1.71			(2.71	)		2.98			0.04			(0.28	)		(0.56	)
Distributions (c)
From net investment income		—			(0.32	)		—			(0.17	)		(0.11	)		(0.21	)
From net realized gain		—			(0.33	)		—			—			—			—
From return of capital		—			—			—			(0.00	)(d)		—			—
Total distributions		—			(0.65	)		—			(0.17	)		(0.11	)		(0.21	)
Net asset value, end of period	$	10.91		$	9.20		$	12.56		$	9.58		$	9.71		$	10.10
Total Return (e)
Based on net asset value		18.59	%(f)		(21.82	)%		31.11	%		0.39	%		(2.76	)%		(5.19	)%
Ratios to Average Net Assets (g)
Total expenses		1.16	%(h)		1.20	%		1.24	%		1.15	%		1.09	%		1.11	%
Total expenses after fees waived and/or reimbursed		1.02	%(h)		1.07	%		1.11	%		1.04	%		0.98	%		0.99	%
Net investment income		2.25	%(h)		1.48	%(b)		1.37	%		1.57	%		1.35	%		1.21	%
Supplemental Data
Net assets, end of period (000)	$	89,970		$	82,233		$	115,433		$	96,201		$	107,942		$	125,144
Portfolio turnover rate		56	%		100	%		103	%		82	%		112	%		129	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.04 per share and 0.31%, respectively, resulting from anon-recurring dividend.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Amount is greater than $(0.005) per share.

^(e)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(f)  Aggregate total return.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		—	%		—	%		—	%

^(h)  Annualized.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock International V.I. Fund (the “Fund”). The Fund is classified as diversified.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund are charged to the Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Fund may incur charges on certain uninvested cash balances and overdrafts, subject to certain conditions.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

NOTESTO FINANCIAL STATEMENTS 11

Notes to Financial Statements  (unaudited) (continued)

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Goldman Sachs & Co.	$	1,015,210	$	(1,015,210	)	$	—
JP Morgan Securities LLC		1,568,309		(1,568,309	)		—
Merrill Lynch, Pierce, Fenner & Smith		2,321,107		(2,321,107	)		—
	$	4,904,626	$	(4,904,626	)	$	—

^(a)  Cash collateral with a value of $5,136,636 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.75	%
$1 Billion — $3 Billion		0.71
$3 Billion — $5 Billion		0.68
$5 Billion — $10 Billion		0.65
Greater than $10 Billion		0.64

The Manager entered into asub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL, for services it provides for that portion of the Fund for which BIL acts assub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund. For the six months ended June 30, 2019 the Fund had no distribution fees.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $1,032.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $548 for certain accounting services, which is included in accounting services in the Statement of Operations.

NOTESTO FINANCIAL STATEMENTS 13

Notes to Financial Statements  (unaudited) (continued)

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses at 0.08% of average daily net assets. The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were $54,339.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitation as a percentage of average daily net assets is 0.93% for Class I.

Prior to May 24, 2019, the expense limitation as a percentage of average daily net assets was 1.25% for Class I.

The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived $257 and $6,327, which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed, respectively, in the Statement of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $1,822 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, and excluding short-term securities, were $48,254,777 and $54,838,608, respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	88,598,613
Gross unrealized appreciation	$	8,270,452
Gross unrealized depreciation		(2,124,187	)
Net unrealized appreciation	$	6,146,265

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

Concentration Risk: The Fund invests a substantial amount of its assets in issuers located in a single country or a limited number of countries. When the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

The Fund invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

NOTESTO FINANCIAL STATEMENTS 15

Notes to Financial Statements  (unaudited) (continued)

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		111,156		$	1,156,104			604,450		$	7,398,984
Shares issued in reinvestment of distributions		—			—			570,051			5,532,493
Shares redeemed		(798,756	)		(8,393,968	)		(1,430,661	)		(16,948,689	)
Net decrease		(687,600	)	$	(7,237,864	)		(256,160	)	$	(4,017,212	)

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
HKD	Hong Kong Dollar
JPY	Japanese Yen
Portfolio Abbreviations
ADR	American Depositary Receipts
FDR	Fiduciary Depositary Receipt

GLOSSARYOF TERMS USEDINTHIS REPORT 17

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock International Index V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock International Index V.I. Fund

Investment Objective

The investment objective of theBlackRock International Index V.I. Fund (the “Fund”) is to seek to match the performance of the MSCI EAFE Index (Europe, Australasia, Far East) (the “MSCI EAFE Index” or the “Underlying Index”) in U.S. dollars with net dividends as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund’s Class I Shares returned 14.04%. The MSCI EAFE Index returned 14.03% for the same period. The MSCI EAFE Index is a free float-adjusted, market-capitalization weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

What factors influenced performance?

Developed markets, as represented by the MSCI EAFE Index, increased +10% in the first quarter of 2019. Eurozone equity markets all advanced but to varying degrees as the recovery in equity market sentiment from 2018 lows occurred despite slowing economic activity across the region. Partially contributing to the bullish sentiment was the European Central Bank’s reaffirmation of accommodative monetary policy and announcement of a new round of targeted longer-term refinancing operations.

In Asia-Pacific, Japan underperformed as uncertainty around U.S. trade protectionism, an upcomingsales-tax hike, and low levels of growth weighed on sentiment. Still, continued monetary support by the Bank of Japan and a globalrisk-on appetite benefited the country’s equity market. The yen fell-3.7% from intra-quarter highs, providing a tailwind for export names. Elsewhere, Hong Kong rallied amid a rebound in mainland Chinese sentiment.

All eleven of the Global Industry Classification Standard (“GICS”) sectors advanced in the first quarter of 2019. Technology shares outperformed (+15.41%) as restored global risk appetite benefited higher-beta names. Real estate was the second best performing sector (+14.19%) amid the decline in sovereign bond yields. The third best performing sector was materials (+13.28%). All other sectors returned positive results, with communication services (+4.41%), financials (+7.05%), and consumer discretionary (+7.62%) as the lowest sector returns.

As represented by the MSCI EAFE Index, developed markets increased +3.94% in the second quarter of 2019. European equity markets contributed to just over three-quarters of the MSCI EAFE Index’s total return. Sentiment in the region was supported by accommodative monetary policy, the increased expectations of further stimulus, higher-than-normal capacity utilization rates, and labor markets near full employment.

In the Asia-Pacific region, Australia outperformed as a decline in economic growth was driven by a June interest rate cut. Japan underperformed the benchmark but registered in positive territory as investors balancedrisk-on bids for the yen, trade tensions, and declining export volumes.

Ten out of eleven GICS sectors advanced in the second quarter of 2019. Information technology shares (+6.70%) outperformed and were the best-performing sector in the MSCI EAFE Index for the second consecutive quarter, followed by consumer discretionary (+6.21%) and industrials (+6.11%). Real estate(-2.08%) was the single negative contributor over the second quarter of 2019.

Describe recent portfolio activity.

During thesix-month period, as changes were made to the composition of the MSCI EAFE Index, the Fund purchased and sold securities to maintain its objective of matching the risks and return of the Underlying Index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of the Underlying Index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock International Index V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year (e)			5 Years (e)			10 Years (e)
Class I (b)(c)		14.04	%		1.25	%		2.03	%	6.52%
MSCI EAFE Index (d)		14.03			1.08			2.25		6.90

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund invests at least 90% of its assets in securities or other financial instruments that are components of or have economic characteristics similar to the securities included in the MSCI EAFE Index.

^(d)  A free float-adjusted, market-capitalization weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

^(e)  On October 29, 2018, the Fund acquired all of the assets and assumed certain stated liabilities of the International Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization; accordingly, the Fund assumed the performance and financial history of the Predecessor Fund upon completion of the Reorganization.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,140.40	$	1.43	$	1,000.00	$	1,023.46	$	1.35	0.27%

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

Portfolio Information

GEOGRAPHIC ALLOCATION

Country	Percent of Net Assets
Japan		23	%
United Kingdom		14
France		11
Switzerland		10
Germany		9
Australia		8
Netherlands		5
Hong Kong		4
Spain		3
Denmark		2
Italy		2
Sweden		2
Belgium		1
Finland		1
Ireland		1
Israel		1
Norway		1
Singapore		1
Other(a)		—	(b)
Short-Term Securities		2
Liabilities in Excess of Other Assets		(1	)

^(a)  Includes holdings within countries that are 1% or less of net assets. Please refer to Schedule of Investments for such countries.

^(b)  Represents less than 1% of the Fund’s net assets.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 98.3%
Australia — 7.9%
AGL Energy Ltd.		8,720	$	122,633
Alumina Ltd.		32,547		53,424
AMP Ltd.		38,804		57,883
APA Group(a)		15,688		118,967
Aristocrat Leisure Ltd.		7,677		165,947
ASX Ltd.		2,574		149,130
Aurizon Holdings Ltd.		26,460		100,447
AusNet Services		24,028		31,666
Australia & New Zealand Banking Group Ltd.		38,689		767,951
Bank of Queensland Ltd.		5,283		35,376
Bendigo & Adelaide Bank Ltd.		6,467		52,638
BHP Group Ltd.		39,354		1,143,964
BHP Group plc		28,175		720,558
BlueScope Steel Ltd.		7,315		62,199
Boral Ltd.		15,587		56,213
Brambles Ltd.		21,297		192,879
Caltex Australia Ltd.		3,468		60,368
Challenger Ltd.		7,310		34,121
CIMIC Group Ltd.		1,293		40,659
Coca-Cola Amatil Ltd.		6,738		48,372
Cochlear Ltd.		765		111,381
Coles Group Ltd.(b)		15,349		144,114
Commonwealth Bank of Australia		23,635		1,375,286
Computershare Ltd.		6,136		69,979
Crown Resorts Ltd.		4,428		38,703
CSL Ltd.		6,119		926,563
Dexus		13,525		123,384
Domino’s Pizza Enterprises Ltd.		795		21,010
Flight Centre Travel Group Ltd.		739		21,557
Fortescue Metals Group Ltd.		20,700		131,643
Goodman Group		21,548		227,758
GPT Group (The)		23,998		103,692
Harvey Norman Holdings Ltd.		7,026		20,105
Incitec Pivot Ltd.		22,086		52,933
Insurance Australia Group Ltd.		30,864		179,195
Lendlease Group(a)		7,681		70,188
Macquarie Group Ltd.		4,307		379,904
Medibank Pvt Ltd.		36,617		89,848
Mirvac Group		49,339		108,612
National Australia Bank Ltd.		36,830		691,818
Newcrest Mining Ltd.		10,261		230,526
Oil Search Ltd.		18,232		90,920
Orica Ltd.		5,028		71,639
Origin Energy Ltd.		23,388		120,264
QBE Insurance Group Ltd.		18,031		150,003
Ramsay Health Care Ltd.		1,881		95,496
REA Group Ltd.		701		47,355
Rio Tinto Ltd.		4,930		361,001
Rio Tinto plc		15,532		961,324
Santos Ltd.		23,541		117,530
Scentre Group		70,831		191,157
SEEK Ltd.		4,434		65,997
Sonic Healthcare Ltd.		5,363		102,186
South32 Ltd.		65,922		147,773
Stockland		32,369		94,907
Suncorp Group Ltd.		17,281		163,644
Sydney Airport(a)		14,680		82,935
Tabcorp Holdings Ltd.		25,426		79,441
Telstra Corp. Ltd.		55,346		149,661
TPG Telecom Ltd.		4,934		22,331
Transurban Group(a)		35,985		372,604
Treasury Wine Estates Ltd.		9,555		100,351

Security	Shares		Value
Australia (continued)
Vicinity Centres		43,755	$	75,334
Washington H Soul Pattinson & Co. Ltd.		1,455		22,499
Wesfarmers Ltd.		15,136		384,760
Westpac Banking Corp.		45,818		913,164
Woodside Petroleum Ltd.		12,801		328,327
Woolworths Group Ltd.		17,540		409,580
WorleyParsons Ltd.		4,337		45,084
				14,900,861
Austria — 0.2%
ANDRITZ AG		968		36,444
Erste Group Bank AG(b)		4,000		148,337
OMV AG		1,958		95,442
Raiffeisen Bank International AG		1,968		46,210
Verbund AG		920		48,195
voestalpine AG		1,524		47,114
				421,742
Belgium — 1.0%
Ageas		2,429		126,406
Anheuser-Busch InBev SA/NV		10,124		895,876
Colruyt SA		799		46,385
Groupe Bruxelles Lambert SA		1,073		105,423
KBC Group NV		3,339		219,123
Proximus SADP		2,022		59,760
Solvay SA(c)		973		101,047
Telenet Group Holding NV		601		33,489
UCB SA		1,681		139,506
Umicore SA		2,633		84,497
				1,811,512
Chile — 0.0%
Antofagasta plc		5,243		61,931
China — 0.2%
BeiGene Ltd., ADR(b)(c)		441		54,662
BOC Hong Kong Holdings Ltd.		49,000		192,920
Yangzijiang Shipbuilding Holdings Ltd.		31,700		35,915
				283,497
Colombia — 0.0%
Millicom International Cellular SA, SDR		879		49,480
Denmark — 1.7%
AP Moller - Maersk A/S, Class A		50		58,148
AP Moller - Maersk A/S, Class B		87		108,255
Carlsberg A/S, Class B		1,422		188,696
Chr Hansen Holding A/S		1,315		123,748
Coloplast A/S, Class B		1,580		178,601
Danske Bank A/S		9,895		156,770
Demant A/S(b)		1,342		41,770
DSV A/S		2,386		234,949
Genmab A/S(b)		817		150,228
H Lundbeck A/S		927		36,718
ISS A/S		2,222		67,177
Novo Nordisk A/S, Class B		22,993		1,174,418
Novozymes A/S, Class B		2,911		135,731
Orsted A/S(d)		2,532		219,041
Pandora A/S		1,323		47,062
Tryg A/S		1,607		52,293
Vestas Wind Systems A/S		2,598		225,074
				3,198,679
Finland — 1.1%
Elisa OYJ		1,891		92,268
Fortum OYJ		5,906		130,532
Kone OYJ, Class B		4,692		277,078

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Finland (continued)
Metso OYJ(b)		1,399	$	55,059
Neste OYJ		5,115		173,897
Nokia OYJ(c)		75,232		374,715
Nokian Renkaat OYJ		1,554		48,532
Nordea Bank Abp		41,280		299,742
Orion OYJ, Class B		1,385		50,789
Sampo OYJ, Class A		5,893		278,176
Stora Enso OYJ, Class R		7,327		86,222
UPM-Kymmene OYJ		7,343		195,376
Wartsila OYJ Abp		5,901		85,681
				2,148,067
France — 11.0%
Accor SA		2,360		101,304
Aeroports de Paris		395		69,691
Air Liquide SA		5,727		801,026
Airbus SE		7,748		1,096,509
Alstom SA(b)		2,068		95,853
Amundi SA(d)		804		56,135
Arkema SA		915		85,062
Atos SE		1,264		105,603
AXA SA		25,864		679,233
BioMerieux		551		45,655
BNP Paribas SA		15,011		711,601
Bollore SA		11,639		51,356
Bouygues SA		2,914		107,914
Bureau Veritas SA		3,526		87,032
Capgemini SE		2,208		274,528
Carrefour SA		7,725		149,154
Casino Guichard Perrachon SA(c)		735		25,073
Cie de Saint-Gobain		6,595		257,533
Cie Generale des Etablissements Michelin SCA		2,270		287,022
CNP Assurances		2,282		51,798
Covivio		612		64,058
Credit Agricole SA(c)		15,172		181,043
Danone SA		8,329		705,235
Dassault Aviation SA		33		47,431
Dassault Systemes SE		1,736		276,901
Edenred		3,130		159,519
Eiffage SA		1,063		105,056
Electricite de France SA		7,785		98,152
Engie SA		24,963		378,526
EssilorLuxottica SA		3,763		490,659
Eurazeo SE		537		37,419
Eutelsat Communications SA		2,321		43,347
Faurecia SA		1,009		46,799
Gecina SA		601		89,935
Getlink SE		5,858		93,836
Hermes International		421		303,499
ICADE		379		34,735
Iliad SA		353		39,641
Imerys SA		476		25,234
Ingenico Group SA		788		69,739
Ipsen SA		501		68,334
JCDecaux SA		990		29,978
Kering SA		1,009		595,535
Klepierre SA		2,717		91,027
Legrand SA		3,529		258,001
L’Oreal SA		3,380		961,029
LVMH Moet Hennessy Louis Vuitton SE		3,710		1,577,216
Natixis SA		12,518		50,405
Orange SA		26,552		418,807
Pernod Ricard SA		2,832		521,588
Peugeot SA		7,820		192,470

Security	Shares		Value
France (continued)
Publicis Groupe SA		2,776	$	146,520
Remy Cointreau SA		300		43,255
Renault SA		2,559		160,885
Safran SA		4,372		639,588
Sanofi SA		14,996		1,295,989
Sartorius Stedim Biotech		374		58,974
Schneider Electric SE		7,387		668,397
SCOR SE		2,168		95,043
SEB SA		300		53,971
Societe BIC SA		341		25,976
Societe Generale SA		10,426		263,146
Sodexo SA		1,203		140,623
Suez		4,957		71,529
Teleperformance		768		153,874
Thales SA		1,414		174,660
TOTAL SA		31,760		1,781,538
Ubisoft Entertainment SA(b)		1,039		81,259
Unibail-Rodamco-Westfield		774		115,955
Unibail-Rodamco-Westfield		1,073		160,750
Valeo SA		3,186		103,723
Veolia Environnement SA		7,116		173,277
Vinci SA		6,856		700,174
Vivendi SA		12,214		335,185
Wendel SA		369		50,305
Worldline SA(b)(d)		1,099		79,847
				20,768,679
Germany — 8.2%
1&1 Drillisch AG		705		23,524
adidas AG		2,424		749,913
Allianz SE (Registered)		5,705		1,375,910
Aroundtown SA		10,443		86,157
Axel Springer SE		646		45,506
BASF SE		12,294		894,379
Bayer AG (Registered)		12,494		866,588
Bayerische Motoren Werke AG		4,399		325,163
Beiersdorf AG		1,340		160,674
Brenntag AG		2,054		100,785
Carl Zeiss Meditec AG		538		53,063
Commerzbank AG(b)		13,321		95,662
Continental AG		1,462		212,895
Covestro AG(d)		2,547		129,667
Daimler AG (Registered)		12,142		677,181
Delivery Hero SE(b)(d)		1,223		55,515
Deutsche Bank AG (Registered)		26,102		201,274
Deutsche Boerse AG		2,550		359,983
Deutsche Lufthansa AG (Registered)		3,133		53,718
Deutsche Post AG (Registered)		13,398		440,752
Deutsche Telekom AG (Registered)		44,566		772,090
Deutsche Wohnen SE		4,719		172,919
E.ON SE		29,379		318,766
Evonik Industries AG		2,169		63,200
Fraport AG Frankfurt Airport Services Worldwide		553		47,600
Fresenius Medical Care AG & Co. KGaA		2,963		232,694
Fresenius SE & Co. KGaA		5,667		307,718
GEA Group AG		2,303		65,361
Hannover Rueck SE		802		129,678
HeidelbergCement AG		1,979		160,151
Henkel AG & Co. KGaA		1,382		127,016
HOCHTIEF AG		256		31,175
HUGO BOSS AG		842		56,116
Infineon Technologies AG		16,714		297,002
Innogy SE(b)		1,847		79,073

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Germany (continued)
KION Group AG		942	$	59,573
Knorr-Bremse AG(b)		646		71,988
LANXESS AG		1,156		68,654
Merck KGaA		1,718		179,447
METRO AG		2,394		43,745
MTU Aero Engines AG		691		164,811
Muenchener Rueckversicherungs- Gesellschaft AG (Registered)		2,032		509,336
Puma SE		1,100		73,360
RWE AG		6,890		170,015
SAP SE		13,206		1,810,435
Siemens AG (Registered)		10,269		1,222,579
Siemens Healthineers AG(d)		1,994		84,023
Symrise AG		1,640		157,916
Telefonica Deutschland Holding AG		9,887		27,623
thyssenkrupp AG		5,794		84,597
TUI AG		5,857		57,507
Uniper SE		2,676		81,088
United Internet AG (Registered)		1,635		53,867
Volkswagen AG		432		74,099
Vonovia SE		6,658		318,051
Wirecard AG		1,606		271,119
Zalando SE(b)(d)		1,484		65,707
				15,418,408
Hong Kong — 3.6%
AIA Group Ltd.		162,154		1,751,085
ASM Pacific Technology Ltd.		4,000		41,010
Bank of East Asia Ltd. (The)		16,825		47,050
BGP Holdings plc(e)		253,848		3
CK Asset Holdings Ltd.		34,659		271,521
CK Hutchison Holdings Ltd.		35,659		351,731
CK Infrastructure Holdings Ltd.		9,000		73,353
CLP Holdings Ltd.		22,783		251,064
Dairy Farm International Holdings Ltd.		4,500		32,166
Hang Lung Properties Ltd.		27,000		64,233
Hang Seng Bank Ltd.		10,174		253,236
Henderson Land Development Co. Ltd.		18,836		103,849
HK Electric Investments & HK Electric Investments Ltd.(a)(d)		35,000		35,844
HKT Trust & HKT Ltd.(a)		50,100		79,527
Hong Kong & China Gas Co. Ltd.		136,184		301,907
Hong Kong Exchanges & Clearing Ltd.		15,707		555,087
Hongkong Land Holdings Ltd.		15,600		100,553
Hysan Development Co. Ltd.		8,000		41,337
Jardine Matheson Holdings Ltd.		2,900		182,912
Jardine Strategic Holdings Ltd.		3,000		114,472
Kerry Properties Ltd.		8,500		35,704
Link REIT		28,500		350,704
Melco Resorts & Entertainment Ltd., ADR		3,286		71,372
MTR Corp. Ltd.		20,000		134,717
New World Development Co. Ltd.		81,445		127,394
NWS Holdings Ltd.		20,254		41,658
PCCW Ltd.		56,000		32,316
Power Assets Holdings Ltd.		18,500		133,090
Shangri-La Asia Ltd.		16,960		21,359
Sino Land Co. Ltd.		43,311		72,636
Sun Hung Kai Properties Ltd.		21,000		356,266
Swire Pacific Ltd., Class A		6,500		79,867
Swire Properties Ltd.		15,600		63,066
Techtronic Industries Co. Ltd.		18,500		141,725
Vitasoy International Holdings Ltd.		10,000		48,090
WH Group Ltd.(d)		117,000		118,684
Wharf Holdings Ltd. (The)		15,953		42,281

Security	Shares		Value
Hong Kong (continued)
Wharf Real Estate Investment Co. Ltd.		15,953	$	112,428
Wheelock & Co. Ltd.		11,000		78,987
Yue Yuen Industrial Holdings Ltd.		10,000		27,428
				6,741,712
Ireland — 0.6%
AerCap Holdings NV(b)		1,663		86,493
AIB Group plc		10,827		44,272
Bank of Ireland Group plc		12,910		67,540
CRH plc		10,838		354,264
Flutter Entertainment plc		1,048		78,818
James Hardie Industries plc, CDI		5,870		77,274
Kerry Group plc, Class A		2,109		251,805
Kingspan Group plc		1,962		106,552
Smurfit Kappa Group plc		2,996		90,786
				1,157,804
Israel — 0.6%
Azrieli Group Ltd.		564		37,846
Bank Hapoalim BM		14,196		105,423
Bank LeumiLe-Israel BM		20,033		144,799
Check Point Software Technologies Ltd.(b)		1,680		194,225
CyberArk Software Ltd.(b)		497		63,536
Elbit Systems Ltd.		313		46,700
Israel Chemicals Ltd.		9,360		49,243
Israel Discount Bank Ltd., Class A		15,549		63,400
Mizrahi Tefahot Bank Ltd.		1,858		42,920
Nice Ltd.(b)		814		111,433
Teva Pharmaceutical Industries Ltd., ADR		12,892		118,993
Wix.com Ltd.(b)		587		83,413
				1,061,931
Italy — 2.0%
Assicurazioni Generali SpA		14,635		275,542
Atlantia SpA		6,588		171,791
Davide Campari-Milano SpA		7,722		75,650
Enel SpA		110,010		767,402
Eni SpA		33,876		563,267
Ferrari NV		1,630		264,288
FinecoBank Banca Fineco SpA		6,914		77,129
Intesa Sanpaolo SpA		201,309		430,962
Leonardo SpA		5,381		68,266
Mediobanca Banca di Credito Finanziario SpA		8,248		85,052
Moncler SpA		2,379		101,967
Pirelli & C SpA(b)(d)		5,318		31,391
Poste Italiane SpA(d)		6,946		73,195
Prysmian SpA(c)		3,194		65,994
Recordati SpA		1,390		57,936
Snam SpA		29,981		149,150
Telecom Italia SpA		80,145		41,556
Telecom Italia SpA(b)		151,604		82,769
Terna Rete Elettrica Nazionale SpA		18,707		119,194
UniCredit SpA		27,282		335,809
				3,838,310
Japan — 23.5%
ABC-Mart, Inc.		400		26,087
Acom Co. Ltd.		5,300		19,126
Advantest Corp		2,700		74,333
Aeon Co. Ltd.		8,100		139,397
AEON Financial Service Co. Ltd.		1,500		24,210
Aeon Mall Co. Ltd.		1,400		21,095
AGC, Inc.		2,500		86,605

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Air Water, Inc.		2,000	$	34,337
Aisin Seiki Co. Ltd.		2,200		75,889
Ajinomoto Co., Inc.		6,100		105,827
Alfresa Holdings Corp.		2,500		61,828
Alps Alpine Co. Ltd.		2,500		42,339
Amada Holdings Co. Ltd.		4,500		50,865
ANA Holdings, Inc.		1,500		49,719
Aozora Bank Ltd.		1,600		38,471
Asahi Group Holdings Ltd.		4,800		216,090
Asahi Intecc Co. Ltd.		2,600		64,270
Asahi Kasei Corp.		16,800		179,602
Astellas Pharma, Inc.		25,000		356,269
Bandai Namco Holdings, Inc.		2,700		131,017
Bank of Kyoto Ltd. (The)		700		27,139
Benesse Holdings, Inc.		1,000		23,337
Bridgestone Corp.		7,600		299,812
Brother Industries Ltd.		3,000		56,824
Calbee, Inc.		1,100		29,709
Canon, Inc.(c)		13,700		401,178
Casio Computer Co. Ltd.		2,600		32,417
Central Japan Railway Co.		1,900		380,965
Chiba Bank Ltd. (The)		8,100		39,665
Chubu Electric Power Co., Inc.		8,100		113,783
Chugai Pharmaceutical Co. Ltd.		3,000		196,478
Chugoku Electric Power Co., Inc. (The)(c)		3,700		46,660
Coca-Cola Bottlers Japan Holdings, Inc.		1,800		45,655
Concordia Financial Group Ltd.		14,300		53,370
Credit Saison Co. Ltd.		2,100		24,646
CyberAgent, Inc.		1,300		47,375
Dai Nippon Printing Co. Ltd.		3,200		68,343
Daicel Corp.		3,500		31,192
Daifuku Co. Ltd.		1,300		73,428
Dai-ichi Life Holdings, Inc.		14,800		223,920
Daiichi Sankyo Co. Ltd.		7,513		394,023
Daikin Industries Ltd.		3,400		445,192
Daito Trust Construction Co. Ltd.		1,000		127,531
Daiwa House Industry Co. Ltd.		7,500		219,155
Daiwa House REIT Investment Corp.		23		55,518
Daiwa Securities Group, Inc.		21,500		94,395
Denso Corp.		6,000		252,997
Dentsu, Inc.		2,900		101,423
Disco Corp		400		66,006
East Japan Railway Co.		4,100		383,940
Eisai Co. Ltd.		3,400		192,699
Electric Power Development Co. Ltd.		1,980		45,057
FamilyMart UNY Holdings Co. Ltd.		3,200		76,399
FANUC Corp.		2,600		483,113
Fast Retailing Co. Ltd.		800		484,239
Fuji Electric Co. Ltd.		1,600		55,451
FUJIFILM Holdings Corp.		5,200		264,003
Fujitsu Ltd.		2,600		181,704
Fukuoka Financial Group, Inc.		1,900		34,795
GMO Payment Gateway, Inc.		500		34,554
Hakuhodo DY Holdings, Inc.		3,100		52,361
Hamamatsu Photonics KK		1,900		74,227
Hankyu Hanshin Holdings, Inc.		3,000		107,647
Hikari Tsushin, Inc.		300		65,540
Hino Motors Ltd.		3,400		28,697
Hirose Electric Co. Ltd.		435		48,676
Hisamitsu Pharmaceutical Co., Inc.		800		31,705
Hitachi Chemical Co. Ltd.		1,400		38,158
Hitachi Construction Machinery Co. Ltd.		1,400		36,626
Hitachi High-Technologies Corp.		900		46,268
Hitachi Ltd.		13,200		485,664

Security	Shares		Value
Japan (continued)
Hitachi Metals Ltd.		2,900	$	32,885
Honda Motor Co. Ltd.		22,100		571,479
Hoshizaki Corp.		700		52,200
Hoya Corp.		5,100		391,957
Hulic Co. Ltd.		4,000		32,203
Idemitsu Kosan Co. Ltd.		2,825		85,442
IHI Corp.		2,000		48,350
Iida Group Holdings Co. Ltd.		2,000		32,380
Inpex Corp.		13,600		123,261
Isetan Mitsukoshi Holdings Ltd.		4,480		36,367
Isuzu Motors Ltd.		7,300		83,374
ITOCHU Corp.		18,100		346,742
Itochu Techno-Solutions Corp.		1,300		33,421
J Front Retailing Co. Ltd.		3,100		35,614
Japan Airlines Co. Ltd.		1,500		47,874
Japan Airport Terminal Co. Ltd.		600		25,661
Japan Exchange Group, Inc.		6,800		108,302
Japan Post Bank Co. Ltd.		5,400		54,873
Japan Post Holdings Co. Ltd.		21,800		246,885
Japan Prime Realty Investment Corp.		11		47,674
Japan Real Estate Investment Corp.		17		103,476
Japan Retail Fund Investment Corp.		35		70,791
Japan Tobacco, Inc.		16,000		352,699
JFE Holdings, Inc.		6,500		95,711
JGC Corp.		2,800		38,307
JSR Corp.		2,600		41,185
JTEKT Corp.		2,700		32,830
JXTG Holdings, Inc.		44,550		222,033
Kajima Corp.		6,000		82,527
Kakaku.com, Inc.		1,800		34,813
Kamigumi Co. Ltd.		1,400		33,199
Kaneka Corp.		700		26,392
Kansai Electric Power Co., Inc. (The)		9,400		107,756
Kansai Paint Co. Ltd.		2,400		50,439
Kao Corp.		6,600		503,609
Kawasaki Heavy Industries Ltd.		1,900		44,810
KDDI Corp.		24,000		610,720
Keihan Holdings Co. Ltd.		1,300		56,719
Keikyu Corp.		2,900		50,004
Keio Corp.		1,400		92,265
Keisei Electric Railway Co. Ltd.		1,700		62,007
Keyence Corp.		1,228		757,335
Kikkoman Corp.		1,900		82,852
Kintetsu Group Holdings Co. Ltd.		2,300		110,267
Kirin Holdings Co. Ltd.		11,300		243,995
Kobayashi Pharmaceutical Co. Ltd.		700		50,221
Kobe Steel Ltd.		4,100		26,911
Koito Manufacturing Co. Ltd.		1,400		74,923
Komatsu Ltd.		12,700		308,328
Konami Holdings Corp.		1,200		56,447
Konica Minolta, Inc.		6,000		58,461
Kose Corp.		400		67,513
Kubota Corp.		13,100		218,855
Kuraray Co. Ltd.		4,200		50,313
Kurita Water Industries Ltd.		1,300		32,389
Kyocera Corp.		4,300		281,752
Kyowa Hakko Kirin Co. Ltd.		3,400		61,348
Kyushu Electric Power Co., Inc.		5,000		49,122
Kyushu Railway Co.		2,100		61,263
Lawson, Inc.		700		33,629
LINE Corp.(b)		1,000		28,126
Lion Corp.		3,000		55,966
LIXIL Group Corp.		3,500		55,521
M3, Inc.		5,600		102,765
Makita Corp.		3,000		102,427

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Marubeni Corp.		20,800	$	138,065
Marui Group Co. Ltd.		2,500		50,983
Maruichi Steel Tube Ltd.		700		19,481
Mazda Motor Corp.		7,600		78,671
McDonald’s Holdings Co. Japan Ltd.		900		39,708
Mebuki Financial Group, Inc.		10,980		28,692
Medipal Holdings Corp.		2,300		50,873
MEIJI Holdings Co. Ltd.		1,600		114,402
Mercari, Inc.(b)		1,000		26,639
MINEBEA MITSUMI, Inc.		5,100		86,892
MISUMI Group, Inc.		3,800		95,786
Mitsubishi Chemical Holdings Corp.		17,000		119,022
Mitsubishi Corp.		18,400		486,227
Mitsubishi Electric Corp.		25,100		331,824
Mitsubishi Estate Co. Ltd.		16,300		303,791
Mitsubishi Gas Chemical Co., Inc.		2,200		29,426
Mitsubishi Heavy Industries Ltd.		4,000		174,448
Mitsubishi Materials Corp.		1,400		39,884
Mitsubishi Motors Corp.		8,900		42,748
Mitsubishi Tanabe Pharma Corp.		3,400		37,837
Mitsubishi UFJ Financial Group, Inc.		164,360		782,843
Mitsubishi UFJ Lease & Finance Co. Ltd.		5,400		28,695
Mitsui & Co. Ltd.		22,600		368,897
Mitsui Chemicals, Inc.		2,400		59,627
Mitsui Fudosan Co. Ltd.		11,900		289,220
Mitsui OSK Lines Ltd.		1,500		36,020
Mizuho Financial Group, Inc.		326,400		474,627
MonotaRO Co. Ltd.		1,700		41,644
MS&AD Insurance Group Holdings, Inc.		6,300		200,254
Murata Manufacturing Co. Ltd.		7,200		324,149
Nabtesco Corp.		1,500		41,905
Nagoya Railroad Co. Ltd.		2,400		66,466
NEC Corp.		3,500		138,114
Nexon Co. Ltd.(b)		5,900		86,197
NGK Insulators Ltd.		3,500		51,185
NGK Spark Plug Co. Ltd.		2,100		39,508
NH Foods Ltd.		1,200		51,450
Nidec Corp.		3,000		412,005
Nikon Corp.		4,300		61,144
Nintendo Co. Ltd.		1,500		550,348
Nippon Building Fund, Inc.		18		123,292
Nippon Electric Glass Co. Ltd.		1,100		27,958
Nippon Express Co. Ltd.		1,000		53,300
Nippon Paint Holdings Co. Ltd.		1,900		73,968
Nippon Prologis REIT, Inc.		23		53,127
Nippon Steel Corp.		10,800		185,868
Nippon Telegraph & Telephone Corp.		8,700		405,330
Nippon Yusen KK		2,000		32,189
Nissan Chemical Corp.		1,700		76,803
Nissan Motor Co. Ltd.		32,000		229,199
Nisshin Seifun Group, Inc.		2,600		59,381
Nissin Foods Holdings Co. Ltd.		800		51,601
Nitori Holdings Co. Ltd.		1,100		145,972
Nitto Denko Corp.		2,200		108,892
Nomura Holdings, Inc.		46,000		162,848
Nomura Real Estate Holdings, Inc.		1,700		36,616
Nomura Real Estate Master Fund, Inc.		52		79,970
Nomura Research Institute Ltd.		4,410		70,918
NSK Ltd.		4,800		42,904
NTT Data Corp.		8,400		112,157
NTT DOCOMO, Inc.		17,600		410,642
Obayashi Corp.		8,600		84,957
Obic Co. Ltd.		900		102,281
Odakyu Electric Railway Co. Ltd.		3,900		95,572

Security	Shares		Value
Japan (continued)
Oji Holdings Corp.		11,600	$	67,194
Olympus Corp.		15,600		173,611
Omron Corp.		2,600		136,360
Ono Pharmaceutical Co. Ltd.		5,100		91,697
Oracle Corp.		500		36,608
Oriental Land Co. Ltd.		2,700		334,957
ORIX Corp.		18,300		273,492
Osaka Gas Co. Ltd.		5,000		87,260
Otsuka Corp.		1,400		56,458
Otsuka Holdings Co. Ltd.		5,200		169,919
Pan Pacific International Holdings Corp.		1,600		101,727
Panasonic Corp.		30,300		253,101
Park24 Co. Ltd.		1,500		35,021
PeptiDream, Inc.(b)		1,200		61,634
Persol Holdings Co. Ltd.		2,400		56,583
Pigeon Corp.		1,600		64,521
Pola Orbis Holdings, Inc.		1,200		33,627
Rakuten, Inc.		11,400		136,289
Recruit Holdings Co. Ltd.		15,900		532,362
Renesas Electronics Corp.(b)		11,100		55,220
Resona Holdings, Inc.		27,800		115,970
Ricoh Co. Ltd.		8,900		89,037
Rinnai Corp.		400		25,480
Rohm Co. Ltd.		1,300		87,589
Ryohin Keikaku Co. Ltd.		300		54,355
Sankyo Co. Ltd.		600		21,755
Santen Pharmaceutical Co. Ltd.		4,900		81,463
SBI Holdings, Inc.		2,945		73,149
Secom Co. Ltd.		2,800		241,275
Sega Sammy Holdings, Inc.		2,268		27,612
Seibu Holdings, Inc.		3,000		50,081
Seiko Epson Corp.		3,700		58,624
Sekisui Chemical Co. Ltd.		4,900		73,780
Sekisui House Ltd.		8,300		136,756
Seven & i Holdings Co. Ltd.		10,140		343,557
Seven Bank Ltd.		7,900		20,703
SG Holdings Co. Ltd.		1,300		36,965
Sharp Corp.		2,300		25,371
Shimadzu Corp.		3,000		73,854
Shimamura Co. Ltd.		300		22,460
Shimano, Inc.		1,000		149,010
Shimizu Corp.		7,300		60,781
Shin-Etsu Chemical Co. Ltd.		4,800		449,097
Shinsei Bank Ltd.		2,100		32,681
Shionogi & Co. Ltd.		3,700		213,797
Shiseido Co. Ltd.		5,100		385,747
Shizuoka Bank Ltd. (The)		5,700		42,093
Showa Denko KK		1,800		53,268
SMC Corp.		800		299,900
Softbank Corp.		22,500		292,294
SoftBank Group Corp.		22,000		1,059,637
Sohgo Security Services Co. Ltd.		900		41,600
Sompo Holdings, Inc.		4,400		170,199
Sony Corp.(c)		17,200		903,860
Sony Financial Holdings, Inc.		2,300		55,350
Stanley Electric Co. Ltd.		1,800		44,383
Subaru Corp.		8,200		199,647
SUMCO Corp.		3,100		36,952
Sumitomo Chemical Co. Ltd.		20,000		93,127
Sumitomo Corp.		15,000		227,821
Sumitomo Dainippon Pharma Co. Ltd.		2,100		39,979
Sumitomo Electric Industries Ltd.		10,000		131,626
Sumitomo Heavy Industries Ltd.		1,500		51,822
Sumitomo Metal Mining Co. Ltd.		3,100		92,927
Sumitomo Mitsui Financial Group, Inc.		17,900		634,478

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Sumitomo Mitsui Trust Holdings, Inc.		4,400	$	159,859
Sumitomo Realty & Development Co. Ltd.		4,500		160,986
Sumitomo Rubber Industries Ltd.		2,300		26,639
Sundrug Co. Ltd.		1,000		27,121
Suntory Beverage & Food Ltd.		1,800		78,268
Suzuken Co. Ltd.		1,000		58,764
Suzuki Motor Corp.		4,600		216,412
Sysmex Corp.		2,200		143,924
T&D Holdings, Inc.		7,400		80,538
Taiheiyo Cement Corp.		1,600		48,577
Taisei Corp.		2,800		101,994
Taisho Pharmaceutical Holdings Co. Ltd.		500		38,513
Taiyo Nippon Sanso Corp.		1,700		36,195
Takeda Pharmaceutical Co. Ltd.		19,871		706,868
TDK Corp.		1,800		140,209
Teijin Ltd.		2,400		41,003
Terumo Corp.		8,400		250,937
THK Co. Ltd.		1,600		38,486
Tobu Railway Co. Ltd.		2,500		72,961
Toho Co. Ltd.		1,500		63,906
Toho Gas Co. Ltd.		1,000		36,872
Tohoku Electric Power Co., Inc.		5,700		57,678
Tokio Marine Holdings, Inc.		8,700		436,526
Tokyo Century Corp.		600		25,390
Tokyo Electric Power Co. Holdings, Inc.(b)		19,200		100,283
Tokyo Electron Ltd.		2,100		295,166
Tokyo Gas Co. Ltd.		5,200		122,574
Tokyu Corp.		6,600		117,181
Tokyu Fudosan Holdings Corp.		6,800		37,633
Toppan Printing Co. Ltd.		3,300		50,181
Toray Industries, Inc.		18,400		139,794
Toshiba Corp.		7,400		230,693
Tosoh Corp.		3,500		49,367
TOTO Ltd.		1,900		75,244
Toyo Seikan Group Holdings Ltd.		2,000		39,766
Toyo Suisan Kaisha Ltd.		1,200		49,463
Toyoda Gosei Co. Ltd.		900		17,589
Toyota Industries Corp.		2,100		115,821
Toyota Motor Corp.		30,700		1,905,360
Toyota Tsusho Corp.		2,800		85,055
Trend Micro, Inc.		1,600		71,494
Tsuruha Holdings, Inc.		500		46,372
Unicharm Corp.		5,400		162,802
United Urban Investment Corp.		39		65,370
USS Co. Ltd.		2,900		57,290
Welcia Holdings Co. Ltd.		600		24,479
West Japan Railway Co.		2,200		178,058
Yahoo Japan Corp.		37,900		111,485
Yakult Honsha Co. Ltd.		1,500		88,528
Yamada Denki Co. Ltd.		8,400		37,176
Yamaha Corp.		1,800		85,675
Yamaha Motor Co. Ltd.		3,700		65,948
Yamato Holdings Co. Ltd.		4,100		83,572
Yamazaki Baking Co. Ltd.		1,600		24,225
Yaskawa Electric Corp.		3,200		109,430
Yokogawa Electric Corp.		3,000		59,048
Yokohama Rubber Co. Ltd. (The)		1,600		29,459
ZOZO, Inc.		2,700		50,671
				44,376,873

Security	Shares		Value
Luxembourg — 0.2%
ArcelorMittal		9,140	$	163,496
Eurofins Scientific SE(c)		152		67,072
RTL Group SA		515		26,359
SES SA, FDR		4,843		75,721
Tenaris SA		6,279		82,354
				415,002
Macau — 0.3%
Galaxy Entertainment Group Ltd.		32,000		215,264
MGM China Holdings Ltd.		12,800		21,745
Sands China Ltd.		32,400		154,777
SJM Holdings Ltd.		26,000		29,565
Wynn Macau Ltd.		20,800		46,564
				467,915
Mexico — 0.0%
Fresnillo plc		2,939		32,528
Netherlands — 4.7%
ABN AMRO Group NV, CVA(d)		5,624		120,340
Adyen NV(b)(d)		139		107,223
Aegon NV		23,684		117,649
Akzo Nobel NV		3,079		289,334
ASML Holding NV		5,686		1,183,199
EXOR NV		1,442		101,024
Heineken Holding NV		1,532		160,470
Heineken NV		3,447		384,177
ING Groep NV		51,896		601,150
Koninklijke Ahold Delhaize NV		15,911		357,197
Koninklijke DSM NV		2,420		298,590
Koninklijke KPN NV		44,704		137,277
Koninklijke Philips NV		12,431		540,450
Koninklijke Vopak NV		935		43,057
NN Group NV		4,004		160,956
NXP Semiconductors NV		3,947		385,267
Randstad NV		1,584		86,934
Royal Dutch Shell plc, Class A		59,181		1,931,526
Royal Dutch Shell plc, Class B		50,085		1,641,120
Wolters Kluwer NV		3,735		271,726
				8,918,666
New Zealand — 0.2%
a2 Milk Co. Ltd.(b)		9,707		95,954
Auckland International Airport Ltd.		12,791		84,680
Fisher & Paykel Healthcare Corp. Ltd.		7,597		79,028
Fletcher Building Ltd.		11,346		36,971
Meridian Energy Ltd.		17,039		54,443
Ryman Healthcare Ltd.		5,318		42,001
Spark New Zealand Ltd.		24,403		65,653
				458,730
Norway — 0.7%
Aker BP ASA		1,436		41,416
DNB ASA		12,937		241,064
Equinor ASA		13,379		265,404
Gjensidige Forsikring ASA		2,659		53,593
Mowi ASA		5,540		129,630
Norsk Hydro ASA		17,881		64,045
Orkla ASA		10,838		96,186
Schibsted ASA, Class B		1,303		33,971
Telenor ASA		9,912		210,592
Yara International ASA		2,361		114,699
				1,250,600
Portugal — 0.2%
EDP - Energias de Portugal SA		34,032		129,336
Galp Energia SGPS SA		6,665		102,503

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Portugal (continued)
Jeronimo Martins SGPS SA		3,347	$	53,951
				285,790
Russia — 0.0%
Evraz plc		6,748		57,138
Singapore — 1.3%
Ascendas REIT		32,962		76,059
CapitaLand Commercial Trust		34,838		55,905
CapitaLand Ltd.		34,092		89,022
CapitaLand Mall Trust		33,000		64,177
City Developments Ltd.		5,431		38,044
ComfortDelGro Corp. Ltd.		28,800		56,638
DBS Group Holdings Ltd.		23,867		458,486
Genting Singapore Ltd.		80,400		54,701
Golden Agri-Resources Ltd.		85,302		18,314
Jardine Cycle & Carriage Ltd.		1,283		34,381
Keppel Corp. Ltd.		19,302		95,108
Oversea-Chinese Banking Corp. Ltd.		42,835		361,322
SATS Ltd.		9,000		34,725
Sembcorp Industries Ltd.		13,100		23,349
Singapore Airlines Ltd.		7,200		49,337
Singapore Exchange Ltd.		10,700		62,686
Singapore Press Holdings Ltd.		21,330		38,474
Singapore Technologies Engineering Ltd.		20,781		63,648
Singapore Telecommunications Ltd.		112,850		292,091
Suntec REIT		24,100		34,574
United Overseas Bank Ltd.		17,859		345,253
UOL Group Ltd.		5,646		31,539
Venture Corp. Ltd.		3,600		43,465
Wilmar International Ltd.		25,500		69,805
				2,491,103
South Africa — 0.2%
Anglo American plc(c)		14,035		400,958
Investec plc		8,906		57,895
				458,853
Spain — 2.9%
ACS Actividades de Construccion y Servicios SA		3,463		138,551
Aena SME SA(d)		900		178,382
Amadeus IT Group SA(c)		5,939		470,639
Banco Bilbao Vizcaya Argentaria SA		88,661		494,523
Banco de Sabadell SA		74,815		77,548
Banco Santander SA		218,241		1,011,471
Bankia SA		16,407		38,753
Bankinter SA		8,963		61,782
CaixaBank SA		47,717		136,853
Cellnex Telecom SA(d)		2,594		95,961
Enagas SA		3,015		80,460
Endesa SA(c)		4,223		108,618
Ferrovial SA		6,685		171,127
Grifols SA		3,966		117,368
Iberdrola SA		78,390		780,465
Industria de Diseno Textil SA		14,821		445,924
Mapfre SA		14,331		41,908
Naturgy Energy Group SA		4,013		110,594
Red Electrica Corp. SA		5,756		119,887
Repsol SA		18,613		292,091
Siemens Gamesa Renewable Energy SA(b)		3,170		52,688
Telefonica SA		63,353		520,971
				5,546,564

Security	Shares		Value
Sweden — 2.4%
Alfa Laval AB		3,904	$	85,312
Assa Abloy AB, Class B		13,323		300,603
Atlas Copco AB, Class A		9,266		296,935
Atlas Copco AB, Class B		5,188		149,157
Boliden AB(b)		3,637		93,194
Electrolux AB		2,964		75,978
Epiroc AB, Class A(b)		8,928		93,024
Epiroc AB, Class B(b)		5,188		51,462
Essity AB, Class B		8,062		248,015
Hennes & Mauritz AB, Class B		11,653		207,029
Hexagon AB, Class B		3,437		191,110
Husqvarna AB, Class B		5,551		51,982
ICA Gruppen AB		1,070		45,998
Industrivarden AB, Class C		2,221		49,281
Investor AB, Class B		6,084		292,574
Kinnevik AB, Class B		3,118		81,161
L E Lundbergforetagen AB, Class B		1,010		37,852
Lundin Petroleum AB		2,489		77,549
Sandvik AB		15,561		285,950
Securitas AB, Class B		4,163		73,071
Skandinaviska Enskilda Banken AB, Class A		21,639		200,354
Skanska AB, Class B		4,522		81,708
SKF AB, Class B		5,029		92,580
Svenska Handelsbanken AB, Class A		20,311		200,443
Swedbank AB, Class A		12,040		181,254
Swedish Match AB		2,339		98,889
Tele2 AB, Class B		6,403		93,517
Telefonaktiebolaget LM Ericsson, Class B		40,984		389,009
Telia Co. AB		37,422		165,904
Volvo AB, Class B		20,751		329,727
				4,620,622
Switzerland — 9.6%
ABB Ltd. (Registered)		24,927		499,741
Adecco Group AG (Registered)		2,162		129,931
Alcon, Inc.(b)		5,803		358,333
Baloise Holding AG (Registered)		649		114,942
Barry Callebaut AG (Registered)		29		58,204
Chocoladefabriken Lindt & Spruengli AG		14		101,895
Chocoladefabriken Lindt & Spruengli AG (Registered)		2		162,672
Cie Financiere Richemont SA (Registered)		6,973		592,541
Clariant AG (Registered)(b)		2,648		53,874
Coca-Cola HBC AG(b)		2,691		101,653
Credit Suisse Group AG (Registered)(b)		34,613		414,289
Dufry AG (Registered)(b)(c)		430		36,439
EMS-Chemie Holding AG (Registered)		109		70,757
Geberit AG (Registered)		492		229,974
Givaudan SA (Registered)(b)		123		347,417
Glencore plc(b)		151,024		522,683
Julius Baer Group Ltd.(b)		2,976		132,593
Kuehne + Nagel International AG (Registered)		718		106,650
LafargeHolcim Ltd. (Registered)(b)(c)		6,477		316,703
Lonza Group AG (Registered)(b)		1,019		344,007
Nestle SA (Registered)		41,114		4,256,213
Novartis AG (Registered)		29,019		2,649,196
Pargesa Holding SA, Class BR		513		39,565
Partners Group Holding AG		231		181,663
Roche Holding AG		9,385		2,638,948
Schindler Holding AG		541		120,588

