Capturing the companies expected to drive the rebuild of Ukraine
Our Partner
Reconstruction effort at exceptional scale
The World Bank, European Commission, United Nations and Government of Ukraine estimate the cost of reconstruction and recovery at $524 billion (€506 billion) over the next decade, spanning housing, transport, energy, industry, and civil infrastructure.
Targeted exposure to reconstruction-critical sectors
The index selects companies involved in activities essential to rebuilding Ukraine, including infrastructure construction, energy systems, industrial equipment, transport networks, and defence-related capabilities.
Dedicated Ukraine exposure and disciplined screening
The methodology allows for the potential inclusion of Ukrainian companies and Ukraine-focused funds using lower size and liquidity thresholds, while explicitly excluding companies with Russian operational exposure.
The World Bank, European Commission, United Nations and Government of Ukraine estimate the cost of reconstruction and recovery at $524 billion (€506 billion) over the next decade, spanning housing, transport, energy, industry, and civil infrastructure.¹
First inclusion of Ukrainian-listed companies in UKRN (Swarmer and Kyivstar), reflecting improving market accessibility of Ukrainian companies. UKRN index design (lower liquidity and size thresholds) enables earlier-stage Ukrainian companies to be captured as capital markets develop.
Defiance Ukraine Reconstruction UCITS ETF (UKRN) provides exposure to companies positioned to support Ukraine’s rebuild, energy independence, and long-term resilience.
The ETF targets a diversified mix of European infrastructure and defence companies, select global industrial firms, Ukrainian-listed companies, and a capped allocation to Ukraine-focused investment funds.
The Ukraine Reconstruction ETF tracks the VettaFi Ukraine Reconstruction Index, using a passive, rules-based approach designed to capture the theme.
Key Risks
When you invest in ETFs your capital is fully at risk and may not get back the amount originally invested. Exchange rates can have a positive or negative effect on returns. The ETF shall invest predominantly in companies in the defence, energy, and infrastructure sectors. These industries can be significantly affected by government regulation and spending policies because companies involved in these industries rely, to a significant extent, on government demand for their products and services. The ongoing conflict between Ukraine and Russia is a source of instability for Ukraine and the Ukrainian economy. This instability may detrimentally affect the ETF’s investments which have exposure to Ukraine or the Ukrainian economy.
Rebalance Calendar
NAV History
Source: HANetf, data as of 31.08.2026. Please note that all performance figures are showing net data. Performance before inception is based on back-tested data. Back-testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (”Prospectus”) before investing and should refer to the section of the Prospectus entitled ”Risk Factors” for further details of risks associated with an investment in this product. If fund is less than 12 months old, YTD field will be calculated since inception. When you invest in ETFs your capital is at risk.
No. of holdings: 51
To qualify for selection into the index, a constituent must be in one of the identified segments considered necessary for the rebuild, energy independence, and defence of Ukraine. Additionally, the index may invest up to 5% of its assets in funds that have a stated investment focus that includes Ukrainian firms.
The index explicitly excludes companies with identified Russian operational exposure. The methodology also permits fast-track inclusion of qualifying Ukrainian IPOs, recognising the evolving nature of Ukraine’s capital markets during reconstruction.
The VettaFi Ukraine Reconstruction Index rebalances quarterly, maintaining discipline while allowing the portfolio to adapt as reconstruction priorities and market access evolve.
Ukraine reconstruction exposure refers to investment themes linked to companies and sectors that may be involved in rebuilding infrastructure, housing, utilities, transport networks, and industrial capacity following large-scale destruction. This can include construction firms, engineering companies, materials producers, energy infrastructure providers, and logistics businesses. The theme is typically driven by public funding commitments, multilateral financing, and private capital participation rather than a single market cycle. The allocation of reconstruction spending across sectors — and the extent to which global supply chains participate — will be key determinants of which companies and industries are best positioned to benefit from rebuilding activity over time.
Reconstruction activity is usually concentrated in infrastructure-heavy sectors such as construction and engineering, building materials (cement, steel, aggregates), energy systems, transport networks, and telecommunications. In addition, financial services and insurance may play a role in funding and risk transfer mechanisms. Defence-related infrastructure repair and demining services can also be relevant in post-conflict environments. Exposure can therefore be broad and cross-sector, reflecting the wide-ranging nature of rebuilding a modern economy. How a fund or strategy defines its exposure matters: some approaches focus on companies directly involved in rebuilding, others include enabling industries or businesses that benefit indirectly from increased capital expenditure activity in the region.
Reconstruction demand is primarily driven by the scale of physical damage, the pace of geopolitical stabilisation, and the availability of international funding. In the case of Ukraine, commitments from governments, supranational institutions, and development banks are key catalysts. The timing and sequencing of rebuilding efforts also matter, as essential infrastructure such as energy, water, and transport typically receives priority before broader commercial redevelopment. Inflation in construction materials, labour availability, and supply chain capacity can further influence the speed and cost of reconstruction activity. These factors combined mean demand is often long-duration and phased rather than immediate or uniform.
