Mathematically, looking at Beta, ZUT is slightly less correlated to the market. In addition, we would consdier utility cash flow to be more secure than real estate in a recession. Further, REITs (ZRE) pay out most of their cash flow and this leaves less growth potential overall. Finally, some of ZRE's positions have commercial real estate exposure, which may not recover for some time. We would easily side with ZUT here.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.