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Switzerland (continued)
Schindler Holding AG (Registered)		268	$	58,588
SGS SA (Registered)		71		180,969
Sika AG (Registered)		1,722		294,191
Sonova Holding AG (Registered)		738		167,968
STMicroelectronics NV		9,080		161,044
Straumann Holding AG (Registered)		137		121,064
Swatch Group AG (The)		410		117,532
Swatch Group AG (The) (Registered)		742		40,211
Swiss Life Holding AG (Registered)(b)		455		225,583
Swiss Prime Site AG (Registered)(b)		1,010		88,209
Swiss Re AG		4,106		417,241
Swisscom AG (Registered)		344		172,788
Temenos AG (Registered)(b)		803		143,780
UBS Group AG (Registered)(b)		52,134		619,625
Vifor Pharma AG		605		87,446
Zurich Insurance Group AG		2,019		702,510
				18,180,220
United Arab Emirates — 0.0%
NMC Health plc		1,384		42,344
United Kingdom — 13.8%
3i Group plc		12,977		183,598
Admiral Group plc		2,678		75,094
Ashtead Group plc		6,516		186,692
Associated British Foods plc		4,737		148,293
AstraZeneca plc		16,908		1,382,258
Auto Trader Group plc(d)		12,604		87,784
Aviva plc		52,775		279,526
BAE Systems plc		43,651		274,342
Barclays plc		227,326		432,386
Barratt Developments plc		13,463		97,970
Berkeley Group Holdings plc		1,695		80,332
BP plc		268,484		1,870,466
British American Tobacco plc		30,753		1,073,770
British Land Co. plc (The)		12,415		84,969
BT Group plc		112,599		281,535
Bunzl plc		4,467		117,866
Burberry Group plc		5,561		131,808
Centrica plc		74,586		83,146
CNH Industrial NV		13,491		138,596
Coca-Cola European Partners plc(c)		2,902		163,963
Compass Group plc		21,108		505,996
Croda International plc		1,708		111,099
DCC plc		1,319		117,670
Diageo plc		32,623		1,404,103
Direct Line Insurance Group plc		18,282		77,064
easyJet plc		2,112		25,571
Experian plc		12,247		370,956
Fiat Chrysler Automobiles NV(b)		14,876		206,456
G4S plc(c)		20,630		54,579
GlaxoSmithKline plc		66,627		1,335,528
GVC Holdings plc		7,296		60,480
Halma plc(c)		5,071		130,237
Hargreaves Lansdown plc		3,784		92,455
HSBC Holdings plc		267,804		2,235,163
Imperial Brands plc		12,697		297,937
Informa plc		16,631		176,369
InterContinental Hotels Group plc		2,287		150,416
Intertek Group plc		2,146		150,027
ITV plc		48,169		66,061
J Sainsbury plc		23,366		58,064
John Wood Group plc		9,011		51,885
Johnson Matthey plc		2,573		108,780
Kingfisher plc		28,521		77,739

Security	Shares		Value
United Kingdom (continued)
Land Securities Group plc		9,924	$	105,122
Legal & General Group plc		79,311		271,721
Lloyds Banking Group plc		958,314		688,281
London Stock Exchange Group plc		4,178		291,142
Marks & Spencer Group plc		25,923		69,311
Meggitt plc		10,324		68,783
Melrose Industries plc		64,402		148,045
Merlin Entertainments plc(d)		9,513		54,378
Micro Focus International plc		4,812		126,556
Mondi plc		4,883		111,138
National Grid plc		45,603		484,982
Next plc		1,872		131,090
Ocado Group plc(b)		6,072		90,011
Pearson plc		10,380		107,994
Persimmon plc		4,139		105,151
Prudential plc		34,622		755,832
Reckitt Benckiser Group plc		9,451		746,201
RELX plc		26,352		639,154
Rentokil Initial plc		24,703		124,718
Rolls-Royce Holdings plc(b)		23,013		245,847
Royal Bank of Scotland Group plc		64,051		178,645
RSA Insurance Group plc		13,648		100,020
Sage Group plc (The)		14,406		146,921
Schroders plc		1,653		64,125
Segro plc		14,557		135,155
Severn Trent plc		3,146		81,843
Smith & Nephew plc		11,624		252,411
Smiths Group plc		5,262		104,693
Spirax-Sarco Engineering plc		983		114,756
SSE plc		13,551		193,147
St. James’s Place plc		7,035		98,226
Standard Chartered plc		37,414		339,415
Standard Life Aberdeen plc		31,196		116,722
Taylor Wimpey plc		43,564		87,418
Tesco plc		133,153		383,837
Unilever NV, CVA		19,469		1,182,901
Unilever plc		14,921		926,225
United Utilities Group plc		9,066		90,242
Vodafone Group plc		360,816		591,400
Weir Group plc (The)		3,203		63,023
Whitbread plc		2,441		143,623
Wm Morrison Supermarkets plc		29,757		76,168
WPP plc		17,448		219,783
				26,095,185
United States — 0.2%
Carnival plc		2,337		102,847
Ferguson plc		3,075		218,909
QIAGEN NV(b)		3,012		122,564
				444,320
Total Common Stocks — 98.3% (Cost: $188,737,148)				186,005,066
Preferred Securities — 0.5%
Preferred Stocks — 0.5%
Germany — 0.5%
Bayerische Motoren Werke AG (Preference)		733		45,418
Fuchs Petrolub SE (Preference)		924		36,276
Henkel AG & Co. KGaA (Preference)		2,360		230,854
Porsche Automobil Holding SE (Preference)		2,036		131,901
Sartorius AG (Preference)		473		97,005

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund     (Percentages shown are based on Net Assets)

Security	Shares		Value
Germany (continued)
Volkswagen AG (Preference)		2,471	$	416,209
				957,663
United Kingdom — 0.0%
Rolls-Royce Holdings plc (Preference)(b)(e)		1,633,923		2,075
Total Preferred Stocks — 0.5% (Cost: $711,210)				959,738
Rights — 0.0%
Spain — 0.0%(b)
ACS Actividades de Construccion y Servicios SA		3,463		5,434
Repsol SA		18,613		10,324
Total Rights — 0.0% (Cost: $16,073)				15,758
Total Long-Term Investments — 98.8% (Cost: $189,464,431)				186,980,562

Security	Shares		Value
Short-Term Securities — 1.6%(f)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%		230,876	$	230,876
SL Liquidity Series, LLC, Money Market Series, 2.55%(g)		2,809,413		2,810,256
Total Short-Term Securities — 1.6% (Cost: $3,040,969)				3,041,132
Total Investments — 100.4% (Cost: $192,505,400)				190,021,694
Liabilities in Excess of Other Assets — (0.4)%				(850,154)
Net Assets — 100.0%			$	189,171,540

^(a)  A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

^(b)  Non-income producing security.

^(c)  Security, or a portion of the security, is on loan.

^(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(e)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(f)  Annualized7-day yield as of period end.

^(g)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity		Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		35,389		195,487		230,876	$	230,876	$	656		$	—		$	—
SL Liquidity Series, LLC, Money Market Series		—		2,809,413		2,809,413		2,810,256		12,749	(b)		(21	)		163
							$	3,041,132	$	13,405		$	(21	)	$	163

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Nikkei 225 Index		3		09/12/19	$	295	$	999
SPI 200 Index		1		09/19/19		115		1,569
EURO STOXX 50 Index		15		09/20/19		591		13,057
FTSE 100 Index		3		09/20/19		281		3,422
							$	19,047

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency     Exchange Contracts		Interest Rate       Contracts		Other       Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	19,047	$	—	$	—	$	—	$	19,047

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency     Exchange Contracts		Interest Rate       Contracts		Other       Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	102,201	$	—	$	—	$	—	$	102,201
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		54,326		—		—		—		54,326

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	1,460,238

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock International Index V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Australia	$	—	$	14,900,861	$	—	$	14,900,861
Austria		—		421,742		—		421,742
Belgium		—		1,811,512		—		1,811,512
Chile		—		61,931		—		61,931
China		54,662		228,835		—		283,497
Colombia		—		49,480		—		49,480
Denmark		197,290		3,001,389		—		3,198,679
Finland		92,268		2,055,799		—		2,148,067
France		1,267,840		19,500,839		—		20,768,679
Germany		297,550		15,120,858		—		15,418,408
Hong Kong		186,743		6,554,966		3		6,741,712
Ireland		567,940		589,864		—		1,157,804
Israel		460,167		601,764		—		1,061,931
Italy		—		3,838,310		—		3,838,310
Japan		—		44,376,873		—		44,376,873
Luxembourg		75,721		339,281		—		415,002
Macau		—		467,915		—		467,915
Mexico		—		32,528		—		32,528
Netherlands		385,267		8,533,399		—		8,918,666
New Zealand		—		458,730		—		458,730
Norway		33,971		1,216,629		—		1,250,600
Portugal		—		285,790		—		285,790
Russia		—		57,138		—		57,138
Singapore		—		2,491,103		—		2,491,103
South Africa		—		458,853		—		458,853
Spain		—		5,546,564		—		5,546,564
Sweden		45,998		4,574,624		—		4,620,622
Switzerland		622,900		17,557,320		—		18,180,220
United Arab Emirates		—		42,344		—		42,344
United Kingdom		163,963		25,931,222		—		26,095,185
United States		—		444,320		—		444,320
Preferred Securities:
Germany		—		957,663		—		957,663
United Kingdom		—		—		2,075		2,075
Rights (a)		15,758		—		—		15,758
Short-Term Securities		230,876		—		—		230,876
Subtotal	$	4,698,914	$	182,510,446	$	2,078	$	187,211,438
Investments valued at NAV (b)								2,810,256
Total Investments							$	190,021,694
Derivative Financial Instruments (c)
Assets:
Equity contracts	$	19,047	$	—	$	—	$	19,047

^(a)  See above Schedule of Investments for values in each country.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 15

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock International Index V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $2,680,625) (cost — $189,464,431)	$	186,980,562
Investments at value — affiliated (cost — $3,040,969)		3,041,132
Cash pledged for futures contracts		75,850
Foreign currency at value (cost — $509,234)		513,340
Receivables:
Securities lending income — affiliated		2,537
Dividends — affiliated		141
Dividends — unaffiliated		1,512,848
Variation margin on futures contracts		10,619
Deferred offering costs		12,900
Prepaid expenses		1,568
Other assets		62,127
Total assets		192,213,624
LIABILITIES
Cash collateral on securities loaned at value		2,810,114
Payables:
Accounting services fees		13,678
Capital shares redeemed		56,334
Custodian fees		14,434
Investment advisory fees		15,082
Offering costs		33,914
Directors’ and Officer’s fees		5,604
Pricing fees		13,353
Professional fees		27,849
Transfer agent fees		41,112
Variation margin on futures contracts		1,617
Other accrued expenses		8,993
Total liabilities		3,042,084
NET ASSETS	$	189,171,540
NET ASSETS CONSIST OF
Paid-in capital	$	188,519,935
Accumulated earnings		651,605
NET ASSETS	$	189,171,540
NET ASSET VALUE
Class I — Based on net assets of $189,171,540 and 20,791,817 shares outstanding, 100 million shares authorized, $0.10 par value	$	9.10

See notes to financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock International Index V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	656
Dividends — unaffiliated		4,796,858
Securities lending income — affiliated — net		12,749
Foreign taxes withheld		(439,535)
Total investment income		4,370,728
EXPENSES
Investment advisory		72,770
Transfer agent		48,487
Professional		34,062
Accounting services		26,932
Printing		24,855
Custodian		18,419
Offering		17,544
Pricing		13,354
Directors and Officer		8,982
Registration		188
Miscellaneous		606
Total expenses		266,199
Less:
Fees waived and/or reimbursed by the Manager		(669)
Transfer agent fees waived and/or reimbursed		(20,395)
Total expenses after fees waived and/or reimbursed		245,135
Net investment income		4,125,593
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		(21)
Investments — unaffiliated		114,207
Foreign currency transactions		35,972
Futures contracts		102,201
		252,359
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		163
Investments — unaffiliated		19,179,295
Foreign currency translations		1,620
Futures contracts		54,326
		19,235,404
Net realized and unrealized gain		19,487,763
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,613,356

See notes to financial statements.

FINANCIAL STATEMENTS 17

Statements of Changes in Net Assets

	BlackRock International Index V.I. Fund
	Six Months Ended 06/30/19 (unaudited)	Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$         4,125,593	$         8,724,580
Net realized gain	252,359	52,019,023
Net change in unrealized appreciation (depreciation)	19,235,404	(88,975,813)
Net increase (decrease) in net assets resulting from operations	23,613,356	(28,232,210)
DISTRIBUTIONS TO SHAREHOLDERS (a)
Decrease in net assets resulting from distributions to shareholders	—	(60,158,843)
CAPITAL SHARE TRANSACTIONS
Shares sold	1,149,224	3,757,710
Shares issued in reinvestment of distributions	—	60,158,359
Shares redeemed	(6,220,182)	(139,137,066)
Net decrease in net assets derived from capital share transactions	(5,070,958)	(75,220,997)
NET ASSETS
Total increase (decrease) in net assets	18,542,398	(163,612,050)
Beginning of period	170,629,142	334,241,192
End of period	$     189,171,540	$       170,629,142

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock International Index V.I. Fund(a)
	Class I
	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.98	$	14.28		$	11.84		$	12.21		$	12.76		$	14.01
Net investment income (b)		0.20		0.42			0.36			0.34			0.31			0.44
Net realized and unrealized gain (loss)		0.92		(2.40	)		2.65			(0.24	)		(0.45	)		(1.26)
Net increase (decrease) from investment operations		1.12		(1.98	)		3.01			0.10			(0.14)			(0.82)
Distributions (c)
From net investment income		—		(0.64	)		(0.40	)		(0.35	)		(0.30	)		(0.43)
From net realized gain		—		(3.68	)		(0.17	)		(0.12	)		(0.11	)		—
Total distributions		—		(4.32	)		(0.57	)		(0.47	)		(0.41	)		(0.43)
Net asset value, end of period	$	9.10	$	7.98		$	14.28		$	11.84		$	12.21		$	12.76
Total Return (d)
Based on net asset value		14.04%(e)		(13.70)%			25.40%			0.90%			(1.16)%			(5.88)%
Ratios to Average Net Assets
Total expenses		0.29%(f)		0.31%(g)			0.26%			0.42%			0.68%			0.64%
Total expenses after fees waived and/or reimbursed		0.27%(f)		0.24%(g)			0.26%(h)			0.42%(h)			0.68%(h)			0.64%(h)
Net investment income		4.43%(f)		3.00%			2.69%			2.83%			2.31%			3.12%
Supplemental Data
Net assets, end of period (000)	$	189,172	$	170,629		$	334,241		$	275,529		$	280,934		$	290,761
Portfolio turnover rate		1%		4%			4%			3%			3%			3%

^(a)  On October 29, 2018, the Fund acquired all of the assets and assumed certain stated liabilities of the International Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e) Aggregate total return.

^(f)  Annualized.

^(g)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.27% and 0.24%, respectively.

^(h)  The expense ratio includes the effect of expense reimbursements that are less than 0.01%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 19

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock International Index V.I. Fund (the “Fund”). The Fund is classified as diversified.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganization: On October 29, 2018, the International Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, reorganized into the Fund (the “Reorganization”) pursuant to an Agreement and Plan of Reorganization. The Reorganization was approved by shareholders of the Predecessor Fund.

The Predecessor Fund is the performance and accounting survivor of the Reorganization, meaning that the Fund assumed the performance and financial history of the Predecessor Fund upon completion of the Reorganization. The Reorganization wastax-free; accordingly, the Predecessor Fund’s shareholders became shareholders of the Fund without realizing any gain or loss for federal income tax purposes.

As a result, the Fund acquired all of the assets and assumed certain stated liabilities of the Predecessor Fund in exchange for an equal aggregate value of newly-issued shares of the Fund. Each shareholder of the Predecessor Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Predecessor Fund shares, as determined at the close of business on October 26, 2018.

The Reorganization was accomplished by atax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

Predecessor Fund	Shares Prior to Reorganization		Conversion Ratio		Shares Post-         Reorganization
International Equity Index Fund, a series of State Farm Variable Product Trust		14,050,452		1		14,050,452

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the Predecessor Fund were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Prior to the Reorganization, the Fund had not yet commenced operations and had no assets or liabilities. The Predecessor Fund’s net assets, fair value and cost of investments prior to the Reorganization were as follows:

Predecessor Fund	Net Assets		Fair Value of Investments		Cost Value             of Investments
International Equity Index Fund, a series of State Farm Variable Product Trust		$177,944,330		$174,789,237		$190,647,069

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Offering Costs: Offering costs are amortized over a12-month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund are charged to the Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements  (unaudited) (continued)

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty		Securities Loaned at Value		Cash Collateral Received	(a)		Net Amount
Citigroup Global Markets, Inc.	$	843,062	$	(843,062	)	$	—
Goldman Sachs & Co.		1,078,337		(1,078,337	)		—
Jefferies & Co. LLC		713,033		(713,033	)		—
JP Morgan Securities LLC		46,193		(46,193	)		—
	$	2,680,625	$	(2,680,625	)	$	—

^(a)  Cash collateral with a value of $ 2,810,114 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

NOTESTO FINANCIAL STATEMENTS 23

Notes to Financial Statements  (unaudited) (continued)

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to 0.08% of the average daily value of the Fund’s net assets.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

Expense Limitations, Waivers, Reimbursements and Recoupments: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $22.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”) or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived by the Manager pursuant to this arrangement.

The Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitation as a percentage of average daily net assets is 0.27%. The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived and/or reimbursed $647 and $20,395 which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed, respectively, in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to 0.05% of the average daily value of the Fund’s net assets. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed pursuant to this arrangement.

With respect to the contractual expense limitation, if during the Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver or contractual operational and recordkeeping services waiver described above or any voluntary waivers that may be in effect from time to time.

As of June 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring December 31,
	2020	2021
Fund Level	$      32,290	$          647
Class I	15,533	20,395

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $2,759 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the six months ended June 30, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule17a-7 under the 1940 Act were as follows:

Purchases	$	273,929
Sales		326,799
Net Realized Gain		12,259

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $2,576,971 and $3,741,027, respectively.

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	193,578,186
Gross unrealized appreciation	$	56,058,898
Gross unrealized depreciation		(59,596,343)
Net unrealized depreciation	$	(3,537,445)

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended

NOTESTO FINANCIAL STATEMENTS 25

Notes to Financial Statements  (unaudited) (continued)

or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: The Fund invests a substantial amount of its assets in issuers located in a single country or a limited number of countries. When the Fund concentrates its investments in this manner, it assumes the risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

The Fund invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Fund invests a significant portion of its assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Fund’s investments.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares were as follows:

	Six Months Ended 06/30/19				Year Ended 12/31/18(a)
	Shares		Amount		Shares		Amount
Class I
Shares sold		132,220	$	1,149,224		280,077	$	3,757,710
Shares issued in reinvestment of distributions		—		—		7,541,790		60,158,359
Shares redeemed		(717,594)		(6,220,182)		(9,845,024)		(139,137,066)
Net decrease		(585,374)	$	(5,070,958)		(2,023,157)	$	(75,220,997)

^(a)  Includes the activity of the Predecessor Fund prior to the Reorganization on October 29, 2018. Excludes the exchange of shares of the Predecessor Fund for shares of the Fund during the Reorganization. The Predecessor Fund is the performance and accounting survivor of the Reorganization.

As of June 30, 2019, BlackRock Financial Management, Inc., an affiliate of the Fund, owned 790 Class I Shares of BlackRock International Index V.I. Fund.

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 27

Glossary of Terms Used in this Report

Portfolio Abbreviations

ADR	American Depositary Receipts
CDI	Crest Depository Interests
CVA	Certification Van Aandelon (Dutch Certificate)
FDR	Fiduciary Depositary Receipt
REIT	Real Estate Investment Trust
SCA	Svenska Cellulosa Aktiebolaget
SDR	Swedish Depositary Receipts

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Large Cap Focus Growth V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019  BlackRock Large Cap Focus Growth V.I. Fund

Investment Objective

BlackRock Large Cap Focus Growth V.I. Fund’s (the “Fund”) investment objective is to seek long-term capital growth.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund outperformed its benchmark, the Russell 1000^® Growth Index.

What factors influenced performance?

The largest contributor to relative performance was stock selection in the consumer discretionary sector, led by the internet & direct marketing retailsub-sector where an overweight to Amazon.com Inc. and anout-of-benchmark position in Braziliane-commerce giant Mercado Libre, Inc. drove results. In industrials, stock selection in the professional services and industrial conglomeratessub-sectors contributed strongly to Fund results. Notably, an overweight position in CoStar Group Inc. within professional services and not owning 3M Company in industrial conglomerates aided relative returns. Lastly, within information technology (“IT”) an overweight to the software industry, specifically to ServiceNow Inc., proved advantageous.

The largest detractor to Fund performance over the period was positioning with respect to the financials sector. An absence of owning any companies in the insurancesub-sector detracted from Fund performance as several insurance names, such as Progressive Corp. and AON PLC, outperformed. Communication services was also a key detractor, led by stock selection in interactive media & services, particularly an underweight to Facebook Inc., which outperformed during the period, and anout-of-benchmark position in Chinese internet and entertainment conglomerate Tencent Holdings Ltd., which underperformed. Other notable detractors during the period included overweight positions in managed care enterprises Centene Corp. and United HealthGroup Inc., and an underweight position in Apple Inc.

Describe recent portfolio activity.

During the period, the Fund increased its weighting in the consumer discretionary sector by investing in the automobile industry. Exposure to the materials and industrials sectors was also increased. In contrast, the Fund lowered its exposure to the health care sector by decreasing its weight in health care providers and services. Additionally, exposure to the communication services and financials sectors was decreased.

Describe portfolio positioning at period end.

As of period end, the Fund’s largest overweight position relative to the Russell 1000^® Growth Index was to the consumer discretionary sector, primarily to the internet and direct marketing retail industry. The Fund was also overweight to materials and financials. Conversely, the Fund was underweight in IT, having liquidated its holdings in the technology hardware, storages and peripherals industry. Additionally, the Fund remained underweight in the consumer staples and industrials sectors.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Large Cap Focus Growth V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		24.70	%		11.48	%		14.75	%		16.72	%
Class III(b)(c)		24.60			11.24			14.46			16.43
Russell 1000®Growth Index(d)		21.49			11.56			13.39			16.28

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in large cap equity securities and derivatives that have similar economic characteristics to such securities. The Fund’s total returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Large Cap Growth V.I. Fund”.

^(d)  An unmanaged index that measures the performance of the large cap growth segment of the U.S. equity universe and consists of those Russell 1000^® securities with higherprice-to-book ratios and higher forecasted growth values.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,247.00	$	4.62	$	1,000.00	$	1,020.68	$	4.16		0.83	%
Class III		1,000.00		1,246.00		6.01		1,000.00		1,019.44		5.41		1.08

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

SECTOR ALLOCATION

Sector	Percent of Net Assets
Information Technology		34	%
Consumer Discretionary		20
Health Care		13
Communication Services		12
Industrials		8
Financials		5
Consumer Staples		3
Materials		3
Real Estate		2
Short-Term Securities		3
Liabilities in Excess of Other Assets		(3	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited)  June 30, 2019 BlackRock Large Cap Focus Growth (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 99.9%
Aerospace & Defense — 2.9%
Boeing Co. (The)		15,351	$	5,587,918
Automobiles — 2.3%
Ferrari NV(a)		26,975		4,354,304
Beverages — 2.9%
Constellation Brands, Inc., Class A		27,980		5,510,381
Capital Markets �� 4.6%
CME Group, Inc.		22,710		4,408,238
S&P Global, Inc.		19,001		4,328,238
				8,736,476
Chemicals — 1.1%
Sherwin-Williams Co. (The)		4,741		2,172,753
Construction Materials — 1.8%
Vulcan Materials Co.		25,215		3,462,272
Entertainment — 3.1%
Netflix, Inc.(b)		16,023		5,885,568
Equity Real Estate Investment Trusts (REITs) — 2.0%
SBA Communications Corp.(b)		17,237		3,875,567
Health Care Equipment & Supplies — 6.9%(b)
Align Technology, Inc.		18,020		4,932,074
Boston Scientific Corp.		98,135		4,217,842
Intuitive Surgical, Inc.		7,372		3,866,983
				13,016,899
Health Care Providers & Services — 3.3%
UnitedHealth Group, Inc.		25,909		6,322,055
Hotels, Restaurants & Leisure — 2.0%
Domino’s Pizza, Inc.		13,399		3,728,674
Interactive Media & Services — 9.3%
Alphabet, Inc., Class A(b)		4,709		5,098,905
Facebook, Inc., Class A(b)		18,470		3,564,710
IAC/InterActiveCorp(a)(b)		20,278		4,411,073
Tencent Holdings Ltd.		101,946		4,611,978
				17,686,666
Internet & Direct Marketing Retail — 15.4%
Alibaba Group Holding Ltd., ADR(b)		22,205		3,762,638
Amazon.com, Inc.(b)		10,797		20,445,523
MercadoLibre, Inc.		8,195		5,013,455
				29,221,616
IT Services — 10.9%
Mastercard, Inc., Class A		31,761		8,401,738
PayPal Holdings, Inc.(b)		30,100		3,445,246
Visa, Inc., Class A		50,755		8,808,530
				20,655,514
Life Sciences Tools & Services — 1.9%
Illumina, Inc.(b)		9,731		3,582,468
Pharmaceuticals — 1.3%
Zoetis, Inc.		21,327		2,420,401
Professional Services — 3.4%
CoStar Group, Inc.(b)		11,739		6,504,110
Road & Rail — 1.8%
Union Pacific Corp.		20,695		3,499,731

Security	Shares			Value
Semiconductors & Semiconductor Equipment — 2.1%
ASML Holding NV (Registered), NYRS		18,743		$	3,897,232
Software — 20.9%
Adobe, Inc.(b)		17,004			5,010,229
Autodesk, Inc.(b)		16,598			2,703,814
Coupa Software, Inc.(b)		16,919			2,142,115
Fair Isaac Corp.(b)		7,312			2,296,114
Intuit, Inc.		18,768			4,904,641
Microsoft Corp.		83,714			11,214,328
salesforce.com, Inc.(b)		43,732			6,635,456
ServiceNow, Inc.(b)		17,100			4,695,147
					39,601,844
Total Common Stocks — 99.9% (Cost: $138,421,958)					189,722,449
Total Long-Term Investments — 99.9% (Cost: $138,421,958)					189,722,449
Short-Term Securities — 3.2%
Money Market Funds — 3.2%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,   2.26%		513,465			513,465
SL Liquidity Series, LLC, Money Market Series,   2.55%(d)		5,534,977			5,536,638
Total Money Market Funds — 3.2% (Cost: $6,050,103)					6,050,103
	Par (000)
Time Deposits — 0.0%
Brown Brothers Harriman & Co.:
0.52%, 07/01/19 AUD		—	(e)		230
2.10%, 07/02/19 HKD		—	(e)		1
Total Time Deposits — 0.0% (Cost: $231)					231
Total Short-Term Securities — 3.2% (Cost: $6,050,334)					6,050,334
Total Investments — 103.1% (Cost: $144,472,292)					195,772,783
Liabilities in Excess of Other Assets — (3.1)%					(5,876,867	)
Net Assets — 100.0%				$	189,895,916

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Annualized7-day yield as of period end.

^(d)  Security was purchased with the cash collateral from loaned securities.

^(e)  Amount is less than $500.

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Large Cap Focus Growth V.I. Fund

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net     Realized     Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		3,741,601		(3,228,136	)		513,465	$	513,465	$	16,407		$	(1	)	$	—
SL Liquidity Series, LLC, Money Market Series		7,770,691		(2,235,714	)		5,534,977		5,536,638		2,963	(b)		680			777
								$	6,050,103	$	19,370		$	679		$	777

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. For information about the Fund’s policy regarding valuation of investments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	5,587,918	$	—	$	—	$	5,587,918
Automobiles		4,354,304		—		—		4,354,304
Beverages		5,510,381		—		—		5,510,381
Capital Markets		8,736,476		—		—		8,736,476
Chemicals		2,172,753		—		—		2,172,753
Construction Materials		3,462,272		—		—		3,462,272
Entertainment		5,885,568		—		—		5,885,568
Equity Real Estate Investment Trusts (REITs)		3,875,567		—		—		3,875,567
Health Care Equipment & Supplies		13,016,899		—		—		13,016,899
Health Care Providers & Services		6,322,055		—		—		6,322,055
Hotels, Restaurants & Leisure		3,728,674		—		—		3,728,674
Interactive Media & Services		13,074,688		4,611,978		—		17,686,666
Internet & Direct Marketing Retail		29,221,616		—		—		29,221,616
IT Services		20,655,514		—		—		20,655,514
Life Sciences Tools & Services		3,582,468		—		—		3,582,468
Pharmaceuticals		2,420,401		—		—		2,420,401
Professional Services		6,504,110		—		—		6,504,110
Road & Rail		3,499,731		—		—		3,499,731
Semiconductors & Semiconductor Equipment		3,897,232		—		—		3,897,232
Software		39,601,844		—		—		39,601,844
Short-Term Securities:
Money Market Funds		513,465		—		—		513,465
Time Deposits		—		231		—		231
Subtotal	$	185,623,936	$	4,612,209	$	—	$	190,236,145
Investments valued at NAV(a)								5,536,638
Total Investments							$	195,772,783

^(a)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock   Large Cap   Focus Growth   V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $5,416,145) (cost — $138,422,189)	$	189,722,680
Investments at value — affiliated (cost — $6,050,103)		6,050,103
Receivables:
Securities lending income — affiliated		321
Capital shares sold		67,573
Dividends — affiliated		1,896
Dividends — unaffiliated		1,010
Prepaid expenses		1,503
Total assets		195,845,086
LIABILITIES
Cash collateral on securities loaned at value		5,538,187
Payables:
Capital shares redeemed		58,608
Custodian fees		38,276
Distribution fees		16,679
Investment advisory fees		100,201
Directors’ and Officer’s fees		5,646
Other affiliates		264
Professional fees		28,018
Transfer agent fees		96,095
Other accrued expenses		67,196
Total liabilities		5,949,170
NET ASSETS	$	189,895,916
NET ASSETS CONSIST OF
Paid-in capital	$	127,862,863
Accumulated earnings		62,033,053
NET ASSETS	$	189,895,916
NET ASSET VALUE
Class I— Based on net assets of $105,670,775 and 6,361,072 shares outstanding, 100 million shares authorized, $0.10 par value	$	16.61
Class III— Based on net assets of $84,225,141 and 5,149,530 shares outstanding, 100 million shares authorized, $0.10 par value	$	16.36

See notes to financial statements.

FINANCIAL STATEMENTS 7

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock    Large Cap    Focus Growth    V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	16,407
Dividends — unaffiliated		478,767
Securities lending income — affiliated — net		2,963
Foreign taxes withheld		(5,954)
Total investment income		492,183
EXPENSES
Investment advisory		584,625
Transfer agent — class specific		186,191
Distribution — class specific		98,074
Accounting services		27,274
Professional		26,073
Custodian		25,075
Printing		8,136
Directors and Officer		7,545
Transfer agent		2,480
Board realignment and consolidation		1,202
Registration		21
Miscellaneous		2,718
Total expenses		969,414
Less:
Fees waived and/or reimbursed by the Manager		(523)
Transfer agent fees waived and/or reimbursed — class specific		(123,036)
Total expenses after fees waived and/or reimbursed		845,855
Net investment loss		(353,672)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		679
Investments — unaffiliated		10,328,844
Foreign currency transactions		(104)
		10,329,419
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		777
Investments — unaffiliated		28,942,776
		28,943,553
Net realized and unrealized gain		39,272,972
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	38,919,300

See notes to financial statements.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Large Cap Focus Growth V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment loss	$	(353,672)	$	(580,087)
Net realized gain		10,329,419		15,468,799
Net change in unrealized appreciation (depreciation)		28,943,553		(11,922,650)
Net increase in net assets resulting from operations		38,919,300		2,966,062
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		—		(10,303,447)
Class III		—		(7,856,717)
Decrease in net assets resulting from distributions to shareholders		—		(18,160,164)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(11,088,878)		22,131,719
NET ASSETS
Total increase in net assets		27,830,422		6,937,617
Beginning of period		162,065,494		155,127,877
End of period	$	189,895,916	$	162,065,494

^(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 9

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Large Cap Focus Growth V.I. Fund
	Class I
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	13.32		$	14.51		$	13.35		$	13.59		$	14.08		$	14.22
Net investment income (loss)(a)		(0.02	)		(0.04	)		0.02			0.09			0.08			0.09
Net realized and unrealized gain		3.31			0.49			3.92			0.99			0.31			1.92
Net increase from investment operations		3.29			0.45			3.94			1.08			0.39			2.01
Distributions(b)
From net investment income		—			—			(0.01	)		(0.10	)		(0.09	)		(0.08)
From net realized gain		—			(1.64	)		(2.77	)		(1.22	)		(0.79	)		(2.07)
Total distributions		—			(1.64	)		(2.78	)		(1.32	)		(0.88	)		(2.15)
Net asset value, end of period	$	16.61		$	13.32		$	14.51		$	13.35		$	13.59		$	14.08
Total Return(c)
Based on net asset value		24.70%(d)			3.01%			29.56%			7.89%			2.73%			14.16%
Ratios to Average Net Assets(e)
Total expenses		0.97%(f)			0.96%			1.01%			0.96%			0.95%			0.96%
Total expenses after fees waived and/or reimbursed		0.83%(f)			0.82%			0.89%			0.84%			0.82%			0.83%
Net investment income (loss)		(0.28)%(f)			(0.23)%			0.10%			0.68%			0.59%			0.57%
Supplemental Data
Net assets, end of period (000)	$	105,671		$	91,380		$	100,308		$	87,346		$	98,485		$	108,329
Portfolio turnover rate		29%			63%			95%			37%			35%			51%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		—%		0.01%		0.01%		0.01%		—%		—%

^(f)  Annualized.

See notes to financial statements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Large Cap Focus Growth V.I. Fund
	Class III
	Six Months Ended			Year Ended December 31,
	06/30/19 (unaudited)			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	13.13		$	14.36		$	13.24		$	13.50		$	13.99		$	14.14
Net investment income (loss)(a)		(0.04	)		(0.08	)		(0.02	)		0.06			0.05			0.05
Net realized and unrealized gain		3.27			0.49			3.88			0.96			0.30			1.92
Net increase from investment operations		3.23			0.41			3.86			1.02			0.35			1.97
Distributions(b)
From net investment income		—			—			(0.00	)(c)		(0.06	)		(0.05	)		(0.05)
From net realized gain		—			(1.64	)		(2.74	)		(1.22	)		(0.79	)		(2.07)
Total distributions		—			(1.64	)		(2.74	)		(1.28	)		(0.84	)		(2.12)
Net asset value, end of period	$	16.36		$	13.13		$	14.36		$	13.24		$	13.50		$	13.99
Total Return(d)
Based on net asset value		24.60%(e)			2.77%			29.23%			7.54%			2.51%			13.96%
Ratios to Average Net Assets(f)
Total expenses		1.22%(g)			1.22%			1.28%			1.22%			1.21%			1.22%
Total expenses after fees waived and/or reimbursed		1.08%(g)			1.07%			1.14%			1.09%			1.07%			1.09%
Net investment income (loss)		(0.53)%(g)			(0.48)%			(0.16)%			0.42%			0.35%			0.32%
Supplemental Data
Net assets, end of period (000)	$	84,225		$	70,685		$	54,820		$	39,346		$	37,818		$	32,090
Portfolio turnover rate		29%			63%			95%			37%			35%			51%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Amount is greater than $(0.005) per share.

^(d) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e) Aggregate total return.

^(f) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

						��
	Six Months Ended		Year Ended December 31,
	06/30/19 (unaudited)		2018		2017		2016		2015		2014
Investments in underlying funds		—%		0.01%		0.01%		0.01%		—%		—%

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 11

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Large Cap Focus Growth V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Fund may incur charges on certain uninvested cash balances and overdrafts, subject to certain conditions.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

NOTESTO FINANCIAL STATEMENTS 13

Notes to Financial Statements  (unaudited) (continued)

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Citigroup Global Markets, Inc.	$	4,366,915	$	(4,366,915	)	$	—
JP Morgan Securities LLC		1,049,230		(1,049,230	)		—
	$	5,416,145	$	(5,416,145	)	$	—

^(a)  Cash collateral with a value of $5,538,187 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.65	%
$1 Billion — $3 Billion		0.61
$3 Billion — $5 Billion		0.59
$5 Billion — $10 Billion		0.57
Greater than $10 Billion		0.55

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $98,074.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	105,108
Class III		81,083
	$	186,191

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $523.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $970 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.07	%
Class III	0.07

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$          69,500
Class III		$          53,536
		$        123,036

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	1.25	%
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $1,465 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency

NOTESTO FINANCIAL STATEMENTS 15

Notes to Financial Statements  (unaudited) (continued)

purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

6. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $51,804,472 and $60,423,955, respectively.

7. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	144,506,722
Gross unrealized appreciation	$	51,789,212
Gross unrealized depreciation		(523,151)
Net unrealized appreciation	$	51,266,061

8. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the

Fund.

Concentration Risk: As of period end, the Fund invested a significant portion of its assets in securities in the information technology sector. Changes in economic conditions affecting such sector would have a greater impact on the Fund and could affect the value, income and/or liquidity of positions in such securities.

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended 12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		72,584	$	1,094,161		386,678	$	6,168,160
Shares issued in reinvestment of distributions		—		—		755,113		10,303,447
Shares redeemed		(573,747)		(8,907,128)		(1,192,018)		(19,141,189)
Net decrease		(501,163)	$	(7,812,967)		(50,227)	$	(2,669,582)
Class III
Shares sold		862,273	$	12,702,679		2,379,648	$	38,478,618
Shares issued in reinvestment of distributions		—		—		587,788		7,856,717
Shares redeemed		(1,097,471)		(15,978,590)		(1,399,440)		(21,534,034)
Net increase (decrease)		(235,198)	$	(3,275,911)		1,567,996	$	24,801,301
Total Net Increase (Decrease)		(736,361)	$	(11,088,878)		1,517,769	$	22,131,719

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 17

Glossary of Terms Used in this Report  

Currency

AUD	Australian Dollar
HKD	Hong Kong Dollar

Portfolio Abbreviations

ADR	American Depositary Receipts
NYRS	New York Registered Shares
S&P	S&P Global Ratings

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Managed Volatility V.I. Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock Managed Volatility V.I. Fund

Investment Objective

BlackRock Managed Volatility V.I. Fund’s (the “Fund”) investment objective is to seek a level of current income and degree of stability of principal not normally available from an investment solely in equity securities, as well as the opportunity for capital appreciation greater than is normally available from an investment solely in debt securities.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its blended benchmark (50% MSCI All Country World Index (“ACWI”)/50% FTSE World Government Bond Index (hedged into USD)) and underperformed its performance benchmark, the ICE BofAML3-Month U.S. Treasury Bill Index.

What factors influenced performance?

The Fund’s relative value positioning across countries and sectors on the equity side of the portfolio was the largest constraint on Fund performance for the period. A preference for the health care sector versus the information technology (“IT”) sector was a material drag within equities. Country positioning within Asian equities further detracted, with a preference for Korea versus Singapore weighing on performance as Korean equities suffered in the wake of U.S.-China trade tensions. On the fixed-income side, a net short stance with respect to duration (and corresponding sensitivity to interest rates) in May detracted. Finally, a short position in the British pound early in the period negatively impacted Fund returns.

The Fund was positioned long in U.S. equities coming into the period in anticipation of a reversion in prices to a level more consistent with the macro data. As risk assets rallied in January, the Fund reduced its U.S. equity position, capturing profits in the process. However, the Fund maintained a directional long U.S. equity position throughout the period, further boosting return. Within emerging market bonds, a preference for Mexico over India on moderating inflation and attractive pricing aided performance in the first half of the period. Additionally, a long tilt to global developed market fixed-income in the first half of the period contributed as central banks became more dovish in response to broad-based weakness in global growth data. Relative value preferences for U.S. versus German bonds and Brazilian versus Korean bonds in the second half of the period also boosted return.

Describe recent portfolio activity.

The Fund entered the period net long both stocks and bonds. Early in the period, as equity markets rallied the Fund reduced the magnitude of its net equity long position. Similarly, the Fund trimmed its net long fixed-income position as global central banks became more dovish in response to continued softness in economic data. As global interest rates fell throughout the spring, the Fund pivoted to a net short fixed-income position in anticipation of aback-up in interest rates. In early June, fixed-income positioning was pared back to neutral before being moved to a short position as the period drew to a close. In currencies, the Fund moved from a long to a short position in the U.S. dollar over the period.

Derivatives are used by the portfolio management team as an efficient means to take active views on interest rates, equity indices and currencies in the Fund. During the period, the use of derivatives instead of physical instruments had a negative impact on Fund performance.

During the period, the Fund held a relatively high allocation to cash as a means of reducing overall portfolio volatility. The Fund’s cash position did not have a material impact on performance.

Describe portfolio positioning at period end.

As of period end, the Fund had a net long position in global equities and was net short in global bonds. The Fund remained overweight to U.S. bonds versus German bonds, overweight to emerging market currencies and retained a sector underweight to IT. The Fund’s overall positioning reflected the investment adviser’s view that the underlying trends in growth and inflation remain more robust than headline numbers suggest.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Managed Volatility V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)				1 Year			5 Years			10 Years
Class I (b)(c)		0.37	%			0.23	%		1.50	%		6.02	%
Class III (b)(c)		0.22				(0.04	)		1.24	(d)		5.76	(d)
50% MSCI ACWI/50% FTSE WGBI (hedged into USD)(e)		11.16				7.18			5.28			7.27
MSCI ACWI(f)		16.23				5.74			6.16			10.15
FTSE WGBI (hedged into USD)(g)		5.91				7.82			3.99			3.93
ICE BofAML3-Month U.S. Treasury Bill Index(h)		1.24				2.31			0.87			0.49

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns. The Fund’s total returns prior to January 22, 2013 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Balanced Capital V.I. Fund”.

^(c)  The Fund uses an asset allocation strategy, investing various percentages of its portfolio in three major categories: stocks, bonds and money market investments.

^(d)  The returns for Class III Shares prior to February 14, 2018, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution(12b-1) fees applicable to Class III Shares.

^(e)  A customized weighted index comprised of the returns of 50% MSCI ACWI/50% FTSE WGBI (hedged into USD).

^(f)  A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI All Country World Index consists of 47 country indexes comprising of 23 developed and 24 emerging market country indexes.

^(g)  A market capitalization weighted bond index consisting of government bond markets of 23 countries, including the United States.

^(h)  An unmanaged index that tracks3-month U.S. Treasury securities. Effective June 2, 2014, the ICE BofAML3-Month U.S. Treasury Bill Index was added to the performance benchmarks against which the Fund measures its performance.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,003.70	$	2.93	$	1,000.00	$	1,021.87	$	2.96		0.59	%
Class III		1,000.00		1,002.20		4.17		1,000.00		1,020.63		4.21		0.84

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Common Stocks		83	%
U.S. Treasury Obligations		17
Preferred Stocks		—	(b)
Corporate Bonds		—	(b)
Rights		—	(b)
Other Interests		—	(b)

^(a)  Total Investments exclude short-term securities.

