Exchange traded funds (ETFs) tracking the Dow Jones industrial average will experience a sector shift along with lesser valuation. The coming changes to the index will make it even more attractive to bullish analysts who say the 18,500 mark could be reached in three years.

On Feb. 19, Bank of America Corp. (BAC) and Chevron (CVX) joined the Dow, while Altria Group (MO) and Honeywell International Inc. (HON) were out.

John Spence for MarketWatch says that Morningstar analysts boldly predict a 50% rise in the Dow by 2011 (that’s 6,000 points) and as of Feb. 12th, the Dow was trading at a hearty 17% discount to the firm’s fair-value estimate of 14,000. The predicted jump in the index is not taking into consideration the interest rate shifts, broader economic factors and blue-chip companies that dominate the Dow to lead the market.

You can access the Dow with the Diamonds Trust (DIA), which gives access to the 30-stock, high-quality combination. This ETF is an inexpensive, flexible way to access this type of exposure.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.