There is an enormous conceptional difference between the two.
Your setList()
takes a reference to a list; and changes your mList ... to point to that reference.
Whereas your updateList()
copies all the references from the incoming list into your existing mList object.
Meaning: setList() does require less CPU operations compared to updateList() ... but the key thing is: now mList can be changed from outside of your class. Like in:
List someList = ...
yourClass.setList(someList);
someList.clear();
will clear "your" mList as well; but
List someList = ...
yourClass.updateList(someList);
someList.clear();
will not affect your "mList".
That's the main difference you should be aware of.
Performance is actually not the real issue to be concerned about here!
In general: do not worry too much about performance. Because: you will not get it right anyway. For example, there is the JIT compiler turning naive assumptions upside down.
Long story short: focus on semantics of operations; don't restrict yourself to "performance" aspects.