^(b)  Represents less than 1% of the Fund’s total investments.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 66.0%
Aerospace & Defense — 1.1%
Airbus SE		2,563	$	362,720
BAE Systems plc		18,607		116,943
Boeing Co. (The)		1,864		678,515
Dassault Aviation SA		340		488,680
General Dynamics Corp.		386		70,182
Harris Corp.		294		55,604
Huntington Ingalls Industries, Inc.		326		73,265
Lockheed Martin Corp.		159		57,803
Northrop Grumman Corp.		221		71,407
Raytheon Co.		528		91,809
Singapore Technologies Engineering Ltd.		124,900		382,542
Spirit AeroSystems Holdings, Inc., Class A		168		13,670
Thales SA		843		104,129
TransDigm Group, Inc.(a)		220		106,436
				2,673,705
Air Freight & Logistics — 2.1%
CH Robinson Worldwide, Inc.(b)		9,217		777,454
Expeditors International of Washington, Inc.		3,779		286,675
FedEx Corp.		8,662		1,422,214
United Parcel Service, Inc., Class B(b)		19,408		2,004,264
XPO Logistics, Inc.(a)		9,256		535,089
				5,025,696
Airlines — 0.8%
American Airlines Group, Inc.		11,212		365,623
Delta Air Lines, Inc.		10,093		572,778
Deutsche Lufthansa AG (Registered)		3,785		64,897
easyJet plc		2,412		29,203
Southwest Airlines Co.		12,716		645,719
United Continental Holdings, Inc.(a)		4,026		352,476
				2,030,696
Automobiles — 1.3%
Bayerische Motoren Werke AG		2,815		208,078
Daimler AG (Registered)		10,987		612,765
Ferrari NV		868		140,737
Fiat Chrysler Automobiles NV(a)		7,016		97,371
Ford Motor Co.		30,981		316,935
General Motors Co.		14,831		571,438
Harley-Davidson, Inc.(b)		1,736		62,201
Honda Motor Co. Ltd.		6,800		175,840
Nissan Motor Co. Ltd.		6,300		45,123
Subaru Corp.		3,600		87,650
Tesla, Inc.(a)(b)		1,826		408,038
Toyota Motor Corp.		8,500		527,543
				3,253,719
Banks — 5.6%
AIB Group plc		34,671		141,770
Australia & New Zealand Banking Group Ltd.		14,081		279,499
Banco Bilbao Vizcaya Argentaria SA		59,018		329,184
Banco Santander SA		101,554		470,668
Bank Hapoalim BM		9,419		69,948
Bank LeumiLe-Israel BM		6,049		43,722
Bank of America Corp.		46,136		1,337,944
Bank of Ireland Group plc		19,908		104,151
Bank of Kyoto Ltd. (The)		300		11,631
Bank of Montreal		3,763		284,247
Bank of Nova Scotia (The)		6,229		334,579
Barclays plc		108,833		207,006
BNP Paribas SA		5,380		255,040
BOC Hong Kong Holdings Ltd.		12,000		47,246
CaixaBank SA		9,994		28,663
Canadian Imperial Bank of Commerce		2,173		170,880

Security	Shares		Value
Banks (continued)
Citigroup, Inc.		10,304	$	721,589
Commonwealth Bank of Australia		8,445		491,402
Credit Agricole SA		7,106		84,794
DBS Group Holdings Ltd.		7,200		138,312
DNB ASA		14,012		261,095
Erste Group Bank AG(a)		1,309		48,543
FinecoBank Banca Fineco SpA		1,139		12,706
Fukuoka Financial Group, Inc.		6,000		109,880
Hang Seng Bank Ltd.		1,600		39,825
HSBC Holdings plc		105,029		876,600
ING Groep NV		14,143		163,829
Japan Post Bank Co. Ltd.		20,500		208,313
JPMorgan Chase & Co.		15,931		1,781,086
KBC Group NV		697		45,741
Mitsubishi UFJ Financial Group, Inc.		76,400		363,891
Mizuho Financial Group, Inc.		149,600		217,537
National Australia Bank Ltd.		11,659		219,004
Nordea Bank Abp		5,784		41,999
Oversea-Chinese Banking Corp. Ltd.		12,900		108,814
Royal Bank of Canada		8,068		641,164
Royal Bank of Scotland Group plc		38,958		108,658
Societe Generale SA		1,686		42,554
Standard Chartered plc		18,786		170,424
Sumitomo Mitsui Financial Group, Inc.		7,300		258,754
Svenska Handelsbanken AB, Class A		1,369		13,510
Toronto-Dominion Bank (The)		9,714		567,611
UniCredit SpA		8,249		101,536
United Overseas Bank Ltd.		5,100		98,594
US Bancorp		4,940		258,856
Wells Fargo & Co.		18,901		894,395
Westpac Banking Corp.		17,070		340,209
				13,547,403
Beverages — 0.2%
Anheuser-Busch InBev SA/NV		2,759		244,145
Diageo plc		4,778		205,646
Kirin Holdings Co. Ltd.		3,000		64,778
Treasury Wine Estates Ltd.		5,780		60,704
				575,273
Biotechnology — 1.8%
AbbVie, Inc.		10,587		769,887
Alexion Pharmaceuticals, Inc.(a)		1,268		166,083
Alkermes plc(a)		4,276		96,381
Amgen, Inc.		4,909		904,630
BeiGene Ltd., ADR(a)(b)		27		3,347
Biogen, Inc.(a)		1,293		302,394
Celgene Corp.(a)		5,105		471,906
CSL Ltd.		2,994		453,363
Exact Sciences Corp.(a)		404		47,688
Genmab A/S(a)		23		4,229
Gilead Sciences, Inc.		7,851		530,414
Incyte Corp.(a)		1,306		110,958
Ionis Pharmaceuticals, Inc.(a)		319		20,502
Regeneron Pharmaceuticals, Inc.(a)		256		80,128
Vertex Pharmaceuticals, Inc.(a)		2,201		403,619
				4,365,529
Building Products — 0.1%
Lennox International, Inc.		119		32,725
Masco Corp.		1,493		58,585
TOTO Ltd.		2,200		87,125
				178,435

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Capital Markets — 1.9%
3i Group plc		6,061	$	85,751
Ameriprise Financial, Inc.		300		43,548
ASX Ltd.		1,984		114,947
Bank of New York Mellon Corp. (The)		4,415		194,922
Brookfield Asset Management, Inc., Class A		5,773		276,185
Charles Schwab Corp. (The)		6,165		247,771
CME Group, Inc.		1,310		254,284
Credit Suisse Group AG (Registered)(a)		29,473		352,767
Deutsche Boerse AG		570		80,467
FactSet Research Systems, Inc.		42		12,036
Goldman Sachs Group, Inc. (The)		1,552		317,539
Hargreaves Lansdown plc		1,181		28,856
Hong Kong Exchanges & Clearing Ltd.		3,400		120,156
Intercontinental Exchange, Inc.		1,834		157,614
Japan Exchange Group, Inc.		4,200		66,893
Julius Baer Group Ltd.(a)		1,282		57,118
London Stock Exchange Group plc		715		49,824
Macquarie Group Ltd.		2,972		262,149
MarketAxess Holdings, Inc.		106		34,070
Moody’s Corp.		777		151,756
Morgan Stanley		8,447		370,063
MSCI, Inc.		796		190,077
Nomura Holdings, Inc.		44,700		158,246
Northern Trust Corp.		1,020		91,800
S&P Global, Inc.		1,458		332,118
Schroders plc		524		20,328
St. James’s Place plc		490		6,842
Standard Life Aberdeen plc		2,702		10,110
State Street Corp.		1,791		100,403
TD Ameritrade Holding Corp.		244		12,180
UBS Group AG (Registered)(a)		37,143		441,454
				4,642,274
Chemicals — 1.6%
Air Products & Chemicals, Inc.		175		39,615
Air Water, Inc.		19,600		336,500
Albemarle Corp.(b)		1,525		107,375
Asahi Kasei Corp.		10,100		107,975
BASF SE		3,819		277,829
Clariant AG (Registered)(a)		5,213		106,058
Corteva, Inc.(a)		1,603		47,401
Covestro AG(c)		868		44,189
Daicel Corp.		8,100		72,187
Dow, Inc.		4,325		213,266
DuPont de Nemours, Inc.		7,270		545,759
EMS-Chemie Holding AG (Registered)		116		75,301
Evonik Industries AG		3,442		100,292
Hitachi Chemical Co. Ltd.		500		13,628
Kaneka Corp.		5,100		192,284
Koninklijke DSM NV		85		10,488
Linde plc		1,864		374,291
LyondellBasell Industries NV, Class A		845		72,780
Mitsubishi Chemical Holdings Corp.		10,900		76,314
Mitsubishi Gas Chemical Co., Inc.		2,000		26,751
Mitsui Chemicals, Inc.		1,700		42,236
Nippon Paint Holdings Co. Ltd.		200		7,786
Nissan Chemical Corp.		1,300		58,731
Nitto Denko Corp.		2,300		113,842
Nutrien Ltd.		629		33,646
Sherwin-Williams Co. (The)		1,287		589,819
Shin-Etsu Chemical Co. Ltd.		300		28,069
Showa Denko KK		2,400		71,024
Toray Industries, Inc.		8,700		66,098

Security	Shares		Value
Chemicals (continued)
Tosoh Corp.		8,700	$	122,713
				3,974,247
Commercial Services & Supplies — 0.7%
Cintas Corp.		1,109		263,155
Copart, Inc.(a)		1,290		96,415
Dai Nippon Printing Co. Ltd.		10,400		222,115
Edenred		10,076		513,518
ISS A/S		3,387		102,398
Republic Services, Inc.		658		57,009
Secom Co. Ltd.		3,300		284,360
Sohgo Security Services Co. Ltd.		2,300		106,311
Toppan Printing Co. Ltd.		11,200		170,311
Waste Management, Inc.		99		11,422
				1,827,014
Construction & Engineering — 0.8%
Bouygues SA		5,634		208,644
CIMIC Group Ltd.		2,862		89,997
Eiffage SA		5,369		530,616
Kajima Corp.		11,400		156,801
Obayashi Corp.		3,800		37,539
Shimizu Corp.		12,700		105,742
Taisei Corp.		3,800		138,421
Vinci SA		5,612		573,129
				1,840,889
Construction Materials — 0.0%
Taiheiyo Cement Corp.		300		9,108
Consumer Finance — 0.4%
Acom Co. Ltd.		6,800		24,540
AEON Financial Service Co. Ltd.		1,600		25,824
American Express Co.		4,174		515,238
Capital One Financial Corp.		1,201		108,979
Credit Saison Co. Ltd.		1,300		15,257
Discover Financial Services		2,216		171,939
Synchrony Financial		2,314		80,226
				942,003
Containers & Packaging — 0.4%
Amcor plc(a)		2,039		23,428
Ball Corp.		3,955		276,810
Crown Holdings, Inc.(a)		1,212		74,053
Sealed Air Corp.		2,596		111,057
Toyo Seikan Group Holdings Ltd.		5,600		111,344
Westrock Co.		11,618		423,709
				1,020,401
Distributors — 0.0%
Jardine Cycle & Carriage Ltd.		300		8,039
Diversified Financial Services — 0.8%
AMP Ltd.		6,837		10,199
AXA Equitable Holdings, Inc.		2,261		47,255
Berkshire Hathaway, Inc., Class B(a)		6,368		1,357,466
EXOR NV		241		16,884
Groupe Bruxelles Lambert SA		1,209		118,786
Industrivarden AB, Class C		2,864		63,549
Investor AB, Class B		372		17,889
ORIX Corp.		7,800		116,570
Wendel SA		1,015		138,372
				1,886,970
Diversified Telecommunication Services — 1.2%
AT&T, Inc.		20,336		681,459
BCE, Inc.		517		23,522
BT Group plc		7,685		19,215

6 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Diversified Telecommunication Services (continued)
Deutsche Telekom AG (Registered)		4,974	$	86,173
Koninklijke KPN NV		1,884		5,785
Nippon Telegraph & Telephone Corp.		4,000		186,359
Orange SA		8,308		131,043
Singapore Telecommunications Ltd.		10,900		28,213
Spark New Zealand Ltd.		2,459		6,616
Swisscom AG (Registered)		200		100,458
Telefonica Deutschland Holding AG		5,590		15,618
Telefonica SA		25,358		208,526
Telenor ASA		6,430		136,613
Telia Co. AB		3,640		16,137
Telstra Corp. Ltd.		16,097		43,528
Verizon Communications, Inc.		21,567		1,232,123
Zayo Group Holdings, Inc.(a)		731		24,057
				2,945,445
Electric Utilities — 2.0%
American Electric Power Co., Inc.		6,793		597,852
Chubu Electric Power Co., Inc.		11,500		161,544
Chugoku Electric Power Co., Inc. (The)		7,400		93,320
CLP Holdings Ltd.		2,500		27,550
Duke Energy Corp.		6,578		580,443
Edison International		6,789		457,646
EDP — Energias de Portugal SA		3,844		14,609
Endesa SA(b)		893		22,968
Enel SpA		49,098		342,495
Entergy Corp.		1,652		170,040
Evergy, Inc.		565		33,985
Eversource Energy		223		16,894
Exelon Corp.		12,998		623,124
FirstEnergy Corp.		6,917		296,117
Iberdrola SA		22,431		223,327
Kansai Electric Power Co., Inc. (The)		6,700		76,805
Kyushu Electric Power Co., Inc.		3,600		35,368
NextEra Energy, Inc.		2,782		569,921
Pinnacle West Capital Corp.		859		80,823
PPL Corp.		1,284		39,817
Southern Co. (The)		2,895		160,036
Tohoku Electric Power Co., Inc.		7,900		79,939
Tokyo Electric Power Co. Holdings, Inc.(a)		13,600		71,034
Verbund AG		739		38,713
Xcel Energy, Inc.		2,909		173,056
				4,987,426
Electrical Equipment — 0.6%
ABB Ltd. (Registered)		1,210		24,258
Acuity Brands, Inc.		2,513		346,568
Eaton Corp. plc		1,455		121,172
Emerson Electric Co.		6,361		424,406
Fuji Electric Co. Ltd.		2,900		100,505
Mitsubishi Electric Corp.		9,600		126,913
Rockwell Automation, Inc.(b)		1,366		223,792
Sensata Technologies Holding plc(a)		1,618		79,282
				1,446,896
Electronic Equipment, Instruments & Components — 0.4%
CDW Corp.		2,138		237,318
Hitachi Ltd.		5,900		217,077
Ingenico Group SA		1,735		153,550
Keyence Corp.		200		123,344
Murata Manufacturing Co. Ltd.		200		9,004
Omron Corp.		3,600		188,806
Shimadzu Corp.		1,300		32,003
TDK Corp.		400		31,158

Security	Shares		Value
Electronic Equipment, Instruments & Components (continued)
Zebra Technologies Corp., Class A(a)		197	$	41,270
				1,033,530
Energy Equipment & Services — 0.2%
Baker Hughes a GE Co., Class A		7,318		180,243
Halliburton Co.		11,535		262,306
National Oilwell Varco, Inc.		5,301		117,841
				560,390
Entertainment — 1.1%
Konami Holdings Corp.		900		42,335
Live Nation Entertainment, Inc.(a)		962		63,733
Netflix, Inc.(a)		2,226		817,654
Nintendo Co. Ltd.		600		220,139
Toho Co. Ltd.		1,400		59,646
Ubisoft Entertainment SA(a)		1,030		80,555
Viacom, Inc., Class B		969		28,944
Vivendi SA		6,594		180,957
Walt Disney Co. (The)		8,145		1,137,368
				2,631,331
Food & Staples Retailing — 0.8%
Alimentation Couche-Tard, Inc., Class B		3,707		233,281
Coles Group Ltd.(a)		5,583		52,419
Colruyt SA		3,058		177,529
Costco Wholesale Corp.		623		164,634
George Weston Ltd.		822		62,374
ICA Gruppen AB		3,575		153,685
J Sainsbury plc		26,018		64,655
Jeronimo Martins SGPS SA		2,710		43,683
Koninklijke Ahold Delhaize NV		14,901		334,523
Kroger Co. (The)		2,201		47,784
Loblaw Cos. Ltd.		1,242		63,591
Metro, Inc.		1,520		57,037
Seven & i Holdings Co. Ltd.		2,900		98,256
Tesco plc		3,463		9,983
Walgreens Boots Alliance, Inc.		782		42,752
Walmart, Inc.		998		110,269
Wm Morrison Supermarkets plc		4,293		10,989
Woolworths Group Ltd.		5,363		125,232
				1,852,676
Food Products — 0.6%
a2 Milk Co. Ltd.(a)		2,052		20,284
Chocoladefabriken Lindt & Spruengli AG (Registered)		2		162,672
MEIJI Holdings Co. Ltd.		200		14,300
Nestle SA (Registered)		11,480		1,188,435
Orkla ASA		6,597		58,548
WH Group Ltd.(c)		67,500		68,472
				1,512,711
Gas Utilities — 0.2%
Hong Kong & China Gas Co. Ltd.		28,900		64,068
Naturgy Energy Group SA		1,710		47,126
Osaka Gas Co. Ltd.		4,100		71,553
Toho Gas Co. Ltd.		1,700		62,683
Tokyo Gas Co. Ltd.		5,600		132,003
				377,433
Health Care Equipment & Supplies — 2.6%
Abbott Laboratories		12,127		1,019,881
ABIOMED, Inc.(a)		28		7,294
Alcon, Inc.(a)		6,059		374,141
Align Technology, Inc.(a)		637		174,347
Baxter International, Inc.		4,375		358,312
Becton Dickinson and Co.(b)		1,271		320,305

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Health Care Equipment & Supplies (continued)
Boston Scientific Corp.(a)		7,320	$	314,614
Cochlear Ltd.		465		67,702
Coloplast A/S, Class B		1,081		122,195
Danaher Corp.		3,825		546,669
Dentsply Sirona, Inc.		1,072		62,562
DexCom, Inc.(a)		136		20,378
Edwards Lifesciences Corp.(a)		1,327		245,150
Fisher & Paykel Healthcare Corp. Ltd.		9,783		101,768
Hologic, Inc.(a)		681		32,702
Hoya Corp.		3,500		268,990
IDEXX Laboratories, Inc.(a)		576		158,590
Intuitive Surgical, Inc.(a)		417		218,737
Koninklijke Philips NV		6,243		271,420
Medtronic plc		7,865		765,972
Olympus Corp.		5,900		65,660
Siemens Healthineers AG(c)		4,393		185,112
Smith & Nephew plc		5,475		118,887
Stryker Corp.		1,765		362,849
Sysmex Corp.		600		39,252
Teleflex, Inc.		68		22,518
Varian Medical Systems, Inc.(a)		246		33,488
Zimmer Biomet Holdings, Inc.		1,001		117,858
				6,397,353
Health Care Providers & Services — 1.6%
Alfresa Holdings Corp.		3,700		91,505
AmerisourceBergen Corp.		1,458		124,309
Anthem, Inc.		357		100,749
Cardinal Health, Inc.		2,280		107,388
Cigna Corp.		1,440		226,872
CVS Health Corp.		9,717		529,479
DaVita, Inc.(a)		1,624		91,366
Fresenius Medical Care AG & Co. KGaA		1,349		105,941
Fresenius SE & Co. KGaA		1,520		82,536
HCA Healthcare, Inc.(b)		3,297		445,656
Henry Schein, Inc.(a)		920		64,308
Laboratory Corp. of America Holdings(a)(b)		641		110,829
McKesson Corp.		1,500		201,585
Medipal Holdings Corp.		3,900		86,262
NMC Health plc		267		8,169
Quest Diagnostics, Inc.		962		97,941
Ramsay Health Care Ltd.		1,535		77,930
Ryman Healthcare Ltd.		14,115		111,478
Sonic Healthcare Ltd.		7,203		137,246
Suzuken Co. Ltd.		2,000		117,527
UnitedHealth Group, Inc.		3,799		926,994
Universal Health Services, Inc., Class B		822		107,181
				3,953,251
Health Care Technology — 0.1%(a)
Cerner Corp.		2,276		166,831
Veeva Systems, Inc., Class A		679		110,073
				276,904
Hotels, Restaurants & Leisure — 0.3%
Compass Group plc		2,974		71,292
Marriott International, Inc., Class A		1,911		268,094
Oriental Land Co. Ltd.		300		37,218
Restaurant Brands International, Inc.		1,352		94,022
Tabcorp Holdings Ltd.		11,051		34,528
Whitbread plc		1,972		116,028
				621,182
Household Durables — 0.1%
NVR, Inc.(a)		19		64,035
PulteGroup, Inc.		712		22,513

Security	Shares		Value
Household Durables (continued)
Sony Corp.		1,300	$	68,315
				154,863
Household Products — 1.3%
Church & Dwight Co., Inc.		2,971		217,061
Clorox Co. (The)		1,619		247,885
Colgate-Palmolive Co.		1,880		134,740
Essity AB, Class B		4,824		148,403
Henkel AG & Co. KGaA		970		89,150
Kimberly-Clark Corp.		3,715		495,135
Procter & Gamble Co. (The)		14,226		1,559,881
Reckitt Benckiser Group plc		3,268		258,024
				3,150,279
Independent Power and Renewable Electricity Producers — 0.1%
Meridian Energy Ltd.		9,980		31,888
NRG Energy, Inc.		4,047		142,131
Uniper SE		1,918		58,119
Vistra Energy Corp.		1,748		39,575
				271,713
Industrial Conglomerates — 0.8%
DCC plc		2,904		259,070
General Electric Co.		46,161		484,690
Jardine Matheson Holdings Ltd.		500		31,536
Jardine Strategic Holdings Ltd.		3,700		141,182
Keihan Holdings Co. Ltd.		1,300		56,719
Keppel Corp. Ltd.		86,000		423,756
NWS Holdings Ltd.		95,000		195,393
Siemens AG (Registered)		1,880		223,824
Toshiba Corp.		1,600		49,880
				1,866,050
Insurance — 3.1%
Admiral Group plc		1,540		43,183
Aflac, Inc.		580		31,790
Ageas		929		48,345
AIA Group Ltd.		54,000		583,141
Allianz SE (Registered)		3,057		737,276
Allstate Corp. (The)		1,002		101,893
American International Group, Inc.		2,995		159,574
Aon plc		1,702		328,452
Assicurazioni Generali SpA		11,187		210,624
Aviva plc		27,462		145,454
AXA SA		9,406		247,018
Baloise Holding AG (Registered)		73		12,929
CNP Assurances		3,127		70,978
Dai-ichi Life Holdings, Inc.		1,200		18,156
Direct Line Insurance Group plc		2,825		11,908
Erie Indemnity Co., Class A		266		67,638
Fairfax Financial Holdings Ltd.		169		82,949
Gjensidige Forsikring ASA		5,686		114,602
Great-West Lifeco, Inc.		4,323		99,529
Hannover Rueck SE		170		27,488
Insurance Australia Group Ltd.		14,001		81,289
Intact Financial Corp.		260		24,027
Japan Post Holdings Co. Ltd.		17,300		195,923
Legal & General Group plc		55,906		191,535
Manulife Financial Corp.		17,152		311,724
Mapfre SA		60,636		177,320
Marsh & McLennan Cos., Inc.		2,513		250,672
MetLife, Inc.		1,841		91,442
MS&AD Insurance Group Holdings, Inc.		3,600		114,431
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		2,552		639,678
NN Group NV		7,366		296,105

8 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Insurance (continued)
Poste Italiane SpA(b)(c)		4,842	$	51,023
Power Financial Corp.		3,026		69,599
Progressive Corp. (The)		1,988		158,901
Prudential Financial, Inc.		1,310		132,310
Prudential plc		14,410		314,584
QBE Insurance Group Ltd.		14,786		123,007
Sampo OYJ, Class A		3,262		153,981
Sompo Holdings, Inc.		2,300		88,968
Sony Financial Holdings, Inc.		200		4,813
Sun Life Financial, Inc.		3,765		155,913
Suncorp Group Ltd.		7,973		75,501
Swiss Life Holding AG (Registered)(a)		85		42,142
Swiss Re AG		1,154		117,267
Tokio Marine Holdings, Inc.		4,100		205,719
Travelers Cos., Inc. (The)		564		84,329
Willis Towers Watson plc		427		81,788
Zurich Insurance Group AG		266		92,555
				7,469,473
Interactive Media & Services — 2.4%
Alphabet, Inc., Class A(a)		1,430		1,548,404
Alphabet, Inc., Class C(a)		1,567		1,693,786
Facebook, Inc., Class A(a)		11,223		2,166,039
IAC/InterActiveCorp(a)		414		90,058
Kakaku.com, Inc.		200		3,868
Snap, Inc., Class A(a)		2,750		39,325
TripAdvisor, Inc.(a)		1,390		64,343
Twitter, Inc.(a)		3,086		107,701
Yahoo Japan Corp.		4,100		12,060
				5,725,584
Internet & Direct Marketing Retail — 2.7%
Amazon.com, Inc.(a)		2,906		5,502,889
Booking Holdings, Inc.(a)		379		710,515
eBay, Inc.		1,052		41,554
GrubHub, Inc.(a)		220		17,158
MercadoLibre, Inc.		133		81,365
Ocado Group plc(a)		459		6,804
Qurate Retail, Inc.(a)		1,305		16,169
Wayfair, Inc., Class A(a)		1,478		215,788
				6,592,242
IT Services — 1.1%
Adyen NV(a)(c)		175		134,993
Automatic Data Processing, Inc.		1,686		278,746
Cognizant Technology Solutions Corp., Class A		599		37,971
Fidelity National Information Services, Inc.		1,358		166,599
Fiserv, Inc.(a)		2,062		187,972
Fujitsu Ltd.		3,400		237,613
GoDaddy, Inc., Class A(a)		375		26,306
Itochu Techno-Solutions Corp.		3,300		84,837
Jack Henry & Associates, Inc.		84		11,249
Mastercard, Inc., Class A(b)		775		205,011
Obic Co. Ltd.		1,100		125,010
Okta, Inc.(a)		339		41,870
Otsuka Corp.		2,900		116,948
Paychex, Inc.		1,697		139,646
PayPal Holdings, Inc.(a)		2,147		245,746
Shopify, Inc., Class A(a)		371		111,503
Square, Inc., Class A(a)		265		19,220
VeriSign, Inc.(a)		200		41,832
Visa, Inc., Class A		1,910		331,481
Wirecard AG		435		73,435
Worldpay, Inc., Class A(a)		778		95,344
				2,713,332

Security	Shares		Value
Life Sciences Tools & Services — 0.6%
Agilent Technologies, Inc.		1,204	$	89,903
Illumina, Inc.(a)		745		274,272
Lonza Group AG (Registered)(a)		34		11,478
Mettler-Toledo International, Inc.(a)		213		178,920
QIAGEN NV(a)		462		18,799
Thermo Fisher Scientific, Inc.		2,341		687,505
Waters Corp.(a)		501		107,835
				1,368,712
Machinery — 0.4%
ANDRITZ AG		1,442		54,290
Caterpillar, Inc.		3,490		475,652
Deere & Co.		312		51,701
Kone OYJ, Class B		836		49,369
Spirax-Sarco Engineering plc		1,750		204,295
Wabtec Corp.		231		16,577
Yangzijiang Shipbuilding Holdings Ltd.		15,200		17,221
				869,105
Media — 0.9%
CBS Corp.(Non-Voting), Class B		2,486		124,051
Charter Communications, Inc., Class A(a)		1,082		427,585
Comcast Corp., Class A		24,438		1,033,239
CyberAgent, Inc.		1,200		43,731
Dentsu, Inc.		1,500		52,460
Discovery, Inc., Class A(a)(b)		2,828		86,819
Discovery, Inc., Class C(a)		775		22,049
Fox Corp., Class A(a)		1,119		41,000
Fox Corp., Class B(a)		405		14,795
Hakuhodo DY Holdings, Inc.		4,800		81,075
Informa plc		1,374		14,571
Interpublic Group of Cos., Inc. (The)		333		7,522
Liberty Global plc, Class C(a)		4,470		118,589
News Corp., Class A		7,385		99,624
Omnicom Group, Inc.		412		33,763
SES SA, FDR		599		9,365
Sirius XM Holdings, Inc.(b)		5,712		31,873
Telenet Group Holding NV		146		8,136
WPP plc		3,916		49,328
				2,299,575
Metals & Mining — 0.6%
Agnico Eagle Mines Ltd.		3,556		182,314
Alumina Ltd.		173,608		284,968
Anglo American plc		2,182		62,336
ArcelorMittal		818		14,632
Barrick Gold Corp.		4,908		77,468
BHP Group Ltd.		8,719		253,449
BHP Group plc		4,761		121,760
First Quantum Minerals Ltd.		12,629		119,969
Fortescue Metals Group Ltd.		1,404		8,929
Franco-Nevada Corp.		705		59,838
Glencore plc(a)		76,080		263,307
Kirkland Lake Gold Ltd.		79		3,404
Newcrest Mining Ltd.		2,207		49,583
Rio Tinto plc		926		57,313
South32 Ltd.		11,745		26,328
				1,585,598
Multiline Retail — 0.1%
Canadian Tire Corp. Ltd., Class A		493		53,714
Dollarama, Inc.		1,575		55,409
Next plc		100		7,003
Wesfarmers Ltd.		765		19,446
				135,572

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Multi-Utilities — 0.2%
Dominion Energy, Inc.		1,648	$	127,423
E.ON SE		6,570		71,285
Engie SA		9,396		142,476
Innogy SE(c)		267		12,661
National Grid plc		6,587		70,052
RWE AG		1,397		34,472
Veolia Environnement SA		3,815		92,897
				551,266
Oil, Gas & Consumable Fuels — 3.1%
Anadarko Petroleum Corp.		2,070		146,059
BP plc		91,943		640,545
Cabot Oil & Gas Corp.		1,997		45,851
Canadian Natural Resources Ltd.		4,790		129,155
Cenovus Energy, Inc.		3,590		31,663
Chevron Corp.		4,393		546,665
ConocoPhillips		6,386		389,546
Devon Energy Corp.		7,176		204,659
Enbridge, Inc.		7,198		259,987
Encana Corp.		1,560		8,005
Eni SpA		990		16,461
EOG Resources, Inc.		2,395		223,118
Equinor ASA		20,646		409,563
Exxon Mobil Corp.		14,205		1,088,529
Galp Energia SGPS SA		4,360		67,054
Hess Corp.		1,570		99,805
Husky Energy, Inc.		1,890		17,911
Imperial Oil Ltd.		3,742		103,612
JXTG Holdings, Inc.		10,700		53,328
Lundin Petroleum AB		2,978		92,785
Marathon Oil Corp.		5,473		77,771
Marathon Petroleum Corp.		917		51,242
Occidental Petroleum Corp.		2,035		102,320
Oil Search Ltd.		17,814		88,836
OMV AG		371		18,084
Origin Energy Ltd.		4,383		22,538
Phillips 66		186		17,398
Pioneer Natural Resources Co.		215		33,080
Repsol SA		5,387		84,537
Royal Dutch Shell plc, Class A		19,543		637,837
Royal Dutch Shell plc, Class B		16,464		539,471
Santos Ltd.		13,920		69,496
Snam SpA		6,846		34,058
Suncor Energy, Inc.		7,444		232,207
TC Energy Corp.		1,842		91,316
TOTAL SA		10,293		577,373
Valero Energy Corp.		1,356		116,087
Woodside Petroleum Ltd.		6,829		175,154
				7,543,106
Paper & Forest Products — 0.0%
Oji Holdings Corp.		7,700		44,603
Personal Products — 1.1%
Beiersdorf AG		173		20,744
Coty, Inc., Class A		7,823		104,828
Estee Lauder Cos., Inc. (The), Class A		3,201		586,135
Kao Corp.		2,200		167,870
Kobayashi Pharmaceutical Co. Ltd.		1,000		71,744
Kose Corp.		500		84,391
L’Oreal SA		1,349		383,559
Pola Orbis Holdings, Inc.		4,600		128,902
Shiseido Co. Ltd.		3,200		242,037
Unilever NV, CVA		6,760		410,725

Security	Shares		Value
Personal Products (continued)
Unilever plc		7,596	$	471,524
				2,672,459
Pharmaceuticals — 6.2%
Allergan plc		3,553		594,879
Astellas Pharma, Inc.		14,100		200,936
AstraZeneca plc		5,933		485,033
Aurora Cannabis, Inc.(a)		1,267		9,927
Bausch Health Cos., Inc.(a)		1,533		38,678
Bayer AG (Registered)		3,544		245,813
Bristol-Myers Squibb Co.		16,869		765,009
Chugai Pharmaceutical Co. Ltd.		1,200		78,591
Daiichi Sankyo Co. Ltd.		2,800		146,847
Eisai Co. Ltd.		1,600		90,682
Elanco Animal Health, Inc.(a)		1,351		45,664
Eli Lilly & Co.		9,307		1,031,123
GlaxoSmithKline plc		26,115		523,471
H Lundbeck A/S		1,246		49,353
Hisamitsu Pharmaceutical Co., Inc.		200		7,926
Johnson & Johnson		19,980		2,782,814
Kyowa Hakko Kirin Co. Ltd.		2,100		37,891
Merck & Co., Inc.		22,270		1,867,340
Merck KGaA		1,268		132,444
Mitsubishi Tanabe Pharma Corp.		400		4,452
Mylan NV(a)		7,636		145,389
Nektar Therapeutics(a)		2,383		84,787
Novartis AG (Registered)		8,738		797,708
Novo Nordisk A/S, Class B		9,774		499,229
Ono Pharmaceutical Co. Ltd.		300		5,394
Orion OYJ, Class B		173		6,344
Otsuka Holdings Co. Ltd.		1,100		35,944
Perrigo Co. plc		1,186		56,477
Pfizer, Inc.		45,660		1,977,991
Recordati SpA		697		29,051
Roche Holding AG		3,039		854,530
Sanofi SA		5,873		507,558
Shionogi & Co. Ltd.		2,700		156,014
Sumitomo Dainippon Pharma Co. Ltd.		1,700		32,364
Taisho Pharmaceutical Holdings Co. Ltd.		900		69,323
Takeda Pharmaceutical Co. Ltd.		2,440		86,798
Teva Pharmaceutical Industries Ltd., ADR		6,453		59,561
UCB SA		327		27,138
Zoetis, Inc.		4,545		515,812
				15,086,285
Professional Services — 0.6%
CoStar Group, Inc.(a)		56		31,027
Persol Holdings Co. Ltd.		2,100		49,510
Recruit Holdings Co. Ltd.		5,800		194,195
Robert Half International, Inc.		2,656		151,419
SGS SA (Registered)		64		163,127
Teleperformance		2,849		570,817
TransUnion		1,775		130,480
Verisk Analytics, Inc.		666		97,543
				1,388,118
Road & Rail — 0.3%
Aurizon Holdings Ltd.		24,165		91,734
Canadian National Railway Co.		1,999		185,009
Canadian Pacific Railway Ltd.		215		50,638
Central Japan Railway Co.		1,100		220,559
East Japan Railway Co.		1,400		131,101
				679,041

10 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Semiconductors & Semiconductor Equipment — 0.4%
Advantest Corp.		1,900	$	52,309
Applied Materials, Inc.		5,545		249,026
Infineon Technologies AG		6,465		114,881
Intel Corp.		4,691		224,558
Lam Research Corp.		116		21,789
NXP Semiconductors NV		694		67,741
Rohm Co. Ltd.		1,000		67,376
STMicroelectronics NV		1,160		20,574
Texas Instruments, Inc.		423		48,544
				866,798
Software — 1.2%
CDK Global, Inc.		381		18,837
DocuSign, Inc.(a)		423		21,027
Dropbox, Inc., Class A(a)		2,460		61,623
Fortinet, Inc.(a)		235		18,055
Intuit, Inc.		1,317		344,172
Microsoft Corp.		12,143		1,626,676
Nice Ltd.(a)		209		28,611
Oracle Corp.		1,900		139,111
Sage Group plc (The)		9,288		94,725
salesforce.com, Inc.(a)		183		27,767
SAP SE		2,771		379,881
Tableau Software, Inc., Class A(a)		73		12,119
Temenos AG (Registered)(a)		517		92,571
Trend Micro, Inc.		300		13,405
				2,878,580
Specialty Retail — 4.4%
Advance Auto Parts, Inc.		3,013		464,424
AutoZone, Inc.(a)		730		802,613
Best Buy Co., Inc.		10,006		697,718
CarMax, Inc.(a)		4,698		407,927
Fast Retailing Co. Ltd.		100		60,530
Hennes & Mauritz AB, Class B		617		10,962
Home Depot, Inc. (The)		16,533		3,438,368
Industria de Diseno Textil SA		2,529		76,091
Kingfisher plc		47,185		128,611
Lowe’s Cos., Inc.		16,845		1,699,829
O’Reilly Automotive, Inc.(a)		2,287		844,635
Tiffany & Co.(b)		4,400		412,016
Tractor Supply Co.		5,887		640,505
Ulta Beauty, Inc.(a)		2,657		921,687
				10,605,916
Technology Hardware, Storage & Peripherals — 1.3%
Apple, Inc.		13,639		2,699,431
FUJIFILM Holdings Corp.		1,900		96,463
Hewlett Packard Enterprise Co.		1,081		16,161
HP, Inc.		958		19,917
NEC Corp.		2,100		82,868
NetApp, Inc.		214		13,204
Seagate Technology plc(b)		4,529		213,406
Xerox Corp.		1,568		55,523
				3,196,973
Textiles, Apparel & Luxury Goods — 0.5%
adidas AG		577		178,506
Gildan Activewear, Inc.		3,387		131,078
Hermes International		851		613,485
Kering SA		366		216,022
LVMH Moet Hennessy Louis Vuitton SE		261		110,958
				1,250,049
Tobacco — 0.2%
Altria Group, Inc.		951		45,030
British American Tobacco plc		8,091		282,505

Security	Shares		Value
Tobacco (continued)
Swedish Match AB		6,693	$	282,968
				610,503
Transportation Infrastructure — 0.4%
Aena SME SA(c)		1,667		330,404
Aeroports de Paris		1,772		312,639
Atlantia SpA		2,653		69,181
Auckland International Airport Ltd.		6,142		40,662
Sydney Airport(d)		20,423		115,379
Transurban Group(d)		6,980		72,274
				940,539
Wireless Telecommunication Services — 0.6%
KDDI Corp.		4,900		124,689
NTT DOCOMO, Inc.		11,000		256,651
Rogers Communications, Inc., Class B		1,046		55,992
Softbank Corp.		9,600		124,712
SoftBank Group Corp.		5,800		279,359
Sprint Corp.(a)		34,837		228,879
T-Mobile US, Inc.(a)		4,275		316,949
Vodafone Group plc		81,898		134,236
				1,521,467
Total Common Stocks — 66.0% (Cost: $157,047,191)				160,435,730
	Par (000)
Corporate Bonds — 0.0%
Diversified Telecommunication Services — 0.0%
AT&T, Inc., 7.13%, 12/15/31		USD    25		30,579
Total Corporate Bonds — 0.0% (Cost: $30,146)				30,579
	Beneficial Interest (000)
Other Interests — 0.0%(e)
Capital Markets — 0.0%
Lehman Brothers Holdings, Inc.(a)(f)(g)		25		—
Total Other Interests — 0.0%			—
	Shares
Preferred Stocks — 0.2%
Automobiles — 0.1%
Porsche Automobil Holding SE (Preference)		1,721		111,494
Chemicals — 0.1%
Fuchs Petrolub SE (Preference)		8,320		326,646
Health Care Equipment & Supplies — 0.0%
Sartorius AG (Preference)		180		36,915
Household Products — 0.0%
Henkel AG & Co. KGaA (Preference)		835		81,679
Total Preferred Stocks — 0.2%     (Cost: $591,844)			556,734

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Rights — 0.0%
Oil, Gas & Consumable Fuels — 0.0%
Repsol SA(a)		9,739	$	5,402
Total Rights — 0.0% (Cost: $5,387)				5,402
	Par           (000)
U.S. Treasury Obligations — 13.7%
U.S. Treasury Bonds, 8.75%, 08/15/20		2,200		2,365,773
U.S. Treasury Notes:
3.63%, 02/15/20		2,400		2,422,500
2.75%, 08/15/21		14,000		14,289,297
1.13%, 08/31/21		14,500		14,307,422
Total U.S. Treasury Obligations — 13.7% (Cost: $32,823,443)				33,384,992
Total Long-Term Investments — 79.9% (Cost: $190,498,011)				194,413,437

Security	Shares		Value
Short-Term Securities — 10.8%(h)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%*		22,079,354	$	22,079,354
JPMorgan US Treasury Plus Money Market Fund, Agency Class, 2.17%		137,409		137,409
SL Liquidity Series, LLC, Money Market Series, 2.55%(i)*		3,932,787		3,933,967
Total Short-Term Securities — 10.8% (Cost: $26,150,730)				26,150,730
Total Investments — 90.7% (Cost: $216,648,741)				220,564,167
Other Assets Less Liabilities — 9.3%				22,553,340
Net Assets — 100.0%			$	243,117,507

^(a)  Non-income producing security.

^(b)  Security, or a portion of the security, is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

^(e)  Other interests represent beneficial interests in liquidation trusts and other reorganizational or private entities.

^(f)  Issuer filed for bankruptcy and/or is in default.

^(g)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(h)  Annualized7-day yield as of period end.

⁽ⁱ⁾  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity		Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		11,969,958		10,109,396		22,079,354	$	22,079,354	$	179,055		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		459,918		3,472,869		3,932,787		3,933,967		12,564	(b)		838		4
							$	26,013,321	$	191,619		$	838	$	4

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

12 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
CAC 40 10 Euro Index		225		07/19/19	$	14,156	$	124,490
IBEX 35 Index		70		07/19/19		7,301		62,049
OMXS30 Index		59		07/19/19		1,030		8,998
Euro-BTP		2		09/06/19		305		6,416
TOPIX Index		50		09/12/19		7,193		95,677
U.S. Treasury 10 Year Note		743		09/19/19		95,081		888,425
U.S. Treasury Ultra Bond		65		09/19/19		11,542		514,318
DAX Index		3		09/20/19		1,056		13,777
FTSE/MIB Index		55		09/20/19		6,616		208,120
Long Gilt		38		09/26/19		6,288		15,121
U.S. Treasury 5 Year Note		318		09/30/19		37,574		567,276
								2,504,667
Short Contracts
AEX Index		6		07/19/19		765		(4,639	)
Hang Seng Index		1		07/30/19		182		(769	)
MSCI Singapore Index		1,103		07/30/19		30,828		(269,623	)
Euro-Bobl		214		09/06/19		32,715		(187,370	)
Euro-Bund		464		09/06/19		91,140		(1,308,450	)
Euro-Buxl		46		09/06/19		10,613		(457,959	)
Australia 10 Year Bond		101		09/16/19		10,186		27,138
Canada 10 Year Bond		521		09/19/19		56,864		(173,679	)
S&P/TSX 60 Index		39		09/19/19		5,823		(23,682	)
SPI 200 Index		24		09/19/19		2,763		(38,992	)
FTSE 100 Index		159		09/20/19		14,880		(160,382	)
MSCI EAFEE-Mini Index		591		09/20/19		56,834		(1,596,491	)
S&P 500E-Mini Index		657		09/20/19		96,717		(1,594,959	)
								(5,789,857	)
							$	(3,285,190	)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
AUD	7,931,000	USD	5,497,540	JPMorgan Chase Bank NA	09/18/19	$	83,734
AUD	35,484,000	USD	24,858,993	Morgan Stanley & Co. International plc	09/18/19		112,126
AUD	644,000	USD	451,177	Toronto Dominion Bank	09/18/19		2,024
BRL	7,385,000	USD	1,895,485	Bank of America NA	09/18/19		13,108
BRL	10,112,000	USD	2,594,883	Citibank NA	09/18/19		18,482
CAD	2,474,000	USD	1,879,084	BNP Paribas SA	09/18/19		12,855
CAD	2,966,000	USD	2,215,724	Citibank NA	09/18/19		52,462
CAD	184,000	USD	137,806	Morgan Stanley & Co. International plc	09/18/19		2,904
CAD	357,000	USD	272,576	UBS AG	09/18/19		432
CHF	4,350,000	USD	4,408,173	JPMorgan Chase Bank NA	09/18/19		80,006
CHF	37,000	USD	37,660	Morgan Stanley & Co. International plc	09/18/19		516
CNY	130,064,000	USD	18,814,200	BNP Paribas SA	09/18/19		106,897
CNY	59,790,000	USD	8,685,988	JPMorgan Chase Bank NA	09/18/19	��	11,979
EUR	425,904	USD	485,684	BNP Paribas SA	09/18/19		1,659
EUR	1,222,000	USD	1,390,840	HSBC Bank plc	09/18/19		7,439
EUR	3,942,096	USD	4,495,641	JPMorgan Chase Bank NA	09/18/19		15,122
EUR	29,982,724	USD	34,089,532	Morgan Stanley & Co. International plc	09/18/19		218,347
EUR	2,202,000	USD	2,492,065	Toronto Dominion Bank	09/18/19		27,584
GBP	936,000	USD	1,192,203	Citibank NA	09/18/19		705
GBP	1,321,000	USD	1,663,385	Toronto Dominion Bank	09/18/19		20,195
INR	147,093,000	USD	2,097,015	HSBC Bank plc	09/18/19		13,759
JPY	129,749,000	USD	1,204,359	BNP Paribas SA	09/18/19		6,123

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
JPY	731,000	USD	6,802	Morgan Stanley & Co. International plc	09/18/19	$	18
KRW	3,206,027,000	USD	2,733,794	Morgan Stanley & Co. International plc	09/18/19		42,564
MXN	318,812,000	USD	16,022,716	Morgan Stanley & Co. International plc	09/18/19		367,879
MYR	12,036,000	USD	2,901,849	Barclays Bank plc	09/18/19		6,803
MYR	24,721,000	USD	5,910,580	Morgan Stanley & Co. International plc	09/18/19		63,563
NOK	1,741,000	USD	201,263	BNP Paribas SA	09/18/19		3,278
NZD	207,000	USD	138,154	Morgan Stanley & Co. International plc	09/18/19		1,116
PLN	5,935,951	USD	1,580,097	Bank of America NA	09/18/19		12,604
PLN	5,797,414	USD	1,543,980	JPMorgan Chase Bank NA	09/18/19		11,549
PLN	5,935,635	USD	1,580,024	Morgan Stanley & Co. International plc	09/18/19		12,592
SEK	14,222,000	USD	1,510,825	Barclays Bank plc	09/18/19		29,395
SEK	12,222,000	USD	1,305,602	BNP Paribas SA	09/18/19		18,022
SGD	377,000	USD	278,706	Citibank NA	09/18/19		271
THB	84,614,000	USD	2,761,708	BNP Paribas SA	09/18/19		2,571
THB	267,325,000	USD	8,562,620	JPMorgan Chase Bank NA	09/18/19		170,695
USD	6,537,245	EUR	5,697,000	Bank of America NA	09/18/19		18,425
USD	17,623,584	GBP	13,805,000	Morgan Stanley & Co. International plc	09/18/19		29,470
USD	876,806	JPY	93,957,000	Goldman Sachs International	09/18/19		242
USD	2,227,361	JPY	236,822,000	JPMorgan Chase Bank NA	09/18/19		17,952
USD	5,954,241	JPY	637,610,075	Morgan Stanley & Co. International plc	09/18/19		5,716
USD	809,881	NOK	6,865,000	UBS AG	09/18/19		3,351
USD	687,407	SEK	6,330,000	UBS AG	09/18/19		1,878
ZAR	102,694,000	USD	6,889,857	BNP Paribas SA	09/18/19		328,804
ZAR	10,604,880	USD	731,094	Morgan Stanley & Co. International plc	09/18/19		14,354
ZAR	22,629,120	USD	1,559,886	UBS AG	09/18/19		30,781
							2,002,351
GBP	2,142,000	USD	2,741,707	Morgan Stanley & Co. International plc	09/18/19		(11,784	)
PLN	14,975,000	USD	4,023,645	JPMorgan Chase Bank NA	09/18/19		(5,637	)
USD	3,103,319	AUD	4,464,000	HSBC Bank plc	09/18/19		(38,127	)
USD	2,521,385	AUD	3,614,526	JPMorgan Chase Bank NA	09/18/19		(22,262	)
USD	3,071,904	AUD	4,402,474	Morgan Stanley & Co. International plc	09/18/19		(26,245	)
USD	1,441,854	BRL	5,598,000	Bank of America NA	09/18/19		(4,904	)
USD	4,541,432	CAD	6,012,308	Bank of America NA	09/18/19		(56,353	)
USD	297,264	CAD	395,000	Canadian Imperial Bank of Commerce	09/18/19		(4,804	)
USD	3,947,678	CAD	5,225,692	JPMorgan Chase Bank NA	09/18/19		(48,559	)
USD	28,667,545	CAD	38,280,373	Morgan Stanley & Co. International plc	09/18/19		(606,563	)
USD	2,284,213	CHF	2,217,000	Bank of America NA	09/18/19		(3,211	)
USD	1,940,957	CHF	1,898,000	Morgan Stanley & Co. International plc	09/18/19		(17,334	)
USD	9,056,898	CNY	62,748,000	Citibank NA	09/18/19		(71,385	)
USD	3,931,405	EUR	3,458,000	Morgan Stanley & Co. International plc	09/18/19		(25,428	)
USD	2,733,819	GBP	2,146,000	Toronto Dominion Bank	09/18/19		(1,202	)
USD	106,737	INR	7,484,000	BNP Paribas SA	09/18/19		(658	)
USD	1,889,707	INR	133,517,000	JPMorgan Chase Bank NA	09/18/19		(26,253	)
USD	15,918,357	JPY	1,710,813,000	Morgan Stanley & Co. International plc	09/18/19		(42,519	)
USD	23,070,457	KRW	27,055,878,000	Citibank NA	09/18/19		(359,420	)
USD	1,581,016	KRW	1,862,482,263	HSBC Bank plc	09/18/19		(31,858	)
USD	3,152,247	KRW	3,712,479,737	JPMorgan Chase Bank NA	09/18/19		(62,690	)
USD	4,239,998	MXN	82,557,000	Bank of America NA	09/18/19		(4,379	)
USD	188,315	MXN	3,747,000	Morgan Stanley & Co. International plc	09/18/19		(4,324	)
USD	273,406	MYR	1,136,000	Barclays Bank plc	09/18/19		(1,123	)
USD	4,905,927	MYR	20,443,000	UBS AG	09/18/19		(34,382	)
USD	315,147	NZD	471,000	Bank of America NA	09/18/19		(1,742	)
USD	73,167	NZD	110,000	Morgan Stanley & Co. International plc	09/18/19		(841	)
USD	1,647,171	PLN	6,236,355	Bank of America NA	09/18/19		(26,132	)
USD	5,928,430	PLN	22,448,000	BNP Paribas SA	09/18/19		(94,691	)
USD	1,204,733	PLN	4,562,645	UBS AG	09/18/19		(19,491	)
USD	324,744	SEK	3,040,000	BNP Paribas SA	09/18/19		(4,482	)
USD	897,257	SGD	1,223,000	Morgan Stanley & Co. International plc	09/18/19		(7,751	)
USD	3,353,259	THB	104,957,000	Barclays Bank plc	09/18/19		(75,611	)
USD	2,655,530	THB	82,980,000	Goldman Sachs International	09/18/19		(55,367	)
USD	1,353,070	ZAR	20,238,000	Bank of America NA	09/18/19		(69,518	)

14 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	261,790	ZAR	3,902,000	BNP Paribas SA		09/18/19	$	(12,493	)
								(1,879,523	)
Net Unrealized Appreciation							$	122,828

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
7.39%	Monthly	28 day MXIBTIIE	Monthly		09/18/19	(a)		09/11/24	MXN	426,000	$	(169,925	)	$	—		$	(169,925	)
3 month LIBOR	Quarterly	1.76%	Semi-Annual		09/18/19	(a)		09/17/24	USD	48,000		71,102			13,326			57,776
6 month EURIBOR	Semi-Annual	-0.07%	Annual		09/18/19	(a)		09/18/24	EUR	15,000		118,928			835			118,093
6 month EURIBOR	Semi-Annual	-0.19%	Annual		09/18/19	(a)		09/18/24	EUR	12,000		16,274			1,020			15,254
0.31%	Annual	3 month STIBOR	Quarterly		09/18/19	(a)		09/18/24	SEK	111,000		(110,921	)		7,245			(118,166	)
6 month SOR	Semi-Annual	2.01%	Semi-Annual		09/18/19	(a)		09/18/24	SGD	13,000		135,728			—			135,728
2.32%	Quarterly	3 month HIBOR	Quarterly		09/18/19	(a)		09/18/24	HKD	110,000		(438,955	)		(110,041	)		(328,914	)
2.17%	Semi-Annual	3 month BA	Semi-Annual		09/18/19	(a)		09/18/24	CAD	109,000		(1,848,608	)		(6,379	)		(1,842,229	)
0.60%	Annual	3 month STIBOR	Quarterly		09/18/19	(a)		09/18/24	SEK	189,000		(490,296	)		204			(490,500	)
6 month GBP LIBOR	Semi-Annual	1.34%	Semi-Annual		09/18/19	(a)		09/18/24	GBP	99,000		2,677,706			5,684			2,672,022
2.08%	Annual	6 month WIBOR	Semi-Annual		09/18/19	(a)		09/18/24	PLN	79,900		(186,362	)		—			(186,362	)
3 month LIBOR	Quarterly	1.69%	Semi-Annual		09/18/19	(a)		09/18/24	USD	18,000		(33,643	)		2,349			(35,992	)
1.64%	Quarterly	3 month HIBOR	Quarterly		09/18/19	(a)		09/18/24	HKD	27,525		4,722			—			4,722
1.66%	Quarterly	3 month HIBOR	Quarterly		09/18/19	(a)		09/18/24	HKD	88,175		8,372			—			8,372
1.66%	Quarterly	3 month HIBOR	Quarterly		09/18/19	(a)		09/18/24	HKD	62,300		4,007			—			4,007
1.81%	Annual	6 month WIBOR	Semi-Annual		09/18/19	(a)		09/18/24	PLN	47,000		49,767			—			49,767
3 month JIBAR	Quarterly	7.14%	Quarterly		09/18/19	(a)		09/18/24	ZAR	148,500		29,046			—			29,046
1.80%	Semi-Annual	3 month BA	Semi-Annual		09/18/19	(a)		09/18/24	CAD	69,000		(232,938	)		—			(232,938	)
1.94%	Annual	6 month WIBOR	Semi-Annual		09/18/19	(a)		09/18/24	PLN	59,500		(32,976	)		—			(32,976	)
1.98%	Annual	6 month WIBOR	Semi-Annual		09/18/19	(a)		09/18/24	PLN	59,500		(63,206	)		—			(63,206	)
1.68%	Semi-Annual	3 month BA	Semi-Annual		09/18/19	(a)		09/18/24	CAD	27,000		23,556			—			23,556
6 month BBR	Semi-Annual	1.43%	Semi-Annual		09/18/19	(a)		09/18/24	AUD	25,200		184,989			—			184,989
6 month BBR	Semi-Annual	1.43%	Semi-Annual		09/18/19	(a)		09/18/24	AUD	37,800		276,845			—			276,845
3 month JIBAR	Quarterly	7.17%	Quarterly		09/18/19	(a)		09/18/24	ZAR	433,000		125,983			—			125,983
6 month SOR	Semi-Annual	2.01%	Semi-Annual		09/18/19	(a)		09/18/24	SGD	13,000		133,659			—			133,659
0.41%	Annual	3 month STIBOR	Quarterly		09/18/19	(a)		09/18/24	SEK	151,000		(230,760	)		(5,516	)		(225,244	)
											$	22,094		$	(91,273	)	$	113,367

^(a)  Forward Swap.

