During his keynote speech at the Wharton School’s annual Rodney L. White Center for Financial Research Conference, Vanguard CEO Bill McNabb discussed changes in the industry, according to a report for Knowledge@Wharton.

“The death of active (investing) may be overstated” McNabb said. But “the change in the economics of the investment management business is pretty profound.” He was referring to recently released figures that show the number of actively managed U.S. funds fell from 4,351 to 2,223 between 2007 and 2016.

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This dramatic drop only highlights the success that Vanguard enjoys with its passive management formula. In fact, with $4 trillion in assets and net inflows of more than $277 billion, it is crushing its competitors.

But he also took time to address the issue of increased regulation caused by the high-profile collapses in the financial industry.

“How you revert that to a private-sector industry that is subject to oversight from what is now a private-sector industry that is directed by Washington is a very complex problem,” he said. “I think the solution is somewhere in between.”

Read more about Bill McNabb’s speech from Knowledge@Wharton here, and check out previous VISTA Today coverage of Vanguard here.

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