December brings hopes of Santa Claus rallies, making it a favorable month for stocks. The S&P 500 averages a 0.6% gain in December over the past 20 years. However, not all sectors perform well. The Financial Select Sector SPDR ETF (XLF) may prove risky as December progresses due to various factors.

Despite potential risks, XLF has increased by nearly 3% month-to-date. U.S. Bancorp and Moody’s, two of XLF’s holdings, typically retreat in the second half of December. With over 40% of the fund’s roster in bank and insurance stocks, lower interest rates and reduced holiday spending could impact the ETF.

XLF’s track record and recent strength suggest a bear market is unlikely. However, changes at Berkshire Hathaway, the ETF’s largest holding, could present headwinds. As CEO Warren Buffett’s retirement looms, further executive departures may impact XLF in December. Consider these factors before investing in XLF.

Read more at Yahoo Finance: 1 Risky ETF to Avoid Buying in December