OTC Interest Rate Swaps

Paid by the Fund

Received by the Fund

Rate

Frequency

Rate

Frequency

Counterparty

Effective Date

Termination Date

Notional Amount (000)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

1 day BZDIOVER

At Termination

7.98%

At Termination

BNP Paribas SA

N/A

01/02/23

BRL

43,000

$

580,412

$

—

$

580,412

1 day BZDIOVER

At Termination

8.06%

At Termination

Morgan Stanley & Co. International plc

N/A

01/02/23

BRL

41,000

593,892

—

593,892

1 day MIBOR

Semi-Annual

5.66%

Semi-Annual

Bank of America NA

09/18/19

(a)

09/18/24

INR

1,010,000

76,865

—

76,865

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

OTC Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund		Counterparty	Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
1 week CNREPOFI	Quarterly	2.89%	Quarterly	Bank of America NA		09/18/19	(a)		09/18/24	CNY	46,860	$	(17,242	)	$	—	$	(17,242	)
1 week CNREPOFI	Quarterly	3.11%	Quarterly	Bank of America NA		09/18/19	(a)		09/18/24	CNY	46,766		53,263			—		53,263
1.63%	Quarterly	3 month CD_KSDA	Quarterly	Bank of America NA		09/18/19	(a)		09/18/24	KRW	8,104,525		(78,260	)		—		(78,260	)
1.65%	Quarterly	3 month CD_KSDA	Quarterly	Bank of America NA		09/18/19	(a)		09/18/24	KRW	18,606,597		(196,716	)		—		(196,716	)
3.31%	Quarterly	3 month KLIBOR	Quarterly	Bank of America NA		09/18/19	(a)		09/18/24	MYR	36,000		21,044			—		21,044
1 day MIBOR	Semi-Annual	5.47%	Semi-Annual	Citibank NA		09/18/19	(a)		09/18/24	INR	559,000		(24,004	)		—		(24,004	)
1 week CNREPOFI	Quarterly	2.88%	Quarterly	Citibank NA		09/18/19	(a)		09/18/24	CNY	47,570		(19,104	)		—		(19,104	)
1 week CNREPOFI	Quarterly	2.89%	Quarterly	Citibank NA		09/18/19	(a)		09/18/24	CNY	47,570		(15,903	)		—		(15,903	)
1 week CNREPOFI	Quarterly	3.09%	Quarterly	Citibank NA		09/18/19	(a)		09/18/24	CNY	83,800		84,731			—		84,731
1 week CNREPOFI	Quarterly	3.09%	Quarterly	Citibank NA		09/18/19	(a)		09/18/24	CNY	77,200		78,058			—		78,058
1.62%	Quarterly	3 month CD_KSDA	Quarterly	Deutsche Bank AG		09/18/19	(a)		09/18/24	KRW	8,727,950		(82,645	)		—		(82,645	)
1.68%	Quarterly	3 month CD_KSDA	Quarterly	Deutsche Bank AG		09/18/19	(a)		09/18/24	KRW	26,221,520		(308,340	)		—		(308,340	)
1.68%	Quarterly	3 month CD_KSDA	Quarterly	Deutsche Bank AG		09/18/19	(a)		09/18/24	KRW	13,298,480		(157,761	)		—		(157,761	)
1 day MIBOR	Semi-Annual	5.63%	Semi-Annual	HSBC Bank plc		09/18/19	(a)		09/18/24	INR	361,181		20,228			—		20,228
1 day MIBOR	Semi-Annual	5.65%	Semi-Annual	HSBC Bank plc		09/18/19	(a)		09/18/24	INR	721,820		49,354			—		49,354
1.65%	Quarterly	3 month CD_KSDA	Quarterly	HSBC Bank plc		09/18/19	(a)		09/18/24	KRW	18,603,806		(193,588	)		—		(193,588	)
1.65%	Quarterly	3 month CD_KSDA	Quarterly	HSBC Bank plc		09/18/19	(a)		09/18/24	KRW	18,606,597		(199,427	)		—		(199,427	)
6 month THBFIX	Semi-Annual	1.62%	Semi-Annual	HSBC Bank plc		09/18/19	(a)		09/18/24	THB	565,000		(63,792	)		—		(63,792	)
3.31%	Quarterly	3 month KLIBOR	Quarterly	JPMorgan Chase Bank NA		09/18/19	(a)		09/18/24	MYR	36,000		23,029			—		23,029
1.62%	Quarterly	3 month CD_KSDA	Quarterly	Morgan Stanley & Co. International plc		09/18/19	(a)		09/18/24	KRW	6,604,525		(61,851	)		—		(61,851	)
												$	162,243		$	—	$	162,243

^(a)  Forward Swap.

OTC Total Return Swaps

Reference Entity	Fixed Amount Paid / (Received) by the Fund (a)		Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Taiwan Capitalization Weighted Stock Index Futures July 2019	TWD	165,275,774	Merrill Lynch International & Co.		07/17/19	TWD	165,276	$	127,375	$	—	$	127,375
KOSPI 200 Index Futures September 2019	KRW	4,874,943,600	Merrill Lynch International & Co.		09/11/19	KRW	4,874,944		118,007		—		118,007
KOSPI 200 Index Futures September 2019	KRW	4,468,698,300	Merrill Lynch International & Co.		09/11/19	KRW	4,468,698		108,173		—		108,173
KOSPI 200 Index Futures September 2019	KRW	2,166,641,600	Merrill Lynch International & Co.		09/11/19	KRW	2,166,642		52,447		—		52,447
KOSPI 200 Index Futures September 2019	KRW	3,520,792,600	Merrill Lynch International & Co.		09/11/19	KRW	3,520,793		85,227		—		85,227

16 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

OTC Total Return Swaps (continued)

Reference Entity	Fixed Amount Paid / (Received) by the Fund (a)		Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
KOSPI 200 Index Futures September 2019	KRW	1,218,735,900	Merrill Lynch International & Co.		09/11/19	KRW	1,218,736	$	29,501	$	—	$	29,501
KOSPI 200 Index Futures September 2019	KRW	2,098,934,050	Merrill Lynch International & Co.		09/11/19	KRW	2,098,934		50,808		—		50,808
KOSPI 200 Index Futures September 2019	KRW	473,952,850	Merrill Lynch International & Co.		09/11/19	KRW	473,953		11,473		—		11,473
KOSPI 200 Index Futures September 2019	KRW	3,249,962,400	Merrill Lynch International & Co.		09/11/19	KRW	3,249,962		78,672		—		78,672
KOSPI 200 Index Futures September 2019	KRW	8,463,443,750	Merrill Lynch International & Co.		09/11/19	KRW	8,463,444		204,873		—		204,873
KOSPI 200 Index Futures September 2019	KRW	1,147,148,525	Merrill Lynch International & Co.		09/11/19	KRW	1,147,149		31,222		—		31,222
								$	897,778	$	—	$	897,778

^(a)  At termination, the fixed amount paid (received) will be exchanged for the total return of the reference entity.

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate		0.25	%
1 day MIBOR	Mumbai Interbank Offered Rate		5.97	%
1 week CNREPOFI	China Fixing Repo Rates		2.63	%
28 day MXIBTIIE	Mexico Interbank TIIE28-Day		8.49	%
3 month BA	Canadian Bankers Acceptances		1.97	%
3 month CD_KSDA	Certificates of Deposit by the Korean Securities Dealers Association		1.70	%
3 month HIBOR	Hong Kong Interbank Offered Rate		2.46	%
3 month JIBAR	Johannesburg Interbank Average Rate		7.03	%
3 month KLIBOR	Kuala Lumpur Interbank Offered Rate		3.46	%
3 month LIBOR	London Interbank Offered Rate		2.32	%
3 month STIBOR	Stockholm Interbank Offered Rate		(0.03	%)
6 month BBR	Australian Bank Bill Rate		1.22	%
6 month EURIBOR	Euro Interbank Offered Rate		(0.31	%)
6 month LIBOR GBP	London Interbank Offered Rate		0.85	%
6 month SOR	Singapore Interbank Offered Rate		1.74	%
6 month THBFIX	Thai Baht Interest Rate Fixing		1.48	%
6 month WIBOR	Warsaw Interbank Offered Rate		1.69	%

Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	30,663	$	(121,936	)	$	3,839,819	$	(3,726,452	)
OTC Swaps		—		—			2,478,654		(1,418,633	)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

SCHEDULE OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	513,111	$	—	$	2,018,694	$	—	$	2,531,805
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		2,002,351		—		—		2,002,351
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		3,839,819		—		3,839,819
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		—		897,778		—		1,580,876		—		2,478,654
	$	—	$	—	$	1,410,889	$	2,002,351	$	7,439,389	$	—	$	10,852,629
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		3,689,537		—		2,127,458		—		5,816,995
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		1,879,523		—		—		1,879,523
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		3,726,452		—		3,726,452
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		—		—		—		1,418,633		—		1,418,633
	$	—	$	—	$	3,689,537	$	1,879,523	$	7,272,543	$	—	$	12,841,603

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	(11,764,893	)	$	—		$	1,223,277		$	—	$	(10,541,616	)
Forward foreign currency exchange contracts		—		—		—			(2,276,168	)		—			—		(2,276,168	)
Swaps		—		—		(344,921	)		—			(1,527,835	)		—		(1,872,756	)
	$	—	$	—	$	(12,109,814	)	$	(2,276,168	)	$	(304,558	)	$	—	$	(14,690,540	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		(8,590,113	)		—			(2,336,361	)		—		(10,926,474	)
Forward foreign currency exchange contracts		—		—		—			214,135			—			—		214,135
Swaps		—		—		1,186,529			—			3,877,327			—		5,063,856
	$	—	$	—	$	(7,403,584	)	$	214,135		$	1,540,966		$	—	$	(5,648,483	)

18 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	181,534,073
Average notional value of contracts — short		368,139,236
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		156,746,461
Average amounts sold — in USD		158,649,184
Interest rate swaps:
Average notional value — pays fixed rate		490,937,442
Average notional value — receives fixed rate		737,451,394
Total return swaps:
Average notional value		118,646,215

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	558,267		$	1,292,453
Forward foreign currency exchange contracts		2,002,351			1,879,523
Swaps — Centrally cleared		—			241,889
Swaps — OTC(a)		2,478,654			1,418,633
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	5,039,272		$	4,832,498
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(558,267	)		(1,534,342	)
Total derivative assets and liabilities subject to an MNA	$	4,481,005		$	3,298,156

^(a)  Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statement of Assets and Liabilities.

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received (b)			Net Amount of Derivative Assets (c)
Bank of America NA	$	195,309	$	(195,309	)	$	—	$	—		$	—
Barclays Bank plc		36,198		(36,198	)		—		—			—
BNP Paribas SA		1,060,621		(112,324	)		—		(610,000	)		338,297
Citibank NA		234,709		(234,709	)		—		—			—
Goldman Sachs International		242		(242	)		—		—			—
HSBC Bank plc		90,780		(90,780	)		—		—			—
JPMorgan Chase Bank NA		414,066		(165,401	)		—		—			248,665
Merrill Lynch International & Co.		897,778		—			—		(897,778	)		—
Morgan Stanley & Co. International plc		1,465,057		(804,640	)		—		(430,000	)		230,417
Toronto Dominion Bank		49,803		(1,202	)		—		—			48,601
UBS AG		36,442		(36,442	)		—		—			—
	$	4,481,005	$	(1,677,247	)	$	—	$	(1,937,778	)	$	865,980

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (d)			Net Amount of Derivative Liabilities (e)
Bank of America NA	$	458,457	$	(195,309	)	$	—	$	(263,148	)	$	—
Barclays Bank plc		76,734		(36,198	)		—		—			40,536
BNP Paribas SA		112,324		(112,324	)		—		—			—
Canadian Imperial Bank of Commerce		4,804		—			—		—			4,804
Citibank NA		489,816		(234,709	)		—		—			255,107
Deutsche Bank AG		548,746		—			—		—			548,746
Goldman Sachs International		55,367		(242	)		—		—			55,125
HSBC Bank plc		526,792		(90,780	)		—		(436,012	)		—
JPMorgan Chase Bank NA		165,401		(165,401	)		—		—			—
Morgan Stanley & Co. International plc		804,640		(804,640	)		—		—			—
Toronto Dominion Bank		1,202		(1,202	)		—		—			—
UBS AG		53,873		(36,442	)		—		—			17,431
	$	3,298,156	$	(1,677,247	)	$	—	$	(699,160	)	$	921,749

^(a)  The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

^(c)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(d)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(e)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(f)  Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	1,707,371	$	966,334	$	—	$	2,673,705
Air Freight & Logistics		5,025,696		—		—		5,025,696
Airlines		1,936,596		94,100		—		2,030,696
Automobiles		1,358,612		1,895,107		—		3,253,719
Banks		7,134,121		6,413,282		—		13,547,403
Beverages		—		575,273		—		575,273
Biotechnology		3,912,166		453,363		—		4,365,529
Building Products		91,310		87,125		—		178,435
Capital Markets		2,786,366		1,855,908		—		4,642,274
Chemicals		2,023,952		1,950,295		—		3,974,247
Commercial Services & Supplies		428,001		1,399,013		—		1,827,014
Construction & Engineering		—		1,840,889		—		1,840,889
Construction Materials		—		9,108		—		9,108
Consumer Finance		876,382		65,621		—		942,003
Containers & Packaging		909,057		111,344		—		1,020,401
Distributors		—		8,039		—		8,039
Diversified Financial Services		1,404,721		482,249		—		1,886,970
Diversified Telecommunication Services		1,976,779		968,666		—		2,945,445
Electric Utilities		3,799,754		1,187,672		—		4,987,426
Electrical Equipment		1,195,220		251,676		—		1,446,896
Electronic Equipment, Instruments & Components		278,588		754,942		—		1,033,530
Energy Equipment & Services		560,390		—		—		560,390
Entertainment		2,047,699		583,632		—		2,631,331
Food & Staples Retailing		935,407		917,269		—		1,852,676
Food Products		162,672		1,350,039		—		1,512,711
Gas Utilities		—		377,433		—		377,433
Health Care Equipment & Supplies		5,156,367		1,240,986		—		6,397,353

20 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Managed Volatility V.I. Fund

	Level 1			Level 2			Level 3		Total
Health Care Providers & Services	$	3,134,657		$	818,594		$	—	$	3,953,251
Health Care Technology		276,904			—			—		276,904
Hotels, Restaurants & Leisure		362,116			259,066			—		621,182
Household Durables		86,548			68,315			—		154,863
Household Products		2,654,702			495,577			—		3,150,279
Independent Power and Renewable Electricity Producers		181,706			90,007			—		271,713
Industrial Conglomerates		484,690			1,381,360			—		1,866,050
Insurance		2,232,530			5,236,943			—		7,469,473
Interactive Media & Services		5,709,656			15,928			—		5,725,584
Internet & Direct Marketing Retail		6,585,438			6,804			—		6,592,242
IT Services		1,940,496			772,836			—		2,713,332
Life Sciences Tools & Services		1,338,435			30,277			—		1,368,712
Machinery		543,930			325,175			—		869,105
Media		2,050,274			249,301			—		2,299,575
Metals & Mining		442,993			1,142,605			—		1,585,598
Multiline Retail		109,123			26,449			—		135,572
Multi-Utilities		140,084			411,182			—		551,266
Oil, Gas & Consumable Fuels		4,015,986			3,527,120			—		7,543,106
Paper & Forest Products		—			44,603			—		44,603
Personal Products		690,963			1,981,496			—		2,672,459
Pharmaceuticals		9,975,451			5,110,834			—		15,086,285
Professional Services		981,286			406,832			—		1,388,118
Road & Rail		235,647			443,394			—		679,041
Semiconductors & Semiconductor Equipment		611,658			255,140			—		866,798
Software		2,130,276			748,304			—		2,878,580
Specialty Retail		10,329,722			276,194			—		10,605,916
Technology Hardware, Storage & Peripherals		3,017,642			179,331			—		3,196,973
Textiles, Apparel & Luxury Goods		131,078			1,118,971			—		1,250,049
Tobacco		45,030			565,473			—		610,503
Transportation Infrastructure		—			940,539			—		940,539
Wireless Telecommunication Services		601,820			919,647			—		1,521,467
Corporate Bonds(a)		—			30,579			—		30,579
Preferred Stocks(a)		—			556,734			—		556,734
Rights(a)		5,402			—			—		5,402
U.S. Treasury Obligations		—			33,384,992			—		33,384,992
Short-Term Securities		22,216,763			—			—		22,216,763
Subtotal	$	128,970,233		$	87,659,967		$	—	$	216,630,200
Investments valued at NAV(b)										3,933,967
Total Investments									$	220,564,167
Derivative Financial Instruments(c)
Assets:
Equity contracts	$	513,111		$	897,778		$	—	$	1,410,889
Foreign currency exchange contracts		—			2,002,351			—		2,002,351
Interest rate contracts		2,018,694			5,420,695			—		7,439,389
Liabilities:
Equity contracts		(3,689,537	)		—			—		(3,689,537	)
Foreign currency exchange contracts		—			(1,879,523	)		—		(1,879,523	)
Interest rate contracts		(2,127,458	)		(5,145,085	)		—		(7,272,543	)
	$	(3,285,190	)	$	1,296,216		$	—	$	(1,988,974	)

^(a)  See above Schedule of Investments for values in each industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 21

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock   Managed   Volatility V.I.   Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $3,853,737) (cost — $190,635,420)	$	194,550,846
Investments at value — affiliated (cost — $26,013,321)		26,013,321
Cash		11,159
Cash pledged:
Collateral — OTC derivatives		1,370,000
Futures contracts		18,492,000
Centrally cleared swaps		5,008,000
Foreign currency at value (cost — $4,006,529)		4,007,881
Receivables:
Investments sold		1,763,395
Securities lending income — affiliated		1,160
Dividends — affiliated		28,596
Dividends — unaffiliated		164,125
Interest — unaffiliated		303,969
Variation margin on futures contracts		558,267
Unrealized appreciation on:
Forward foreign currency exchange contracts		2,002,351
OTC swaps		2,478,654
Prepaid expenses		2,224
Other assets		581,819
Total assets		257,337,767
LIABILITIES
Cash received as collateral for OTC derivatives		2,860,000
Cash collateral on securities loaned at value		3,933,218
Payables:
Investments purchased		2,012,113
Board realignment and consolidation		32
Capital shares redeemed		113,266
Distribution fees		41,832
Investment advisory fees		79,159
Directors’ and Officer’s fees		5,388
Other affiliates		227
Variation margin on futures contracts		1,292,453
Variation margin on centrally cleared swaps		241,889
Other accrued expenses		342,527
Unrealized depreciation on:
Forward foreign currency exchange contracts		1,879,523
OTC swaps		1,418,633
Total liabilities		14,220,260
NET ASSETS	$	243,117,507
NET ASSETS CONSIST OF
Paid-in capital	$	372,418,484
Accumulated loss		(129,300,977	)
NET ASSETS	$	243,117,507
NET ASSET VALUE
Class I— Based on net assets of $11,314,292 and 838,336 shares outstanding, 100 million shares authorized, $0.10 par value	$	13.50
Class III— Based on net assets of $231,803,215 and 17,199,210 shares outstanding, 100 million shares authorized, $0.10 par value	$	13.48

See notes to financial statements.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock Managed Volatility V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	179,055
Dividends — unaffiliated		2,275,380
Interest — unaffiliated		793,596
Securities lending income — affiliated — net		12,564
Foreign taxes withheld		(179,686	)
Total investment income		3,080,909
EXPENSES
Investment advisory		678,336
Transfer agent — class specific		613,939
Distribution — class specific		293,153
Accounting services		64,274
Professional		58,505
Custodian		55,869
Directors and Officer		8,049
Printing		5,149
Transfer agent		2,344
Offering		932
Board realignment and consolidation		340
Registration		313
Miscellaneous		13,324
Total expenses		1,794,527
Less:
Fees waived and/or reimbursed by the Manager		(158,630	)
Transfer agent fees waived and/or reimbursed — class specific		(613,939	)
Total expenses after fees waived and/or reimbursed		1,021,958
Net investment income		2,058,951
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		838
Investments — unaffiliated		2,749,840
Forward foreign currency exchange contracts		(2,276,168	)
Foreign currency transactions		105,162
Futures contracts		(10,541,616	)
Swaps		(1,872,756	)
		(11,834,700	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		4
Investments — unaffiliated		16,006,101
Forward foreign currency exchange contracts		214,135
Foreign currency translations		(74,560	)
Futures contracts		(10,926,474	)
Swaps		5,063,856
		10,283,062
Net realized and unrealized loss		(1,551,638	)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	507,313

See notes to financial statements.

FINANCIAL STATEMENTS 23

Statements of Changes in Net Assets

	BlackRock Managed Volatility V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	2,058,951		$	2,349,117
Net realized gain (loss)		(11,834,700	)		23,284,490
Net change in unrealized appreciation (depreciation)		10,283,062			(24,518,062)
Net increase in net assets resulting from operations		507,313			1,115,545
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		—			(363,124)
Class III		—			(6,371,560)
Decrease in net assets resulting from distributions to shareholders		—			(6,734,684)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(5,539,730	)		239,233,033
NET ASSETS
Total increase (decrease) in net assets		(5,032,417	)		233,613,894
Beginning of period		248,149,924			14,536,030
End of period	$	243,117,507		$	248,149,924

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Managed Volatility V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	13.45		$	13.71		$	13.19		$	13.08		$	13.70		$	14.41
Net investment income (loss)(a)		0.13			0.15			0.04			0.02	(b)		(0.06	)		0.04
Net realized and unrealized gain (loss)		(0.08	)		(0.01	)		0.62			0.20			(0.01	)		0.29
Net increase (decrease) from investment operations		0.05			0.14			0.66			0.22			(0.07	)		0.33
Distributions(c)
From net investment income		—			(0.25	)		(0.05	)		(0.11	)		—			—
From net realized gain		—			(0.15	)		(0.09	)		—			(0.55	)		(1.04)
Total distributions		—			(0.40	)		(0.14	)		(0.11	)		(0.55	)		(1.04)
Net asset value, end of period	$	13.50		$	13.45		$	13.71		$	13.19		$	13.08		$	13.70
Total Return(d)
Based on net asset value		0.37	%(e)		1.02	%		4.98	%		1.71	%(f)		(0.57	)%		2.28%
Ratios to Average Net Assets(g)
Total expenses		0.91	%(h)		1.21	%		1.48	%		1.39	%		1.47	%		1.60%
Total expenses after fees waived and/or reimbursed		0.59	%(h)		0.71	%		0.89	%		0.94	%		1.00	%		1.07%
Net investment income (loss)		1.92	%(h)		1.09	%		0.29	%		0.18	%(b)		(0.46	)%		0.25%
Supplemental Data
Net assets, end of period (000)	$	11,314		$	12,571		$	14,536		$	15,895		$	18,180		$	21,283
Portfolio turnover rate		164	%		319	%		0	%		1	%		13	%		64%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets includes $0.02 per share and 0.19%, respectively, resulting from a one time payment from a third party administrator.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Includes reimbursements of out of pocket expenses from a third party administrator. Excluding this amount, the Fund’s total return is 1.48%.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.03	%		0.23	%		0.25	%		0.23	%		0.23%

^(h) Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 25

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Managed Volatility V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Period from   02/14/18 (a)   to 12/31/18
Net asset value, beginning of period	$	13.45		$	13.70
Net investment income(b)		0.11			0.15
Net realized and unrealized (loss)		(0.08	)		(0.02)
Net increase from investment operations		0.03			0.13
Distributions(c)
From net investment income		—			(0.23)
From net realized gain		—			(0.15)
Total distributions		—			(0.38)
Net asset value, end of period	$	13.48		$	13.45
Total Return(d)
Based on net asset value		0.22	%(e)		0.90%(e)
Ratios to Average Net Assets(f)
Total expenses		1.48	%(g)		0.99%(g)
Total expenses after fees waived and/or reimbursed		0.84	%(g)		0.84%(g)
Net investment income		1.66	%(g)		1.22%(g)
Supplemental Data
Net assets, end of period (000)	$	231,803		$	235,579
Portfolio turnover rate		164	%		319%(h)

^(a)  Recommencement of operations.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended 06/30/19 (unaudited)			Period from   02/14/18(a)   to 12/31/18
Investments in underlying funds		0.01	%		0.03%

^(g)  Annualized.

^(h)  Portfolio turnover rate is representative of the Fund for the entire year.

See notes to financial statements.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Managed Volatility V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares. Class III Shares recommenced operations on February 14, 2018.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganization: The Board, the Board of Trustees of HIMCO Variable Insurance Trust and shareholders of the Target Fund approved the reorganization of the Target Fund into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the Target Fund in exchange for an equal aggregate value of newly-issued Class III Shares of the Fund.

Each shareholder of the Target Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on April 20, 2018, less the costs of the Target Fund’s reorganization.

The reorganization was accomplished by atax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

Target Fund’s Share Class	Shares Prior to Reorganization		Conversion Ratio		Managed Volatility V.I. Fund’s Share Class		Shares of Managed Volatility V.I. Fund
Class IB		39,633,345		0.49126053		Class III		19,470,298

The Target Fund’s net assets and composition of net assets as of the close of business on April 20, 2018, the valuation date of the reorganization, were as follows:

Target Fund	Net Assets		Paid-In Capital		Accumulated Loss
HIMCO VIT Portfolio Diversifier Fund	$	268,343,917	$	392,342,469	$	(123,998,552	)

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Fund realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the acquisition were $13,676,731. The aggregate net assets of the Fund immediately after the acquisition amounted to $282,020,648. The Target Fund’s fair value and cost of investments prior to the reorganization were as follows:

Target Fund	Fair Value of Investments	Cost of Investments
HIMCO VIT Portfolio Diversifier Fund	$202,633,700	$186,254,411

The purpose of the transaction was to combine the assets of the Target Fund with the assets of the Fund. The reorganization was atax-free event and closed on April 23, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $3,467,734

• Net realized and change in unrealized loss on investments: $(7,842,825)

• Net decrease in net assets resulting from operations: $(4,375,091)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since April 23, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and

NOTESTO FINANCIAL STATEMENTS 27

Notes to Financial Statements  (unaudited) (continued)

discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts, forward foreign currency exchange contracts and swaps) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Offering Costs: Offering costs are amortized over a 12–month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-tradedover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

• Swap agreements are valued utilizing quotes received daily by the Fund’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

NOTESTO FINANCIAL STATEMENTS 29

Notes to Financial Statements  (unaudited) (continued)

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as investment companies in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value-unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Barclays Capital Inc.	$	245,180	$	(245,180	)	$	—
Citigroup Global Markets Inc		798,233		(798,233	)		—
Credit Suisse Securities (USA) LLC		42,996		(42,996	)		—
Fidelity Investments		58,299		(58,299	)		—
Jefferies & Co.		22,737		(22,737	)		—
JP Morgan Securities LLC		1,896,886		(1,896,886	)		—
Morgan Stanley & Co. LLC		789,406		(789,406	)		—
	$	3,853,737	$	(3,853,737	)	$	—

^(a) Cash collateral with a value of $3,933,218 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable)

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure, to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed.Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amounts reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

• Total return swaps — Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one market (e.g., fixed-income) with another market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instrument(s) or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

• Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

NOTESTO FINANCIAL STATEMENTS 31

Notes to Financial Statements  (unaudited) (continued)

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting themark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively.Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell,re-pledge or use cash andnon-cash collateral it receives. The Fund generally agrees not to usenon-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its/ counterparties are not fully collateralized, it bears the risk of loss from counterpartynon-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.55	%
$1 Billion — $3 Billion		0.52
$3 Billion — $5 Billion		0.50
$5 Billion — $10 Billion		0.48
Greater than $10 Billion		0.47

The Manager entered intosub-advisory agreements with BlackRock International Limited (“BIL”), BlackRock Asset Management North Asia Limited (“BNA”) and BlackRock (Singapore) Limited (“BSL”), each an affiliate of the Manager. The Manager pays each of BIL, BNA and BSL, for services they provide for that portion of the Fund for which BIL, BNA and BSL acts assub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

Service and Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $293,153.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	11,808
Class III		602,131
	$	613,939

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $5,495.

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $1,112 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse all transfer agent fees for Class I Shares and Class III Shares. The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$        11,808
Class III		602,131
		$      613,939

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	0.59	%
Class III	0.84

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived and/or reimbursed was $153,135.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $2,360 for securities lending agent services.

lnterfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “lnterfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the lnterfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

NOTESTO FINANCIAL STATEMENTS 33

Notes to Financial Statements  (unaudited) (continued)

During the period ended June 30, 2019, the Fund did not participate in the lnterfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, including paydowns and excluding short-term securities, were as follows:

	Purchases		Sales
Non-U.S. Government Securities	$	323,816,937	$	319,545,747
U.S. Government Securities		2,524,809		25,513,132

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of December 31, 2018, the Fund had a capital loss carryforward available to offset future realized capital gains of $111,405,144, with no expiration date.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	218,506,349
Gross unrealized appreciation	$	15,156,551
Gross unrealized depreciation		(15,087,707	)
Net unrealized appreciation	$	68,844

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		9,372		$	127,034			26,476		$	367,264
Shares issued in reinvestment of distributions		—			—			26,995			363,124
Shares redeemed		(105,729	)		(1,425,870	)		(178,879	)		(2,476,164)
Net decrease		(96,357	)	$	(1,298,836	)		(125,408	)	$	(1,745,776)
Class III
Shares sold		1,530,666		$	20,782,860			725,363		$	10,018,545
Shares issued in reinvestment of distributions		—			—			474,003			6,371,288
Shares issued in reorganization		—			—			19,470,298			268,343,917
Shares redeemed		(1,850,648	)		(25,023,754	)		(3,150,472	)		(43,754,941)
Net increase (decrease)		(319,982	)	$	(4,240,894	)		17,519,192		$	240,978,809
Total Net Increase (Decrease)		(416,339	)	$	(5,539,730	)		17,393,784		$	239,233,033

As of June 30, 2019, BlackRock Financial Management, Inc., an affiliate of the Fund, owned 730 Class III shares of BlackRock Managed Volatility V.I. Fund.

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 35

Glossary of Terms Used in this Report

Currency
AUD		Australian Dollar
BRL		Brazilian Real
CAD		Canadian Dollar
CHF		Swiss Franc
CNY		Chinese Yuan
EUR		Euro
GBP		British Pound
HKD		Hong Kong Dollar
INR		Indian Rupee
JPY		Japanese Yen
KRW		South Korean Won
MXN		Mexican Peso
MYR		Malaysian Ringgit
NOK		Norwegian Krone
NZD		New Zealand Dollar
PLN		Polish Zloty
SEK		Swedish Krona
SGD		Singapore Dollar
THB	��	Thai Baht
TWD		Taiwan New Dollar
USD		United States Dollar
ZAR		South African Rand
Portfolio Abbreviations
ADR		American Depositary Receipts
BA		Canadian Bankers Acceptances
BBR		Australian Bank Bill Rate
BZDIOVER		Overnight Brazil CETIP — Interbank Rate
CAC		Cotation Assistée en Continu (French Stock Exchange)
CD_KSDA		Certificates of Deposit by the Korean Securities Dealers Association
CNREPOFI		Day China Fixing Repo Rates
CVA		Certification Van Aandelon (Dutch Certificate)
DAX		Deutscher Aktien Index
EURIBOR		Euro Interbank Offered Rate
FDR		Fiduciary Depositary Receipt
HIBOR		Hong Kong Interbank Offered Rate
IBEX		Bolsa de Madrid (Spain Stock Exchange)
JIBAR		Johannesburg Interbank Average Rate
KLIBOR		Kuala Lumpur Interbank Offered Rate
LIBOR		London Interbank Offered Rate
MIB		Milano Italia Borsa
MIBOR		Mumbai Interbank Offered Rate
MSCI		Morgan Stanley Capital International
MXIBTIIE		Mexico Interbank TIIE28-Day
OMX		Stockholm Nordic Exchange
OTC		Over-the-counter
SOR		Singapore Interbank Offered Rate
STIBOR		Stockholm Interbank Offered Rate
THBFIX		Thai Baht Interest Rate Fixing
TOPIX		Tokyo Stock Price Index
WIBOR		Warsaw Interbank Offered Rate

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock S&P 500 Index V.I. Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock S&P 500 Index V.I. Fund

Investment Objective

BlackRock S&P 500 Index V.I. Fund’s (the “Fund”) investment objective is to seek investment results that, before expenses, correspond to the aggregate price and yield performance of the Standard and Poor’s (“S&P”) 500^® Index.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund’s Class I, Class II and Class III Shares returned 18.49%, 18.41% and 18.36%, respectively, while the benchmark S&P 500^® Index returned 18.54%.

Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses.

Describe the market environment.

U.S. equities, as represented by the S&P 500^® Index, increased +13.6% in the first quarter of 2019. This was the best quarterly return since 2009 and marked the best start to the year since 1998.

All eleven of the Global Industry Classification Standard (“GICS”) sectors advanced in the first quarter of 2019 as positive headlines regarding Sino-American trade negotiations, relatively strong corporate earnings growth, and the Fed’s dovish pivot helped investor sentiment recover from steep losses in the fourth quarter of 2018. The technology sector outperformed and was responsible for 29% of the S&P 500^® Index’s overall rally. Real estate was the second best-performing sector as a decline in interest rates throughout the quarter drove demand for bond proxies. Health care shares underperformed as political risks weighed on sentiment, but still posted a respectable gain.

In its January announcement, the Fed indicated that it would refrain from interest rate hikes for the foreseeable future, with a dovish assessment of U.S. economic conditions and transparency around balance sheet normalization. This reduced market-based expectations of interest rate hikes, serving as a boon for both equities and bonds.

On the macro front, despite a35-day government shutdown and global economic weakness, the U.S. economy continued to exhibit a tight labor market, low inflation, and slowing but stable economic growth. The U.S. unemployment rate held at 3.8% in February, the lowest level since 1969. Core personal consumption expenditure dropped to 1.8% year-over-year in January, below the Fed’s inflation target of 2%.

Less optimism was evident in the U.S. rates market. The pause in interest rate hiking by the Fed coupled with lowered forecasts for growth drove investors into longer-duration government bonds. The yield on the10-year U.S. Treasury dropped from a first quarter high of 2.78% inmid-January to 2.4% at quarter end. The bid for long-term debt coupled with high short-term rates (Fed fund target rate remained at 2.5% at the quarter’s end) catalyzed an inversion of thethree-month/10-year Treasury spread. This spread is the Fed’s preferred measure for calculating recession probabilities and its inversion has preceded every U.S. recession since the 1950s.

While all sector returns were positive in the first quarter of 2019, the strongest returns in the S&P 500^® Index came from information technology (+19.9%), real estate (+17.5%) and industrials (+17.2%). The lowest sector returns came from health care (+6.6%), followed by financials (+8.6%) and materials (+10.3%).

The prospect of an easier monetary policy buoyed equities broadly in the second quarter of 2019. In the June Federal Open Market Committee announcement, Fed Chair Jerome Powell noted that should trade tensions weigh on the committee’s economic outlook or should the shortfall of inflation from the target rate persist longer than expected, the Fed would provide more accommodation to sustain the expansion.

Trade tensions were a source of intra-quarter volatility. In May, President Trump threatened an increase in tariffs and protectionism against both China and Mexico. The S&P 500^® Index fell-6.4% in May on these renewed trade concerns. However, these announcements did not materialize, and sentiment eased heading into theG-20 meeting at June month end.

Looking to interest rates, the10-year U.S. Treasury yield declined 0.50% in the second quarter to 2% — the lowest level since 2016. The yield curve remained a source of uncertainty as thethree-month/10-year Treasury spread remained in negative territory while thefive-year/30-year Treasury spread expanded throughout the quarter.

Ten out of the eleven GICS sectors advanced in the second quarter of 2019. The financial sector (+8.0%) outperformed and was responsible for 1% of the S&P 500^® Index’s overall rally, despite a general decline in interest rates throughout the quarter. The materials sector (+6.2%) was the second best-performing sector followed by information technology (+6.1%). The energy sector(-2.8%) was the only sector to finish in negative territory.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the S&P 500^® Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock S&P 500 Index V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns(a)
	6-Month Total Returns (a)			1 Year			5 Years			10 Years
Class I(b)(c)		18.49	%		10.27	%		10.42	%		14.34	%
Class II(b)(c)		18.41			10.11			10.25			14.19
Class III(b)(c)		18.36			10.03			10.15	(d)		14.06	(d)
S&P 500®Index(e)		18.54			10.42			10.71			14.70

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund invests at least 80% of its assets in the common stocks represented in the S&P 500^®Index and in derivative instruments linked to the S&P 500^®Index.

^(d)  The returns for Class III Shares prior to February 14, 2018, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution(12b-1) fees applicable to Class III Shares.

^(e)  An unmanaged index that covers 500 leading companies and captures approximately 80% coverage of available market capitalization.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,184.90	$	0.76	$	1,000.00	$	1,024.10	$	0.70		0.14	%
Class II		1,000.00		1,184.10		1.57		1,000.00		1,023.36		1.45		0.29
Class III		1,000.00		1,183.60		2.11		1,000.00		1,022.86		1.96		0.39

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Information Technology		22	%
Health Care		14
Financials		13
Consumer Discretionary		10
Communication Services		10
Industrials		10
Consumer Staples		7
Energy		5
Utilities		3
Real Estate		3
Materials		3
Short-Term Securities		3
Liabilities in Excess of Other Assets		(3	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 99.6%
Aerospace & Defense — 2.6%
Arconic, Inc.		31,764	$	820,147
Boeing Co. (The)		41,612		15,147,184
General Dynamics Corp.		21,381		3,887,493
Harris Corp.		9,434		1,784,252
Huntington Ingalls Industries, Inc.		3,368		756,924
L3 Technologies, Inc.		6,251		1,532,558
Lockheed Martin Corp.		19,413		7,057,402
Northrop Grumman Corp.		13,426		4,338,075
Raytheon Co.		22,227		3,864,831
Textron, Inc.		19,033		1,009,510
TransDigm Group, Inc.(a)(b)		3,841		1,858,276
United Technologies Corp.		64,131		8,349,856
				50,406,508
Air Freight & Logistics — 0.6%
CH Robinson Worldwide, Inc.(a)		11,006		928,356
Expeditors International of Washington, Inc.		13,736		1,042,013
FedEx Corp.		18,857		3,096,131
United Parcel Service, Inc., Class B		55,053		5,685,323
				10,751,823
Airlines — 0.4%
Alaska Air Group, Inc.		9,768		624,273
American Airlines Group, Inc.(a)		31,212		1,017,823
Delta Air Lines, Inc.		47,224		2,679,962
Southwest Airlines Co.		39,255		1,993,369
United Continental Holdings, Inc.(b)		17,933		1,570,034
				7,885,461
Auto Components — 0.1%
Aptiv plc		20,844		1,684,821
BorgWarner, Inc.		14,842		623,067
				2,307,888
Automobiles — 0.4%
Ford Motor Co.(a)		309,259		3,163,720
General Motors Co.		103,459		3,986,275
Harley-Davidson, Inc.(a)		12,940		463,640
				7,613,635
Banks — 5.5%
Bank of America Corp.(a)		700,971		20,328,159
BB&T Corp.		60,400		2,967,452
Citigroup, Inc.		183,314		12,837,479
Citizens Financial Group, Inc.		35,139		1,242,515
Comerica, Inc.		12,099		878,871
Fifth Third Bancorp		57,643		1,608,240
First Republic Bank		13,226		1,291,519
Huntington Bancshares, Inc.		78,778		1,088,712
JPMorgan Chase & Co.		257,156		28,750,041
KeyCorp.		80,578		1,430,260
M&T Bank Corp.		11,104		1,888,457
People’s United Financial, Inc.		29,867		501,168
PNC Financial Services Group, Inc. (The)		35,928		4,932,196
Regions Financial Corp.		81,847		1,222,794
SunTrust Banks, Inc.		34,901		2,193,528
SVB Financial Group(b)		4,216		946,871
US Bancorp		119,504		6,262,010
Wells Fargo & Co.(a)		320,647		15,173,016
Zions Bancorp		14,971		688,367
				106,231,655
Beverages — 1.9%
Brown-Forman Corp., Class B(a)		13,483		747,363
Coca-Cola Co. (The)		304,748		15,517,768

Security	Shares		Value
Beverages (continued)
Constellation Brands, Inc., Class A		13,126	$	2,585,034
Molson Coors Brewing Co., Class B		15,181		850,136
Monster Beverage Corp.(b)		30,732		1,961,624
PepsiCo, Inc.		111,180		14,579,033
				36,240,958
Biotechnology — 2.2%
AbbVie, Inc.		116,774		8,491,805
Alexion Pharmaceuticals, Inc.(b)		17,615		2,307,213
Amgen, Inc.		48,351		8,910,122
Biogen, Inc.(b)		15,563		3,639,719
Celgene Corp.(b)		55,594		5,139,109
Gilead Sciences, Inc.		101,305		6,844,166
Incyte Corp.(b)		14,327		1,217,222
Regeneron Pharmaceuticals, Inc.(b)		6,184		1,935,592
Vertex Pharmaceuticals, Inc.(b)		20,143		3,693,823
				42,178,771
Building Products — 0.3%
Allegion plc		7,583		838,301
AO Smith Corp.		10,276		484,616
Fortune Brands Home & Security, Inc.		11,342		647,968
Johnson Controls International plc		63,083		2,605,959
Masco Corp.		23,500		922,140
				5,498,984
Capital Markets — 2.7%
Affiliated Managers Group, Inc.		3,581		329,953
Ameriprise Financial, Inc.		10,838		1,573,244
Bank of New York Mellon Corp. (The)		69,196		3,055,004
BlackRock, Inc.(a)*		9,432		4,426,438
Cboe Global Markets, Inc.		9,082		941,168
Charles Schwab Corp. (The)		93,942		3,775,529
CME Group, Inc.		28,348		5,502,630
E*TRADE Financial Corp.		18,817		839,238
Franklin Resources, Inc.(a)		23,766		827,057
Goldman Sachs Group, Inc. (The)		27,165		5,557,959
Intercontinental Exchange, Inc.		45,035		3,870,308
Invesco Ltd.(a)		32,206		658,935
MarketAxess Holdings, Inc.		2,986		959,760
Moody’s Corp.		13,130		2,564,420
Morgan Stanley		102,417		4,486,889
MSCI, Inc.		6,781		1,619,235
Nasdaq, Inc.		9,406		904,575
Northern Trust Corp.		17,504		1,575,360
Raymond James Financial, Inc.		10,291		870,104
S&P Global, Inc.		19,696		4,486,552
State Street Corp.		30,421		1,705,401
T. Rowe Price Group, Inc.		18,354		2,013,617
				52,543,376
Chemicals — 2.0%
Air Products & Chemicals, Inc.		17,407		3,940,423
Albemarle Corp.(a)		8,474		596,654
Celanese Corp.		9,806		1,057,087
CF Industries Holdings, Inc.		18,074		844,237
Corteva, Inc.(b)		59,619		1,762,934
Dow, Inc.		59,356		2,926,844
DuPont de Nemours, Inc.		59,619		4,475,598
Eastman Chemical Co.		10,181		792,387
Ecolab, Inc.		20,179		3,984,142
FMC Corp.		10,776		893,869
International Flavors & Fragrances, Inc.(a)		7,960		1,154,916
Linde plc		43,026		8,639,621
LyondellBasell Industries NV, Class A		23,537		2,027,242
Mosaic Co. (The)		28,376		710,251

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Chemicals (continued)
PPG Industries, Inc.		18,950	$	2,211,655
Sherwin-Williams Co. (The)		6,482		2,970,636
				38,988,496
Commercial Services & Supplies — 0.4%
Cintas Corp.		6,773		1,607,165
Copart, Inc.(b)		15,774		1,178,949
Republic Services, Inc.		17,330		1,501,471
Rollins, Inc.(a)		11,856		425,275
Waste Management, Inc.		30,760		3,548,781
				8,261,641
Communications Equipment — 1.2%
Arista Networks, Inc.(b)		4,202		1,090,923
Cisco Systems, Inc.(a)		339,341		18,572,133
F5 Networks, Inc.(b)		4,820		701,937
Juniper Networks, Inc.		28,296		753,522
Motorola Solutions, Inc.		12,881		2,147,649
				23,266,164
Construction & Engineering — 0.1%
Jacobs Engineering Group, Inc.		9,306		785,334
Quanta Services, Inc.		11,428		436,435
				1,221,769
Construction Materials — 0.1%
Martin Marietta Materials, Inc.		5,021		1,155,382
Vulcan Materials Co.		10,532		1,446,149
				2,601,531
Consumer Finance — 0.7%
American Express Co.(a)		54,775		6,761,426
Capital One Financial Corp.		36,760		3,335,602
Discover Financial Services		25,764		1,999,029
Synchrony Financial		51,398		1,781,969
				13,878,026
Containers & Packaging — 0.4%
Amcor plc(b)		129,482		1,487,748
Avery Dennison Corp.		6,808		787,550
Ball Corp.		26,788		1,874,892
International Paper Co.		32,188		1,394,384
Packaging Corp. of America		6,990		666,287
Sealed Air Corp.		12,451		532,654
Westrock Co.		20,786		758,065
				7,501,580
Distributors — 0.1%
Genuine Parts Co.		11,660		1,207,743
LKQ Corp.(b)		25,315		673,632
				1,881,375
Diversified Consumer Services — 0.0%
H&R Block, Inc.(a)		16,849		493,676
Diversified Financial Services — 1.7%
Berkshire Hathaway, Inc., Class B(b)		153,613		32,745,683
Jefferies Financial Group, Inc.		21,331		410,195
				33,155,878
Diversified Telecommunication Services — 2.0%(a)
AT&T, Inc.		576,589		19,321,497
CenturyLink, Inc.		76,930		904,697
Verizon Communications, Inc.		327,092		18,686,766
				38,912,960
Electric Utilities — 2.0%
Alliant Energy Corp.		16,779		823,513
American Electric Power Co., Inc.		39,146		3,445,240

Security	Shares		Value
Electric Utilities (continued)
Duke Energy Corp.		57,602	$	5,082,801
Edison International		25,556		1,722,730
Entergy Corp.		15,167		1,561,139
Evergy, Inc.		20,647		1,241,917
Eversource Energy		24,631		1,866,045
Exelon Corp.		76,878		3,685,531
FirstEnergy Corp.		40,384		1,728,839
NextEra Energy, Inc.		38,051		7,795,128
Pinnacle West Capital Corp.		8,107		762,788
PPL Corp.		57,844		1,793,742
Southern Co. (The)		82,172		4,542,468
Xcel Energy, Inc.		41,354		2,460,149
				38,512,030
Electrical Equipment — 0.5%
AMETEK, Inc.		17,368		1,577,709
Eaton Corp. plc		33,304		2,773,557
Emerson Electric Co.		48,454		3,232,851
Rockwell Automation, Inc.		9,614		1,575,062
				9,159,179
Electronic Equipment, Instruments & Components — 0.5%
Amphenol Corp., Class A		23,173		2,223,218
Corning, Inc.(a)		63,210		2,100,468
FLIR Systems, Inc.		11,031		596,777
IPG Photonics Corp.(b)		2,812		433,751
Keysight Technologies, Inc.(b)		14,751		1,324,788
TE Connectivity Ltd.		26,731		2,560,295
				9,239,297
Energy Equipment & Services — 0.5%
Baker Hughes a GE Co., Class A		41,288		1,016,924
Halliburton Co.		70,172		1,595,711
Helmerich & Payne, Inc.		8,874		449,202
National Oilwell Varco, Inc.		30,887		686,618
Schlumberger Ltd.		108,741		4,321,367
TechnipFMC plc(a)		34,439		893,348
				8,963,170
Entertainment — 2.0%
Activision Blizzard, Inc.		60,370		2,849,464
Electronic Arts, Inc.(b)		23,644		2,394,192
Netflix, Inc.(b)		34,548		12,690,171
Take-Two Interactive Software, Inc.(b)		9,061		1,028,695
Viacom, Inc., Class B		28,483		850,787
Walt Disney Co. (The)		138,262		19,306,906
				39,120,215
Equity Real Estate Investment Trusts (REITs) — 2.9%
Alexandria Real Estate Equities, Inc.		9,009		1,271,080
American Tower Corp.		34,988		7,153,297
Apartment Investment & Management Co., Class A		11,631		582,946
AvalonBay Communities, Inc.		10,567		2,147,003
Boston Properties, Inc.		12,388		1,598,052
Crown Castle International Corp.		32,943		4,294,120
Digital Realty Trust, Inc.		16,693		1,966,268
Duke Realty Corp.		29,031		917,670
Equinix, Inc.		6,593		3,324,784
Equity Residential		29,640		2,250,269
Essex Property Trust, Inc.		5,283		1,542,266
Extra Space Storage, Inc.		10,317		1,094,634
Federal Realty Investment Trust		5,200		669,552
HCP, Inc.(a)		38,142		1,219,781
Host Hotels & Resorts, Inc.		59,551		1,085,019
Iron Mountain, Inc.(a)		22,928		717,646
Kimco Realty Corp.(a)		33,501		619,098

