$ARK Innovation ETF(ARKK.US)$ as the name implies, is an ETF for innovative stocks.
Given the current macroeconomic threats, of course innovation is penalised. The threat from the Federal Reserve to increase interest rate will cause technology and innovative stocks to suffer big time.
What Cathy Wood did right was to buy those innovative stocks (like $Tesla(TSLA.US)$ ) many years ago when they were dirt cheap. Now we are in for a ride down and there ...

U.S. stock indexes closed higher in the holiday-shortened trading week, with the  $S&P 500 Index(.SPX.US)$  notching a new high.
The S&P 500 was up 0.6%, or 29.23 points, to 4725.79, its 68th
record close in 2021. Thursday's rise, its third consecutive dailyincrease, followed a Wednesday session during which strong 
economic data helped ease investors' concerns about the risks posed by Covid-19 and inflation. 
The tech-focused  $Nasdaq Composite Index(.IXIC.US)$  rose 0.85%, or 131.48 points, to 15653.37. The  $Dow Jones Industrial Average(.DJI.US)$ added 0.55%, or 196.67 points, to 35950.56.