Principal Healthcare Innovators: Earnings Not Wanted

This stock fund uses "counterintuitive" criteria to target small and midsize healthcare companies focused on innovation.

analyzing samples in test tubes
(Image credit: Getty Images)

The cutting-edge biotechnology used to create COVID-19 vaccines put a spotlight on innovative healthcare companies. But these kinds of early-stage firms come with a lot of risk for investors.

Outcomes tend to be "binary – either very good or very bad," says Matthew Raynor, a managing director of the U.S. strategic client group for Principal Global Investors.

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Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.