Reconstruction is typically financed through a combination of public funding, international aid, development bank lending, and private sector investment. In large-scale rebuilding scenarios, institutions such as the World Bank, European institutions, and sovereign governments may provide guarantees, grants, or concessional loans. Private capital often enters through public-private partnerships (PPPs), infrastructure funds, and corporate investment in affected regions. The financing structure is important because it determines project risk allocation, return profiles, and execution timelines. In many cases, reconstruction financing is staged over multiple years, making long-term capital commitments more relevant than short-term funding flows.
Key risks include geopolitical uncertainty, funding delays, execution challenges, and cost inflation in construction materials and labour. Reconstruction environments can also involve regulatory complexity, shifting policy priorities, and logistical constraints due to damaged infrastructure. Currency volatility may affect project economics where revenues or costs are denominated in different currencies. Governance and transparency standards can be more variable in post-conflict environments, and investors should consider how fund managers assess and mitigate exposure to procurement irregularities or institutional weakness. As a result, returns can be highly sensitive to timing, policy support, and the strength of on-the-ground operational execution.
Reconstruction is typically a multi-year or even multi-decade process because rebuilding infrastructure, housing, and industrial capacity occurs in phases. Immediate priorities usually focus on critical services such as energy, healthcare, water supply, and transport corridors, followed by broader economic redevelopment. The scale of capital required also means funding is deployed gradually as capacity and governance frameworks are established. In the case of Ukraine, rebuilding is likely to be shaped by evolving geopolitical conditions and international coordination. This phased nature makes the theme more aligned with long-duration infrastructure and capital expenditure cycles rather than short-term economic activity.
Infrastructure companies participate through contracts to design, build, and maintain physical assets such as roads, bridges, power grids, and telecommunications systems. These companies may operate directly in affected regions or supply equipment, materials, and engineering services from abroad. Participation can occur via government tenders, international development programmes, or public-private partnerships. Revenue visibility can vary depending on contract structure, with some projects offering multi-year agreements while others are more project-based. Capacity constraints, such as availability of skilled labour and materials, can influence which firms are able to scale participation in reconstruction pipelines.
International institutions often play a central role by coordinating funding, setting governance frameworks, and providing financial guarantees. Organisations such as multilateral development banks and regional bodies can help de-risk investments by offering blended finance structures — combining grants, concessional loans, and private capital to improve the risk-return profile for investors — or credit enhancements such as guarantees. They may also support procurement processes and ensure alignment with transparency and compliance standards. In large-scale reconstruction environments, these institutions help mobilise private capital by reducing perceived risk and improving funding visibility. Their involvement is often a prerequisite for attracting meaningful private capital into reconstruction projects, providing the funding visibility and risk mitigation that commercial investors typically require.
Relevant stocks may include companies connected to infrastructure, construction, energy systems, industrial automation, building materials, defence and power resilience. Examples include Siemens Energy, Caterpillar, ABB, BAE Systems, Johnson Controls, Schneider Electric, CRH, Vinci, Eaton and Bloom Energy. These businesses may be relevant because large-scale reconstruction can involve rebuilding electricity networks, transport links, buildings, industrial capacity and security infrastructure. Investors researching the theme should assess whether company revenues are directly tied to reconstruction activity or only broadly aligned with the required sectors. Political risk, funding availability, project timing, contract awards, corruption controls, security conditions and Russian operational exposure are important considerations.
Disclaimer: These FAQs have been generated with the assistance of AI and may contain errors or omissions. They are provided for general information only and do not constitute investment advice, a recommendation, or an invitation to buy or sell any investment.
Explore our expert-written monthly fund reports, periodic reviews, and key insights.
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Ukraine Reconstruction ETF Report | October 2026
October 2026
Ukraine Reconstruction ETF Report | September 2026
September 2026
Ukraine Reconstruction ETF Report | August 2026
Ukraine Reconstruction ETF Report | July 2026
July 2026
Ukraine Reconstruction ETF Report | June 2026
Ukraine Reconstruction ETF Report | May 2026
May 2026
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About Partner
Founded in 2018, Defiance ETFs is a leading U.S.-based ETF issuer specialising in thematic, income, and leveraged exchange-traded funds. With a track record of bringing innovative investment ideas to market quickly and effectively, Defiance has established itself as a first mover in several high-growth thematic categories, including AI, quantum computing, and leveraged single-stock ETFs.
The firm’s investment philosophy is grounded in identifying structural, long-term trends and translating them into accessible, liquid ETF products for investors worldwide. Led by a team of seasoned finance professionals with backgrounds at ProShares, BlackRock, and Direxion, Defiance brings deep expertise in ETF product development, capital markets, and investor education.
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