Traditional exchange funds are private investment vehicles (usually run by big banks or financial firms) where multiple investors contribute different stocks. In exchange, each investor owns a piece of the pooled, diversified portfolio and defers capital gains tax on the stock they contributed.
Craft Pod works on the same basic idea: you exchange your concentrated stock for a share of a broader portfolio and defer taxes. But the big difference lies in what the portfolio holds and the benefits you get.
In a typical exchange fund, the portfolio might include 50–100 stocks, plus maybe some cash or real estate. Investors in these funds often have to wait 7+ years before they can withdraw their share.
Craft Pod, on the other hand, adds a unique asset to the mix: private aircraft. When you invest, you’re not just swapping stocks for stocks. You become part-owner of a fleet of jets. That comes with personal access to the aircraft, something traditional exchange funds simply don’t offer.
Another big difference is time horizon and flexibility. Most exchange funds have a rigid 7-year lock-up (because of IRS rules) and are managed by large, inflexible institutions. Craft Pod aims for a 5-year term, with a planned recap or rollover at that point . Craft is also more flexible, giving investors the option to exit or continue at 5 years while still preserving tax benefits.
Craft Pod works like an exchange fund when it comes to tax deferral and diversification. But it goes further by adding aircraft ownership and usage. Think of it as “an exchange fund meets private aviation”. You get portfolio diversification, tax advantages, and real-world perks that traditional exchange funds can’t match.
Please read our full disclosures before making an investment decision.