According to a recent survey by AXA Equitable Life Insurance Company, preliminary findings indicate fewer than two in 10 Americans are confident of their ability to invest in the stock market, although 60 percent still believe equities are important in a portfolio.

With such a huge gap between those feeling comfortable investing in stocks themselves and those that feel stocks are an important component of their portfolio, comes the opportunity for one to turn to stock index funds and exchange traded funds.

With index funds and ETFs, you are still a player in the stock market, but the risks are less as you own a basket of stocks, not one individual company, and purchasing them through your discount broker is cost effective and quite easy.

Stock picking and market timing, though claimed to be figured out by many on Wall Street, are hardly ever done time and time again with great success. The fundamentals of investing 101 might help you make a solid educated guess on what companies to invest in but let’s face it, investing in individual stocks, for beginners and experienced investors alike can still be a risky venture.

So, for those of you currently not comfortable investing in stocks on your own, check out ETFs and index funds. While you are at it, check out some of the on-line portfolio management tools out on the market to help you manage your overall portfolio using ETFs and index funds. Click here.

Although February has the fewest trading days of any month, exchange-traded funds still racked up healthy inflows from investors. Inflows into US based ETFs and ETNs grew by $5.4 billion in February 2010.

Assets in exchange-traded funds and notes in the United States now top $765 billion, a gain of 66% over February 2009. In addition, the number of listed exchange-traded products grew from 843 to 964, well under the percentage change in assets, reflecting a trend of asset consolidation among the largest ETFs, according to a press release.

Fixed income investments remain the biggest breadwinners, taking in $2.3 billion in net inflows and continuing a trend of monthly inflows for more than a year. US stocks rebounded slightly from January’s $19.6 billion outflow to add $5.8 billion in February.

Troubles in Greece have only incited the popularity of exchange-traded commodities in the wake of what could be the largest bankruptcy since the credit crunch began.

Often suffering from limited liquidity, currency funds are now on the up and up. The CurrencyShares Euro Trust (FXE: Quote, Profile, Advanced Chart, News), which has an average volume just under 580,000 shares daily, posted volume of over three million shares on February 19, the day Greece’s debt issues came to light. Since that time, the volume has increased over 60%, reaching nearly one million shares daily.

Although overall volume for the 30 different currency ETFs on the market remains thin, a growing number of ETF investors are using exchange-traded currencies as a way to hedge their portfolios. The sector recorded $7 billion in assets under management in February, MarketWatch reports.

PIMCO, a recent entrant to the ETF business, has changed two popular short term bond funds to allow for longer date bond purchases. The move will allow PIMCO to earn better yields on its holdings.

PIMCO Government Limited Maturity Strategy Fund (GOVY) has been revised to allow short-dated purchases up to three years, which is a jump of a full year. The PIMCO Prime Limited Maturity Strategy Fund (PPRM) will now be able to purchase bonds out to 18 months, up from 397 days, according to a recent SEC filing.

The change suggests PIMCO will reach further into the yield curve to deliver higher returns to its investors. Yields on three year Treasury notes are 50% higher than their two year counterparts. Both funds are actively-managed.

As competition in the ETF space intensifies, at least one marketing ploy meant to grab investors’ attention is failing quickly. A new study reveals that commissions aren’t exactly on ETF investors’ watch lists.

A study completed by Phoenix Marketing International shows that nearly 64% of affluent investors surveyed based their decisions on the relevance of funds to their investing objectives and the ability to trade through easy-access methods like the internet, Investment News reports. Thus far, lower or no commissions for certain ETF brands have exerted little impact on investors’ mindsets and have done very little to bring new investors to the table.

Although some fresh faces to the ETF industry may enjoy smaller commissions, investment decisions among ETF traders aren’t made entirely on price. With competition driving the cost of annual fees and trading commissions into the ground, new perks are likely to arise for those who make the jump to ETFs.