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Macerich Co. (The)(a)		8,673	$	290,459
Mid-America Apartment Communities, Inc.		9,170		1,079,859
Prologis, Inc.		49,889		3,996,109
Public Storage		11,891		2,832,079
Realty Income Corp.		24,379		1,681,420
Regency Centers Corp.		12,255		817,899
SBA Communications Corp.(b)		9,055		2,035,926
Simon Property Group, Inc.		24,402		3,898,464
SL Green Realty Corp.		5,679		456,421
UDR, Inc.		21,980		986,682
Ventas, Inc.		28,645		1,957,886
Vornado Realty Trust(a)		13,100		839,710
Welltower, Inc.(a)		30,561		2,491,638
Weyerhaeuser Co.		59,796		1,575,027
				57,393,064
Food & Staples Retailing — 1.5%
Costco Wholesale Corp.		34,815		9,200,212
Kroger Co. (The)(a)		63,911		1,387,508
Sysco Corp.		37,230		2,632,905
Walgreens Boots Alliance, Inc.		61,606		3,368,000
Walmart, Inc.		110,887		12,251,905
				28,840,530
Food Products — 1.1%
Archer-Daniels-Midland Co.	44,953		1,834,083
Campbell Soup Co.		15,295		612,871
Conagra Brands, Inc.(a)		39,054		1,035,712
General Mills, Inc.		47,043		2,470,698
Hershey Co. (The)(a)		11,168		1,496,847
Hormel Foods Corp.(a)		22,041		893,542
JM Smucker Co. (The)		8,859		1,020,468
Kellogg Co.(a)		20,189		1,081,525
Kraft Heinz Co. (The)		49,844		1,547,158
Lamb Weston Holdings, Inc.		11,766		745,494
McCormick & Co., Inc.(Non-Voting)		9,817		1,521,733
Mondelez International, Inc., Class A		114,537		6,173,544
Tyson Foods, Inc., Class A		23,203		1,873,410
				22,307,085
Gas Utilities — 0.0%
Atmos Energy Corp.		9,317		983,503
Health Care Equipment & Supplies — 3.5%
Abbott Laboratories		139,112		11,699,319
ABIOMED, Inc.(b)		3,636		947,142
Align Technology, Inc.(b)		5,731		1,568,575
Baxter International, Inc.		37,660		3,084,354
Becton Dickinson and Co.		21,330		5,375,373
Boston Scientific Corp.(b)		109,748		4,716,969
Cooper Cos., Inc. (The)		3,764		1,268,054
Danaher Corp.		49,746		7,109,698
Dentsply Sirona, Inc.		18,102		1,056,433
Edwards Lifesciences Corp.(b)		16,417		3,032,877
Hologic, Inc.(b)		20,448		981,913
IDEXX Laboratories, Inc.(b)		6,891		1,897,299
Intuitive Surgical, Inc.(b)		9,046		4,745,079
Medtronic plc		106,298		10,352,362
ResMed, Inc.		11,445		1,396,633
Stryker Corp.		24,480		5,032,599
Teleflex, Inc.		3,675		1,216,976
Varian Medical Systems, Inc.(b)		7,301		993,885
Zimmer Biomet Holdings, Inc.		16,094		1,894,908
				68,370,448

Security	Shares		Value
Health Care Providers & Services — 2.7%
AmerisourceBergen Corp.		12,563	$	1,071,122
Anthem, Inc.		20,348		5,742,409
Cardinal Health, Inc.		23,967		1,128,846
Centene Corp.(b)		33,150		1,738,386
Cigna Corp.		30,020		4,729,651
CVS Health Corp.		102,897		5,606,858
DaVita, Inc.(b)		10,342		581,841
HCA Healthcare, Inc.		20,848		2,818,024
Henry Schein, Inc.(b)		12,159		849,914
Humana, Inc.		10,470		2,777,691
Laboratory Corp. of America Holdings(b)		7,892		1,364,527
McKesson Corp.		15,083		2,027,004
Quest Diagnostics, Inc.		10,757		1,095,170
UnitedHealth Group, Inc.		75,335		18,382,493
Universal Health Services, Inc., Class B		6,775		883,392
WellCare Health Plans, Inc.(b)		4,033		1,149,687
				51,947,015
Health Care Technology — 0.1%
Cerner Corp.(b)		25,973		1,903,821
Hotels, Restaurants & Leisure — 1.9%
Carnival Corp.(a)		32,194		1,498,631
Chipotle Mexican Grill, Inc.(b)		1,947		1,426,917
Darden Restaurants, Inc.		9,933		1,209,144
Hilton Worldwide Holdings, Inc.		23,523		2,299,138
Marriott International, Inc., Class A		22,175		3,110,931
McDonald’s Corp.		60,573		12,578,589
MGM Resorts International		41,355		1,181,512
Norwegian Cruise Line Holdings Ltd.(b)		17,654		946,784
Royal Caribbean Cruises Ltd.		13,774		1,669,546
Starbucks Corp.		96,014		8,048,854
Wynn Resorts Ltd.		7,440		922,486
Yum! Brands, Inc.		24,146		2,672,238
				37,564,770
Household Durables — 0.3%
DR Horton, Inc.		27,554		1,188,404
Garmin Ltd.		9,829		784,354
Leggett & Platt, Inc.(a)		10,632		407,950
Lennar Corp., Class A		21,851		1,058,899
Mohawk Industries, Inc.(b)		4,984		734,991
Newell Brands, Inc.(a)		31,540		486,347
PulteGroup, Inc.		20,679		653,870
Whirlpool Corp.(a)		5,087		724,185
				6,039,000
Household Products — 1.7%
Church & Dwight Co., Inc.(a)		19,776		1,444,835
Clorox Co. (The)		9,934		1,520,995
Colgate-Palmolive Co.		68,323		4,896,709
Kimberly-Clark Corp.		27,207		3,626,149
Procter & Gamble Co. (The)		197,999		21,710,590
				33,199,278
Independent Power and Renewable Electricity Producers — 0.1%
AES Corp.		53,692		899,878
NRG Energy, Inc.		22,456		788,655
				1,688,533
Industrial Conglomerates — 1.4%
3M Co.		45,561		7,897,544
General Electric Co.		689,302		7,237,671
Honeywell International, Inc.		57,721		10,077,509
Roper Technologies, Inc.		8,143		2,982,455
				28,195,179

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Insurance — 2.5%
Aflac, Inc.		59,642	$	3,268,978
Allstate Corp. (The)		26,288		2,673,227
American International Group, Inc.		68,959		3,674,135
Aon plc		19,048		3,675,883
Arthur J Gallagher & Co.		13,991		1,225,472
Assurant, Inc.		4,174		444,030
Chubb Ltd.		36,388		5,359,588
Cincinnati Financial Corp.		12,289		1,274,001
Everest Re Group Ltd.		3,243		801,605
Hartford Financial Services Group, Inc. (The)		28,782		1,603,733
Lincoln National Corp.		15,516		1,000,006
Loews Corp.		20,473		1,119,259
Marsh & McLennan Cos., Inc.		40,115		4,001,471
MetLife, Inc.		76,072		3,778,496
Principal Financial Group, Inc.		20,991		1,215,799
Progressive Corp. (The)		46,308		3,701,398
Prudential Financial, Inc.		32,211		3,253,311
Torchmark Corp.		8,156		729,636
Travelers Cos., Inc. (The)		20,856		3,118,389
Unum Group		17,405		583,938
Willis Towers Watson plc		10,383		1,988,760
				48,491,115
Interactive Media & Services — 4.7%(b)
Alphabet, Inc., Class A		23,669		25,628,793
Alphabet, Inc., Class C		24,295		26,260,709
Facebook, Inc., Class A		190,454		36,757,622
TripAdvisor, Inc.		8,394		388,558
Twitter, Inc.		57,452		2,005,075
				91,040,757
Internet & Direct Marketing Retail — 3.7%
Amazon.com, Inc.(b)		32,784		62,080,766
Booking Holdings, Inc.(b)		3,432		6,434,005
eBay, Inc.		64,942		2,565,209
Expedia Group, Inc.		9,178		1,220,949
				72,300,929
IT Services — 5.3%
Accenture plc, Class A		50,479		9,327,005
Akamai Technologies, Inc.(b)		13,233		1,060,493
Alliance Data Systems Corp.		3,696		517,921
Automatic Data Processing, Inc.		34,557		5,713,309
Broadridge Financial Solutions, Inc.		9,303		1,187,807
Cognizant Technology Solutions Corp., Class A		45,452		2,881,202
DXC Technology Co.		21,458		1,183,409
Fidelity National Information Services, Inc.		25,475		3,125,273
Fiserv, Inc.(b)		30,965		2,822,769
FleetCor Technologies, Inc.(b)		6,884		1,933,371
Gartner, Inc.(a)(b)		7,274		1,170,678
Global Payments, Inc.		12,386		1,983,370
International Business Machines Corp.		70,405		9,708,850
Jack Henry & Associates, Inc.(a)		6,232		834,589
Mastercard, Inc., Class A(a)		71,542		18,925,005
Paychex, Inc.		24,834		2,043,590
PayPal Holdings, Inc.(b)		92,838		10,626,237
Total System Services, Inc.		12,300		1,577,721
VeriSign, Inc.(b)		8,437		1,764,683
Visa, Inc., Class A		137,853		23,924,388
Western Union Co. (The)		35,055		697,244
				103,008,914
Leisure Products — 0.0%
Hasbro, Inc.		9,311		983,986

Security	Shares		Value
Life Sciences Tools & Services — 1.1%
Agilent Technologies, Inc.		24,806	$	1,852,264
Illumina, Inc.(b)		11,635		4,283,425
IQVIA Holdings, Inc.(b)		12,705		2,044,234
Mettler-Toledo International, Inc.(b)		1,984		1,666,560
PerkinElmer, Inc.		8,911		858,486
Thermo Fisher Scientific, Inc.		31,859		9,356,351
Waters Corp.(b)		5,724		1,232,034
				21,293,354
Machinery — 1.6%
Caterpillar, Inc.		45,699		6,228,317
Cummins, Inc.		11,615		1,990,114
Deere & Co.		25,177		4,172,081
Dover Corp.		11,751		1,177,450
Flowserve Corp.(a)		10,379		546,870
Fortive Corp.		23,609		1,924,606
Illinois Tool Works, Inc.(a)		23,788		3,587,468
Ingersoll-Rand plc		19,085		2,417,497
PACCAR, Inc.		27,884		1,998,167
Parker-Hannifin Corp.		10,382		1,765,044
Pentair plc		12,665		471,138
Snap-on, Inc.(a)		4,477		741,570
Stanley Black & Decker, Inc.		11,900		1,720,859
Wabtec Corp.(a)		10,758		771,994
Xylem, Inc.		14,555		1,217,380
				30,730,555
Media — 1.4%
CBS Corp.(Non-Voting), Class B		27,785		1,386,471
Charter Communications, Inc., Class A(b)		13,722		5,422,660
Comcast Corp., Class A		357,165		15,100,936
Discovery, Inc., Class A(b)		12,543		385,070
Discovery, Inc., Class C(a)(b)		28,784		818,905
DISH Network Corp., Class A(b)		18,485		710,009
Fox Corp., Class A(b)		27,566		1,010,018
Fox Corp., Class B(b)		12,788		467,146
Interpublic Group of Cos., Inc. (The)		30,812		696,043
News Corp., Class A		26,216		353,654
News Corp., Class B		10,303		143,830
Omnicom Group, Inc.		17,874		1,464,774
				27,959,516
Metals & Mining — 0.3%
Freeport-McMoRan, Inc.		117,195		1,360,634
Newmont Goldcorp Corp.		64,367		2,476,198
Nucor Corp.		24,429		1,346,038
				5,182,870
Multiline Retail — 0.5%
Dollar General Corp.		20,631		2,788,486
Dollar Tree, Inc.(b)		18,774		2,016,140
Kohl’s Corp.(a)		13,260		630,513
Macy’s, Inc.		24,414		523,925
Nordstrom, Inc.(a)		8,619		274,601
Target Corp.(a)		41,251		3,572,749
				9,806,414
Multi-Utilities — 1.1%
Ameren Corp.		19,578		1,470,504
CenterPoint Energy, Inc.		40,485		1,159,085
CMS Energy Corp.		22,636		1,310,851
Consolidated Edison, Inc.		25,818		2,263,722
Dominion Energy, Inc.(a)		63,348		4,898,067
DTE Energy Co.		14,603		1,867,432
NiSource, Inc.		30,206		869,933
Public Service Enterprise Group, Inc.		40,013		2,353,565
Sempra Energy		21,699		2,982,311

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Multi-Utilities (continued)
WEC Energy Group, Inc.		24,058	$	2,005,715
				21,181,185
Oil, Gas & Consumable Fuels — 4.6%
Anadarko Petroleum Corp.		39,515		2,788,178
Apache Corp.		30,143		873,243
Cabot Oil & Gas Corp.		34,341		788,469
Chevron Corp.		150,558		18,735,437
Cimarex Energy Co.		8,229		488,227
Concho Resources, Inc.		16,076		1,658,722
ConocoPhillips		89,403		5,453,583
Devon Energy Corp.		32,247		919,684
Diamondback Energy, Inc.		12,472		1,359,074
EOG Resources, Inc.		45,873		4,273,529
Exxon Mobil Corp.(a)		335,690		25,723,925
Hess Corp.		20,328		1,292,251
HollyFrontier Corp.		12,635		584,748
Kinder Morgan, Inc.		154,571		3,227,442
Marathon Oil Corp.		61,677		876,430
Marathon Petroleum Corp.		53,028		2,963,205
Noble Energy, Inc.		38,564		863,834
Occidental Petroleum Corp.		58,901		2,961,542
ONEOK, Inc.		32,449		2,232,816
Phillips 66		33,001		3,086,913
Pioneer Natural Resources Co.		13,527		2,081,264
Valero Energy Corp.		32,913		2,817,682
Williams Cos., Inc. (The)		94,615		2,653,005
				88,703,203
Personal Products — 0.2%
Coty, Inc., Class A		23,677		317,272
Estee Lauder Cos., Inc. (The), Class A		17,247		3,158,098
				3,475,370
Pharmaceuticals — 4.6%
Allergan plc		24,659		4,128,656
Bristol-Myers Squibb Co.		129,205		5,859,447
Eli Lilly & Co.		68,317		7,568,840
Johnson & Johnson		210,959		29,382,370
Merck & Co., Inc.		204,459		17,143,887
Mylan NV(b)		41,465		789,494
Nektar Therapeutics(b)		14,017		498,725
Perrigo Co. plc		9,995		475,962
Pfizer, Inc.		439,885		19,055,818
Zoetis, Inc.		37,927		4,304,335
				89,207,534
Professional Services — 0.3%
Equifax, Inc.		9,503		1,285,186
IHS Markit Ltd.(a)(b)		29,107		1,854,698
Nielsen Holdings plc		28,824		651,422
Robert Half International, Inc.		9,577		545,985
Verisk Analytics, Inc.		12,523		1,834,119
				6,171,410
Real Estate Management & Development — 0.1%
CBRE Group, Inc., Class A(b)		25,317		1,298,762
Road & Rail — 1.0%
CSX Corp.		61,277		4,741,002
JB Hunt Transport Services, Inc.		7,054		644,806
Kansas City Southern		8,092		985,767
Norfolk Southern Corp.		21,135		4,212,840
Union Pacific Corp.		56,112		9,489,100
				20,073,515

Security	Shares		Value
Semiconductors & Semiconductor Equipment — 3.7%
Advanced Micro Devices, Inc.(b)		69,755	$	2,118,459
Analog Devices, Inc.		28,748		3,244,787
Applied Materials, Inc.		75,096		3,372,561
Broadcom, Inc.		31,366		9,029,017
Intel Corp.		356,198		17,051,198
KLA-Tencor Corp.		13,240		1,564,968
Lam Research Corp.		12,048		2,263,096
Maxim Integrated Products, Inc.		21,987		1,315,262
Microchip Technology, Inc.(a)		18,684		1,619,903
Micron Technology, Inc.(b)		88,301		3,407,536
NVIDIA Corp.		47,943		7,873,679
Qorvo, Inc.(b)		9,875		657,774
QUALCOMM, Inc.		95,836		7,290,245
Skyworks Solutions, Inc.		14,116		1,090,743
Texas Instruments, Inc.		74,206		8,515,881
Xilinx, Inc.		20,008		2,359,343
				72,774,452
Software — 6.7%
Adobe, Inc.(b)		38,603		11,374,374
ANSYS, Inc.(b)		6,689		1,370,041
Autodesk, Inc.(b)		17,279		2,814,749
Cadence Design Systems, Inc.(b)		22,440		1,588,976
Citrix Systems, Inc.		9,964		977,867
Fortinet, Inc.(b)		11,679		897,297
Intuit, Inc.		20,518		5,361,969
Microsoft Corp.		607,795		81,420,219
Oracle Corp.		192,356		10,958,521
Red Hat, Inc.(b)		13,989		2,626,575
salesforce.com, Inc.(b)		60,481		9,176,782
Symantec Corp.(a)		49,892		1,085,650
Synopsys, Inc.(b)		11,594		1,492,032
				131,145,052
Specialty Retail — 2.3%
Advance Auto Parts, Inc.		5,813		896,016
AutoZone, Inc.(b)		1,966		2,161,558
Best Buy Co., Inc.		18,828		1,312,877
CarMax, Inc.(b)		13,318		1,156,402
Foot Locker, Inc.		9,017		377,993
Gap, Inc. (The)(a)		17,511		314,673
Home Depot, Inc. (The)		87,222		18,139,559
L Brands, Inc.		18,284		477,212
Lowe’s Cos., Inc.		62,063		6,262,777
O’Reilly Automotive, Inc.(b)		6,179		2,282,028
Ross Stores, Inc.		29,171		2,891,430
Tiffany & Co.(a)		8,713		815,885
TJX Cos., Inc. (The)		96,130		5,083,354
Tractor Supply Co.		9,754		1,061,235
Ulta Beauty, Inc.(b)		4,423		1,534,295
				44,767,294
Technology Hardware, Storage & Peripherals — 3.9%
Apple, Inc.		346,499		68,579,082
Hewlett Packard Enterprise Co.		110,691		1,654,830
HP, Inc.		121,025		2,516,110
NetApp, Inc.		19,740		1,217,958
Seagate Technology plc(a)		19,896		937,500
Western Digital Corp.(a)		23,331		1,109,389
Xerox Corp.		16,211		574,031
				76,588,900
Textiles, Apparel & Luxury Goods — 0.7%
Capri Holdings Ltd.(b)		12,316		427,119
Hanesbrands, Inc.		29,028		499,862
NIKE, Inc., Class B		99,723		8,371,746

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund (Percentages shown are based on Net Assets)

Security	shares		Value
Textiles, Apparel & Luxury Goods (continued)
PVH Corp.		6,052	$	572,761
Ralph Lauren Corp.(a)		4,275		485,597
Tapestry, Inc.		23,172		735,248
Under Armour, Inc., Class A(a)(b)		15,126		383,444
Under Armour, Inc., Class C(b)		15,770		350,094
VF Corp.		25,284		2,208,557
				14,034,428
Tobacco — 0.9%
Altria Group, Inc.		148,284		7,021,248
Philip Morris International, Inc.		122,995		9,658,797
				16,680,045
Trading Companies & Distributors — 0.2%
Fastenal Co.		45,808		1,492,883
United Rentals, Inc.(b)		6,456		856,259
WW Grainger, Inc.		3,658		981,185
				3,330,327

Security	shares		Value
Water Utilities — 0.1%
American Water Works Co., Inc.		13,992	$	1,623,072
Total Common Stocks — 99.6% (Cost: $926,185,768)				1,937,101,231
Total Long-Term Investments — 99.6% (Cost: $926,185,768)				1,937,101,231
Short-Term Securities — 3.4%(c)*
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%		11,869,990		11,869,990
SL Liquidity Series, LLC, Money Market Series, 2.55%(d)		54,183,294		54,199,549
Total Short-Term Securities — 3.4% (Cost: $66,068,544)				66,069,539
Total Investments — 103.0% (Cost: $992,254,312)				2,003,170,770
Liabilities in Excess of Other Assets — (3.0)%				(58,381,874	)
Net Assets — 100.0%			$	1,944,788,896

^(a)  Security, or a portion of the security, is on loan.

^(b)  Non-income producing security.

^(c)  Annualized7-day yield as of period end.

^(d)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 12/31/18		Shares Purchased			Shares Sold			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		15,713,324		—			(3,843,334	)(b)		11,869,990	$	11,869,990	$	121,997		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		31,575,620		22,607,674	(c)		—			54,183,294		54,199,549		62,315	(d)		12,162		1,967
BlackRock, Inc.		9,976		117			(661	)		9,432		4,426,438		63,964			159,484		590,721
											$	70,495,977	$	248,276		$	171,646	$	592,688

^(a) Includes net capital gain distributions, if applicable.

^(b)  Represents net shares sold.

^(c)  Represents net shares purchased.

^(d)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
S&P 500E-Mini Index		86		09/20/19	$	12,660	$	82,033

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts (a)	$	—	$	—	$	82,033	$	—	$	—	$	—	$	82,033

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	2,089,696		$	—	$	—	$	—	$	2,089,696
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		(91,137	)		—		—		—		(91,137	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	10,232,005

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock S&P 500 Index V.I. Fund

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments (a)	$	1,937,101,231	$	—	$	—	$	1,937,101,231
Short-Term Securities		11,869,990		—		—		11,869,990
Subtotal	$	1,948,971,221	$	—	$	—	$	1,948,971,221
Investments valued at NAV (b)								54,199,549
Total Investments							$	2,003,170,770
Derivative Financial Instruments (c)
Assets:
Equity contracts	$	82,033	$	—	$	—	$	82,033

^(a)  See above Schedule of Investments for values in each industry. Investments categorized as Level 1 are included in industry.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock S&P 500 Index V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $53,105,352) (cost — $924,211,314)	$	1,932,674,793
Investments at value — affiliated (cost — $68,042,998)		70,495,977
Cash		4,375
Cash pledged for futures contracts		611,000
Receivables:
Investments sold		37,940
Securities lending income — affiliated		8,678
Capital shares sold		150,185
Dividends — affiliated		16,139
Dividends — unaffiliated		1,605,465
Variation margin on futures contracts		61,927
Prepaid expenses		26,158
Other assets		164,964
Total assets		2,005,857,601
LIABILITIES
Cash collateral on securities loaned at value		54,182,731
Payables:
Investments purchased		997,702
Capital shares redeemed		5,247,997
Distribution fees		62,637
Investment advisory fees		109,964
Directors’ and Officer’s fees		8,588
Other accrued expenses		459,086
Total liabilities		61,068,705
NET ASSETS	$	1,944,788,896
NET ASSETS CONSIST OF
Paid-in capital	$	885,661,258
Accumulated earnings		1,059,127,638
NET ASSETS	$	1,944,788,896
NET ASSET VALUE
Class I— Based on net assets of $1,604,367,829 and 66,038,663 shares outstanding, 100 million shares authorized, $0.10 par value	$	24.29
Class II— Based on net assets of $6,283,193 and 261,144 shares outstanding, 100 million shares authorized, $0.10 par value	$	24.06
Class III— Based on net assets of $334,137,874 and 13,896,223 shares outstanding, 100 million shares authorized, $0.10 par value	$	24.05

See notes to financial statements.

FINANCIAL STATEMENTS 13

Statement of Operations  (unaudited)

Six Months Ended June 30, 2019

	BlackRock S&P 500 Index V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	185,961
Dividends — unaffiliated		19,345,356
Securities lending income — affiliated — net		62,315
Total investment income		19,593,632
EXPENSES
Investment advisory		658,748
Transfer agent — class specific		556,406
Distribution — class specific		424,260
Accounting services		79,462
Professional		70,215
Printing		31,759
Directors and Officer		19,995
Custodian		13,981
Transfer agent		2,676
Offering		2,383
Registration		1,131
Miscellaneous		8,078
Total expenses		1,869,094
Less:
Fees waived and/or reimbursed by the Manager		(5,382	)
Transfer agent fees waived and/or reimbursed — class specific		(116,824	)
Total expenses after fees waived and/or reimbursed		1,746,888
Net investment income		17,846,744
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from:
Investments — affiliated		171,646
Investments — unaffiliated		41,335,662
Futures contracts		2,089,696
		43,597,004
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		592,688
Investments — unaffiliated		252,801,757
Futures contracts		(91,137	)
		253,303,308
Net realized and unrealized gain		296,900,312
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	314,747,056

See notes to financial statements.

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock S&P 500 Index V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	17,846,744		$	19,836,104
Net realized gain		43,597,004			98,306,729
Net change in unrealized appreciation (depreciation)		253,303,308			(206,841,447	)
Net increase (decrease) in net assets resulting from operations		314,747,056			(88,698,614	)
DISTRIBUTIONS TO SHAREHOLDERS (a)
Class I		—			(80,579,932	)
Class II		—			(251,963	)
Class III		—			(18,332,689	)
Decrease in net assets resulting from distributions to shareholders		—			(99,164,584	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(106,295,773	)		1,704,609,344
NET ASSETS
Total increase in net assets		208,451,283			1,516,746,146
Beginning of period		1,736,337,613			219,591,467
End of period	$	1,944,788,896		$	1,736,337,613

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

FINANCIAL STATEMENTS 15

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock S&P 500 Index V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	20.50		$	22.82		$	19.90		$	19.08		$	20.63		$	19.43
Net investment income (a)		0.22			0.44			0.37			0.37			0.37			0.35
Net realized and unrealized gain (loss)		3.57			(1.51	)		3.91			1.85			(0.14	)		2.25
Net increase (decrease) from investment operations		3.79			(1.07	)		4.28			2.22			0.23			2.60
Distributions (b)
From net investment income		—			(0.25	)		(0.39	)		(0.38	)		(0.42	)		(0.36	)
From net realized gain		—			(1.00	)		(0.97	)		(1.02	)		(1.36	)		(1.04	)
Total distributions		—			(1.25	)		(1.36	)		(1.40	)		(1.78	)		(1.40	)
Net asset value, end of period	$	24.29		$	20.50		$	22.82		$	19.90		$	19.08		$	20.63
Total Return (c)
Based on net asset value		18.49	%(d)		(4.61	)%		21.50	%		11.60	%		1.05	%		13.30	%
Ratios to Average Net Assets
Total expenses		0.14	%(e)		0.19	%(f)		0.46	%		0.46	%		0.46	%		0.46	%
Total expenses after fees waived and/or reimbursed		0.14	%(e)		0.16	%(f)		0.30	%		0.31	%		0.31	%		0.34	%
Net investment income		1.94	%(e)		1.88	%		1.68	%		1.87	%		1.76	%		1.70	%
Supplemental Data
Net assets, end of period (000)	$	1,604,368		$	1,412,400		$	216,251		$	195,261		$	187,048		$	204,029
Portfolio turnover rate		1	%		5	%		3	%		4	%		4	%		3	%

^(a)  Based on average shares outstanding.

^(b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.18% and 0.15%, respectively.

See notes to financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock S&P 500 Index V.I. Fund
	Class II
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	20.32		$	22.63		$	19.75		$	18.94		$	20.49		$	19.31
Net investment income (a)		0.20			0.38			0.34			0.33			0.33			0.32
Net realized and unrealized gain (loss)		3.54			(1.47	)		3.87			1.85			(0.13	)		2.22
Net increase (decrease) from investment operations		3.74			(1.09	)		4.21			2.18			0.20			2.54
Distributions (b)
From net investment income		—			(0.22	)		(0.36	)		(0.35	)		(0.39	)		(0.32	)
From net realized gain		—			(1.00	)		(0.97	)		(1.02	)		(1.36	)		(1.04	)
Total distributions		—			(1.22	)		(1.33	)		(1.37	)		(1.75	)		(1.36	)
Net asset value, end of period	$	24.06		$	20.32		$	22.63		$	19.75		$	18.94		$	20.49
Total Return (c)
Based on net asset value		18.41	%(d)		(4.74	)%		21.31	%		11.47	%		0.89	%		13.11	%
Ratios to Average Net Assets
Total expenses		0.30	%(e)		0.40	%(f)		0.60	%		0.62	%		0.61	%		0.60	%
Total expenses after fees waived and/or reimbursed		0.29	%(e)		0.33	%(f)		0.45	%		0.46	%		0.46	%		0.48	%
Net investment income		1.78	%(e)		1.64	%		1.54	%		1.71	%		1.61	%		1.55	%
Supplemental Data
Net assets, end of period (000)	$	6,283		$	4,485		$	3,340		$	2,298		$	1,780		$	1,962
Portfolio turnover rate		1	%		5	%		3	%		4	%		4	%		3	%

^(a) Based on average shares outstanding.

^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.39% and 0.33%, respectively.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 17

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock S&P 500 Index V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Period from 02/14/18(a) to 12/31/18
Net asset value, beginning of period	$	20.32		$	22.88
Net investment income (b)		0.19			0.34
Net realized and unrealized gain (loss)		3.54			(1.69	)
Net increase (decrease) from investment operations		3.73			(1.35	)
Distributions (c)
From net investment income		—			(0.21	)
From net realized gain		—			(1.00	)
Total distributions		—			(1.21	)
Net asset value, end of period	$	24.05		$	20.32
Total Return (d)
Based on net asset value		18.36	%(e)		(5.82	)%(e)
Ratios to Average Net Assets
Total expenses		0.46	%(f)		0.38	%(f)(g)
Total expenses after fees waived and/or reimbursed		0.39	%(f)		0.36	%(f)(g)
Net investment income		1.69	%(f)		1.64	%(f)
Supplemental Data
Net assets, end of period (000)	$	334,138		$	319,453
Portfolio turnover rate		1	%		5	%(h)

^(a)  Recommencement of operations.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

^(g)  Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.37% and 0.35%, respectively.

^(h)  Portfolio turnover rate is representative of the fund for the entire year.

See notes to financial statements.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock S&P 500 Index V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I, Class II and Class III Shares have equal voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class II and Class III Shares bear certain expenses related to the distribution of such shares. Class III Shares recommenced operations on February 14, 2018.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganizations: The Board of Directors of the Company (the “Board”), the Board of the HIMCO Variable Insurance Trust and shareholders of the HIMCO VIT Index Fund (the “HIMCO Fund”) approved the reorganization of the HIMCO Fund into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the HIMCO Fund in exchange for an equal aggregate value of newly-issued Class I and Class III Shares of the Fund.

Each shareholder of the HIMCO Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s HIMCO Fund shares, as determined at the close of business on April 20, 2018, less the costs of the HIMCO Fund’s reorganization.

The HIMCO reorganization was accomplished by atax-free exchange of shares of the Fund in the following amounts and at the following conversion ratios:

HIMCO Fund’s Share Class	Shares Prior to HIMCO Reorganization	Conversion Ratio	S&P 500 Index V.I. Fund’s Share Class	Shares of S&P 500 Index V.I. Fund
Class IA	17,179,594	1.83129659	Class I	31,460,932
Class IB	9,244,848	1.81412014	Class III	16,771,265

The HIMCO Fund’s net assets and composition of net assets as of the close of business on April 20, 2018, the valuation date of the HIMCO reorganization were as follows:

HIMCO Fund	Net Assets	Paid-In Capital	Accumulated earnings
HIMCO VIT Index Fund	$1,100,925,673	$552,473,484	$548,452,189

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the HIMCO Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the HIMCO acquisition were $221,043,512. The aggregate net assets of the Fund immediately after the HIMCO acquisition amounted to $1,321,969,185. The HIMCO Fund’s fair value and cost of investments prior to the HIMCO reorganization were as follows:

HIMCO Fund	Fair Value of Investments	Cost of Investments
HIMCO VIT Index Fund	$1,091,642,970	$514,211,227

The purpose of the transaction was to combine the assets of the HIMCO Fund with the assets of the Fund. The HIMCO reorganization was atax-free event and closed on April 23, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $25,009,801

• Net realized and change in unrealized loss on investments: $(108,025,468)

• Net decrease in net assets resulting from operations: $(83,015,667)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since April 23, 2018.

The Board, the Board of Trustees of State Farm Variable Product Trust and shareholders of the State Farm Large Cap Equity Index Fund (the “State Farm Fund”) approved the reorganization of the State Farm Fund into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the State Farm Fund in exchange for an equal aggregate value of newly-issued Class I Shares of the Fund.

Each shareholder of the State Farm Fund received shares of the Fund in an amount equal to the aggregate NAV of such shareholder’s State Farm Fund shares, as determined at the close of business on October 26, 2018, less the costs of the State Farm Fund’s reorganization.

NOTESTO FINANCIAL STATEMENTS 19

Notes to Financial Statements  (unaudited) (continued)

The State Farm reorganization was accomplished by atax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

State Farm Fund	Shares Prior to State Farm Reorganization	Conversion Ratio	S&P 500 Index V.I. Fund’s Share Class	Shares of S&P 500 Index V.I. Fund
State Farm Large Cap Equity Index Fund	31,060,082	0.87209818	Class I	27,087,441

The State Farm Fund’s net assets and composition of net assets on October 26, 2018, the valuation date of the State Farm reorganization were as follows:

State Farm Fund	Net Assets	Paid-In Capital	Accumulated earnings
State Farm Large Cap Equity Index Fund	$622,154,676	$387,022,240	$235,132,436

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the State Farm Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the State Farm acquisition were $1,244,306,961. The aggregate net assets of the Fund immediately after the State Farm acquisition amounted to $1,866,461,637. The State Farm Fund’s fair value and cost of investments prior to the reorganization were as follows:

State Farm Fund	Fair Value of Investments	Cost of Investments
State Farm Large Cap Equity Index Fund	$617,866,688	$382,357,766

The purpose of the transaction was to combine the assets of the State Farm Fund with the assets of the Fund. The State Farm reorganization was atax-free event and closed on October 29, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $29,919,446

• Net realized and change in unrealized loss on investments: $(105,351,557)

• Net decrease in net assets resulting from operations: $(75,432,111)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since October 29, 2018.

State Farm Reorganization costs incurred by the Fund in connection with the State Farm Reorganization were expensed by the Fund. The Manager reimbursed the Fund $111,986, which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Offering Costs: Offering costs are amortized over a12-month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is

NOTESTO FINANCIAL STATEMENTS 21

Notes to Financial Statements  (unaudited) (continued)

determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount (b)
Citigroup Global Markets, Inc.	$	17,500,057	$	(17,500,057	)	$	—
Credit Suisse Securities (USA) LLC		20,261,280		(20,261,280	)		—
Deutsche Bank Securities, Inc.		6,271		(6,271	)		—
Fidelity Investments		1,024,226		(1,022,678	)		1,548
JP Morgan Securities LLC		12,204,756		(12,204,756	)		—
Nomura Securities International, Inc.		6,396		(6,396	)		—
State Street Bank & Trust Co.		2,102,366		(2,102,366	)		—
	$	53,105,352	$	(53,103,804	)	$	1,548

^(a)  Cash collateral with a value of $54,182,731 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

^(b)  The market value of the loaned securities is determined as of June 30, 2019. Additional collateral is delivered to the Fund on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by the counterparty.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange orover-the-counter (“OTC”).

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to 0.07% of the average daily value of the Fund’s net assets.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:

	Distribution Fees
Class II		0.15	%
Class III		0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

For the six months ended June 30, 2019, the following table shows the class specific distribution fees borne directly by each share class of the Fund:

	Distribution Fees
Class II	$	3,921
Class III		420,339
	$	424,260

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the six months ended June 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

Class I	$	355,288
Class II		1,362
Class III		199,756
	$	556,406

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $3,751.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon

NOTESTO FINANCIAL STATEMENTS 23

Notes to Financial Statements  (unaudited) (continued)

90 days’ notice by a majority of directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $7,182 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.05	%
Class II	0.05
Class III	0.05

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements were as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$                    —
Class II		55
Class III		115,976
		$          116,031

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Class I	0.15	%
Class II	0.30
Class III	0.40

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived and/ or reimbursed $1,631 and $793 which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statement of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $18,308 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the six months ended June 30, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule17a-7 under the 1940 Act were as follows:

Purchases	$	6,965,371
Sales		4,473,428
Net Realized Gain		692,445

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $22,143,134 and $104,593,161 respectively.

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	1,023,295,251
Gross unrealized appreciation	$	1,029,521,028
Gross unrealized depreciation		(49,563,476	)
Net unrealized appreciation	$	979,957,552

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of^(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or^(b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

NOTESTO FINANCIAL STATEMENTS 25

Notes to Financial Statements  (unaudited) (continued)

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, and which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18(a)
	Shares			Amount			Shares			Amount
Class I
Shares sold		704,046		$	16,120,683			1,629,081		$	38,154,514
Shares issued in reinvestment of distributions		—			—			3,984,526			80,579,932
Shares issued resulting from reorganization		—			—			58,548,373			1,342,478,516
Shares redeemed		(3,557,205	)		(81,755,948	)		(4,748,491	)		(111,807,406	)
Net increase (decrease)		(2,853,159	)	$	(65,635,265	)		59,413,489		$	1,349,405,556
Class II
Shares sold		74,431		$	1,755,555			104,448		$	2,472,635
Shares issued in reinvestment of distributions		—			—			12,559			251,963
Shares redeemed		(33,989	)		(804,639	)		(43,947	)		(1,018,068	)
Net increase		40,442		$	950,916			73,060		$	1,706,530
Class III
Shares sold		322,032		$	7,327,863			749,247		$	17,376,769
Shares issued in reinvestment of distributions		—			—			912,793			18,332,584
Shares issued resulting from reorganization		—			—			16,771,265			380,601,833
Shares redeemed		(2,148,997	)		(48,939,287	)		(2,710,117	)		(62,813,928	)
Net increase (decrease)		(1,826,965	)	$	(41,611,424	)		15,723,188		$	353,497,258
Total Net Increase (Decrease)		(4,639,682	)	$	(106,295,773	)		75,209,737		$	1,704,609,344

^(a)  Period February 14, 2018 (recommencement of operations) to December 31, 2018 for Class III.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

As of June 30, 2019, BlackRock Financial Management, Inc, an affiliate of the Fund, owned 437 Class III shares of BlackRock S&P 500 Index V.I. Fund.

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 27

Glossary of Terms Used in this Report  

Portfolio Abbreviations
MSCI	Morgan Stanley Capital International
S&P	S&P Global Ratings

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds, Inc.

▶ BlackRock Small Cap Index V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Small Cap Index V.I. Fund

Investment Objective

BlackRock Small Cap Index V.I. Fund’s (the “Fund”) investment objective is to seek to match the performance of the Russell 2000^® Index (the “Russell 2000” or the “Underlying Index”) as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund’s Class I Shares returned 16.98%, matching the return of the benchmark Russell 2000^® Index for the same period. The Russell 2000^® Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Describe the market environment.

All eleven of the Global Industry Classification Standard (“GICS”) sectors advanced in the first quarter of 2019 as positive headlines regarding Sino-American trade negotiations, relatively strong corporate earnings growth, and the Fed’s dovish pivot helped investor sentiment recover from steep losses in the fourth quarter of 2018.

In its January announcement, the Fed indicated that it would refrain from interest rate hikes for the foreseeable future, with a dovish assessment of U.S. economic conditions and transparency around balance sheet normalization. This reduced market-based expectations of interest rate hikes, serving as a boon for both equities and bonds. On the macro front, despite a35-day government shutdown and global economic weakness, the U.S. economy continued to exhibit a tight labor market, low inflation, and slowing but stable economic growth. The U.S. unemployment rate held at 3.8% in February, the lowest level since 1969. Core personal consumption expenditure dropped to 1.8% year-over-year in January, below the Fed’s inflation target of 2%.

Less optimism was evident in the U.S. interest rates market. The pause in interest rate hiking by the Fed coupled with lowered forecasts for growth drove investors into longer-duration government bonds. The yield on the10-year U.S. Treasury yield dropped from a first quarter high of 2.78% inmid-January to 2.4% at quarter end. The bid for long-term debt coupled with high short-term rates (Fed fund target rate remained at 2.5% at the quarter’s end) catalyzed an inversion of thethree-month/10-year Treasury spread. This spread is the Fed’s preferred measure for calculating recession probabilities and its inversion has preceded every U.S. recession since the 1950s.

The prospect of an easier monetary policy buoyed equities broadly in the second quarter of 2019. In the June Federal Open Market Committee announcement, Fed Chair Jerome Powell noted that should trade tensions weigh on the committee’s economic outlook or should the shortfall of inflation from the target rate persist longer than expected, the Fed would provide more accommodation to sustain the expansion.

Trade tensions were a source of intra-quarter volatility. In May, President Trump threatened an increase in tariffs and protectionism against both China and Mexico. However, these announcements did not materialize, and sentiment eased heading into theG-20 meeting at June’s month end.

Looking to interest rates, the10-year U.S. Treasury yield declined 0.50% in the second quarter of 2019 to 2% — the lowest level since 2016. The yield curve remained a source of uncertainty as thethree-month/10-year Treasury spread remained in negative territory while thefive-year/30-year Treasury spread expanded throughout the second quarter.

Describe recent portfolio activity.

During the period, as changes were made to the composition of the Russell 2000^® Index, the Fund purchased and sold securities to maintain its objective of matching the risks and return of the benchmark index.

Describe portfolio positioning at period end.

The Fund remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Small Cap Index V.I. Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)
	6-Month Total Returns (a)			1 Year (e)			5 Years (e)			10 Years (e)
Class I(b)(c)		16.98	%		(3.47	)%		6.77	%		13.03	%
Russell 2000®Index(d)		16.98			(3.31	)		7.06			13.45

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on theex-dividend date. Insurance-related fees and expenses are not reflected in these returns.

^(c)  Under normal circumstances, the Fund will invest at least 90% of its assets in securities or other financial instruments that are components of or have economic characteristics similar to the securities included in the Russell 2000.

^(d)  An unmanaged index that is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

^(e)  On October 29, 2018, the Fund acquired all of the assets and assumed certain stated liabilities of the Small Cap Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization; accordingly, the Fund assumed the performance and financial history of the Predecessor Fund upon completion of the Reorganization.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,169.80	$	1.18	$	1,000.00	$	1,023.70	$	1.10		0.22	%

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

    See “Disclosure of Expenses” on the following page for further information on how expenses were calculated.

Portfolio Information

SECTOR ALLOCATION

Sector	Percent of Net Assets
Financials		17	%
Health Care		17
Industrials		16
Information Technology		13
Consumer Discretionary		11
Real Estate		8
Energy		4
Materials		4
Utilities		4
Consumer Staples		3
Communication Services		2
Short-Term Securities		16
Liabilities in Excess of Other Assets		(15	)

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine sectorsub-classifications for reporting ease.

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 98.7%
Aerospace & Defense — 1.3%
AAR Corp.		4,533	$	166,769
Aerojet Rocketdyne Holdings, Inc.(a)		9,874		442,059
Aerovironment, Inc.(a)		2,902		164,746
Astronics Corp.(a)		3,276		131,761
Axon Enterprise, Inc.(a)		7,887		506,424
Cubic Corp.(b)		4,236		273,137
Ducommun, Inc.(a)		1,510		68,056
Kratos Defense & Security Solutions, Inc.(a)		12,183		278,869
Maxar Technologies, Inc.(b)		7,819		61,145
Mercury Systems, Inc.(a)		7,213		507,435
Moog, Inc., Class A(b)		4,349		407,110
National Presto Industries, Inc.(b)		659		61,478
Parsons Corp.(a)		2,520		92,887
Triumph Group, Inc.(b)		6,744		154,438
Vectrus, Inc.(a)		1,481		60,069
Wesco Aircraft Holdings, Inc.(a)		7,195		79,864
				3,456,247
Air Freight & Logistics — 0.3%
Air Transport Services Group, Inc.(a)(b)		7,982		194,761
Atlas Air Worldwide Holdings, Inc.(a)		3,145		140,393
Echo Global Logistics, Inc.(a)		3,715		77,532
Forward Air Corp.		3,897		230,508
Hub Group, Inc., Class A(a)		4,474		187,818
Radiant Logistics, Inc.(a)		5,513		33,850
				864,862
Airlines — 0.5%
Allegiant Travel Co.		1,762		252,847
Hawaiian Holdings, Inc.		6,486		177,911
Mesa Air Group, Inc.(a)		2,825		25,821
SkyWest, Inc.(b)		6,766		410,493
Spirit Airlines, Inc.(a)		9,282		443,030
				1,310,102
Auto Components — 1.2%
Adient plc		11,875		288,206
American Axle & Manufacturing Holdings, Inc.(a)		15,245		194,526
Cooper Tire & Rubber Co.(b)		6,737		212,552
Cooper-Standard Holdings, Inc.(a)		2,353		107,815
Dana, Inc.(b)		19,425		387,335
Dorman Products, Inc.(a)		3,656		318,584
Fox Factory Holding Corp.(a)(b)		5,094		420,306
Gentherm, Inc.(a)		4,499		188,193
LCI Industries		3,307		297,630
Modine Manufacturing Co.(a)(b)		6,578		94,131
Motorcar Parts of America, Inc.(a)		2,527		54,103
Standard Motor Products, Inc.		2,820		127,859
Stoneridge, Inc.(a)		3,819		120,489
Tenneco, Inc., Class A		6,755		74,913
Tower International, Inc.		2,633		51,344
Visteon Corp.(a)		3,843		225,123
				3,163,109
Automobiles — 0.1%
Winnebago Industries, Inc.(b)		4,249		164,224
Banks — 9.6%
1st Constitution Bancorp(b)		1,123		20,742
1st Source Corp.(b)		2,084		96,698
ACNB Corp.(b)		927		36,681
Allegiance Bancshares, Inc.(a)		2,614		87,151
Amalgamated Bank, Class A(b)		1,859		32,440
Amerant Bancorp, Inc.(a)		2,602		51,285
American National Bankshares, Inc.(b)		1,331		51,576

Security	Shares		Value
Banks (continued)
Ameris Bancorp(b)		6,410	$	251,208
Ames National Corp.		1,235		33,468
Arrow Financial Corp.(b)		1,621		56,297
Atlantic Capital Bancshares, Inc.(a)		3,388		58,003
Atlantic Union Bankshares Corp.(b)		10,995		388,453
Banc of California, Inc.(b)		6,220		86,893
BancFirst Corp.(b)		2,545		141,655
Bancorp, Inc. (The)(a)		6,694		59,710
BancorpSouth Bank		13,015		377,956
Bank First National Corp.		757		52,203
Bank of Commerce Holdings(b)		2,460		26,297
Bank of Marin Bancorp		1,806		74,082
Bank of NT Butterfield & Son Ltd. (The)		7,401		251,338
Bank of Princeton (The)(b)		734		22,020
BankFinancial Corp.		1,966		27,504
Bankwell Financial Group, Inc.		917		26,318
Banner Corp.		4,625		250,444
Bar Harbor Bankshares(b)		2,025		53,845
Baycom Corp.(a)		1,265		27,703
BCB Bancorp, Inc.		1,943		26,911
Berkshire Hills Bancorp, Inc.		6,201		194,649
Boston Private Financial Holdings, Inc.		11,065		133,555
Bridge Bancorp, Inc.		2,203		64,900
Brookline Bancorp, Inc.(b)		10,494		161,398
Bryn Mawr Bank Corp.(b)		2,648		98,823
Business First Bancshares, Inc.(b)		1,726		43,927
Byline Bancorp, Inc.(a)		3,108		59,425
C&F Financial Corp.		505		27,578
Cadence BanCorp		17,021		354,037
Cambridge Bancorp		573		46,699
Camden National Corp.		2,044		93,758
Capital Bancorp, Inc.(a)(b)		1,026		12,620
Capital City Bank Group, Inc.		1,796		44,631
Capstar Financial Holdings, Inc.(b)		1,928		29,209
Carolina Financial Corp.		2,791		97,936
Carter Bank & Trust(a)		3,017		59,586
Cathay General Bancorp(b)		10,466		375,834
CBTX, Inc.(b)		2,475		69,646
CenterState Bank Corp.		17,031		392,224
Central Pacific Financial Corp.		3,817		114,357
Central Valley Community Bancorp		1,560		33,493
Century Bancorp, Inc., Class A(b)		369		32,435
Chemical Financial Corp.		9,773		401,768
Chemung Financial Corp.(b)		478		23,107
Citizens & Northern Corp.(b)		1,663		43,787
City Holding Co.		2,175		165,865
Civista Bancshares, Inc.		2,041		45,820
CNB Financial Corp.		1,929		54,475
Coastal Financial Corp.(a)		887		13,722
Codorus Valley Bancorp, Inc.		1,221		28,083
Colony Bankcorp, Inc.		918		15,560
Columbia Banking System, Inc.		9,990		361,438
Community Bank System, Inc.(b)		6,820		449,029
Community Bankers Trust Corp.(b)		2,763		23,403
Community Financial Corp. (The)(b)		631		21,284
Community Trust Bancorp, Inc.(b)		2,058		87,033
ConnectOne Bancorp, Inc.		4,499		101,947
Customers Bancorp, Inc.(a)		3,896		81,816
CVB Financial Corp.		18,043		379,444
DNB Financial Corp.		425		18,900
Eagle Bancorp, Inc.(a)(b)		4,548		246,183
Enterprise Bancorp, Inc.		1,279		40,557
Enterprise Financial Services Corp.(b)		3,356		139,610
Equity Bancshares, Inc., Class A(a)		2,044		54,493
Esquire Financial Holdings, Inc.(a)(b)		828		20,824

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Banks (continued)
Evans Bancorp, Inc.		678	$	25,581
Farmers & Merchants Bancorp, Inc.		1,355		39,458
Farmers National Banc Corp.(b)		3,365		49,903
FB Financial Corp.		2,319		84,875
Fidelity D&D Bancorp, Inc.(b)		358		24,058
Fidelity Southern Corp.		2,898		89,751
Financial Institutions, Inc.		2,039		59,437
First Bancorp(b)		4,033		146,882
First BanCorp		29,017		320,348
First Bancorp, Inc.(b)		1,269		34,073
First Bancshares, Inc. (The)		2,198		66,687
First Bank(b)		2,179		25,581
First Busey Corp.(b)		7,073		186,798
First Business Financial Services, Inc.(b)		1,115		26,203
First Capital, Inc.		423		21,378
First Choice Bancorp		1,381		31,404
First Commonwealth Financial Corp.		13,259		178,599
First Community Bankshares, Inc.		2,145		72,415
First Financial Bancorp(b)		13,206		319,849
First Financial Bankshares, Inc.(b)		17,579		541,257
First Financial Corp.		1,582		63,533
First Financial Northwest, Inc.		1,367		19,343
First Foundation, Inc.(b)		5,059		67,993
First Guaranty Bancshares, Inc.(b)		671		13,990
First Internet Bancorp		1,295		27,894
First Interstate BancSystem, Inc., Class A		5,074		200,981
First Merchants Corp.(b)		6,770		256,583
First Mid Bancshares, Inc.(b)		1,948		68,024
First Midwest Bancorp, Inc.		13,881		284,144
First Northwest Bancorp(b)		1,103		17,924
First of Long Island Corp. (The)(b)		3,259		65,441
Flushing Financial Corp.		3,641		80,830
FNCB Bancorp, Inc.		2,251		17,423
Franklin Financial Network, Inc.(b)		1,674		46,638
Franklin Financial Services Corp.		541		20,623
Fulton Financial Corp.(b)		22,554		369,209
FVCBankcorp, Inc.(a)		1,570		30,489
German American Bancorp, Inc.(b)		3,140		94,577
Glacier Bancorp, Inc.(b)		11,303		458,337
Great Southern Bancorp, Inc.(b)		1,466		87,740
Great Western Bancorp, Inc.(b)		7,868		281,045
Guaranty Bancshares, Inc.(b)		1,103		34,358
Hancock Whitney Corp.(b)		11,622		465,577
Hanmi Financial Corp.(b)		4,133		92,042
HarborOne Bancorp, Inc.(a)(b)		2,088		39,108
Hawthorn Bancshares, Inc.		722		19,350
Heartland Financial USA, Inc.(b)		4,478		200,301
Heritage Commerce Corp.(b)		5,742		70,340
Heritage Financial Corp.(b)		4,855		143,417
Hilltop Holdings, Inc.(b)		9,844		209,382
Home BancShares, Inc.(b)		21,163		407,599
HomeTrust Bancshares, Inc.		2,326		58,476
Hope Bancorp, Inc.		16,538		227,894
Horizon Bancorp, Inc.		4,916		80,327
Howard Bancorp, Inc.(a)		1,869		28,353
IBERIABANK Corp.		7,347		557,270
Independent Bank Corp.		7,407		405,475
Independent Bank Group, Inc.(b)		4,921		270,458
International Bancshares Corp.		7,557		284,974
Investar Holding Corp.		1,325		31,601
Investors Bancorp, Inc.		31,274		348,705
Lakeland Bancorp, Inc.		6,629		107,058
Lakeland Financial Corp.(b)		3,395		158,988
LCNB Corp.		1,678		31,882
LegacyTexas Financial Group, Inc.		6,537		266,121

Security	Shares		Value
Banks (continued)
Level One Bancorp, Inc.(b)		774	$	19,342
Live Oak Bancshares, Inc.		3,380		57,967
Macatawa Bank Corp.(b)		3,277		33,622
Mackinac Financial Corp.		1,132		17,886
MainStreet Bancshares, Inc.(a)		915		20,853
Malvern Bancorp, Inc.(a)(b)		1,026		22,582
MBT Financial Corp.(b)		2,467		24,719
Mercantile Bank Corp.		2,155		70,210
Metropolitan Bank Holding Corp.(a)		951		41,844
Mid Penn Bancorp, Inc.(b)		927		23,129
Midland States Bancorp, Inc.(b)		3,002		80,213
MidSouth Bancorp, Inc.(b)		2,223		26,343
MidWestOne Financial Group, Inc.		1,682		47,029
MutualFirst Financial, Inc.		727		24,747
MVB Financial Corp.(b)		1,269		21,522
National Bank Holdings Corp., Class A(b)		4,007		145,454
National Bankshares, Inc.		802		31,222
NBT Bancorp, Inc.(b)		5,660		212,307
Nicolet Bankshares, Inc.(a)		1,104		68,514
Northeast Bank		860		23,719
Northrim BanCorp, Inc.		962		34,305
Norwood Financial Corp.		821		28,579
Oak Valley Bancorp		869		16,989
OFG Bancorp		6,834		162,444
Ohio Valley Banc Corp.		644		24,839
Old Line Bancshares, Inc.		2,081		55,375
Old National Bancorp(b)		23,403		388,256
Old Second Bancorp, Inc.(b)		3,856		49,241
Opus Bank		3,005		63,436
Origin Bancorp, Inc.		2,614		86,262
Orrstown Financial Services, Inc.		1,383		30,412
Pacific City Financial Corp.		1,660		28,286
Pacific Mercantile Bancorp(a)(b)		2,339		19,297
Pacific Premier Bancorp, Inc.		8,315		256,767
Park National Corp.(b)		1,824		181,287
Parke Bancorp, Inc.(b)		1,230		29,459
Peapack Gladstone Financial Corp.		2,625		73,815
Penns Woods Bancorp, Inc.(b)		573		25,928
Peoples Bancorp of North Carolina, Inc.(b)		740		22,237
Peoples Bancorp, Inc.		2,514		81,102
Peoples Financial Services Corp.(b)		912		41,031
People’s Utah Bancorp		2,042		60,035
Preferred Bank		1,851		87,460
Premier Financial Bancorp, Inc.(b)		1,798		26,970
QCR Holdings, Inc.		2,000		69,740
RBB Bancorp(b)		2,205		42,645
Red River Bancshares, Inc.(a)		110		5,330
Reliant Bancorp, Inc.(b)		1,389		32,822
Renasant Corp.(b)		7,756		278,751
Republic Bancorp, Inc., Class A(b)		1,275		63,431
Republic First Bancorp, Inc.(a)		5,329		26,165
S&T Bancorp, Inc.		4,572		171,359
Sandy Spring Bancorp, Inc.		4,814		167,912
SB One Bancorp		1,132		25,300
Seacoast Banking Corp. of Florida(a)(b)		6,826		173,653
Select Bancorp, Inc.(a)		2,011		23,006
ServisFirst Bancshares, Inc.		6,460		221,320
Shore Bancshares, Inc.		1,949		31,847
Sierra Bancorp		1,873		50,796
Simmons First National Corp., Class A		12,276		285,540
SmartFinancial, Inc.(a)(b)		1,683		36,504
South Plains Financial, Inc.(a)		472		7,788
South State Corp.		4,781		352,216
Southern First Bancshares, Inc.(a)		986		38,612
Southern National Bancorp of Virginia, Inc.(b)		2,595		39,729

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Banks (continued)
Southside Bancshares, Inc.(b)		4,412	$	142,861
Spirit of Texas Bancshares, Inc.(a)(b)		1,561		35,123
Stock Yards Bancorp, Inc.(b)		2,861		103,425
Summit Financial Group, Inc.(b)		1,524		40,919
Tompkins Financial Corp.(b)		2,024		165,158
Towne Bank(b)		9,088		247,921
TriCo Bancshares		3,618		136,760
TriState Capital Holdings, Inc.(a)(b)		3,258		69,526
Triumph Bancorp, Inc.(a)		3,370		97,899
Trustmark Corp.(b)		8,699		289,242
UMB Financial Corp.		6,021		396,302
Union Bankshares, Inc.		589		21,799
United Bankshares, Inc.		13,275		492,370
United Community Banks, Inc.		10,415		297,452
United Security Bancshares		2,059		23,452
Unity Bancorp, Inc.(b)		1,215		27,581
Univest Financial Corp.(b)		3,830		100,576
Valley National Bancorp		43,963		473,921
Veritex Holdings, Inc.		7,090		183,986
Washington Trust Bancorp, Inc.(b)		1,999		104,308
WesBanco, Inc.		7,186		277,020
West Bancorporation, Inc.		2,109		44,753
Westamerica Bancorp(b)		3,525		217,175
				26,505,134
Beverages — 0.3%
Boston Beer Co., Inc. (The), Class A(a)		1,129		426,491
Celsius Holdings, Inc.(a)		3,655		16,228
Coca-Cola Consolidated, Inc.		641		191,819
Craft Brew Alliance, Inc.(a)		1,547		21,643
MGP Ingredients, Inc.		1,756		116,440
National Beverage Corp.(b)		1,562		69,712
New Age Beverages Corp.(a)		9,763		45,496
Primo Water Corp.(a)(b)		4,771		58,683
				946,512
Biotechnology — 7.8%(a)
Abeona Therapeutics, Inc.(b)		3,822		18,269
ACADIA Pharmaceuticals, Inc.		14,258		381,116
Acceleron Pharma, Inc.		6,094		250,342
Achillion Pharmaceuticals, Inc.		18,054		48,385
Acorda Therapeutics, Inc.		5,787		44,386
Adamas Pharmaceuticals, Inc.(b)		2,917		18,085
ADMA Biologics, Inc.		3,050		11,804
Aduro Biotech, Inc.		8,518		13,118
Adverum Biotechnologies, Inc.(b)		7,091		84,312
Aeglea BioTherapeutics, Inc.		3,531		24,187
Affimed NV		8,111		23,279
Agenus, Inc.		14,144		42,432
AgeX Therapeutics, Inc.		2,802		10,283
Aimmune Therapeutics, Inc.		6,018		125,295
Akcea Therapeutics, Inc.		1,693		39,701
Akebia Therapeutics, Inc.		15,963		77,261
Albireo Pharma, Inc.		1,392		44,878
Alder Biopharmaceuticals, Inc.(b)		9,869		116,158
Aldeyra Therapeutics, Inc.(b)		3,410		20,460
Alector, Inc.		1,323		25,137
Allakos, Inc.(b)		2,346		101,652
Allogene Therapeutics, Inc.		5,237		140,613
AMAG Pharmaceuticals, Inc.		4,557		45,524
Amicus Therapeutics, Inc.		31,301		390,637
AnaptysBio, Inc.		3,322		187,427
Anavex Life Sciences Corp.		5,757		19,401
Anika Therapeutics, Inc.		1,892		76,853
Apellis Pharmaceuticals, Inc.(b)		6,531		165,496

Security	Shares		Value
Biotechnology (continued)
Arcus Biosciences, Inc.		4,422	$	35,155
Ardelyx, Inc.		5,362		14,424
Arena Pharmaceuticals, Inc.		6,753		395,928
ArQule, Inc.(b)		13,813		152,081
Array BioPharma, Inc.		30,129		1,395,877
Arrowhead Pharmaceuticals, Inc.		12,621		334,457
Assembly Biosciences, Inc.		3,170		42,763
Atara Biotherapeutics, Inc.		6,007		120,801
Athenex, Inc.		8,008		158,558
Athersys, Inc.		16,463		27,658
Audentes Therapeutics, Inc.		5,929		224,472
Avid Bioservices, Inc.(b)		7,696		43,098
Avrobio, Inc.		2,123		34,520
Bellicum Pharmaceuticals, Inc.(b)		1,200		2,040
Beyondspring, Inc.		1,432		33,938
BioCryst Pharmaceuticals, Inc.(b)		14,488		54,910
Biohaven Pharmaceutical Holding Co. Ltd.		4,501		197,099
BioSpecifics Technologies Corp.		855		51,052
BioTime, Inc.		13,380		14,718
Bioxcel Therapeutics, Inc.		799		8,757
Blueprint Medicines Corp.		6,602		622,767
Calithera Biosciences, Inc.		4,372		17,051
Calyxt, Inc.		1,254		15,650
Cara Therapeutics, Inc.		4,611		99,137
CareDx, Inc.(b)		5,556		199,960
CASI Pharmaceuticals, Inc.(b)		6,101		19,523
Catalyst Pharmaceuticals, Inc.(b)		12,807		49,179
Celcuity, Inc.(b)		814		20,350
Cellular Biomedicine Group, Inc.		1,644		27,175
CEL-SCI Corp.		3,542		29,682
Checkpoint Therapeutics, Inc.		3,039		9,208
ChemoCentryx, Inc.		5,491		51,066
Chimerix, Inc.		6,499		28,076
Clovis Oncology, Inc.(b)		6,713		99,822
Coherus Biosciences, Inc.		8,368		184,933
Concert Pharmaceuticals, Inc.		2,754		33,048
Constellation Pharmaceuticals, Inc.		2,096		25,739
Corbus Pharmaceuticals Holdings, Inc.		8,020		55,579
Cortexyme, Inc.		389		16,536
Crinetics Pharmaceuticals, Inc.		1,489		37,225
Cue Biopharma, Inc.		2,190		19,688
Cyclerion Therapeutics, Inc.		3,184		36,457
Cytokinetics, Inc.		7,404		83,295
CytomX Therapeutics, Inc.		5,910		66,310
Deciphera Pharmaceuticals, Inc.(b)		2,000		45,100
Denali Therapeutics, Inc.		6,484		134,608
Dicerna Pharmaceuticals, Inc.(b)		6,914		108,896
Dynavax Technologies Corp.		8,278		33,029
Eagle Pharmaceuticals, Inc.		1,268		70,602
Editas Medicine, Inc.		6,723		166,327
Eidos Therapeutics, Inc.		1,505		46,775
Eiger BioPharmaceuticals, Inc.		3,155		33,443
Emergent BioSolutions, Inc.		6,169		298,024
Enanta Pharmaceuticals, Inc.		2,320		195,762
Epizyme, Inc.		10,507		131,863
Esperion Therapeutics, Inc.		3,372		156,865
Evelo Biosciences, Inc.(b)		1,646		14,781
Fate Therapeutics, Inc.(b)		7,084		143,805
FibroGen, Inc.(b)		10,501		474,435
Five Prime Therapeutics, Inc.		4,430		26,713
Flexion Therapeutics, Inc.		4,460		54,858
Forty Seven, Inc.		2,339		24,793
G1 Therapeutics, Inc.		4,579		140,392
Galectin Therapeutics, Inc.		4,332		17,978
Genomic Health, Inc.		3,641		211,797

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Biotechnology (continued)
Geron Corp.(b)		22,429	$	31,625
Global Blood Therapeutics, Inc.		7,360		387,136
GlycoMimetics, Inc.(b)		4,523		53,914
Gossamer Bio, Inc.		2,697		59,819
Gritstone Oncology, Inc.		3,344		37,252
Halozyme Therapeutics, Inc.		19,361		332,622
Harpoon Therapeutics, Inc.(b)		912		11,856
Heron Therapeutics, Inc.(b)		9,987		185,658
Homology Medicines, Inc.(b)		3,277		64,131
ImmunoGen, Inc.(b)		19,060		41,360
Immunomedics, Inc.(b)		23,666		328,247
Inovio Pharmaceuticals, Inc.(b)		13,032		38,314
Insmed, Inc.		10,484		268,390
Intellia Therapeutics, Inc.		4,939		80,851
Intercept Pharmaceuticals, Inc.		3,347		266,321
Intrexon Corp.(b)		9,776		74,884
Invitae Corp.(b)		11,709		275,162
Iovance Biotherapeutics, Inc.(b)		15,500		380,060
Ironwood Pharmaceuticals, Inc.(b)		20,780		227,333
Jounce Therapeutics, Inc.		2,248		11,128
Kadmon Holdings, Inc.		17,608		36,273
KalVista Pharmaceuticals, Inc.		1,569		34,753
Karyopharm Therapeutics, Inc.(b)		7,817		46,824
Kezar Life Sciences, Inc.(b)		2,354		18,149
Kindred Biosciences, Inc.(b)		4,771		39,742
Kiniksa Pharmaceuticals Ltd., Class A		1,939		26,254
Kodiak Sciences, Inc.		3,172		37,112
Krystal Biotech, Inc.		1,178		47,438
Kura Oncology, Inc.		4,007		78,898
La Jolla Pharmaceutical Co.		2,847		26,335
Lexicon Pharmaceuticals, Inc.		5,737		36,086
Ligand Pharmaceuticals, Inc.(b)		2,587		295,306
LogicBio Therapeutics, Inc.		1,272		16,536
MacroGenics, Inc.		6,448		109,423
Madrigal Pharmaceuticals, Inc.		1,059		110,994
Magenta Therapeutics, Inc.(b)		2,629		38,778
MannKind Corp.(b)		26,308		30,254
Marker Therapeutics, Inc.		3,653		28,932
MediciNova, Inc.(b)		5,798		55,835
MEI Pharma, Inc.		9,117		22,793
MeiraGTx Holdings plc		2,106		56,609
Mersana Therapeutics, Inc.		4,852		19,651
Millendo Therapeutics, Inc.		1,254		14,496
Minerva Neurosciences, Inc.		4,064		22,880
Mirati Therapeutics, Inc.		3,377		347,831
Molecular Templates, Inc.		2,284		19,071
Momenta Pharmaceuticals, Inc.		13,338		166,058
Mustang Bio, Inc.		3,972		14,617
Myriad Genetics, Inc.		9,492		263,688
Natera, Inc.(b)		7,561		208,532
Neon Therapeutics, Inc.		1,934		9,167
NextCure, Inc.		382		5,722
Novavax, Inc.(b)		3,464		20,299
Oncocyte Corp.		2,841		7,074
Oncternal Therapeutics, Inc., CVR		105		215
OPKO Health, Inc.(b)		46,037		112,330
Organogenesis Holdings, Inc.		1,375		10,450
Palatin Technologies, Inc.(b)		28,574		33,146
PDL BioPharma, Inc.		16,632		52,224
Pfenex, Inc.(b)		4,290		28,915
PhaseBio Pharmaceuticals, Inc.		1,832		24,036
Pieris Pharmaceuticals, Inc.		6,594		30,992
PolarityTE, Inc.		2,344		13,361
Portola Pharmaceuticals, Inc.		9,028		244,930
Precision BioSciences, Inc.		1,232		16,324

Security	Shares		Value
Biotechnology (continued)
Principia Biopharma, Inc.		1,805	$	59,908
Progenics Pharmaceuticals, Inc.(b)		11,642		71,831
Protagonist Therapeutics, Inc.		2,029		24,571
Prothena Corp. plc(b)		5,335		56,391
PTC Therapeutics, Inc.		7,739		348,255
Puma Biotechnology, Inc.		4,277		54,361
Ra Pharmaceuticals, Inc.		4,226		127,076
Radius Health, Inc.		6,103		148,669
Recro Pharma, Inc.		2,701		27,469
REGENXBIO, Inc.(b)		4,514		231,884
Repligen Corp.		6,407		550,682
Replimune Group, Inc.		1,698		24,893
Retrophin, Inc.		5,634		113,187
Rhythm Pharmaceuticals, Inc.		3,099		68,178
Rigel Pharmaceuticals, Inc.		22,292		58,182
Rocket Pharmaceuticals, Inc.(b)		4,018		60,270
Rubius Therapeutics, Inc.		4,870		76,605
Sangamo Therapeutics, Inc.(b)		15,538		167,344
Savara, Inc.		4,017		9,520
Scholar Rock Holding Corp.		1,971		31,260
Seres Therapeutics, Inc.		2,927		9,425
Solid Biosciences, Inc.		1,618		9,304
Sorrento Therapeutics, Inc.(b)		15,991		42,696
Spark Therapeutics, Inc.		4,648		475,862
Spectrum Pharmaceuticals, Inc.		15,116		130,149
Spero Therapeutics, Inc.		1,388		15,976
Stemline Therapeutics, Inc.		5,419		83,019
Sutro Biopharma, Inc.(b)		1,452		16,524
Syndax Pharmaceuticals, Inc.		2,714		25,267
Synlogic, Inc.(b)		2,305		20,976
Synthorx, Inc.		968		13,078
Syros Pharmaceuticals, Inc.		4,666		43,207
TCR2 Therapeutics, Inc.		358		5,123
TG Therapeutics, Inc.		10,642		92,053
Tocagen, Inc.		2,703		18,056
Translate Bio, Inc.		3,908		49,358
Turning Point Therapeutics, Inc.		897		36,508
Twist Bioscience Corp.		2,869		83,230
Tyme Technologies, Inc.		8,098		9,880
Ultragenyx Pharmaceutical, Inc.		7,393		469,456
UNITY Biotechnology, Inc.		3,788		35,986
UroGen Pharma Ltd.		2,526		90,784
Vanda Pharmaceuticals, Inc.		7,193		101,349
VBI Vaccines, Inc.		11,358		13,289
Veracyte, Inc.		6,290		179,328
Vericel Corp.		6,003		113,397
Viking Therapeutics, Inc.(b)		8,777		72,849
Voyager Therapeutics, Inc.		3,264		88,846
X4 Pharmaceuticals, Inc.		927		13,905
XBiotech, Inc.		2,221		16,835
Xencor, Inc.		6,399		261,911
Y-mAbs Therapeutics, Inc.(b)		2,742		62,710
ZIOPHARM Oncology, Inc.(b)		21,706		126,546
				21,439,913
Building Products — 1.4%
AAON, Inc.(b)		5,590		280,506
Advanced Drainage Systems, Inc.		4,971		162,999
American Woodmark Corp.(a)(b)		2,055		173,894
Apogee Enterprises, Inc.(b)		3,538		153,691
Armstrong Flooring, Inc.(a)		2,814		27,718
Builders FirstSource, Inc.(a)		15,401		259,661
Caesarstone Ltd.		3,044		45,751
Continental Building Products, Inc.(a)(b)		4,722		125,464
Cornerstone Building Brands, Inc.(a)		6,678		38,933

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Building Products (continued)
CSW Industrials, Inc.(a)(b)		2,063	$	140,593
Gibraltar Industries, Inc.(a)		4,375		176,575
Griffon Corp.		4,926		83,348
Insteel Industries, Inc.(b)		2,420		50,384
JELD-WEN Holding, Inc.(a)		9,181		194,913
Masonite International Corp.(a)		3,383		178,216
Patrick Industries, Inc.(a)		3,046		149,833
PGT Innovations, Inc.(a)		7,646		127,841
Quanex Building Products Corp.(b)		4,636		87,574
Simpson Manufacturing Co., Inc.(b)		6,042		401,551
Trex Co., Inc.(a)(b)		7,941		569,370
Universal Forest Products, Inc.		8,108		308,591
				3,737,406
Capital Markets — 1.4%
Ares Management Corp.		8,684		227,260
Artisan Partners Asset Management, Inc., Class A		6,801		187,164
Associated Capital Group, Inc., Class A		197		7,368
B. Riley Financial, Inc.(b)		2,716		56,656
Blucora, Inc.(a)		6,509		197,678
BrightSphere Investment Group plc		9,737		111,099
Cohen & Steers, Inc.(b)		3,091		159,001
Cowen, Inc., Class A(a)		3,877		66,646
Diamond Hill Investment Group, Inc.		433		61,365
Donnelley Financial Solutions, Inc.(a)		4,471		59,643
Federated Investors, Inc., Class B		13,030		423,475
Focus Financial Partners, Inc., Class A(a)		4,096		111,862
GAIN Capital Holdings, Inc.		2,657		10,973
GAMCO Investors, Inc., Class A		630		12,077
Greenhill & Co., Inc.(b)		2,253		30,618
Hamilton Lane, Inc., Class A(b)		2,941		167,814
Houlihan Lokey, Inc.		4,571		203,547
INTL. FCStone, Inc.(a)(b)		2,181		86,346
Ladenburg Thalmann Financial Services, Inc.		15,970		54,777
Moelis & Co., Class A		6,452		225,497
Och-Ziff Capital Management Group, Inc., Class A		2,284		52,441
Oppenheimer Holdings, Inc., Class A		1,284		34,951
Piper Jaffray Cos.(b)		1,896		140,816
PJT Partners, Inc., Class A(b)		3,142		127,314
Pzena Investment Management, Inc., Class A		2,576		22,128
Safeguard Scientifics, Inc.(a)(b)		2,163		26,107
Siebert Financial Corp.(a)(b)		1,073		9,657
Silvercrest Asset Management Group, Inc., Class A		1,176		16,499
Stifel Financial Corp.		9,217		544,356
Value Line, Inc.		109		2,999
Virtus Investment Partners, Inc.(b)		921		98,915
Waddell & Reed Financial, Inc., Class A(b)		10,329		172,184
Westwood Holdings Group, Inc.		1,082		38,086
WisdomTree Investments, Inc.		18,061		111,436
				3,858,755
Chemicals — 2.0%
Advanced Emissions Solutions, Inc.(b)		2,446		30,918
AdvanSix, Inc.(a)		3,866		94,446
American Vanguard Corp.		3,869		59,621
Amyris, Inc.(a)(b)		5,513		19,626
Balchem Corp.		4,348		434,670
Chase Corp.(b)		962		103,550
Ferro Corp.(a)		11,009		173,942
Flotek Industries, Inc.(a)(b)		7,476		24,746
FutureFuel Corp.(b)		3,429		40,085
GCP Applied Technologies, Inc.(a)		7,353		166,472

Security	Shares		Value
Chemicals (continued)
Hawkins, Inc.(b)		1,286	$	55,825
HB Fuller Co.		6,871		318,814
Ingevity Corp.(a)		5,686		597,997
Innophos Holdings, Inc.(b)		2,585		75,249
Innospec, Inc.(b)		3,281		299,358
Intrepid Potash, Inc.(a)		12,511		42,037
Koppers Holdings, Inc.(a)		2,536		74,457
Kraton Corp.(a)		4,302		133,663
Kronos Worldwide, Inc.(b)		3,186		48,810
Livent Corp.(a)(b)		19,676		136,158
LSB Industries, Inc.(a)		2,515		9,809
Marrone Bio Innovations, Inc.(a)(b)		8,606		12,909
Minerals Technologies, Inc.		4,800		256,848
OMNOVA Solutions, Inc.(a)		5,813		36,215
Orion Engineered Carbons SA		8,050		172,351
PolyOne Corp.		10,606		332,922
PQ Group Holdings, Inc.(a)(b)		5,187		82,214
Quaker Chemical Corp.		1,772		359,503
Rayonier Advanced Materials, Inc.(b)		6,728		43,665
Sensient Technologies Corp.(b)		5,723		420,526
Stepan Co.		2,763		253,947
Trecora Resources(a)		2,581		24,700
Tredegar Corp.		3,437		57,123
Trinseo SA(b)		5,562		235,495
Tronox Holdings plc, Class A(b)		13,005		166,204
Valhi, Inc.		4,603		13,671
				5,408,546
Commercial Services & Supplies — 2.6%
ABM Industries, Inc.(b)		8,994		359,760
ACCO Brands Corp.		13,745		108,173
Advanced Disposal Services, Inc.(a)		9,791		312,431
Brady Corp., Class A(b)		6,454		318,311
BrightView Holdings, Inc.(a)(b)		4,249		79,499
Brink’s Co. (The)(b)		6,743		547,397
Casella Waste Systems, Inc., Class A(a)		6,007		238,057
CECO Environmental Corp.(a)		4,116		39,472
Charah Solutions, Inc.(a)		1,247		6,858
Cimpress NV(a)		2,981		270,943
Covanta Holding Corp.(b)		15,964		285,915
Deluxe Corp.		5,962		242,415
Ennis, Inc.		3,378		69,317
Healthcare Services Group, Inc.(b)		10,056		304,898
Heritage-Crystal Clean, Inc.(a)		2,118		55,725
Herman Miller, Inc.(b)		8,041		359,433
HNI Corp.		5,922		209,520
Interface, Inc.(b)		8,198		125,675
Kimball International, Inc., Class B		4,802		83,699
Knoll, Inc.		6,677		153,437
LSC Communications, Inc.		4,353		15,975
Matthews International Corp., Class A		4,144		144,418
McGrath RentCorp(b)		3,288		204,349
Mobile Mini, Inc.		6,078		184,953
MSA Safety, Inc.		4,764		502,078
Multi-Color Corp.(b)		1,947		97,292
NL Industries, Inc.(a)(b)		1,105		4,033
NRC Group Holdings Corp.(a)		1,289		14,334
PICO Holdings, Inc.(a)(b)		2,314		26,889
Pitney Bowes, Inc.(b)		24,403		104,445
Quad/Graphics, Inc.		4,149		32,819
RR Donnelley & Sons Co.(b)		9,380		18,479
SP Plus Corp.(a)(b)		3,006		95,982
Steelcase, Inc., Class A		11,753		200,976
Team, Inc.(a)		3,929		60,192
Tetra Tech, Inc.		7,361		578,207

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Commercial Services & Supplies (continued)
UniFirst Corp.(b)		2,058	$	388,077
US Ecology, Inc.		3,001		178,680
Viad Corp.		2,703		179,047
VSE Corp.(b)		1,151		33,022
				7,235,182
Communications Equipment — 1.2%
Acacia Communications, Inc.(a)		5,071		239,148
ADTRAN, Inc.		6,361		97,005
Aerohive Networks, Inc.(a)		5,096		22,575
Applied Optoelectronics, Inc.(a)(b)		2,492		25,618
CalAmp Corp.(a)(b)		4,560		53,261
Calix, Inc.(a)		5,782		37,930
Casa Systems, Inc.(a)(b)		4,450		28,613
Clearfield, Inc.(a)		1,604		21,253
Comtech Telecommunications Corp.(b)		3,244		91,189
DASAN Zhone Solutions, Inc.(a)		917		11,912
Digi International, Inc.(a)		3,731		47,309
Extreme Networks, Inc.(a)(b)		16,157		104,536
Finisar Corp.(a)		15,927		364,250
Harmonic, Inc.(a)		11,731		65,107
Infinera Corp.(a)		23,791		69,232
Inseego Corp.(a)		5,969		28,592
InterDigital, Inc.(b)		4,327		278,659
KVH Industries, Inc.(a)		2,325		25,273
Lumentum Holdings, Inc.(a)(b)		10,345		552,526
NETGEAR, Inc.(a)		4,149		104,928
NetScout Systems, Inc.(a)		10,169		258,191
Plantronics, Inc.(b)		4,553		168,643
Ribbon Communications, Inc.(a)		8,090		39,560
TESSCO Technologies, Inc.		827		14,770
Viavi Solutions, Inc.(a)		31,057		412,748
				3,162,828
Construction & Engineering — 1.1%
Aegion Corp.(a)		4,260		78,384
Ameresco, Inc., Class A(a)(b)		2,963		43,645
Arcosa, Inc.		6,566		247,079
Argan, Inc.(b)		1,944		78,849
Comfort Systems USA, Inc.		4,971		253,471
Concrete Pumping Holdings, Inc.(a)		1,449		7,419
Construction Partners, Inc., Class A(a)		1,573		23,626
Dycom Industries, Inc.(a)		4,113		242,132
EMCOR Group, Inc.		7,575		667,358
Granite Construction, Inc.(b)		6,341		305,509
Great Lakes Dredge & Dock Corp.(a)		8,174		90,241
IES Holdings, Inc.(a)		1,246		23,487
MasTec, Inc.(a)(b)		8,116		418,217
MYR Group, Inc.(a)		2,137		79,817
Northwest Pipe Co.(a)		1,280		32,998
NV5 Global, Inc.(a)(b)		1,374		111,844
Primoris Services Corp.(b)		5,960		124,743
Sterling Construction Co., Inc.(a)		3,409		45,749
Tutor Perini Corp.(a)		5,387		74,718
WillScot Corp.(a)		6,954		104,588
				3,053,874
Construction Materials — 0.2%
Forterra, Inc.(a)		2,002		9,950
Summit Materials, Inc., Class A(a)(b)		15,230		293,177
United States Lime & Minerals, Inc.(b)		259		20,720
US Concrete, Inc.(a)		2,136		106,138
				429,985

Security	Shares		Value
Consumer Finance — 0.7%
Curo Group Holdings Corp.(a)(b)		2,345	$	25,912
Elevate Credit, Inc.(a)		3,330		13,720
Encore Capital Group, Inc.(a)(b)		4,177		141,475
Enova International, Inc.(a)		4,420		101,881
EZCORP, Inc., Class A(a)(b)		6,650		62,975
FirstCash, Inc.		5,720		572,114
Green Dot Corp., Class A(a)		6,714		328,315
LendingClub Corp.(a)		44,627		146,377
Medallion Financial Corp.(a)		2,719		18,326
Nelnet, Inc., Class A		2,471		146,333
PRA Group, Inc.(a)		6,121		172,245
Regional Management Corp.(a)		1,370		36,127
World Acceptance Corp.(a)		901		147,863
				1,913,663
Containers & Packaging — 0.1%
Greif, Inc., Class A(b)		3,564		116,008
Greif, Inc., Class B(b)		861		37,583
Myers Industries, Inc.(b)		4,675		90,087
UFP Technologies, Inc.(a)		876		36,450
				280,128
Distributors — 0.1%
Core-Mark Holding Co., Inc.		6,062		240,783
Funko, Inc., Class A(a)		2,290		55,464
Greenlane Holdings, Inc., Class A(a)		840		8,055
Weyco Group, Inc.(b)		783		20,914
				325,216
Diversified Consumer Services — 1.0%
Adtalem Global Education, Inc.(a)(b)		7,616		343,101
American Public Education, Inc.(a)		2,128		62,946
Career Education Corp.(a)		9,338		178,076
Carriage Services, Inc.		2,185		41,537
Chegg, Inc.(a)		15,686		605,323
Collectors Universe, Inc.		1,066		22,748
Houghton Mifflin Harcourt Co.(a)		13,742		79,154
K12, Inc.(a)		5,218		158,679
Laureate Education, Inc., Class A(a)		12,899		202,643
OneSpaWorld Holdings Ltd.(a)		6,105		94,628
Regis Corp.(a)(b)		3,950		65,570
Select Interior Concepts, Inc., Class A(a)		2,865		33,377
Sotheby’s(a)(b)		4,286		249,145
Strategic Education, Inc.(b)		2,883		513,174
Weight Watchers International, Inc.(a)		6,330		120,903
				2,771,004
Diversified Financial Services — 0.2%
Banco Latinoamericano de Comercio Exterior SA, Class E(b)		4,064		84,653
Cannae Holdings, Inc.(a)(b)		9,156		265,341
FGL Holdings(b)		19,713		165,589
Marlin Business Services Corp.(b)		1,178		29,368
On Deck Capital, Inc.(a)		9,007		37,379
				582,330
Diversified Telecommunication Services — 0.6%
ATN International, Inc.		1,500		86,595
Bandwidth, Inc., Class A(a)		2,166		162,493
Cincinnati Bell, Inc.(a)		6,721		33,269
Cogent Communications Holdings, Inc.(b)		5,685		337,462
Consolidated Communications Holdings, Inc.(b)		9,318		45,938
Frontier Communications Corp.(b)		13,854		24,244
IDT Corp., Class B(a)		2,243		21,241
Intelsat SA(a)		9,064		176,295
Iridium Communications, Inc.(a)		13,389		311,428
Ooma, Inc.(a)		2,658		27,856

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Diversified Telecommunication Services (continued)
ORBCOMM, Inc.(a)(b)		9,715	$	70,434
Pareteum Corp.(a)		14,492		37,824
pdvWireless, Inc.(a)		1,279		60,113
Vonage Holdings Corp.(a)		30,615		346,868
				1,742,060
Electric Utilities — 1.0%
ALLETE, Inc.		7,009		583,219
El Paso Electric Co.		5,494		359,308
Genie Energy Ltd., Class B		1,936		20,618
MGE Energy, Inc.		4,735		346,034
Otter Tail Corp.		5,354		282,745
PNM Resources, Inc.		10,738		546,671
Portland General Electric Co.		12,109		655,944
Spark Energy, Inc., Class A		1,626		18,195
				2,812,734
Electrical Equipment — 0.9%
Allied Motion Technologies, Inc.(b)		928		35,171
American Superconductor Corp.(a)		2,806		26,040
Atkore International Group, Inc.(a)		6,220		160,911
AZZ, Inc.		3,560		163,831
Bloom Energy Corp., Class A(a)		7,432		91,191
Encore Wire Corp.		2,704		158,400
Energous Corp.(a)(b)		4,035		17,633
EnerSys		5,847		400,519
Enphase Energy, Inc.(a)		12,409		226,216
Generac Holdings, Inc.(a)		8,255		572,980
Plug Power, Inc.(a)(b)		31,001		69,752
Powell Industries, Inc.(b)		1,149		43,662
Preformed Line Products Co.(b)		463		25,706
Sunrun, Inc.(a)		14,947		280,406
Thermon Group Holdings, Inc.(a)		4,303		110,372
TPI Composites, Inc.(a)		3,894		96,260
Vicor Corp.(a)(b)		2,319		72,005
Vivint Solar, Inc.(a)		5,873		42,873
				2,593,928
Electronic Equipment, Instruments & Components — 2.4%
Airgain, Inc.(a)		1,240		17,546
Akoustis Technologies, Inc.(a)		3,362		21,517
Anixter International, Inc.(a)		4,113		245,587
Arlo Technologies, Inc.(a)		10,089		40,457
AVX Corp.(b)		6,197		102,870
Badger Meter, Inc.(b)		3,883		231,776
Bel Fuse, Inc., Class B		1,475		25,326
Belden, Inc.(b)		5,279		314,470
Benchmark Electronics, Inc.		5,285		132,759
Coda Octopus Group, Inc.(a)		614		8,013
Control4 Corp.(a)		3,676		87,305
CTS Corp.		4,344		119,808
Daktronics, Inc.(b)		4,775		29,462
ePlus, Inc.(a)		1,777		122,506
Fabrinet(a)		4,930		244,873
FARO Technologies, Inc.(a)(b)		2,340		123,037
Fitbit, Inc., Class A(a)		30,011		132,048
II-VI, Inc.(a)		8,515		311,308
Insight Enterprises, Inc.(a)		4,792		278,894
Iteris, Inc.(a)		3,745		19,362
Itron, Inc.(a)		4,638		290,200
KEMET Corp.(b)		7,785		146,436
Kimball Electronics, Inc.(a)		3,440		55,866
Knowles Corp.(a)		11,100		203,241
Methode Electronics, Inc.		4,989		142,536
MTS Systems Corp.		2,465		144,277
Napco Security Technologies, Inc.(a)		1,561		46,331

Security	Shares		Value
Electronic Equipment, Instruments & Components (continued)
nLight, Inc.(a)		4,402	$	84,518
Novanta, Inc.(a)		4,548		428,876
OSI Systems, Inc.(a)		2,231		251,278
PAR Technology Corp.(a)		1,560		43,992
Park Electrochemical Corp.(b)		2,399		40,039
PC Connection, Inc.		1,532		53,589
PCM, Inc.(a)		1,274		44,641
Plexus Corp.(a)(b)		4,056		236,749
Rogers Corp.(a)(b)		2,502		431,795
Sanmina Corp.(a)		9,182		278,031
ScanSource, Inc.(a)		3,507		114,188
Tech Data Corp.(a)		4,985		521,431
TTM Technologies, Inc.(a)		13,427		136,955
Vishay Intertechnology, Inc.(b)		17,985		297,112
Vishay Precision Group, Inc.(a)		1,373		55,785
Wrap Technologies, Inc.(a)		1,005		6,251
				6,663,041
Energy Equipment & Services — 1.4%
Archrock, Inc.		17,570		186,242
C&J Energy Services, Inc.(a)		8,998		105,997
Cactus, Inc., Class A(a)		6,347		210,213
Covia Holdings Corp.(a)		6,643		13,020
Diamond Offshore Drilling, Inc.(a)		8,606		76,335
DMC Global, Inc.(b)		1,983		125,623
Dril-Quip, Inc.(a)		4,912		235,776
Era Group, Inc.(a)		2,446		20,400
Exterran Corp.(a)(b)		4,303		61,189
Forum Energy Technologies, Inc.(a)		10,760		36,799
Frank’s International NV(a)(b)		14,440		78,842
FTS International, Inc.(a)		4,077		22,750
Geospace Technologies Corp.(a)		1,756		26,533
Helix Energy Solutions Group, Inc.(a)(b)		19,325		166,775
Independence Contract Drilling, Inc.(a)(b)		4,876		7,704
Keane Group, Inc.(a)(b)		7,147		48,028
KLX Energy Services Holdings, Inc.(a)(b)		2,946		60,187
Liberty Oilfield Services, Inc., Class A(b)		6,229		100,785
Mammoth Energy Services, Inc.(b)		1,616		11,118
Matrix Service Co.(a)(b)		3,515		71,214
McDermott International, Inc.(a)		24,544		237,095
Nabors Industries Ltd.		47,783		138,571
National Energy Services Reunited Corp.(a)		3,128		27,214
Natural Gas Services Group, Inc.(a)(b)		1,654		27,291
NCS Multistage Holdings, Inc.(a)		1,349		4,789
Newpark Resources, Inc.(a)(b)		11,838		87,838
Nine Energy Service, Inc.(a)		2,255		39,079
Noble Corp. plc(a)(b)		32,761		61,263
Oceaneering International, Inc.(a)		13,413		273,491
Oil States International, Inc.(a)(b)		8,211		150,261
Pacific Drilling SA(a)		4,018		50,627
Parker Drilling Co.(a)		1,251		25,370
ProPetro Holding Corp.(a)		10,789		223,332
RigNet, Inc.(a)(b)		2,020		20,362
RPC, Inc.		7,902		56,973
SEACOR Holdings, Inc.(a)		2,389		113,501
SEACOR Marine Holdings, Inc.(a)		2,597		38,851
Seadrill Ltd.(a)		7,937		33,018
Select Energy Services, Inc., Class A(a)(b)		8,004		92,927
Smart Sand, Inc.(a)		3,545		8,650
Solaris Oilfield Infrastructure, Inc., Class A		4,133		61,912
Superior Energy Services, Inc.(a)		20,368		26,478
TETRA Technologies, Inc.(a)		16,166		26,351
Tidewater, Inc.(a)(b)		5,115		120,100
US Silica Holdings, Inc.(b)		9,965		127,452

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Energy Equipment & Services (continued)
US Well Services, Inc.(a)		2,477	$	11,939
				3,750,265
Entertainment — 0.3%
AMC Entertainment Holdings, Inc., Class A(b)		6,901		64,386
Eros International plc(a)(b)		4,749		6,411
Glu Mobile, Inc.(a)(b)		15,672		112,525
IMAX Corp.(a)		7,122		143,864
Liberty Media Corp.-Liberty Braves, Class A(a)		1,316		36,585
Liberty Media Corp-Liberty Braves, Class C(a)		4,929		137,864
LiveXLive Media, Inc.(a)		3,650		15,148
Marcus Corp. (The)(b)		3,022		99,605
Reading International, Inc., Class A(a)		2,052		26,635
Rosetta Stone, Inc.(a)		2,853		65,277
				708,300
Equity Real Estate Investment Trusts (REITs) — 6.9%
Acadia Realty Trust		11,110		304,081
Agree Realty Corp.(b)		5,070		324,733
Alexander & Baldwin, Inc.		9,319		215,269
Alexander’s, Inc.		297		109,979
American Assets Trust, Inc.		6,313		297,469
American Finance Trust, Inc.		14,443		157,429
Armada Hoffler Properties, Inc.		7,044		116,578
Ashford Hospitality Trust, Inc.(b)		13,107		38,928
Bluerock Residential Growth REIT, Inc.(b)		2,866		33,675
Braemar Hotels & Resorts, Inc.(b)		3,885		38,461
BRT Apartments Corp.(b)		1,299		18,355
CareTrust REIT, Inc.		12,910		307,000
CatchMark Timber Trust, Inc., Class A(b)		6,522		68,155
CBL & Associates Properties, Inc.(b)		22,490		23,390
Cedar Realty Trust, Inc.		11,410		30,236
Chatham Lodging Trust(b)		6,324		119,334
Chesapeake Lodging Trust		8,175		232,333
CIM Commercial Trust Corp.		490		10,104
City Office REIT, Inc.		5,233		62,744
Clipper Realty, Inc.(b)		2,104		23,523
Community Healthcare Trust, Inc.(b)		2,447		96,436
CoreCivic, Inc.		16,155		335,378
CorEnergy Infrastructure Trust, Inc.		1,747		69,286
CorePoint Lodging, Inc.		5,495		68,083
DiamondRock Hospitality Co.		27,535		284,712
Easterly Government Properties, Inc.		9,379		169,854
EastGroup Properties, Inc.		4,891		567,258
Essential Properties Realty Trust, Inc.		6,663		133,527
Farmland Partners, Inc.		3,891		27,432
First Industrial Realty Trust, Inc.		17,062		626,858
Four Corners Property Trust, Inc.		9,263		253,158
Franklin Street Properties Corp.(b)		13,847		102,191
Front Yard Residential Corp.(b)		6,550		80,041
GEO Group, Inc. (The)		16,214		340,656
Getty Realty Corp.		4,589		141,158
Gladstone Commercial Corp.		4,127		87,575
Gladstone Land Corp.		2,160		24,905
Global Medical REIT, Inc.		4,163		43,711
Global Net Lease, Inc.(b)		11,512		225,865
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(b)		8,349		235,275
Healthcare Realty Trust, Inc.(b)		17,325		542,619
Hersha Hospitality Trust		4,729		78,218
Independence Realty Trust, Inc.(b)		12,288		142,172
Industrial Logistics Properties Trust		8,876		184,798
Innovative Industrial Properties, Inc.		1,268		156,674
Investors Real Estate Trust		1,592		93,403
iStar, Inc.(b)		8,643		107,346

Security	Shares		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Jernigan Capital, Inc.(b)		2,856	$	58,548
Kite Realty Group Trust		11,388		172,300
Lexington Realty Trust(b)		31,125		292,886
LTC Properties, Inc.(b)		5,395		246,336
Mack-Cali Realty Corp.		12,296		286,374
Monmouth Real Estate Investment Corp.		12,430		168,426
National Health Investors, Inc.(b)		5,689		443,913
National Storage Affiliates Trust		7,719		223,388
New Senior Investment Group, Inc.		11,263		75,687
NexPoint Residential Trust, Inc.		2,573		106,522
NorthStar Realty Europe Corp.(b)		5,933		97,479
Office Properties Income Trust(b)		6,510		171,023
One Liberty Properties, Inc.		2,167		62,756
Pebblebrook Hotel Trust(b)		17,626		496,701
Pennsylvania REIT(b)		9,137		59,390
Physicians Realty Trust		25,123		438,145
Piedmont Office Realty Trust, Inc., Class A(b)		17,020		339,209
PotlatchDeltic Corp.(b)		8,989		350,391
Preferred Apartment Communities, Inc., Class A(b)		5,865		87,682
PS Business Parks, Inc.		2,705		455,874
QTS Realty Trust, Inc., Class A		7,409		342,148
Retail Opportunity Investments Corp.		15,435		264,402
Retail Value, Inc.		2,020		70,296
Rexford Industrial Realty, Inc.		14,016		565,826
RLJ Lodging Trust		23,437		415,772
RPT Realty(b)		10,536		127,591
Ryman Hospitality Properties, Inc.		6,206		503,245
Sabra Health Care REIT, Inc.		24,274		477,955
Safehold, Inc.(b)		1,057		31,921
Saul Centers, Inc.		1,665		93,456
Senior Housing Properties Trust		22,299		184,413
Seritage Growth Properties, Class A		4,461		191,645
Spirit MTA REIT(b)		5,716		47,671
STAG Industrial, Inc.		17,093		516,892
Summit Hotel Properties, Inc.		14,204		162,920
Sunstone Hotel Investors, Inc.		31,062		425,860
Tanger Factory Outlet Centers, Inc.(b)		12,206		197,859
Terreno Realty Corp.		8,384		411,151
UMH Properties, Inc.		4,828		59,915
Uniti Group, Inc.		25,036		237,842
Universal Health Realty Income Trust		1,763		149,732
Urban Edge Properties		15,713		272,306
Urstadt Biddle Properties, Inc., Class A		3,926		82,446
Washington Prime Group, Inc.(b)		24,825		94,831
Washington REIT(b)		10,949		292,667
Whitestone REIT(b)		5,069		64,326
Xenia Hotels & Resorts, Inc.(b)		15,395		320,986
				18,989,469
Food & Staples Retailing — 0.6%
Andersons, Inc. (The)(b)		4,260		116,042
BJ’s Wholesale Club Holdings, Inc.(a)(b)		15,383		406,111
Chefs’ Warehouse, Inc. (The)(a)		3,284		115,170
HF Foods Group, Inc.(a)		1,009		35,123
Ingles Markets, Inc., Class A(b)		1,873		58,307
Natural Grocers by Vitamin Cottage, Inc.(a)		1,090		10,955
Performance Food Group Co.(a)(b)		13,945		558,218
PriceSmart, Inc.		3,060		156,427
Rite Aid Corp.(a)(b)		6,988		55,974
SpartanNash Co.		4,730		55,199
United Natural Foods, Inc.(a)		6,695		60,054
Village Super Market, Inc., Class A		1,016		26,934

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Food & Staples Retailing (continued)
Weis Markets, Inc.(b)		1,268	$	46,168
				1,700,682
Food Products — 1.1%
Alico, Inc.		525		15,929
B&G Foods, Inc.(b)		8,728		181,542
Bridgford Foods Corp.(a)		221		6,577
Calavo Growers, Inc.		2,191		211,957
Cal-Maine Foods, Inc.(b)		4,273		178,270
Darling Ingredients, Inc.(a)		22,159		440,743
Dean Foods Co.		12,114		11,191
Farmer Brothers Co.(a)		1,530		25,046
Fresh Del Monte Produce, Inc.		4,233		114,079
Freshpet, Inc.(a)		4,188		190,596
Hostess Brands, Inc.(a)		13,498		194,911
J&J Snack Foods Corp.		2,033		327,211
John B Sanfilippo & Son, Inc.		1,140		90,847
Lancaster Colony Corp.(b)		2,550		378,930
Landec Corp.(a)(b)		3,600		33,732
Limoneira Co.(b)		2,228		44,426
Sanderson Farms, Inc.(b)		2,712		370,351
Schuman, Inc., CVR(a)(c)		4,294		1,859
Seneca Foods Corp., Class A(a)		860		23,934
Simply Good Foods Co. (The)(a)		9,547		229,892
Tootsie Roll Industries, Inc.		2,237		82,612
				3,154,635
Gas Utilities — 1.2%
Chesapeake Utilities Corp.		2,168		206,003
New Jersey Resources Corp.(b)		12,005		597,489
Northwest Natural Holding Co.		3,906		271,467
ONE Gas, Inc.(b)		7,052		636,795
RGC Resources, Inc.(b)		909		27,743
South Jersey Industries, Inc.(b)		12,527		422,536
Southwest Gas Holdings, Inc.(b)		7,211		646,250
Spire, Inc.(b)		6,710		563,103
				3,371,386
Health Care Equipment & Supplies — 3.8%
Accuray, Inc.(a)		11,846		45,844
Alphatec Holdings, Inc.(a)		3,977		18,056
AngioDynamics, Inc.(a)		4,838		95,260
Antares Pharma, Inc.(a)(b)		21,843		71,864
Apyx Medical Corp.(a)		4,436		29,810
AtriCure, Inc.(a)(b)		5,023		149,886
Atrion Corp.		195		166,284
Avanos Medical, Inc.(a)		6,412		279,627
Avedro, Inc.(a)		667		13,100
AxoGen, Inc.(a)(b)		4,502		89,140
Axonics Modulation Technologies, Inc.(a)(b)		2,085		85,422
BioLife Solutions, Inc.(a)		886		15,018
BioSig Technologies, Inc.(a)		2,080		19,531
Cardiovascular Systems, Inc.(a)		4,619		198,294
Cerus Corp.(a)		18,696		105,072
Conformis, Inc.(a)		8,611		37,544
CONMED Corp		3,669		313,956
Corindus Vascular Robotics, Inc.(a)		12,363		36,842
CryoLife, Inc.(a)(b)		4,933		147,645
CryoPort, Inc.(a)		3,634		66,575
Cutera, Inc.(a)(b)		1,750		36,365
CytoSorbents Corp.(a)(b)		3,801		25,125
ElectroCore, Inc.(a)(b)		865		1,730
GenMark Diagnostics, Inc.(a)(b)		7,611		49,395
Glaukos Corp.(a)		4,819		363,353
Globus Medical, Inc., Class A(a)		10,277		434,717
Haemonetics Corp.(a)		6,922		832,994

Security	Shares		Value
Health Care Equipment & Supplies (continued)
Heska Corp.(a)		948	$	80,741
Inogen, Inc.(a)		2,475		165,231
Integer Holdings Corp.(a)		4,393		368,661
IntriCon Corp.(a)		1,189		27,775
Invacare Corp.(b)		4,375		22,706
iRadimed Corp.(a)		560		11,452
iRhythm Technologies, Inc.(a)		3,347		264,681
Lantheus Holdings, Inc.(a)		5,154		145,858
LeMaitre Vascular, Inc.(b)		2,283		63,878
LivaNova plc(a)(b)		6,567		472,561
Meridian Bioscience, Inc.		5,517		65,542
Merit Medical Systems, Inc.(a)		7,236		430,976
Mesa Laboratories, Inc.(b)		469		114,595
Misonix, Inc.(a)		977		24,835
Natus Medical, Inc.(a)		4,571		117,429
Neogen Corp.(a)		6,936		430,795
Neuronetics, Inc.(a)		1,687		21,104
Nevro Corp.(a)(b)		3,999		259,255
Novocure Ltd.(a)		11,452		724,110
NuVasive, Inc.(a)		7,021		411,009
OraSure Technologies, Inc.(a)(b)		8,589		79,706
Orthofix Medical, Inc.(a)		2,446		129,345
OrthoPediatrics Corp.(a)(b)		1,181		46,059
Oxford Immunotec Global plc(a)		169		2,325
Pulse Biosciences, Inc.(a)		1,637		21,608
Quidel Corp.(a)(b)		4,790		284,143
Rockwell Medical, Inc.(a)		7,556		22,744
RTI Surgical Holdings, Inc.(a)(b)		7,485		31,811
SeaSpine Holdings Corp.(a)		2,217		29,375
Senseonics Holdings, Inc.(a)		14,434		29,445
Shockwave Medical, Inc.(a)		892		50,924
SI-BONE, Inc.(a)		2,163		43,995
Sientra, Inc.(a)(b)		3,081		18,979
Silk Road Medical, Inc.(a)		936		45,359
Soliton, Inc.(a)		357		5,248
STAAR Surgical Co.(a)(b)		6,016		176,750
Surmodics, Inc.(a)(b)		1,722		74,339
Tactile Systems Technology, Inc.(a)		2,456		139,796
Tandem Diabetes Care, Inc.(a)		7,502		484,029
TransEnterix, Inc.(a)(b)		25,555		34,755
TransMedics Group, Inc.(a)		887		25,714
Utah Medical Products, Inc.(b)		456		43,639
Vapotherm, Inc.(a)		746		17,158
Varex Imaging Corp.(a)(b)		5,069		155,365
ViewRay, Inc.(a)		9,373		82,576
Wright Medical Group NV(a)(b)		17,029		507,805
Zynex, Inc.		2,076		18,663
				10,553,298
Health Care Providers & Services — 1.9%
Addus HomeCare Corp.(a)		1,428		107,029
Amedisys, Inc.(a)		4,241		514,900
American Renal Associates Holdings, Inc.(a)		2,512		18,689
AMN Healthcare Services, Inc.(a)		6,233		338,140
Apollo Medical Holdings, Inc.(a)		851		14,220
Avalon GloboCare Corp.(a)		2,720		7,072
BioScrip, Inc.(a)		16,802		43,685
BioTelemetry, Inc.(a)		4,498		216,579
Brookdale Senior Living, Inc.(a)		24,828		179,010
Catasys, Inc.(a)		948		18,221
Community Health Systems, Inc.(a)(b)		10,916		29,146
CorVel Corp.(a)		1,206		104,934
Cross Country Healthcare, Inc.(a)(b)		4,593		43,082
Diplomat Pharmacy, Inc.(a)		7,537		45,900
Ensign Group, Inc. (The)		6,840		389,333

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Health Care Providers & Services (continued)
Enzo Biochem, Inc.(a)		6,578	$	22,168
Genesis Healthcare, Inc.(a)		8,928		11,071
Hanger, Inc.(a)		4,879		93,433
HealthEquity, Inc.(a)		8,300		542,820
Joint Corp. (The)(a)		1,756		31,959
LHC Group, Inc.(a)(b)		4,067		486,332
Magellan Health, Inc.(a)		2,935		217,865
National HealthCare Corp.(b)		1,684		136,657
National Research Corp.(b)		1,618		93,181
Owens & Minor, Inc.(b)		8,111		25,955
Patterson Cos., Inc.(b)		11,320		259,228
PetIQ, Inc.(a)		2,550		84,048
Providence Service Corp. (The)(a)(b)		1,594		91,400
R1 RCM, Inc.(a)		13,668		171,943
RadNet, Inc.(a)(b)		5,657		78,010
Select Medical Holdings Corp.(a)		14,926		236,876
Surgery Partners, Inc.(a)		3,306		26,911
Tenet Healthcare Corp.(a)		13,922		287,628
Tivity Health, Inc.(a)		6,458		106,169
Triple-S Management Corp., Class B(a)		2,933		69,952
US Physical Therapy, Inc.(b)		1,709		209,472
				5,353,018
Health Care Technology — 1.0%
Allscripts Healthcare Solutions, Inc.(a)		22,519		261,896
Castlight Health, Inc., Class B(a)(b)		13,619		43,989
Computer Programs & Systems, Inc.		1,726		47,966
Evolent Health, Inc., Class A(a)(b)		9,811		77,998
HealthStream, Inc.		3,440		88,958
HMS Holdings Corp.(a)		11,750		380,583
Inovalon Holdings, Inc., Class A(a)(b)		9,518		138,106
Inspire Medical Systems, Inc.(a)(b)		1,806		109,534
NextGen Healthcare, Inc.(a)		7,340		146,066
Omnicell, Inc.(a)(b)		5,540		476,606
OptimizeRx Corp.(a)		1,594		25,823
Simulations Plus, Inc.		1,600		45,696
Tabula Rasa HealthCare, Inc.(a)(b)		2,639		131,765
Teladoc Health, Inc.(a)(b)		9,661		641,587
Vocera Communications, Inc.(a)		4,159		132,755
				2,749,328
Hotels, Restaurants & Leisure — 2.7%
BBX Capital Corp.		8,715		42,791
Biglari Holdings, Inc., Class B(a)		152		15,787
BJ’s Restaurants, Inc.(b)		2,745		120,615
Bloomin’ Brands, Inc.		12,437		235,184
Bluegreen Vacations Corp.		972		11,363
Boyd Gaming Corp.(b)		10,937		294,643
Brinker International, Inc.(b)		5,036		198,167
Carrols Restaurant Group, Inc.(a)		4,613		41,655
Century Casinos, Inc.(a)		3,588		34,804
Cheesecake Factory, Inc. (The)(b)		5,733		250,647
Churchill Downs, Inc.(b)		4,749		546,467
Chuy’s Holdings, Inc.(a)(b)		2,223		50,951
Cracker Barrel Old Country Store, Inc.		2,609		445,435
Dave & Buster’s Entertainment, Inc.		4,939		199,881
Del Frisco’s Restaurant Group, Inc.(a)		4,534		36,091
Del Taco Restaurants, Inc.(a)		3,868		49,588
Denny’s Corp.(a)		7,973		163,686
Dine Brands Global, Inc.(b)		2,281		217,767
Drive Shack, Inc.(a)(b)		8,029		37,656
El Pollo Loco Holdings, Inc.(a)		2,998		31,959
Eldorado Resorts, Inc.(a)(b)		8,895		409,793
Empire Resorts, Inc.(a)		502		4,819
Everi Holdings, Inc.(a)		9,138		109,016

Security	Shares		Value
Hotels, Restaurants & Leisure (continued)
Fiesta Restaurant Group, Inc.(a)		3,154	$	41,443
Golden Entertainment, Inc.(a)(b)		2,413		33,782
Habit Restaurants, Inc. (The), Class A(a)		2,656		27,861
Inspired Entertainment, Inc.(a)		1,142		9,638
International Speedway Corp., Class A		3,217		144,411
J Alexander’s Holdings, Inc.(a)		1,880		21,112
Jack in the Box, Inc.		3,495		284,458
Lindblad Expeditions Holdings, Inc.(a)(b)		3,075		55,196
Marriott Vacations Worldwide Corp.		5,976		576,086
Monarch Casino & Resort, Inc.(a)(b)		1,502		64,195
Nathan’s Famous, Inc.(b)		366		28,592
Noodles & Co.(a)		3,878		30,559
Papa John’s International, Inc.		2,949		131,879
Penn National Gaming, Inc.(a)		15,030		289,478
PlayAGS, Inc.(a)		3,591		69,845
Potbelly Corp.(a)(b)		3,040		15,474
RCI Hospitality Holdings, Inc.		1,101		19,278
Red Lion Hotels Corp.(a)		3,230		22,965
Red Robin Gourmet Burgers, Inc.(a)		1,725		52,733
Red Rock Resorts, Inc., Class A(b)		9,491		203,867
Ruth’s Hospitality Group, Inc.		3,835		87,093
Scientific Games Corp., Class A(a)		7,587		150,374
SeaWorld Entertainment, Inc.(a)		6,836		211,916
Shake Shack, Inc., Class A(a)		3,818		275,660
Speedway Motorsports, Inc.		1,588		29,457
Target Hospitality Corp.(a)		4,408		40,113
Texas Roadhouse, Inc.		9,228		495,267
Twin River Worldwide Holdings, Inc.(a)		2,833		84,282
Wingstop, Inc.		3,964		375,589
				7,421,368
Household Durables — 1.6%
Bassett Furniture Industries, Inc.		1,195		18,224
Beazer Homes USA, Inc.(a)		4,174		40,112
Cavco Industries, Inc.(a)(b)		1,172		184,637
Century Communities, Inc.(a)(b)		3,474		92,339
Ethan Allen Interiors, Inc.		3,176		66,887
Flexsteel Industries, Inc.(b)		891		15,200
GoPro, Inc., Class A(a)		16,564		90,439
Green Brick Partners, Inc.(a)(b)		2,967		24,656
Hamilton Beach Brands Holding Co., Class A(b)		1,018		19,393
Helen of Troy Ltd.(a)		3,397		443,614
Hooker Furniture Corp.		1,537		31,693
Installed Building Products, Inc.(a)		3,057		181,036
iRobot Corp.(a)		3,712		340,168
KB Home		11,411		293,605
La-Z-Boy, Inc.		6,025		184,726
Legacy Housing Corp.(a)		610		7,594
LGI Homes, Inc.(a)(b)		2,703		193,075
Lifetime Brands, Inc.		1,738		16,441
Lovesac Co. (The)(a)		847		26,316
M/I Homes, Inc.(a)		3,678		104,970
MDC Holdings, Inc.		6,701		219,659
Meritage Homes Corp.(a)		4,920		252,593
Purple Innovation, Inc.(a)		885		5,974
Skyline Champion Corp.		6,806		186,348
Sonos, Inc.(a)		9,425		106,879
Taylor Morrison Home Corp., Class A(a)(b)		14,585		305,702
TopBuild Corp.(a)		4,590		379,868
TRI Pointe Group, Inc.(a)		19,211		229,956
Tupperware Brands Corp.		6,622		126,017
Universal Electronics, Inc.(a)(b)		1,789		73,385
William Lyon Homes, Class A(a)		4,242		77,332

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Household Durables (continued)
ZAGG, Inc.(a)(b)		3,629	$	25,258
				4,364,096
Household Products — 0.2%
Central Garden & Pet Co.(a)(b)		1,469		39,589
Central Garden & Pet Co., Class A(a)		5,690		140,202
Oil-Dri Corp. of America(b)		759		25,837
WD-40 Co.(b)		1,855		295,019
				500,647
Independent Power and Renewable Electricity Producers — 0.4%
Atlantic Power Corp.(a)		15,883		38,437
Clearway Energy, Inc.		14,713		244,915
Ormat Technologies, Inc.		5,371		340,468
Pattern Energy Group, Inc., Class A(b)		12,003		277,149
TerraForm Power, Inc., Class A(b)		10,079		144,130
				1,045,099
Industrial Conglomerates — 0.1%
Raven Industries, Inc.(b)		4,915		176,350
Insurance — 2.3%
Ambac Financial Group, Inc.(a)		6,015		101,353
American Equity Investment Life Holding Co.		12,119		329,152
AMERISAFE, Inc.		2,537		161,784
Argo Group International Holdings Ltd.		4,423		327,523
Citizens, Inc.(a)(b)		6,570		47,961
CNO Financial Group, Inc.(b)		21,825		364,041
Crawford & Co., Class A		2,073		21,829
Crawford & Co., Class B		159		1,480
Donegal Group, Inc., Class A		1,325		20,233
eHealth, Inc.(a)		3,022		260,194
EMC Insurance Group, Inc.(b)		1,302		46,911
Employers Holdings, Inc.		4,281		180,958
Enstar Group Ltd.(a)		1,568		273,271
FBL Financial Group, Inc., Class A		1,313		83,769
FedNat Holding Co.		1,731		24,701
Genworth Financial, Inc., Class A(a)		68,535		254,265
Global Indemnity Ltd.(b)		1,088		33,684
Goosehead Insurance, Inc., Class A(b)		1,510		72,178
Greenlight Capital Re Ltd., Class A(a)(b)		3,963		33,646
Hallmark Financial Services, Inc.(a)(b)		1,903		27,080
HCI Group, Inc.(b)		877		35,492
Health Insurance Innovations, Inc., Class A(a)(b)		1,333		34,551
Heritage Insurance Holdings, Inc.(b)		3,616		55,723
Horace Mann Educators Corp.		5,465		220,185
Independence Holding Co.(b)		675		26,136
Investors Title Co.(b)		200		33,400
James River Group Holdings Ltd.		3,701		173,577
Kinsale Capital Group, Inc.		2,659		243,245
MBIA, Inc.(a)		11,754		109,430
National General Holdings Corp.		9,161		210,153
National Western Life Group, Inc., Class A		303		77,871
NI Holdings, Inc.(a)		1,375		24,214
Palomar Holdings, Inc.(a)		771		18,535
ProAssurance Corp.		7,051		254,612
Protective Insurance Corp., Class B		1,437		24,961
RLI Corp.(b)		5,404		463,177
Safety Insurance Group, Inc.(b)		1,948		185,313
Selective Insurance Group, Inc.		7,968		596,723
State Auto Financial Corp.		2,371		82,985
Stewart Information Services Corp.		3,161		127,989
Third Point Reinsurance Ltd.(a)		9,835		101,497
Tiptree, Inc.		3,208		20,210
Trupanion, Inc.(a)		3,847		138,992
United Fire Group, Inc.		2,899		140,486

Security	Shares		Value
Insurance (continued)
United Insurance Holdings Corp.		2,729	$	38,916
Universal Insurance Holdings, Inc.		4,202		117,236
Watford Holdings Ltd.(a)		2,719		74,555
				6,296,177
Interactive Media & Services — 0.5%(a)
Care.com, Inc.		2,987		32,797
Cargurus, Inc.		10,028		362,111
Cars.com, Inc.		8,957		176,632
DHI Group, Inc.		6,873		24,537
Eventbrite, Inc., Class A		4,936		79,963
EverQuote, Inc., Class A		1,140		14,820
Liberty TripAdvisor Holdings, Inc., Class A		9,645		119,598
Meet Group, Inc. (The)		10,523		36,620
QuinStreet, Inc.		6,116		96,939
Travelzoo		766		11,827
TrueCar, Inc.		14,047		76,697
Yelp, Inc.		10,218		349,251
				1,381,792
Internet & Direct Marketing Retail — 0.6%
1-800-Flowers.com, Inc., Class A(a)		3,304		62,379
Duluth Holdings, Inc., Class B(a)		1,462		19,869
Gaia, Inc.(a)(b)		1,765		13,379
Groupon, Inc.(a)		61,253		219,286
Lands’ End, Inc.(a)		1,541		18,831
Leaf Group Ltd.(a)		2,590		19,192
Liberty Expedia Holdings, Inc., Class A(a)		7,361		351,782
Liquidity Services, Inc.(a)		4,077		24,829
Overstock.com, Inc.(a)(b)		3,652		49,667
PetMed Express, Inc.		2,650		41,525
Quotient Technology, Inc.(a)		10,590		113,737
Rubicon Project, Inc. (The)(a)		6,457		41,066
Shutterfly, Inc.(a)		4,641		234,603
Shutterstock, Inc.(b)		2,631		103,109
Stamps.com, Inc.(a)		2,335		105,705
Stitch Fix, Inc., Class A(a)		5,667		181,287
Waitr Holdings, Inc.(a)		7,065		44,439
				1,644,685
IT Services — 2.2%
Brightcove, Inc.(a)		5,103		52,714
Carbonite, Inc.(a)		4,480		116,659
Cardtronics plc, Class A(a)		5,269		143,949
Cass Information Systems, Inc.		1,904		92,306
Conduent, Inc.(a)		23,405		224,454
CSG Systems International, Inc.		4,413		215,487
Endurance International Group Holdings, Inc.(a)		9,321		44,741
EVERTEC, Inc.		8,264		270,233
Evo Payments, Inc., Class A(a)		4,189		132,079
Exela Technologies, Inc.(a)		6,071		13,295
ExlService Holdings, Inc.(a)		4,521		298,974
GTT Communications, Inc.(a)(b)		4,521		79,570
Hackett Group, Inc. (The)		3,187		53,510
I3 Verticals, Inc., Class A(a)		1,168		34,398
Information Services Group, Inc.(a)		5,071		16,024
International Money Express, Inc.(a)		1,670		23,547
KBR, Inc.		19,125		476,978
Limelight Networks, Inc.(a)(b)		14,509		39,174
LiveRamp Holdings, Inc.(a)		9,227		447,325
ManTech International Corp., Class A		3,618		238,245
MAXIMUS, Inc.		8,577		622,176
NIC, Inc.		8,887		142,547
Paysign, Inc.(a)		4,001		53,493
Perficient, Inc.(a)		4,433		152,141
Perspecta, Inc.		19,081		446,686

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
IT Services (continued)
Presidio, Inc.		6,221	$	85,041
PRGX Global, Inc.(a)		2,445		16,430
Priority Technology Holdings, Inc.(a)		801		6,288
Science Applications International Corp.(b)		8,018		694,038
StarTek, Inc.(a)		2,147		17,541
Sykes Enterprises, Inc.(a)		5,252		144,220
TTEC Holdings, Inc.(b)		1,996		92,994
Tucows, Inc., Class A(a)		1,263		77,068
Unisys Corp.(a)		6,703		65,153
USA Technologies, Inc.(a)(b)		7,965		59,180
Verra Mobility Corp.(a)		13,258		173,547
Virtusa Corp.(a)		3,897		173,144
				6,035,349
Leisure Products — 0.4%
Acushnet Holdings Corp.(b)		4,807		126,232
American Outdoor Brands Corp.(a)		7,134		64,277
Callaway Golf Co.(b)		12,778		219,271
Clarus Corp.		2,876		41,529
Escalade, Inc.(b)		1,657		19,006
Johnson Outdoors, Inc., Class A(b)		647		48,247
Malibu Boats, Inc., Class A(a)(b)		2,862		111,189
Marine Products Corp.(b)		921		14,220
MasterCraft Boat Holdings, Inc.(a)(b)		2,448		47,956
Sturm Ruger & Co., Inc.(b)		2,233		121,654
Vista Outdoor, Inc.(a)		7,581		67,319
YETI Holdings, Inc.(a)		4,176		120,895
				1,001,795
Life Sciences Tools & Services — 0.7%
Accelerate Diagnostics, Inc.(a)(b)		3,726		85,251
Cambrex Corp.(a)		4,557		213,313
ChromaDex Corp.(a)(b)		4,789		22,269
Codexis, Inc.(a)(b)		7,145		131,682
Fluidigm Corp.(a)		9,326		114,896
Luminex Corp.		5,765		118,990
Medpace Holdings, Inc.(a)		3,729		243,951
NanoString Technologies, Inc.(a)		4,460		135,361
NeoGenomics, Inc.(a)		11,821		259,353
Pacific Biosciences of California, Inc.(a)		19,248		116,450
Quanterix Corp.(a)(b)		1,281		43,285
Syneos Health, Inc.(a)		8,416		429,974
				1,914,775
Machinery — 4.0%
Actuant Corp., Class A(b)		7,625		189,176
Alamo Group, Inc.(b)		1,332		133,107
Albany International Corp., Class A(b)		3,899		323,266
Altra Industrial Motion Corp.(b)		8,691		311,833
Astec Industries, Inc.(b)		3,042		99,048
Barnes Group, Inc.		6,447		363,224
Blue Bird Corp.(a)(b)		1,933		38,061
Briggs & Stratton Corp.(b)		5,511		56,433
Chart Industries, Inc.(a)		4,794		368,563
CIRCOR International, Inc.(a)		2,639		121,394
Columbus McKinnon Corp.(b)		3,096		129,939
Commercial Vehicle Group, Inc.(a)		3,913		31,382
Douglas Dynamics, Inc.		3,081		122,593
Eastern Co. (The)(b)		893		25,022
Energy Recovery, Inc.(a)(b)		5,077		52,902
EnPro Industries, Inc.		2,750		175,560
ESCO Technologies, Inc.		3,449		284,956
Evoqua Water Technologies Corp.(a)(b)		10,052		143,140
Federal Signal Corp.(b)		8,094		216,514
Franklin Electric Co., Inc.		6,275		298,062
Gencor Industries, Inc.(a)		1,255		16,315

Security	Shares		Value
Machinery (continued)
Global Brass & Copper Holdings, Inc.		2,889	$	126,336
Gorman-Rupp Co. (The)(b)		2,343		76,921
Graham Corp.(b)		1,423		28,759
Greenbrier Cos., Inc. (The)(b)		4,385		133,304
Harsco Corp.(a)(b)		10,688		293,279
Helios Technologies, Inc.(b)		3,957		183,644
Hillenbrand, Inc.		8,338		329,935
Hurco Cos., Inc.		896		31,862
Hyster-Yale Materials Handling, Inc.(b)		1,377		76,093
John Bean Technologies Corp.		4,213		510,321
Kadant, Inc.		1,452		131,856
Kennametal, Inc.(b)		11,111		410,996
LB Foster Co., Class A(a)		1,317		36,007
Lindsay Corp.(b)		1,425		117,149
Luxfer Holdings plc		3,655		89,621
Lydall, Inc.(a)(b)		2,247		45,389
Manitowoc Co., Inc. (The)(a)(b)		4,691		83,500
Meritor, Inc.(a)		10,900		264,325
Milacron Holdings Corp.(a)		9,209		127,084
Miller Industries, Inc.		1,464		45,018
Mueller Industries, Inc.		7,529		220,374
Mueller Water Products, Inc., Class A		21,199		208,174
Navistar International Corp.(a)(b)		6,700		230,815
NN, Inc.(b)		5,677		55,408
Omega Flex, Inc.(b)		370		28,420
Park-Ohio Holdings Corp.(b)		1,153		37,576
Proto Labs, Inc.(a)		3,648		423,241
RBC Bearings, Inc.(a)		3,271		545,635
REV Group, Inc.		3,588		51,703
Rexnord Corp.(a)(b)		14,201		429,154
Spartan Motors, Inc.(b)		4,530		49,649
SPX Corp.(a)		5,913		195,247
SPX FLOW, Inc.(a)		5,732		239,942
Standex International Corp.		1,691		123,680
Tennant Co.		2,457		150,368
Terex Corp.		8,559		268,753
Titan International, Inc.(b)		6,671		32,621
TriMas Corp.(a)		6,087		188,514
Twin Disc, Inc.(a)		1,346		20,325
Wabash National Corp.		7,510		122,188
Watts Water Technologies, Inc., Class A		3,748		349,239
Welbilt, Inc.(a)		17,505		292,333
				10,905,248
Marine — 0.1%
Costamare, Inc.(b)		7,116		36,505
Eagle Bulk Shipping, Inc.(a)		5,652		29,616
Genco Shipping & Trading Ltd.(a)		2,022		17,066
Matson, Inc.		5,768		224,087
Safe Bulkers, Inc.(a)(b)		7,634		11,909
Scorpio Bulkers, Inc.(b)		7,727		35,544
				354,727
Media — 1.0%
Boston Omaha Corp., Class A(a)		1,347		31,183
Cardlytics, Inc.(a)(b)		1,838		47,751
cbdMD, Inc.(a)		1,245		7,345
Central European Media Enterprises Ltd., Class A(a)		11,908		51,919
Clear Channel Outdoor Holdings, Inc.(a)(b)		5,317		25,096
comScore, Inc.(a)		6,621		34,164
Cumulus Media, Inc., Class A(a)		1,889		35,041
Daily Journal Corp.(a)		144		34,272
Emerald Expositions Events, Inc.		3,293		36,717
Entercom Communications Corp., Class A(b)		17,002		98,612

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Media (continued)
Entravision Communications Corp., Class A		8,032	$	25,060
EW Scripps Co. (The), Class A		7,392		113,024
Fluent, Inc.(a)(b)		6,226		33,496
Gannett Co., Inc.(b)		14,394		117,455
Gray Television, Inc.(a)		12,304		201,663
Hemisphere Media Group, Inc.(a)		2,547		32,907
Lee Enterprises, Inc.(a)		7,095		15,893
Liberty Latin America Ltd., Class A(a)		6,060		104,414
Liberty Latin America Ltd., Class C(a)(b)		15,576		267,751
Loral Space & Communications, Inc.(a)		1,705		58,840
Marchex, Inc., Class B(a)		4,549		21,380
MDC Partners, Inc., Class A(a)(b)		7,197		18,136
Meredith Corp.(b)		5,382		296,333
MSG Networks, Inc., Class A(a)		7,859		162,996
National CineMedia, Inc.		8,637		56,659
New Media Investment Group, Inc.(b)		7,919		74,755
Saga Communications, Inc., Class A(b)		599		18,712
Scholastic Corp.(b)		3,899		129,603
TechTarget, Inc.(a)		3,072		65,280
TEGNA, Inc.		29,383		445,152
Tribune Publishing Co.(a)		2,161		17,223
WideOpenWest, Inc.(a)		3,185		23,123
				2,701,955
Metals & Mining — 1.2%
AK Steel Holding Corp.(a)		41,835		99,149
Allegheny Technologies, Inc.(a)(b)		17,007		428,576
Carpenter Technology Corp.		6,379		306,064
Century Aluminum Co.(a)		6,633		45,834
Cleveland-Cliffs, Inc.(b)		38,127		406,815
Coeur Mining, Inc.(a)		27,483		119,276
Commercial Metals Co.		15,977		285,190
Compass Minerals International, Inc.(b)		4,623		254,034
Gold Resource Corp.(b)		7,798		26,357
Haynes International, Inc.		1,648		52,423
Hecla Mining Co.		65,190		117,342
Kaiser Aluminum Corp.(b)		2,188		213,571
Materion Corp.		2,752		186,613
Mayville Engineering Co., Inc.(a)		877		12,103
Novagold Resources, Inc.(a)		31,092		183,754
Olympic Steel, Inc.		1,022		13,950
Ramaco Resources, Inc.(a)		928		4,937
Ryerson Holding Corp.(a)		2,354		19,609
Schnitzer Steel Industries, Inc., Class A(b)		3,479		91,045
SunCoke Energy, Inc.(a)		11,602		103,026
Synalloy Corp.		1,286		20,087
TimkenSteel Corp.(a)(b)		5,311		43,178
Warrior Met Coal, Inc.(b)		6,987		182,501
Worthington Industries, Inc.(b)		5,406		217,646
				3,433,080
Mortgage Real Estate Investment Trusts (REITs) — 1.3%
AG Mortgage Investment Trust, Inc.		4,470		71,073
Anworth Mortgage Asset Corp.(b)		12,933		49,016
Apollo Commercial Real Estate Finance, Inc.		20,382		374,825
Ares Commercial Real Estate Corp.(b)		3,558		52,872
Arlington Asset Investment Corp., Class A		5,008		34,455
ARMOUR Residential REIT, Inc.(b)		8,167		152,233
Blackstone Mortgage Trust, Inc., Class A(b)		16,931		602,405
Capstead Mortgage Corp.		12,221		102,045
Cherry Hill Mortgage Investment Corp.(b)		2,191		35,056
Colony Credit Real Estate, Inc.(b)		11,153		172,871
Dynex Capital, Inc.		3,313		55,493
Ellington Financial, Inc.		3,619		65,033
Exantas Capital Corp.		4,032		45,602

Security	Shares		Value
Mortgage Real Estate Investment Trusts (REITs) (continued)
Granite Point Mortgage Trust, Inc.(b)		7,083	$	135,923
Great Ajax Corp.		2,117		29,638
Invesco Mortgage Capital, Inc.		17,478		281,745
KKR Real Estate Finance Trust, Inc.(b)		3,431		68,346
Ladder Capital Corp.		13,928		231,344
New York Mortgage Trust, Inc.		27,968		173,402
Orchid Island Capital, Inc.(b)		6,950		44,202
PennyMac Mortgage Investment Trust(b)		10,193		222,513
Ready Capital Corp.		4,182		62,312
Redwood Trust, Inc.(b)		12,966		214,328
TPG RE Finance Trust, Inc.		6,654		128,356
Western Asset Mortgage Capital Corp.		6,190		61,776
				3,466,864
Multiline Retail — 0.1%
Big Lots, Inc.		5,334		152,606
Dillard’s, Inc., Class A(b)		1,459		90,867
JC Penney Co., Inc.(a)		41,696		47,533
				291,006
Multi-Utilities — 0.6%
Avista Corp.		8,874		395,780
Black Hills Corp.		8,132		635,679
NorthWestern Corp.		6,836		493,218
Unitil Corp.		1,933		115,767
				1,640,444
Oil, Gas & Consumable Fuels — 2.7%
Abraxas Petroleum Corp.(a)(b)		20,376		20,987
Altus Midstream Co.(a)		6,733		25,047
Arch Coal, Inc., Class A(b)		2,283		215,081
Ardmore Shipping Corp.(a)		4,945		40,302
Berry Petroleum Corp.		8,603		91,192
Bonanza Creek Energy, Inc.(a)		2,503		52,263
Brigham Minerals, Inc., Class A(a)		2,188		46,955
California Resources Corp.(a)(b)		6,549		128,884
Callon Petroleum Co.(a)		31,167		205,391
Carrizo Oil & Gas, Inc.(a)		12,156		121,803
Chaparral Energy, Inc., Class A(a)		4,210		19,829
Clean Energy Fuels Corp.(a)(b)		18,219		48,645
CNX Resources Corp.(a)		26,319		192,392
Comstock Resources, Inc.(a)		2,053		11,435
CONSOL Energy, Inc.(a)		3,730		99,255
Contura Energy, Inc.(a)		2,568		133,279
CVR Energy, Inc.		4,018		200,860
Delek US Holdings, Inc.		10,400		421,408
Denbury Resources, Inc.(a)(b)		61,047		75,698
DHT Holdings, Inc.(b)		12,204		72,126
Diamond S Shipping, Inc.(a)		2,946		37,620
Dorian LPG Ltd.(a)		3,739		33,726
Earthstone Energy, Inc., Class A(a)		2,843		17,399
Energy Fuels, Inc.(a)		11,654		36,477
Evolution Petroleum Corp.(b)		3,310		23,667
Extraction Oil & Gas, Inc.(a)		13,580		58,801
Falcon Minerals Corp.(a)		5,120		43,008
GasLog Ltd.		5,410		77,904
Golar LNG Ltd.(b)		12,876		237,948
Goodrich Petroleum Corp.(a)		1,356		17,614
Green Plains, Inc.(b)		5,233		56,412
Gulfport Energy Corp.(a)		21,910		107,578
Hallador Energy Co.		2,493		14,036
HighPoint Resources Corp.(a)(b)		14,441		26,283
International Seaways, Inc.(a)		3,396		64,524
Isramco, Inc.(a)		105		12,443
Jagged Peak Energy, Inc.(a)		9,179		75,910
Laredo Petroleum, Inc.(a)		24,586		71,299

SCHEDULE OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Magnolia Oil & Gas Corp., Class A(a)		13,573	$	157,175
Matador Resources Co.(a)		15,048		299,154
Midstates Petroleum Co., Inc.(a)		1,547		9,112
Montage Resources Corp.(a)		2,916		17,788
NACCO Industries, Inc., Class A(b)		496		25,762
NextDecade Corp.(a)		1,214		7,672
Nordic American Tankers Ltd.(b)		18,951		44,345
Northern Oil and Gas, Inc.(a)		37,817		72,987
Oasis Petroleum, Inc.(a)		43,283		245,847
Overseas Shipholding Group, Inc., Class A(a)(b)		9,123		17,151
Panhandle Oil and Gas, Inc., Class A		2,093		27,293
Par Pacific Holdings, Inc.(a)		4,580		93,982
PDC Energy, Inc.(a)		9,012		324,973
Peabody Energy Corp.		9,621		231,866
Penn Virginia Corp.(a)		1,845		56,605
PrimeEnergy Resources Corp.(a)		68		9,053
QEP Resources, Inc.(a)		32,392		234,194
Renewable Energy Group, Inc.(a)(b)		4,902		77,746
REX American Resources Corp.(a)(b)		756		55,112
Ring Energy, Inc.(a)		7,602		24,707
Roan Resources, Inc.(a)		4,958		8,627
Rosehill Resources, Inc.(a)		1,463		5,413
SandRidge Energy, Inc.(a)		3,997		27,659
Scorpio Tankers, Inc.		5,875		173,430
SemGroup Corp., Class A(b)		10,982		131,784
Ship Finance International Ltd.(b)		11,169		139,724
SilverBow Resources, Inc.(a)		792		10,969
SM Energy Co.		15,199		190,291
Southwestern Energy Co.(a)(b)		73,906		233,543
SRC Energy, Inc.(a)		33,223		164,786
Talos Energy, Inc.(a)		2,676		64,358
Teekay Corp.		9,099		31,301
Teekay Tankers Ltd., Class A		26,822		34,332
Tellurian, Inc.(a)(b)		12,799		100,472
Ultra Petroleum Corp.(a)		1,433		258
Unit Corp.(a)		6,950		61,786
Uranium Energy Corp.(a)(b)		24,505		33,572
W&T Offshore, Inc.(a)		12,348		61,246
Whiting Petroleum Corp.(a)		12,356		230,810
World Fuel Services Corp.		8,898		319,972
				7,292,338
Paper & Forest Products — 0.4%
Boise Cascade Co.		5,163		145,132
Clearwater Paper Corp.(a)		2,145		39,661
Louisiana-Pacific Corp.		16,868		442,279
Neenah, Inc.		2,296		155,095
PH Glatfelter Co.		5,770		97,398
Schweitzer-Mauduit International, Inc.		4,246		140,882
Verso Corp., Class A(a)		4,578		87,211
				1,107,658
Personal Products — 0.3%
Edgewell Personal Care Co.(a)(b)		7,362		198,406
elf Beauty, Inc.(a)		3,563		50,238
Inter Parfums, Inc.		2,391		158,977
Lifevantage Corp.(a)		1,846		23,961
Medifast, Inc.(b)		1,552		199,122
Nature’s Sunshine Products, Inc.(a)		1,254		11,650
Revlon, Inc., Class A(a)(b)		1,015		19,620
USANA Health Sciences, Inc.(a)		1,832		145,516
Youngevity International, Inc.(a)		1,062		6,053
				813,543

Security	Shares		Value
Pharmaceuticals — 1.7%
AcelRx Pharmaceuticals, Inc.(a)		10,527	$	26,633
Acer Therapeutics, Inc.(a)		1,275		4,972
Aclaris Therapeutics, Inc.(a)		4,586		10,043
Aerie Pharmaceuticals, Inc.(a)		5,718		168,967
Akorn, Inc.(a)		12,399		63,855
Amneal Pharmaceuticals, Inc.(a)		12,653		90,722
Amphastar Pharmaceuticals, Inc.(a)		4,978		105,086
ANI Pharmaceuticals, Inc.(a)		1,233		101,353
Aratana Therapeutics, Inc.(a)		6,581		33,958
Arvinas, Inc.(a)		2,372		52,160
Assertio Therapeutics, Inc.(a)(b)		8,735		30,136
Axsome Therapeutics, Inc.(a)		3,283		84,537
BioDelivery Sciences International, Inc.(a)		10,900		50,685
Cerecor, Inc.(a)		2,832		15,406
Chiasma, Inc.(a)		3,491		26,078
Collegium Pharmaceutical, Inc.(a)(b)		4,353		57,242
Corcept Therapeutics, Inc.(a)(b)		12,970		144,615
Corium International, Inc., CVR(a)		3,221		580
CorMedix, Inc.(a)		2,364		21,205
Cymabay Therapeutics, Inc.(a)		9,305		66,624
Dermira, Inc.(a)(b)		6,291		60,142
Dova Pharmaceuticals, Inc.(a)		937		13,212
Eloxx Pharmaceuticals, Inc.(a)		2,875		28,664
Endo International plc(a)		29,752		122,578
Evofem Biosciences, Inc.(a)		1,861		12,357
Evolus, Inc.(a)		1,430		20,907
EyePoint Pharmaceuticals, Inc.(a)		8,209		13,463
Innoviva, Inc.(a)		8,658		126,060
Intersect ENT, Inc.(a)(b)		4,208		95,774
Intra-Cellular Therapies, Inc.(a)		5,947		77,192
Kala Pharmaceuticals, Inc.(a)(b)		3,181		20,295
Kaleido Biosciences, Inc.(a)		662		7,679
Lannett Co., Inc.(a)		4,575		27,724
Liquidia Technologies, Inc.(a)		1,777		14,216
Mallinckrodt plc(a)		11,555		106,075
Marinus Pharmaceuticals, Inc.(a)(b)		6,383		26,489
Medicines Co. (The)(a)		9,519		347,158
Menlo Therapeutics, Inc.(a)		2,055		12,309
MyoKardia, Inc.(a)		6,004		301,041
NGM Biopharmaceuticals, Inc.(a)		900		13,176
Ocular Therapeutix, Inc.(a)(b)		5,170		22,748
Odonate Therapeutics, Inc.(a)		1,000		36,690
Omeros Corp.(a)(b)		6,422		100,761
Optinose, Inc.(a)		3,372		23,874
Osmotica Pharmaceuticals plc(a)		920		3,496
Pacira BioSciences, Inc.(a)		5,482		238,412
Paratek Pharmaceuticals, Inc.(a)(b)		4,042		16,128
Phibro Animal Health Corp., Class A		2,821		89,623
Prestige Consumer Healthcare, Inc.(a)		7,079		224,263
Reata Pharmaceuticals, Inc., Class A(a)		2,717		256,349
resTORbio, Inc.(a)		2,014		20,543
Revance Therapeutics, Inc.(a)		5,983		77,599
SIGA Technologies, Inc.(a)(b)		7,860		44,645
Strongbridge Biopharma plc(a)		4,835		15,134
Supernus Pharmaceuticals, Inc.(a)		6,672		220,776
TherapeuticsMD, Inc.(a)(b)		26,706		69,436
Theravance Biopharma, Inc.(a)(b)		6,018		98,274
Tricida, Inc.(a)(b)		2,949		116,367
Verrica Pharmaceuticals, Inc.(a)		1,977		22,973
WaVe Life Sciences Ltd.(a)(b)		3,046		79,470
Xeris Pharmaceuticals, Inc.(a)(b)		3,600		41,184
Zogenix, Inc.(a)		5,772		275,786
Zynerba Pharmaceuticals, Inc.(a)		2,814		38,130
				4,734,029

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Professional Services — 1.6%
Acacia Research Corp.(a)		5,266	$	15,587
ASGN, Inc.(a)		6,917		419,170
Barrett Business Services, Inc.		998		82,435
BG Staffing, Inc.		1,420		26,810
CBIZ, Inc.(a)		6,852		134,231
CRA International, Inc.		1,043		39,978
Exponent, Inc.		6,968		407,907
Forrester Research, Inc.		1,475		69,369
Franklin Covey Co.(a)		1,317		44,778
FTI Consulting, Inc.(a)		5,108		428,255
GP Strategies Corp.(a)		1,543		23,268
Heidrick & Struggles International, Inc.		2,480		74,326
Huron Consulting Group, Inc.(a)		3,039		153,105
ICF International, Inc.		2,474		180,107
InnerWorkings, Inc.(a)(b)		6,561		25,063
Insperity, Inc.		5,233		639,159
Kelly Services, Inc., Class A		4,468		117,017
Kforce, Inc.		3,061		107,410
Korn Ferry		7,624		305,494
Mistras Group, Inc.(a)		2,325		33,410
Navigant Consulting, Inc.		5,191		120,379
Resources Connection, Inc.(b)		3,958		63,368
TriNet Group, Inc.(a)		6,038		409,376
TrueBlue, Inc.(a)		5,348		117,977
Upwork, Inc.(a)(b)		7,414		119,217
WageWorks, Inc.(a)		5,412		274,875
Willdan Group, Inc.(a)		1,339		49,878
				4,481,949
Real Estate Management & Development — 0.7%
Altisource Portfolio Solutions SA(a)		896		17,615
American Realty Investors, Inc.(a)		317		4,324
Consolidated-Tomoka Land Co.		677		40,417
Cushman & Wakefield plc(a)		13,807		246,869
eXp World Holdings, Inc.(a)		2,154		23,974
Forestar Group, Inc.(a)(b)		1,390		27,175
FRP Holdings, Inc.(a)		983		54,822
Griffin Industrial Realty, Inc.		166		5,868
HFF, Inc., Class A		5,185		235,814
Kennedy-Wilson Holdings, Inc.		16,641		342,305
Marcus & Millichap, Inc.(a)		3,119		96,221
Maui Land & Pineapple Co., Inc.(a)		1,072		11,031
Newmark Group, Inc., Class A		19,826		178,037
Rafael Holdings, Inc., Class B(a)		1,408		40,480
RE/MAX Holdings, Inc., Class A		2,368		72,840
Realogy Holdings Corp.		15,425		111,677
Redfin Corp.(a)		11,955		214,951
RMR Group, Inc. (The), Class A(b)		935		43,926
St. Joe Co. (The)(a)(b)		4,678		80,836
Stratus Properties, Inc.(a)(b)		832		26,982
Tejon Ranch Co.(a)(b)		2,793		46,336
Transcontinental Realty Investors, Inc.(a)		242		6,202
				1,928,702
Road & Rail — 0.5%
ArcBest Corp.(b)		3,409		95,827
Avis Budget Group, Inc.(a)		8,003		281,386
Covenant Transportation Group, Inc., Class A(a)		1,638		24,095
Daseke, Inc.(a)(b)		6,707		24,145
Heartland Express, Inc.		6,208		112,179
Hertz Global Holdings, Inc.(a)		8,702		138,884
Marten Transport Ltd.		5,193		94,253
PAM Transportation Services, Inc.(a)		250		15,500
Roadrunner Transportation Systems, Inc.(a)		586		5,596
Saia, Inc.(a)		3,500		226,345

Security	Shares		Value
Road & Rail (continued)
Universal Logistics Holdings, Inc.		1,224	$	27,503
US Xpress Enterprises, Inc., Class A(a)		2,495		12,824
Werner Enterprises, Inc.(b)		6,165		191,608
YRC Worldwide, Inc.(a)		4,269		17,204
				1,267,349
Semiconductors & Semiconductor Equipment — 2.2%
Adesto Technologies Corp.(a)		3,606		29,389
Advanced Energy Industries, Inc.(a)		5,174		291,141
Alpha & Omega Semiconductor Ltd.(a)(b)		2,486		23,219
Ambarella, Inc.(a)		4,276		188,700
Amkor Technology, Inc.(a)		13,591		101,389
Aquantia Corp.(a)		3,802		49,540
Axcelis Technologies, Inc.(a)		4,256		64,053
AXT, Inc.(a)		4,613		18,267
Brooks Automation, Inc.(b)		9,593		371,729
Cabot Microelectronics Corp.(b)		3,915		430,963
CEVA, Inc.(a)		2,930		71,346
Cirrus Logic, Inc.(a)		8,017		350,343
Cohu, Inc.(b)		5,610		86,562
Diodes, Inc.(a)		5,552		201,926
DSP Group, Inc.(a)		2,886		41,443
FormFactor, Inc.(a)		10,185		159,599
GSI Technology, Inc.(a)		2,022		17,329
Ichor Holdings Ltd.(a)		2,949		69,714
Impinj, Inc.(a)		1,962		56,152
Inphi Corp.(a)		6,075		304,358
Lattice Semiconductor Corp.(a)		16,853		245,885
MACOM Technology Solutions Holdings, Inc.(a)		6,018		91,052
MaxLinear, Inc.(a)		8,814		206,600
Nanometrics, Inc.(a)		3,183		110,482
NeoPhotonics Corp.(a)		5,049		21,105
NVE Corp.		634		44,145
PDF Solutions, Inc.(a)(b)		3,756		49,279
Photronics, Inc.(a)		9,016		73,931
Power Integrations, Inc.		3,804		305,005
Rambus, Inc.(a)		14,984		180,407
Rudolph Technologies, Inc.(a)		4,184		115,604
Semtech Corp.(a)		8,913		428,270
Silicon Laboratories, Inc.(a)		5,810		600,754
SMART Global Holdings, Inc.(a)		1,726		39,681
SunPower Corp.(a)		8,706		93,067
Synaptics, Inc.(a)		4,719		137,512
Ultra Clean Holdings, Inc.(a)		5,104		71,048
Veeco Instruments, Inc.(a)		6,420		78,452
Xperi Corp.(b)		6,776		139,518
				5,958,959
Software — 4.6%
8x8, Inc.(a)		12,666		305,251
A10 Networks, Inc.(a)		7,581		51,702
ACI Worldwide, Inc.(a)		14,772		507,271
Agilysys, Inc.(a)		2,383		51,163
Alarm.com Holdings, Inc.(a)		4,965		265,628
Altair Engineering, Inc., Class A(a)(b)		5,199		209,988
Amber Road, Inc.(a)		3,384		44,195
American Software, Inc., Class A(b)		3,796		49,917
Appfolio, Inc., Class A(a)(b)		2,065		211,188
Appian Corp.(a)		4,215		152,035
Avaya Holdings Corp.(a)		15,009		178,757
Benefitfocus, Inc.(a)		4,013		108,953
Blackbaud, Inc.(b)		6,614		552,269
Blackline, Inc.(a)		5,785		309,555
Bottomline Technologies DE, Inc.(a)(b)		5,806		256,857
Box, Inc., Class A(a)		19,381		341,299

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Software (continued)
Carbon Black, Inc.(a)(b)		7,552	$	126,269
ChannelAdvisor Corp.(a)(b)		3,719		32,578
Cision Ltd.(a)		12,332		144,654
Cloudera, Inc.(a)		31,939		167,999
CommVault Systems, Inc.(a)		4,654		230,932
Cornerstone OnDemand, Inc.(a)		7,558		437,835
Digimarc Corp.(a)		1,500		66,585
Digital Turbine, Inc.(a)		10,404		52,020
Domo, Inc., Class B(a)		2,403		65,650
Ebix, Inc.(b)		3,196		160,503
eGain Corp.(a)(b)		2,825		22,996
Envestnet, Inc.(a)		6,451		441,055
Everbridge, Inc.(a)		4,399		393,359
Five9, Inc.(a)		7,951		407,807
ForeScout Technologies, Inc.(a)		5,494		186,027
GTY Technology Holdings, Inc.(a)		3,959		27,119
Ideanomics, Inc.(a)		6,855		16,863
Instructure, Inc.(a)(b)		4,549		193,333
Intelligent Systems Corp.(a)		910		26,199
j2 Global, Inc.		6,295		559,563
LivePerson, Inc.(a)		8,230		230,769
Majesco(a)(b)		1,107		10,306
MicroStrategy, Inc., Class A(a)		1,142		163,660
Mitek Systems, Inc.(a)		4,222		41,967
MobileIron, Inc.(a)		12,914		80,067
Model N, Inc.(a)(b)		4,362		85,059
Monotype Imaging Holdings, Inc.		5,502		92,654
OneSpan, Inc.(a)		4,565		64,686
Progress Software Corp.		6,016		262,418
PROS Holdings, Inc.(a)		4,445		281,191
Q2 Holdings, Inc.(a)(b)		5,411		413,184
QAD, Inc., Class A		1,497		60,194
Qualys, Inc.(a)		4,599		400,481
Rapid7, Inc.(a)		6,497		375,787
Rimini Street, Inc.(a)(b)		2,641		13,997
SailPoint Technologies Holding, Inc.(a)		11,605		232,564
SecureWorks Corp., Class A(a)(b)		1,136		15,097
SharpSpring, Inc.(a)		1,137		14,770
ShotSpotter, Inc.(a)		1,098		48,532
SPS Commerce, Inc.(a)		2,427		248,064
SVMK, Inc.(a)(b)		11,339		187,207
Synchronoss Technologies, Inc.(a)		5,153		40,760
Telaria, Inc.(a)		5,908		44,428
Telenav, Inc.(a)		4,426		35,408
Tenable Holdings, Inc.(a)(b)		5,004		142,814
TiVo Corp.		16,782		123,683
Upland Software, Inc.(a)		3,027		137,819
Varonis Systems, Inc.(a)(b)		4,013		248,565
Verint Systems, Inc.(a)		8,840		475,415
VirnetX Holding Corp.(a)(b)		8,291		51,487
Workiva, Inc.(a)(b)		4,732		274,882
Yext, Inc.(a)(b)		12,570		252,531
Zix Corp.(a)		7,316		66,502
Zuora, Inc., Class A(a)		11,528		176,609
				12,748,931
Specialty Retail — 2.3%
Aaron’s, Inc.		9,109		559,384
Abercrombie & Fitch Co., Class A(b)		9,007		144,472
American Eagle Outfitters, Inc.(b)		21,896		370,042
America’sCar-Mart, Inc.(a)		855		73,598
Asbury Automotive Group, Inc.(a)		2,608		219,959
Ascena Retail Group, Inc.(a)(b)		23,254		14,185
At Home Group, Inc.(a)		6,665		44,389
Barnes & Noble Education, Inc.(a)		4,763		16,004

Security	Shares		Value
Specialty Retail (continued)
Barnes & Noble, Inc.		7,917	$	52,965
Bed Bath & Beyond, Inc.(b)		17,120		198,934
Boot Barn Holdings, Inc.(a)		3,827		136,394
Buckle, Inc. (The)(b)		3,825		66,211
Caleres, Inc.(b)		5,590		111,353
Camping World Holdings, Inc., Class A		4,304		53,456
Cato Corp. (The), Class A(b)		2,996		36,911
Chico’s FAS, Inc.(b)		15,330		51,662
Children’s Place, Inc. (The)		2,056		196,101
Citi Trends, Inc.		1,638		23,948
Conn’s, Inc.(a)		2,609		46,492
Container Store Group, Inc. (The)(a)		2,426		17,758
Designer Brands, Inc., Class A		8,832		169,309
Express, Inc.(a)		9,666		26,388
GameStop Corp., Class A		13,315		72,833
Genesco, Inc.(a)(b)		2,427		102,638
GNC Holdings, Inc., Class A(a)(b)		10,811		16,216
Group 1 Automotive, Inc.		2,374		194,407
Guess?, Inc.		7,648		123,515
Haverty Furniture Cos., Inc.(b)		2,509		42,728
Hibbett Sports, Inc.(a)		2,507		45,627
Hudson Ltd., Class A(a)		5,283		72,853
J. Jill, Inc.(b)		2,734		5,441
Lithia Motors, Inc., Class A(b)		2,992		355,390
Lumber Liquidators Holdings, Inc.(a)		3,779		43,647
MarineMax, Inc.(a)		3,020		49,649
Michaels Cos., Inc. (The)(a)		11,541		100,407
Monro, Inc.(b)		4,411		376,258
Murphy USA, Inc.(a)(b)		4,118		346,036
National Vision Holdings, Inc.(a)		9,315		286,250
Office Depot, Inc.(b)		73,709		151,841
Party City Holdco, Inc.(a)(b)		7,527		55,173
Rent-A-Center, Inc.(a)		6,584		175,332
RH(a)(b)		2,467		285,185
RTW RetailWinds, Inc.(a)(b)		4,547		7,730
Sally Beauty Holdings, Inc.(a)(b)		16,426		219,123
Shoe Carnival, Inc.(b)		1,364		37,646
Signet Jewelers Ltd.(b)		7,068		126,376
Sleep Number Corp.(a)		4,021		162,408
Sonic Automotive, Inc., Class A		3,401		79,413
Sportsman’s Warehouse Holdings, Inc.(a)		5,721		21,625
Tailored Brands, Inc.(b)		6,597		38,065
Tile Shop Holdings, Inc.(b)		4,709		18,836
Tilly’s, Inc., Class A		3,138		23,943
Winmark Corp.		311		53,850
Zumiez, Inc.(a)		2,701		70,496
				6,390,852
Technology Hardware, Storage & Peripherals — 0.3%
3D Systems Corp.(a)(b)		15,391		140,058
AstroNova, Inc.		902		23,308
Avid Technology, Inc.(a)(b)		3,792		34,583
Cray, Inc.(a)		5,526		192,415
Diebold Nixdorf, Inc.(a)(b)		10,128		92,772
Electronics For Imaging, Inc.(a)		5,803		214,189
Immersion Corp.(a)(b)		4,242		32,282
Sonim Technologies, Inc.(a)		482		6,136
Stratasys Ltd.(a)(b)		6,973		204,797
				940,540
Textiles, Apparel & Luxury Goods — 0.9%
Centric Brands, Inc.(a)		2,091		8,594
Crocs, Inc.(a)		8,661		171,055
Culp, Inc.(b)		1,410		26,790
Deckers Outdoor Corp.(a)		3,955		695,961

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Textiles, Apparel & Luxury Goods (continued)
Delta Apparel, Inc.(a)		815	$	18,892
Fossil Group, Inc.(a)(b)		6,532		75,118
G-III Apparel Group Ltd.(a)(b)		6,131		180,374
Kontoor Brands, Inc.(a)		5,994		167,952
Movado Group, Inc.		2,089		56,403
Oxford Industries, Inc.(b)		2,223		168,503
Rocky Brands, Inc.(b)		943		25,725
Steven Madden Ltd.		11,569		392,767
Superior Group of Cos., Inc.(b)		1,315		22,526
Unifi, Inc.(a)		2,074		37,685
Vera Bradley, Inc.(a)		3,000		36,000
Vince Holding Corp.(a)		408		5,692
Wolverine World Wide, Inc.(b)		11,868		326,845
				2,416,882
Thrifts & Mortgage Finance — 2.1%
Axos Financial, Inc.(a)		7,860		214,185
Bank7 Corp.(a)		357		6,601
Bridgewater Bancshares, Inc.(a)		3,082		35,566
Capitol Federal Financial, Inc.(b)		17,882		246,235
Columbia Financial, Inc.(a)		7,133		107,708
Dime Community Bancshares, Inc.		4,308		81,809
Entegra Financial Corp.(a)		1,062		31,988
ESSA Bancorp, Inc.		1,222		18,636
Essent Group Ltd.(a)		13,005		611,105
Federal Agricultural Mortgage Corp., Class C		1,192		86,611
First Defiance Financial Corp.(b)		2,648		75,653
Flagstar Bancorp, Inc.		3,924		130,041
FS Bancorp, Inc.		493		25,572
Greene County Bancorp, Inc.(b)		388		11,415
Hingham Institution for Savings		187		37,028
Home Bancorp, Inc.(b)		1,018		39,173
HomeStreet, Inc.(a)		3,310		98,108
Kearny Financial Corp.(b)		11,117		147,745
Luther Burbank Corp.		2,629		28,630
Merchants Bancorp(b)		1,267		21,577
Meridian Bancorp, Inc.(b)		6,383		114,192
Meta Financial Group, Inc.		4,976		139,577
MMA Capital Holdings, Inc.(a)		637		21,320
Mr Cooper Group, Inc.(a)(b)		10,364		83,016
NMI Holdings, Inc., Class A(a)		8,807		250,031
Northfield Bancorp, Inc.(b)		5,768		90,039
Northwest Bancshares, Inc.(b)		13,689		241,063
OceanFirst Financial Corp.		6,843		170,049
Ocwen Financial Corp.(a)		18,506		38,307
OP Bancorp(b)		1,864		20,206
Oritani Financial Corp.		5,330		94,554
PCSB Financial Corp.		2,088		42,282
PDL Community Bancorp(a)(b)		1,335		19,077
PennyMac Financial Services, Inc.		2,351		52,145
Provident Bancorp, Inc.(a)		658		18,417
Provident Financial Holdings, Inc.		732		15,365
Provident Financial Services, Inc.		8,238		199,772
Prudential Bancorp, Inc.		1,270		24,028
Radian Group, Inc.		28,352		647,843
Riverview Bancorp, Inc.(b)		3,056		26,098
Southern Missouri Bancorp, Inc.		1,047		36,467
Sterling Bancorp, Inc.		2,419		24,117
Territorial Bancorp, Inc.		1,063		32,847
Timberland Bancorp, Inc.		982		29,342
TrustCo Bank Corp.		12,433		98,469
United Community Financial Corp.(b)		6,439		61,621
United Financial Bancorp, Inc.(b)		6,735		95,502
Walker & Dunlop, Inc.		3,777		200,974
Washington Federal, Inc.(b)		10,931		381,820

Security	Shares		Value
Thrifts & Mortgage Finance (continued)
Waterstone Financial, Inc.(b)		3,350	$	57,151
Western New England Bancorp, Inc.(b)		3,480		32,503
WSFS Financial Corp.		7,119		294,015
				5,707,595
Tobacco — 0.2%
22nd Century Group, Inc.(a)(b)		14,966		31,279
Pyxus International, Inc.(a)		1,261		19,167
Turning Point Brands, Inc.		1,111		54,417
Universal Corp.		3,281		199,386
Vector Group Ltd.		14,348		139,893
				444,142
Trading Companies & Distributors — 1.3%
Aircastle Ltd.		7,193		152,923
Applied Industrial Technologies, Inc.		5,185		319,033
Beacon Roofing Supply, Inc.(a)		9,205		338,008
BlueLinx Holdings, Inc.(a)(b)		1,118		22,148
BMC Stock Holdings, Inc.(a)		8,952		189,782
CAI International, Inc.(a)		2,260		56,093
DXP Enterprises, Inc.(a)(b)		2,258		85,556
EVI Industries, Inc.		557		21,316
Foundation Building Materials, Inc.(a)		2,100		37,338
GATX Corp.(b)		4,889		387,649
General Finance Corp.(a)		1,474		12,337
GMS, Inc.(a)		4,325		95,150
H&E Equipment Services, Inc.(b)		4,416		128,461
Herc Holdings, Inc.(a)		3,309		151,651
Kaman Corp.(b)		3,751		238,901
Lawson Products, Inc.(a)		584		21,450
MRC Global, Inc.(a)(b)		10,833		185,461
NOW, Inc.(a)		14,703		217,016
Rush Enterprises, Inc., Class A(b)		3,844		140,383
Rush Enterprises, Inc., Class B		483		17,827
SiteOne Landscape Supply, Inc.(a)		5,523		382,744
Systemax, Inc.(b)		1,623		35,966
Textainer Group Holdings Ltd.(a)(b)		3,621		36,500
Titan Machinery, Inc.(a)		2,475		50,936
Transcat, Inc.(a)		853		21,828
Triton International Ltd.(b)		7,698		252,187
Veritiv Corp.(a)		1,816		35,267
Willis Lease Finance Corp.(a)		459		26,769
				3,660,680
Water Utilities — 0.5%
American States Water Co.(b)		4,956		372,889
AquaVenture Holdings Ltd.(a)		1,616		32,272
Artesian Resources Corp., Class A		1,099		40,850
Cadiz, Inc.(a)(b)		1,930		21,713
California Water Service Group		6,509		329,551
Connecticut Water Service, Inc.(b)		1,600		111,552
Consolidated Water Co. Ltd.		1,787		25,483
Global Water Resources, Inc.(b)		1,267		13,227
Middlesex Water Co.(b)		2,201		130,409
Pure Cycle Corp.(a)(b)		2,648		28,069
SJW Group(b)		3,564		216,584
York Water Co. (The)(b)		1,710		61,081
				1,383,680
Wireless Telecommunication Services — 0.2%
Boingo Wireless, Inc.(a)		5,878		105,628
Gogo, Inc.(a)		7,458		29,683
Shenandoah Telecommunications Co.(b)		6,481		249,648

SCHEDULE OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Wireless Telecommunication Services (continued)
Spok Holdings, Inc.		2,577	$	38,758
				423,717
Total Common Stocks — 98.7% (Cost: $226,736,254)				271,028,167
Investment Companies — 0.0%
Ferroglobe Representation & Warranty   Insurance Trust - Beneficial Interest Units	10,979		—
Total Investment Companies — 0.0% (Cost: $—)				—
Rights — 0.0%
Electrical Equipment — 0.0%
Babcock & Wilcox(a)		5,219		221

Security	Shares		Value
Road & Rail — 0.0%
Hertz Global Holdings, Inc.(a)		7,281	$	14,198
Total Rights — 0.0% (Cost: $21,021)				14,419
Total Long-Term Investments — 98.7% (Cost: $226,757,275)				271,042,586
Short-Term Securities — 16.2%(d)*
BlackRock Liquidity Funds,T-Fund, Institutional Class,    2.26%		3,399,894		3,399,894
SL Liquidity Series, LLC, Money Market Series,    2.55%(e)		41,073,592		41,085,914
Total Short-Term Securities — 16.2% (Cost: $44,483,528)				44,485,808
Total Investments — 114.9% (Cost: $271,240,803)				315,528,394
Liabilities in Excess of Other Assets — (14.9)%				(40,909,001	)
Net Assets — 100.0%			$	274,619,393

^(a)  Non-income producing security.

^(b)  Security, or a portion of the security, is on loan.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d) Annualized7-day yield as of period end.

^(e)  Security was purchased with the cash collateral from loaned securities.

* During the six months ended June 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		5,505,930		(2,106,036	)		3,399,894	$	3,399,894	$	60,993		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		—		41,073,592			41,073,592		41,085,914		77,592	(b)		2,315		2,280
								$	44,485,808	$	138,585		$	2,315	$	2,280

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industrysub-classifications for reporting ease.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Russell 2000E-Mini Index		53		09/20/19	$	4,153	$	76,742

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Commodity Contracts		Credit     Contracts		Equity     Contracts		Foreign Currency Exchange     Contracts		Interest Rate     Contracts		Other     Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	76,742	$	—	$	—	$	—	$	76,742

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit     Contracts		Equity     Contracts		Foreign Currency Exchange     Contracts		Interest Rate     Contracts		Other     Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	625,647	$	—	$	—	$	—	$	625,647
Net Change in Unrealized Appreciation   (Depreciation) on: Futures contracts	—		—		275,887		—		—		—		275,887

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	4,932,438

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks:
Aerospace & Defense	$	3,456,247	$	—	$	—	$	3,456,247
Air Freight & Logistics		864,862		—		—		864,862
Airlines		1,310,102		—		—		1,310,102
Auto Components		3,163,109		—		—		3,163,109
Automobiles		164,224		—		—		164,224

SCHEDULE OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund

	Level 1		Level 2		Level 3		Total
Banks	$	26,505,134	$	—	$	—	$	26,505,134
Beverages		946,512		—		—		946,512
Biotechnology		21,439,698		215		—		21,439,913
Building Products		3,737,406		—		—		3,737,406
Capital Markets		3,858,755		—		—		3,858,755
Chemicals		5,408,546		—		—		5,408,546
Commercial Services & Supplies		7,235,182		—		—		7,235,182
Communications Equipment		3,162,828		—		—		3,162,828
Construction & Engineering		3,053,874		—		—		3,053,874
Construction Materials		429,985		—		—		429,985
Consumer Finance		1,913,663		—		—		1,913,663
Containers & Packaging		280,128		—		—		280,128
Distributors		325,216		—		—		325,216
Diversified Consumer Services		2,771,004		—		—		2,771,004
Diversified Financial Services		582,330		—		—		582,330
Diversified Telecommunication Services		1,742,060		—		—		1,742,060
Electric Utilities		2,812,734		—		—		2,812,734
Electrical Equipment		2,593,928		—		—		2,593,928
Electronic Equipment, Instruments & Components		6,663,041		—		—		6,663,041
Energy Equipment & Services		3,750,265		—		—		3,750,265
Entertainment		708,300		—		—		708,300
Equity Real Estate Investment Trusts (REITs)		18,989,469		—		—		18,989,469
Food & Staples Retailing		1,700,682		—		—		1,700,682
Food Products		3,152,776		—		1,859		3,154,635
Gas Utilities		3,371,386		—		—		3,371,386
Health Care Equipment & Supplies		10,553,298		—		—		10,553,298
Health Care Providers & Services		5,353,018		—		—		5,353,018
Health Care Technology		2,749,328		—		—		2,749,328
Hotels, Restaurants & Leisure		7,421,368		—		—		7,421,368
Household Durables		4,364,096		—		—		4,364,096
Household Products		500,647		—		—		500,647
Independent Power and Renewable Electricity Producers		1,045,099		—		—		1,045,099
Industrial Conglomerates		176,350		—		—		176,350
Insurance		6,296,177		—		—		6,296,177
Interactive Media & Services		1,381,792		—		—		1,381,792
Internet & Direct Marketing Retail		1,644,685		—		—		1,644,685
IT Services		6,035,349		—		—		6,035,349
Leisure Products		1,001,795		—		—		1,001,795
Life Sciences Tools & Services		1,914,775		—		—		1,914,775
Machinery		10,905,248		—		—		10,905,248
Marine		354,727		—		—		354,727
Media		2,701,955		—		—		2,701,955
Metals & Mining		3,433,080		—		—		3,433,080
Mortgage Real Estate Investment Trusts (REITs)		3,466,864		—		—		3,466,864
Multiline Retail		291,006		—		—		291,006
Multi-Utilities		1,640,444		—		—		1,640,444
Oil, Gas & Consumable Fuels		7,292,338		—		—		7,292,338
Paper & Forest Products		1,107,658		—		—		1,107,658
Personal Products		813,543		—		—		813,543
Pharmaceuticals		4,733,449		580		—		4,734,029
Professional Services		4,481,949		—		—		4,481,949
Real Estate Management & Development		1,928,702		—		—		1,928,702
Road & Rail		1,267,349		—		—		1,267,349
Semiconductors & Semiconductor Equipment		5,958,959		—		—		5,958,959
Software		12,748,931		—		—		12,748,931
Specialty Retail		6,390,852		—		—		6,390,852
Technology Hardware, Storage & Peripherals		940,540		—		—		940,540
Textiles, Apparel & Luxury Goods		2,416,882		—		—		2,416,882
Thrifts & Mortgage Finance		5,707,595		—		—		5,707,595
Tobacco		444,142		—		—		444,142
Trading Companies & Distributors		3,660,680		—		—		3,660,680
Water Utilities		1,383,680		—		—		1,383,680
Wireless Telecommunication Services		423,717		—		—		423,717
Investment Companies		—		—		—		—
Rights		14,198		221		—		14,419

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Small Cap Index V.I. Fund

	Level 1		Level 2		Level 3		Total
Short-Term Securities	$	3,399,894	$	—	$	—	$	3,399,894
Subtotal	$	274,439,605	$	1,016	$	1,859	$	274,442,480
Investments valued at NAV(a)								41,085,914
Total Investments							$	315,528,394
Derivative Financial Instruments(b)
Assets:
Equity contracts	$	76,742	$	—	$	—	$	76,742

^(a)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(b)  Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 25

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock Small Cap Index V.I. Fund
ASSETS
Investments at value — unaffiliated (including securities loaned at value of $39,418,589) (cost — $226,757,275)	$	271,042,586
Investments at value — affiliated (cost — $44,483,528)		44,485,808
Cash		2,527
Cash pledged for futures contracts		176,000
Receivables:
Investments sold		24,022,918
Securities lending income — affiliated		19,129
Capital shares sold		6,363
Dividends — affiliated		7,055
Dividends — unaffiliated		290,185
Variation margin on futures contracts		41,427
Deferred offering costs		10,897
Prepaid expenses		2,327
Total assets		340,107,222
LIABILITIES
Cash collateral on securities loaned at value		41,081,319
Payables:
Investments purchased		24,154,015
Capital shares redeemed		70,324
Investment advisory fees		21,266
Offering costs		33,135
Directors’ and Officer’s fees		5,414
Other accrued expenses		122,356
Total liabilities		65,487,829
NET ASSETS	$	274,619,393
NET ASSETS CONSIST OF
Paid-in capital	$	217,679,985
Accumulated earnings		56,939,408
NET ASSETS	$	274,619,393
NET ASSET VALUE
Class I — Based on net assets of $274,619,393 and 24,461,601 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.23

See notes to financial statements.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock Small Cap Index V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	60,993
Dividends — unaffiliated		1,795,341
Securities lending income — affiliated — net		77,592
Foreign taxes withheld		(449)
Total investment income		1,933,477
EXPENSES
Investment advisory		107,645
Transfer agent		70,285
Professional		33,309
Accounting services		29,015
Printing		25,814
Offering		16,476
Directors and Officer		9,536
Custodian		6,161
Registration		232
Miscellaneous		8,164
Total expenses		306,637
Less:
Fees waived and/or reimbursed by the Manager		(2,497)
Transfer agent fees waived and/or reimbursed		(8,663)
Total expenses after fees waived and/or reimbursed		295,477
Net investment income		1,638,000
REALIZED AND UNREALIZED GAIN
Net realized gain from:
Investments — affiliated		2,315
Investments — unaffiliated		9,849,254
Futures contracts		625,647
		10,477,216
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		2,280
Investments — unaffiliated		28,322,579
Futures contracts		275,887
		28,600,746
Net realized and unrealized gain		39,077,962
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	40,715,962

See notes to financial statements.

FINANCIAL STATEMENTS 27

Statements of Changes in Net Assets

	BlackRock Small Cap Index V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	1,638,000	$	3,888,019
Net realized gain		10,477,216		56,766,244
Net change in unrealized appreciation (depreciation)		28,600,746		(84,844,243)
Net increase (decrease) in net assets resulting from operations		40,715,962		(24,189,980)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Decrease in net assets resulting from distributions to shareholders		—		(62,190,705)
CAPITAL SHARE TRANSACTIONS
Shares sold		1,166,970		3,317,952
Shares issued in reinvestment of distributions		—		62,190,568
Shares redeemed		(9,563,244)		(77,181,228)
Net decrease in net assets derived from capital share transactions		(8,396,274)		(11,672,708)
NET ASSETS
Total increase (decrease) in net assets		32,319,688		(98,053,393)
Beginning of period		242,299,705		340,353,098
End of period	$	274,619,393	$	242,299,705

^(a)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Small Cap Index V.I. Fund(a)
	Class I
	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
			2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.60	$	14.57		$	13.63		$	11.78		$	13.46		$	13.99
Net investment income(b)		0.07		0.18			0.16			0.15			0.11			0.11
Net realized and unrealized gain (loss)		1.56		(1.86	)		1.83			2.33			(0.74	)		0.51
Net increase (decrease) from investment operations		1.63		(1.68	)		1.99			2.48			(0.63	)		0.62
Distributions(c)
From net investment income		—		(0.19	)		(0.16	)		(0.16	)		(0.12	)		(0.11	)
From net realized gain		—		(3.10	)		(0.89	)		(0.47	)		(0.93	)		(1.04	)
Total distributions		—		(3.29	)		(1.05	)		(0.63	)		(1.05	)		(1.15	)
Net asset value, end of period	$	11.23	$	9.60		$	14.57		$	13.63		$	11.78		$	13.46
Total Return(d)
Based on net asset value		16.98%(e)		(11.25)%			14.55%			20.96%			(4.86)%			4.37%
Ratios to Average Net Assets
Total expenses		0.23%(f)		0.30%(g)			0.23%			0.31%			0.50%			0.49%
Total expenses after fees waived and/or reimbursed		0.22%(f)		0.23%(g)			0.22%			0.30%			0.49%			0.48%
Net investment income		1.22%(f)		1.17%			1.11%			1.23%			0.84%			0.76%
Supplemental Data
Net assets, end of period (000)	$	274,619	$	242,300		$	340,353		$	315,275		$	276,199		$	306,195
Portfolio turnover rate		11%		17%			12%			15%			14%			15%

^(a)  On October 29, 2018, the Fund acquired all of the assets and assumed certain stated liabilities of the Small Cap Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(b)  Based on average shares outstanding.

^(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f) Annualized.

^(g) Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.27% and 0.23%, respectively.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 29

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Variable Series Funds, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 15 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Small Cap Index V.I. Fund (the “Fund”). The Fund is classified as diversified.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of equity, multi-asset, index and money market funds referred to as the BlackRock Multi-Asset Complex.

Prior Year Reorganization: On October 29, 2018, the Small Cap Equity Index Fund (the “Predecessor Fund”), a series of State Farm Variable Product Trust, reorganized into the Fund (the “Reorganization”) pursuant to an Agreement and Plan of Reorganization. The Reorganization closed immediately before the opening of business on October 29, 2018 and was approved by shareholders of the Predecessor Fund.

The Predecessor Fund is the performance and accounting survivor of the Reorganization; accordingly, the Fund assumed the performance and financial history of the Predecessor Fund upon completion of the Reorganization. The Reorganization wastax-free, meaning that the Predecessor Fund’s shareholders became shareholders of the Fund without realizing any gain or loss for federal income tax purposes.

As a result, the Fund acquired all of the assets and assumed certain stated liabilities of the Predecessor Fund in exchange for an equal aggregate value of newly-issued shares of the Fund. Each shareholder of the Predecessor Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Predecessor Fund shares, as determined at the close of business on October 26, 2018.

The Reorganization was accomplished by atax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

Predecessor Fund	Shares Prior to Reorganization		Conversion Ratio		Shares Post-         Reorganization
Small Cap Equity Index Fund, a series of State Farm Variable Product Trust		19,044,278		1		19,044,278

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the Predecessor Fund were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Prior to the Reorganization, the Fund had not yet commenced operations and had no assets or liabilities. The Predecessor Fund’s net assets, fair value and cost of investments prior to the Reorganization were as follows:

Predecessor Fund	Net Assets		Fair Value of Investments		Cost of                 Investments
Small Cap Equity Index Fund, a series of State Farm Variable Product Trust	$	268,225,204	$	262,372,806	$	221,728,024

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions paid by the Fund are recorded on theex-dividend date. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Offering Costs: Offering costs are amortized over a12-month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund are charged to the Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded andover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

NOTESTO FINANCIAL STATEMENTS 31

Notes to Financial Statements  (unaudited) (continued)

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)	recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;
	(ii)	recapitalizations and other transactions across the capital structure; and
	(iii)	market multiples of comparable issuers.
Income approach	(i)	future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;
	(ii)	quoted prices for similar investments or assets in active markets; and
	(iii)	other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)	audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;
	(ii)	changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;
	(iii)	relevant news and other public sources; and
	(iv)	known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

• Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of June 30, 2019, certain investments of the Fund were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively.

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for thenon-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell orre-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell orre-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received(a)			Net Amount
Barclays Capital Inc.	$	434,352	$	(434,352	)	$	—
BNP Paribas Securities Corp.		134,561		(134,561	)		—
Citigroup Global Markets Inc.		18,984,132		(18,984,132	)		—
Credit Suisse Securities (USA) LLC		7,377,770		(7,377,770	)		—
Jefferies & Co. LLC		50,208		(50,208	)		—
JP Morgan Securities LLC		8,932,234		(8,932,234	)		—
Merrill Lynch, Pierce, Fenner & Smith		76,635		(76,635	)		—
State Street Bank & Trust Co.		3,422,340		(3,422,340	)		—
Toronto Dominion Bank		6,357		(6,357	)		—
	$	39,418,589	$	(39,418,589	)	$	—

^(a) Cash collateral with a value of $41,081,319 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty, if any, is not shown for financial reporting purposes in the table above.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

NOTESTO FINANCIAL STATEMENTS 33

Notes to Financial Statements  (unaudited) (continued)

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser, an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to 0.08% of the average daily value of the Fund’s net assets.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

Expense Limitations, Waivers, Reimbursements and Recoupments: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $1,903.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of directors who are not “interested persons” of the Company, as defined in the 1940 Act (“Independent Directors”) or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived by the Manager pursuant to this arrangement.

The Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitation as a percentage of average daily net assets is 0.22%.

The Manager has agreed not to reduce or discontinue this contractual expense limitation through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, the Manager waived and/or reimbursed $594 and $8,663 which is included in fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed, respectively, in the Statement of Operations.

In addition, the Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit fees paid by the Fund for operational and recordkeeping services to 0.05% of average daily net assets. These amounts are shown as transfer agent fees waived and/or reimbursed in the Statement of Operations. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed pursuant to this arrangement.

With respect to the contractual expense limitation, if during the Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver or contractual operational and recordkeeping services waiver described above or any voluntary waivers that may be in effect from time to time.

On June 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring December 31,
		2020		2021
Fund Level		$	23,988	$	594
Class I			23,136		8,663

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Fund. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2019, the Fund paid BIM $28,012 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the six months ended June 30, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule17a-7 under the 1940 Act were as follows:

Purchases	$	2,301,154
Sales		14,396,019
Net Realized Gain		8,051,368

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, excluding short-term securities, were $28,728,160 and $31,609,903 respectively.

8. INCOME TAX INFORMATION

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of June 30, 2019, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

Tax cost	$	271,364,408
Gross unrealized appreciation	$	83,761,032
Gross unrealized depreciation		(39,520,304)
Net unrealized appreciation	$	44,240,728

NOTESTO FINANCIAL STATEMENTS 35

Notes to Financial Statements  (unaudited) (continued)

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy

or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18(a)
	Shares			Amount			Shares			Amount
Class I
Shares sold		106,640		$	1,166,970			226,594		$	3,317,952
Shares issued in reinvestment of distributions		—			—			6,509,197			62,190,568
Shares redeemed		(875,836	)		(9,563,244	)		(4,870,048	)		(77,181,228)
Net increase (decrease)		(769,196	)	$	(8,396,274	)		1,865,743		$	(11,672,708)

^(a) Includes the activity of the Predecessor Fund prior to the Reorganization on October 29, 2018. Excludes the exchange of shares of the Predecessor Fund for shares of the Fund during the Reorganization. The Predecessor Fund is the performance and accounting survivor of the Reorganization.

As of June 30, 2019, BlackRock Financial Management, Inc., an affiliate of the Fund, owned 710 Class I Shares of BlackRock Small Cap Index V.I. Fund.

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

NOTESTO FINANCIAL STATEMENTS 37

Glossary of Terms Used in this Report  

Portfolio Abbreviation
REIT	Real Estate Investment Trust

38 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements

The Board of Directors (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds, Inc. (the “Corporation”) met in person on April 17, 2019 (the “April Meeting”) and May14-15, 2019 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Corporation, on behalf of BlackRock Advantage Large Cap Core V.I. Fund (the “Large Cap Core V.I. Fund”), BlackRock Advantage Large Cap Value V.I. Fund (the “Large Cap Value V.I. Fund”), BlackRock Advantage U.S. Total Market V.I. Fund (the “U.S. Total Market V.I. Fund”), BlackRock Basic Value V.I. Fund (the “Basic Value V.I. Fund”), BlackRock Capital Appreciation V.I. Fund (the “Capital Appreciation V.I. Fund”), BlackRock Equity Dividend V.I. Fund (the “Equity Dividend V.I. Fund”), BlackRock Global Allocation V.I. Fund (the “Global Allocation V.I. Fund”), BlackRock Government Money Market V.I. Fund (the “Government Money Market V.I. Fund”), BlackRock International V.I. Fund (the “International V.I. Fund”), BlackRock International Index V.I. Fund (the “International Index V.I. Fund”), BlackRock iShares^® Dynamic Allocation V.I. Fund (the “Dynamic Allocation V.I. Fund”), BlackRock Large Cap Focus Growth V.I. Fund (the “Large Cap Focus Growth V.I. Fund”), BlackRock Managed Volatility V.I. Fund (the “Managed Volatility V.I. Fund”), BlackRock Small Cap Index V.I. Fund (the “Small Cap Index V.I. Fund”) and BlackRock S&P 500 Index V.I. Fund (the “S&P 500 Index V.I. Fund”) (each, a “Fund,” and collectively the “Funds”), each a series of the Corporation, and BlackRock Advisors, LLC (the “Manager”), the Corporation’s investment advisor. The Board also considered the approval of thesub-advisory agreements between the Manager and (a) BlackRock International Limited (“BIL”) with respect to International V.I. Fund and Managed Volatility V.I. Fund (the “BILSub-Advisory Agreements”); (b) BlackRock Asset Management North Asia Limited (“BNA”) with respect to Managed Volatility V.I. Fund (the “BNASub-Advisory Agreement”); and (c) BlackRock (Singapore) Limited (“BSL” and together with BIL and BNA, the“Sub-Advisors”) with respect to Managed Volatility V.I. Fund (the “BSLSub-Advisory Agreement” and together with the BILSub-Advisory Agreements and the BNASub-Advisory Agreement, the“Sub-Advisory Agreements”). The Manager and theSub-Advisors are referred to herein as “BlackRock.” The Advisory Agreements and theSub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the May Meeting, the Board consisted of fifteen individuals, thirteen of whom were not “interested persons” of the Corporation as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Corporation and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Ad Hoc Topics Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additionalin-person and telephonic meetings throughout the year, as needed. While the Board also has a fifthone-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to the Funds. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Board considered were: (a) with respect to each Fund, investment performance forone-year, three-year, five-year,ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmark, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analyses of the reasons for any over-performance or under-performance relative to the Fund’s peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to each Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Corporation’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope ofnon-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Corporation’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across theopen-end fund, exchange-traded fund (“ETF”),closed-end fund,sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion offall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

accounts,sub-advised mutual funds, ETFs,closed-end funds,open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) review ofnon-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared with Performance Peers and other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to Expense Peers; (e) the sharing of potential economies of scale;(f) fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of each Fund’s portfolio holdings. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Board compared each Fund’s performance to the performance of a comparable group of mutual funds, relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing the Fund’s performance and the Fund’s investment objective, strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and othernon-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of other service providers, including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certainopen-end funds; and (viii) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and, with respect to Large Cap Core V.I. Fund, Large Cap Value V.I. Fund, U.S. Total Market V.I. Fund, Basic Value V.I. Fund, Capital Appreciation V.I. Fund, Global Allocation V.I. Fund, International V.I. Fund, Dynamic Allocation V.I. Fund and Large Cap Focus Growth V.I. Fund, its custom peer group of funds as defined by BlackRock (“Customized Peer Group”); with respect to International Index V.I. Fund, Small Cap Index V.I. Fund and S&P 500 Index V.I. Fund, the performance of the Fund as compared with its benchmark; and, with respect to Managed Volatility V.I. Fund, certain performance metrics. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and the Performance Peer funds (for example, the investment objective(s) and investment strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to affect long-term performance disproportionately.

The Board noted that for each of the one, three and five-year periods reported, the Government Money Market V.I. Fund ranked in the first quartile against its Performance Peers.

The Board noted that for the one, three and five-year periods reported, the Equity Dividend V.I. Fund ranked in the second, first and first quartiles, respectively, against its Performance Peers.

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

The Board noted that for each of theone-year, three-year and since-inception periods reported, the Dynamic Allocation V.I. Fund ranked in the second quartile, against its Performance Peers.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Focus Growth V.I. Fund ranked in the first quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Capital Appreciation V.I. Fund ranked in the first, first and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Managed Volatility V.I. Fund ranked in the first, third and third quartiles, respectively, against its Customized Peer Group.

In light of the Managed Volatility V.I. Fund’s outcome oriented objective, BlackRock believes that certain other performance metrics may be more appropriate than the Performance Peers, and the Board was provided with a comparison of Fund performance relative to these metrics. Under these metrics, for the one, three and five-year periods, the Fund underperformed its total return target. The overall risk of the Fund, as measured by the standard deviation of returns, was below its upper threshold level for the one, three and five-year periods and the maximum drawdowns were below the upper threshold level for all calendar years. The Fund’s Sharpe Ratio was above its competitor median for the one, three and five-year periods. The Fund’s beta was within its target range, for each of the periods.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Core V.I. Fund ranked in the second quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Value V.I. Fund ranked in the second quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Global Allocation V.I. Fund ranked in the second, third and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods.

The Board noted that for the one, three and five-year periods reported, the Basic Value V.I. Fund ranked in the second, third and fourth quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods.

The Board noted that for the one, three and five-year periods reported, the U.S. Total Market V.I. Fund ranked in the third, first and fourth quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods. The Board noted that, among other things, effective June 12, 2017, the Fund had undergone changes in its investment strategy and portfolio management team, and in connection with such changes, the Fund changed its name from BlackRock Value Opportunities V.I. Fund to BlackRock Advantage U.S. Total Market V.I. Fund.

The Board and BlackRock discussed BlackRock’s strategy for improving the U.S. Total Market V.I. Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

The Board noted that for each of the one, three and five-year periods reported, the International V.I. Fund ranked in the fourth quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods. The Board was informed that, among other things, negative stock selections within the consumer staples, communication services, and technology sectors were the primary detractors from performance over theone-year period. Longer term performance was also impacted by relative underperformance in 2016 and 2014.

The Board and BlackRock discussed BlackRock’s strategy for improving the International V.I. Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

The Board noted that for the past fiveone-year periods reported, the International Index V.I. Fund’s net performance outperformed its benchmark for two of the five periods. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the past fiveone-year periods reported, the Small Cap Index V.I. Fund’s net performance underperformed its benchmark for each of the periods. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for theone-year period reported, the S&P 500 Index V.I. Fund’s net performance was out of tolerance range of its benchmark. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s out of tolerance performance over the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The

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Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

total expense ratio represents a fund’s total net operating expenses, including any12b-1 or non12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts andsub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2018 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Board considered the estimated cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of the Funds and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs of managing each Fund, to each respective Fund. The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across theopen-end fund, ETF,closed-end fund,sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Large Cap Core V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Large Cap Value V.I. Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. Additionally, the Board noted that BlackRock had voluntarily agreed to waive a portion of the advisory fee payable by the Fund. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the U.S. Total Market V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Basic Value V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Capital Appreciation V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Equity Dividend V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Global Allocation V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Government Money Market V.I. Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the International V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the second and fourth quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. After discussions between the Board, including the Independent Board Members, and BlackRock, the Board and BlackRock agreed to a lower contractual expense cap, on aclass-by-class basis. The contractual expense cap reduction was implemented on May 24, 2019.

The Board noted that the International Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

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Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

BlackRock has reviewed with the Board that the varying fee structure for fund of funds can limit the value of management fee comparisons. The Board noted that the Dynamic Allocation V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. In addition, the Board noted that BlackRock and the Board agreed to a lower contractual expense cap on aclass-by-class basis, as applicable. This contractual expense cap reduction was implemented on October 26, 2018.

The Board noted that the Large Cap Focus Growth V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Managed Volatility V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. The Board also noted that BlackRock and the Board agreed to a lower contractual expense cap on aclass-by-class basis. The contractual expense cap reduction was implemented on April 23, 2018.

The Board noted that the Small Cap Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the S&P 500 Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. The Board also noted that BlackRock and the Board agreed to a lower contractual advisory fee rate and a lower contractual expense cap on aclass-by-class basis. These expense reductions were implemented on April 23, 2018.

With respect to the Large Cap Core V.I. Fund, the Large Cap Value V.I. Fund, the U.S. Total Market V.I. Fund, the Basic Value V.I. Fund, the Capital Appreciation V.I. Fund, the Equity Dividend V.I. Fund, the Global Allocation V.I. Fund, the Government Money Market V.I. Fund, the International V.I. Fund, the Dynamic Allocation V.I. Fund, the Large Cap Focus Growth V.I. Fund and the Managed Volatility V.I. Fund, the Board noted that each Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the pertinent Fund increases above certain contractually specified levels. The Board noted that if the size of the pertinent Fund were to decrease, the Fund could lose the benefit of one or more breakpoints.

With respect to the Large Cap Core V.I. Fund, the Large Cap Value V.I. Fund, the U.S. Total Market V.I. Fund, the Basic Value V.I. Fund, the Capital Appreciation V.I. Fund, the Equity Dividend V.I. Fund, the Global Allocation V.I. Fund, the International V.I. Fund, the International Index V.I. Fund, the Large Cap Focus Growth V.I. Fund, Managed Volatility V.I. Fund, the Small Cap Index V.I. Fund and the S&P 500 Index V.I. Fund, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for each Fund on aclass-by-class basis.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Funds increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board. The Board also considered the extent to which each Fund benefits from such economies in a variety of ways and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Funds to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate. In its consideration, the Board Members took into account the existence of any expense caps and further considered the continuation and/or implementation, as applicable, of such caps.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or“fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of theopen-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of (i) the Advisory Agreement between the Manager and the Corporation, on behalf of each Fund, (ii) the BILSub-Advisory Agreements between the Manager and BIL with respect to the International V.I. Fund and Managed Volatility V.I. Fund, (iii) the BNASub-Advisory Agreement between the Manager and BNA with respect to the Managed Volatility V.I. Fund and (iv) BSLSub-Advisory Agreement between the Manager and BSL with respect to Managed Volatility V.I. Fund, each for aone-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund, as pertinent, and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors asall-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements

The Board of Directors (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds II, Inc. (the “Corporation”) met in person on May 1, 2019 (the “May Meeting”) and June5-6, 2019 (the “June Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement” or the “Agreement”) between the Corporation, on behalf of BlackRock High Yield V.I. Fund (the “High Yield V.I. Fund”), BlackRock Total Return V.I. Fund (the “Total Return V.I. Fund”) and BlackRock U.S. Government Bond V.I. Fund (the “U.S. Government Bond V.I. Fund”) (each, a “Fund,” and collectively, the “Funds”), each a series of the Corporation, and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of the Board

On the date of the June Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Corporation as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. TheCo-Chairs of the Board are Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreement

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreement on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additionalin-person and telephonic meetings throughout the year, as needed. While the Board also has a fifthone-day meeting to consider specific information surrounding the renewal of the Agreement, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to each Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreement, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreement.” Among the matters the Board considered were: (a) investment performance forone-year, three-year, five-year,ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analyses of the reasons for any over-performance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to each Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock and each Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope ofnon-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across theopen-end fund, exchange-traded fund (“ETF”),closed-end fund,sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreement

The Approval Process: Prior to the May Meeting, the Board requested and received materials specifically relating to the Agreement. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the May Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”), the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreement and a discussion offall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts,sub-advised mutual funds, ETFs,closed-end funds,open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) review ofnon-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreement. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) economies of scale; (c) fund expenses and potential fee waivers; and (d) differences in services provided and management fees betweenopen-end funds and other product channels.

At the June Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment

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Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

performance of each Fund as compared with Performance Peers and other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s fees and expenses compared to Expense Peers; (e) the sharing of potential economies of scale;(f) fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective, strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and othernon-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of other service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certainopen-end funds; and (viii) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of each Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and a custom peer group of funds as defined by BlackRock (“Customized Peer Group”). The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and the Performance Peer funds (for example, the investment objective(s) and investment strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to affect long-term performance disproportionately.

The Board noted that for each of the one, three and five-year periods reported, the High Yield V.I. Fund ranked in the second quartile against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the High Yield V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Total Return V.I. Fund ranked in the second, third, and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Total Return V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Total Return V.I. Fund’s underperformance during the applicable period.

The Board noted that for the one, three and five-year periods reported, the U.S. Government Bond V.I. Fund ranked in the third, third and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the U.S. Government Bond V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the U.S. Government Bond V.I. Fund’s underperformance during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any12b-1 or non12b-1 service fees. The total expense ratio gives effect to any expense

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reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts andsub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2018 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Board considered the estimated cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of each Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs of managing the Funds, to each Fund. The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across theopen-end fund, ETF,closed-end fund,sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the High Yield V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the High Yield V.I. Fund’s Expense Peers. The Board also noted that the High Yield V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the aggregate assets of the High Yield V.I. Fund, combined with the assets of Total Return V.I. Fund, increase above certain contractually specified levels. The Board noted that if the size of the High Yield V.I. Fund or the Total Return V.I. Fund were to decrease, the High Yield V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the High Yield V.I. Fund’s total expenses as a percentage of the High Yield V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the High Yield V.I. Fund on aclass-by-class basis.

The Board noted that the Total Return V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Total Return V.I. Fund’s Expense Peers. The Board also noted that the Total Return V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the aggregate assets of the Total Return V.I. Fund, combined with the assets of High Yield V.I. Fund, increase above certain contractually specified levels. The Board noted that if the size of the Total Return V.I. Fund or the High Yield V.I Fund were to decrease, the Total Return V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Total Return V.I. Fund’s total expenses as a percentage of the Total Return V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the Total Return V.I. Fund on aclass-by-class basis.

The Board noted that the U.S. Government Bond V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and fourth quartiles, respectively, relative to the U.S. Government Bond V.I. Fund’s Expense Peers. The Board also noted that the U.S. Government Bond V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the U.S. Government Bond V.I. Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the U.S. Government Bond V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the U.S. Government Bond V.I. Fund’s total expenses as a percentage of the U.S. Government Bond V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the U.S. Government Bond V.I. Fund on aclass-by-class basis. In addition, the Board noted that BlackRock has voluntarily agreed to waive a portion of the advisory fee payable by the U.S. Government Bond V.I. Fund. After discussion between the Board, including the Independent Board Members, and BlackRock, the Board and BlackRock agreed to increase the voluntary advisory fee waiver from 10 basis points to 26 basis points. The waiver increase was implemented on July 3, 2019.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board. The Board also considered the extent to which each Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate. In its consideration, the Board Members took into account the existence of any expense caps and further considered the continuation and/or implementation, as applicable, of such caps.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or“fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of theopen-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that each Fund’s fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

Conclusion

The Board, including the Independent Board Members, approved the continuation of the Advisory Agreement between the Manager and the Corporation, on behalf of each Fund, for aone-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors asall-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Director and Officer Information

BlackRock Variable Series Funds, Inc.

Mark Stalnecker, Chair of the Board and Director

Bruce R. Bond, Director

Susan J. Carter, Director

Collette Chilton, Director

Neil A. Cotty, Director

Lena G. Goldberg, Director

Robert M. Hernandez, Director

Henry R. Keizer, Director

Cynthia A. Montgomery, Director

Donald C. Opatrny, Director

Joseph P. Platt, Director

Kenneth L. Urish, Director

Claire A. Walton, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

John MacKessy, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers

BlackRock International Limited ^(b)

Edinburgh, EH3 8BL

United Kingdom

BlackRock Asset Management ^(c)

North Asia Limited

Hong Kong

BlackRock (Singapore) Limited ^(c)

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodians

JPMorgan Chase Bank, N.A.

New York, NY 10179

Brown Brothers Harriman & Co. ^(a)

Boston, MA 02109

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

^(a)  For BlackRock Global Allocation V.I. Fund, BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund.

^(b)  For BlackRock International V.I. Fund and BlackRock Managed Volatility V.I. Fund.

^(c)  For BlackRock Managed Volatility V.I. Fund.

DIRECTORAND OFFICER INFORMATION

Director and Officer Information  (continued)

BlackRock Variable Series Funds II, Inc.

Richard E. Cavanagh,Co-Chair of the Board and Director

Karen P. Robards,Co-Chair of the Board and Director

Michael J. Castellano, Director

Cynthia L. Egan, Director

Frank J. Fabozzi, Director

Henry Gabbay, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Catherine A. Lynch, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

John MacKessy, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800)441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The Funds’ FormsN-PORT andN-Q are available on the SEC’s website at http:// www.sec.gov.The Funds’ FormsN-PORT andN-Q may also be obtained upon request and without charge by calling (800)441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800)441-7762; (2) athttp://www.blackrock.com/prospectus/insurance; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com/prospectus/insurance or by calling (800)441-7762 and (2) on the SEC’s website athttp://www.sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup ofopen-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income andtax-exempt investing. Visit http://www.blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800)441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

ADDITIONAL INFORMATION

Additional Information  (continued)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding theirnon-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personalnon-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose tonon-affiliated third parties anynon-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. Thesenon-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access tonon-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect thenon-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

This report is only for distribution to shareholders of the Funds of BlackRock Variable Series Funds, Inc. and BlackRock Variable Series Funds II, Inc. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value ofnon-money market fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. An investment in the BlackRock Government Money Market V.I. Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market funds. Statements and other information herein are as dated and are subject to change.

VS-6/19-SAR

Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previousForm N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers ofClosed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities byClosed-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 these procedures.

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 Rule30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities forClosed-End Management Investment Companies – Not Applicable

Item 13 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

2

(a)(4) – Not Applicable

(b) –  Certifications – Attached hereto

3

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.

BlackRock Variable Series Funds, Inc.

By:	/s/ John M. Perlowski                ��
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Variable Series Funds, Inc.

Date: August 27, 2019

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/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Variable Series Funds, Inc.

Date: August 27, 2019

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Variable Series Funds, Inc.

Date: August 27, 2019

4